HomeMy WebLinkAboutA001 - Council Action Form dated July 14, 2026ITEM #:41
DATE:07-14-26
DEPT:PW
SUBJECT:RESOURCE RECOVERY AND RECYCLING CAMPUS CONSTRUCTION -
CHANGE ORDER
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. Ten change
orders have been approved for the various bid packages to date, with the majority of the
changes resulting from the value engineering process that occurred follow bid opening.
City staff indicated to City Council in a memo on May 12, 2026 that unsuitable soil and
buried rubble had been uncovered at the R3C site and that a change order would be
forthcoming once the scope of work was better defined.
During conceptual and final design efforts a total of 21 soil borings were taken to characterize
the existing soil conditions expected on site. Though the soil borings did indicate areas of
existing fill on the site, the extent of the unsuitable soils across the 9.5 acres was not readily
apparent until construction activities began. The R3C site development work was designed
such that in any areas where excavation is necessary, the excess soil could be utilized in
areas where fill is necessary to increase the site elevation.
The eastern portion of the site was utilized as a yard waste area for many years prior to the
City acquiring the property. Though the existing yard waste was removed from the site
and the site returned to the original elevation, one to two feet of the upper part of the
site were compressed through the years and contained partially decomposed yard
waste.
This material was not suitable as fill for the R3C construction because the amount of
organic material it contained was too high to use as compacted fill, and testing
indicated the decomposition process was too far along for the material to provide value
as compost.
Staff and Story Construction were able to identify two locations within three miles that would
accept the material as cover at no cost. For each cubic yard of material that was trucked off
the site, an equal amount of suitable fill material was required to be imported. Con-Struct was
able to import material from stockpiles that were adjacent to the project site.
In total, 490 loads, or approximately 7,350 cubic yards of unsuitable material were
removed and replaced at a cost of $136,051. This equals a unit cost of $18.51 per cubic
yard. This unit cost is in alignment with recent bid costs in other Public Works projects
that range from $15 to $30 per cubic yard for similar work.
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Additionally, other areas of the site had been filled in by previous owners over the course of
their ownership. Pockets of large buried concrete rubble, debris, and other material that
would be best classified as garbage were encountered during excavation. The debris and
garbage materials were removed and disposed of at the landfill.
The concrete rubble was not suitable for recycling due to the amount of dirt contamination.
Rather than haul away the concrete rubble, it was moved to one of the storm water detention
areas and buried a minimum of 6 feet below the bottom of the stormwater detention area. This
area is outside of any future potential expansion of the R3C site. The excess material from the
excavation was necessary for the additional fill during site development activities. The cost of
this work was $24,800.
Change Order No. 2 to Con-Struct, Inc of Ames, IA in the amount of $160,851 ($136,051
+ $24,800) is the combination of two work activities noted above. Revenue for this
change order will come from the project contingency fund which currently has
$582,358.
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 ($174,948.97) $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
26-1 – Electrical,
Communications,
& Electronic
Safety and
Security Work
Enterprise
Electric, Inc.,
Boone, IA
$1,329,000 ($50,970) $1,278,030
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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 (1,627,770.97)
Proposed Change Order #2
(this Council Action)160,851
Construction Incentives 100,000
Items by Owner
(FFE/Cameras/Fiber
Network/Tree Clearing)
266,600
Construction Contingency
(revised)421,507
31-1 – Site
Demolition &
Earthwork
Con-Struct, Inc.,
Ames, IA $575,000 $57,717
$160,851
(this
Council
action)
$793,568
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 ($1,254,926) $6,543,083
ORIGINAL BID
TOTAL $19,619,767
SUM OF
CHANGE
ORDERS
($1,627,770.97)$160,851
REVISED
CONTRACT
TOTAL
$18,152,847.03
A revised project budget is provided below:
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Construction Inspection (est)75,000
Construction Manager Fee
(Fixed fees plus 2.25% of
contract amounts) (revised)
956,479
Construction Manager General
Conditions Costs (est.) 448,000
R3C Construction
Revenue Subtotal $22,693,807 R3C Construction Subtotal $22,642,113.03
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
ALTERNATIVES:
1. Approve Change Order No. 2 to Con-Struct, Inc of Ames, IA, in the amount of $160,851.
2. Do not approve the change order and direct staff to make other modifications to the
project.
CITY MANAGER'S RECOMMENDED ACTION:
A portion of the the soils encountered onsite during excavation did not meet project
specifications to support construction of the R3C. Staff has worked closely with the
contractor to identify these locations and has implemented cost effective solutions
while keeping the overall project in alignment with the schedule necessary to begin
operations at the R3C before July 1, 2027. Therefore, it is the recommendation of the City
Manager that the City Council approve Alternative 1, as described above.
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