Explanation
BACKGROUND: This ordinance authorizes modifications of Contract Numbers CT-07199 and CT-09743 with American Municipal Power-Ohio, Inc. (AMP-Ohio) for the purchase of wholesale electricity and associated services required in 2004.
Amount of additional funds to be expended: $8,627,000.00
Reasons additional goods/services counld not be foreseen: The Division of Electricity 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 2004.
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. Contract Number CT-07199 is in effect until 2005 and CT-09743 (Gorsuch) is in effect until 2008.
How cost of modification was determined: The modification is based upon estimated requirements for 2004 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: The 2004 Division of Electricity budget authority for purchase power is $37,327,414 and an additional $452,504 was budgeted for Amp-Ohio Service fees. The total purchased power expenditures for 2002 and 2003 were $34,434,355 and $31,628,816 , 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 Electricity, under the provisions of Columbus City Codes, to authorize the expenditure of $8,627,000.00 from the Division of Electricity Operating Fund, and to declare an emergency. ($8,627,000.00)
Body
WHEREAS, the City of Columbus ( the City) is a member of American Municipal Power-Ohio, Inc. (AMP-Ohio), a non-profit organization whoe membership includes seventy-seven Ohio Municipalities that own and operate municipal electric systems, including the City: and
WHEREAS, the City and 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 modify the existing contracts to provide for wholesale electric power and associated services required in 2004 under the provisions of Section 329.13, Columbus City Codes, 1959; 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 Division of Electricity, Department of Public Utilities, 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 contracts with AMP-Ohio by increasing the contract amounts by $8,627,000.00, or so much thereof as may be needed, as follows:
CONTRACT NUMBER AMOUNT
CT-07199 4,127,000.00
CT-09743 (Gorsuch) 4,500,000.00
$ 8,627,000.00
SECTION 2. That these contract modifications are in compliance with Section 329.13, of Columbus City Codes, 1959.
SECTION 3. That to pay the cost of the aforesaid contract modifications, the expenditure of $8,627,000.00, or so much thereof as may be needed, is hereby authorized from Division of Electricity Operating Fund 550, Division No. 60-07, OCA Code 606715, and shall be disbursed among the following Object Level Three Codes:
OBJECT LEVEL THREE AMOUNT
2233 8,200,000.00
3333 427,000.00
$ 8,627,000.00
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.