Explanation
1. BACKGROUND
The Division of Refuse Collection utilizes Automated Side Loader Refuse Trucks in city-wide residential trash pick-up. The Department of Public Service and Fleet Management recognize the need to replace older trucks in its fleet beyond the useful service life of the vehicle. The City will establish a one-time contract for the purchase of 18 Automated Side Loader Refuse Trucks with the Compressed Natural Gas (CNG) Option. The terms of the proposed contracts are from the date of execution by the City up to and including the manufacturer's build out date. The Purchase Office opened formal bids on March 8, 2012.
The Purchasing Office advertised and solicited competitive bids in accordance with Section 329.06 (Solicitation SA004283).
Bid specifications included options for diesel engines, compressed natural gas (CNG) engines, and Webasto Heaters. One hundred and four (104) vendors were notified of this solicitation (MIA-1, MBR-2 and MBR-1); three (3) majority bids were received.
The Department of Public Service recommends award of the contract to the lowest, responsive, responsible and best bidder:
Vendor / Unit Cost / Cost of 4 Inspections / Total Cost for 18 Trucks with CNG Option plus inspection
Bell Equipment Company / $293,724.00 / $2,000.00 / $5,289,032.00
R&R / $295,000.00 / $4,000.00 / $5,314,000.00
Columbus Peterbilt / $295,425.00 / $2,000.00 / $5,319,650.00
As part of the contract cost the City will send representatives to the manufacturing facility for 4 inspections of the facility. The amount of this expense is $2,000.00
Award is to be made to Bell Equipment Company as the lowest, responsive, and best bid.
This company is not debarred according to the Federal Excluded Parties Listing or the State Auditor's Findings for Recovery Database.
2. CONTRACT COMPLIANCE
The contract compliance number for Bell Equipment Company is 381941706 and expires 10/28/12.
3. EMERGENCY DESIGNATION
Emergency Action is requested so that a purchase order can be issued as soon as possible, thereby ensuring that the Division of Refuse has the equipment to pick up the daily waste stream of the City of Columbus residents.
4. FISCAL IMPACT
This expense is budgeted within the 2012 Capital Improvement Budget. This expense can be accommodated by utilizing available funds in the amount of $4,852,774.06 within the Refuse G.O. Bonds fund and the Build America Bonds Fund Partial Funding for this expenditure is available within the Refuse G.O. Bonds Fund and Build America Bonds Fund and by appropriating the remaining funds needed, $436,257.94 within the Special Income Tax Fund and transferring those funds to the Refuse G.O. Bonds Fund. Upon sale of bonds, this will be reimbursed. A C.I.B. amendment is necessary to establish funding authority in the proper projects for this expenditure.
Title
To authorize the Finance & Management Director to enter into one (1) contract for the purchase of 18 Automated Side Loader Refuse Trucks with the Compressed Natural Gas (CNG) Option from Bell Equipment Company and to establish funding for Division of Refuse Collection personnel to inspect the vehicles during the manufacturing; to amend the 2012 C.I.B; to authorize and direct the City Auditor to transfer $436,257.94 from the Special Income Tax Fund to the Refuse G.O. Bonds Fund; to authorize the City Auditor to appropriate $436,257.94 within the Refuse G.O. Bonds Fund; to authorize the transfer of funds and expenditure of $5,289,032.00 within the Refuse G.O. Bonds Fund and the Build America Bonds Fund; and to declare an emergency. ($5,289,032.00)
Body
WHEREAS, there is a need to replace Automated Side Loading Refuse Collection Trucks for the Department of Public Service, Division of Refuse Collection; and
WHEREAS, the Purchasing Office advertised and solicited formal bids and on March 13, 2012, the Department of Public Service selected the lowest, responsive, responsible and best bids; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $436,257.94; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the project described in this ordinance (the "Project");and
WHEREAS, an emergency exists in the usual daily operation of the Refuse Collection Division in that it is immediately necessary to enter into contract for an option to purchase Automated Side Loader Refuse Trucks with Diesel Engine and with Compressed Natural Gas (CNG) Option, thereby preserving the public health, peace, property, safety, and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director be and is hereby authorized to enter into a one-time agreement with Bell Equipment Company, 78 Northpointe Drive, Lake Orion, MI 48359, for the purchase of 18 Automated Side Loader Trucks with the Compressed Natural Gas (CNG) Option and funding for City personnel to inspect the manufacturing facility, at a cost of $5,289,032.00 during the Manufacturing of these vehicles.
SECTION 2. That the 2012 C.I.B be amended as follows due to encumbrance cancellations:
Fund / Project / Current C.I.B. / Amendment Amount / C.I.B. as amended
746 / 520001-100002 / Mechanized Collection System - 300 Gallon Containers (Carryover) / $0.00 / $1,849.00 / $1,849.00
703 / 520001-100004 / Mechanized Collection System - Front Box Loaders (Carryover) / $812,661.00 / $13,760.00 / $826,421.00
SECTION 3. That the 2012 C.I.B be amended as follows to establish authority in the proper project for this expenditure and to align authority for future expenditures:
Fund / Project / Current C.I.B. / Amendment Amount / C.I.B. as amended
703 / 520001-100002 / Mechanized Collection System - 300 Gallon Containers (Carryover) / $1,202,576.00 / ($683,996.00) / $518,580.00
703 / 520001-100004 / Mechanized Collection System - Front Box Loaders (Carryover) / $826,421.00 / ($826,421.00) / $0.00
703 / 520001-100006 / Mechanized Collection System - Semi-Automatic (Carryover) / $255,549.00 / ($255,549.00) / $0.00
703 / 520001-100009 / Mechanized Collection System - Knuckle Boom (Carryover) / $257,753.00 / ($257,753.00) / $0.00
703 / 520004-100005 / Alum Creek Remediation - Facility Improvements (Carryover) / $851,823.00 / ($382,823.00) / $469,000.00
746 / 520001-100002 / Mechanized Collection System - 300 Gallon Containers (Carryover) / $1,849.00 /($1,849.00) / $0.00
703 / 520001-100003 / Mechanized Collection System - Automated Side Loaders (Carryover) / $2,444,385.00 / $2,406,542.00 / $4,850,927.00
746 / 520001-100003 / Mechanized Collection System - Automated Side Loaders (Carryover) / $0.00 / $1,849.00 / $1,849.00
703 / 520001-100003 / Mechanized Collection System - Automated Side Loaders (Voted 2008) / $818,766.00 / ($818,766.00) / $0.00
703 / 520001-100003 / Mechanized Collection System - Automated Side Loaders (Councilmanic SIT) / $1,880,000.00 / ($1,443,741.00) / $436,259.00
703 / 520001-100002 / Mechanized Collection System - 300 Gallon Containers (Voted 2008) / $739,516.00 / $683,996.00 / $1,423,512.00
703 / 520001-100004 / Mechanized Collection System - Front Box Loaders (Voted 2008) / $812,660.00 / $134,770.00 / $947,430.00
703 / 520001-100004 / Mechanized Collection System - Front Box Loaders (Councilmanic SIT) / $0.00 / $547,618.00 / $547,616.00
703 / 520001-100006 / Mechanized Collection System - Semi-Automatic (Councilmanic SIT) / $0.00 / $255,549.00 / $255,549.00
703 / 520001-100009 / Mechanized Collection System - Knuckle Boom (Councilmanic SIT) / $0.00 / $257,753.00 / $257,753.00
703 / 520004-100005 / Alum Creek Remediation - Facility Improvements (Councilmanic SIT) / $0.00 / $382,823.00 / $382,823.00
SECTION 4. The sum of $436,257.94 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2012 to the City Auditor, Department 22-01, Object Level One 10, OCA code 902023, Object Level Three 5502.
SECTION 5. That the City Auditor is hereby authorized to transfer and appropriate said funds in SECTION 4 to the Refuse G.O. Bonds Fund, Fund 703 as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA code / #/Current/Change/Amended
703 / 520001-100003 / Mechanized Collection System - Automated Side Loaders / 06-6600 / 730103 / $436,257.94
SECTION 6. That the monies appropriated in the foregoing Section 5 shall be paid upon order of the Director of Public Service and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 7. That upon obtaining other funds for this project for the Department of Public Service, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 5.
SECTION 8. That the City Auditor is authorized to establish proper accounting project numbers, and to make any accounting changes to revise the funding source for any contract(s) or contract modification(s) associated with the expenditure of the funds transferred under Section 5 above.
SECTION 9. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $436,257.94 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 10. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated
SECTION 11. That the transfer of cash and appropriation within the Refuse G.O. Bonds Fund, Fund 703, and the Build America Bonds Fund, 746, be authorized as follows:
Transfer from:
Fund / Project / O.L. 01-03 Codes / OCA code / Amount
703 / 520001-100002 / Mechanized Collection System - 300 Gallon Containers / 06-6600 / 730102 / $683,996.00
703 / 520001-100004 / Mechanized Collection System - Front Box Loaders / 06-6600 / 730104 / $826,421.00
703 / 520001-100006 / Mechanized Collection System - Semi-Automatic / 06-6600 / 730106 / $255,549.00
703 / 520001-100009 / Mechanized Collection System - Knuckle Boom/ 06-6600 / 730109 / $257,753.00
703 / 520004-100005 / Alum Creek Remediation - Facility Improvements / 06-6600 / 730405 / $382,822.04
746 / 520001-100002 / Mechanized Collection System - 300 Gallon Containers / 06-6600 / 746102 / $1,848.02
Total transfer from: $2,408,389.06
Transfer to:
Fund / Project / O.L. 01-03 Codes / OCA code / Amount
703 / 520001-100003 / Mechanized Collection System - Automated Side Loaders/ 06-6600 / 730103 / $2,406,541.04
746 / 520001-100003 / Mechanized Collection System - Automated Side Loaders/ 06-6600 / 746003 / $1,848.02
Total transfer to: $2,408,389.06
SECTION 12. That the expenditure of $5,289,032.00 or so much thereof as may be necessary is hereby authorized to be expended from the Refuse G.O. Bonds Fund, number 703, and the Build America Bonds Fund, number 746, as follows for the Division of Refuse Collection, Dep-Div 59-02:
Fund / Project / O.L. 01-03 Codes / OCA code / Amount
703 / 520001-100003 / Mechanized Collection System - Automated Side Loaders / 06-6651 / 730103 / $5,287,183.98
746 / 520001-100003 / Mechanized Collection System - Automated Side Loaders / 06-6651 / 746003 / $1,848.02
SECTION 13. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 14. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or 10 days after its passage if the Mayor neither approves nor vetoes the same