5.4 ERMUSR 04-13-2021UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Chris Kerzman –Engineering Manager
MEETING DATE: AGENDA ITEM NUMBER:
April 13, 2021 5.4
SUBJECT:
Field Services Facility Expansion Project –Award of Bids
ACTION REQUESTED:
Adopt Resolution No. 21-7 Awarding Bids and Quotes for the ERMU Field Services
Facility Project
Adopt Resolution No. 21-8 Approving Assignment of Construction Contracts to RJM for
the ERMU Field Services Facility Project
Approve AIA A133-2019 Construction Management Contract Guaranteed Maximum
Price Amendment Exhibit A
BACKGROUND:
Staff has been working with Kodet Architectural Group, Ltd.and RJM Construction to design
and bid the Field Services Facility Expansion Project. RJM has been hired to provide
construction management services throughout construction.
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. The bid for structural steel was accepted at a special commission meeting on March 31,
2021, due to volatility in the steel pricing and delivery times. RJM has evaluated the bids and
has provided a recommendation of award for the bid and quote categories.
DISCUSSION:
Staff is recommending award of the bid and quote categories outlined in RJM Construction’s
letter of recommendation. At this time, staff is not recommending that any of the alternates be
awarded due to overall project budget. Staff will manage contingency money as we progress
through construction with the option to include alternates as risk of needing contingency
money is reduced.
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Staff is requesting, through the attached resolutions, that the Commission award the contracts
outlined in RJM’s letter of recommendation andassign the contracts to RJM Construction.
Staff is requesting approval of the AIA A133-2019 Construction Management Contract
Guaranteed Maximum Price Amendment Exhibit A, which will set the Guaranteed Maximum
Price that RJM agrees to complete the project for.
FINANCIAL IMPACT:
The attached project budget includes the 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.
ATTACHMENTS:
Letter of Recommendation from RJM Construction – Award of Bids
Bid Tabulation
Project Budget Estimate from Kodet Architectural Group, Ltd.
Resolution No. 21-7 Awarding Bids and Quotes for the ERMU Field Services Facility
Project
Resolution No. 21-8 Approving Assignment of Construction Contracts to RJM for the
ERMU Field Services Facility Project
AIA A133-2019 Construction Management Contract Guaranteed Maximum Price
Amendment Exhibit A
RJM Estimate Summary
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