HomeMy WebLinkAbout~Master - Coal Transportation Contract with Williams Bulk Transfer, Inc. RESOLUTION NO. 04-327
RESOLUTION APPROVING THE FIVE-YEAR
COAL TRANSPORTATION CONTRACT
WITH WILLIAMS BULK TRANSFER,INC.
FOR THE CITY OF AMES
WHEREAS, the current coal contract with Cargill Power Markets, LLC,providing for both
the supply and transportation of coal to the Ames Power Plant, expires on August 30, 2004; and,
WHEREAS,in anticipation ofthis deadline,the Electric Services Department sought proposals
for these two services; and,
WHEREAS,on May 11,2004,the City Council approved a new five-year coal supply contract
with Peabody COALTRADE, Inc.; and,
WHEREAS,after reviewing the two proposal received by the City,the City Council authorized
the staff, on March 23, 2004, to negotiate a five-year coal transportation agreement with Williams
Bulk Transfer, Inc. (a division of Alliant Energy Transportation Company); and,
WHEREAS,the proposed agreement includes provisions for the rail transportation of the coal
from Wyoming to Williams, Iowa, as well as the trucking of the coal from Williams to the Ames
Power Plant; and,
WHEREAS,this agreement requires the Utility to purchase at least 225,000 tons of coal each
year; and,
WHEREAS, given the anticipated benefits derived from securing a source of coal over an
extended period at a relatively stable cost,approval of this agreement is the preferred course of action.
NOW,THEREFORE,BE IT RESOLVED by the City Council ofthe City ofAmes,Iowa, that
the five-year Coal Transportation Agreement with Williams Bulk Transfer,Inc., is hereby approved.
ADOPTED THIS 27th day of July, 2004.
Diane R. Voss, City Clerk Ted Tedesco, Mayor
Introduced by: Wirth
Seconded by: Mahayni
Voting aye: Goodhue, Goodman, Mahayni, Vegge, Wirth
Voting nay: None Absent: Cross
Resolution declared adopted and signed by the Mayor this 27ffi day of July, 2004.