City of Columbus - File #: 0920-2007

• File #: 0920-2007
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 6/1/2007
• In control: Utilities Committee
• On agenda: 7/9/2007
• Final action: 7/11/2007
• Title: To authorize the Director of Public Utilities to modify an existing contract with American Municipal Power - Ohio, Inc. for operations and maintenance and purchase of peaking power from diesel flood wall generators for the Division of Power and Water, to increase the appropriation within the Electricity Operating Fund, to authorize payment of $562,607.55 to American Municipal Power - Ohio; and to declare an emergency. ($562,607.55)

Date	Ver.	Action By	Action	Result
7/11/2007	1	CITY CLERK	Attest
7/10/2007	1	MAYOR	Signed
7/9/2007	1	Columbus City Council	Approved	Pass
7/9/2007	1	COUNCIL PRESIDENT	Signed
6/22/2007	1	Utilities Reviewer	Reviewed and Approved
6/22/2007	1	Utilities Drafter	Sent to Clerk's Office for Council
6/20/2007	1	City Clerk's Office	Sent back for Clarification/Correction
6/20/2007	1	Utilities Drafter	Sent for Approval
6/19/2007	1	CITY AUDITOR	Reviewed and Approved
6/19/2007	1	Utilities Drafter	Sent for Approval
6/19/2007	1	CITY ATTORNEY	Reviewed and Approved
6/19/2007	1	Utilities Drafter	Sent to Clerk's Office for Council
6/14/2007	1	Auditor Reviewer	Reviewed and Approved
6/13/2007	1	Utilities Drafter	Sent for Approval
6/13/2007	1	Auditor Reviewer	Reviewed and Approved
6/12/2007	1	FINANCE DIRECTOR	Reviewed and Approved
6/11/2007	1	Finance Reviewer	Reviewed and Approved
6/8/2007	1	ODI DIRECTOR	Reviewed and Approved
6/8/2007	1	Utilities Drafter	Sent for Approval
6/6/2007	1	EBOCO Reviewer	Sent for Approval
6/5/2007	1	Utilities Drafter	Sent for Approval
6/4/2007	1	Utilities Reviewer	Sent for Approval
6/4/2007	1	UTILITIES DIRECTOR	Reviewed and Approved
6/4/2007	1	Utilities Drafter	Sent for Approval
6/4/2007	1	EBOCO Reviewer	Reviewed and Disapproved
6/1/2007	1	Utilities Drafter	Sent for Approval

Explanation

Background
This ordinance authorizes the Director of Public Utilities to modify an existing contract with American Municipal Power - Ohio, Inc. (AMP-Ohio) for operations and maintenance and purchase of peaking power from the diesel flood wall generators for the Division of Power and Water, and to increase the appropriation within the Electricity Operating Fund.

The contract requires payment by the Division of Electricity (now the Division of Power and Water) of monthly capacity fees to AMP-Ohio for 120 months beginning March 1, 2003. These fees have not been invoiced or paid to date due to construction and commissioning delays. These issues have been resolved. The majority of the capacity payments due relate to principal and interest on a Bond Anticipation Note (BAN) sold by AMP-Ohio. This note was originally sold to provide funding for an upgrade of the flood wall generators and to provide funds for maintenance during the start up phase of the project. This legislation will allow the department to utilize funds from a sale of assets described below and from operating cash in the electricity enterprise fund to pay off the balance of the BAN. This will save a considerable amount of interest that would be paid if the fees were paid monthly for 120 months. The Division of Power and Water requests authority in this legislation to pay to AMP - Ohio, $1,065,886.11, to allow them to pay off the balance of the BAN. The legislation also includes approximately $16,758.34 to allow payment of other miscellaneous fees due to AMP-Ohio under the terms of the contract.

The Division of Power and Water participated in the Reserve Power Supply Pool (PGET) through Amp-Ohio as stated on OR # 1329-00 passed June 5, 2000. As a member of the "pool" the city's prorated share of the gas turbine peaking units was established at approximately 45 MW. These assets have been sold by AMP-Ohio and the electricity enterprise fund is due to receive $503,278.56 from t...