Explanation
BACKGROUND: The City of Columbus has an agreement with the State of Ohio, Department of Natural Resources allowing the Division of Power and Water to withdraw raw water from Alum Creek Reservoir storage spaces #1 and #2 and to pay the State a prorated share of the operation and maintenance costs. This agreement was entered into by the authority of Ordinance 1663-71, passed on November 15, 1971, and executed December 30, 1971. Modification No. 1 to the original contract between the State and the City was authorized by the City in Ordinance No. 1145-93, passed May 24, 1993, and did authorize the Director of Public Utilities to modify the original contract for water supply from Alum Creek Reservoir, Ohio and was effective July 7, 1993. It is necessary to modify this contract to comply as ordered, adjudged, and decreed in the settlement agreement of the United States District Court, Case No. C2-90-0855 between the City of Columbus and Del-Co Water Company, Inc. signed November 12, 1992. This modification assigns an additional two million gallons of water per day, and associated obligations, from the City's original thirty-five million gallon per day allocation, to Del-Co Water Company, Inc. for a savings of more than $1.7 M over the remaining 32 year term of the original contract. This modification does not result in the procurement of additional goods or services.
FISCAL IMPACT: A savings of more than $1.7M over the remaining 32 year term of the contract will be realized.
Title
To authorize the Public Utilities Director to enter into a planned modification of the contract with the State of Ohio for water supply from Alum Creek Reservoir.
Body
WHEREAS, the original contract between the State of Ohio and the City of Columbus, Ohio was authorized by the City in Ordinance No. 1663-71, passed November 15, 1971, and did authorize the Director of Public Utilities to enter into a contract for water supply from Alum Creek Reservoir, Ohio, and
WHEREAS, the said contract was executed December 30, 1971, and
WHEREAS, Modification No. 1 to the original contract between the State and the City was authorized by the City in Ordinance No. 1145-93, passed May 24, 1993, and did authorize the Director of Public Utilities to modify the original contract for water supply from Alum Creek Reservoir, Ohio, and
WHEREAS, the said modification was effective July 7, 1993, and
WHEREAS, it is necessary to modify this contract to comply as ordered, adjudged, and decreed in the settlement agreement of the United States District Court, Case No. C2-90-0855 between the City of Columbus and Del-Co Water Company, Inc. signed November 12, 1992, and
WHEREAS, this modification assigns an additional two million gallons of water per day, and associated obligations, from the City's original thirty-five million gallon per day allocation, to Del-Co Water Company, Inc. for a savings of more than $1.7 M over the remaining 32 year term of the original contract, and
WHEREAS, it is necessary to authorize the Director of Public Utilities to modify said contract for water supply from Alum Creek Reservoir for the preservation of public health, peace, property and safety, now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. The Director of Public Utilities be and is hereby authorized to enter into a planned modification of the contract with the State of Ohio in the amount of an additional two million gallons of water per day, and associated obligations, for water supply from Alum Creek Reservoir, terms and conditions of which are on file at the Division of Power and Water.
Section 2. A savings of more than $1.7M over the remaining 32 year term of the contract will be realized.
Section 3. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.