NORTH RIVER VALLEY WELL FIELD AND PIPELINE PROJECT
FINAL COMPLETION
On April 11, 2023, Council awarded a contract to Keller Excavating, Inc. in the amount of $10,200,955.80 for construction of a new well field to provide additional source water for the Ames Water Treatment Plant. During the course of the contract, seven change orders were approved for a net reduction in the final contract amount of $198,166.89, bringing the final contract amount to $10,002,788.91.
All work on the project is now complete and is ready to be accepted by the City. The final project budget is as follows.
| Funding Sources | Project Expenses | |
| Drinking Water State Revolving Loan | $ 12,161,000 | |
| Test Drilling | $ 124,005 | |
| Engineering, Admin, Legal | 725,272 | |
| Land | 111,038 | |
| Construction | ||
| Original Contract | 10,200,956 | |
| Change Order #1 | 30,125 | |
| Change Order #2 | 228,565 | |
| Change Order #3 | (17,305) | |
| Change Order #4 | 47,336 | |
| Change Order #5 | 5,636 | |
| Change Order #6 | 12,829 | |
| Change Order #7 | (505,353) | |
| Geotechnical Services | 14,839 | |
| Programming Services | 36,225 | |
| Archaeological Services | ||
| Contract 1 Original Contract | 22,773 | |
| Contract 1 Change Order 1 | 35,240 | |
| Contract 2 | 134,924 | |
| Project Totals | $ 12,161,000 | $ 11,207,105 |
| Unspent Contingency | $ 953,895 |
The engineering consultant previously certified that the project achieved Substantial Completion on May 22, 2026. Final completion was subsequently certified on September 23, 2026. An Engineer's Notice of Acceptability of Work is attached along with the contractor's final pay application documenting the final contract total. The final contract amount is $10,002,788.91.
The project was financed using a Drinking Water State Revolving Fund (SRF) loan. Because the SRF is a reimbursement program, only expenses that were actually incurred will be a part of the final loan amount. The unspent contingency amount shown above will not be drawn against the loan and thus will not need to be reimbursed.
The Iowa Department of Natural Resources has also granted the City loan forgiveness in the amount of $922,166 under its "Drinking Water SRF Bipartisan Infrastructure Law PFAS/Emerging Contaminants" grant funding. Once the loan is finalized, the principal on the loan will be reduced by that amount and the repayment schedule will be re-amortized. Council will need to take action at a later date to amend the loan agreement to incorporate the loan forgiveness.
- Accept as complete the North River Valley Well Field and Pipeline Project by Keller Excavating in a final contract amount of $10,002,788.91 and authorize the release of retainage in accordance with the contract.
- Do not accept the project as complete at this time, and give direction to staff on actions needed prior to Council accepting the project.
The two new wells constructed by the North River Valley Well Field and Pipeline Project have been in service since early 2026 and perform as intended. All remaining punch list items have been complete, and the engineer has provided a Notice of Acceptability of Work. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative 1 as described above.