Explanation
BACKGROUND: This ordinance authorizes the Public Utilities Director to enter into a contract with The Erora Group for professional services for the Division of Electricity. The Division requires professional services in 2004 to secure power supply for 2006 and beyond and to support electric transmission restructuring negotiations. Procurement of professional expertise for power supply planning, technical support, risk management, rate design and overhead study services are required by the Division in order to secure the best possible power supply and subsequent rates for its electric customers.
In accordance with Section 329.14 of the Columbus City Code, 1959, notification was sent to Columbus City Council prior to initiating the selection process for the required services. A Request for Proposals (RFP), SA001210, was advertised in the City Bulletin and eleven companies (all majority-owned businesses) were sent the proposal documents. Six proposals (all majority-owned businesses) were received and opened by the Public Utilities Director on August 4, 2004.
The Erora Group received the highest ranking based upon an evaluation committee's ranking of the offers based upon the criteria specified in the RFP: qualifications of staff, current workload and availability of personnel, project approach, and past experience. Negotiations with The Erora Group determined that the cost for the scope of services will not exceed $112,500.00. The Erora Group's contract compliance number is 611339486.
Emergency action is requested due to the necessity to proceed promptly into the first phase of a new transmission structure that occurred on October 1, 2004 as a result of FERC restructuring of electricity markets.
FISCAL IMPACT: $120,000.00 was budgeted in the Division of Electricity Operating Fund for these services. There were no similar expenditures in 2002 or 2003.
Title
To authorize the Public Utilities Director to enter into a contract with The Erora Group, LLC for professional services for power supply planning and related services for the Division of Electricity; to authorize the expenditure of $112,500.00 from the Division of Electricity Operating Fund; and to declare an emergency. ($112,500.00)
Body
WHEREAS, the Division of Electricity requires professional services in 2004 to secure power supply for 2006 and beyond and to support electric transmission restructuring negotiations; and
WHEREAS, procurement of professional expertise for power supply planning, technical support, risk management, rate design and overhead study services are required by the Division of Electricity in order to secure the best possible power supply and subsequent rates for its electric customers; and
WHEREAS, a Request for Proposals (RFP) was advertised in the City Bulletin and six proposals were received and opened by the Public Utilities Director on August 4, 2004; and
WHEREAS, The Erora Group was selected for award based upon evaluation criteria as specified in the RFP; and
WHEREAS, emergency action is requested due to the necessity to proceed promptly into the first phase of a new transmission structure that occurred on October 1, 2004 as a result of FERC restructuring of electricity markets; and
WHEREAS, en emergency exists in the usual daily operation of the Department of Public Utilities, Division of Electricity, in that it is immediately necessary to enter into contract to procure professional services for power supply planning and related services for the immediate preservation of 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 Public Utilities Director is hereby authorized to enter into a contract, in the amount of $112,500.00, for professional services for power supply planning and related services for the Division of Electricity.
SECTION 2. That the expenditure of $112,500.00, or so much thereof as may be needed, is hereby authorized from the Division of Electricity, Dept./Div. No. 60-07, Electricity Operating Fund 550, OCA Code 600700, Object Level Three 3336.
SECTION 3. 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.