HomeMy WebLinkAboutA001 - Council Action Form dated July 28, 2026ITEM #:12
DATE:07-28-26
DEPT:PW
SUBJECT:REQUEST FROM CITY OF KELLEY 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 Kelley. In 2014, Ames and Kelley 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, Kelley contributes to the cost of the operation of the RRS through a
per-capita fee (currently $10.50 per person, or $3,192 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 June 21, 2026, the Ames City Clerk received a letter from the City of Kelley (attached)
requesting a release from the existing 28E agreement on or before August 31, 2026. Kelley
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.
City staff does not believe that the withdrawal of Kelley 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
cancelation of the agreement effective August 31, 2026.
1
ALTERNATIVES:
1. Approve an amendment to the Resource Recovery System 28E agreement with the City
of Kelley to cancel the agreement as of August 31, 2026
2. Do not approve the cancellation of the agreement which will bind the City of Kelley 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 Kelley 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 Kelley 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 No. 1, as described above.
ATTACHMENT(S):
City of Kelley termination request.pdf
City of Kelley 2014 28E Agreement.pdf
Termination of 28E with Kelley.docx
2
3
4
5
6
7
8
9
10
11
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 KELLEY, IOWA.
(AMES - KELLEY)
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 Kelley, 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 Kelley entered into an agreement for the use and
support of a solid waste reclamation, recycling, and disposal system on July 28, 2014, recorded
as Instrument Number 2014-00006351 in the records of the Story County Recorder; 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 Kelley has indicated its desire to terminate said agreement on August
31, 2026; and,
WHEREAS, the City of Ames is agreeable to terminating the agreement as requested by the
City of Kelley;
12
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 Kelley, executed on June 10, 2014, and
recorded as Instrument Number 2014-00006351 in the records of the Story County
Recorder, is hereby terminated effective August 31, 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
13
CITY OF KELLEY, IOWA
By
Alex Lundgren, Mayor Pro Tem
Attest
Jaeda Davies, 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 Alex Lundgren and Jaeda Davies, to me personally known and who,
by me duly sworn, did say that they are the Mayor Pro Tem and City Clerk, respectively, of the
City of Kelley, 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 Alex Lundgren and Jaeda Davies
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
14