HomeMy WebLinkAbout~Master - Renewal of Electric Services Diesel Fuel Supply Contract RESOLUTION NO. 21-228
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 provide these services; 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 second of the
four optional terms; and,
WHEREAS,the renewal period for this contract is from July 1,2021 through June 30,2022;and,
WHEREAS,the approved FY 2021/22 operatingbudget includes$300,000 forthe 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.
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 27'day of April, 2021.
Diane . Voss, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Junck
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck,Martin
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 27`h day of April, 2021.