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HomeMy WebLinkAbout~Master - Waiving Purchasing Policy and Approve Contract for B100 Pilot Program RESOLUTION NO. 19-466 RESOLUTION APPROVING WAIVING PURCHASING AND POLICIES PERTAINING TO BIDDING AND APPROVE THE CONTRACT WITH OPTIMUS TECHNOLOGIES, INC., FOR THE B100 PILOT PROGRAM FOR THE CITY OF AMES,IOWA WHEREAS, in February 2019, Ames-based Renewable Energy Group (REG) and Optimus Technologies of Pittsburgh, Pennsylvania, presented their proposal for a 100% Biodiesel (B 100) Pilot Program to representatives from the City of Ames, Iowa DOT, and other municipalities; and, WHEREAS, the B 100 Pilot Program would require participant cities/agencies to provide five diesel-powered trucks as pilot vehicles to operate year-round on B 100 fuel,thereby taking full advantage of the B 100 low-carbon emissions; and, WHEREAS, REG would be the exclusive supplier of B100 at a discounted rate to the City and pay to fully equip the pilot trucks, making it possible to use B 100 year-round; and, WHEREAS, in support of the Ames City Council's initiative to promote city-wide environmentally sustainable projects, Fleet Services and the Public Works Street Division staff have researched the proposal and found it feasible and beneficial to the City, and, WHEREAS, currently the City's diesel trucks burn 20%biodisel blended with 80%ultra- low sulfur diesel (#2)(1320) during the warm months and 3%bio-blend(133) in the winter; and, WHEREAS, the City agrees to have REG as the exclusive B 100 supplier for the pilot program, REG agrees to pay for the five Optimus systems at $12,000 each including installation, and REG agrees to lease to the City of Ames a 12,000-gallon, above-ground fuel dispensary for $1 per year; and, WHEREAS, City staff proposes the fuel dispensary location to be on the City's Maintenance Facility grounds located at 2207 Edison Street; and, WHEREAS, Optimus Technologies, Inc., has developed a unique system to effectively use B 100 year-round, even in cold temperature; and, WHEREAS, Optimus sends#2 diesel fuel to the engine at startup, then directs the heat from the engine to warm the B100 tank to a specified operating temperature, then switches to B200 for the majority of the running time, even in cold temperatures; and, WHEREAS, when the operator shuts off the engine Optimus will run the engine for about 30 seconds to purge the B 100 from the engine's fuel lines and replacing it with petroleum diesel in preparation for the next cold engine start; and, WHEREAS, the Optimus system is backed with more than ten years of research and development and it has been successfully implemented in fleets in Chicago and Washington DC; and, WHEREAS, REG and Optimus have presented Contract Agreements to the City of Ames, which have been reviewed by the City's Legal Department; and, WHEREAS, the pilot program will continue for three years beginning at the completion of the installation of the Optimus Systems onto the pilot trucks, or December 1, 2019, which is first. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the waiver of the Purchasing Policies is hereby approved and the contract with Optimus Technologies, Inc., to supply and install the Optimus System on selected City vehicles, train City Fleet technicians to install and work on the system, and collect real-time data about the fuel use, system performance, and location of the pilot program vehicles, is hereby further approved. ADOPTED THIS 27"'day of August, 2019. Diane . Voss, City Clerk John A. Haila, Mayor Introduced by: Betcher Seconded by: Beatty-Hansen Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Martin,Nelson Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 27t1i day of August, 2019.