Explanation
BACKGROUND:
Need: This ordinance authorizes the Finance and Management Director to modify an existing contract for the Fire Division with American LaFrance for the purchase of four (4) tractor drawn aerial fire ladders for front-line emergency response. The aerial fire ladders were previously authorized by Council under Ordinance Nos. 1626-2006 and 0052-2007.
On January 28, 2008, American LaFrance filed under Chapter 11 of Title 11 of the United States Code with the Bankruptcy court for the District of Delaware. Thereafter, on March 24, 2008, they filed its fourth Amended Disclosure Statement and its Third Amended Plan of Reorganization with the consent and approval of the Official Committee of Unsecured Creditors. On May 23, 2008, the Debtor's chapter 11 Plan was confirmed by the Bankruptcy Court.
Due to their financial condition and associated bankruptcy proceedings American LaFrance has exceeded the delivery times specified within the original contract agreement; however, the approved bankruptcy Court's reorganization plan does not allow for the payment of penalties accrued after the filing of the bankruptcy.
This contract modification provides for the City to accept delivery of the four (4) aerial ladders at a lower price than the contract specified ($830,669 vs. $856,244; a contract savings of $102,300) and limits the liquidated damages provision. All four (4) units have been on order for approximately one and a half years. Rebidding would delay the delivery of this front line emergency equipment and would very likely mean higher prices. All other provisions of the contract remain the same and delivery of the units remains anticipated before the end of this summer.
Contract Compliance: American LaFrance - #203680664
EMERGENCY ACTION is requested so that the construction of this custom apparatus can be completed promptly and delivery accepted by the City of Columbus.
FISCAL IMPACT: No additional funds are r...
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