Explanation
In 2004 the City Attorney entered into a contract with McNees, Wallace & Nurick LLC ("McNees"), a law firm knowledgeable in electric purchase power issues, to assist in drafting and negotiating the purchase power agreement with AEP which currently provides the City's power needs through May 31, 2012. In May of 2010, under a settlement to resolve violations of the Clean Air Act requirements, the U.S. Environmental Protection Agency(EPA) and the U.S. Justice Department announced that American Municipal Power ("AMP") would be permanently retiring the Richard H. Gorsuch Generating Station by Dec. 31, 2012. The legal services and expertise of McNees are now further needed to review the City's obligation under the Master Service Agreement and the City's existing Gorsuch Power Contract with American Municipal Power ("AMP"), the Efficiency Smart Power Plant (ESPP) Agreement options, among other issues pertaining to power in the Division of Power and Water. It is now necessary to increase the City's existing contract with McNees Wallace & Nurick LLC by $50,000 bringing the total contract amount to $255,000.
Contract Compliance Number: 231256003, Expires 05/18/11
FISCAL IMPACT: Funding for this expenditure will come from the Division of Electricity Operating Fund. $50,000.00 was budgeted for these services in the 2010 budget.
EMERGENCY JUSTIFICATION: Emergency is requested to allow the City and American Municipal Power (AMP) to enter into an "Efficiency Smart Power Plant Agreement" by September 30, 2010, as directed by a consent order from the court.
Title
To authorize the City Attorney's Office to modify and extend the contract with McNees, Wallace & Nurick LLC to review the City's obligation under the Master Service Agreement and the City's existing Gorsuch Power Contract with American Municipal Power ("AMP"), the Efficiency Smart Power Plant (ESPP) Agreement options, among other issues pertaining to power in the Division of Power and Water, and to authorize the expenditure of $50,000.00 from the Division of Electricity Operating Fund and to declare an emergency. ($50,000.00)
Body
WHEREAS, in 2004, the City Attorney entered into a contract with McNees, Wallace & Nurick LLC, a law firm knowledgeable in electric purchase power issues, to provide specialized legal services for the Division of Power and Water (City) relating to the Power Purchase and Sale Agreement between the City and Constellation Commodities Group(Constellation); and
WHEREAS, McNees, Wallace & Nurick LLC subsequently, assisted the City in the drafting and negotiating a purchase power agreement with AEP which currently provides the City's power needs through May 31, 2012; and
WHEREAS, Ordinance 0629-2009, passed on May 11, 2009 authorizes the Director of Public Utilities to negotiate and enter into contract for purchase power on behalf of the Division of Division of Power and Water for years 2012 to 2014; and
WHEREAS, it is estimated that an additional $50,000.00 is presently needed to cover McNees, Wallace & Nurick LLC's specialized legal services to determine the City's obligations under other existing agreements with AMP, the best "ESPP" option for the City to take, to analyze the impacts on various other agreements the City has with other entities for purchase power, including AEP, and other power issues in the Division of Power and Water; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division Sewerage and Drainage, in that it is necessary to authorize the Cit Attorney to extend its existing contract with McNees, Wallace & Nurick LLC for specialized legal services pertaining to purchase power, so that there will be no delay in the aforementioned project for the immediate preservation of the public peace, property, health and safety; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Attorney is hereby authorized to modify an existing contract with McNees, Wallace & Nurick LLC, in the amount of $50,000.00, for special legal counsel services necessary to determine the City's obligations under other existing agreements with AMP, the best "ESPP" option for the City to take, and to analyze the impacts on various other agreements the City has with other entities for purchase power, including AEP, among other issues pertaining to power in the Division of Power and Water.
SECTION 2. That to pay the cost of the aforesaid contract modification, the expenditure of $50,000.00, or so much thereof as may be needed, is hereby authorized from the Division of Power and Water - Power, Division No. 60-07, Operating Fund 550, OCA 600830, Object Level Three 3324.
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 10 days after its passage if the Mayor neither approves nor vetoes the same. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.