Explanation
BACKGROUND: This legislation authorizes the Finance and Management Director to issue purchase orders to The Sutphen Corporation and Pierce Manufacturing Inc. via Atlantic Emergency Solutions for the purchase of Fire and EMS emergency response apparatus/vehicles and related equipment as follows:
The Sutphen Corporation ~ The Division of Fire is in need to purchase five (5) The Sutphen Corporation Monarch Custom Pumpers in the amount of $5,440,960.00 to replace apparatus that are beyond their useful life with high maintenance costs. Included with The Sutphen Monarch Custom Pumpers purchase will be the purchase/installation of all pertinent equipment to be utilized on the respective vehicles.
Pierce Manufacturing Inc. via Atlantic Emergency Solutions ~ The Division of Fire is in need to purchase one (1) custom Pierce Tiller Ladder Truck and the purchase/installation of all pertinent equipment in the amount of $2,350,880.00 for the Division of Fire. The Fire Division has a need to replace one (1) aerial tiller ladder truck that is beyond its useful life and has high maintenance costs. The retrofitting of intercom systems is included in this purchase, which will provide the latest model of decibel reducing headset technology for firefighters in an effort to reduce the occupational hazards faced while operating such emergency apparatus.
BID INFORMATION:
The Sutphen Corporation ~ $5,440,960.00 - State of Ohio Index #STS618 - Contract #800814 expires 8/31/2024 - vendor #004200 // The Division of Fire is requesting a waiver of competitive bidding requirements of the City Code for this purchase. While these purchases will be made from the existing State of Ohio Term Contract STS618/#800814 with The Sutphen Corporation, recent changes to bidding requirements cannot be fulfilled in a timely fashion for this custom apparatus and thus a waiver of bidding is necessary.
Pierce Manufacturing Inc. via Atlantic Emergency Solutions ~ $2,350,880.00 - State of Ohio #STS618 - Schedule #800918 expires 6/30/2025 - vendor #034448 // The Division of Fire is in need to purchase one (1) Pierce Tiller Ladder Truck in the amount of $2,350,880.00 to replace one (1) aerial tiller ladder truck that is beyond its useful life and has high maintenance costs. Included in the quote for this purchase is the cost for three (3) inspection trips (pre-construction, post paint, and final) for eight (8) Columbus Fire personnel totaling $36,000.00. Bidding requirements for STS purchases cannot be fulfilled in a timely fashion for this custom apparatus and thus a waiver of bidding is necessary.
EMERGENCY DESIGNATION: Emergency action is requested as funds are needed immediately so that production of these custom apparatus/vehicles can commence upon passage of this ordinance to avoid supply chain delays and accommodate lengthy build times.
FISCAL IMPACT: Unencumbered cash will be available upon transfer from the Special Income Tax Fund to the Fire Division’s Safety Bond Fund for this purchase. This transfer is a temporary funding method; the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund. Certain funds are currently available within the Safety Voted Bond Fund upon transfer thereof and amendments to the Capital Improvement Budget.
Title
To authorize and direct the City Auditor to transfer $7,758,280.91 from the Special Income Tax Fund to the Fire Safety Bond Fund; to authorize the appropriation of said funds; to authorize the transfer of $17,097.09 within the Safety Voted Bond Fund; to waive the competitive bidding and sale of surplus provisions of the Columbus City Codes, Chapter 329; to authorize the Finance and Management Director to enter into contracts with and issue purchase orders to The Sutphen Corporation for the purchase of five (5) Monarch Custom Pumpers in the amount of $5,440,960.00, and Pierce Manufacturing Inc. via Atlantic Emergency Solutions for the purchase of one (1) Pierce Tiller Ladder in the amount of $2,350,880.00; to amend the 2023 Capital Improvement Budget; to authorize the expenditure of $7,791,840.00 from the Safety Voted Bond Fund; and to declare an emergency. ($7,791,840.00)
Body
WHEREAS, a need exists within the Fire Division to purchase front line response rescue and fire apparatus and related rescue extraction and communications equipment; and,
WHEREAS, it is necessary to amend the 2023 Capital Improvement Budget; and,
WHEREAS, a transfer of funds from the Special Income Tax Fund is necessary to fund this purchase; 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 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"); and,
WHEREAS, the aggregate principal amount of obligations which the City will issue to finance this purchase is presently expected not to exceed $7,758,280.91; and,
WHEREAS, it is necessary to authorize a transfer of funds within the Safety Voted Bond Fund;
WHEREAS, it is necessary to authorize the Director of Finance and Management to issue purchase orders to The Sutphen Corporation and Pierce manufacturing Inc. via Atlantic Emergency Solutions for the purchase of Fire and EMS emergency response apparatus/vehicles and related equipment needed by the Division of Fire; and,
WHEREAS, a waiver to the competitive bidding and sale of surplus equipment provisions of the Columbus City Codes is necessary given changes to State of Ohio STS policies; and,
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Safety in that it is immediately necessary to authorize the Director of Finance and Management to enter into contacts for these purchases and authorize the City Auditor to transfer said funds from the Special Income Tax Fund into the Safety Voted Bond Fund to purchase said equipment, emergency action is required as funds are needed immediately so that production of these custom appartaus/vehicles can commence upon passage of this ordinance to avoid supply chain delays and accommodate lengthy build times, all for the immediate preservation of the public health, peace, property, safety, and welfare; and now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the sum of $7,758,280.91 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 4430, 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, 2023 to the City Auditor, Division 2201, Object Class 10 Transfer Out Operating.
SECTION 2. That the sum of $7,758,280.91 be and is hereby appropriated from the unappropriated balance of the Safety Voted Bond Fund, Fund 7701, 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, 2023 to the Division of Fire, Division 3004, Object Class 06 Capital Outlay.
SECTION 3. That the monies appropriated in the foregoing Section 2 shall be paid upon order of the Director of Public Safety 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 4. That the 2023 Capital Improvement budget (Ordinance 1711-2023) is hereby amended as follows in order to provide sufficient budget authority for this ordinance.
Fund / Project / Project Name (Funding Source) / Current / Change / Amended
Fund 7701; P340101-100000; 30-04 Fire Apparatus Replacement (Voted Carryover) / $17,098.00 / ($1.00) / $17,097.00 (to match cash)
Fund 7701; P340151-100000; Fire Apparatus Replacement - Ladders (Voted Carryover) / $367,980.00 / ($1.00) / $367,979.00 (to match cash)
Fund 7701; P340101-100000; 30-04 Fire Apparatus Replacement (Voted Carryover) / $17,097.00 / ($17,097.00) / $0.00
Fund 7701; P340101-100000; 30-04 Fire Apparatus Replacement (Voted 2019 SIT Supported) / $4,000,000.00 / ($3,758,281.00) / $241,719.00
Fund 7701; P340151-100000; Fire Apparatus Replacement - Ladders (Voted Carryover) / $367,979.00 / $17,097.00 / $385,076.00
Fund 7701; P340151-100000; Fire Apparatus Replacement - Ladders (Voted 2019 SIT Supported) / $2,000,000.00 / $317,321.00 / $2,317,321.00
Fund 7701; P340152-100000; Fire Apparatus Replacement - Engines (Voted 2019 SIT Supported) / $2,000,000.00 / $3,440,960.00 / $5,440,960.00
SECTION 5. That the transfer of $7,758,280.91 or so much thereof as may be needed, is hereby authorized between the Special Income Tax Fund 4430 and the Safety Voted Bond Fund 7701, per the account codes in the attachment to this ordinance.
SECTION 6. That the transfer of $17,097.09 or so much thereof as may be needed, is hereby authorized within the Safety Voted Bond Fund 7701, per the account codes in the attachment to this ordinance.
SECTION 7. That the expenditure of $7,791,840.00 or so much thereof as may be needed, is hereby authorized within the Safety Voted Bond Fund 7701, per the account codes in the attachment to this ordinance.
SECTION 8. That the Finance and Management Director be and is hereby authorized to issue a purchase order to: The Sutphen Corporation for the purchase of five (5) Monarch Custom Pumpers in the amount of $5,440,960.00 as authorized by cooperative purchasing agreement Ordinance 582-87; as well as a purchase order to Pierce Manufacturing Inc. via Atlantic Emergency Solutions for the purchase of one (1) Pierce Tiller Ladder in the amount of $2,350,880.00 as authorized by cooperative purchasing agreement Ordinance 582-87.
SECTION 9. That upon obtaining other funds for this project for the Department of Public Safety, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 5 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 10. 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 Sections 5 and 6, above.
SECTION 11. 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 $7,758,280.91 (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 the 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 12. 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 13. That all 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 14. That this Council finds it is in the best interest of the City of Columbus to waive the competitive bidding and sale of surplus equipment provisions of the Columbus City Code, Chapter 329, relating to the aforementioned purchase of The Sutphen Corporation and Atlantic Emergency Solutions (Pierce) apparatus and related equipment for the Division of Fire.
SECTION 15. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared 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.