Explanation
1. BACKGROUND
The purpose of this ordinance is to authorize the Director of the Department of Finance and Management to enter into a contract with ODOT to participate in the winter cooperative purchasing contract; to enter into a contract with ODOT's selected vendors (to be determined at a later date) for the purchase of rock salt per the guidelines of the cooperative purchasing contracts; and to authorize the Director of the Department of Finance and Management to establish purchase orders with ODOT's selected vendors for the Department of Public Service and the Department of Public Utilities. The funding authorized by this ordinance is for expenses that will occur during the winter months of 2021-2022.
The Department of Public Service and the Department of Public Utilities are responsible for snow and ice control and removal on the city's roadway system. In removing snow and ice, the departments use rock salt extensively in these operations. It is necessary for the Department of Public Service and the Department of Public Utilities to have the ability to purchase rock salt for the 2021-2022 winter season.
The Ohio Department of Transportation (ODOT) is in the process of establishing its annual cooperative purchasing contracts which allows participating government agencies to purchase rock salt from selected vendors. ODOT will determine the vendors for these contracts. ODOT will bid the cooperative purchasing contract as a cooperative contract for use by other governmental agencies, in accordance with Chapter 5513.01 (B) of the Ohio Revised Code.
In an effort to clarify the rules for participation in the joint purchasing agreement, the Ohio Department of Transportation now requires additional language be approved. That language is included in this ordinance in order to ensure the Department of Public Service and the Department of Public Utilities are compliant with all Ohio Department of Transportation purchasing rules and regulations for participating in the joint purchasing effort.
2. FISCAL IMPACT
$1,760,000.00 is budgeted and available in the Department of Public Service Municipal Motor Vehicle License Tax Fund. $91,520.00 is budgeted and available in the Sewerage System, Water Systems, and Electricity Systems Operating Funds.
3. EMERGENCY DESIGNATION
These departments request emergency designation due to the unusually short period of time the Ohio Department of Transportation is allowing for municipalities to submit agreements and legislation authorizing participation.
Title
To authorize the Director of the Department of Finance and Management to enter into a contract with the Ohio Department of Transportation (ODOT) and yet to be named vendors for the purchase of rock salt based on the terms of a cooperative purchase contract to be established by the Ohio Department of Transportation; to authorize the Director of Finance and Management to establish purchase orders for rock salt; to authorize the expenditure of up to $1,760,000.00 from the Municipal Motor Vehicle License Tax Fund, up to $22,880.00 from the Sewerage Systems Operating Fund, up to $64,240.00 from the Water Systems Operating Fund; and up to $4,400.00 from the Electricity Systems Operating Fund for the purchase of rock salt; to authorize the Director of Finance and Management to associate all General Budget reservations resulting from this ordinance with the appropriate Contract Purchase Agreement for rock salt; and to declare an emergency. ($1,851,520.00)
Body
WHEREAS, the Department of Public Service and the Department of Public Utilities are responsible for snow and ice control and removal on the city's roadway system; and
WHEREAS, rock salt is used in this operation; and
WHEREAS, winter and summer Cooperative Purchasing Contracts will be established by the Ohio Department of Transportation (ODOT) for use by the state's public entities for the option to purchase rock salt for the 2021-2022 winter season; and
WHEREAS, in an effort to clarify the rules for participation in the joint purchasing agreement the Ohio Department of Transportation is now requiring additional language be approved; and
WHEREAS, that language is included in this ordinance in order to ensure the Department of Public Service and the Department of Public Utilities are compliant with all Ohio Department of Transportation purchasing rules and regulations for participating in the joint purchasing effort; and
WHEREAS, the City of Columbus (hereinafter referred to as the “Political Subdivision”) hereby submits this written agreement to participate in the Ohio Department of Transportation’s (ODOT) annual road salt bid in accordance with Ohio Revised Code 5513.01(B) and hereby agrees to all of the following terms and conditions in its participation of the ODOT road salt contract:
WHEREAS, the Political Subdivision hereby agrees to be bound by all terms and conditions established by ODOT in the road salt contract and acknowledges that upon of award of the contract by the Director of ODOT it shall be bound by all such terms and conditions included in the contract; and
WHEREAS, the Political Subdivision hereby acknowledges that upon the Director of ODOT’s signing of the road salt contract, it shall effectively form a contract between the awarded salt supplier and the Political Subdivision; and
WHEREAS, the Political Subdivision agrees to be solely responsible for resolving all claims or disputes arising out of its participation in the ODOT road salt contract and agrees to hold the Department of Transportation harmless for any claims, actions, expenses, or other damages arising out of the Political Subdivision’s participation in the road salt contract; and
WHEREAS, the Political Subdivision’s electronic order for Sodium Chloride (Road Salt) will be the amount the Political Subdivision agrees to purchase from its awarded salt supplier at the delivered bid price per ton awarded by the Director of ODOT; and
WHEREAS, the Political Subdivision hereby agrees to purchase a minimum of 90% of its electronically submitted salt quantities from its awarded salt supplier during the contract’s effective period; and
WHEREAS, the Political Subdivision hereby agrees to place orders with and directly pay the awarded salt supplier on a net 30 basis for all road salt it receives pursuant to ODOT salt contract; and
WHEREAS, the Political Subdivision acknowledges that should it wish to rescind this participation agreement it will do so by written, emailed request by no later than Friday, April 30 by 5:00 p.m. The written, emailed request to rescind this participation agreement must be received by the ODOT Office of Contract Sales, Purchasing Section email: Contracts.Purchasing@dot.ohio.gov <mailto:Contracts.Purchasing@dot.ohio.gov> by the deadline. The Department, upon receipt, will respond that it has received the request and that it has effectively removed the Political Subdivision’s participation request. Furthermore, it is the sole responsibility of the Political Subdivision to ensure ODOT has received this participation agreement as well as the receipt of any request to rescind this participation agreement. The Department shall not be held responsible or liable for failure to receive a Political Subdivision’s participation agreement and/or a Political Subdivision’s request to rescind its participation agreement.
WHEREAS, it is necessary to authorize the Director of Finance and Management to enter into a contract with ODOT, to participate in the cooperative purchasing contract for the purchase of rock salt; and
WHEREAS, it is necessary to authorize the Director of Finance and Management to enter into a contract with ODOT's selected vendors, once said vendors are determined, for the purchase of rock salt; and
WHEREAS, it is necessary to authorize the Director of Finance and Management to establish purchase orders for the purchase of rock salt; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Service and the Department of Public Utilities, to authorize the Director of Finance and Management to associate all General Budget Reservations resulting from this ordinance with the appropriate Contract Purchase Agreements for Rock Salt; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service and the Department of Public Utilities in that it is immediately necessary to authorize the Director of Finance and Management to participate in the cooperative purchasing contract for rock salt due to the unusually short period of time the Ohio Department of Transportation allows for municipalities to submit agreements and legislation authorizing participation; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Finance and Management is authorized, in the name of the City of Columbus, to participate in the Ohio Department of Transportation cooperative purchasing contracts for the purchase of road salt, machinery, material, supplies, or other articles which the Department has entered into pursuant to Ohio Revise Code Section 5513.01 (B).
SECTION 2. That the Director of Finance and Management is hereby authorized to agree, in the name of the City of Columbus, to be bound by all terms and conditions as the Director of the Ohio Department of Transportation prescribes for the purchase of rock salt from the ODOT cooperative agreement.
SECTION 3. That the Director of Finance and Management is hereby authorized to agree, in the name of the City of Columbus, to directly pay vendors, under each such cooperative purchasing contract of the Ohio Department of Transportation in which the City of Columbus participates, for items it receives pursuant to the contract.
SECTION 4. That the expenditure of $1,851,520.00 or so much thereof as may be needed, be and hereby is authorized to be expended per the accounting codes in the attachment to the ordinance.
SECTION 5. That the Director of Finance and Management be and is hereby authorized to associate all General Budget Reservations resulting from this ordinance with the appropriate Contract Purchase Agreements for the purchase of Rock Salt from established, pending and future universal term and state contracts.
SECTION 6. That the City of Columbus (hereinafter referred to as the “Political Subdivision”) hereby submits this written agreement to participate in the Ohio Department of Transportation’s (ODOT) annual road salt bid in accordance with Ohio Revised Code 5513.01(B) and hereby agrees to all of the following terms and conditions in its participation of the ODOT road salt contract:
a. The Political Subdivision hereby agrees to be bound by all terms and conditions established by ODOT in the road salt contract and acknowledges that upon award of the contract by the Director of ODOT it shall be bound by all such terms and conditions included in the contract; and
b. The Political Subdivision hereby acknowledges that upon the Director of ODOT’s signing of the road salt contract, it shall effectively form a contract between the awarded salt supplier and the Political Subdivision; and
c. The Political Subdivision agrees to be solely responsible for resolving all claims or disputes arising out of its participation in the ODOT road salt contract and agrees to hold the Department of Transportation harmless for any claims, actions, expenses, or other damages arising out of the Political Subdivision’s participation in the road salt contract; and
d. The Political Subdivision’s electronic order for Sodium Chloride (Road Salt) will be the amount the Political Subdivision agrees to purchase from its awarded salt supplier at the delivered bid price per ton awarded by the Director of ODOT; and
e. The Political Subdivision hereby agrees to purchase a minimum of 90% of its electronically submitted salt quantities from its awarded salt supplier during the contract’s effective period; and
f. The Political Subdivision hereby agrees to place orders with and directly pay the awarded salt supplier on a net 30 basis for all road salt it receives pursuant to ODOT salt contract; and
g. The Political Subdivision acknowledges that should it wish to rescind this participation agreement it will do so by written, emailed request by no later than Friday, April 30 by 5:00 p.m. The written, emailed request to rescind this participation agreement must be received by the ODOT Office of Contract Sales, Purchasing Section email: Contracts.Purchasing@dot.ohio.gov <mailto:Contracts.Purchasing@dot.ohio.gov> by the deadline. The Department, upon receipt, will respond that it has received the request and that it has effectively removed the Political Subdivision’s participation request. Furthermore, it is the sole responsibility of the Political Subdivision to ensure ODOT has received this participation agreement as well as the receipt of any request to rescind this participation agreement. The Department shall not be held responsible or liable for failure to receive a Political Subdivision’s participation agreement and/or a Political Subdivision’s request to rescind its participation agreement.
SECTION 7. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 8. 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 9. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 10. 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.