Explanation
BACKGROUND: This ordinance authorizes the Director of Public Utilities to modify Contract Number CT09743 with American Municipal Power, Inc. to provide funding for the purchase of wholesale electricity for the Division of Power and Water.
Amount of additional funds to be expended: $1,400,000.00.
Reasons additional goods/services could not be foreseen: The Division of Power and Water (Power) currently contracts with American Municipal Power, Inc. for the purchase of wholesale electricity. Ord. 0097-2009, passed February 23, 2009, authorized increases of these contracts for purchases in 2009; however, the amount estimated for the power contract was insufficient to cover the actual costs that will be incurred for the remainder of 2009 and until such time that funds will be available in 2010.
Reason other procurement processes are 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.
How cost of modification was determined: This modification is based upon estimated requirements for the remainder of 2009 at rates as established in the existing contract.
Contract Compliance Number: 310943223, expires 01/24/2010
American Municipal Power, Inc. does not hold MBE/FBE status.
FISCAL IMPACT: There will be no fiscal impact on the 2009 budget as the actual costs incurred on another purchase power contract with American Electric Power have been less than anticipated and that contract has been reduced accordingly, thereby keeping total expenditures within the existing budget. The total amounts spent for purchase power in 2007 and 2008 were $53,866,755 and $53,763,139, respectively.
Title
To authorize the Director of Public Utilities to modify the contract for the purchase of wholesale electric power with American Municipal Power, Inc. for the Division of Power and Water and to authorize the expenditure of $1,400,000.00.
Body
WHEREAS, the City and American Municipal Power, Inc. have entered into a Master Services Agreement dated December 16, 2008 under which certain services may be provided by American Municipal Power, Inc. to the City via schedules pursuant thereto; and
WHEREAS, the City and American Municipal Power, Inc. have entered into a contract agreement dated July 11, 1988, Contract Number CT-09743 for energy supplied from the Gorsuch Station; and
WHEREAS, it is necessary to increase the existing contract to provide for wholesale electric power required by the Division of Power and Water; and
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 the American Municipal Power, Inc. (Gorsuch) contract CT-09743 by increasing the contract in the amount of $1,400,000.00.
SECTION 2. That this modification is in compliance with Section 329.16 of Columbus City Code, 1959.
SECTION 3. That to pay the cost of the aforesaid contract modification, the expenditure of $1,400,000.00, or so much thereof as may be needed, is hereby authorized from Electricity Operating Fund 550, Division No. 60-07, OCA Code 600830, Object Level three 2233.
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.