Explanation
This legislation is to authorize the purchase of a Compressed Natural Gas (CNG) Street Sweeper for the Department of Public Service, Division of Planning and Operations as part of the Congestion Mitigation and Air Quality (CMAQ) grant. This sweeper will replace an older unit that is beyond its useful service life. The Public Service Department is responsible for sweeping streets in the City's roadway system.
The CMAQ grant was awarded to the Fleet Management Division, from the Ohio Department of Transportation, sponsored by the Mid-Ohio Regional Planning Commission (MORPC). The goal of the project is to significantly reduce emissions from heavy-duty diesel vehicles. Ordinance 1178-2008 was passed on July 17, 2008 authorizing the acceptance and appropriation of this grant. Three interrelated projects are part of the grant: emission-reduction retrofit equipment purchases, anti-idling equipment purchases and CNG vehicle purchases.
CNG vehicles produce significantly lower amounts of harmful emissions such as nitrogen oxides, particulate matter and toxic and carcinogenic pollutants. Natural gas is a domestically available, inherently clean-burning fuel. Using compressed natural gas as vehicle fuel increases energy security by reducing our dependence on foreign oil and improves public health and the environment. Currently, CNG is also significantly lower in cost than either gasoline or diesel. The City of Columbus has paid an average of $3.54 per gallon year to date in 2011 for diesel fuel. CNG is currently retailing in Columbus for $2.11 per gge (gasoline gallon equivalent), a $1.43 per gallon or 40% savings in fuel cost.
This legislation authorizes the purchase of one Elgin CNG Street Sweeper from Jack Doheny Supplies Ohio Inc. The purchase of this equipment will be in accordance with the current StateTerm Schedule Contract (STS), Contract Number STS 7723500206 which expires on December 31, 2011. The City of Columbus does not have this equipment available on any Universal Term Contract and does not foresee receiving better pricing through a bid process.
Ordinance No. 582-87 authorizes the City of Columbus to participate in cooperative purchasing contracts and as a member of the Central Ohio Organization of Public Purchasers (CO-OPP), the City of Columbus is authorized to purchase from this contract. A copy of the State of Ohio contract and pricing structure is attached to this legislation.
FISCAL IMPACT: Funding for the base truck and 20% of the CNG upgrade will be funded through the 2011 Capital Improvements Budget in the Streets & Highways G.O. Bonds Fund. However,bonds have yet to be sold for the project, necessitating a certification of $240,682.20 against the Special Income Tax Fund. Upon the sale of bonds, this amount will be reimbursed to the Special Income Tax Fund. Of this, $224,332.20 is for the base cost of the street sweeper. An additional amount of $81,750.00 is necessary for the upgrade to CNG. Of this, 20% will be transferred from the Streets & Highways G.O. Bonds Fund to the CMAQ Grant Fund. The remaining $65,400.00, representing 80% of the cost of the CNG upgrade, will be funded by the CMAQ grant, from funds from the State Department of Transportation.
SUPPLIER: Jack Doheny Supplies Ohio Inc Contract Compliance Number 38-3148955, expires 08-17-2012.
EMERGENCY ACTION is necessary so that the purchase order for these vehicles can be issued as soon as possible, thereby ensuring that deadlines of the CMAQ grant are met.
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
Title
To authorize the Director of Finance and Management to establish a purchase order for the Fleet Management Division on behalf of the Department of Public Service for the purchase of one (1) Elgin CNG Eagle F Duel street sweeper in accordance with a State of Ohio State Term Schedule contract with Jack Doheny Supplies Ohio Inc; to authorize and direct the City Auditor to transfer $240,682.20 from the Special Income Tax Fund to the Streets and Highways Bond Fund; to authorize and direct the City Auditor to transfer $16,350.00 from the Streets and Highway Bond fund to the CMAQ grant fund; to authorize the City Auditor to appropriate $224,332.20 within the Streets and Highway Bond Fund and $81,750.00 to the CMAQ grant fund; and to authorize the expenditure of $224,332.20 from the Streets and Highways Bond Fund and $81,750.00 from the CMAQ grant fund; and to declare an emergency. ($306,082.20)
Body
WHEREAS, the Division of Fleet Management, on behalf of the Department of Public Service, Division of Planning and Operations, desires to purchase one Elgin CNG Model Eagle F Dual Street Sweeper in accordance with the State of Ohio Term Schedule contract, STS 7723500206 which expires on December 31, 2011; and
WHEREAS, Jack Doheny Supplies Ohio Inc is the contract holder for the referenced State of Ohio contract, a copy of the contract and pricing is attached; 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 aggregate principal amount of obligations which the city will issue to finance this project is presently expected not to exceed $240,682.20; 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").
WHEREAS, the City of Columbus does not include this type of equipment an any Universal Term contract and does not foresee receiving better pricing through the bid process; and
WHEREAS, ordinance 582-87 authorizes the City of Columbus to participate in cooperative purchasing contracts and as a member of the Central Ohio Organization of Public Purchasers, the City is authorized to purchase from this contract; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Planning and Operations, Department of Public Service, in that it is immediately necessary to issue a purchase order for an Elgin CNG street sweeper so that CMAQ grant deadlines are not missed, thereby preserving the public health, peace, property, safety, welfare; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Finance and Management is hereby authorized to establish a purchase order with Jack Doheny Supplies Ohio, Inc., 1860 Summit Commerce Park, Twinsburg, OH 44087, for the purchase of one (1) Elgin CNG Model Eagle F Dual street sweeper for the Fleet Management Division on behalf of the Department of Public Service, Division of Planning and Operations in accordance with the State of Ohio Term Schedule Contracts STS 7723500206 which expires December 31, 2011.
SECTION 2. The sum of $240,682.20 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, 2011 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer and appropriate said funds in Section 2 to the Streets and Highways Bond Fund, Fund 704 as follows:
Dept/Division: 59-11 59-11
Fund Number: 704 704
Project Number: 530020-100000 530020-100000
OCA Code: 591246 591246
Object Level One: 06 10
Object Level Three: 6652 5501
Amount: $224,332.20 $16,350.00
SECTION 4. That the City Auditor be authorized to transfer monies between the following funds as follows:
Transfer From:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704 / 530020-100000 / Street Equipment / 10-5501 / 591246 / $16,350.00
Transfer To:
Fund / Grant / Grant Name / O.L. 01-03 Codes / OCA / Amount
220 / 458086 / CMAQ Grant Fund / 80-0886 / 458086 / $16,350.00
SECTION 5. That the sum of $81,750.00 be and hereby is appropriated from the unappropriated balance of Fund 220, General Government Grant Fund, 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, 2011 to Dept-Div.45-05, the Division of Fleet Management as follows:
Fund / Grant / Grant Name / O.L. 01-03 Codes / OCA / Amount
220 /458086/ CMAQ grant/ 06-6652 / 458086 / $81,750.00
SECTION 6. That the expenditure of $224,332.20 or so much thereof as may be needed, is hereby authorized from the Streets and Highways Bond Fund, Dept/Division: 59-11, Fund 704, OCA 591246, project number 530020-100000 Object Level 01:06, Object Level 03: 6652.
SECTION 7. That the expenditure of $81,750.00 or so much thereof as may be needed, is hereby authorized from the Dept/Division: 45-05, CMAQ grant 458086, Fund 220, OCA 458086, Object Level 01:06, Object Level 03: 6652.
SECTION 8. That upon obtaining other funds for the purchase of a compressed natural gas street sweeper 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 3.
SECTION 9. 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 or contract modification associated with the expenditure of funds transferred in Section 3 above.
SECTION 10. 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 $240,682.20 (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 11. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 12. 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 or contract modifications associated with the expenditure of funds transferred in Section 11 above.
SECTION 13. That for reasons stated in the preamble hereto, which is 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.