Explanation
1. BACKGROUND
This legislation authorizes the Director of Public Service to establish an encumbrance within the Special Income Tax Fund to pay 2015 waste disposal tipping fees for the Division of Refuse Collection. This expense is necessary to safely and contractually dispose of the waste collected by the division in the course of pursuing its mission by providing residential refuse collection services to over 327,000 households weekly and picking up bulk items and illegally dumped items as needed.
The Department of Public Service has determined that $17,250,000.00 should be adequate for this purpose. This number is based on estimated waste stream of 300,000 tons in 2014. Actual tonnage is ultimately dependent on variables such as the weather, the actual number of households collected that cannot be specifically calculated at this time, and the unknown amount of bulk and illegally dumped items. If necessary, additional legislation will be submitted to increase this at a later date.
Previous calendar years' actual tipping fee expenditures totaled $12,943,226.58 (2007), $12,901,357.53 (2008), $13,049,098.46 (2009), $13,312,244.86 (2010), $14,522,167.56 (2011), $16,543,036.71 (2012), $15,873,121.00 (2013), and $16,752,000.00 (2014). SWACO tipping fee rates are determined by SWACO's established rate setting process and other waste disposal fees were determined by the City's competitive bidding process.
Three-year contracts will be established to provide construction and demolition material disposal services and tire disposal service. Both contracts will expire February 28, 2018.
2. BID WAIVER
Formal competitive bidding requirements must be waived for SWACO because waste disposal services, other than those provided by SWACO, are available in the marketplace; however the City is bound by contract to tip household waste at SWACO facilities. The Division sought bids for waste stream disposal services not provided by SWACO: tire disposal and construction and demolition (C&D) material disposal.
3. FISCAL IMPACT
This 2015 expense is budgeted within the Special Income Tax Fund, and it is contingent upon the passage of Ordinance 2622-2014.
4. EMERGENCY DESIGNATION
Emergency action is requested to avoid delays of payment to SWACO that could result in the City incurring interest penalties as specified within the Agreement between the City and SWACO.
Title
To authorize the expenditure of $17,250,000.00 or so much thereof as may be necessary from the Special Income Tax Fund; to authorize the Director of Public Service to establish an encumbrance of $17,225,000.000 to pay refuse tipping fees to the Solid Waste Authority of Central Ohio (SWACO) for the Division of Refuse Collection pursuant to an existing lease agreement; to waive the competitive bidding requirements of the City Code Chapter 329; to establish encumbrances up to $25,000.00 for tire disposal, construction and demolition (C&D) material disposal; and to declare an emergency. ($17,250,000.00)
Body
WHEREAS, the Division of Refuse Collection must encumber funds to continue refuse tipping at the Solid Waste Authority of Central Ohio (SWACO) facilities, pursuant to the lease agreement between the City and SWACO for those facilities, and must encumber funds for disposal of tires, construction and demolition material disposal; 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 establish an encumbering document with the Solid Waste Authority of Central Ohio for 2015 refuse disposal services, to avoid incurring interest penalties due to late payments, 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 Public Service be and hereby is authorized to establish an encumbrance with SWACO for 2015 refuse tipping services for the Division of Refuse Collection at the various rate charges assigned to each tipping location and any legal subsequently adjusted rates, and to establish encumbrances for disposal of tires and for disposal of construction demolition material.
SECTION 2. That the expenditure of $17,250,000.00 so much thereof as may be needed be and hereby is authorized from Fund 430, the Special Income Tax Fund, Department No. 59-02, Department of Public Service, Division of Refuse Collection, Object Level One Code 03, Object Level Three Code 3389 and OCA Code 594341. Of this amount, $17,225,000.00 is to be encumbered for SWACO; the remaining $25,000.00 will be encumbered for disposal of tires and for disposal of construction demolition material.
SECTION 3. That in accordance with the relevant provisions of City Code Chapter 329, City Council has determined that it is in the best interest of the City to waive the formal competitive bidding requirements with respect to the encumbrance to be established with SWACO, all other contracts will be awarded in accordance with applicable provisions of Chapter 329.
SECTION 4. That the City Auditor be and hereby is authorized to make any/all other accounting changes for the transactions discussed within this ordinance that are construed by the City Auditor to be reasonably consistent with the intent of this ordinance.
SECTION 5. 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 ten days after passage if the Mayor neither approves nor vetoes the same.