The city of Ames is moving forward with hiring a Chicago-based engineering firm to design new power generating units and a building to house them.
The contract is worth up to $6.8 million and will be paid based on actual hours worked rather than as a fixed amount. The Ames City Council approved hiring the firm, Sargent & Lundy LLC, when it met in special session on Tuesday.
Background: The city’s power plant has undergone major changes over the past decade and needs to continue evolving, according to plant officials. Ten years ago, the plant ran on coal and refuse-derived fuel from processed garbage. Today it uses natural gas and refuse-derived fuel. By 2027, the plan is to use only natural gas.
These changes are happening for several reasons:
- More people are buying electric vehicles and other power-hungry devices, which means the city needs more electricity.
- Severe weather events such as the 2020 derecho have shown the need for better electric transmission systems.
- The city has also committed to a Climate Action Plan that requires cleaner ways of producing energy.
In December 2024, city staff presented initial findings from studies about the power plant’s future. These studies looked at the health of the existing power units, explored different generation options and determined the best technology choices. The research helped identify how much longer the current units can operate and what technology should replace them while also handling growing electricity demand.
Why Sargent & Lundy: Sargent & Lundy stood out from other firms because of its extensive experience with RICE engines — Reciprocating Internal Combustion Engines, the type of generating equipment the city plans to use. The company also emphasized its thorough approach to project design, including internal checks and balances.
Funding the project: The design and engineering work will mostly happen during the 2025-26 fiscal year. The city currently has $3 million available for this project. An additional $7 million is planned for 2026-27, originally intended for building and infrastructure costs. Staff will adjust future budgets to account for how much of that money instead goes toward engineering.
The city plans to pay for this contract using money currently available in the electric fund, which has more than $50 million. This money will be repaid when the city issues bonds for the complete generation project in 2026-27.
In other business
- The council met in closed session to discuss matters “presently in litigation or where litigation is imminent.”
- The council approved a resolution awarding a $77,300 contract to NAI Electrical Contractors of Ames for a CyRide 2025 battery electric bus facility improvement project that includes charging equipment for five new electric buses expected this year.
- The council approved a resolution approving a $484,024.40 contract and bond for the 2024-25 infrastructure improvement program on South Russell Avenue from Fourth Street to Lincoln Way. The contract is with the Iowa Water and Waste Systems of Boone.
- Attendance: Rep. Amber Corrieri attended the meeting via Zoom and Ex-officio Rep. Emily Boland was absent.
- Next time: The next regularly scheduled council meeting is Oct. 28.
