Explanation
BACKGROUND:
The College Park Apartments, a complex of 250 units located at 1669 College Avenue, has elected to transfer its electric service whose tenant spaces are individually metered by the City of Columbus, Department of Public Utilities (City) to a master meter arrangement with Nationwide Energy Partners, LLC (NEP). To efficiently implement College Park's request, the City seeks approval to enter into an agreement with NEP to transfer City-owned equipment following the requested conversion to a master meter arrangement. The agreement between the parties includes, but is not limited to, the following key provisions:
1. NEP will convey one 2000' spool of #1 3C CU 15KV cable shielded TRXLPE jacketed with #2 ground (DOPW-P Stock Code 50396) to the City in exchange for the approximately 6000' of existing single primary cables installed on the property.
2. NEP will pay via check the amount of $28,175.00 for the thirty post-top lights on the property. NEP determined the current value of the post-top lights based on a straight-line depreciation of the useful life of these assets.
3. NEP will energize the new primary feed onto College Park from the overhead AEP primary meter located at the entrance of the property. NEP anticipates feeding this with one phase. Although College Park currently has radial feeds, NEP will have loops built prior to the turnover.
4. While maintaining the City feed, NEP will decommission three to five transformers per day, remove them from the pad and install new transformers in their place. At this time, the residential meters supplied by these transformers will be exchanged with NEP's meters. NEP will remove the City meters and collect final reads for the City. NEP estimates it will complete the entire project five working days.
5. With regard to the lighting, NEP will cut the lighting circuit from the City line outside the property and install a new transformer, sub-meter and control box.
6. Upon completion of the transfer, NEP will deliver the removed transformers and residential meters to the City's Division of Power & Water Indianola Avenue facility.
The Department of Public Utilities requests approval to implement the above described process.The estimated value of this remuneration including returned equipment is one third the estimated initial cost of the system. Because this asset transfer is not in compliance with City Code procedures concerning equipment disposal, waiver of City Code is required to allow appropriate paperwork to be completed at the time of the equipment transfer.
Emergency legislation is being requested because NEP and College Park Apartments have requested this transfer occur as quickly as possible, to avoid the removal of City assets during the winter months.
FISCAL IMPACT:
There is no budgetary impact because we are being reimbursed for city facilities. Revenues are not significantly impacted by this legislation.
Title
To authorize and direct the Finance & Management Director to execute an agreement to transfer and sell the City's assets associated with the electric distribution service system located at the College Park Apartment complex to Nationwide Energy Partners, LLC (NEP), to waive the provisions of City Code relating to the sale of City-owned personal property, and to declare an emergency.
Body
WHEREAS, the Department of Public Utilities, Division of Power and Water installed electric distribution, underground lighting and electric services on private property in the College Park apartment complex in 1999 to 2000; and
WHEREAS, College Park has elected to transfer its electric service to a master meter arrangement with Nationwide Energy Partners, LLC (NEP) and NEP has made an acceptable offer to reimburse the City, to deliver new cable and to return equipment to our facilities while avoiding loss of electrical services to College Park residents, making this transfer in the best interest of the City; and
WHEREAS, after analyzing the existing infrastructure at College Park, it is recommended that to facilitate the transfer of these services to NEP, the City transfer its underground distribution system and light poles and circuits to NEP, and execute the proposal by NEP for NEP to reimburse the City for the depreciated cost of the City's light poles ($28,175), to reimburse the City for its underground system in the form of new cable delivered to our Indianola location, to remove our transformers and meters and to deliver them to our Indianola facility thereby ensuring the City will receive remuneration for its assets in the form of dollars, new cable and returned equipment with little City labor involved; and
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WHEREAS, this asset transfer is not in compliance with City Code procedures concerning equipment disposal, so waiver of City Code is required to allow appropriate paperwork to be completed at the time of the equipment transfer; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power and Water, in that it is immediately necessary to execute an agreement to transfer the City's electric distribution system located at College Park Apartments to NEP before the beginning of winter season to ensure the City's equipment not being utilized by NEP is returned in good working order, thereby preserving 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 Finance & Management Director is hereby authorized and directed to execute an agreement based on Nationwide Energy Partners, LLC (NEP) proposal dated July 23, 2012 to transfer assets located at the College Park Apartment complex to NEP for the sum of $28,175, and to have new cable and used equipment delivered to the City's facilities as specified in the proposal.
Section 2. That this Council finds it is in the best interest of the City that the provisions of Section 329.30, of the Columbus City Code, relating to the sale of City-owned personal property, be and are hereby waived.
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 ten days after passage if the Mayor neither approves nor vetoes the same.