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HomeMy WebLinkAbout~Master - Contract Renewal for Furnishing Gases and Cylinders to the Power Plant RESOLUTION NO.20-633 RESOLUTION APPROVING CONTRACT RENEWAL FOR FURNISHING GASES AND CYLINDERS TO THE POWER PLANT FOR THE CITY OF AMES WHEREAS, this is a renewal of a contract with Airgas USA, LLC, of Des Moines, Iowa, for the purchase of gases and cylinders when needed at the City's Power Plant; and, WHEREAS,the gases required for the Power Plant operations include hydrogen,nitrogen,carbon dioxide, and commercial methane; and, WHEREAS,this contract is to furnish gases and cylinders for the Power Plant for the period from January 1,2021,through December 31,2021; and, WHEREAS,the average increase in gas costs for this renewal is approximately 4%; 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 this is the first out of the four maximum renewals; and, WHEREAS,the benefits of having a contract for these services in place include the following: l. Consistency of work and quality from a single contractor 2. Reduction in the City's exposure to market forces regarding prices and availability for gases 3. Rapid contractor mobilization when gas is needed in emergency situations, thus reducing generation downtime 4. City staff time saving in obtaining quotes,evaluating bids,and preparing specifications and other procurement documentation WHEREAS, the actual cost of the invoices will be based on the amount of gases and cylinders purchased and the approving FY 2020/21 and requested FY 2021/22 operating budget each includes$32,000. NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa,that the contract renewal with Airgas USA,LLC,of Des Moines,Iowa,in an amount not to exceed$32,000 is hereby approved. ADOPTED THIS 8ffi day of December, 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 8r''day of December, 2020.