Explanation
1. BACKGROUND
The purpose of this ordinance is to authorize the Director of Finance and Management to modify contracts with Ohio Machinery dba Ohio Peterbilt, in order to pay surcharges passed along from the suppliers, and with proper documentation.
The Department of Public Service, Division of Refuse Division, has placed orders with several vendors for different types of equipment over the past three years, however due to the long lead times for production and delivery in the post-pandemic market place, many surcharges are being assessed by the manufactures and their suppliers.
This ordinance authorizes the Director of Finance and Management to modify the existing contracts to add the surcharges of up to $257,000.00 for the trucks. The Department of Public Service feels these changes are acceptable considering the supply chain issues and increased material costs therein, during the COVID-19 pandemic, and the vehicles offered by the contracted vendor will meet the needs of the Department of Public Service, and maintain the replacement of aged vehicles in the Division of Refuse Collection’s fleet. The following vehicles we're assessed surcharges:
PO295247 - Two (2) Peterbilt/Heil 42-Yard Front Loading Trucks: Original Cost $355,220.00 + Surcharge $55,883.00 = $411,103.00: Subtotal = $111,766.00
Two (2) Peterbilt/Heil 32-Yard Rear Loading Trucks: Original Cost $306,137.00 + Surcharge $51,499.00 = $357,636.00: Subtotal = $102,998.00
PO395724 - Two (2) Peterbilt/Lightning Loader Knuckelboom Trucks: Original Cost $216,600.00 + Surcharge $21,118.00 = $237,718.00: Subtotal = $42,236.00
Total = $257,000.00
The following Purchase Agreement association requires approval by City Council in order for the Division to expend more than $100,000.00 in a fiscal year per City Code Section 329.19(g):
Ohio Machinery Company dba Ohio Peterbilt: Universal Term Contract Purchase Agreement, PA006315, Ordinance 3516-2022, for Knuckle Boom Waste Trucks.
Ohio Machinery Company dba Ohio Peterbilt: Universal Term Contract Purchase Agreement, PA005654, Ordinance 2623-2020, for Front and Rear Loading Waste Trucks.
Ohio Machinery Company dba Ohio Peterbilt 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.
2. CONTRACT COMPLIANCE INFORMATION
The contract compliance number for the vendor:
Ohio Machinery dba Ohio Peterbilt is CC006428 and expires 6/8/2024.
3. FISCAL IMPACT
Funds are budgeted and available for this expenditure from the Division of Refuse Collection Bond Fund 7703.
4. MINORITY AND WOMAN OWNED BUSINESS ENTERPRISE & SMALL LOCAL BUSINESS ENTERPRISE PROGRAM
These expenditures are being made from Universal Term Contracts established for use by the City’s Purchasing Office and as such do not require MWBE goals to be established.
5. EMERGENCY DESIGNATION
The department requests emergency designation so this equipment can be put into service as quickly as possible to prevent interruption to, or disruption of, the Division of Refuse Collection operations.
Title
To authorize the Finance and Management Director, on behalf of the Department of Public Service, to modify contracts with Ohio Machinery Company dba Ohio Peterbilt; to allow for raw material and labor surcharges of up to $257,000.00; to authorize the expenditure of up to $257,000.00 from the Division of Refuse Collection Bond Fund; and to declare an emergency. ($257,000.00)
Body
WHEREAS, the Department of Public Service, Division of Refuse Collection, has a need to maintain the replacement of aged vehicles in the Division of Refuse Collection’s fleet; and
WHEREAS, ordinances 2176-2021, 0424-2021, and 0488-2021 authorized the purchase of and payment for multiple trucks to ESEC Corporation; and
WHEREAS, ESEC Corporation was acquired by Ohio Machinery dba Ohio Peterbilt, and all existing contracts with the City of Columbus were inherited therein, authorized by Ordinance 2634-2021; and
WHEREAS, after ordinances were passed, Ohio Machinery dba Ohio Peterbilt, notified the Director of Finance and Management that due to supply chain and labor issues beyond their control, a raw materials and labor surcharge of up to $257,000.00 is necessary to build the trucks; and
WHEREAS, the Department feels the surcharges of up to $257,000.00 is acceptable and the trucks will meet the needs of the Department; and
WHEREAS, the trucks have been delivered, and are currently in service; and
WHEREAS, it is necessary to authorize the Director of Finance and Management to modify the contracts with Ohio Machinery dba Ohio Peterbilt to add surcharges of up to $257,000.00 for existing truck orders; and
WHEREAS, it is necessary to authorize the expenditure of up to $257,000.00 with Ohio Machinery dba Ohio Peterbilt for the raw material and labor surcharges for the trucks; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance in that it is immediately necessary to authorize the Director to modify the contracts for the trucks and pay the additional surcharges so this equipment can be put into service as quickly as possible, as to prevent interruption to, or disruption of, the Division of Refuse Collection operations, 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 is hereby authorized to modify the contracts with Ohio Machinery dba Ohio Peterbilt for truck on order and/or delivered, for the purpose of adding the surcharges of up to $257,000.00.
SECTION 2. That the expenditure of up to $257,000.00, or as much thereof as may be necessary, is hereby authorized in Fund 7703 (the Division of Refuse Collection Bond Fund ), Dept-Div 5902 (Division of Refuse Collection) in Object Class 06 (Vehicles) per the account codes in the attachment to this ordinance.
SECTION 3. 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 4. 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 5. 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.