HomeMy WebLinkAboutA001 - Council Action Form dated June 24, 2025ITEM #:31
DATE:06-24-25
DEPT:ELEC
SUBJECT:ASH POND CLOSURE AND RDF ASH POND RECONSTRUCTION -
CHANGE ORDER NO. 4
COUNCIL ACTION FORM
BACKGROUND:
The City's Power Plant operated for over a century by combusting coal to generate electricity.
The combustion of coal generated ash as a byproduct, which was conveyed from the boilers
to an ash impoundment pond several hundred yards to the East of the Power Plant. Although
the Power Plant no longer burns coal, a substantial amount of coal ash remains at the ash
pond.
On April 17, 2015, a Final Rule entitled "Hazardous and Solid Waste Management System;
Disposal of Coal Combustion Residuals (CCR) From Electric Utilities" was published in the
Federal Register, which regulated the disposal of ash in surface impoundments and landfills
resulting from the burning of coal in electric utility boilers.
Compliance with the CCR rule requires a major project at the City's ash pond to
reconfigure the existing ash site, where one-half of the site will become a closed-in-
place impoundment. Ahead of the CCR pond closure, in April 2021, the Power Plant stopped
discharging ash and water into the area of the pond that contained CCR. This allowed the
pond to dry for closer inspection. Soil samples suggested favorable conditions to work with the
ash.
On March 12, 2024, a contract in the amount of $2,606,093.15 was awarded to JB Holland
Construction Inc, of Decorah, IA, to perform the closure project. Three change orders have
subsequently been approved for the project:
Change Order No. 1 was approved by City Council on July 23, 2024 in the amount of
$417,344.79 to incorporate a drying additive into the ash in response to encountering
conditions that were wetter than anticipated. This change order also included items modified
from the original scope of work to better accomplish the overall design of the project.
Change Order No. 2 was approved by City Council on October 8, 2024 in the amount of
$108,907 for additional ash removal, fill material, and gravel road restoration.
Change Order No. 3 was approved by the City Manager's office in the amount of $45,345.60
for additional fill material.
The total amount of the original contract amount plus Change Orders 1-3 is
$3,177,690.54.
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THIS ACTION:
Staff is requesting Council approval of Change Order #4 to add $9,672.50 for two items,
bringing the total contract amount to $3,187,363.04. The contractor needs to install new
conduit so Electric Services staff can provide electrical service to the site. The original conduit
for the power supply was in an ash area and had to be removed. The cost for this work is
$9,502.50. The second item is for animal guarding over three pipe outlets. In order to prevent
animals from nesting or creating other blockages in the outlets of the stormwater pipe, it was
recommended to install animal guards on the ends of the pipes for a total of $170. Staff has
discussed the costs with the City's consultants and all agree it is a reasonable price.
There is $578,260 remaining in the project budget available for this change order.
ALTERNATIVES:
1. Approve Change Order No. 4 in the amount of $9,672.50 to JB Holland Construction Inc,
of Decorah, IA, bringing the contract total to $3,187,363.04 (inclusive of sales tax).
2. Do not approve the requested change order.
CITY MANAGER'S RECOMMENDED ACTION:
The overall project is necessary for the Power Plant to comply with the U.S. EPA's Coal
Combustion Residuals rule. The project has been planned for the past several years
and funding has been included in the Capital Improvements Plan to carry out the
construction. It is the City's intent to remove all ash and place it in the closure area to
comply with the U.S. EPA. The Electric Services staff believes that the two minor
components of Change Order #4 are justified. Therefore, it is the recommendation of the
City Manager that the City Council adopt Alternative No. 1, as described above.
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