HomeMy WebLinkAbout~Master - Contract renewal to Supply Diesel Fuel to Power Plant RESOLUTION NO. 15-251
RESOLUTION APPROVING RENEWAL OF CONTRACT FOR
SUPPLY OF DIESEL FUEL TO POWER PLANT
FOR THE CITY OF AMES,IOWA
WHEREAS,this contract is for the purchase of low sulfur diesel fuel for Electric Services;
and,
WHEREAS, in May 2011, the City received competitive sealed proposals from five firms
for FY 2011/12 with the option of four one-year renewals; and,
WHEREAS,the scope of work for this contract included supplying fuel to the Power Plant
as needed, and vendors were asked to supply pricing based in the form of a markup to the daily-
published"rack" average fuel price at the Des Moines, Iowa, terminal for stated products; and,
WHEREAS, on June 14, 2011, the City Council awarded a contract to Diamond Oil
Company of Des Moines, Iowa,to supply diesel fuel to be supplied as requested from July 1,2011,
through June 30, 2012, in a not-to-exceed amount of$1,250,000; and,
WHEREAS, this is renewal number four out of four optional renewal periods; and,
WHEREAS, actual cost will be based on the amount of fuel purchased the contract price at
the time of purchase plus an adder of$0.0068 per gallon; and,
WHEREAS, the approved FY 2015/16 operating budget includes $487,500 for anticipated
volumes of this fuel purchase; and,
WHEREAS, with conversion of the Power Plant from coal to natural gas, the budgeted
amount is lower because diesel will no longer be used for plant light-off.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that renewal of the contract with Diamond Oil Company of Des Moines,Iowa,to supply diesel fuel
to the City's Power Plant from the period of July 1, 2015,through June 30, 2016, in an amount not
to exceed $487,500 is hereby approved.
ADOPTED THIS 28th day of April, 2015.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Nelson
Seconded by: Goodman
Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 281h day of April, 2015.