Explanation
BACKGROUND: This ordinance authorizes a modification of DL012676 with American Electric Power Service Corporation (AEPSC) for the purchase of capacity and energy for the Division of Power and Water in 2007.
Amount of additional funds to be expended: $49,000,000
Reasons additional goods/services could not be foreseen: The Department of Public Utilities, Division of Power and Water, entered into a contract for capacity and energy with American Electric Power Service Corporation (AEPSC) in 2006 based upon the lowest, responsive proposal offered. The original contract was established in the amount of $1.00 as authorized by Ordinance 0837-2006, passed May 22, 2006. Ordinance 2021-2006, passed December 4, 2006, authorized the initial funding in the amount of $4,312,900. It is now necessary to provide funding for capacity and energy required in 2007.
Reason other procurement processes are not used: The City of Columbus, Department of Public Utilities is obligated by contract to obtain capacity and energy from American Electric Power Service Corporation (AEPSC).
How cost of modification was determined: The modification is based upon estimated requirements for 2007 at rates as established in the existing contract.
Emergency action is requested in order that the encumbering document may be established and funding in place so that services may continue uninterrupted and payments can be made in compliance with the terms of the contract.
Contract Compliance Number: 134922640.
FISCAL IMPACT: This legislation is contingent upon the passage of the 2007 budget. The amount budgeted in the Electricity Operating Fund 550 for purchase power is $56,873,315. The total amount spent for purchase power in 2005 and 2006 was $39,054,452 and $37,677,109.56, respectively.
Title
To authorize the Director of Public Utilities to modify an existing contract with American Electric Power Service Corporation for capacity and energy for the Division of Power and Water; to authorize the expenditure of $49,000,000.00 from the Electricity Operating Fund; and to declare an emergency. ($49,000,000.00)
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, Contract DL012676 was established with American Electric Power Service Corporation (AEPSC) based upon the lowest responsive proposal received; and
WHEREAS, it is immediately necessary to provide funding for the purchase of capacity and energy required for the daily operation of the Division of Power and Water in 2007; 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 modify the existing contract with American Electric Power Service Corporation to 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 modify the existing contract with American Electric Power Service Corporation to obtain capacity and energy for the Division of Power and Water in accordance with terms and conditions of the contract.
SECTION 2. That the expenditure of $49,000,000.00, 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, for this contract modification.
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.