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HomeMy WebLinkAbout~Master - Contract renewal for AMA Transaction Confirmation with BP Canada RESOLUTION NO. 17-710 RESOLUTION APPROVING RENEWAL OF ASSET MANAGEMENT AGREEMENT (AMA)TRANSACTION CONFIRMATION FOR POWER PLANT FOR THE CITY OF AMES WHEREAS, 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; and, WHEREAS, BP has provided two separate renewal agreements, each providing a different service, and this renewal is for an AMA Transaction Confirmation; and, WHEREAS, the AMA Transaction Confirmation agreement outlines the terms and conditions when the actual amount of natural gas burned in a day is less than 12,000 dekathenms; for these events, BP Canada will sell or store the excess gas on behalf of the City and credit the City the revenue; and, WHEREAS, this agreement outlines the terms and conditions when the actual amount of natural gas burned in a day is greater than 12,000 dekatherms; for these events, BP Canada will sell or store the excess gas on behalf of the City and credit the City the revenue. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that renewal of the contract with BP Canada Energy Marketing Corp. of Omaha, Nebraska, for AMA Transaction Confirmation is hereby approved. ADOPTED THIS 19t' day of December, 2017. 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 19t''day of December, 2017.