Explanation
This ordinance authorizes the Director of Public Utilities to modify and increase the Master Services Agreement with American Municipal Power, Inc. (AMP, Inc.) to provide funding for the purchase of wholesale electricity and associated services during 2022, for the Division of Power. The funds authorized by this ordinance will cover the costs of power supply, and additional ancillary services provided by AMP, Inc. such as diesel generator maintenance, representation on federal power issues, staff training and customer development services for 2022.
This Ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of the City Code pertaining to contract modifications.
SUPPLIER: American Municipal Power, Inc., Non-Profit, DAX Vendor #004495, (EIN #31-0943223), Exp. 2/4/2023
American Municipal Power, Inc. does not hold MBE/FBE status.
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.
1. Amount of additional funds: The total amount of additional funds needed for this contract modification #16 is $57,185,000.00. $56,400,000.00 is allocated for the purchase of wholesale electric power and $785,000.00 for ancillary services provided by AMP, Inc. Total contract amount including this modification is $275,665,534.00.
2. Reason additional funds were not foreseen: The need for additional funds was known at the time of the initial contract. The Division of Power currently has contracts in place with American Municipal Power, Inc. for the purchase of wholesale electricity and ancillary services. This legislation authorizes the increase in the amount of the contract to cover the needs for 2022.
3. Reason other procurement processes were not used: American Municipal Power, Inc. is a non-profit organization for state municipalities and, acting as a broker, has contracted competitive prices on the City's behalf through a bidding process.
4. How was cost determined: The modification is based upon estimated requirements for 2022 at rates established in the existing contract.
FISCAL IMPACT: $57,185,000.00 is budgeted and available for this purchase. This ordinance is contingent on the passage of the 2022 Operating Budget, Ordinance 2724-2022.
$55,137,000.00 was spent to purchase power and the AMP membership in 2021
$56,678,018.00 was spent to purchase power and the AMP membership in 2020
EMERGENCY DESIGNATION: This ordinance is being submitted as an emergency in order to allow purchase of power needed to keep the Division of Power operations running safely, efficiently and effectively to provide power to the citizens of the City of Columbus.
Title
To authorize the Director of Public Utilities to modify and increase the contract for the purchase of wholesale electric power and ancillary services with American Municipal Power, Inc. for the Division of Power; and to authorize the expenditure of $57,185,000.00 from the Electricity Operating Fund; and to declare an emergency. ($57,185,000.00);
Body
WHEREAS, the Division of Power has an existing contract for the purchase of wholesale electricity and associated services with American Municipal Power, Inc., and
WHEREAS, it is necessary to modify and increase the existing contract with American Municipal Power, Inc. in the amount of $57,185,000.00 and to authorize the expenditure in order to provide wholesale electric power and associated services required in 2022 by the Division of Power, and
WHEREAS, this ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of the City Code pertaining to contract modifications, and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power, in that it is immediately necessary to authorize the Director of Public Utilities to modify and increase the current contract for the purchase of wholesale electricity and associated services with American Municipal Power, Inc. without delay in order to allow purchase of power needed to keep the Division of Power operations running safely, efficiently and effectively, for the immediate 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 the Director of Public Utilities be, and is hereby, authorized to modify and increase the contract with American Municipal Power, Inc. for the purchase of wholesale electricity and associated services for the Department of Public Utilities, in accordance with the terms and conditions as shown in the Master Service Agreement on file in the office of the Division of Power. Total amount of modification No.16 is $56,400,000.00 for Wholesale Electric Power and $785,000.00 for Ancillary Services for a total of $57,185,000.00.
SECTION 2. That the expenditure of $57,185,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6300 Electricity Operating Fund, in object class 02 Supplies & Materials in the amount of $56,400,000.00, and in object class 03 Services in the amount of $785,000.00 per the accounting codes in the attachment to this ordinance.
SECTION 3. 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 4. That this modification is in accordance with the relevant provisions of City Code, Chapter 329 relating to contract modifications.
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 or vetoes the same.