Explanation
1. BACKGROUND
The Division of Refuse Collection will utilize 64 gallon recycling containers in the city-wide yard waste and recycling program. These containers will be distributed to approximately 227,000 occupied single family residential units within the City over 10 months. Container delivery is scheduled to commence in April, 2012 and conclude in January, 2013. This legislation authorizes the Director of Finance and Management to establish purchase orders for the purchase and delivery of 64 gallon recycling containers and container parts for the Division of Refuse Collection per the terms and conditions of the Universal Term Contract which will be established as follows:
Ordinance 2000-2011 established the UTC for the purchase of these containers and parts as follows:
Toter, Incorporated /SA004052/ Ordinance 2000-2011/ Universal Term Contract #FL005083
The City's initial order, legislated by Ordinance 2003-2011, authorized the purchase of an estimated 99,000 recycling containers.
The City projects that an estimated 128,000 containers and miscellaneous parts (lids, wheel sets, fasteners, etc.) will be necessary to complete the deployment.
Quantity and item purchased / extended cost
Approximately 128,000 64 gallon recycling containers and miscellaneous parts / Total estimated expenditure of $5,315,000.00.
This Ordinance will provide the City with an additional purchasing capacity of approximately 128,000 recycling containers.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against Toter, Inc.
The amount for this expenditure will be included in the proposed 2012 Capital Improvement Budget.
2. CONTRACT COMPLIANCE
The contract compliance number for Toter, Incorporated is 56-1362422 and expires August 10, 2013.
3. FISCAL IMPACT
Funding in the amount of $5,315,000.00 is required, necessitating a certification of $5,315,000.00 against the Special Income Tax Fund. Upon sale of the bonds, this will be reimbursed.
4. EMERGENCY DESIGNATION
Emergency action is requested to meet contractually obligated schedules for container deployment and service rollout.
...Title
To authorize the Director of Finance and Management to establish a purchase order with Toter, Incorporated for the purchase of recycling containers for the Division of Refuse Collection per the terms and conditions of an established Universal Term Contract; to amend the 2011 C.I.B; to authorize and direct the City Auditor to transfer $5,315,000.00 from the Special Income Tax Fund to the Refuse G.O. Bonds Fund; to authorize the City Auditor to appropriate $5,315,000.00 within the Refuse G.O. Bonds Fund; and to authorize the expenditure of $5,315,000.00 from the Refuse G.O. Bonds Fund; and to declare an emergency. ($5,315,000.00)
Body
WHEREAS, the Division of Refuse Collection has determined the need for approximately 227,000 64-gallon containers and container parts for use in the yard waste and recycling program; and
WHEREAS, a citywide Universal Term Contract with Toter, Incorporated has been created for the purchase and delivery of said containers and container parts authorized by ordinance 2000-2011; and
WHEREAS, it is necessary to amend the 2011 Capital Improvement Budget; 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 $5,315,000.00; 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 operation of the Division of Refuse Collection, Department of Public Service, in that it is immediately necessary to issue a purchase order for the city-wide yard waste and recycling program implementation schedule, thereby the 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 be and hereby is authorized to establish a purchase order in the amount of $5,315,000.00 with Toter, Incorporated, 841 Meacham Road, Statesville, NC, 28677, for the purchase of approximately 128,000 64-gallon containers and miscellaneous parts in accordance with the terms and conditions of universal term contract (UTC) FL005083.
SECTION 2. That the 2011 Capital Improvement Budget authorized by ordinance 0266-2011 be and hereby is amended to provide sufficient authority for this project as follows:
Fund/Project / Project Name / Current / Change / Amended
703 / 520001-100011 / Mechanized Collection Equipment - Recycling Containers (Voted 2008) / $4,000,000.00 / $5,315,000.00 / $9,315,000.00
SECTION 3. The sum of $5,315,000.00 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, 2012 to the City Auditor, Department 22-01, Object Level One 10, OCA code 902023, Object Level Three 5502.
SECTION 4. That the City Auditor is hereby authorized to transfer and appropriate said funds in SECTION 3 to the Refuse G.O. Bonds Fund, Fund 703 as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
703 / 520001-100011 / Mechanized Collection - Recycling Containers / 06-6651 / 730111 / $5,315,000.00
SECTION 5. That the monies appropriated in the foregoing Section 4 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 6. That upon obtaining other funds for the purchase of these recycling containers 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 4.
SECTION 7. That the City Auditor is authorized to make any accounting changes to revise the funding source for any contract(s) or contract modification(s) associated with the expenditure of the funds transferred under Section 4 above.
SECTION 8. 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 $5,315,000.00 (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 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 9. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 10. That the expenditure of 5,315,000.00, or so much thereof as may be needed, is hereby authorized from the Refuse G.O. Bonds Fund, Dept/Division: 59-03 as follows
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
703 / 520001-100011 / Mechanized Collection - Recycling Containers / 06-6651 / 730111 / $5,315,000.00
SECTION 11. 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 12. 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 10 days after its passage if the Mayor neither approves nor vetoes the same.