Council approves $76.79 million award for engines and $2.47 million transformer for Ames energy center

Electric Services Director Donald Comm and Assistant Director Curtis Spence returned with contract recommendations for the Ames Municipal Energy Center, asking council to award a generator step-up transformer to Calhoun Sales and three dual-fuel 18.13 MW engines to Wärtsilä North America.

Spence said the engines package — including equipment, controls, electrical gear, taxes and tariffs — would total roughly $70 million for the equipment plus estimated taxes and tariffs; council approved the complete Wärtsilä award inclusive of taxes, tariffs and a negotiated performance-and-supply surety bond that staff reported as $1,026,001.78 after negotiation. The council approved the transformer purchase, including taxes, for $2,470,416.

Officials discussed the short currency risk window — the price is fixed when Wärtsilä receives the first payment, due within seven days of signing — and staff said they would liquidate investments and wire the payment promptly if the contract is signed. Staff also said the contract includes protections limiting city liability for foreign change-of-law and force majeure scenarios and that legal counsel reviewed the final language.

Mayor (transcript speaker 1) and finance director Corey Goodno explained staff will bring a full financing plan to council at a later meeting; with these awards the staff estimated the total project remains roughly the previously discussed $192.6 million estimate, with the awarded equipment line adding notable obligations. Council approved both awards by roll call.