2.1 ERMUSR 03-31-2021 Elk River �_
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Chris Kerzman — Engineering Manager
MEETING DATE: AGENDA ITEM NUMBER:
March 31, 2021 2.1
SUBJECT:
Field Services Facility Expansion Project—Award and Assign the Contract for Bid Category 5A
Structural Steel Material.
ACTION REQUESTED:
Adopt, by motion, a resolution awarding bid category 5A and assigning contract to RJM
Construction.
BACKGROUND:
Staff has been working with Kodet Architectural Group and RJM Construction to design and bid
the Field Services Facility Expansion Project. RJM has been hired to provide construction
management services throughout construction of the project.
This project will use a modified version of the Construction Manager at Risk method, in which
RJM will deliver the project for a guaranteed maximum price which is set when bids are
assigned. The guaranteed maximum price includes construction contingency and contractor
allowances to cover unforeseen costs that may arise. Elk River Municipal Utilities (ERMU) will
benefit from any savings at the conclusion of the project. Under this method, ERMU solicits,
receives, awards, then assigns the bids to RJM.
This project was advertised from February 27 through March 24, and bids were opened March
24. RJM is currently evaluating the bids and will be assembling a full bid tabulation and
recommendation of award for the remainder of the bid and quote categories at the regular
commission meeting on April 13. Structural steel lead times are longer than anticipated, with
bid lead times pushing start of construction into early July.
DISCUSSION:
RJM recommends that due to lead times and current market conditions ERMU award and
assign the contract for bid category 5A at this meeting. RJM continues to investigate the
remaining bids and quotes to determine the recommended award for the remainder of the
project and final guaranteed maximum price.
Staff is requesting, through the attached resolution, that the Commission award the contract
for bid category 5A of the Field Services Facility Expansion project to Thornberg Steel, and
assign the contract to RJM Construction. The attached resolution assigns the awarded bid
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category 5A—Structural Steel Material to RJM. The remainder of the bid and quote categories
will be considered at the regular commission meeting on April 13.
FINANCIAL IMPACT:
The attached project budget includes the preliminary bid tabulation and all soft costs expected
for this project. Additional allowances and contingencies have been included due to the
schedule shift to account for possible winter weather delays. Staff is planning to evaluate the
contingency amounts at the end of earthwork, and if necessary budget for any amount above
the $13.5 million in the 2022 capital budget. The final budget and GMP will be presented at the
regular commission meeting on April 13.
ATTACHMENTS:
• Letter of Recommendation from RJM Construction —Award of Bid Category 5A—Steel
Material
• Bid Tabulation for Bid Category 5A—Steel Material
• Project Budget Estimate from Kodet Architectural Group
• Resolution No. 21-3 Approving Assignment of Construction Contract to RJM
Construction for the ERMU Field Services Facility Project
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