Explanation
BACKGROUND: The Department of Public Utilities, Division of Power and Water, and Columbus Southern Power dba American Electric Power (AEP) own and operate electricity distribution systems throughout the City of Columbus and through a joint use agreement have attached their facilities to poles owned by the other party.
Ordinance 0944-2008, passed July 7, 2008, authorized the Director of Public Utilities to execute a construction contract with U.S. Utility Contractor Co. for the first phase of a North High Street Circuit Conversion Project for the Division of Power and Water. There are approximately 152 total poles affected by the North High Street Circuit Conversion Project, Phases I and II. In preparation for construction on Phase II of the North High Street Circuit Conversion Project, there are approximately seventy (70) poles, owned by AEP, which must be relocated. AEP is the sole-source provider for this service since they are the owner of the poles in question. Therefore, the provisions of Columbus City Code Section 329, as it relates to competitive bidding, are requested to be waived. AEP's contract compliance number is 31-4154203, expiration 11/26/09 (Majority).
Fiscal Impact: This legislation includes a transfer of funds from the Electricity Reserve Fund to the Voted Street Lighting and Electricity Distribution Improvement Fund as a temporary measure until such time as the proceeds from a bond sale can be made available.
Title
To authorize the Director of Public Utilities to enter into an agreement to reimburse Columbus Southern Power dba American Electric Power (AEP) for the cost to transfer and/or rearrange electrical and communication facilities attached to poles owned by AEP as may be necessary to complete the North High Street Phase II Circuit Conversion Project; to waive the provisions of the Columbus City Code relating to competitive bidding; to authorize the expenditure of $130,281.17 from the Voted Street Lighting and Electricity Distribution Improvement Fund; for the Division of Power and Water. ($130,281.17)
Body
WHEREAS, the Department of Public Utilities, Division of Power and Water, and Columbus Southern Power dba American Electric Power (AEP) own and operate electric distribution systems throughout the City of Columbus; and
WHEREAS, through a joint use agreement, the City and AEP have attached their facilities to poles owned by the other party; and
WHEREAS, Ordinance Number 0944-2008, passed July 7, 2008, authorized the Director of Public Utilities to execute a construction contract for the North High Street Circuit Conversion Project; and
WHEREAS, to complete the aforesaid project, in all its phases, it is necessary to coordinate the transfer and/or rearrangement of electrical and communication facilities attached to poles owned by AEP to meet AEP clearance standards; and
WHEREAS, AEP, as owner and operator of said poles, is the sole provider for the required services and therefore the competitive bidding provisions of Columbus City Code Section 329 are being waived; and
WHEREAS, it is necessary for this Council to authorize the City Auditor to transfer funds from the Electricity Reserve Fund to the Voted Street Lighting and Electricity Distribution Improvement Fund; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the construction of the Project described in this Ordinance (collectively, the "Project"), and
WHEREAS, it has become necessary in the usual daily operation of the Division of Power and Water, Department of Public Utilities, to authorize the Director of Public Utilities to enter into a contract with AEP for the North High Street Circuit Conversion Project, to authorize the appropriation and transfer of funds from the Electricity Reserve Fund to the Voted Street Lighting and Electricity Distribution Improvement Fund; for the preservation of the public health, peace, property and safety; now therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That from the unappropriated monies in the Electricity Reserve Fund, and from all monies estimated to come into said fund from any and all sources, and unappropriated for any other purpose during the fiscal year ending December 31, 2009, the sum of $130,281.17, is hereby appropriated to the Division of Power and Water, Division 60-07, Object level One 10, Object level Three 5502, OCA 551001.
SECTION 2. That the City Auditor is hereby authorized and directed to transfer $130,281.17, from the Electricity Reserve Fund to the Voted Street Lighting and Electricity Distribution Improvement Fund, Fund No. 553, into the appropriate project account as specified within Section 3 herein, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
SECTION 3. That the appropriation and expenditure of $130,281.17 is hereby authorized for the High Street Circuit Conversion Project within the Voted Street Lighting and Electricity Distribution Improvement Fund, Fund No. 553, Division 60-07, Project No. 670784, Object Level Three 6625, OCA Code 553784.
SECTION 4. That upon obtaining other funds for the purpose of funding street lighting capital improvement work, the City Auditor is hereby authorized to repay the Electricity Reserve Fund the amount transferred under Section 2 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 5. That the Director of Public Utilities is hereby authorized to enter into an agreement, in an amount not to exceed $130,281.17, to reimburse Columbus Southern Power dba American Electric Power Company (AEP), for labor costs incurred in transferring and /or rearranging AEP and other communication facilities attached to poles owned by AEP to comply with AEP clearance requirements as may be necessary to complete the North High Street Circuit Conversion, Phase II.
SECTION 6. That the provisions of Columbus City Codes, 1959, Section 329.06, Competitive Bidding, are hereby waived for said agreement.
SECTION 7. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this Ordinance.
SECTION 8. That the City intends that this Ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $120,317.00 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the Electricity Reserve Fund 551, which is the fund from which the advance for costs of the Project will be made.
SECTION 9. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.