HomeMy WebLinkAboutA032 - Resolution approving Change Order No. 4 for the Resource Recovery and Recycling Campus with Jensen Builders, LTD., of Des Moines, IA, for Bid Package 3-1 - Concrete & Steel WorkITEM #:35
DATE:10-13-26
DEPT:PW
SUBJECT:RESOURCE RECOVERY AND RECYCLING CAMPUS - CHANGE ORDER
NO. 4 FOR JENSEN BUILDERS, LTD.
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. Eighteen 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.
There have been three change orders approved to date for Jensen Builders, Ltd. for BP 3-1 -
Concrete & Steel Work. Change Order No. 1, a deduction in the amount of $174,948.97, was
approved by City Council on March 24, 2025, and included value engineering deductions to
reduce the project construction cost. Change Order No. 2, in the amount of $15,927.55, was
approved by staff and included the addition of embedded steel plates installed within the
tunnel wall so that future protective plating could be installed. Change Order No. 3, in the
amount of $13,875.90, was approved by staff and included changes to the scale house siding
to match the transfer station siding.
The R3C utilizes a partial tunnel located several feet below the elevation of the tipping floor.
Semi trucks will pull trailers into the tunnel, where they will be loaded from above with a wheel
loader located on the tipping floor above. The wall adjacent to the transfer tunnel has two bays
that can be utilized to load two transfer trailers at the same time.
The southern-most bay wall is likely to be utilized most heavily for loading municipal solid
waste (MSW) into transfer trailers because it is directly adjacent to the processing equipment.
The southern bay wall is protected by heavy AR-400 steel plates that are designed to take the
brunt of the wear and damage associated with the handling of the MSW.
The northern bay wall does not include the protective plating because the majority of
the loading operations are assumed at the southern bay. However, staff believes it is
appropriate to protect the northern bay wall as well, as there will be times where
loading operations will need the additional bay. It is more cost effective to include the
wall protection in the construction now than to retrofit at a later date. Change Order No.
4 includes the installation of the additional wall plating at a cost of $75,764.25.
Revenue for this change order will come from the project contingency fund which
currently has $413,321.22.
A summary of awarded project contracts and proposed change orders is below:
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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 ($126,110) $1,474,890
03-1 – Concrete
and Steel Work
Jensen Builders,
Ltd., Des
Moines, IA
$4,675,500 ($145,145.52)
75,764.25
(this
Council
action)
$4,606,118.73
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
31-1 – Site
Demolition &
Earthwork
Con-Struct, Inc.,
Ames, IA $575,000 $218,568 $793,568
32-1 – Paving &
Sidewalk Work
Lakeside
Contractors,
LLC, Ames, IA
$1,028,129 ($12,728.85) $1,015,400.15
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 ($1,255,792) $6,542,217
ORIGINAL BID
TOTAL $19,619,767
SUM OF
CHANGE
ORDERS
($1,433,873.37)$75,764.25
REVISED
CONTRACT
TOTAL
$18,261,657.88
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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 36,930.85
Builder's Risk Insurance 25,444
Construction Contracts (as bid)$19,619,767
Previously approved change
orders (1,433,873.37)
Proposed Change Order #4
(this Council Action)75,764.25
Construction Incentives 100,000
Items by Owner
(FFE/Cameras/Fiber
Network/Tree Clearing)
266,600
Construction Contingency
(revised)337,556.97
Construction Inspection (est)75,000
Construction Manager Fee
(Fixed fees plus 2.25% of
contract amounts) (revised)
958,927.30
Construction Manager General
Conditions Costs (est.) 448,000
R3C Construction Revenue
Subtotal $22,693,807 R3C Construction Subtotal $22,693,807
Electric Utility Fund $2,340,000 Mobile Equipment - New
Transfer Trucks (6x) (actual)$1,230,384
G.O. Bonds $975,000 Mobile Equipment - New
Transfer Trailers (7x) (actual)942,585
Unobligated G.O. Bonds 225,000 Mobile Equipment - Use
Transfer Trailers (3x) (est.)180,000
Water Utility Fund 40,000 Freel Drive Paving (as bid +
contract admin)$1,102,310
Total Project Revenues $26,273,807 Total Project Expenses $26,149,086
A revised project budget is provided below:
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ALTERNATIVES:
1. Approve Change Order No. 4 to Jensen Builders LTD., of Des Moines, IA, in the amount
of $75,764.25.
2. Do not approve the change order and direct staff to make other modifications to the
project.
CITY MANAGER'S RECOMMENDED ACTION:
Providing plated protection of the walls adjacent to the transfer tunnel will protect the
integrity of the building structure and benefit the long-term operational capabilities of
the R3C. Including the plates now during construction will allow the work to take place
without interrupting the ability to transfer MSW in the future. Retrofitting the plates at a
later date will be more expensive and impact operations at the facility. Therefore, it is the
recommendation of the City Manager that the City Council approve Alternative 1, as described
above.
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