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HomeMy WebLinkAbout~Master - Change Order No. 3 for Energy Resource Options Study RESOLUTION NO. 13-296 RESOLUTION APPROVING CHANGE ORDER NO. 3 FOR ENERGY RESOURCE OPTIONS STUDY FOR THE CITY OF AMES,IOWA WHEREAS,the Energy Resource Options Study was meant to assess the electric generating and power supply options to satisfy the City's future electrical power requirements; and, WHEREAS, on May 22, 2012, City Council awarded a contract to Black & Veatch Corporation of Kansas City,Missouri,for this study in the not-to-exceed amount of$375,000; and, WHEREAS,the initial findings of the Energy Resource Options Study performed by Black & Veatch indicated that the most viable option for the City's Steam Electric Plant (Units 7 and 8) was to continue to burn historic fuels (coal, RDF, and fuel oil); and, WHEREAS, this option required the following work on our units to comply with existing and anticipated environmental regulations: 1)installation of dry sorbent injection(DSI)systems for acid gas control;2)installation of powder activated carbon(PAC)systems for mercury control;and, 3) conversion of Unit 8 electrostatic precipitator (ESP) from hot-side to cold-side for enhanced particulate matter(PM) control; and, WHEREAS,in Black&Veatch's judgment,this option would provide compliance,but with a narrow and somewhat unquantifiable margin of safety,and as a result of this conclusion,City staff was uncomfortable with projected compliance margin of safety; and, WHEREAS, the recommended action by the consultant to add a fabric filter baghouse alleviated most of the staff s concerns, however, this action would cause Unit 8 to be derated by approximately 17 megawatts; and, WHEREAS, this loss of capacity would have to be replaced by either: 1) adding a new generating unit (most likely a new combustion turbine), 2) purchasing long-term capacity from another utility or from the MISO power market, or 3)by modifying (primarily by adding fans and "stiffening"key structures) our existing units to retain their historical generating output; and, WHEREAS, of the three, the most economically feasible and reliable option appears to be the last--to modify the units so that their historical generating output would be retained; and, WHEREAS, to study the City's Steam Electric Plant's units to determine what specifically must be done to modify them so that their historical generating output is retained,requires detailed analyses and engineering of the unit's equipment and structures well beyond the study's original scope of work; and, WHEREAS, for this reason, the third change order is now needed to study two additional cases whereby Unit 7 &Unit 8 would continue to burn historical fuels(coal,RDF, and fuel oil), in compliance with existing and anticipated environmental regulations, and without derating their output; and, WHEREAS,the estimated cost for this engineering work requ4ested in Change Order No. 3 is not to exceed $89,700; and, WHEREAS,the funding for this study will come from the Electric Administrations"Outside Professional Services"budget($65,473.90 remaining in 2012/13, and $24,226.10 in 2013/14). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that Change Order No. 3 with Black&Veatch Corporation of Kansas City,Missouri,in an amount not to exceed $89,700 for the Energy Resource Options Study is hereby approved. ADOPTED THIS 25th day of June, 2013. Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Larson Seconded by: Goodman Voting aye: Davis, Goodman, Larson, Szopinski, Wacha Voting nay: None Absent: Orazem Resolution declared adopted and signed by the Mayor this 251h day of June, 2013.