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HomeMy WebLinkAbout~Master - Renewal of contract for Asset Management Agreement Addendum for basic services RESOLUTION NO. 16-648 RESOLUTION APPROVING RENEWAL OF ASSET MANAGEMENT AGREEMENT(AMA)FOR BASIC SERVICES FOR POWER PLANT FOR THE CITY OF AMES WHEREAS, over the past year, Electric Services converted both of the Power Plant's coal- fired generators to use natural gas; the Power Plant now typically burns 12,000 MMBtu of natural gas daily to generate electricity and consume refuse-derived fuel; and, WHEREAS, this contract is for a firm to provide its asset management services to manage the City's natural gas purchases and gas pipeline transportation contracts; the contracted company serves as a bridge between the natural gas commodity already under contract and the delivery services already contract; and, WHEREAS, on October 27, 2015, the Council awarded a contract to BP Canada Energy Marketing Corp. of Omaha, Nebraska, for the AMA/Pipeline services for the City of Ames in an amount not to exceed$30,000 for the base services; and, WHEREAS, this is the first renewal out of four maximum for the AMA Addendum(for basic services); and, WHEREAS, this is an Addendum to the North American Energy Standards Board Agreement the City and BP Canada have already signed; (1) it manages 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; and, WHEREAS, "balancing" involves matching the amount scheduled with the amount consumed, and 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 renewal of the contract with BP Canada Energy Marketing Corp. of Omaha, Nebraska, for the AMA Addendum for basic services in an amount not to exceed $30,000 is hereby approved. ADOPTED THIS 15t' day of November, 2016. �[ 1I�{�J f 1 `�.��..��]/ �tiJt� cam'• ��� Diane R. Voss, City Clerk Arm H. Campbell, Mayor Introduced by: Gartin Seconded by: Corrieri Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 15t''day ofNovember, 2016.