City of Columbus - File #: 1384-2006

• File #: 1384-2006
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 7/14/2006
• In control: Safety Committee
• On agenda: 7/31/2006
• Final action: 8/2/2006
• Title: To authorize the City Attorney to modify an existing contract with McNees Wallace & Nurick LLC to act as special counsel to represent the City regarding certain Seams Elimination Cost Allocation (SECA) purchase power issues, and other necessary specialized legal services, and to authorize the expenditure of $35,000.00 from the Division of Electricity Operating Fund and to declare an emergency. ($35,000.00)

Date	Ver.	Action By	Action	Result
8/2/2006	1	MAYOR	Signed
8/2/2006	1	ACTING CITY CLERK	Attest
7/31/2006	1	Columbus City Council	Approved	Pass
7/31/2006	1	COUNCIL PRESIDENT	Signed
7/26/2006	1	City Clerk's Office	Sent back for Clarification/Correction
7/26/2006	1	Atty Drafter	Sent for Approval
7/26/2006	1	CITY ATTORNEY	Reviewed and Approved
7/26/2006	1	Atty Drafter	Sent to Clerk's Office for Council
7/21/2006	1	City Clerk's Office	Sent back for Clarification/Correction
7/21/2006	1	Atty Drafter	Sent to Clerk's Office for Council
7/17/2006	1	Atty Drafter	Sent for Approval
7/17/2006	1	Finance Reviewer	Reviewed and Approved
7/17/2006	1	FINANCE DIRECTOR	Reviewed and Approved
7/17/2006	1	Atty Drafter	Sent for Approval
7/17/2006	1	Auditor Reviewer	Reviewed and Approved
7/17/2006	1	CITY AUDITOR	Reviewed and Approved
7/17/2006	1	Atty Drafter	Sent to Clerk's Office for Council
7/14/2006	1	Atty Drafter	Sent for Approval
7/14/2006	1	Atty Reviewer	Reviewed and Approved
7/14/2006	1	Atty Drafter	Sent for Approval
7/14/2006	1	UTILITIES DIRECTOR	Reviewed and Approved

Explanation

BACKGROUND: On October 26, 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 Electricity (City) relating to the Power Purchase and Sale Agreement between the City and Constellation Commodities Group and American Municipal Power-Ohio (Constellation). Constellation, which is the Division of Electricity's energy requirements provider, is subject to a new service charge created by the Federal Energy Regulatory Commission (FERC) as part of the efforts to deregulate the electric power industry. This charge, which is called the Seams Elimination Cost Allocation (SECA), is to be paid, by FERC order, by those receiving the energy. The City and Constellation disagree over the interpretation of the City's contract as to who is liable for payment of the SECA charges.
To date the City Attorney, has contracted with McNees, Wallace & Nurick for a total of $70,000, beginning in 2004. It is estimated that an additional $35,000 is needed to cover the remaining specialized legal services regarding SECA purchase power issues, and certain additional legal services necessary to the evaluation of purchase power proposals and the negotiations of new purchase power agreements anticipated for 2006 and 2007.


Contract Compliance Number: 231256003

FISCAL IMPACT: There is sufficient budget authority in the Division of Electricity's Operating Fund to cover this expenditure

EMERGENCY JUSTIFICATION: Emergency action is requested as not to delay the monies necessary to continue the legal services of David Kleppinger, the City's special counsel, whose expertise is this matter is needed.

Title

To authorize the City Attorney to modify an existing contract with McNees Wallace & Nurick LLC to act as special counsel to represent the City regarding certain Seams Elimination Cost Allocation (SECA) purchase power...