Explanation
BACKGROUND: This ordinance authorizes the Director of Public Utilities to modify Contract Number EL013649 with Central Ohio Bio-Energy, LLC, ('COBE') majority owned by Quasar Energy Group, a Cleveland, Ohio based waste-to-energy company. COBE designs, builds and operates anaerobic digester systems that produce renewable energy in the form of electricity. COBE and the Division of Power executed an interconnection agreement (Columbus Ordinance #1285-2010) pursuant to which the Generating Facility is interconnected as a "behind the meter" generation unit. This unit is technically capable of producing approximately 6,500,000 kWh per year of excess electricity.
Amount of additional funds to be expended: $120,000.00
Reasons additional goods/services could not be foreseen: The Division of Power currently has a contract in place to purchase excess electricity from the Generating Facility. This legislation authorizes increases in the amounts of the contract to cover the needs for 2016.
Reason other procurement processes are not used: The City of Columbus, Department of Public Utilities is obligated by contract to purchase excess energy from COBE.
How cost of modification was determined: This modification is based upon estimated requirements for 2016 at rates as established in the existing contract.
Contract Compliance Number: 26-1698590, Expires: 01/16/2017
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 purchases may continue without interruption and payments can be made on a timely basis.
FISCAL IMPACT: There is sufficient budget authority in both the Power Operating Fund in 2016 to cover this service. The total amounts spent for purchase power in 2014 and 2015 were $54,297,038.55, and $52,217,514.12, respectively.
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