1. BACKGROUND:
There is a need for additional appropriation of monies within the Municipal Motor Vehicle License Tax Fund for the Division of Transportation for salt purchases in order for Transportation to begin the 2008-2009 snow season. The amount being appropriated within this ordinance in the Municipal Motor Vehicle License Tax Fund is $385,000.00.
Additional appropriation is also required in the Street Construction Maintenance and Repair Fund. Funding for the Division of Transportation in the amount of $242,212.00 has been made available from the Federal Emergency Management Agency (FEMA) due to the winter storm resulting in record snowfall in March 2008. Monies from FEMA are being transferred within ordinance 1316-2008, currently in progress, to the Street Construction Maintenance and Repair Fund for the purchase of rock salt.
The Division of Transportation is responsible for snow and ice control and removal on the City's roadway system. Rock salt is used extensively in this operation. Formal competitive bids were solicited and received and the Purchasing Office is establishing a citywide universal term contract (UTC) with Cargill, Inc., contract compliance number 41-0177680 (expires June 16, 2010) at a price of $39.85/ton (dumped) and 43.00/ton (piled). The price is allowed to escalate under the terms of this contract with requests for increases being subject to approval by the City.
It is necessary that the Division of Transportation purchase rock salt for the 2008 - 2009 winter season. This ordinance authorizes the Finance and Management Director to establish a purchase order for the purchase of rock salt for the Division of Transportation consistent with the terms and conditions of the to be established citywide term contract in the amount of $742,212.00.
2. FISCAL IMPACT:
Annual revenue into the Municipal Motor Vehicle License Tax Fund is consistently in the $3,100,000.00 to $3,200,000.00 range. Ordinance 0012-2008 passed by City Council January 31, 2008, authorized the 2008 appropriation of $3,769,000.00. The Division of Transportation has expended and/or encumbered nearly all funds appropriated during 2008.
3. EMERGENCY DESIGNATION:
The Department of Public Service is requesting that this ordinance be declared an emergency measure in order to allow for the immediate issuance of a purchase order for rock salt to ensure that the delivery and subsequent inventory of this commodity is available for use to ensure the proper maintenance of the City's roadways during snow events; and to provide the additional funding needs of other roadway operational and maintenance activities needed prior to the close of Fiscal Year 2008.
Title
To authorize the appropriation of $385,000.00 from within the unappropriated balance of the Municipal Motor Vehicle License Tax Fund and $242,212.00 from the Street Construction Maintenance and Repair Fund; to authorize the Finance and Management Director to establish a purchase order for rock salt with Cargill, Inc. in the amount of $742,212.00 for the Division of Transportation; and to declare an emergency.
Body
WHEREAS, planned expenditures utilizing monies from the Municipal Motor Vehicle License Tax Fund are ready to proceed; and
WHEREAS, funding is available from Federal Emergency Management Agency due to the winter storm in March 2008; and
WHEREAS, these funds are being transferred to the Street Construction Maintenance and Repair Fund; and
WHEREAS, an additional appropriation of funds is necessary; and
WHEREAS, the Division of Transportation is responsible for snow and ice control and removal on the City's roadway system; and
WHEREAS, rock salt is used in this operation; and
WHEREAS, the Purchasing Office has established a citywide universal term contract with Cargill, Inc., for the purchase of rock salt as a result of the formal competitive bidding process; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Transportation, Department of Public Service, in that it is immediately necessary to appropriate said funds to permit these expenditures and allow materials, supplies and services to be procured without delay to meet anticipated 2008 needs, 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 sum of $627,212.00 be and hereby is appropriated from the unappropriated balance of the Municipal Motor Vehicle License Tax Fund, Fund 266 and the Street Construction Maintenance and Repair Fund, and from all monies estimated to come into said Funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2008, to the Division of Transportation, Department No. 59-09, as follows:
Fund / materials and supplies / O.L. One/O.L. Three Code / OCA Code / amount
266 / rock salt / 02/2192 / 599115 / $385,000.00
265/ rock salt /02/2192 / 599122 / $242,212.00
Total, Object Level One Code 02: $627,212.00
SECTION 2. That the Finance and Management Director is hereby authorized to establish a purchase order with Cargill, Inc., 24950 Country Club Blvd. Suite 450, North Olmstead, OH 44070 for $742,212.00 for the purchase of rock salt for the Division of Transportation Division consistent with the terms and conditions of the existing citywide term contract for this purpose.
SECTION 3. That the expenditure of $742,212.00, or so much thereof as may be needed, be and hereby is authorized from Fund 266, the Municipal Motor Vehicle License Tax Fund and Fund 265, the Street Construction Maintenance and Repair Fund, Department No. 59-09, Division of Transportation as follows:
Fund / materials and supplies / O.L. One/O.L. Three Code / OCA Code / amount
266 / rock salt / 02/2192 / 599115 / $500,000.00
265/ rock salt /02/2192 / 599122 / $242,212.00
SECTION 4. That the monies appropriated in Section 1 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 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.