Explanation
1. BACKGROUND
This legislation authorizes the Director of Public Service to modify and increase an existing encumbrance established per Ordinance #1823-2010 passed January 24, 2011 to pay 2011 refuse tipping fees to the Solid Waste Authority of Central Ohio (SWACO) for the Division of Refuse Collection. The original encumbrance was established in the amount of $14,605,465.00 based on estimated refuse tonnage and a $7 per ton credit. The actual and projected amount is very close to exceeding the estimated amount because the City's lease credit has been exhausted. Actual annual tipping fees totaled $13,049,098.46 and $13,312,244.86 for 2009 and 2010, respectively. Through October, actual 2011 expenditures total $11,107,707.49. There is some concern that the existing $3,497,797.51encumbrance balance will prove insufficient to pay the entire November, December, and January invoices. Since partial payments are unacceptable and delayed payments incur an interest penalty, it is prudent to prepare for this possibility by increasing the amount of the encumbrance by $500,000.00.
2. BID WAIVER
Formal competitive bidding requirements must be waived because refuse disposal services other than those provided by SWACO are available in the marketplace; however, the City is contractually obligated to tip at SWACO facilities. Tipping fee rates are determined by SWACO's established rate setting process. The city is represented on SWACO's board of directors.
3. FISCAL IMPACT
Additional funding for tipping fees is available within the Special Income Tax Fund. This ordinance appropriates these funds as necessary.
4. EMERGENCY DESIGNATION
Emergency action is requested to provide for full payment of all liabilities and avoid payment delays to the Solid Waste Authority of Central Ohio (SWACO).
Title
To appropriate $500,000.00 within the Special Income Tax Fund; to authorize the Director of Public Service to modify and increase an existing ...
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