Explanation
BACKGROUND: This ordinance waives the provisions of Chapter 329 of the Columbus City Code and authorizes the Director of Public Utilities to modify an existing contract, EL-004767, with The Erora Group to continue to provide power supply planning and related services for the Division of Power and Water. The modification will extend the contract an additional year and increase the consultant's hourly rate and the total amount of the contract. The modification will also reflect the consultant's name change from The Erora Group to MDL Holding Company, LLC. It is necessary to waive the provisions of Chapter 329 of the Columbus City Code for this modification as the term of the existing contract ends December 31, 2006 and did not provide for an extension.
Amount of additional funds to be expended: $90,000.00
Reasons additional goods/services could not be foreseen:
Due to conditions set forth in the negotiated purchase power contract with American Electric Power it will be necessary to bid for 25% of our load requirements in 2007 and 50% in 2008, therefore, the division will continue to need professional power supply planning services. This modification will provide funding to continue services to assist the city in preparing for the next purchase power bid as well as other power supply planning services as specified in the contract during 2007. Negotiation of the terms of the new purchase power agreement were extremely complex and the consultant has unique knowledge of the divisions requirements. It is in the best interests of the City to allow continuation of the contract for services. The term of the contract will be extended from December 31, 2006 through December 31, 2007.
Reasons other procurement processes are not used: The existing contract is based upon the lowest responsive and responsible bid received and opened on August 4, 2004. Since the consultant assisted the division in preparing the proposal for purchased power and contract negotiations and is familiar with the terms of the purchase power contract and the division's operations, it would not be feasible or cost effective to start over with a new consultant.
How cost of modification was determined:
Estimated number of hours required at an hourly rate of $200 per hour.
Emergency action is requested in order that the power supply planning services may continue without interruption. These services are critical to the daily operations of the Division of Power and Water at this time during the start of the new power supply contract with AEP and to prepare for future power needs.
Contract Compliance Number: 611339486
FISCAL IMPACT: $50,000 was budgeted in the 2006 electricity operating fund for professional services relating to purchase power. Although, this expenditure exceeds the budgeted amount, there are sufficient funds in the current electricity operating budget for this expenditure. $112,500 was encumbered in 2004 for said contract and there were no encumbered amounts in 2005 for this type of service.
Title
To authorize the Director of Public Utilities to modify an existing contract with The Erora Group to reflect the consultant's name change to MDL Holding Company, LLC, and to extend and increase the contract for power supply planning and related services for the Division of Power and Water; to waive competitive bidding provisions of the Columbus City Code; to authorize the expenditure of $90,000.00 from the Electricity Operating Fund; and to declare an emergency. ($90,000.00)
Body
WHEREAS, power supply planning and related services are required by the Division of Power and Water in order to secure the best possible power supply and subsequent rates for its electric customers; and
WHEREAS, Contract Number EL004767, with The Erora Group, was authorized by Ordinance Number 1855-2004, passed November 22, 2004, for power supply planning and related services; and
WHEREAS, The Erora Group has changed its name to MDL Holding company, LLC; and
WHEREAS, it is immediately necessary to extend and increase the existing contract with MDL Holding company, LLC, formerly The Erora Group, to provide funding for power supply planning and related services needed for the daily operation of the Division of Power and Water; and
WHEREAS, the conditions set forth in the negotiated purchase power contract with American Electric Power will make it necessary to bid for load requirements during 2007 and the division will continue to need the consultant's professional power supply planning services; and
WHEREAS, the original contract had no provision to extend the contract beyond December 31, 2006, it is necessary to waive provisions of Chapter 329 of the Columbus City Code for this modification; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power and Water, in that it is immediately necessary to modify an existing contract for power supply planning services to ensure that these critical services are uninterrupted, and 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 Director of Public Utilities be and is hereby authorized to modify Contract Number EL004767 by changing the vendor name from The Erora Group to MDL Holding Company, LLC, extending the contract through December 31, 2007, and increasing the amount of the contract by $90,000.00.
SECTION 2. That the provisions of Chapter 329 of Columbus City Codes, 1959, are hereby waived for aforesaid contract modification.
SECTION 3. That to pay the cost of the aforesaid contract modification, the expenditure of $90,000.00, or so much thereof as may be needed, is hereby authorized from Electricity Operating Fund 550, Division No. 60-07, OCA Code 600830, Object Level Three 3336.
SECTION 4. 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.