City of Columbus - File #: 2215-2006

• File #: 2215-2006
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 11/27/2006
• In control: Utilities Committee
• On agenda: 1/22/2007
• Final action: 1/25/2007
• Title: To authorize the City Attorney's Office to modify and extend the contract with McNees, Wallace & Nurick LLC to provide legal service regarding issues related to the purchase of power for the Division of Power and Water for the years 2008 and 2009, and to authorize the expenditure of $50,000.00 from the Electricity Operating Fund. ($50,000.00)

Date	Ver.	Action By	Action	Result
1/25/2007	1	CITY CLERK	Attest
1/24/2007	1	MAYOR	Signed
1/22/2007	1	Columbus City Council	Approved	Pass
1/22/2007	1	COUNCIL PRESIDENT	Signed
12/11/2006	1	Columbus City Council	Read for the First Time
12/1/2006	1	Atty Drafter	Sent for Approval
12/1/2006	1	Auditor Reviewer	Reviewed and Approved
12/1/2006	1	CITY AUDITOR	Reviewed and Approved
12/1/2006	1	Atty Drafter	Sent for Approval
12/1/2006	1	CITY ATTORNEY	Reviewed and Approved
12/1/2006	1	Atty Drafter	Sent to Clerk's Office for Council
11/30/2006	1	Finance Reviewer	Reviewed and Approved
11/30/2006	1	FINANCE DIRECTOR	Reviewed and Approved
11/29/2006	1	UTILITIES DIRECTOR	Reviewed and Approved
11/29/2006	1	Utilities Reviewer	Reviewed and Approved
11/29/2006	1	Atty Drafter	Sent for Approval
11/28/2006	1	Atty Reviewer	Reviewed and Approved
11/28/2006	1	Atty Drafter	Sent for Approval
11/28/2006	1	Utilities Reviewer	Sent for Approval
11/27/2006	1	Atty Drafter	Sent for Approval

Explanation

BACKGROUND:  In 2004, the City Attorney entered into a contract with McNees, Wallace & Nurick LLC, a law firm knowledgeable in electric purchase power issues to provide specialized legal services for the Division of Electricity (City) relating to the Power Purchase and Sale Agreement between the City and Constellation Commodities Group (Constellation).  The Constellation contract expires on December 31, 2006 requiring the negotiation of a new purchase power agreement in 2006.  McNees, Wallace & Nurick LLC assisted in drafting and negotiating a purchase power agreement with AEP which provides 100% of the City's power needs for 2007.  However, in 2008 AEP will only provide 75% of the City's power and only 50% in 2009.  The Division of Power and Water will need to enter into new agreements to provide for the remaining 2008 and 2009 balances.  Therefore, it is necessary for the City Attorney's Office to modify, and extend the contract to provide legal service regarding issues related to the purchase of power for the Division of Power and Water for the years 2008 and 2009.

Contract Compliance Number: 231256003

FISCAL IMPACT:  Funding for this expenditure will come from the Electricity Operating Fund.

EMERGENCY JUSTIFICATION:  N/A

Title

To authorize the City Attorney's Office to modify and extend the contract with McNees, Wallace & Nurick LLC to provide legal service regarding issues related to the purchase of power for the Division of Power and Water for the years 2008 and 2009, and to authorize the expenditure of $50,000.00 from the Electricity Operating Fund.  ($50,000.00)

Body

WHEREAS,      in 2004, the City Attorney entered into a contract with McNees, Wallace & Nurick LLC, a law firm knowledgeable in electric purchase power issues to provide specialized legal services for the Division of Power and Water (City) relating to the Power Purchase and Sale Agreement between the City and Constellation Commodities Group(Constellation); and

WHEREAS,      McNees, Wallace & Nurick LLC assisted in drafting and negotiating a purchase power agreement with AEP which provides 100% of the City's power needs for 2007; and

WHEREAS,      in 2008 AEP will only provide 75% of the City's power and only 50% in 2009; and

WHEREAS,      the Division of Division of Power and Water will need to enter into new agreements to provide for the remaining 2008 and 2009 balances; and

WHEREAS,      it is estimated that an additional $50,000.00 is needed to cover the remaining specialized legal services regarding the evaluation of purchase power proposals and the negotiations of new purchase power agreements anticipated for 2008 and 2009; now, therefore:

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:

SECTION 1.      That the City Attorney is hereby authorized to modify an existing contract with McNees, Wallace & Nurick LLC, in an amount of $50,000.00, for special legal counsel service necessary to the evaluation of purchase power proposals related to the purchase of power for the Division of Power and Water for the years 2008 and 2009 and to assist in negotiating the terms and conditions of a purchase power contract.

SECTION 2.      That to pay the cost of the aforesaid contract modification, the expenditure of $50,000.00, or so much thereof as may be needed, is hereby authorized from the Division of Power and Water - Power, Division No. 60-07, Operating Fund 550, OCA 600830, Object Level Three 3336.

SECTION 3.      That this ordinance shall take effect and be in force from and after the earliest period allowed by law.