Explanation
Ordinance 0786-2013 authorized the Director of the Department of Finance & Management to enter into an Electric Service Agreement with AEP Energy, Inc. for the provision of electric service at certain set rates for various City-owned facilities under the purview of the Departments of Finance & Management, Public Service, and Recreation & Parks.
This legislation requests authority to modify the existing agreement with AEP Energy, Inc. to allow for thirty-percent (30%) green power sourcing. The current agreement does not provide for the purchase of "green" power (i.e. wind-generated, solar-generated, etc.). By adding this feature to the contract, certain City facilities can reduce their greenhouse gas emissions by 7%, while largely preserving cost savings negotiated under the original Electric Service Agreement.
The Department of Finance & Management feels that it is in the best interest of the City of Columbus to modify the existing agreement with AEP Energy, Inc. to continue to take advantage of the power cost savings and to reduce the City's carbon footprint. This ordinance is being submitted as an emergency so that the department can modify this agreement at the earliest time possible to take advantage of cost savings and to begin greenhouse gas reductions.
FISCAL IMPACT: No funding required for this contract.
Contract Compliance No.: AEP Energy, Inc. 030459115, Expires 2-25-15
Title
To authorize the Director of Finance & Management Department to modify the existing Electric Service Agreement with AEP Energy, Inc. for the purchase of electric power; and to declare an emergency.
Body
WHEREAS, AEP Energy, Inc. is a competitive retail electric service provider and affiliate of AEP Ohio and the Department of Finance & Management has coordinated with AEP Energy, Inc. in an effort to reduce the power costs and greenhouse gas emissions of associated City-owned facilities under the purview of the Departments of Finance & Management, Public Service, and Recreation & Parks; and
WHEREAS, By modifying the current Electric Service Agreement these City Departments are projected to reduce greenhouse gas emissions by seven-percent (7%), while preserving costs savings negotiated under the original Electric Service Agreement; and
WHEREAS, Section 329.07(a) of the Columbus City Code exempts items for which fixed prices prevail, such as utility services, from the bidding process; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance & Management, in that it is immediately necessary to modify the existing Electric Service Agreement with AEP Energy, Inc. for the purchase of electric power so that the Department of Finance & Management, the Department of Public Service, and the Department of Recreation & Parks can take advantage of certain electricity cost savings and greenhouse gas reductions for the immediate preservation of the public health, peace, property and safety; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Finance & Management be and is hereby authorized to modify the existing Electric Service Agreement with AEP Energy, Inc. to include a thirty-percent green power sourcing feature for the provision of electric service at certain set rates for various City-owned facilities under the purview of the Departments of Finance & Management, Public Service, and Recreation & Parks.
Section 2. That for the reasons stated in the preamble hereto, where is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure, which 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.