HomeMy WebLinkAbout~Master - Contract for Supplying of Natural Gas to City's Power Plant RESOLUTION NO. 15-635
RESOLUTION APPROVING CONTRACT FOR SUPPLYING NATURAL GAS TO
CITY'S POWER PLANT FOR GAS CONVERSION PROJECT
FOR THE CITY OF AMES
WHEREAS, the Ames Municipal Electric System (AMES) is in the process of converting
both of its coal-fired generators over to use natural gas,and once the units are converted,AMES will
typically burn 12,000 MMBtu of natural gas daily along with refuse-derived fuel to generate the
electricity; and,
WHEREAS,this contract will be for the purchase of 12,000 MMBtu/per day of natural gas
for Electric Services for contract period anywhere from one,three, five, or ten years, depending on
which option is recommended by the City staff based on a financial analysis; and,
WHEREAS, it should be noted that this contract is for the purchase of the natural gas
commodity and does not include the transportation of the gas to Ames; and,
WHEREAS,the pricing of natural gas can be done under several arrangements,and the two
types being considered by the City are fixed price and index pricing; and,
WHEREAS,the goal of the contract is to create efficiency and flexibility in the purchase of
a valuable commodity, ensuring that the City is able to use opportunity purchasing and to lock in
performance criteria for the vendors; and,
WHEREAS, on October 13, 2015, the day of the City Council meeting, bids are to be
received by fax and/or e-mail to the Purchasing Division; and,
WHEREAS, Purchasing and Electric Service staff will review the bids, and develop a
summary of the bids with the intent of providing a recommendation, first to the Electric Utility
Operations Review and Advisory Board(EUORAB)in the afternoon,and then to the City Council
on the evening of October 13; and,
WHEREAS, it is anticipated that the City Council will be asked to approve a multi-year
agreement, rather than a one-year contract with renewal options; and,
WHEREAS, staff has received EUORAB's endorsement to bid for both Fixed and Indexed
price gas.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the award of a five-year contract to Macquarie Energy,LLC, of Houston, Texas, in the amount
of$3.02/Dht for supplying natural gas to the City's Power Plant is hereby approved.
ADOPTED THIS 13`h day of October, 2015.
A. tom• ���
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Betcher
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 131h day of October, 2015.