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HomeMy WebLinkAbout~Master - Waiver of Purchasing Policy Requirement to solicit bids for Ames Power Plant Coal RESOLUTION NO. 15-030 RESOLUTION WAIVING PURCHASING POLICY REQUIREMENTS TO SOLICIT BIDS FOR COAL CONTRACT FOR THE CITY OF AMES,IOWA WHEREAS,the Ames Municipal Electric System(AMES)operates two power generating facilities for the primary purpose of providing electric power to the City's electric customers; and, WHEREAS,both units burn ultra-low sulfur sub-bituminous coal as the primary fuel; and, WHEREAS, for the past five years, the City has had a contract with the Peabody COALSALES, LLC, for its North Antelope Rochelle Mine (HARM) coal from the Powder River Basin located in Campbell County, Wyoming; and, WHEREAS,the power plant has used this coal as its primary fuel continuously for more than 22 years; and, WHEREAS, the NARM coal is a premier ultra-low sulfur sub-bituminous coal that has proved to be a very compatible fuel for our pulverized coal-fired boilers; and, WHEREAS, on February 12, 2013, the City Council authorized waiving the City's Purchasing Policy requirement to solicit bids for coal and approved an amendment to the original agreement with Peabody COALSALES, LLC, to supply coal for the City of Ames Steam Electric Plant for the period January 1, 2013, through December 31, 2015; and, WHEREAS, current plans call for the natural gas conversion project to be completed by April 2016, with the use of coal to be discontinued in December 2015; and, WHEREAS, staff is requesting that the Council waive the Purchasing Policy requirements to solicit bids for the coal contract. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that waiver of the City's Purchasing Policies requirements to solicit bids to supply coal for the City of Ames Steam Electric Plant is hereby approved., ADOPTED THIS 13th day of January, 2015. W Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Corrieri Seconded by: Nelson Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 13`h day of January, 2015.