Explanation
Background: This ordinance authorizes the City Auditor to set up a certificate in the amount of $825,000.00 for the purchase of equipment and vehicles for the Recreation and Parks Department. These purchases will be made through the City of Columbus Purchasing Office.
The City of Columbus Purchasing Office previously obtained bids and awarded contracts for the purchase of equipment and vehicles in compliance with the relevant provisions of Columbus City Code Chapter 329. They were authorized by prior Ordinances 0924-2021, 0722-2022, and 1331-2022. They all authorized the purchase of equipment and vehicles, encumbering funds on Auditor’s Certificates totaling $5,168,656.00, based on estimated expenditures for those purchases. A number of supply chain issues and economic factors have caused increased costs for distributors and longer lead times for delivery. The actual bids and awards have exceeded the amount of funding authorized from those prior ordinances. Based on actual and pending awards, there is a need for an estimated $600,000.00 to enter into the remaining contracts for all equipment specified in prior ordinances listed above.
Furthermore, the Purchasing Office recognizes the need to identify contingency funding and/or modify contracts to pay for cost increases if and when the awarded vendor requests additional funding and can provide the required documentation to the Purchasing Office to justify the requested price increase after award. The awarded vendor must demonstrate that the request for price increase to the City and subsequent contract modification is directly attributed to unforeseen acquisition cost increases from the manufacturer or distributor at some point in time between entering into contract with the City and before delivering the equipment to the City. Acceptable documentation must include cost estimates or quotes at the time of procurement and new cost estimates or quotes. Actual acquisition costs from the manufacturer or distributor at time of purchase can also be used as acceptable documentation. $225,000.00 is requested for contingency funding to modify contracts as needed in the future. The contingency funding represents approximately 5% of contract pricing for all equipment listed in the previous ordinances noted above and that is still pending award and/or delivery.
It may be necessary to increase costs for the previously authorized contracts rather than pursue new procurement to ensure timely delivery of equipment. Additional delays in procurement would lead to delays in delivery from manufacturers or distributors and will likely lead to increase costs for the City. Recreation and Parks has an immediate need to provide equipment for staff to maintain City facilities, parks, and trees. This ordinance will authorize the Director of Finance and Management to modify all contracts authorized by the previous ordinances mentioned in order to purchase of equipment on behalf of the Recreation and Parks Department. The City is experiencing extremely long lead times for the delivery of equipment, vehicles, and parts and this ordinance will allow these purchases to be completed in the most efficient manner possible.
Emergency Justification: Emergency action is requested in order to have equipment and vehicles delivered and available as soon as possible in order to allow the Recreation and Parks Department to continue performing necessary work. The duties supported by this equipment and vehicles has been greatly impacted by delays in the delivery of new equipment and vehicles caused by the global supply chain issues. This ordinance is establishing the funding required for the equipment and vehicles being purchased. Equipment will be ordered immediately upon the approval of this ordinance and resulting purchase orders. The City is seeing extremely long lead times on most equipment and vehicles.
Benefits to the Public: Trees, parkland, sports fields, and golf courses maintained by the city enhance the quality of life of our citizens. The equipment will allow for the continued upkeep of these amenities.
Community Input Issues: The community has expressed a desire for accessible and well-maintained parkland, facilities, golf courses, and sports fields.
Area(s) Affected: Citywide (99)
Master Plan Relation: This Auditor’s Certificate and resulting purchases support the Department’s Master Plan by helping to ensure that trees, facilities, golf courses, sports fields, and parks remain accessible, safe, updated, user friendly, and well maintained.
Fiscal Impact: The expenditure of $5,168,656.00 was legislated for the purchase of equipment and vehicles by Ordinances 0924-2021, 0722-2022, and 1331-2022. This ordinance will provide funding that will modify the previously authorized amount by $825,000.00. The aggregate total amount authorized for the purchase of equipment and vehicles by these ordinances is $5,993,656.00. $825,000.00 is budgeted and available from within the Recreation and Parks Operating Fund 2285 and Permanent Improvement Fund 7747 to meet the financial obligations of these various expenditures.
Title
To authorize and direct the City Auditor to set up a certificate in the amount of $825,000.00 for the purchase of equipment and vehicles for the Recreation and Parks Department; to authorize the increase of $825,000.00 to the total amount authorized for the purchase of equipment and vehicles authorized by Ordinances 0924-2021, 0722-2022, and 1331-2022; to authorize the Director of Finance and Management to modify contracts as needed for the purchase of equipment on behalf of the Recreation and Parks Department detailed in Ordinances 0924-2021, 0722-2022, and 1331-2022; to authorize the appropriation of $223,350.00 within the Recreation and Parks Permanent Improvement Fund; to authorize the transfer of $600,000.00 within the Recreation and Parks Operating Fund; to authorize the transfer of $223,350.00 within the Recreation and Parks Permanent Improvement Fund; to authorize the amendment of the 2022 Capital Improvements Budget; to authorize the expenditure of $825,000.00 from the Recreation and Parks Operating Fund and Permanent Improvement Fund; and to declare an emergency. ($825,000.00)
Body
WHEREAS, it is necessary that the City Auditor set up a certificate in the amount of $825,000.00 for the purchase of equipment and vehicles for the Recreation and Parks Department; and
WHEREAS, it is necessary that the total amount authorized for the purchase of equipment and vehicles authorized by Ordinances 0924-2021, 0722-2022, and 1331-2022 be increased by $825,000.00; and
WHEREAS, funding is budgeted and available from within the Recreation and Operating Fund 2285 and Permanent Improvement Fund 7747 to meet the financial obligations of these various expenditures; and
WHEREAS, the Purchasing Office previously solicited competitive bids to acquire various equipment for the Recreation and Parks Department in accordance with the relevant provisions of the Columbus City Code, Chapter 329; and
WHEREAS, it is necessary to authorize the Director of Finance and Management to modify contracts as needed for the purchase of equipment on behalf of the Recreation and Parks Department detailed in Ordinances 0924-2021, 0722-2022, and 1331-2022 in accordance with City Code Chapter 329; and
WHEREAS, brass tags for equipment to be replaced will be submitted to the Division of Fleet Management, and all specifications for equipment to be purchased and brass tagged will be approved by the Division of Fleet Management prior to acquisition;
WHEREAS, it is necessary to authorize the appropriation of $223,350.00 within the Recreation and Parks Permanent Improvement Fund 7747; and
WHEREAS, it is necessary to authorize the transfer of $600,000.00 within the Recreation and Parks Operating Fund 2285; and
WHEREAS, it is necessary to authorize the transfer of $223,350.00 within the Recreation and Parks Permanent Improvement Fund 7747; and
WHEREAS, it is necessary to authorize the amendment of the 2022 Capital Improvements Budget Ordinance 1896-2022 in order to provide sufficient budget authority for this and future projects; and
WHEREAS, it is necessary to authorize the expenditure of $825,000.00 from the Recreation and Parks Operating Fund 2285 and Permanent Improvement Fund 7747; and
WHEREAS, an emergency exists in the usual daily operations of the Recreation and Parks Department in that it is immediately necessary to authorize additional funding to purchase equipment and vehicles in order to have equipment and vehicles delivered and available as soon as possible in order to allow the Recreation and Parks Department to continue performing necessary work, and the duties supported by these purchases have been greatly impacted by delays in the delivery of new equipment and vehicles caused by the global supply chain issues and the City is seeing extremely long lead times on most equipment and vehicles to order equipment immediately upon the approval of this ordinance; NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor is hereby authorized to set up a certificate in the amount of $825,000.00 for the purchase of equipment and vehicles for the Recreation and Parks Department.
SECTION 2. That the total amount authorized for the purchase of equipment and vehicles authorized by Ordinances 0924-2021, 0722-2022, and 1331-2022 is hereby authorized to be increased by $825,000.00.
SECTION 3. That the Director of Finance and Management is hereby authorized to modify contracts to increase funding as needed for the purchase of equipment on behalf of the Recreation and Parks Department previously authorized by Ordinances 0924-2021, 0722-2022, and 1331-2022, only if the awarded vendor requests additional funding and can provide the required documentation to the Purchasing Office to justify the requested price increase after award.
SECTION 4. That the brass tags for equipment to be replaced will be submitted to the Division of Fleet Management, and all specifications for equipment to be purchased and brass tagged will be approved by the Division of Fleet Management prior to acquisition.
SECTION 5. 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 6. 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 7. 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 8. That the appropriation of $223,350.00 is authorized within the Recreation and Parks Permanent Improvement Fund 7747 per the accounting codes in the attachment to this ordinance.
SECTION 9. That the transfer of $600,000.00 or so much thereof as may be needed, is hereby authorized within the Recreation and Parks Operating Fund 2285 per the account codes in the attachment to this ordinance.
SECTION 10. That the transfer of $223,350.00 or so much thereof as may be needed, is hereby authorized between projects within the Recreation and Parks Permanent Improvement Fund 7747 per the account codes in the attachment to this ordinance.
SECTION 11. That the 2022 Capital Improvements Budget Ordinance 1896-2022 is hereby amended as follows in order to provide sufficient budget authority for this ordinance and future projects.
Fund / Project / Project Name / Current / Change / Amended
Fund 7747; P747999-100000; Unallocated Balance (Carryover) / $437,254 / $75,618 / $512,872 (to match cash)
Fund 7747; P747999-100000; Unallocated Balance (Carryover) / $512,872 / ($223,350) / $289,522
Fund 7747; P510040-100000; Recreation and Parks Equipment (Carryover) / $1,650 / $223,350 / $225,000
SECTION 12. That the expenditure of $825,000.00 or so much thereof as may be necessary to pay the cost thereof, be and is hereby authorized from the Recreation and Parks Operating Fund 2285 and Permanent Improvement Fund 7747 in object class 06 Capital Outlay per the accounting codes in the attachment to this ordinance.
SECTION 13. That this Council hereby recognizes that this ordinance does not identify specific contractors or vendors for the expenditure purposes authorized herein and hereby delegates sole and final contracting decisions relative to the determination of lowest, best, most responsive and most responsible vendor(s) to the Director of Finance and Management and the Director of Recreation and Parks.
SECTION 14. 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 (10) days after passage if the Mayor neither approves nor vetoes the same.