Explanation
This ordinance authorizes the Director of Public Utilities to modify and increase the Master Services Agreement with American Municipal Power, Inc. (AMP, Inc.) to provide funding for the purchase of wholesale electricity and associated services in 2025 for the Division of Power. The funds authorized by this ordinance will cover the costs of power supply and additional ancillary services provided by AMP, Inc., such as diesel generator maintenance, representation on federal power issues, staff training, participation in journeyman lineworker safety and training programs, and customer development services.
This Ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications.
1. Amount of additional funds: The total amount of additional funds needed for this contract modification #23 is $65,070,950.00. $63,355,450 is allocated for the purchase of wholesale electric power, $900,000.00 is allocated for renewable energy credits, $700,000.00 is allocated for ancillary services provided by AMP, Inc., and $115,500.00 is allocated for the journeyman lineworker training program. Total contract amount including this modification is $463,211,344.00
2. Reason additional funds were not foreseen: The need for additional funds was known at the time of the initial contract and this legislation authorizes funding to cover the wholesale electricity and associated services needs for 2025.
3. Reason other procurement processes were not used: American Municipal Power, Inc. is a non-profit organization for state municipalities and, acting as a broker, has contracted for competitive prices on the City's behalf through a bidding process. For the lineworker training, only two programs offer the training locally and AMP’s program cost per attendee is the lowest cost option.
4. How was cost determined: The modification is based upon estimated requirements for 2025 at rates established in the exi...
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