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UTILITIES COMMISSION MEETING <br />TO:FROM: <br />ERMU Commission Chris Kerzman –Engineering Manager <br />MEETING DATE: AGENDA ITEM NUMBER: <br />April 13, 2021 5.4 <br />SUBJECT: <br />Field Services Facility Expansion Project –Award of Bids <br />ACTION REQUESTED: <br /> Adopt Resolution No. 21-7 Awarding Bids and Quotes for the ERMU Field Services <br />Facility Project <br /> Adopt Resolution No. 21-8 Approving Assignment of Construction Contracts to RJM for <br />the ERMU Field Services Facility Project <br /> Approve AIA A133-2019 Construction Management Contract Guaranteed Maximum <br />Price Amendment Exhibit A <br />BACKGROUND: <br />Staff has been working with Kodet Architectural Group, Ltd.and RJM Construction to design <br />and bid the Field Services Facility Expansion Project. RJM has been hired to provide <br />construction management services throughout construction. <br /> <br />This project will use a modified version of the Construction Manager at Risk method, in which <br />RJM will deliver the project for a guaranteed maximum price which is set when bids are <br />assigned. The guaranteed maximum price includes construction contingency and contractor <br />allowances to cover unforeseen costs that may arise. Elk River Municipal Utilities (ERMU) will <br />benefit from any savings at the conclusion of the project. Under this method, ERMU solicits, <br />receives, awards, then assigns the bids to RJM. <br /> <br />This project was advertised from February 27 through March 24, and bids were opened March <br />24. The bid for structural steel was accepted at a special commission meeting on March 31, <br />2021, due to volatility in the steel pricing and delivery times. RJM has evaluated the bids and <br />has provided a recommendation of award for the bid and quote categories. <br /> <br />DISCUSSION: <br />Staff is recommending award of the bid and quote categories outlined in RJM Construction’s <br />letter of recommendation. At this time, staff is not recommending that any of the alternates be <br />awarded due to overall project budget. Staff will manage contingency money as we progress <br />through construction with the option to include alternates as risk of needing contingency <br />money is reduced. <br /> <br />______________________________________________________________________________ <br />Page 1 of 2 <br />433 <br />