ITEM #:
35
 
DATE:
10-13-26
 
DEPT:
PW
 

COUNCIL ACTION FORM

SUBJECT:

RESOURCE RECOVERY AND RECYCLING CAMPUS - CHANGE ORDER NO. 4 FOR JENSEN BUILDERS, LTD.

 
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:

 

 

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

 

A revised project budget is provided below:

 

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

 

 

 

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.