Explanation
BACKGROUND: The Department of Public Utilities, Division of Power, and Ohio Power Company d/b/a American Electric Power (AEP Ohio) own and operate electric distribution systems throughout the City of Columbus and through a joint use agreement have attached their facilities to poles owned by the other party. American Electric Power must replace certain poles to comply with the Public Utilities Commission of Ohio (PUCO) requirements. In cases where the City's electrical facilities are attached to the poles that must be replaced, those facilities must be moved from the old poles to the new poles. The Division of Power does not have enough available power crews to accomplish removing the City's facilities from these poles in time to meet the demand. In order to expedite the process, American Electric Power will handle the transfer of the City facilities and will bill the City for the costs incurred. Since AEP Ohio will handle the removal of the City's facilities as well as facilities owned by others at the same time, it has been determined that this would be the fastest and most cost effective method. The cost for these services through 2014 is estimated at $35,000. The total number of poles requiring relocation of attachments is not known and there may be a need to present legislation at a later date to increase funding for the project.
American Electric Power (AEP Ohio) is the sole source for this service since they are the owner of the poles in question. Their contract compliance number is 314271000, expiration 7/11/2014.
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
Emergency action is requested in order that services may continue without interruption to comply with PUCO requirements and that reimbursement for said service may be made in a timely manner.
FISCAL IMPACT: There are sufficient funds budgeted for this expenditure in the 2014 Power operating budget. In 2012 the Division spent $31,530.00 for this service and in 2013 another $12,851 was incurred.
Title
To authorize the Director of Public Utilities to enter into an agreement to reimburse Ohio Power Company d/b/a American Electric Power (AEP Ohio) for the cost to transfer the City of Columbus electrical facilities from existing poles to replacement poles under Columbus City Code for sole source procurement; to authorize the expenditure of $35,000.00 from the Electricity Operating Fund; and to declare an emergency. ($35,000.00)
Body
WHEREAS, the Department of Public Utilities, Division of Power and American Electric Power own and operate electric distribution systems throughout the City of Columbus; and
WHEREAS, through a joint use agreement, the City and American Electric Power (AEP Ohio) have attached their facilities to poles owned by the other party; and
WHEREAS, it has become necessary for American Electric Power to replace some of their poles to meet the Public Utilities Commission of Ohio's (PUCO) requirements; and
WHEREAS, it is necessary for American Electric Power (AEP Ohio) to transfer City's facilities attached to said poles to the replacement poles; and
WHEREAS, American Electric Power, as owner and operator of said poles, is the sole source provider for the required services; and
WHEREAS, it is necessary to enter into an agreement with American Electric Power (AEP Ohio) to reimburse for costs incurred in transferring the City's facilities to the replacement poles; and
WHEREAS, the 2014 cost to be reimbursed to American Electric Power (AEP Ohio) for services through 2014 is estimated at $35,000.00; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power, in that it is immediately necessary to enter into an agreement with American Electric Power (AEP Ohio) to reimburse for costs incurred in the transferring the City's facilities to replacement poles for the immediate preservation of the public health, peace, property, safety and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities is hereby authorized to enter into an agreement, in accordance with the sole source provisions of Section 329.07(e) of the Columbus City Code, to reimburse American Electric Power (AEP Ohio) for costs incurred in transferring City owned facilities attached to poles owned by American Electric Power to replacement poles, as may be necessary to comply with the Public Utilities Commission of Ohio's requirements, in an amount not to exceed $35,000.00.
SECTION 2. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 3. That the expenditure of $35,000.00, or so much thereof as may be needed, is hereby authorized from the Electricity Operating Fund 550, division No. 60-07, OCA 600783, Object Level Three 3336.
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is 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 passage, if the Mayor neither approves nor vetoes the same.