Ames, Iowa Development News

Ames City Council to Consider $75M Contracts for New Municipal Energy Center Engines and Transformer

The Ames Municipal Energy Center project is moving forward with plans to add three Rice units, totaling approximately 54 megawatts. The city is seeking council approval for two significant contracts related to this $192 million project: a $2.3 million contract for a General Electric generator step-up transformer from Calhoun Sales, with a 30+ month delivery lead time, and a contract estimated around $73 million for three large-bore, dual-fuel Rice engines from Wartzilla North America. The engine contract has a price validity and manufacturing slot deadline of July 31st. Staff presented a detailed comparison of bids received for the engines, recommending Wartzilla based on a scoring matrix that considered cost, technical compliance, performance, schedule, and other factors. Funding for the project will come from bond issuance, with financial analysis suggesting a combination of savings from ceasing waste-to-energy operations and a projected annual rate increase of 2.5% for 18 years, followed by 1.5% for 12 years, will be sufficient. Council members raised questions about the high upfront payment required by Wartzilla ($35 million deposit), the cost and necessity of a surety bond ($1.5 million), and the long-term maintenance costs. The city intends to handle maintenance internally over time, leveraging staff expertise.