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HomeMy WebLinkAboutA001 - Council Action Form dated June 10, 2025ITEM #:20 DATE:06-10-25 DEPT:ELEC SUBJECT:TIPPING FEES FOR POWER PLANT ASH DISPOSAL COUNCIL ACTION FORM BACKGROUND: The City's Power Plant currently uses a small section of the ash pond where combusted Refuse Derived Fuel (RDF) residue settles to the bottom. The ash itself is composed of inorganic materials in the fuel that do not burn and must be removed from the boilers to allow continual operation. Once deposited in the ash pond, the relatively clean water on the top of the pond can be recycled to the Power Plant to transport additional ash from the bottom of the boilers. Over time the ash builds up on the bottom of the pond and reduces the available capacity. The ash must be regularly removed via excavating or dredging and hauled to a landfill to provide continual space so the boilers can continue to burn RDF. Boone County Landfill is the designated landfill for Ames' solid waste and, therefore, would be the landfill where excavated ash is typically disposed. However, Boone County Landfill does not want to receive the RDF combustion ash and has instructed the City to haul the ash to another landfill. In the past, the City has hauled the ash to Metro Park East Landfill in Mitchellville, Iowa. Recently, Metro Park East increased its tipping fees. City staff explored alternatives and learned that the Marshall County Landfill will take the RDF ash at a lower cost per ton, thereby reducing the utility's expenses. At the City's request, Boone County has released the ash to Marshall County Landfill for disposal. Funding for this contract with Marshall County Landfill will come from the FY 2025/26 Power Plant Ash System account where $300,000 is allocated for ash hauling and disposal. Of this amount, $100,000 is available to cover the tipping fees for the Marshall County Landfill (this action). The remaining $200,000 is obligated under a separate contract with Wulfekuhle Injection & Pumping to remove the ash from the pond and haul it. That contract was approved by City Council on April 8, 2025. In addition to approving the contract, the Council is being asked to waive the Purchasing Policies and Procedures requirement for formal bids, since solid waste planning area regulations would prevent the City from bidding the disposal location for this material. ALTERNATIVES: 1. Waive the City’s Purchasing Policies and Procedures requirement for formal bidding procedures and award a contract to Marshall County Landfill, Marshalltown, IA for landfill tipping fees for Power Plant ash disposal in the amount not to exceed $100,000 from July 1, 2025 through June 30, 2026. 2. Do not approve the contract and continue to haul RDF ash to Metro Park Ease Landfill. 1 CITY MANAGER'S RECOMMENDED ACTION: The Power Plant needs to continuously remove ash from the ash pond when a unit is burning RDF. This contract will provide for the disposal of the ash. The actual amount paid to Marshall County will be dependent upon the amount of ash delivered to the facility. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1. 2