Explanation
BACKGROUND: This ordinance authorizes the Director of Public Utilities to modify the Master Services Agreement Contract with American Municipal Power, Inc. (AMP, Inc.) to provide funding for the purchase of wholesale electricity and associated services during 2017 for the Division of Power. The funds authorized by this ordinance will cover the costs of power supply, and additional ancillary services provided by AMP, Inc. such as diesel generator maintenance, representation on Federal power issues, staff training and customer development services for 2017.
Amount of additional funds to be expended: The total of this ordinance is $306,000.00. $210,000.00 is allocated for purchase power and $96,000.00 for ancillary services provided by AMP, Inc.
Reasons additional goods/services could not be foreseen: The Division of Power currently has contracts in place with American Municipal Power, Inc. for the purchase of wholesale electricity and ancillary services. This legislation authorizes increases in the amounts of the contracts to cover needs for 2017.
Reason other procurement processes are not used: American Municipal Power, Inc. is a non-profit organization for state municipalities and, acting as a broker, has contracted competitive prices on the City's behalf through a bidding process.
How cost of modification was determined: This modification is based upon estimated requirements for 2017 at rates as established in the existing contract.
Contract Compliance Number: 310943223, expires 2/1/18.
American Municipal Power, Inc. does not hold MBE/FBE status.
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 DESIGNATION: 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 the Power Operating Fund to cover the costs authorized by this ordinance.
Title
To authorize the Director of Public Utilities to modify the contract for the purchase of wholesale electric power with American Municipal Power, Inc. for the Division of Power; to authorize the expenditure of $306,000.00; and to declare an emergency. ($306,000.00)
Body
WHEREAS, the Division of Power has an existing contract for the purchase of wholesale electricity and associated services with American Municipal Power, Inc.; and
WHEREAS, it is necessary to increase the existing contract with American Municipal Power, Inc. to provide for wholesale electric power and associated services required in 2017 by the Division of Power; 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 authorize the Director to modify a contract with American Municipal Power, Inc. so that purchases may continue without interruption and payments for purchased power may be made on a timely basis 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 be and is hereby authorized to modify the Master Services Agreement Contract with American Municipal Power, Inc. by increasing the amounts by $306,000.00, as follows:
PURPOSE AMOUNT
Wholesale Electric Power $210,000.00
Ancillary Services $ 96,000.00
Total $306,000.00
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 $306,000.00, or so much thereof as may be needed, is hereby authorized in Fund 6300 (Electricity Operating Fund) in object class 02 Supplies & Materials and object class 03 Services per the accounting codes in the attachment to this ordinance.
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.