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HomeMy WebLinkAbout~Master - Engineering Services Contract for conversion of Electric Power Plant from coal to natural gas RESOLUTION NO. 14-324 RESOLUTION APPROVING ENGINEERING SERVICES AGREEMENT FOR CONVERTING THE POWER PLANT FROM COAL TO NATURAL GAS FOR THE CITY OF AMES,IOWA WHEREAS,in recent years the electric utility industry,and particularly utilities with fossil- fueled generation resources,has been challenged by the introduction of several major environmental regulations promulgated by the United States Environmental Protection Agency(EPA); and, WHEREAS,at the same time,the price and supply of natural gas has improved significantly in the United States; and, WHEREAS, these two factors together have forced the industry to seriously evaluate its strategies of how to generate electric power; in the face of these forces, the City of Ames,with its two coal-fired generating units 47 and 32 years old,has carefully assessed its future role of supplying power for the City's electric ratepayers; and, WHEREAS,on November 12,2013,the City Council voted to convert the City's powerplant from coal to natural gas,implementing this decision will require a significant amount of engineering, installation of equipment, and modification and construction in the power plant; and, WHEREAS, the first order of business following Council approval last November was for staff to develop and write a scope of work and specification for the engineering services needed to convert the power plant from coal to natural gas; and, WHEREAS, on March 25, 2014, the City issued a Request for Proposal (RFP) for "Engineering Services for Converting the City of Ames Steam Electric Plant from Coal to Natural Gas, "and the RFP documents were issued by the City to 24 engineering firms; and, WHEREAS,on April 25,2014,the City received competitive proposals from nine firms,and members of a select committee evaluated these proposals; and, WHEREAS, based on the results of the committee members' evaluations, it was the unanimous decision by the committee to recommend that a contract for this work be awarded to Sargent&Lundy, LLC, of Chicago, Illinois, in an amount not to exceed $1,995,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the Engineering Services Agreement with Sargent & Lundy, LLC, of Chicago, Illinois, in an amount not to exceed$1,995,000 for converting the City of Ames Power Plant from Coal to Natural Gas is hereby approved. ADOPTED THIS 27`h day of May, 2014. CAI�--Lia& /&-� o tfl. eaosoa� Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Corrieri Seconded by: Betcher Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson Voting nay: None Absent: Orazem Resolution declared adopted and signed by the Mayor this 27`h day of May, 2014.