Explanation
BACKGROUND: This ordinance authorizes an increase of an existing contract with American Electric Power Service Corporation (AEPSC) for the purchase of capacity and energy for the Division of Power.
Amount of additional funds to be expended: $23,600,000.00
Reasons additional goods/services could not be foreseen: The Department of Public Utilities, Division of Power, 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 term of the contract is through May 2014. This legislation will authorize the funding for capacity and energy requirements in 2014.
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 2014 at rates as established in the existing contract.
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
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: 134922641, expires 03/01/2014.
FISCAL IMPACT: This legislation is contingent upon the passage of the 2014 operating budget, Ordinance #2731-2013. The amount budgeted in the Electricity Operating Fund 550 for purchase power is $55,700,000. The total amounts spent for purchase power in 2012 and 2013 were $63,858,428.40 and $58,512,594.79, 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; to authorize the expenditure of $23,600,000.00 from the Electricity Operating Fund; and to declare an emergency. ($23,600,000.00)
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 in 2014; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Power, 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 increase the existing contract with American Electric Power Service Corporation to obtain capacity and energy for the Division of Power in accordance with terms and conditions of the contract.
SECTION 2. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 3. That this modification is in accordance with Section 329.16 of the Columbus City Codes.
SECTION 4. That the expenditure of $23,600,000.00, 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 increase.
SECTION 5 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.