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HomeMy WebLinkAbout~Master - Purchase of additional natural gas through AMA/Pipeline Services for Power Plant RESOLUTION NO. 16-651 RESOLUTION APPROVING PURCHASE OF ADDITIONAL NATURAL GAS, PLUS DELIVERY AS NEEDED, FOR ASSET MANAGEMENT AGREEMENT (AMA)/PIPELINE 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, BP has provided three separate renewal agreements, each providing a different service; these are, 1) An Asset Management Agreement Addendum(AMA); 2) an AMA Transaction Confirmation; and, 3)a Transaction Confirmation; and, WHEREAS, under the AMA Transaction Confirmation and Transaction Confirmation agreements, services are charged based on the price of the natural gas at the time of purchase, plus a fee; and, WHEREAS, it is difficult to predict, at this time, how much of these services will be required each day, therefore, staff is requesting that an amount not to exceed $500,000 be approved so that stat together with BP Canada, can manage the daily gas needs over the coming year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that authorization for the purchase of additional natural gas, plus delivery as needed, to manage the day-to-day fuel needs of the Power Plant in an amount not to exceed $500,000 is hereby approved. ADOPTED THIS 151h day of November, 2016. .dam �� � �� Diane R. Voss, City Clerk Ann 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 15"day ofNovember, 2016.