Explanation
BACKGROUND: As authorized by Ordinance Number 0837-2006, passed May 22, 2006, the City of Columbus, Department of Public Utilities, Division of Power and Water, through the request for Proposal (RFP) process and waiving the provisions of Columbus City Code Article 329.14, negotiated with suppliers to provide a full-requirements contract for capacity and energy system needs at a fixed-price for power. Six proposals were received. It was determined that American Electric Power Service Corporation (AEPSC) met all of our requirements and offered the lowest-priced and most responsive proposal. Upon acceptance of the negotiated price and terms, a contract, DL012676, was established on October 26, 2006, in the amount of $1.00.
This legislation will authorize the Director of Public Utilities to obtain capacity and energy from AEPSC based upon the agreed upon terms and conditions of the contract and authorizes the expenditure in an amount estimated to cover capacity and energy charges during the interim period between the start of the contract, January 1, 2007, and the passage of the 2007 budget. Upon passage of the budget, additional funding will be requested to fund the needs for the remainder of 2007.
Emergency action is requested in order that the encumbering document may be established and funding in place so that service may begin January 1, 2007 and payments may be made in compliance with the terms of the contract.
Contract Compliance Number: 134922640.
FISCAL IMPACT: $40,118,505 was budgeted in the 2006 Electricity Operating Fund for purchase power. This expenditure will exceed the budgeted amount, therefore, legislation is being processed to transfer appropriations within the Electricity Operating Fund to meet this need.
Title
To authorize the Director of Public Utilities to obtain capacity and energy for the Division of Power and Water in accordance with terms and conditions of the contract with American Electric Power Service Corporation (AEPSC) ; to authorize the expenditure of $4,312,900.00; and to declare an emergency. ($4,312,900.00)
Body
WHEREAS, Ordinance Number 0837-2006, passed May 22, 2006, waived the provisions of Columbus City Code Article 329.14, to authorize the Director of Public Utilities to negotiate and enter into contract for purchase power; and
WHEREAS, six proposals were received and through negotiations it was determined the American Electric Power Service Corporation (AEPSC) met all requirements and offered the lowest-priced and responsive proposal; and
WHEREAS, it is immediately necessary to provide funding for the purchase of capacity and energy prior to the expiration of the current contract; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Power and Water, of the Department of Public Utilities, in that it is immediately necessary to obtain and provide funding for capacity and energy for the 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 Director of Public Utilities be and is hereby authorized to obtain capacity and energy for the Division of Power and Water in accordance with terms and conditions of the contract with American Electric Power Service Corporation (AEPSC).
SECTION 2. That the expenditure of $4,312,900.00, or so much thereof as may be necessary, is hereby authorized from the Electricity Operating Fund 550, Division 60-07, OCA 600830, Object Level Three 2233.
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.