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File #: 1265-2020    Version: 1
Type: Ordinance Status: Passed
File created: 5/22/2020 In control: Public Utilities Committee
On agenda: 7/6/2020 Final action: 7/9/2020
Title: To authorize the Director of Public Utilities to enter into a Cooperation and Purchase Agreement, License Agreement, and Bill of Sale with the Ohio Power Company (“AEP Ohio”) and expenditure up to $50,000.00 from and within the Department of Water Operating Fund for the development, construction, and demonstration of a distributed energy resources (DER) micro-grid project; to waive the competitive bidding provisions of City Code; and declare an emergency. ($50,000.00)
Attachments: 1. Finance Coding 1265-2020, 2. Columbus LOC signed 1265-2020, 3. BID Waiver 1265-2020

Explanation

 

This legislation authorizes the Director of Public Utilities to enter into a Cooperation and Purchase Agreement, License Agreement, and Bill of Sale with Ohio Power Company (“AEP Ohio”), an Ohio corporation for the development, construction, and demonstration of a distributed energy resources (DER) technology micro-grid project (the “Project”) to serve the City’s Tussing Booster Station located at 3515 Hines Road in Pickerington, Ohio; appropriate up to $50,000 for the purchase of the energy storage system (BESS) and ground mounted solar photovoltaic system (solar PV) which are components of the Project; and waive Section 329 requirements of the Columbus City Code.

 

SUPPLIER:  Ohio Power Company dba American Electric Power (AEP), DAX Vendor #006032, EIN #31-4271000, Expires February 6, 2021.

Ohio Power Company dba American Electric Power (AEP) does not hold MBE / FBE status.

 

FISCAL IMPACT:  AEP Ohio will provide the City a rebate up to 95% to cover the majority of the BESS and solar PV systems in accordance with the stipulation and agreement (Case No. 16-1853-EL-AAM).  The estimated total cost of the Project is $1.2 million of which the City will pay up to $50,000 to purchase the BESS and solar PV.  

 

EMERGENCY DESIGNATION: The expected demonstration period for the project is February 1, 2021 through April 30, 2022.  This Project will be conducted in accordance with the stipulation and agreement (Case No. 16-1853-EL-AAM). In order to begin the demonstration period of the project in February 1, 2021 it is necessary to declare an emergency and legislate for the City’s portion of the Project funds to expedite Project development, construction, and demonstration. 

 

 

Title

 

To authorize the Director of Public Utilities to enter into a Cooperation and Purchase Agreement, License Agreement, and Bill of Sale with the Ohio Power Company (“AEP Ohio”) and expenditure up to $50,000.00 from and within the Department of Water Operating Fund for the development, construction, and demonstration of a distributed energy resources (DER) micro-grid project; to waive the competitive bidding provisions of City Code; and declare an emergency. ($50,000.00)

 

Body

 

WHEREAS, AEP Ohio and the Department of Public Utilities have worked cooperatively over the past six months to research and plan a distributed energy resources (DER) technology micro-grid project (the “Project”) at the Tussing Booster Station; and

 

WHEREAS, both AEP Ohio and the Department of Public Utilities wish to enter into a Cooperation and Purchase Agreement, License Agreement, and Bill of Sale to develop, construct, and demonstrate the functions of a distributed energy resources (DER) technology micro-grid project (the “Project”); and

 

WHEREAS, both AEP Ohio and the Department of Public Utilities wish to test the ability of the Project to provide a resilient, renewable power supply to the Tussing Booster Station and provide continuing distribution of drinking water to Division of Water customers in the event of an extended power outage; and

 

WHEREAS, the Project will be designed so that, in the event of an extended power outage, the energy generated by the solar PV will charge the BESS and the BESS will power the Tussing Booster Station for at least four hours to allow the facilities storage tanks to fill and provide water to customers; and   

 

WHEREAS, it is in the city's best to waive the competitive bidding provisions of City Code in order to authorize the Director of Public Utilities to enter into the Cooperation and Purchase Agreement and License Agreement; and

 

WHEREAS, this ordinance authorizes Director of Public Utilities to enter into the Cooperation and Purchase Agreement, License Agreement, and Bill of Sale; authorizes the expenditure of up to $50,000 for the project; and

 

WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities in that it is immediately necessary to authorize the Director to enter into these agreements to expedite project construction and demonstration, thereby preserving the public health, peace, property, and safety; now therefore

 

 

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:

 

SECTION 1.  That the Director of Public Utilities, be and hereby is, authorized to enter into a Cooperation and Purchase Agreement, License Agreement, and Bill of Sale with Ohio Power Company (“AEP Ohio”), an Ohio corporation for the development, construction, and demonstration of a distributed energy resources (DER) technology micro-grid project (the “Project”) to serve City’s Tussing Booster Station located at 3515 Hines Road in Pickerington, Ohio.

 

SECTION 2. That the expenditure of $50,000.00 or so much thereof as may be needed is hereby authorized in Water Operating 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 expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.

SECTION 4.  That this Council finds it is in the best interests of the City to waive the competitive bidding provisions of Chapter 329 of the City Code.

 

SECTION 5. That for the reasons states in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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 the passage if the Mayor neither approves nor vetoes the same.