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HomeMy WebLinkAbout~Master - Agreements for coal supply for the Electric Utility RESOLUTION NO. 04-108 RESOLUTION APPROVING AGREEMENTS FOR COAL SUPPLY FOR THE ELECTRIC UTILITY FOR THE CITY OF AMES WHEREAS,the current coal supply agreement expires on August 30,2004,and this agreement is with Cargill Power Markets,LLC,which commenced on September 1, 1999; and, WHEREAS,this agreement includes coal rail transportation,transloading,and trucking to deliver coal to the power plant; and, WHEREAS,a Request for Proposal(RFP)for a five-year agreement was advertised and proposals were received on February 13, 2004; and, WHEREAS,transportation proposals were received from the Union Pacific Railroad Company and Alliant Energy Transportation Company, and Cargill Power Markets declined to offer a proposal; and, WHEREAS,coal supply proposals were received from Peabody COALTRADE,Inc.,Arch Coal Sales, Triton Coal Company, and Kennecott Energy; and, WHEREAS, Alliant Energy Transportation Company's proposal includes rail transportation from Wyoming to Williams, Iowa,where the coal will be unloaded and trucked to Ames; and, WHEREAS,the Union Pacific Railroad proposal does not offer a reliable movement for our needs;and, WHEREAS, the coal supply proposals offered were evaluated for a five-year ter, and the offer by Peabody COALTRADE,Inc., for coal from the North Antelope mine is the lowest evaluated cost; and, WHEREAS,the power plant has been using Peabody COALTRADE,Inc.,North Antelope coal since 1987 with excellent results. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa, that the five- year coal supply agreements for the Electric Utility with Alliant Energy Transportation for transport of the coal and with Peabody COALTRADE,Inc., for purchase of the coal are hereby approved. ADOPTED THIS 23`d day of March,2004. Diane R. Voss, City Clerk Ted Tedesco,Mayor Introduced by: Wirth Seconded by: Goodhue Voting aye: Cross, Goodhue, Goodman,Mahayni,Vegge,Wirth Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 23rd day of March,2004.