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HomeMy WebLinkAbout~Master - Renew of contract for Power Plant Diesel Fuel Supply RESOLUTION NO. 10-133 RESOLUTION APPROVING RENEWAL OF CONTRACT FOR POWER PLANT FUEL SUPPLY FOR THE CITY OF AMES WHEREAS, this contract is for the purchase of low sulfur diesel fuel for the Electric Services Department; and, WHEREAS,on March 6,2008,competitive sealed proposals were received from five firms, and the scope of work for this contract includes supplying fuel to the Power Plant; and, WHEREAS, the goal of the contract is to create efficiency and flexibility in the purchase of a valuable commodity, ensuring that the City is able to use opportunity purchasing and to lock in performance criteria for the vendors; and, WHEREAS,on July 8,2008,the Council awarded a contract to Keck,Inc.,of Des Moines,Iowa, to supply diesel fuel under this contract in an amount not to exceed$1,000,000 through June 30,2009,and the actual cost is based on the amount of fuel purchased and the contract price at the time of purchase;and, WHEREAS,on October 28,2008,the not-to-exceed amount was increased to$2,500,000 due to fluctuating fuel prices and increased usage of the combustion turbines; and, WHEREAS,this contract has the option for the City to renew in one-year increments for up to four additional years,and Electric Services staff is recommending renewal of the agreement for 2010/11;and, WHEREAS, there will be no change in the mark-up for the renewal period, and the 2010/11 operating budget at the Power Plant has $1,500,000 to cover the cost of this contract; and, WHEREAS,actual cost invoices will be based on the amount of fuel purchased and the price of the fuel at the time of purchase. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the contract renewal with Keck,Inc.,of Des Moines,Iowa,to supply diesel fuel to the City's Power Plant for the period from July 1,2010,through June 30,2011,in an amount not to exceed$1,500,000 is hereby approved. ADOPTED THIS 13-day of April, 2010. C���?. uAd& 40xot-v Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Wacha Seconded by: Davis Voting aye: Davis, Goodman, Mahayni, Larson, Orazem, Wacha Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 13-day of April, 2010.