HomeMy WebLinkAbout~Master - Contract renewal for Diesel Fuel Supply for Power Plant RESOLUTION NO. 17-282
RESOLUTION APPROVING RENEWAL OF DIESEL FUEL SUPPLY CONTRACT
FOR POWER PLANT
FOR THE CITY OF AMES
WHEREAS, this contract is for the purchase of#2 ultra low sulfur diesel fuel for Electric
Services, and the scope of work for this contract includes supplying fuel to gas turbine units as
needed; and,
WHEREAS, on May 24, 2016, the Council awarded a contract for supplying diesel fuel to
the City's Power Plant to Keck Energy of Des Moines, Iowa, in an amount not to exceed $300,000;
and,
WHEREAS, this contract includes a provision that would allow the City to renew the
contract for up to four additional one-year terms; and,
WHEREAS, staff recommends renewing the agreement for FY 2017/18, and this is the first
renewal out of four maximum; and,
WHEREAS, actual cost invoices will be based on the amount of fuel purchased and the price
of the fuel at the time of purchase minus a($0.0061) deduct; and,
WHEREAS, the goal of the contract is to create efficiency and flexibility in the purchase of
a valuable commodity, ensuring that the City is able to use opportunity purchasing and to lock in
performance criteria for the suppliers; and,
WHEREAS, the approved FY 2017/18 operating budget includes $300,000 for this fuel
purchase
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the contract renewal with Keck Energy of Des Moines, Iowa, to supply diesel fuel to the City's
Power Plant from July 1, 2017, through June 30, 2018, in an amount not to exceed $300,000 is
hereby approved.
ADOPTED THIS 91'' day of May, 2017.
A.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Gartin
Seconded by: Corrieri
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin,Nelson
Voting nay: None Absent: Orazem
Resolution declared adopted and signed by the Mayor this 9th day of May, 2017.