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HomeMy WebLinkAbout~Master - Approving Asset Managment Agreement/Pipeline Services for the Power Plant RESOLUTION NO. 20-516 RESOLUTION APPROVING ASSET MANAGEMENT AGREEMENT/PIPELINE SERVICES FOR THE POWER PLANT FOR THE CITY OF AMES,IOWA WHEREAS,this contract is to hire a firm to provide energy management services and these services include managing the City's natural gas transactions and gas pipeline transportation contracts; and, WHEREAS,the company will serve as a bridge between the natural gas commodity already under contract,the delivery services already under contract,and the load management of the City's actual gas needs; and, WHEREAS, the contract is to provide Asset Management Agreement (AMA)/Pipeline Services for the period from October 1, 2020, through September 30, 2023, with a provision that would allow the City to renew the contract for up to two additional one-year terms; and, WHEREAS, on May 29,2020, a Request for Proposals was issued to 13 firms and on June 26, 2020, three proposals were received; and, WHEREAS, based on the average scores and a unanimous decision by the evaluation committee, staff is recommending that the contract be awarded to Alliant Energy, of Madison, Wisconsin; and, WHEREAS, to accomplish the City's needs, Alliant Energy has provided three separate Agreements, each providing a different service; and, WHEREAS, these are (1)North American Energy Standards Board(NAESB) Agreement with Interstate Power and Light (Alliant's Iowa-based company), (2) North Amercian Energy Standards Board(NAESB)Agreement Special Provisions with Interstate Power and Light, and(3) an Asset Management Agreement; and, WHEREAS, the Asset Management Agreement(AMA) manages (1)the pipeline capacity the City has under contract with Northern Natural Gas Company, (2)the natural gas supply the City purchased from Macquarie, and(3)the scheduling and balancing of our natural gas; and, WHEREAS,balancing of the natural gas involves matching the amount scheduled with the amount consumed and Alliant (IPL"s parent company) will charge the City of Ames $18,000 per year for the basic services; and, WHEREAS, under the AMA Agreement, services are charged based on the price of the natural gas at the time of purchase plus a fee, and it is unclear at this time how much of these services will be required each day, and, WHEREAS, staff is requesting that an amount not-to-exceed$300,000 be approved so that staff, together with Alliant, 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 Asset Management Agreement/Pipeline Services for Power Plant with Interstate Power&Light, of Madison, Wisconsin, from October 1, 2020, through September 30, 2023, with two additional one-year renewals in an amount not to exceed$18,000 to manage a)pipeline capacity under contract with Northern Natural Gas Company; b) natural gas supply from Macquarie, and c) schedulingibalancing natural gas and authorizing purchase of additional natural gas,plus delivery, as needed, in an amount not to exceed $300,000 is hereby approved. ADOPTED THIS 22nd day of September, 2020. Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Gartin Seconded by: Corrieri Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 22nd day of September, 2020.