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HomeMy WebLinkAbout~Master - Waiver of Purchasing Policies to initiate contract negotiations with Frontline Bioenergy for Refuse-Derived Fuel Conversion System RESOLUTION NO. 14-417 RESOLUTION APPROVING WAIVER OF PURCHASING POLICIES,AND AUTHORIZING STAFF TO INITIATE CONTRACT NEGOTIATIONS FOR REFUSE- DERIVED FUEL CONVERSION SYSTEM FOR THE CITY OF AMES,IOWA WHEREAS, since the City's Resource Recovery Plant (RRP) first opened in 1975, the practice of burning refuse-derived fuel (RDF) along with coal has been a very effective way to reduce landfilled waste and co-fire the City's Power Plant; and, WHEREAS, in 2008, the power market began to flip, making the internal production of energy a more expensive option compared to purchasing power from the power grid; and, WHEREAS, in addition, federal environmental mandates led the Power Plant to begin studying conversion from coal to natural gas,and this provided a timely opportunity to explore other waste-to-energy technologies; and, WHEREAS, in October 2010,the City Council awarded a contract to URS Corporation to prepare a feasibility study of current Waste to Energy (WTE) conversion alternatives, and URS examined six unique conversion methods and determined that thermal gasification would be the most viable alternative conversion process for the City, from a technological standpoint; and, WHEREAS,in November 2013,the Council determined that the City's Power Plant would be switched to natural gas as the primary boiler fuel source; and, WHEREAS, since reporting to the Council in 2013, staff has continued to explore potential RDF to gas conversion technology options at the Resource Recovery Plant; and, WHEREAS, staff has researched and had discussions with several vendors and consultants about projects that are at a commercial scale and at a size sufficient to accommodate our community's future needs; and, WHEREAS,the City's ongoing research of viable options has led us to Frontline Bioenergy, LLC, of Ames, Iowa; and, WHEREAS, this firm has an existing commercial scale gasification technology, and it appears that this technology could be integrated into the Ames WTE system under financially advantageous terms; and, WHEREAS, staff is requesting that the City Council waive the City's purchasing policies requiring formal competitive bids,authorize staff to work with Frontline to thoroughly vet its system, and then to potentially enter into negotiations with Frontline Bioenergy, LLC of Ames, Iowa for a contract to provide a commercial scale gasification-to-electricity operation; and, WHEREAS, the negotiated agreement would come before the City Council for final approval. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that waiver of the City's Purchasing Policies for competitive bidding is hereby approved; staff is hereby authorized to vet Frontline Bioenergy, LLC, of Ames, Iowa, and its commercial scale gasification-to-electricity operation;and,if successful,staff is further authorized to initiate contract negotiations with Frontline Bioenergy, LLC. ADOPTED THIS 22nd day of July, 2014. Adrew Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Orazem Seconded by: Nelson Voting aye: Corrieri, Gartin, Goodman,Nelson, Orazem Voting nay: None Absent: Betcher Resolution declared adopted and signed by the Mayor this 22nd day of July, 2014.