Explanation
This legislation is to authorize the purchase of one (1) Compressed Natural Gas (CNG) Mobile Tire Service Truck for the Finance and Management Department, Fleet Management Division as part of the Congestation Mitigation and Air Quality (CMAQ) grant. This mobile tire service truck will replace an older unit that is beyond its useful service life. The Fleet Management Division is responsible to repair and replace tires on City vehicles that become inoperable on roadways.
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 $2.77 per gallon year to date in 2010 for diesel fuel. CNG is currently retailing in Columbus for $1.50 per gge (gasoline gallon equivalent), a $1.27 per gallon or 46% savings in fuel cost.
Formal bids for the Mobile Tire Service Truck with Compressed Natural Gas engine option were received from four (4) vendors by the Purchasing Office on June 3, 2010 via SA003577. However, none of the bids included the CNG component. It is therefore in the best interest of the City to waive the competitive bidding requirements of the Columbus City Codes.
This ordinance authorizes the Finance and Management Director to issue a purchase order with Ricart Properties Inc. for a CNG mobile tire truck for the Fleet Management Division.
Contract compliance: 31-1282546 expires 10/23/2010
FISCAL IMPACT: Funding for the base truck and 20% of the CNG upgrade will be funded through the 2010 Capital Improvements Budget in the Fleet Management Bond Fund. However, bonds have yet to be sold for the project, necessitating a certification of $76,760.00 against the Special Income Tax Fund. Of this, $71,680.00 is for the base cost of the mobile tire truck. An additional amount of $25,400.00 is necessary for the upgrade to CNG. Of this, 20% will be transferred from the Fleet Management Bond Fund to the CMAQ Grant Fund. Upon sale of the bonds, this will be reimbursed. The remaining $20,320.00 representing 80% of the cost of the CNG upgrade will be funded by the CMAQ grant, from funds from the State Department of Transportation.
Emergency Action is necessary so that the purchase order for this vehicle can be issued as soon as possible; thereby ensuring deadlines of the CMAQ grant are met.
Title
To authorize the Finance and Management Director to contract with Ricart Properties Inc for a CNG Mobile Tire Service Truck for the Division of Fleet Management; to authorize and direct the City Auditor to transfer $76,760.00 from the Special Income Tax Fund to the Fleet Management Bond Fund; to authorize the City Auditor to transfer $5,080.00 from the Fleet Management Bond Fund to the CMAQ grant fund; to appropriate $71,680.00 within the Fleet Management Bond Fund and $25,400.00 to the CMAQ grant; and to authorize the expenditure of $71,680.00 from the Fleet Management Bond Fund and $25,400.00 from the CMAQ grant, to waive competitive bidding requirements of the City of Columbus Codes; and to declare an emergency. ($97,080.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to waive formal bidding requirements for the purchase of a CNG mobile tire service truck; and
WHEREAS, the City's Fleet Management Division is in need of a new mobile tire service truck to repair and replace tires on City vehicles that have become inoperable; 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 aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $76,760.00; 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, an emergency exists in the usual daily operations of the Finance and Management Department, Fleet Management Division, in that it is immediately necessary to authorize the Finance and Management Director to contract with Ricart Properties Inc for the Fleet Management Division, so that CMAQ grant deadlines are met, 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 Finance and Management is hereby authorized to contract with Ricart Properties Inc for the purchase of one CNG Mobile Tire Service Truck for the Fleet Management Division.
SECTION 2. The sum of $76,760.00 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, 2010 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 Fleet Management Bond Fund, Fund 513-002 as follows:
Dept/Division: 45-05 45-05
Fund Number: 513-002 513-002
Project Number: 550003-100000 550003-100000
OCA Code: 513003 513003
Object Level One: 06 10
Object Level Three: 6652 5501
Amount $71,680.00 $5,080.00
SECTION 4. That the transfer of monies between the following funds be authorized as follows:
Transfer From:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
513-002 / 550003-100000 /Fleet Equipment Replacement/ 10-5501 / 513003 / $5,080.00
Transfer to:
Fund / Grant / Grant Name / O.L. 01-03 Codes / OCA / Amount
220 /458086 / CMAQ Improvement Program/80/0886 / 458086 / $5,080.00
SECTION 5. That the sum of $25,400.00 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, 2010 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 Improvement Program/ 06-6652 / 458086 / $25,400.00
SECTION 6. That the expenditure of $71,680.00 or so much thereof as may be needed, is hereby authorized from the Fleet Management Bond Fund, Dept/Division: 45-05, Fund 513-002, OCA 513003, project number 550003-100000 Object Level 01:06, Object Level 03: 6652.
SECTION 7. That the expenditure of $25,400.00 or so much thereof as may be needed, is hereby authorized from the Dept/Division: 45-05, CMAQ Improvement Program grant 458086, Fund 220, OCA 458086, Object Level 01:06, Object Level 03: 6652.
SECTION 8. That the provisions of Columbus City Code, Section 329.06 are hereby waived.
SECTION 9. That upon obtaining other funds for the purchase of a compressed natural gas mobile tire service truck for the Division of Fleet Managmenet, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 2.
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 Section 2, 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 $76,760.00 (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. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 13. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contract or contract modifications associated with this ordinance.
SECTION 14. That for the 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 ten days after passage if the Mayor neither approves nor vetoes the same. That this ordinance shall take effect from and after the earliest period allowed by law.