City leaders voted to move ahead with a major overhaul of Ames’ waste system after trimming nearly $1.6 million from an over-budget project, bringing the total construction cost for a new Resource Recovery and Recycling Campus (R3C) to about $18.1 million.
The Ames City Council awarded 11 separate construction contracts for the project at its Tuesday meeting.
The project will replace the city’s aging Resource Recovery Plant and reshape how waste is handled across Story County. Initial bids opened March 3 came in at $19.6 million or about $2.8 million higher than the $16.8 million engineers had estimated. That prompted city staff and contractors to quickly revise plans and identify cost-saving measures.
Those changes, including design adjustments and shifting some expenses to other funding sources, reduced the project cost significantly. Additional savings of about $100,000 may still be possible as details are finalized.
City officials say the project remains critical despite the higher-than-expected bids, citing growing challenges with the current waste system, including rising costs and regulatory pressures.
Breaking down the cost cuts, contract decisions
The revised construction plan spreads work across 11 contractors, covering everything from general construction and utilities to specialized systems such as fire suppression and process integration. The largest portion of the project, nearly $6.7 million after reductions, is tied to equipment and systems that will handle and process waste.
City staff recommended awarding all contracts based on the lowest responsible bids, even after one contractor withdrew from consideration for paving work. In that case, the contract went to the next lowest bidder.
To help offset costs, officials plan to use alternative funding sources totaling $687,077 for certain project elements. Fleet services will cover expenses related to fueling infrastructure and gate access systems, while stormwater improvements will be partially funded through an existing environmental program. Additional support is expected from a state recycling grant and a small utility rebate.
The revised budget also includes reduced costs for inspections, permitting and contingency funds to balance the higher construction costs.
The total expense figure in the revised budget is $26.3 million. In addition to construction costs, total expenses include land acquisition, project design and contingency funds.
Bonds, utility funds and other sources will pay the project’s costs.
Replacing the aging current system
The new campus marks a major shift from the city’s current waste processing approach, which has been in place since 1975. The existing facility separates recyclable metals and converts some waste into fuel for the city’s power plant, but that system has become increasingly difficult and costly to maintain.
Under the new model, waste will still be sorted to recover recyclable materials, but the remaining trash will be transported to a landfill in Carroll County rather than processed into fuel.
What the next steps are
The council plans to hold a special follow-up meeting to finalize agreements and allow construction to begin without delay. Without that step, the start of construction could be pushed back by several weeks. Some of the early contracts are considered essential to keeping the project on schedule.
City staff say they will continue working with contractors throughout construction to identify additional savings opportunities and improve the facility’s design where possible.