City of Columbus - File #: 0097-2006

• File #: 0097-2006
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 1/10/2006
• In control: Utilities Committee
• On agenda: 2/13/2006
• Final action: 2/15/2006
• 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 the Seams Elimination Cost Allocation (SECA) purchase power issues relating to the Power Purchase and Sale Agreement between the City of Columbus and Constellation Commodities Group, 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
2/15/2006	1	CITY CLERK	Attest
2/14/2006	1	MAYOR	Signed
2/13/2006	1	Columbus City Council	Approved	Pass
2/13/2006	1	COUNCIL PRESIDENT	Signed
2/9/2006	1	Atty Drafter	Sent to Clerk's Office for Council
2/9/2006	1	EBOCO Reviewer	Reviewed and Approved
2/8/2006	1	City Clerk's Office	Sent back for Clarification/Correction
1/30/2006	1	CITY ATTORNEY	Reviewed and Approved
1/30/2006	1	Atty Drafter	Sent to Clerk's Office for Council
1/27/2006	1	Atty Drafter	Sent for Approval
1/27/2006	1	Auditor Reviewer	Contingent
1/27/2006	1	CITY AUDITOR	Reviewed and Approved
1/27/2006	1	Atty Drafter	Sent for Approval
1/26/2006	1	EBOCO Reviewer	Reviewed and Approved
1/26/2006	1	ODI DIRECTOR	Reviewed and Approved
1/26/2006	1	Atty Drafter	Sent for Approval
1/26/2006	1	Finance Reviewer	Reviewed and Approved
1/26/2006	1	FINANCE DIRECTOR	Reviewed and Approved
1/25/2006	1	UTILITIES DIRECTOR	Reviewed and Approved
1/25/2006	1	Utilities Drafter	Sent for Approval
1/24/2006	1	Atty Drafter	Sent for Approval
1/24/2006	1	Utilities Reviewer	Sent for Approval
1/23/2006	1	Atty Reviewer	Reviewed and Approved
1/19/2006	1	Atty Drafter	Sent for Approval
1/18/2006	1	Atty Reviewer	Reviewed and Disapproved
1/10/2006	1	Atty Drafter	Sent for Approval

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, in the amount of $10,000, 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.
The City Attorney, through an encumbrance in 2005 for $10,000.00 and an additional $15,000.00 as authorized by Ordinance Number 1519-2005, has contracted with McNees, Wallace & Nurick in 2004 and 2005, for a total of $35,000. Because it is unlikely that the SECA issues will be quickly resolved, it is estimated that an additional $35,000 is needed to cover the specialized legal services anticipated for the year 2006.


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 the 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 the Seams Elimination Cost Allocation (SECA) purch...