Explanation
1. BACKGROUND
This legislation authorizes the Director of Public Service to establish an additional encumbrance within the General Fund to pay 2020 waste disposal tipping fees for the Division of Refuse Collection and to expend funds to pay the tipping fees. This expense is necessary to safely and contractually dispose of the waste collected by the division in the course of pursuing its mission by providing residential refuse collection services to over 341,000 households weekly and picking up bulk items and illegally dumped items as needed. Due to increased waste collection associated with the COVID-19 pandemic, the City will need additional funds to pay the remaining service invoices for 2020.
The Department of Public Service has determined that $1,100,000.00 should be adequate for this purpose. Actual tonnage is ultimately dependent on variables such as the weather, the actual number of households collected that cannot be specifically calculated at this time, and the unknown amount of bulk and illegally dumped items. If necessary, additional legislation will be submitted to increase funds at a later date or any unused funds will be returned to the General Fund.
SWACO tipping fee rates are determined by SWACO's established rate setting process. Due to an existing contractual relationship where the City of Columbus participates in the rate setting process the City is required to use SWACO waste disposal services.
2. FISCAL IMPACT
This 2020 expense for tipping fees was budgeted within the Special Income Tax Fund and was part of Ordinance 2927-2019 approved by Council on 2/10/2020. However, due to the increased household waste associated with the COVID-19 pandemic, additional funds are needed for this expenditure, and appropriation will need to be transferred within the General Fund from the Department of Public Safety, Fire Division to the Department of Public Service, Division of Refuse Collection. The Department of Public Service will work with the Department of Finance and Management to determine possible future allocation of CARES act funds to support this expenditure.
3. EMERGENCY DESIGNATION
This ordinance authorizing the transfer of appropriation in the General Fund for waste disposal tipping purposes has to be approved by council before this encumbrance can be established. Per the contract with SWACO, the city is subject to late fees for all invoices not paid within the due date. Emergency action is requested to avoid delays of payment to SWACO that could result in the city incurring interest penalties as specified within the contract.
Title
To authorize the City Auditor to transfer appropriation within the General Fund; to authorize the expenditure of $1,100,000.00 or so much thereof as may be necessary from the General Fund; to authorize the Director of Public Service to establish an encumbrance of $1,100,000.00 to pay refuse tipping fees to the Solid Waste Authority of Central Ohio (SWACO) for the Division of Refuse Collection pursuant to an existing lease agreement; and to declare an emergency. ($1,100,000.00)
Body
WHEREAS, the Division of Refuse Collection must encumber funds to continue refuse tipping at the Solid Waste Authority of Central Ohio (SWACO) facilities, pursuant to the lease agreement between the City and SWACO for those facilities; and
WHEREAS, the Department of Public Service has determined that $1,100,000.00 should be adequate for this purpose; and
WHEREAS, the appropriation needed for this expenditure will need to be transferred within the General Fund from the Department of Public Safety, Fire Division to the Department of Public Service, Division of Refuse Collection ($1,100,100.00); and
WHEREAS, it is necessary to authorize the expenditure of $1,100,00.00 from Department of Public Service, Division of Refuse Collection General fund; and
WHEREAS, actual tonnage is ultimately dependent on variables such as the weather, the actual number of households collected that cannot be specifically calculated at this time, and the unknown amount of bulk and illegally dumped items; and
WHEREAS, if necessary, additional legislation will be submitted to increase funds at a later date; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Refuse Collection, Department of Public Service, in that it is immediately necessary to establish an encumbering document with the Solid Waste Authority of Central Ohio for 2020 refuse disposal services, to avoid incurring interest penalties due to late payments, 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 Director of Public Service be and hereby is authorized to establish an encumbrance of $1,100,000.00 and to make payments to SWACO for additional 2020 refuse tipping services for the Division of Refuse Collection, pursuant to an existing lease agreement, at the various rate charges assigned to each tipping location and any legal subsequently adjusted rates.
SECTION 2. That the City Auditor be and is hereby authorized to transfer of $1,100,000.00 of appropriation within Fund 1000 General Fund per the accounting codes in the attachment to this ordinance.
SECTION 3. That the expenditure of $1,100,000.00, or so much thereof as may be needed, is hereby authorized in Fund 1000 General Fund in object class 03 Purchased Services per the accounting codes in the attachment to this ordinance.
SECTION 4. Due to an existing contractual relationship where the City of Columbus participates in the rate setting process the City is required to use SWACO waste disposal services and all other contracts will be awarded in accordance with applicable provisions of Chapter 329.
SECTION 5. That the City Auditor be and hereby is authorized to make any/all other accounting changes for the transactions discussed within this ordinance that are construed by the City Auditor to be reasonably consistent with the intent of this ordinance.
SECTION 6. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 7. 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 ten days after passage if the Mayor neither approves nor vetoes the same.