Explanation
BACKGROUND:
In 2004 the City Attorney entered into a contract with McNees, Wallace & Nurick LLC, a law firm knowledgeable in electric purchase power issues, to assist in drafting and negotiating the purchase power agreement with AEP which currently provides the City's power needs through May 31, 2012. Because wholesale electric prices are currently driven by the volatile and escalating costs of natural gas and coal which are used to generate electricity, the present cost of providing purchase power to the City may be significantly higher by the year 2012. In order to select the best purchase power contract for the City, the Department of Public Utilities has been authorized to request proposals from potential suppliers and to negotiate contract terms and conditions. The new agreement would provide power through May 31, 2014. McNees, Wallace & Nurick LLC has expertise with purchase power issues, and the City desires their assistance. The law firm will assist the City in reviewing the proposals, provide specialized legal advice on issues relating to the evaluation of the proposals, preparing the subsequent contract as well as assist with PURPA (Public Utility Regulatory Policies Act) related issues. Therefore, the following legislation authorizes the City Attorney's to extend and modify its existing contract with McNees, Wallace & Nurick LLC to provide specialized legal services regarding issues related to the purchase of power for the Division of Power and Water.
Contract Compliance Number: 231256003, Expires 05/18/11
FISCAL IMPACT: Funding for this expenditure will come from the Electricity Operating Fund. $50,000 was budgeted for these services in 2009.
EMERGENCY JUSTIFICATION: Ordinance 0629-2009, passed on May 11, 2009 authorizes the Director of Public Utilities to negotiate and enter into contract for purchase power for the Division of Division of Power and Water. Emergency action is requested to allow for the immediate extension of McNees, Wallace & Nurick LLC's contract as not to delay the evaluation process.
Title
To authorize the City Attorney's Office to modify and extend its existing contract with McNees, Wallace & Nurick LLC to provide specialized legal service regarding issues related to the purchase of power for the Division of Power and Water for the years 2012 to 2014, and to authorize the expenditure of $50,000.00 from the Division of Electricity Operating Fund; and to declare an emergency. ($50,000.00)
Body
WHEREAS, in 2004, the City Attorney entered into a contract with McNees, Wallace & Nurick LLC, a law firm knowledgeable in electric purchase power issues, to provide specialized legal services for the Division of Power and Water (City) relating to the Power Purchase and Sale Agreement between the City and Constellation Commodities Group(Constellation); and
WHEREAS, McNees, Wallace & Nurick LLC subsequently, assisted the City in the drafting and negotiating a purchase power agreement with AEP which currently provides the City's power needs through May 31, 2012; and
WHEREAS, Ordinance 0629-2009, passed on May 11, 2009 authorizes the Director of Public Utilities to negotiate and enter into contract for purchase power for the Division of Division of Power and Water for years 2012 to 2014; and
WHEREAS, it is estimated that an additional $50,000.00 is needed to cover the specialized legal services regarding the evaluation of purchase power proposals and the negotiations of new purchase power agreements anticipated in 2009; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division Sewerage and Drainage, in that it is necessary to authorize the Cit Attorney to extend its existing contract with McNees, Wallace & Nurick LLC for specialized legal service pertaining to purchase power, so that there will be no delay in the aforementioned project for the immediate preservation of the public peace, property, health and safety; now, therefore: now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Attorney is hereby authorized to modify an existing contract with McNees, Wallace & Nurick LLC, in the amount of $50,000.00, for special legal counsel service necessary to the evaluation of purchase power proposals related to the purchase of power for the Division of Power and Water for the years 2012 to 2014 and to assist in negotiating the terms and conditions of a purchase power contract.
SECTION 2. That to pay the cost of the aforesaid contract modification, the expenditure of $50,000.00, or so much thereof as may be needed, is hereby authorized from the Division of Power and Water - Power, Division No. 60-07, Operating Fund 550, OCA 600830, Object Level Three 3324.
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 its passage if the Mayor neither approves nor vetoes the same.