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HomeMy WebLinkAbout~Master - Contract for Transaction Confirmation for Power Plant RESOLUTION NO. 15-670 RESOLUTION AWARDING CONTRACT FOR TRANSACTION CONFIRMATION 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 Transaction Confirmation Agreement outlines the terms and conditions when the actual amount of natural gas burned in a day is greater than 14,000 dekatherms; and, WHEREAS,under this agreement,services are charged based on the price of the natural gas at the time of purchase,plus a fee; and, WHEREAS,it is unclear at this time how much of these services will be required each day, therefore, staff is requesting that an amount not to exceed$3,000,000 be approved. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the Asset Management Agreement Transaction Confirmation with BP Canada Energy Marketing Corporation of Omaha,Nebraska, is hereby approved. ADOPTED THIS 27"' day of October, 2015. Diane R. Voss, City Clerk Ann H. Campbell, Mayor AF 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.