Explanation
BACKGROUND: This ordinance authorizes the Director of Public Utilities to modify Contract Numbers CT-07199 and CT-09743 with American Municipal Power-Ohio, Inc. (AMP-Ohio) to provide funding for the purchase of wholesale electricity and associated services in 2007 for the Division of Power and Water.
Amount of additional funds to be expended: $7,159,000
Reasons additional goods/services could not be foreseen: The Division of Power and Water (Power) currently has contracts in place with AMP-Ohio for the purchase of wholesale electricity. This legislation authorizes increases in the amounts of the contracts to cover needs for 2007.
Reason other procurements processes are not used: AMP-Ohio is a non-profit organization for state municipalities and, acting as a broker, has contracted on the City's behalf competitive prices through a bidding process.
How cost of modification was determined: The modification is based upon estimated requirements for 2007 at rates as established in the existing contracts.
Contract Compliance Number: 310943223
Emergency action is requested in order that purchases may continue without interruption and payments can be made on a timely basis.
FISCAL IMPACT: This legislation is contingent upon passage of the 2007 budget. $56,873,315 is budgeted in the Electricity Fund 550 for purchase power and an additional $474,000 is budgeted for Amp-Ohio service fees. The total purchased power expenditures for 2005 and 2006 $39,054,452 and $37,677,109.56, respectively.
Title
To authorize the Director of Public Utilities to modify contracts for the purchase of wholesale electric power with American Municipal Power-Ohio, Inc. for the Division of Power and Water; to authorize the expenditure of $7,159,000.00 from the Electricity Operating Fund; and to declare an emergency. ($7,159,000.00)
Body
WHEREAS, the City and American Municipal Power-Ohio (AMP-Ohio) have entered into a generic contract agreement dated March 11, 1986, Contract Number CT-07199, under which certain services may be provided by AMP-Ohio to the City via schedules pursuant thereto; and
WHEREAS, the City and AMP-Ohio 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 contracts to provide for wholesale electric power and associated services required in 2007; and
WHEREAS, emergency action is requested in order that purchases may continue without interruption and payments for purchased power may be made on a timely basis; 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 modify contracts with American Municipal Power-Ohio, Inc. for the purchase of wholesale electric power 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 be and is hereby authorized to modify the generic AMP-Ohio contract, CT-07199, and the Gorsuch contract, CT-09743, by increasing the contract amounts by $7,159,000.00, as follows:
CONTRACT NUMBER AMOUNT
CT-07199-001 (Generic) $ 1,010,000.00
CT-07199-002 (Services) 474,000.00
CT-09743 (Gorsuch) 5,675,000.00
TOTAL $ 7,159,000.00
SECTION 2. That these contract modifications are in compliance with Section 329.16, of Columbus City Codes, 1959.
SECTION 3. That to pay the cost of the aforesaid contract modifications, the expenditure of $7,159,000.00, or so much thereof as may be needed, is hereby authorized from Division of Electricity Operating Fund 550, Division No. 60-07, OCA Code 600830, and shall be disbursed among the following Object Level Three Codes:
Object Level Three: 2233 $6,685,000.00
Object Level Three: 3333 474,000.00
Total: $7,159,000.00
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is 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.