HomeMy WebLinkAboutA014 - Request from City of McCallsburg to withdraw from Resource Recovery System 28E Intergovernmental AgreementITEM #:17
DATE:05-26-26
DEPT:PW
SUBJECT:REQUEST FROM CITY OF MCCALLSBURG TO WITHDRAW FROM
RESOURCE RECOVERY SYSTEM
COUNCIL ACTION FORM
BACKGROUND:
The Resource Recovery System (RRS) consists of partnerships between the City of Ames, 11
of the incorporated cities in Story County, Story County itself, and Iowa State University. The
partnerships are outlined in 13 separate 28E intergovernmental agreements with Ames. These
agreements originated when the Resource Recovery Plant was established in 1975, and have
been renewed several times since.
Included among these partners is the City of McCallsburg. In 2014, Ames and McCallsburg
entered into the current agreement, which is in effect through June 30, 2034 (see attached).
The agreement states that Ames will provide a solid waste disposal system, including
arrangements for a landfill and the use of the Resource Recovery Plant to produce refuse-
derived fuel for the Power Plant. In exchange, McCallsburg contributes to the cost of the
operation of the RRS through a per-capita fee (currently $10.50 per person, or $3,707 total).
In the past several years, Ames has been developing a new approach to handling solid waste.
By July 1, 2027, the waste-to-energy operation will be discontinued, and solid waste will be
consolidated at the Resource Recovery and Recycling Campus (R3C) and transported to a
landfill in Carroll County. The development of this new system requires increases in tipping
fees and changes to waste diversion efforts (e.g., more robust recycling efforts).
In order to plan for the new R3C facility and its financing, City of Ames staff approached the
current RRS partners in fall 2025 and requested that each partner consider approving revised
28E agreements. The revised 28E agreements would extend through June 30, 2047.
On May 12, 2026, the City Council referred to a future agenda a letter received from the
Mayor of the City of McCallsburg (attached). In the letter, the City of McCallsburg is requesting
a release from the existing 28E agreement no earlier than June 2026. McCallsburg intends to
join the solid waste planning area that contains Marshall County Landfill, and will be served by
it.
The termination language in the existing 28E agreement allows for cancellation of the
agreement prior to June 30, 2034 by mutual agreement of both parties. Several other
communities in eastern Story County are served by the Marshall County Landfill or are
anticipated to be later this year.
City staff does not believe that the withdrawal of McCallsburg from the RRS will have a
significant negative impact on the viability of the system. Staff has prepared an
amendment to the 28E agreement (attached to this report), which would formalize the
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cancelation of the agreement effective June 30, 2026.
ALTERNATIVES:
1. Approve an amendment to the Resource Recovery System 28E agreement with the City
of McCallsburg to cancel the agreement as of June 30, 2026.
2. Do not approve the cancellation of the agreement which will bind the City of Roland to
the existing agreement until June, 2034.
3. Refer this item to staff for further information.
CITY MANAGER'S RECOMMENDED ACTION:
When the Resource Recovery System was initiated in 1975, partnerships were entered into
with most of the communities across Story County to handle solid waste through the system.
With the transition away from waste-to-energy, the costs for the disposal of solid waste
through the Resource Recovery & Recycling Campus will necessitate fee increases. At the
time the R3C was initially being discussed with the Resource Recovery System partners, it
was clear to City staff that some communities may both desire and be able to leave the
Resource Recovery System for an alternative.
The City of McCallsburg has identified a new solid waste management planning area
(and associated landfill) with which it wishes to partner. City of Ames staff does not
believe that releasing McCallsburg from the Resource Recovery System will present a
significant financial burden to the system. Therefore, it is the recommendation of the City
Manager that the City Council adopt Alternative #1, as described above.
ATTACHMENT(S):
Request Letter from the City of McCallsburg.pdf
A047 - Contract with McCallsburg dated June 10, 2014.pdf
Termination 28E Agreement (McCallsburg).PDF
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X Instrusent-2014- 00006353
VV Date:Jul 28e2014 01:22-56P
D Rec Fee: 35.00 E-Coa Fee: 1.00
XNud Fee: .00 Trans Tax: .00
Rec Management Feet 1.00
Non -Standard Page Fee: .00
Filed for record in Stars Countsr Iowa
Susan L. Vande Kara, Counts Recorder
DO NOT WRITE IN THE SPACE ABOVE THIS LINE; RESERVED FOR RECORDER
Prepared by: City of Ames Legal Department, 515 Clark Ave., Ames, IA 50010; 515-239-5146
Return to: Ames City Clerk, Ames City Hall, 515 Clark Ave., P.O. Box 811, Ames, IA 50010
CONTRACT AND AGREEMENT FOR USE AND SUPPORT OF A
SOLID WASTE RECLAMATION, RECYCLING AND DISPOSAL SYSTEM
AMES - MCCALLSBURG)
This Contract and Agreement is made and entered into by and between the City of Ames,
Iowa, a municipal corporation organized and existing pursuant to the laws of the State of Iowa
hereinafter called "Ames") and the City of McCallsburg, a municipal corporation organized and
existing pursuant to the laws of the State of Iowa (hereinafter called 'McCallsburg").
WITNESSETH THAT:
WHEREAS, since 1974 the City of Ames has partnered with communities and entities
within Story County (including McCallsburg) through 28E agreements for disposal of garbage
and solid waste, this third agreement phase will commence July 1, 2014 and span the next 20
years; and
WHEREAS, some provision must be made for the safe and sanitary disposal of garbage
and solid waste both now and in the future; and
WHEREAS, it is found that due to the high fixed costs of an environmentally
satisfactory solid waste disposal method there is a lower cost per person if the costs of a single
high capacity system can be spread over the populations of a number of cities and towns; and
WHEREAS, Ames is willing and able to design, construct, operate and maintain an
environmentally satisfactory, efficient and economical high capacity solid waste disposal system
if a sufficient number of jurisdictions are committed to its use and support; and
WHEREAS, McCallsburg has considered the system proposed by Ames and finds that
the Ames System will afford to the citizens of McCallsburg a safe, sanitary and environmentally
desirable means for the disposal of solid waste.
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NOW, THEREFORE, the parties hereto have and do hereby covenant, contract and
agree as follows:
ARTICLE I
BASIC INTENT AND PURPOSE
1. Ames shall, subject to terms, provisions and conditions hereinafter set out and in
accordance with the procedures and provisions hereinafter made and declared, maintain a safe,
sanitary and environmentally satisfactory solid waste processing system and for and by such
system accept and dispose of all garbage and solid waste of McCallsburg during the period of
July 1, 2014, to June 30, 2034.
2. McCallsburg shall, subject to terms, provisions and conditions hereinafter set out
and in accordance with the procedures and provisions hereinafter made and declared, use and
support the Ames solid waste disposal system by providing for the disposal of all garbage and
solid waste of McCallsburg by means of the Ames System and to the lawful extent of its powers
allow or permit no other means; and pay such proportionate share of the cost of the Ames
System as the population of McCallsburg bears to the total of the populations of all the
jurisdictions so using and supporting the Ames System during the period July 1, 2014, to
June 30, 2034.
3. Nothing in this agreement shall be construed as prohibiting or discouraging
McCallsburg from encouraging or assisting its citizens to propose, create or participate in any
public or private recycling efforts. However, if during the term of this agreement it becomes
necessary for all participating jurisdictions to assist in meeting state mandated recycling goals or
demand side management reduction goals, McCallsburg agrees to establish recycling programs
to meet McCallsburg's proportionate share of those goals.
ARTICLE H
METHOD OF PAYMENT
1. Costs of the Ames System shall be computed for each calendar year. On or
before February 15's of each year Ames shall notify McCallsburg of its proportionate share of the
net costs of the system for the prior calendar year. Such proportionate share of the costs shall be
paid by McCallsburg to Ames as follows: one-half on or before July 15 and one-half on or
before December 15 of each year.
2. Each using and supporting jurisdiction shall be responsible for a share of the
system costs, based on the proportionate population of each jurisdiction. Such per capita cost
shall be calculated annually, based on the most recent decennial Federal census. The per capita
cost shall be established by analyzing the previous costs and revenues of the Ames System and
projecting the future expenses and revenue sources of the system in order to maintain an
adequate ongoing balance. When establishing the per capita cost, an effort will be made to
maintain consistency over a period of time.
Perez 5
Revenue Sources Expenditures
Fuel Revenue Operation Costs
Plant Fees Debt Service
Sale of Materials
Government Agency Contracts
Per Capita Cost = (Planned Expenditures — Projected Revenue) - System Population
3. Whenever there is a Net Income to the Ames System for any calendar year, such
Net Income shall be retained in a fund balance for future system needs.
ARTICLE III
DEFINITIONS
1. For the purpose of this agreement, certain words and phrases are defined as
follows:
a. Garbage. Every waste accumulation of animal or vegetable matter, or otherwise,
that attends or results from the preparation, use, cooking, dealing in or storage of
food for human consumption, but not including the accumulated by-products of
commercial animal slaughtering, butchering or meat -cutting activities.
b. Solid Waste. All waste materials, including yard waste and garbage except liquid
matter, toxic and hazardous waste, and not including the accumulated by-products
of commercial animal slaughtering, butchering or meat -cutting activities.
C. Ames System. A sanitary landfill and a Resource Recovery Plant established,
operated and maintained by Ames, plus all attendant and ancillary processes,
procedures and activities conducted by Ames, its agents and licensees for the
collection and processing of garbage and solid waste.
d. Sanitary Landfill Such areas as have heretofore or may hereafter be set aside or
designated by Ames a place where garbage and solid waste will be accepted and
disposed of by compaction and burial.
e. Resource Recovery Plant. Building, equipment and all attendant processes,
procedures and manpower established and maintained by Ames for processing
garbage and solid waste to reclaim usable elements and substances, produce
combustible matter for use as fuel for the Ames Municipal Electric System, and
reduce all inert and unusable matter to a form convenient for burial in a sanitary
landfill.
P e-
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f. Using and SW tLrting Jurisdiction. An incorporated city or town, or a county of
the State of Iowa, that has entered into a contract and agreement to use and
support the Ames System pursuant to and in accordance with the same provisions,
terms and conditions as are set out in this agreement.
g. Operating Costs. All costs, direct or indirect, incurred by Ames in the operation,
maintenance and administration of the Ames System, including equipment
replacement costs and interest costs needed to maintain cash flow requirements.
h. Debt Service. Annual principle and interest for the repayment of debt incurred for
capital improvements.
i. Income from Electric Fuel Sales. The Ames Municipal Electric System will be
purchasing fuel from the Resource Recovery. The price paid per ton of fuel will
be increased or decreased in response to increases or decreases in the price paid
per BTU of other fuel burned at the Ames Power Plant.
j. Income from Government Agency Contracts. Monies received pursuant to any
contracts with may be made for use of the Ames System at a rate per ton with
such agencies as Iowa State University, the National Animal Disease Laboratory,
the National Biologics Laboratory and others.
k. Plant Fees. Fees established by the Ames City Council for use of the Ames
System.
1. Income from Sale of Materials. Income derived from the sale of materials
reclaimed from solid waste by the processes of the Ames Solid Waste Separation
Plant.
M. Population. The population of an incorporated city or town shall be the number
of persons living within its corporate limits as established by the most recent
Federal Census, except that for Ames the population thus established will be
decreased by the number of persons living in Iowa State University housing
facilities. For a county, population shall be the number of persons living within
its borders as established by the most recent Federal Census, less the number of
such persons living within the limits of incorporated cities and towns as
established by the most recent decennial Federal Census.
ARTICLE IV
ADMINISTRATION
1. The Ames System shall be governed, controlled and administered solely by and
through the Ames City Council and Ames City Manager in accordance with and pursuant to the
terms of this agreement.
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2. It is understood and agreed that Ames will cause the promulgation of specific
rules and procedures for the use and workings of the Ames System. Such rules shall govern:
a. Which types and quantities of garbage and solid waste shall be delivered to and
accepted by a sanitary landfill.
b. Which types and quantities of garbage and solid waste shall be delivered to and
accepted by the Resource Recovery Plant.
C. The days and hours when the Resource Recovery Plant and other system facilities
will be open to receive materials.
d. All procedures for billing and collection of fees.
e. Every and any other aspect of the management and control of the Ames System
3. All financial record keeping and accounting for monies and funds related to the
Ames System will be done in accordance with such generally accepted accounting principles and
procedures as the Ames City Manager and the Director of Finance for the City of Ames shall
deem appropriate and sufficient to accurately reflect all costs, direct and indirect, and all
revenues and income of the Ames System. Such financial records will be subjected to audit
annually by an independent Certified Public Accountant or Certified Public Accounting firm.
Financial records of the Ames System will be open and available for inspection by McCallsburg
at any time during normal business hours.
4. As a means of enhancing communications with the using and supporting
jurisdictions, McCallsburg may request a meeting to discuss projected operating costs, revenues,
rates, capital improvements and debt financing. Ames will also utilize the Story County Mayor's
Association as a means of ongoing communication with the using and supporting jurisdictions.
Ames will send out an annual report by February 15'h of each calendar year.
5. McCallsburg shall require all garbage and solid waste collectors and haulers that
it may license or engage to have and use for such collecting and hauling, vehicles of a type and
nature which meet the minimum standards Ames now or hereafter requires of its licensed
collectors and haulers. McCallsburg shall also require all garbage and solid waste collectors and
haulers which it may license or engage to produce evidence of insurance coverage of the types
and minimum amounts which Ames now or hereafter requires of its licensed collectors and
haulers.
6. From time to time during the term of this agreement it may become necessary for
Ames to incur additional debt for the Ames System. The decision whether to incur such
additional debt for the Ames System shall be solely at the discretion of the Ames City Council.
Ames will hold an official public hearing prior to the issuance of additional debt.
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7. All decisions and determinations as to plant fees, operating budgets, wages and
salaries, equipment and supply purchases and any and all other expenses of or charges by the
Ames System shall be solely within the discretion of the Ames City Council and City Manager.
8. All land and equipment and any and all other property before now or hereafter
acquired by Ames to establish, operate and maintain the Ames System shall be solely the
property of Ames, and McCallsburg shall not, by virtue of this agreement, have or acquire any
proprietary right, title or interest therein. McCallsburg shall not, by virtue of this agreement,
obtain, acquire or succeed to any rights or entitlements other than those expressly set out and
provided for herein.
9. This contract and agreement is made and entered into in accordance with the
provisions of Chapter 28E, Code of Iowa, insofar as the provisions of that chapter are applicable
and may not be terminated prior to June 30, 2034, except by the mutual consent of the parties
hereto.
10. No later than calendar year of 2033, representatives of Ames and McCallsburg
shall meet to determine the feasibility of continuing this contract after the expiration of the
contract on June 30, 2034.
11. This agreement rescinds and replaces the agreement recorded as Instrument
No. 96-04334 in the records of the office of the Story County Recorder.
ARTICLE V
MISCELLANEOUS
1. Assignment. This agreement may not be assigned by either party without the
prior written consent of the other party.
2. Waiver. No delay or failure to exercise a right resulting from a default or breach
of this agreement shall impair such right or shall be construed to be a waiver thereo% but such
right may be exercised from time to time and as often as may be deemed expedient.
3. Amendment. No amendment, modification, change or extension of this
agreement shall be effective unless it is in writing and duly executed by the parties.
4. Agreement Governed by Iowa Law. This agreement shall be governed by the
laws of the State of Iowa.
5. Execution of Documents. This agreement may be executed in any number of
duplicate originals, any of which shall be regarded for all purposes as an original, and all of
which shall constitute but one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have approved and caused the execution
of the aforesaid covenant, contract and agreement, to wit:
CITY (O AMES, IOWA0
By
Ann H. Campbell, Mayor
Att si
Diane R. Voss, City Clerk`s
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STATE OF IOWA, COUNTY OF STORY, ss:
On this IOA% day of ._&W, 2014, before me, a Notary Public in and for the State of Iowa,
personally appeared Ann H. Campbell and Diane R. Voss, to me personally known and who, by me duly sworn, did
say that they are the Mayor and City Clerk, respectively, of the City of Ames, Iowa; that the seal affixed to the
foregoing instrument is the corporate seal of the corporation; and that the instrument was signed and sealed on
behalf of the cotporgtion, by auth ity of its City Council, as contained in Resolution No./adopted by the City
Council on the day of June 2014, and that Ann H. Campbell and Diane R. Voss acknowledged the
execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by
it voluntarily executed.
WEEEpergerber146549nExpires5
STATE OF IOWA, COUNTY OF STORY, ss:
Z.
Notary Public in and fdr the S to of Iowa
CITY OF MCCALLSBURG, IOWA
On this 5day of j Y} A 2014, before me, a Notary Public in and for the State of Iowa, personally
appeared WAl4r LJ l o w and icnnr+ lie, Qj4 to me personally known and who, by me
duly sworn, did say that they are the yor and City Clerk, respectively, of the City of McCallsburg, Iowa; that the
seal affixed to the foregoing instrument is the corporate seal of the corporation; and that the instrument was signed
and sealed on behalf of the corporation, by authority of its City Council, as c ntain d in Resolution No. f —
ado it b4 the Ci Council on the LA day of NILW . 2014, and that WlAhij,and cknowledged
the execution of the i0rument to be their voluntary act and deed anA the voluntary
act and deed of the corporation, by it voluntarily executed/ i
TAL ROBERT L. HUFFER Rotary Public in Ad fur the State of Iowa COMMISSION
NO. 166257 MY
C MISSION EXPI ES rowe -
2 cSe--
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DO NOT WRITE IN THE SPACE ABOVE THIS LINE; RESERVED FOR RECORDER
Prepared by: City of Ames Legal Department, 515 Clark Ave., Ames, IA 50010; 515-239-5146
Return to: Ames City Clerk, Ames City Hall, 515 Clark Ave., P.O. Box 811, Ames, IA 50010
AGREEMENT TERMINATING 28E AGREEMENT FOR USE AND SUPPORT OF A
SOLID WASTE RECLAMATION, RECYCLING AND DISPOSAL SYSTEM BETWEEN
THE CITY OF AMES, IOWA AND THE CITY OF McCALLSBURG, IOWA.
(AMES - McCALLSBURG)
This Contract and Agreement is made and entered into by and between the City of Ames,
Iowa, a municipal corporation organized and existing pursuant to the laws of the State of Iowa
and the City of McCallsburg, a municipal corporation organized and existing pursuant to the
laws of the State of Iowa.
WITNESSETH THAT:
WHEREAS,the City of Ames and the City of McCallsburg entered into an agreement for the use
and support of a solid waste reclamation, recycling, and disposal system on June 10, 2014,
recorded as Instrument Number 2014-00006353 in the records of the Story County Recorder on
July 28, 2014; and
WHEREAS,said agreement by its terms is effective until June 30, 2034; and
WHEREAS,the agreement at paragraph 9 allows termination of the agreement at any time with
the mutual consent of the parties; and
WHEREAS,the City of McCallsburg has indicated its desire to terminate said agreement on
June 30, 2026; and,
WHEREAS,the City of Ames is agreeable to terminating the agreement as requested by the
City of McCallsburg;
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THEREFORE,the parties agree as follows:
1. The agreement for the use and support of a solid waste reclamation, recycling, and disposal
system between the City of Ames and the City of McCallsburg, executed on June 10, 2014,
and recorded as Instrument Number 2014-00006353 in the records of the Story County
Recorder, is hereby terminated effective June 30, 2026.
IN WITNESS WHEREOF,the parties hereto have approved and caused the execution of the
aforesaid covenant, contract and agreement, to wit:
CITY OF AMES, IOWA
By
John A. Haila, Mayor
Attest
Renee Hall, City Clerk
STATE OF IOWA, COUNTY OF STORY, ss:
On this day of , 2026, before me, a Notary Public in and for the State
of Iowa, personally appeared John A. Haila and Renee Hall, to me personally known and who, by
me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Ames,
Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation; and
that the instrument was signed and sealed on behalf of the corporation, by authority of its City
Council, as contained in Resolution No.adopted by the City Council on the day of
, 2026, and that John A. Haila and Renee Hall acknowledged the execution of the
instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by
it voluntarily executed.
Notary Public in and for the State of Iowa
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CITY OF McCALLSBURG, IOWA
By
Bill Lytle, Mayor
Attest
Jenna Gilbert, City Clerk
STATE OF IOWA, COUNTY OF STORY, ss:
On this day of , 2026, before me, a Notary Public in and for the State
of Iowa, personally appeared Bill Lytle and Jenna Gilbert, to me personally known and who, by
me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of
McCallsburg, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the
corporation; and that the instrument was signed and sealed on behalf of the corporation, by
authority of its City Council, as contained in Resolution No.adopted by the City Council
on the day of , 2026, and that Bill Lytle and Jenna Gilbert
acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary
act and deed of the corporation, by it voluntarily executed.
Notary Public in and for the State of Iowa
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