Ames rejects infrastructure bids as storm sewer costs surge 'well over budget'

Ames rejects infrastructure bids as storm sewer costs surge 'well over budget'Facing higher-than-expected utility construction costs, the Ames City Council voted to reject all bids for a major street improvement project to redesign its sanitary and storm sewer components.

City Council rejected all bids for the 2025/26 Asphalt Street Pavement Improvements project after utility components exceeded engineering estimates.

Public Works staff noted that storm sewer costs, in particular, came in significantly higher than expected due to shifting local contractor dynamics.

The city will redesign the project to evaluate rehabilitating existing storm sewer intakes and manholes rather than fully replacing them.

Separately, the council approved an $881,271 contract for water system improvements and an $81,379 change order for nutrient reduction modifications.

Ames, Iowa, is pumping the brakes on a planned infrastructure project after soaring storm sewer and sanitary sewer costs busted the project's budget. During the June 9, 2026, meeting, the Ames City Council voted to reject all bids for the 2025/26 Asphalt Street Pavement Improvements project. The decision followed a staff recommendation to redesign the project to align expenses with budgeted revenues. A public works staff member explained to the council that while roadway engineering estimates have historically been accurate, the utility components of this project saw a dramatic cost increase. "Our utility costs were out of line with what we had in the project," the staff member said. "When we're looking at it, we're also looking at the sanitary sewer and storm sewer. Storm sewer in particular came in well over budget." To bridge the funding gap, the city plans to explore alternative construction techniques. Rather than completely reconstructing storm sewer infrastructure, the public works department will evaluate whether intakes and manholes can be rehabilitated. The staff member noted that some storm sewer intakes located in residential driveways might be left in place if funding is insufficient to move them. The staff member attributed the high prices partly to shifting market dynamics, noting that some contractors have left the local market while new ones fill the void. "We're seeing that honestly across the board, some more utility work," the staff member said, adding that the city will need to carefully monitor current bid costs for future paving programs. While the street and utility redesign is underway, the city is moving forward with other water and wastewater capital projects. Through its consent agenda, the council approved an $881,271 contract with Boone-based Iowa Water & Waste Systems for the 2025/26 Water System Improvements Program. The council also approved an $81,379 change order with Woodruff Construction for the first phase of the Water Pollution Control Facility Nutrient Reduction Modifications project, as well as an agreement with Air Products and Chemicals, Inc. for liquid carbon dioxide for the Water Treatment Plant at $156 per ton.