Committee forwards tire‑shredding lease with Colorado Energy Recyclers (GCC subsidiary) to full council amid air‑quality questions

The Public Works Committee on Aug. 12 approved an amendment to an alternative‑fuel landfill diversion evaluation and voted to forward a proposed lease with Colorado Energy Recyclers — a subsidiary of GCC’s cement operations — to the full City Council without recommendation.

City staff described the arrangement as a three‑part approach to landfill diversion. Under the lease terms staff summarized at the meeting, Colorado Energy Recyclers would occupy a leased area at the Rapid City landfill to shred tires. The shredded material would then be transported to GCC’s cement plant for use as an alternative fuel; there will be no incineration or combustion of tires at the landfill site itself. Daniel Ainsley, the city’s finance officer, clarified that the cement plant’s processing and any combustion would occur off‑site and be regulated by the state Department of Agriculture and Natural Resources (DANR) and city rules.

Staff disclosed early commercial terms during the committee discussion: the lease would charge $6,000 per month for a three‑year term; the city would charge Colorado Energy Recyclers $7.50 per ton for inbound tires processed into product; the city currently pays roughly $230 per ton to dispose of tires off‑site, so staff estimated significant cost savings. Staff projected early annual revenue in the range of $75,000–$125,000 and comparable disposal cost savings. For the first 75 tons of product produced, staff said there would be no disposal cost to the city; beyond that the net cost would be about one‑third of the city’s current disposal cost.

Public comment had raised air‑quality concerns earlier in the meeting when a resident asked whether the Rapid City GCC cement plant incinerates difficult wastes (including a claim that wind‑turbine blades were shipped to Rapid City). City staff (Vicky) responded that the GCC facility holds permits, that EPA and state regulations apply, and that the plant underwent substantial upgrades (staff cited a roughly $100 million upgrade) and provides annual permit documentation to the city. Staff stressed that any combustion at GCC’s plant is subject to DANR permitting and EPA filtration standards; the city’s lease would not authorize combustion at the landfill.

Committee members who supported forwarding the lease said the arrangement could reduce landfill costs and create a modest revenue stream. One member said they wanted the full council to review the proposal and hear concerns about air quality and asked the item be sent to Monday’s council meeting without a committee recommendation. The committee approved the substitute motion to forward the matter to full council without recommendation.

Why this matters: The proposal would alter how the city handles tires — shifting from paying third-party disposal to on‑site shredding and off‑site processing — and raises regulatory oversight questions about downstream combustion and local air quality. The committee’s vote advances the lease to the full City Council for further debate and possible contract approval.

Next steps: The item will appear before the full City Council for further consideration; city staff will provide the lease and amendment documents and answer questions about permits, monitoring and emissions controls at the GCC cement plant.