Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Service to add funds for fuel surcharges associated with the 2023 contract renewal with Rumpke of Ohio, Inc., in the amount of $165,000.00, and to authorize the Director of Public Service to execute contract modifications if needed to clarify terms and conditions of the contract or to implement program improvements and enhancements.
Continuation of a separate collection for yard waste and recyclable items is necessary to segregate them from the regular waste stream. This serves to extend the life of the landfill operated by the Solid Waste Authority of Central Ohio (SWACO).
The Collection Services of Yard Waste and Recyclables contract provides bi-weekly collection of yard waste and weekly collection of recyclables for residences, servicing of recycling containers deployed along Broad Street and High Street as part of the Pedestrian Recycling Program, glass pick-up from restaurants and bars along N. High Street as part of the Recycle On High program, and recyclable collection services for the solar compactors deployed in the Short North Area.
The Department of Public Service issued a bid in 2016 to establish a contract to replace the expiring Collection Services of Yard Waste and Recyclables contract. City Council approved awarding this contract to Rumpke via Ordinance 0479-2017, passed by Council on 3/13/17. The contract is a five-year contract expiring 3/31/22, with five one-year renewal options. This modification will add funds to pay for fuel surcharges negotiated as part of the most recent contract renewal.
1.1 Amount of additional funds to be expended: $165,000.00
Original Contract Amount: $8,500,000.00 (Ordinance 0479-2017, PO052658)
Contract Year 2 (two) Amount: $8,730,000.00 (Ordinance 0607-2018, PO113383)
Contract Year 3 (three) Amount: $9,017,736.00 (Ordinance 0927-2019, PO168307)
Contract Year 4 (four) Amount: $9,226,776.00 (Ordinance 0441-2020, PO219470)
Contract Year 5 (five) Amount: $9,540,336.00 (Ordinance 0583-2021, PO265724)
Contract Year 6 (six) Amount: $10,379,496.00 (Ordinance 0813-2022, PO319900)
Contract Year 7 (this year) Amount: $16,314,036.00 (Ordinance 0775-2023, PO379141)
Contract Year 7 (fuel surcharges) Amount: $165,000.00 (this ordinance)
Total Contract Amount: $71,873,380.00
Searches in the System for Award Management (Federal) and the Findings for Recovery list (State) produced no findings against Rumpke.
1.2 Reasons additional goods/services could not be foreseen:
The amount of the fuel surcharges was negotiated after the contract renewal was signed. Therefore additional funds are required to pay aged accounts receivable portions of previous invoices, and to add funds for the remainder of the existing contract year.
1.3 Reason other procurement processes are not used:
The vendor has an existing multi-year contract executed on March 3, 2017. Therefore a bid is not needed at this time.
1.4 How cost of modification was determined:
The cost of this contract modification and extension is consistent with rates that were established by historical data from invoices the City has paid thus far for services rendered.
2. CONTRACT COMPLIANCE
Rumpke’s contract compliance number is CC005677 and expires 3/18/2024. .
3. FISCAL IMPACT
The Division of Refuse Collection's 2023 General Fund budget includes $165,000.00 available for this purpose.
4. EMERGENCY DESIGNATION
Emergency action is requested to allow timely execution of this contract, to prevent a lapse of a recycling and yard waste collection contract in order to continue this service to residents.
Title
To authorize the Director of the Department of Public Service to modify the contract with Rumpke of Ohio, Inc., for yard waste and recycling collection services; to authorize the expenditure of $165,000.00 from the General Fund for added fuel surcharges negotiated as part of the most recent contract renewal; and to declare an emergency. ($165,000.00)
Body
WHEREAS, the City of Columbus provides yard waste and recyclable collection through a contract established through the bid process; and
WHEREAS, a five-year contract with five one-year renewal options to perform these services was awarded to Rumpke of Ohio, Inc.; and
WHEREAS, year seven of the contract was authorized earlier this year with Ord. 0775-2023; and
WHEREAS, it is necessary to add funds to the contract to pay for fuel surcharges; and
WHEREAS, it is necessary to authorize the expenditure of $165,000.00 from the Division of Refuse Collection from the General Fund; and
WHEREAS, it may be necessary to execute contract modifications to clarify terms and conditions of the contract, and to execute contract modifications to implement program improvements and enhancements; and
WHEREAS, an emergency exists in the usual daily operation of the Public Service Department, Refuse Collection Division, in that it is immediately necessary to add funds to the contract with Rumpke of Ohio, Inc. to pay for fuel surcharges, to prevent a lapse in the contract and to allow the continuation of the service, 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 add funds to the contract with Rumpke of Ohio, In., 10795 Hughes Road, Cincinnati, OH, 45251, to pay for fuel surcharges associated with the Collection Services of Yard Waste & Recyclables 2023 contract.
SECTION 2. That the expenditure of $165,000.00, or so much thereof as may be needed, is hereby authorized in Fund 1000, the General Fund. in Object Class 03 (Purchased Services) per the accounting codes in the attachment to this ordinance.
SECTION 3. 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 4. 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 5. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 6. 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.