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Arvada council approves $2.09 million change order for West 72nd Avenue project; city outlines funding plan
Summary
The Arvada City Council approved change order No. 5 with Yeltig Operations LLC for owner’s‑representative services on the West 72nd Avenue (Kipling–Sim) project, authorizing up to $2,085,552 for construction management and inspection; staff said the project remains under a larger budget gap that the city plans to cover without new taxes.
The Arvada City Council on Dec. 2 approved change order No. 5 with Yeltig Operations LLC to provide owner’s‑representative services for the West 72nd Avenue Kipling Street to Sim Street project, authorizing $2,085,552 for construction management, inspection and material testing and a revised contract total not to exceed $5,497,917.89.
City staff said the change order continues long‑running owner’s‑rep services on a project that began in 2019 and has experienced timeline extensions. An Olteg representative described the scope as “broad project oversight, design reviews, independent cost estimating, value engineering, construction administration, construction inspection, and construction management with materials testing and close out activities,” and said the additional services extend the contract through 2028 as the project moves toward completion.
Finance staff told council the original 2019 project budget was about $64.5 million and the current estimate is roughly $97.5 million, leaving an approximate gap of $33 million. Officials outlined a multi‑part funding approach: use unissued bond authority from the 2019 sales‑tax bond (about $8 million of authority, with roughly $3.9 million remaining to allocate), apply interest earnings already reserved to the project (estimated ~$3 million), and draw on CIP sales‑tax carve‑outs reserved for capital projects in 2026 (staff estimated issuing the remaining ~$27 million without raising new taxes). Staff said the $2,000,000 being approved with this change order will come from remaining 2019 bond dollars.
Council members asked about alternatives to hiring consultants, and staff confirmed the owner’s‑rep model augments internal capacity for complex capital improvement projects rather than creating permanent full‑time hires. The council voted 5–0 to approve the change order, with Council member Pfeiffer and Mayor Simpson excused.
Next steps staff outlined include agreements with Union Pacific related to the project and returning to council with a guaranteed maximum price and related vendor contracts in early 2026 before additional construction proceeds.
Vote: Change order No. 5 with Yeltig Operations LLC approved 5–0 (Pfeiffer and Mayor Simpson excused).
