HomeMy WebLinkAboutA045 - Hearing on Resource Recovery & Recycling Campus Construction ContractsITEM #:45
DATE:03-10-26
DEPT:PW
SUBJECT:RESOURCE RECOVERY AND RECYCLING CAMPUS CONSTRUCTION
CONTRACTS
COUNCIL ACTION FORM
BACKGROUND:
On January 27, 2026, the City Council approved preliminary plans and specifications for
construction of the Resource Recovery & Recycling Campus (R3C). Bids were due March 3,
2026 for a base bid package and three alternates, which are described briefly below:
T h e Base Bid includes the majority of the work necessary to construct the R3C,
including the main building containing a tipping floor, process equipment, office, and
maintenance areas, a scalehouse and scale equipment, fueling, parking, and
maneuvering areas, and all other supporting site components.
Alternate Number 1 is the added work to construct a canopy over the customer
convenience area, where roll-off boxes will be located for drop-off of separated
recyclables, household hazardous waste, and other materials.
Alternate Number 2 is the added work to purchase and install a baler that can be used
to consolidate cardboard or paper into dense bales to reduce transportation costs.
Alternate Number 3 is the removal of the infeed conveyor for the shredder. Without the
infeed conveyor, the shredder hopper will be modified to allow materials to be loaded
directly using a wheel-loader. The removal of the infeed conveyor is being contemplated
due to higher than anticipated cost estimates for this equipment.
The City is utilizing a construction manager as advisor (CM) approach for this project.
Therefore, the plans and specifications were prepared by HDR Engineering, Inc., and through
consultation with the CM, Story Construction, Co. the work has been divided into 11 separate
bid packages. As a reminder, this approach is different than a traditional general contractor
model, where a single contract is awarded to one prime contractor who performs work and
retains sub-contractors for specialty work. In the CM approach, the City will hold 11 separate
contracts with 11 separate contractors.
HDR developed an estimate of probable construction costs of $16,821,527, which was
reported to the City Council on January 27, 2026. Story Construction then assigned a portion
of this amount to each of the 11 bid packages to develop a rough estimate for each.
BID PACKAGE INFORMATION
Bids were received from 28 separate contractors . Depending on the selected combination of
base bid and alternate(s), some of the contracts may be awarded to different bidders based on
the lowest bid for the selected combination of alternates.
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Please note that each bid package is highlighted below, followed by additional information
specific to that package. The listing below reflects the base bid only, as City staff has not
yet determined whether to recommend the inclusion of any or all of the alternates. Not
all packages contained alternates, as some of the packages were unaffected by the inclusion
or exclusion of the alternates. The information below also indicates the value of the overall
project that was estimated by Story Construction for each package, and the difference
between the base bid and that estimate for each package. Attachment A contains a complete
listing of all bids received for each package.
Bid Package 01-1 – General Construction Work
Number of Bids Received: 1
Affected by Alternates?: No
Low Bidder: RH Grabau Construction, Inc., Boone, IA
Base Bid: $1,601,000
Story Construction estimate: $1,400,000
Base bid less estimate: $201,000
Bid Package 03-1 – Concrete and Steel Work
Number of Bids Received: 2
Affected by Alternates?: Yes - Alternates 1, 2, & 3
Low Bidder: Jensen Builders, Ltd, Des Moines, IA
Base Bid Range: $4,675,500 - $5,200,000
Story Construction estimate: $3,600,000
Base bid less estimate: $1,075,500
% difference of low bid to second low bid: 11.2%
09-1 – Gypsum Board Assembly Work
Number of Bids Received: 2
Affected by Alternates?: No
Low Bidder: Heartland Finishes, Inc., Des Moines, IA
Base Bid Range: $430,675 - $437,300
Story Construction estimate: $400,000
Base bid less estimate: $30,675
% difference of low bid to second low bid: 1.5%
14-1 – Elevator/Lift Work
Number of Bids Received: 1
Affected by Alternates?: No
Low Bidder: TK Elevator Corporation, Urbandale, IA
Base Bid: $109,800
Story Construction estimate: $150,000
Base bid less estimate: ($40,200)
21-1 – Fire Suppression Systems Work
Number of Bids Received: 2
Affected by Alternates?: No
2
Low Bidder: Tri-City Fire Protection LLC, Davenport, IA
Base Bid Range: $169,284 - $222,990
Story Construction estimate: $200,000
Base bid less estimate: ($30,716)
% difference of low bid to second low bid: 31.7%
22-1 – Plumbing & HVAC Work
Number of Bids Received: 6
Affected by Alternates?: No
Low Bidder: ACI Mechanical, Inc., Ames, IA
Base Bid Range: $1,180,000 - $1,523,946
Story Construction estimate: $1,300,000
Base bid less estimate: ($120,000)
% difference of low bid to second low bid: 16.4%
26-1 – Electrical, Communications, & Electronic Safety and Security Work
Number of Bids Received: 6
Affected by Alternates?: Yes - Alternates 1, 2, & 3
Low Bidder: Enterprise Electric, Inc., Boone, IA
Base Bid Range: $1,329,000 - $1,927,860
Story Construction estimate: $1,300,000
Base bid less estimate: $29,000
% difference of low bid to second low bid: 1.0%
31-1 – Site Demolition & Earthwork
Number of Bids Received: 1
Affected by Alternates?: No
Low Bidder: Con-Struct, Inc., Ames, IA
Base Bid: $575,000
Story Construction estimate: $500,000
Base bid less estimate: $75,000
32-1 – Paving & Sidewalk Work
Number of Bids Received: 5
Affected by Alternates?: Yes - Alternate 1
Low Bidder: Jordison Construction, Inc., Urbandale, IA
Base Bid Range: $1,025,000 - $1,138,440
Story Construction estimate: $700,000
Base bid less estimate: $325,000
% difference of low bid to second low bid: 0.3%
33-1 – Site Utility Work
Number of Bids Received: 1
Affected by Alternates?: No
3
Low Bidder: On Track Construction LLC, Nevada, IA
Base Bid: $723,370
Story Construction estimate: $250,000
Base bid less estimate: $473,370
40-1 – Millwright/Process Integration Work
Number of Bids Received: 1
Affected by Alternates?: Yes - Alternates 1, 2, & 3
Low Bidder: RRT Design & Construction, Melville, NY
Base Bid: $7,798,009
Story Construction estimate: $7,021,527
Base bid less estimate: $776,482
CONSTRUCTION AND PROJECT COSTS:
Based on the above information, the table below shows the total construction costs:
BID ITEM CONTRACTOR TOTAL - BASE BID
ONLY
01-1 – General Construction Work RH Grabau Construction,
Inc., Boone, IA $1,601,000
03-1 – Concrete and Steel Work Jensen Builders, Ltd., Des
Moines, IA $4,675,500
09-1 – Gypsum Board Assembly Work Heartland Finishes, Inc.,
Des Moines, IA $430,675
14-1 – Elevator/Lift Work TK Elevator Corporation,
Urbandale, IA $109,800
21-1 – Fire Suppression Systems Work Tri-City Fire Protection LLC,
Davenport, IA $169,284
22-1 – Plumbing & HVAC Work ACI Mechanical, Inc., Ames,
IA $1,180,000
26-1 – Electrical, Communications, &
Electronic Safety and Security Work
Enterprise Electric, Inc.,
Boone, IA $1,329,000
31-1 – Site Demolition & Earthwork Con-Struct, Inc., Ames, IA $575,000
32-1 – Paving & Sidewalk Work Jordison Construction, Inc.,
Urbandale, IA $1,025,000
33-1 – Site Utility Work On Track Construction LLC,
Nevada, IA $723,370
40-1 – Millwright/Process Integration
Work
RRT Design & Construction,
Melville, NY $7,798,009
GRAND TOTAL $19,616,638
The combined base bid total of $19,616,638 exceeds the engineer's estimate of
$16,821,527 by $2,795,111. Following the bid opening, City staff, Story Construction,
and HDR Engineering identified three key bid packages where further conversations
with the bidders were warranted. These are: 03-1 – Concrete and Steel Work, 33-1 –
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Budgeted Revenues Budgeted Expenses
Revenue Abated G.O. Bonds $22,006,730 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 965,715
Final Design Contingency
(reduced)75,000
Permitting (reduced)38,000
Construction Costs (This
Action)$19,616,638
Construction Incentives 100,000
Items by Owner
(FFE/Cameras/Fiber
Network/Tree Clearing)
252,700
Construction Contingency
(reduced)435,020
Construction Inspection (est.)450,950
Construction Manager Fee
(Fixed fees plus 2.25% of
contract amounts)
989,414
Site Utility Work, and 40-1 – Millwright/Process Integration Work.
In preliminary conversations with the contractors for these three packages, the team
has identified a number of clarifications, alterations, and deducts that will reduce the
scope of the project and bring the cost closer to the project budget. Additionally, staff
is working with the City's financial consultants to finalize the strategy for the issuance
of the debt for the project. Both these efforts are focused on delivering the project in a
manner that both: 1) completes the project in the timely manner required for this critical
facility, and 2) keeps the initial tipping fee within the amount previously reported
(~$95.11 per ton in July 2027).
Staff is requesting additional time to evaluate the bids and negotiate with key
contractors to develop change orders that can be approved immediately following the
award of contracts. This approach has been used in other City projects where the
lowest bids substantially exceeded the available funding.
Therefore, Council is being asked to accept the report of bids and delay the award to
the March 24, 2026 City Council meeting.
The most recent project budget table is provided below for reference. Adjustments to
contingency amounts and permitting fees have been made in the table below to closer align
project expenses and revenues.
TOTAL PROJECT COSTS:
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Construction Manager General
Conditions Costs (est.) 448,000
R3C Construction Revenue
Subtotal $22,006,730 R3C Construction Subtotal $24,514,396
R3C Construction Revenue Shortfall $2,507,666
Electric Utility Fund $2,340,000 Mobile Equipment (transfer
trucks and trailers)$2,340,000
G.O. Bonds $975,000
Unobligated G.O. Bonds 225,000
Water Utility Fund 40,000 Freel Drive Paving (est.)$1,240,000
Total Project Revenues $25,586,730 Total Project Expenses $28,094,396
To address the shortfall, staff and the design team are evaluating adjustments to the
project scope and shifting certain expenses to alternative funding sources. The specific
scope modifications are as follows:
1. Remove electric vehicle charging station and stub the electrical only
2. Eliminate light gray accent color on office exterior
3. Reduce snow guarding on roof
4. Change from painted roof to galvanized
5. Replace tipping floor interior panel liner material
6. Reduce width of exterior gates
7. Utilize an alternative infeed conveyor manufacturer
8. Utilize an alternative manufacturer for all conveyors except infeed conveyor
9. Replace rapid-closing overhead doors with standard overhead doors
10. Remove recovered ferrous metal blower clean-up system
11. Remove post-indicator valve
12. Remove metal edging from landscaping beds
13. Consider 25% reduction in plantings
14. Review alternate grass, plant, and tree species
15. Eliminate front yard vinyl-coated fencing and replace with galvanized
16. Remove second eddy current separator and shorten one conveyor
17. Eliminate dedicated outbound truck scale
18. Eliminate jib crane for processing equipment
19. Change manufacturer of storm water pumps
20. Change door hardware
21. Change locker room equipment manufacturer
22. Eliminate/change ceiling baffles in education room
23. Remove building entrance awning
24. Remove both eddy current separators and related conveyance
25. Remove overhead trolley and/or hoist from processing equipment area
26. Remove all processing equipment
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The project components that are being considered to shift to alternative funding sources
includes:
1. Access control for gates shifting to Fleet Services
2. Fueling infrastructure shifting to Fleet Services
3. Sidewalk along frontage shifting to Freel Drive paving project or Road Use Tax
Staff will provide a detailed evaluation and explanation of all these adjustments on
March 24 when the bids are returned to Council for award.
ALTERNATIVES:
1. The City Council can approve the following:
a. Motion accepting report of bids
b. Motion delaying the award of bids to the March 24, 2026 City Council meeting
2. Accept the report of bids and award contracts to one or more bidders.
CITY MANAGER'S RECOMMENDED ACTION:
Since 1975, the City's Resource Recovery Plant has received municipal solid waste (MSW)
from throughout Story County, processed it to remove recyclable metals, and converted a
substantial portion of the MSW into a supplemental fuel for use in the City's Power Plant
boilers. Although this system was successful in reducing the volume of MSW that needed to
be landfilled, in recent years this arrangement has resulted in technical, economic, and
regulatory challenges.
In response to these issues, the City is pursuing the development of a new Resource
Recovery & Recycling Campus (R3C) on Freel Drive. At the facility, MSW will be received
from haulers and customers, recyclable metals will be recovered, and the waste will be loaded
into semi trailers to be hauled to the Carroll County Landfill.
A multi-departmental team of City staff has worked diligently with the design team at HDR, Inc.
to develop a project that meets the City's needs for solid waste handling and disposal for the
next generation. With the assistance of Story Construction, a project has been developed that
will allow the City to responsibly fulfill its solid waste handling obligations. In addition, the
facility will assist in educating the community about waste disposal and recycling, and the
equipment within the facility will allow City staff to extract as much recyclable material as
possible from the waste stream before the remainder is disposed of via landfilling.
The bids received exceed the estimates for the facility. Staff believes that through
conversations between several of the low bidders on key bid packages, clarifications
and design changes can be made that will result in the project aligning closer with the
project budget. However, more time is necessary to complete these discussions and
prepare for awards. Therefore, it is the recommendation of the City Manager that the
City Council approve Alternative #1, as described above.
It should be noted that in order to keep this project on track, a special meeting to
approve contract and bond for one or more of the construction contracts might be
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needed shortly after the anticipated award of bids on March 24.
ATTACHMENT(S):
2026-068 Bid Tabulation.xlsx
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Base Bid
1,601,000.00$
Base Bid
Alternate No.
1 - Recycling
Canopy
Alternate No. 2
- Baler
Deduct No. 3 -
Conveyor
(Enter as
Negative)
4,675,500.00$ 190,700.00$1,500.00$ 1,500.00$
5,200,000.00$ 253,000.00$-$ -$
Base Bid
437,300.00$
430,675.00$
Base Bid
109,800.00$
Base Bid
169,284.00$
222,990.00$
Base Bid
1,180,000.00$
1,523,946.00$
1,497,900.00$
1,383,000.00$
1,400,800.00$
1,374,000.00$
Base Bid
Alternate No.
1 - Recycling
Alternate No. 2
- Baler
Deduct No. 3 -
Conveyor
Bid Package 03-1 Concrete & Steel Work
Bid Package 01-1 General Construction Work
RH Grabau Construction, Inc., Boone, IA
ACI Mechanical, Inc., Ames, IA
Jensen Builders, Des Moines, IA
TK Elevator, Urbandale, IA
Elite Fire Sprinkler Systems, Inc., Des Moines, IA
Tri-City Fire Protection, Davenport, IA
Bid Package 22-1 Plumbing & HVAC Work
Bid Package 21-1 Fire Suppression Work
Bid Package 14-1 Elevator Lift Work
Bid Package 09-1 Gypsum Board Assembly Work
Mid-States Millwright & Builders, Inc., Nevada, IA
Hilabeck-Schacht, Inc, West Des Moines, IA
Heartland Finishes, Inc., Des Moines, IA
Kovarik Onstot Elite Plumbing LLC, Ames, IA
All Iowa Mechanical, Des Moines, IA
Air Con Mechanical, Pleasant Hill, IA
Modern, Des Moines, IA
Excel Mechanical Co., Inc., Des Moines, IA
Bid Package 26-1 Electrical, Communications, Electrical
Safety and Security Work
Resource Recovery & Recycling Campus, ITB No. 2026-068
Bid Tabulation
3/3/2026
1 9
1,927,860.00$ 14,405.00$ -$ -$
1,807,900.00$ 3,825.00$ -$ -$
1,329,000.00$ 14,105.00$ 1,210.00$ -$
1,828,125.00$ 11,500.00$ (1,200.00)$
1,342,400.00$ 11,800.00$ 918.00$ (630.00)$
1,755,966.00$ 22,854.00$ 924.00$ (1,018.00)$
Base Bid
575,000.00$
Base Bid
Alternate No.
1 - Recycling
Canopy
1,093,330.00$ 6,500.00$
1,138,440.00$ -$
1,025,000.00$ (14,500.00)$
1,028,129.00$ (17,160.00)$
1,112,000.00$ 10,100.00$
Base Bid
723,370.00$
Base Bid
Alternate No.
1 -
Recycling
Canopy
Alternate No. 2
- Baler
Deduct No. 3 -
Conveyor
(Enter as
Negative)
7,798,009.00$ -$ 278,065.00$ (544,200.00)$
Bemrich Electric & Telephone, Inc, Ft Dodge, IA
NAI Electrical Contractors, Ames, IA
Par Industries, LLC, Des Moines, IA
Tri-City Electric Company of Iowa, LLC, Davenport, IA
Nelson Electric Company, Ames, IA
On Track Construction LLC, Nevada, IA
Bid Package 40-1 Millwright Process Integration Work
RRT Design & Construction, Melville, NY
Jordison Construction, Inc., Urbandale, IA
Lakeside Contractors, LLC, Ames, IA
Jensen Builder, Ltd, Des Moines, IA
Bid Package 32-1 Paving & Sidewalk Work
Bid Package 33-1 Site Utilities Work
Con-Struct, Inc., Ames, IA
Bid Package 31-1 Site Demolition & Earthwork Work
Absolute Concrete Construction, Inc., dba Absolute Concrete,
Granger, IA
Con-Struct, Inc., Ames, IA
Enterprise Electric Inc., Boone, IA
2 10
Unit Price
No. 1 -
Per Cubic
Yard
125.00$
200.00$
3 11
Unit Price
No. 1
Per Cubic
Yard
200.00$
4 12