Explanation
This legislation authorizes the City Attorney to modify the contract with the law firm McNees Wallace & Nurick LLC, a Pennsylvania limited liability company, for energy consultant legal services relating to the City’s purchase of electric power for the Department of Public Utilities (DPU), Division of Power (DOP).
DOP needs supply-side electric energy procurement management and advisory services. This firm will work closely with the City Attorney’s Office and the Division of Power to assist the City in identifying energy related issues, identifying the most competitive solutions, and securing the best prices, terms and conditions available for electricity contract(s) with qualified suppliers.
The Division of Power is a full service electric utility serving residential, commercial, and industrial customers. The Division currently has approximately 19,190 customer accounts, which include electric service to several City buildings and facilities, such as the City’s water and wastewater treatment plants. The Division also provides electricity services for the city’s street lights, of which there are approximately 57,000 city-wide. In 2024, Division of Power’s customers consumed approximately 902,331 MWh.
The Division regularly solicits competitive proposals through a Request for Proposals process for a power supply agreement. Currently, the Division has a power supply agreement with American Municipal Power (”AMP”) to supply power through December 31, 2025. The Division will be engaging American Electric Power Energy Partners (“AEPEP”) to supply power in the future, effective January 1, 2026. DPU needs energy consultant legal services to assist with contracting for the purchase of wholesale electric power for this transition and beyond.
The City Attorney’s Office, on behalf of the Department of Public Utilities, solicited proposals for the subject services in accordance with the provisions of Chapter 329 of City Code (RFQ013226). Seventy-one (71) vendors were solicited; two (2) proposals were received, and on September 6, 2019, McNees Wallace & Nurick LLC was selected as the best offeror.
The term of the contract was for one (1) year, renewable for five (5) additional years in one (1) year increments at the City’s option, contingent on budgeted funds and approval of City Council. If unforeseen issues or difficulties are encountered that require additional funding, a modification would be requested. This requested modification seeks to increase the contract amount by $125,000 and extend the current contract expiration date by one (1) year to January 29, 2027. The original authorizing ordinance was ORD 2856-2019. This contract is currently set to conclude on January 29, 2026, and due to the benefits of maintaining the existing attorney-client relationship, it is in the City’s best interest to waive competitive bidding provisions.
1. Amount of additional funds: The total amount of additional funds needed for this contract modification is $125,000.00. Total contract amount to-date, including this modification, is $700,000.00.
2. Reason additional funds were not foreseen: The need for additional funds was known at the time of the initial contract.
3. Reason other procurement processes were not used: They were used during the initial bid process, however the original term and authorized renewals will conclude on January 29, 2026. Other procurement processes were not used during this modification request due to the firm’s experience with current matters at hand and their expertise, as well as other benefits of maintaining the existing attorney-client relationship.
4. How cost was determined: The modification is in line with amounts in the original bid award.
SUPPLIER:
McNees Wallace & Nurick. | D365 Vendor #001743 | Federal EIN on file | Expires 4/16/2027 | McNees Wallace & Nurick 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.
FISCAL IMPACT:
$125,000.00 is available for this purchase.
$ 127,990.50 was spent in 2023
$ 113,539.00 was spent in 2024
Title
To authorize the City Attorney, on behalf of the Department of Public Utilities, Division of Power, to modify the contract for energy consultant legal services with McNees Wallace & Nurick, for the Division of Power; and to authorize the expenditure of $125,000.00 from the Electricity Operating Fund. ($125,000.00)
Body
WHEREAS, the City Attorney’s Office, on behalf of the Department of Public Utilities, Division of Power, solicited proposals for energy consultant legal services; and
WHEREAS, the Department of Public Utilities currently has an existing contract with McNees Wallace & Nurick that expires on January 29, 2026; and
WHEREAS, the term of the original contract was for one (1) year, with five (5) additional renewal options in one (1) year increments at the City’s option, contingent on budgeted funds and approval of City Council; and
WHEREAS, this ordinance seeks to modify the original contract term by extending the expiration date by one (1) year to January 29, 2027; and
WHEREAS, this ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications; and
WHEREAS, it is in the best interest of the City to waive competitive bidding provisions due to the benefits of maintaining the existing attorney-client relationship; and
WHEREAS, the expenditure of $125,000.00, or so much thereof as may be needed, is hereby authorized in Fund 6300, Electricity Operating Fund, from object class 03, Services, per the accounting codes attached to the ordinance; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities, Division of Power, to authorize the City Attorney, on behalf of the Director of Public Utilities, to modify the contract for energy consultant legal services with McNees Wallace & Nurick LLC; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Attorney is hereby authorized to modify the original contract term with McNees Wallace & Nurick LLC by extending the contract expiration date by one (1) year to January 29, 2027 on behalf of the Department of Utilities, Division of Power., for energy consultant legal services, and is also hereby authorized to increase the existing contract amount by $125,000.00.
SECTION 2. That this Council finds it in the best interest of the City to waive the competitive bidding provisions of Chapter 329 of City Code for modification of the contract with McNees Wallace & Nurick, Inc.
SECTION 3. That the expenditure of $125,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6300, Electricity Operating Fund, from object class 03, Services, per the accounting codes attached to the ordinance.
SECTION 4. 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 5. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.