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HomeMy WebLinkAbout~Master - Award of coal supply contract RESOLUTION NO.09-578 RESOLUTION APPROVING COAL SUPPLY CONTRACT FOR ELECTRIC SERVICES DEPARTMENT FOR THE CITY OF AMES WHEREAS, the City of Ames currently has contracts for both coal and coal delivery services that began on September 1, 2004, and will expire December 31,2009; and, WHEREAS,currently,the City's coal is transported from the mine via the Burlington Northern Santa Fe Railroad and the Canadian National Railroad; and, WHEREAS,the coal is off-loaded under a transportation, storage,and delivery contract with Alliant Energy's Williams Bulk Transfer facility in Williams, Iowa, and it is then reloaded into trucks and hauled to the City of Ames Power Plant as requested by the City; and, WHEREAS,on July 28,2008,a Request for Proposals(RFP)was issued for coal supply and delivery beginning January 1,2010; and, WHEREAS,on September 3,2008,responses were received,and the proposal from Central Iowa Terminal(CIT) would have provided coal movement and delivery at a significant cost savings as compared to the other proposals, as CIT's proposed facility was to be constructed within nine miles of the Power Plant with a storage capability of 30,000 tons; and, WHEREAS,on November 6,2008,the Council directed staff to initiate negotiations with CIT,and the company attempted to secure permits and meet other requirements for construction of the facility near Nevada, Iowa, but was unable to do so; and, WHEREAS,on July 28,2009,the Council allowed Central Iowa Terminal to withdraw its proposal,rejected all proposals received under the RFP dated July 28,2008, and directed staff to issue a new RFP for coal and coal delivery services; and, WHEREAS,on August 21, 2009, a new RFP was issued, and staff is now recommending award of contract to Coal Sales,LLC, for coal produced by Peabody's North Antelope Rochelle Mine; and, WHEREAS,the base pricing proposed for this coal for the period of 2010 through 2012 is: $10.00/ton(2010), $12.00/ton(2011), and$13.00/ton(2012); and, WHEREAS, the City received only one proposal for transport, storage, and delivery services, and staff is continuing to negotiate contract terms for a coal transportation, storage, and delivery contract. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa,that the contract with Coal Sales,LLC,for the period of January 1,2010,through December 31,2012,for coal produced by Peabody's North Antelope Rochelle Mine is hereby approved,contingent upon the successful negotiation of a transportation,storage,and delivery contract with a separate vendor. ADOPTED THIS 22nd day of December,2009. Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Goodman Seconded by: Mahayni Voting aye: Doll, Goodman,Larson,Mahayni,Popken,Rice Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 22nd day of December,2009.