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.
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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.