HomeMy WebLinkAboutA001 - Council Action Form dated March 25, 2025ITEM #:14
DATE:03-25-25
DEPT:PW
SUBJECT:AWARD OF CONTRACT EXTENSION FOR HAULING SERVICES TO THE
BOONE COUNTY LANDFILL
COUNCIL ACTION FORM
BACKGROUND:
On June 25, 2019, City Council awarded a contract to Waste Management of Ames (WMA) for hauling
to Boone County Landfill and related services for the Resource Recovery Plant (RRP) during FY
2019/20. The contract was renewed for four additional one-year terms. A one-year extension was then
approved for FY 2024/25 and is set to expire on June 30, 2025.
The contract includes furnishing equipment and hauling of reject materials that cannot be
processed into refuse derived fuel (RDF) from RRP to the Boone County Landfill. The approved
FY 2025/26 budget includes $271,180 for this work. The contract is based on a per-mile, per-ton bid
amount and a round trip distance of 36 miles per trip. There is a provision in the contract to allow
longer hauls up to 120 miles per round trip as well as a provision to cancel the contract if this type of
service is no longer needed due to a change in disposal procedures.
The contract price is adjustable monthly throughout the contract period when diesel fuel is at or
above $5.00 per gallon or below $2.00 per gallon. The fuel adjustment is based on the published
index for monthly diesel fuel prices for the Department of Energy's (DOE) "Weekly Retail On-Highway
Diesel Prices" for the Midwest region on the first Monday of each month.
At the time of initial contract award in 2019, WMA was the only bid at $14.14/ton, with a 3.5%
increase each year for the initial five years of the contract. The current one-year extension included a
price increase of 16% beyond the annual increase of 3.5%, directly related to the increase in costs of
doing business (increases in labor, maintenance, insurance, etc.) that occurred over the last several
years. WMA did not request any additional increases to the contract renewal.
In February 2024, t he Boone County Landfill notified the City that it no longer wished to accept the
construction and demolition material from Story County by the end of June 2024, and all Story County
municipal solid waste by the end of June 2025. The 28E agreement and Central Iowa Solid Waste
Management Association contract is set to expire at the end of June 2025. The City is currently working
with other solid waste comprehensive planning areas to accept waste from Story County and the City of
Ames once the Boone County Landfill is no longer available.
As the City works to finalize an agreement with an alternative landfill partner, the Boone County
Landfill has expressed willingness to agree to an additional two year extension of the current 28E
agreement and contract, to accept municipal solid waste through June 30, 2027. This two-year
extension will allow the City to construct and implement the new Resource Recovery and Recycling
Campus (R3C).
Due to the potential for significant changes to waste hauling and disposal anticipated in the next
few years, and the significant equipment requirements of this contract, Resource Recovery is
requesting a two-year extension to continue hauling services through June 30, 2027.
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Waste Management offered a 5% increase for a one-year extension, or the City can lock in a 5%
annual increase with a two-year extension. The hauling rate of materials that cannot be processed
into RDF would increase from $19.50/ton to $20.48/ton for FY 2025/26 and $21.50/ton for FY
2026/27.
The two-year extension meets the City's transition date of June 30, 2027. City staff is pursuing the
possibility to own and operate the City's own fleet of trucks and trailers and may no longer need
the contract. At this point, it will be difficult to find another company that would want to establish
service for a two-year contract, knowing there will not be any extensions available. A one-year
extension with WMA leaves the final year at risk of a larger increase or the possibility that no
companies are able and willing to service the contract. WMA has agreed to a non-appropriation
clause for the two-year extension.
ALTERNATIVES:
1. Award a two-year contract extension to Waste Management of Ames in the amount of $20.48/ton
for FY 2025/26 and $21.50/ton for FY 2026/27.
2. Award a one-year contract extension for FY 2025/26 to Waste Management of Ames in the
amount of $20.48/ton.
3. Rebid the contract.
CITY MANAGER'S RECOMMENDED ACTION:
Landfill hauling and related services are an integral part of RRP operations. The per-ton price
for hauling is an acceptable increase and funding for these services is available in the FY 2025/26
Resource Recovery operating budget. The two-year extension provides security for the final years
of hauling needs. Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1 as described above.
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