Explanation
BACKGROUND: This ordinance authorizes the Finance and Management Director to contract with Wastequip to purchase a 34 cubic yard self -contained trash compactor that was originally bid as a three year lease. The use of this compactor unit eliminates the need for six large containers placed throughout the Fleet Management facility thereby reducing refuse collection costs, ensuring a proper container is placed on a solid concrete pad thereby minimizing wear and potential parking lot destruction, and improving aesthetics.
An informal bid for this container was issued earlier this year (RD009562) as the estimated cost of the asset was believed to be under $20,000 and that the purchase would be in the form of a lease, meaning the payments would occur from operating funds and be paid over several years ($7,843.20 per year for a total of $23,529.60). It was then determined it would be more cost effective if the City were to purchase the unit up front rather than extend the purchase and interest costs over a three year lease. Fleet Management and Wastequip negotiated the purchase price $20,273. Finance and Managment is recommending that the competitive bidding provisions of the Columbus City Codes be waived in order to realize a cost savings for both the purchase of the unit and in operating costs.
Emergency action is requested in order to purchase the unit at the lowest possible cost and eliminate six other smaller containers on site.
Fiscal Impact: The Fleet Management Division budgeted $93,154.42 in the 2008 Capital Improvements Budget for change orders for the new fleet maintenance facility. This ordinance authorizes an expenditure of $20,273.00 to purchase a trash compactor from Wastequip.
Wastequip CC# 223191624, Expiration May 22, 2009.
Title
To authorize the Finance and Management Director to contract with Wastequip to purchase a trash compactor; to authorize the expenditure of $20,273.00 from the Fleet Management ...
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