The Waterloo City Council approved a few measures at its April 21 meeting, including a contract for installation of a new combustion turbine for its power plant, increased trash pickup rates and the annexation of new land into city limits.

Aldermen gave the OK on a contract with Limbaugh Construction of Granite City for installation of a dual-fueled Taurus 70 combustion turbine package with 13.2 kV generator, which includes liquid fuel storage and natural gas connections. 

Limbaugh was the low bidder, and only bidder, for installation at a price of $5,599,148 – a nearly $1.6 million increase from an engineering estimate on this project. 

“We were a little bit surprised…” Waterloo Director JD Landeck said of the bids, adding it was 40 percent above the engineer’s estimate.

In its report, BHMG Engineers stated that while its estimate was $4 million for installation, that estimate was made a year ago and since “updated with additional scope during design, so there is a good argument this estimate is low.” BHMG still recommended the city approve the bid while considering ways to pare down costs in other aspects of the overall project.   

“Well, we have to do the project,” Alderman Kyle Buettner said. 

Mayor Stan Darter agreed, saying the Illinois Municipal Electric Agency – which works with a collective of municipalities to provide power, including Waterloo – has a deadline to meet requirements of energy demand based on projections previously laid out on the grid.

“We’re kinda under the gun here in order to get this project finished in order to get the (IMEA) credits,” Darter said. 

IMEA members that own qualified generation units are offered an extension of their capacity purchase agreement. Under that agreement, the IMEA compensates the city for having the ability to call on its generation units and pays the fuel costs for those units when they run during critical times of high demand on the electric grid.

Darter said Waterloo’s power plant currently consists of three Caterpillar generators and two turbines, which can be used interchangeably based on demand. However, this third turbine is needed to further meet current and future demand.    

If this bid were rejected, Waterloo would not meet the schedule as determined by the IMEA. The goal is to have this new turbine in operation by the end of this year or in early 2026. 

The $5.6 installation cost adds to the purchase of the new turbine itself, which was made last year with Solar Turbines at a cost of $11,542,770.48.

In December, the council approved the purchase of electrical wire from Brownstown Electrical Supply in the amount of $42,990 for relocating existing overhead circuit lines in conflict with the proposed location of a new generator. The electric lines will be installed underground to avoid impact to the construction and installation of the new city turbine.  

In other action from the meeting, the city council approved an increase in the monthly household charge for trash and recycling collection to $19.18 beginning May 1. The previous charge was $18.77 per month.

This represents an increase of 2.2 percent, or 41 cents. According to a previously signed contract with Reliable Sanitation, the increase could’ve been passed on at 3 percent based on the consumer price index. 

“That is less than what they could’ve increased, correct?” Alderman Gary Most asked, to which city budget officer Sarah Craig replied in the affirmative. 

Also, the council approved an annexation agreement with Allison Bash of AB Metro East Properties LLC for a tract of land comprising of .46 acres at 751 N. Market Street. 

The council also approved a preliminary plat for the Deer Ridge subdivision, which is a proposed extension of Natalie Estates off Rogers Street consisting of 38.56 acres and 67 single family residential lots.

The next Waterloo City Council meeting is set for 7:30 p.m. Monday, May 5, at City Hall.