HomeMy WebLinkAboutA013 - April 28, 2026, Regular Meeting of the Ames City CouncilITEM #:17
DATE:04-28-26
DEPT:ELEC
SUBJECT:ASBESTOS REMEDIATION AND RELATED SERVICES AND SUPPLY
CONTRACT FOR POWER PLANT
COUNCIL ACTION FORM
BACKGROUND:
This contract involves the removal and proper disposal of asbestos insulation at the
Power Plant, including Units 5 and 6 (both retired) and operating Unit 7. The two retired
units and Unit 7 were primarily insulated with asbestos-type insulation when constructed. Unit
8 is considered “asbestos free." In addition, there are other areas located in the Power Plant
that have been insulated with asbestos-type insulation, such as some of the building insulation
and building heating system.
These services include removal and disposal of asbestos containing insulation, and the
remediation/encapsulation of identified areas or where an encapsulated surface is
damaged. Asbestos must be removed and disposed of per State and Federal
regulations before retired equipment can be physically removed. In addition, asbestos
should be removed or encapsulated where employees will be working.
The Power Plant benefits from having a service contract with a firm that provides routine and
emergency asbestos remediation services. The benefits include consistency of work and
quality from a single contractor, reduction in the City’s exposure to market forces regarding
prices and availability for labor, travel, and supplies in preparation for a scheduled outage,
rapid contractor mobilization to start emergency repairs, and reduced City staff time spent
obtaining quotes, evaluating bids, and preparing specifications and other procurement
documentation.
On March 25, 2024, City Council awarded a contract to Earth Services & Abatement (ESA)
LLC., Des Moines, Iowa for the Asbestos Remediation and Related Services and Supply
Contract. This contract included the option for the City to renew in one-year increments for up
to four additional years. This is the second renewal of four possible renewal periods. The
prices for FY 2026/27 will increase 3% from the previous fiscal year.
The FY 2026/27 Power Plant operating budget includes $200,000 for asbestos removal.
Invoices will be calculated using the agreed contract rates for time and materials, based
on the services actually provided.
ALTERNATIVES:
1. Approve the contract with Earth Services & Abatement for Asbestos Remediation and
Related Services and Supply Contract at the Power Plant for the one-year period from
July 1, 2026 through June 30, 2027 in an amount not-to-exceed $200,000
2. Reject the bid and instruct staff to seek new competitive bids.
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CITY MANAGER'S RECOMMENDED ACTION:
Asbestos removal and encapsulation must be performed by an asbestos contractor
with a safety record and experience that proves the contractor can be trusted and relied
on to perform remediation correctly and safely. Removal and encapsulation will be an
on-going cost, since most of the old equipment at the Power Plant was insulated with
asbestos. This contract will establish rates for service and provide for guaranteed
availability, thereby setting in place known rates for service. Therefore, it is the
recommendation of the City Manager that the City Council adopt Alternative No. 1 as stated
above.
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