HomeMy WebLinkAbout~Master - Contract for AMA Addendum for AMA/Pipeline Services for Power Plant RESOLUTION NO. 15-668
RESOLUTION AWARDING CONTRACT FOR ASSET MANAGEMENT
AGREEMENT (AMA)ADDENDUM FOR BASIC SERVICES FOR POWER PLANT
FOR THE CITY OF AMES
WHEREAS,Electric Services is in the process of converting both of the Power Plant's coal-
fired generators to use natural gas, and once the units are converted, the Power Plant will burn
natural gas daily to consume refuse-derived fuel and generate electricity; and,
WHEREAS,this contract is to hire a firm to provide asset management services that will be
responsible to manage the City's natural gas purchases and gas pipeline transportation contracts;and,
WHEREAS,the company will serve as a bridge between the natural gas commodity already
under contract and the delivery services already under contract; and,
WHEREAS, this contract is to provide Asset Management Agreement (AMA)/Pipeline
Services for the period from January 1,2016,through December 31,2016,and the contract includes
a provision that would allow the City to renew the contract for up to four additional one-year terms;
and,
WHEREAS, on June 1, 2015, a Request for Proposal (RFP) was issued to 12 firms for
proposals, and on June 19,proposals were received from five firms; and,
WHEREAS, based on the averaged scores and a unanimous decision by the evaluation
committee, staff is recommending that the contract be awarded to BP Canada Energy Marketing
Corporation of Omaha,Nebraska; and,
WHEREAS, to accomplish the City's needs, BP has provided three separate agreements,
each providing a different service, and these are: (1)an Asset Management Agreement Addendum
(AMA), (2) an AMA Transaction Confirmation, and(3) a Transaction Confirmation; and,
WHEREAS,the basic services are included in the AMA Addendum,and this agreement(1)
the pipeline capacity the City has under contract with Northern Natural Gas Company,(2)the natural
gas supply the City purchased from Macquarie,and(3)the scheduling and balancing of our natural
gas. "Balancing"involves matching the amount scheduled with the amount consumed; and,
WHEREAS, BP will charge the City of Ames $30,000 per year for the basic services.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the Asset Management Agreement Addendum with BP Canada Energy Marketing Corporation
of Omaha,Nebraska, in the amount of$30,000 per year for the basic services is hereby approved.
ADOPTED THIS 27t' day of October, 2015.
A. tom• ���
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Nelson
Seconded by: Orazem
Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 27th day of October, 2015.