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File #: 0169-2020    Version: 1
Type: Ordinance Status: Passed
File created: 1/9/2020 In control: Public Utilities Committee
On agenda: 2/10/2020 Final action: 2/13/2020
Title: To authorize the Director of Public Utilities to modify and increase the contract for the purchase of wholesale electric power and ancillary services with American Municipal Power, Inc. for the Division of Power; and to authorize the expenditure of $9,210,000.00 from the Electricity Operating Fund. ($9,210,000.00)
Attachments: 1. Ord 0169-2020 AMP OH Financial Dimensions, 2. Ord 0169-2020 AMP OH Addl Info

Explanation

 

This ordinance authorizes the Director of Public Utilities to modify and increase the Master Services Agreement with American Municipal Power, Inc. (AMP, Inc.) to provide funding for the purchase of wholesale electricity and associated services during 2020, 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 2020.

 

This Ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of the City Code pertaining to contract modifications.

 

SUPPLIER:  American Municipal Power, Inc., Non-Profit, DAX Vendor #004495, (EIN #31-0943223), Expires January 15, 2021

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.

 

1.   Amount of additional funds:  The total amount of additional funds needed for this contract modification #13 is ADD $9,210,000.00.  $8,900,000 is allocated for the purchase of wholesale electric power and $310,000 for ancillary services provided by AMP, Inc.  Total contract amount including this modification is $161,069,910.00.

2.   Reason additional funds were not foreseen:  The need for additional funds was known at the time of the initial contract.  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 amount of the contract to cover needs for 2020.

3.   Reason other procurement processes were 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.

4.   How was cost determined:  The modification is based upon estimated requirements for 2020 at rates established in the existing contract.

 

FISCAL IMPACT: $9,210,000.00 is budgeted and needed for this purchase. This ordinance is contingent on the passage of the 2020 Operating Budget, Ordinance 2926-2019.

 

$456,009.33 was spent in 2019

$748,648.09 was spent in 2018

 

 

Title

 

To authorize the Director of Public Utilities to modify and increase the contract for the purchase of wholesale electric power and ancillary services with American Municipal Power, Inc. for the Division of Power; and to authorize the expenditure of $9,210,000.00 from the Electricity Operating Fund.  ($9,210,000.00)

 

 

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 wholesale electric power and associated services required in 2020 by the Division of Power, and

 

WHEREAS, this ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of the City Code pertaining to contract modifications, and

 

WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities, Division of Power, to authorize the Director of Public Utilities to modify and increase the current contract for the purchase of wholesale electricity and associated services with American Municipal Power, Inc.; 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 and increase the contract with American Municipal Power, Inc. for the purchase of wholesale electricity and associated services for the Department of Public Utilities, in accordance with the terms and conditions as shown in the Master Service Agreement on file in the office of the Division of Power.  Total amount of modification No. 13 is ADD $8,900,000.00 for Wholesale Electric Power and $310,000.00 for Ancillary Services for a total of $9,210,000.00.  Total contract amount including this modification is $161,069,910.00.

 

SECTION 2.  That the expenditure of $9,210,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6300 Electricity Operating Fund, in object class 02 Supplies & Materials in the amount of $8,900,000.00, and in object class 03 Services in the amount of $310,000.00 per the accounting codes in the attachment to this ordinance.

 

SECTION 3.  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 4.  That this modification is in accordance with the relevant provisions of City Code, Chapter 329 relating to contract modifications.

 

SECTION 5.  That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.