HomeMy WebLinkAbout~Master - Resolution authorizing staff to enter into natural gas supply contract for Power PlantRESOLUTION NO. 25-583
RESOLUTION AUTHORIZING STAFF TO ENTER INTO A
NATURAL GAS SUPPLY CONTRACT FOR POWER PLANT
FOR THE CITY OF AMES, IOWA
WHEREAS, over the past several years, the City has benefited from extremely
advantageous guaranteed natural gas prices through the expiring long -term contract.
Natural gas futures pricing is considerably higher than the expiring terms. Staff is
concerned that the window for prices to drop is closing, and prices will again begin rising
as winter weather and market uncertainty approach; and,
WHEREAS, there does not appear to be a risk-free option available to the City
Council since the strategy with the least impact to electric customers, also has the highest
impact to Resource Recovery System, and vice versa; and,
WHEREAS, staff recommended a blended cost, and secures enough natural gas
on contract to burn the majority of the Refuse Derived Fuel (RDF) that could be consumed
in a typical year. Under this alternative staff will continue to pursue options for reducing
the volume of waste received through recycling and other waste diversion programs.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames,
Iowa, that authorizing staff to approve amendments to the contract with Macquarie Energy
LLC, Houston, TX, to extend the existing natural gas supply contract for a term of not
more than six months in monthly or seasonal increments at prices to achieve a total cost
of not more than $7,000,000, for the gas quantities described below is hereby approved.
• Purchase 8,000 MMBtu/day and divert haulers from the Resource Recovery Plant
directly to Boone County Landfill approximately 2 days/week
• Purchase gas only on the spot market, under no secure gas contract, and divert
haulers from the Resource Recovery Plant directly to Boone County Landfill
approximately 2 days/week
ADOPTED THIS 18th day of November, 2025.
_______________________________ _________________________________
Renee Hall, City Clerk John A. Haila, Mayor
Introduced by: Gartin
Seconded by: Beatty-Hansen
Voting aye: Beatty-Hansen, Betcher, Gartin, Junck, Rollins
Voting nay: None Absent: Corrieri
Resolution declared adopted and signed by the Mayor this 18th day of November, 2025.