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HomeMy WebLinkAbout~Master - Waiving Purchasing Policy and Approve Contract with Renewable Energy Group for the B100 Pilot Program RESOLUTION NO. 19-467 RESOLUTION APPROVING WAIVING PURCHASING AND POLICIES PERTAINING TO BIDDING AND APPROVE THE CONTRACT WITH RENEWABLE ENERGY GROUP 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)(B20) 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, Renewable Energy Group is the largest producer and marketer of biomass based fuel, with their Global Corporate Headquarters located in Ames; and, WHEREAS, REG operates 10 bio-refineries in the United States, with expected 2019 production greater than 500 million gallons. 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 Renewable Energy Group(REG)to be the exclusive provider to the City for 100%of the B 100 required for the duration of the City's B 100 Pilot Program,to sell B 100 to the City at the price five-cents below the Des Moines area Gross Rack Average price per gallon for#2 Ultra Low Sulfur Diesel,to lease on 12,000 gallon,above-ground B 100 dispensary to the City for$1 per year for the duration of the pilot program, and pay to equip and install the Optimus System on five snow plow trucks, is hereby further approved. ADOPTED THIS 27"'day of August, 2019. Diane . Voss, City Clerk John A. Haila, Mayor Introduced by: Beatty-Hansen Seconded by: Betcher 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.