HomeMy WebLinkAbout~Master - Professional Services Contract for Financial Modeling Study of a Gasification System RESOLUTION NO. 12-404
RESOLUTION APPROVING PROFESSIONAL SERVICES CONTRACT
FOR GASIFICATION SYSTEM FINANCIAL MODELING STUDY
FOR THE CITY OF AMES,IOWA
WHEREAS, in 2010, the City began investigating alternatives to the current method of
directly injecting Refuse-Derived Fuel (RDF) into the Electric Plant's coal-fired boilers, and the
current method of processing has several drawbacks; and,
WHEREAS, evolving federal regulations may actually force the City to move away from a
coal-fired power plant, and,
WHEREAS, in December 2011, the URS Corporation completed a feasibility analysis of
waste-to-energy conversion alternatives for the City at a cost of$89,600, and it made a series of
recommendations to improve the existing process, several of which were implemented; and,
WHEREAS, URS also provided a basic analysis of different technologies available to
convert waste into a"syngas"or liquid fuel,however,the cost estimates provided by URS were not
specific to the City's particular situation; and,
WHEREAS,after receiving the URS report,the Council directed staff to continue gathering
more information about gasification; and,
WHEREAS, in response, staff initiated a Financial Modeling Study to determine the costs
and technical viability of different gasification alternatives as they would be integrated into Ames'
specific Municipal Solid Waste (MSW) and electricity portfolio; and,
WHEREAS,Electric Services is currently engaged in a parallel studyto consider alternatives
to provide electricity to the City, and this second study will determine the costs to integrate
gasification into several different combustion options, including options that could operate
independent of the Power Plant; and,
WHEREAS, this financial modeling will require that the firm consider the costs of
overcoming technical challenges associated with the new processes, including interfacing with
generation equipment, gas cleanup, emissions controls, emergency trip contingencies, and
permitting; and,
WHEREAS,on April 20,2012,the Request for Proposals(RFP)was issued to 27 firms,and
on May 18, responses were received from 7 firms; and,
WHEREAS, these proposals were reviewed by an evaluation team, and the three top firms
were invited for interviews; and,
WHEREAS,after combining results of two separate evaluations,it was determined that HDR
Engineering,Inc.,of Omaha,Nebraska,would be the most successful firm in completing the project;
and,
WHEREAS, in the FY 2012/13 Resource Recovery CIP and budget, $50,000 is earmarked
for a Financial Modeling Study, and an additional $43,705 will be required to fund this study; and,
WHEREAS, it is recommended that this additional funding come from the Resource
Recovery Fund balance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that award of the Professional Services Contract for the Gasification System Financial Modeling
Study to HDR Engineering, Inc., of Omaha, Nebraska, in an amount not to exceed $93,705.00 is
hereby approved.; and,the FY 2012/13 budget is hereby amended to reflect the additional funding
for this Study coming from the Resource Recovery Fund balance.
ADOPTED THIS 24`h day of July, 2012.
-Aaa4-e x a�muA&d
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Davis
Seconded by: Wacha
Voting aye: Davis, Larson, Orazem, Wacha
Voting nay: None Absent: Goodman, Szopinski
Resolution declared adopted and signed by the Mayor this 24"' day of July, 2012.