HomeMy WebLinkAboutA001 - Council Action Form dated September 3, 2025ITEM #:1
DATE:09-03-25
DEPT:PW
SUBJECT:DESIGN CONTRACT WITH HDR ENGINEERING FOR RESOURCE
RECOVERY AND RECYCLING CAMPUS
COUNCIL ACTION FORM
BACKGROUND:
At the June 24, 2025 City Council meeting, the City Council received the conceptual design
and financial analysis report for the Resource Recovery and Recycling Campus (R3C). The
conceptual design and financial analysis were developed by HDR Engineering, Inc. of Omaha,
NE, following a competitive request for proposal (RFP) process. The R3C is a new approach
for the disposal of solid waste and handling recyclables and yard waste for Ames and its
partners.
Following that June 24 meeting, staff negotiated an agreement with HDR for the
detailed design work necessary to bid and construct the new facility. The agreement
also includes bid assistance and construction engineering support throughout the
project. The fees for these services total an amount not-to-exceed $965,715. City
Council is being asked to consider approval of this agreement with HDR so that final
design activities can begin to meet the goal of construction beginning in the spring of
2026. This agreement is structured as a change order to the original conceptual design
contract.
Staff intends to utilize a Construction Manager as Advisor approach for this project, which
involves retaining a separate firm to: 1) represent the City during the project, 2) identify
opportunities during the design phase for cost-savings or improved constructability, 3) assist
with bidding, and 4) coordinate schedules and workflow for the various contractors during
construction. A contract for these services is expected to be presented to the City Council in
September.
Through this approach, the Construction Manager will be the full-time on-site observer, rather
than the engineer. Therefore, this contract with HDR provides for twice per month construction
observation visits.
On April 28, 2025, the City Council adopted a resolution declaring the intent to reimburse
expenses associated with the construction of the Resource Recovery and Recycling Campus
Project and allowing the City to incur expenses with the potential for future reimbursement
through a bond issuance. Therefore, the funding for this design contract will be taken from the
fund balance and reimbursed once bonds are issued.
The project budget is outlined in the table below.
Project Revenues Project Expenses
Revenue Abated G.O. Bonds $16,778,435 Land Acquisition (220, 306,
312, 318, 400 Freel Drive)$1,077,500
Due Diligence prior to closing 15,465
Conceptual Design and
Financial Modeling 50,000
Final Design (this Council
Action)965,715
Final Design Contingency 124,785
Permitting (est.)50,000
Opinion of Probable
Construction Costs for R3C
Facility
9,019,000
Construction Contingency 1,435,020
Construction Inspection (est.)450,950
Construction Manager Fee
(est.)750,000
Construction Manager General
Conditions Costs (est.)500,000
Mobile Equipment (transfer
trucks and trailers)2,340,000
Total Revenues $16,778,435 Total $16,778,435
ALTERNATIVES:
1. Approve Change Order No. 1 with HDR Engineering, Inc. of Omaha, NE in the amount
not to exceed $965,715 for final design, bid assistance, and construction engineering
support services for the Resource Recovery and Recycling Campus.
2. Direct staff to make changes to the agreement.
CITY MANAGER'S RECOMMENDED ACTION:
This agreement allows for the continued development of the R3C in addressing the next steps
towards final design and bidding of the project. City staff has negotiated a robust scope within
the agreement that will help facilitate the success of the project by clearly delineating roles and
responsibilities of the parties at each step. This agreement is now ready for approval and
time is of the essence to ensure construction can begin in spring 2026. Therefore, it is
the recommendation of the City Manager that the City Council adopt Alternate 1, as described
above.
ATTACHMENT(S):
HDR Contract.pdf
Change Order Form - Mayor Lines.pdf