HomeMy WebLinkAbout~Master - Purchase of additional natural gas for AMA/Pipeline Services for Power Plant RESOLUTION NO. 17-712
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, 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 two separate renewal agreements, each providing a different
service; these are, 1) an AMA Transaction Confirmation; and, 2) 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 $300,000 be approved so that
staff; 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 $300,000 is hereby approved.
ADOPTED THIS 191' day of December, 2017.
`L�Ad,
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 19" day of December, 2017.