HomeMy WebLinkAbout~Master - Renewal of Electric Servcies Diesel Fuel Supply Contract RESOLUTION NO. 20-278
RESOLUTION APPROVING RENEWAL OF
ELECTRIC SERVICES DIESEL FUEL SUPPLY CONTRACT
FOR THE CITY OF AMES,IOWA
WHEREAS, this contract is for the purchase of #2 low sulfur diesel fuel for Electric
Services; and,
WHEREAS,the utility has a 250,000-gallon main fuel tank located at the Dayton Substation
to fuel the two gas-turbine units and the two gas-turbine unites could burn 250,000 gallons of fuel
in a 60-hour time period, requiring larger refill volumes and quick refills should an emergency
dictate that they stay on-line; and,
WHEREAS,the scope of work for this contract includes supplying fuel to gas turbine units
as needed; and,
WHEREAS,on August 27,2019,the Council awarded a contract to Diamond Oil Company
of Des Moines, Iowa,to supply diesel fuel under this contract from August 28,2019,through June
30, 2020; and,
WHEREAS,the contract includes a provision that would allow the City to renew the contract
for up to four additional one-year terms,and the proposed renewal contract would be the first of the
four optional terms; and,
WHEREAS, the approved FY 2020/21 operating budget includes $300,000 for the fuel
purchase; and,
WHEREAS, it should be noted that under the Diamond Oil contract, the Power Plant can
take delivery from two distinct points: Buckeye and Magellan; and,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that renewal of the contract with Diamond Oil Company of Des Moines, Iowa, in the amount of a
($0.0062)deduct off the Magellan"rack"fuel price, and in the amount of$0.0163 increase off the
Buckeye "rack" fuel price with a total amount not-to-exceed$300,000 is hereby approved.
ADOPTED THIS 26t' day of May, 2020.
ci��j MAW
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Gartin
Seconded by: Beatty-Hansen
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 26' day of May, 2020.