Explanation
BACKGROUND: This legislation authorizes the Public Utilities Director to enter into an agreement to obtain ownership of a 34.5 kV circuit breaker, associated metal clad switchgear, relaying, and 34.5 kV bus work located at Glick Substation adjacent to the O'Shaughnessy Dam on the Scioto River in southwestern Delaware County, Ohio. This equipment is currently owned by Columbus Southern Power Company and is crucial to the operation of the O'Shaughnessy Hydro Generating Facility. The City of Columbus will pay Columbus Southern Power Company One Dollar ($1.00) to assume ownership and the responsibility of operating and maintaining the equipment. Ownership will allow the Division of Electricity to proceed with a proposed breaker replacement and switchgear modifications project to ensure reliability. In 2003, the City lost approximately $1,200 per day, or over $200,000, while the breaker was being repaired.
Columbus Southern Power Company's contract compliance number is 314154203.
Emergency action is requested in order that the transaction may be completed and ownership transferred so that the modification project may proceed as soon as possible in order to avoid potential equipment failure and subsequent loss of revenue to the City.
FISCAL IMPACT: The cost of one dollar will not impact the Division of Electricity's operating budget, however, the investment will protect future revenue generated from the sale of energy created by the hydro facility.
Title
To authorize the Public Utilities Director to enter into an agreement with American Electric Service Corporation as agent for Columbus Southern Power Company to purchase a 34.5 kV circuit breaker and other associated equipment located adjacent to the O'Shaughnessy Dam; to authorize the expenditure of $1.00 from the Division of Electricity Operating Fund; and to declare an emergency. ($1.00)
Body
WHEREAS, American Electric Service Corporation, as agent for Columbus Southern Power Company has offered to sell to the City of Columbus, a 34.5 kV circuit breaker, associated metal clad switchgear, relaying and 34.5 kV bus work located at Glick Substation adjacent to the O'Shaughnessy Dam; and
WHEREAS, the Department of Public Utilities, Division of Electricity wishes to assume ownership of this equipment so that it can properly maintain it to ensure reliability of the O'Shaughnessy Hydro Generating Facility; and
WHEREAS, it is immediately necessary to obtain ownership in order to proceed with replacement and modifications to the system in order to avoid potential equipment failure and subsequent loss of revenue to the City; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Electricity, in that it is immediately necessary to enter into an agreement with American Electric Service Corporation, as agent for Columbus Southern Power Company to obtain ownership of a 34.5 kV circuit breaker and other associated equipment located adjacent to the O'Shaughnessy Dam for the immediate 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 is hereby authorized to enter into an agreement with American Electric Service Corporation, as agent for Columbus Southern Power Company to obtain ownership of a 34.5 kV circuit breaker, associated metal clad switchgear, relaying and 34.5 kV bus work located at Glick Substation adjacent to the O'Shaughnessy Dam for the sum of one dollar ($1.00).
SECTION 2. That to pay the cost of the aforesaid agreement, the expenditure of $1.00 be and is hereby authorized from the Division of Electricity Operating Fund 550, OCA 606814, Object Level Three 2245.
SECTION 3. That for 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.