Title
RESOLUTION AUTHORIZING AN AGREEMENT WITH HALLETT RAILROAD STORAGE AND SERVICES FOR THE UNLOADING, LOADING, STOCKPILING, MATERIAL HANDLING AND STORAGE OF COAL FOR AN AMOUNT NOT TO EXCEED $176,000.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into an agreement in the form substantially attached as Exhibit A with Hallett Railroad Storage and Services for unloading, loading, stockpiling, material handling and storage of coal for an amount not to exceed $176,000, payable from 540-920-1490-5387 (steam, Steam Department, steam production, coal).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes an agreement with Hallett Railroad Storage and Services (HRSS) to receive, manage and store coal for up to five years.
The current infrastructure of the DES facility requires coal as a backup fuel source. The facility has a limited capacity for storing material onsite, and a supply needs to be readily available nearby in the event of extreme cold or disruption of the primary fuel source. HRSS has the capacity to receive trainloads of material, offload it, stockpile it, manage the stockpile of material to prevent loss, and load the material onto DES-contracted trucks to be delivered as needed. With the closing of Midwest Energy Resource Company, HRSS is the only company in the area who is able to provide all the necessary services for this material within the allotted timeframe.