HomeMy WebLinkAboutA026 - April 28, 2026, Regular Meeting of the Ames City CouncilITEM #:30
DATE:04-28-26
DEPT:PW
SUBJECT:RESOURCE RECOVERY AND RECYCLING CAMPUS CONSTRUCTION -
CHANGE ORDERS
COUNCIL ACTION FORM
BACKGROUND:
On March 24, 2026, the City Council approved final plans and specifications and awarded
contracts for the construction of the Resource Recovery and Recycling Campus (R3C). At
that meeting 11 separate bid packages (BPs) were award to various contractors. Additionally,
eight change orders were presented at the time of award, five of which required City Council
approval. The change orders were the result of a value engineering exercise that was
necessary to reduce the project scope aligning it closer to the approved project budget.
Staff noted at the March 24 meeting that potential further changes were likely pending
additional review and and engineering consideration. Several additional changes have been
finalized and a few clarifications are ready for Council's approval:
RRT DESIGN AND CONSTRUCTION - CHANGE ORDER NO. 2
Change Order No. 2 for RRT Design and Construction (BP 40-1) is a deduction in the
amount of $120,550. This change order includes removal of the scope required to fabricate
and install ladders, handrails, and stairs that lead from the tipping floor into pit locations where
equipment and roll-off containers will be located. This scope of work was duplicated between
two bid packages; thus it is being removed from BP 40-1 and will remain in BP 03-1.
JENSEN BUILDERS LTD - CHANGE ORDER NO. 2
Change Order No. 2 for Jensen Builders LTD (BP 03-1), adds $82,916.03. This change order
includes two major scope items. The first involves special metal fabrications inside the transfer
tunnel that help guide waste into the transfer trailers from the tipping floor. This scope was
initially with RRT's contract as part of BP 40-1. However, it was removed from BP 40-1 in
RRT's Change Order No. 1 because Jensen Builders LTD could provide the same scope of
work at a cost of $51,396.03. In comparison, RRT provided a deduct of $193,801 in BP 40-1
Change Order No. 1 to remove this work from its scope. Therefore, a portion of this Change
Order No. 2 is to add $51,396.03 to include the tunnel guides.
The second major scope item in this change order includes the addition of drainage tile around
the transfer tunnel excavation. This value of this work was estimated at $30,000 at the time of
contract award and was assumed to be in a different bid package (BP 31-1, with Con-Struct,
Inc.). Following contract award it was determined that the best value would be to include this
work in BP 03-1 with Jensen Builders LTD at a value of $31,520, and not in BP 31-1.
CON-STRUCT, INC. - MODIFICATION TO CHANGE ORDER NO. 1
The drainage tile around the transfer tunnel excavation that is noted above was initially
assumed to be included in Change Order No. 1 to Con-Struct, Inc. (BP 31-1) in the amount of
$87,717 as approved by City Council on March 24, 2026. Included in the approved Change
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Order No. 1 was an estimate in the amount of $30,000 for the same drainage tile work.
Following detailed evaluation with Con-Struct, it was determined that the cost of this work was
$37,000, which is greater than the $31,520 that Jensen Builders LTD has quoted to perform
the same work as part of BP 03-1. As noted in the paragraph above, this scope of work is
recommended to be added to Jensen Builders LTD's contract rather than Con-Struct's.
Because City Council previously approved this change order, s taff recommends City
Council approve a modification to Change Order No. 1 to Con-Struct, Inc. reducing the
approved amount by $30,000. This action results in a revised Change Order No. 1
amount of $57,717 reflecting the removal of the drainage tile work.
RRT DESIGN AND CONSTRUCTION - MODIFICATION TO CHANGE ORDER NO. 1
For Council's clarification, Change Order No. 1 to RRT Design and Construction (BP 40-1)
was approved on March 24, 2026, a deduction in the amount of $1,134,320. Staff has
discovered a numerical transposition error in the awarding the change order. The amount
should have been a deduction in the amount of $1,134,376 resulting in an additional $56 of
reduction in the project budget. Because City Council previously approved this change
order, staff recommends City Council approve a modification to Change Order No. 1 to
RRT Design and Construction, increasing the approved deduction by $56, resulting in a
revised Change Order No. 1 amount of $1,134,376.
A summary of awarded project contracts and proposed change orders is below:
BID PACKAGE CONTRACTOR AS BID
AMOUNT
PREVIOUSLY
APPROVED
CHANGE
ORDERS
PROPOSED
CHANGE
ORDER
REVISED
CONTRACT
TOTALS
01-1 – General
Construction Work
RH Grabau
Construction,
Inc., Boone, IA
$1,601,000 ($126,538) $1,474,462
03-1 – Concrete
and Steel Work
Jensen Builders,
Ltd., Des Moines,
IA
$4,675,500 ($257,865)
$82,916.03
(this
Council
action)
$4,500,551.03
09-1 – Gypsum
Board Assembly
Work
Heartland
Finishes, Inc.,
Des Moines, IA
$430,675 ($30,000) $400,675
14-1 –
Elevator/Lift Work
TK Elevator
Corporation,
Urbandale, IA
$109,800 -- $109,800
21-1 – Fire
Suppression
Systems Work
Tri-City Fire
Protection LLC,
Davenport, IA
$169,284 -- $169,284
22-1 – Plumbing &
HVAC Work
ACI Mechanical,
Inc., Ames, IA $1,180,000 -- $1,180,000
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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
Fleet Services Reserve Fund 425,000 Due Diligence prior to closing 15,465
FY 2025/26 Stormwater
Quality Improvements CIP 159,077 Conceptual Design and
Financial Modeling 50,000
Electric Services Rebate 3,000 Final Design 965,715
Solid Waste Alternatives
Program (SWAP) Grants 100,000 Final Design Contingency 75,000
Permitting 38,000
Construction Contracts (as bid)$19,619,767
Previously approved change
orders (1,560,081)
Proposed change orders
(this Council Action)(67,689.97)
26-1 – Electrical,
Communications,
& Electronic
Safety and
Security Work
Enterprise
Electric, Inc.,
Boone, IA
$1,329,000 ($50,970) $1,278,030
31-1 – Site
Demolition &
Earthwork
Con-Struct, Inc.,
Ames, IA $575,000 $87,717
($30,000)
(this
Council
action)
$632,717
32-1 – Paving &
Sidewalk Work
Lakeside
Contractors,
LLC, Ames, IA
$1,028,129 ($16,410) $1,011,719
33-1 – Site Utility
Work
On Track
Construction
LLC, Nevada, IA
$723,370 ($31,695) $691,675
40-1 –
Millwright/Process
Integration Work
RRT Design &
Construction,
Melville, NY
$7,798,009 ($1,134,320)
($120,550)
($56)
(this
Council
action)
$6,543,139
ORIGINAL BID
TOTAL $19,619,767
Sum of
Deductions ($1,560,081)($67,689.97)
REVISED
CONTRACT
TOTALS WITH
DEDUCTIONS
$17,991,996.03
A revised project budget is provided below:
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Construction Incentives 100,000
Items by Owner
(FFE/Cameras/Fiber
Network/Tree Clearing)
252,700
Construction Contingency 428,598
Construction Inspection (est)228,760
Construction Manager Fee
(Fixed fees plus 2.25% of
contract amounts) (revised 4-28
Council Meeting)
952,860
Construction Manager General
Conditions Costs (est.) 448,000
R3C Construction
Revenue Subtotal $22,693,807 R3C Construction Subtotal $22,624,594.03
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 (as bid +
contract admin)$1,102,310
Total Project Revenues $26,273,807 Total Project Expenses $26,066,904.03
Additional changes will continue to be evaluated as construction begins and may require City
Council approval at a future date as the proposals are vetted for inclusion into the project.
ALTERNATIVES:
1. City Council can approve the following changes for construction contracts at the
Resource Recovery and Recycling Campus:
a. Change Order No. 2 to RRT Design & Construction of Melville, NY, a deduction in
the amount of $120,550.
b. Change Order No. 2 to Jensen Builders LTD of Des Moines, IA, in the amount of
$82,916.03.
c. Modify Change Order No. 1 to Con-Struct, Inc of Ames, IA, a deduction of $30,000,
resulting in a revised Change Order No. 1 amount of $57,717.
d. Modify Change Order No. 1 to RRT Design & Construction of Melville, NY, a
deduction in the amount of $56, resulting in a revised Change Order No. 1, a
deduction in the amount of $1,134,376.
2. Do not approve any change orders and direct staff to make other modifications to the
project.
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CITY MANAGER'S RECOMMENDED ACTION:
The value engineering exercise for the Resource Recovery and Recycling Campus
project produced several changes that have led to significant cost savings for the R3C
project. This process was performed in a very short period of time, resulting in the need
for the adjustments described above. Approval of these change orders will reduce the
overall project cost and allow for the project scopes to remain in the most cost effective
bid packages. Therefore, it is the recommendation of the City Manager that the City Council
approve Alternative 1, as described above.
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