5.3 ERMUSR 07-13-2021______________________________________________________________________________
Page 1 of 1
UTILITIES COMMISSION MEETING
TO:
ERMU Commission
FROM:
Chris Kerzman – Engineering Manager
MEETING DATE:
July 13, 2021
AGENDA ITEM NUMBER:
5.3
SUBJECT:
Field Services Facility Expansion Project – Award and Assign Construction Contract
ACTION REQUESTED:
• Adopt the Resolution Awarding and Approving the Assignment of Construction Contract
to RJM Construction.
BACKGROUND:
RJM has begun construction, focusing on the northeast portion of the site.
DISCUSSION:
RJM has started construction on site, focusing the start of earthwork on the northeast portion
of site near the existing wetlands. With the high water table in the area, they have mobilized a
dewatering contractor to control the groundwater. It does not appear that this will create a
significant impact to the project schedule. Upcoming work over the next month is expected to
focus on earthwork and excavations, as well as site utilities and stormwater installation.
RJM has terminated the contract with the steel supplier and is working directly with the
supplier of the roof joists and decking. The portion of the steel supply that the previous
contractor was completing will need to be re-bid and awarded by the Commission. RJM has
solicited quotes for the portion of the steel that is time critical and ERMU will be advertising for
public bids for the remainder of the steel supply. Relying on budgetary numbers that ERMU has
received from RJM, the full cost will be significantly higher than the original contract, and staff
will be working with RJM to determine recourse against the defaulted contractor once all the
costs of replacing the defaulted contractor are determined.
Staff expects to provide handouts of the resolution, a bid tabulation for the quotes, and letter
of recommended award at the time of the July commission meeting.
We have worked through the details to combine the properties for the final plat for the Field
Services Facility property and will be filing all the paperwork with the county.
111
/WY° /4
HANDOUT AT MEETING - LETTER OF RECOMMENDATIEty
11117111114.
CONSTRUCTION
July 13,2021
Chris Kerzman
Engineering Manager
Elk River Municipal Utilities
1705 Main Street
Elk River,MN 55330-0430
RE: Elk River Municipal Utilities Field Services Facility Expansion
Dear Mr. Kerzman;
Due to the default on the project by the original steel fabricator,RJM has been forced to identify
a new steel fabricator in order to maintain the schedule and forward progress of the project.
We have worked to build interest in the revised steel supply scope of work for Area A of the new
structure,and of the five AISC certified fabricators that we contacted,only two were interested in
the project and felt that they could meet our schedule requirements. Briese Iron Works,Inc. was
one of the original three bidders and has been willing provide us another bid for this smaller
scope of work. Due to the estimated dollar value of the structural steel in Area B and the
miscellaneous metals work,this scope will have to be publicly bid which we are preparing
documents for.
We recommend to the Utilities Commission that they approve the award of the following
contracts at this time.
BID CATEGORY AWARD AMOUNT
5A1—Steel Material Base Bid: $172,730.00
Briese Iron Works, Inc.
7010 Dresser Dr. NE
Rochesters, MN 55906
If you have any question, please feel free to contact me at your earliest convenience.
Sincerely
Just' Rice
Sen. r Project Manager
830 Boone Avenue North
Golden Valley,Minnesota 55427 952-837-8600 RJMConstruction.com
HANDOUT AT MEETING - BID TABULATION
River Municipal Building
immary by Trade
3,2021
1164111
ategory Steel Material
lid or Company Low Bid CONSTRUCTION
any Base Bid Bid Addenda Alt#1 Alt#2 Alt#3 Alt#4 Alt#5 Total Contract
Security 0 0 0 0 0 0
$172,730 $0 $0 $0 $0 $0 $0 $0 $172,730
$172,730 $172,730
enerica Steel Non-Responsive Non-Responsive
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
HANDOUT AT MEETING - RESOLUTION AWARDING AND APPROVING ASSIGNMENT OF CONTRACT
RESOLUTION NO. 21-14
BOARD OF COMMISSIONERS
ELK RIVER MUNICIPAL UTILITIES
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF ELK RIVER MUNICIPAL
UTILITIES AWARDING AND APPROVING ASSIGNMENT OF CONSTRUCTION CONTRACT
TO RJM CONSTRUCTION FOR THE ELK RIVER MUNICIPAL FIELD SERVICES FACILITY
PROJECT
WHEREAS, Elk River Municipal Utilities (ERMU) and Contractor (RJM) have entered into
a certain Standard Form of Agreement between Owner and Construction Manager
dated January 12, 2021 ("Contract"), whereby Contractor undertakes the construction
management of project known as the ERMU Field Services Facility Expansion Project
("Project"); and
WHEREAS, at its February 9, 2021 meeting the Utilities Commission authorized
advertisement of bids and quotes. The project was advertised from February 27, 2021 to
March 24, 2021, and bids were opened and publicly read on March 24, 2021; and
WHEREAS, the Project bid documents included the proposed contract for the Work (as
defined in the Contract); and
WHEREAS, the Contract requires that ERMU assign to RJM all of ERMU's rights in and to
contracts for the construction of the Work (as defined in the Contract) which have been
competitively bid and awarded by the Utilities Commission; and
WHEREAS, bid category 5A was awarded to Thornberg Steel on March 31, 2021, and the
Contractor for bid category 5A has since defaulted on their contract and the contract
has been terminated; and
WHEREAS, RJM has identified a separate and distinct quote category 5A1 that includes
the supply and fabrication of time critical structural steel to meet project schedule, and
ERMU will publicly bid the remainder of the work; and
WHEREAS, RJM is recommending award of quote category 5A1—Steel Material to
Briese Iron Works, Inc.
NOW, THEREFORE, in consideration of the mutual promise and agreements made in the
Contract and other good and valuable consideration the receipt and sufficiency of which
is hereby acknowledged:
1. ERMU herby grants, transfers and assigns to RJM all of its right, title and
interest in and to the contract identified below as included in the bid
documents.
2. RJM herby consents to and accepts this Assignment and agrees to perform all
of its obligations under the Contract for the benefit of ERMU. RJM will enter
into contract in the same form included in the bid Documents with the
contractor awarded the bid by ERMU.
3. This Assignment shall be binding upon and inure the benefit of ERMU and
RJM and their respective heirs, successors and assigns, as the case may be.
4. This Assignment may be signed in more than one counterpart, together shall
constitute an original document.
BID CATEGORY COMPANY AMOUNT
5A1 - Steel Material Briese Iron Works $172,730.00
NOW,THEREFORE BE IT HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF
ELK RIVER MUNICIPAL UTILITIES, that quote category 5A1 be awarded to Briese Iron
Works, Inc., and the assignment of construction contract for quote category 5A1 to RJM
Construction for the Elk River Municipal Utilities Field Services Facility Expansion Project
in the amount of$172,730.00 is approved.
This Resolution Passed and Adopted this 13th day of July, 2021.
John J. Dietz, Chair
Theresa Slominski, General Manager