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Elk River �_ <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> ERMU Commission Chris Kerzman — Engineering Manager <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> March 31, 2021 2.1 <br /> SUBJECT: <br /> Field Services Facility Expansion Project—Award and Assign the Contract for Bid Category 5A <br /> Structural Steel Material. <br /> ACTION REQUESTED: <br /> Adopt, by motion, a resolution awarding bid category 5A and assigning contract to RJM <br /> Construction. <br /> BACKGROUND: <br /> Staff has been working with Kodet Architectural Group and RJM Construction to design and bid <br /> the Field Services Facility Expansion Project. RJM has been hired to provide construction <br /> management services throughout construction of the project. <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 /> This project was advertised from February 27 through March 24, and bids were opened March <br /> 24. RJM is currently evaluating the bids and will be assembling a full bid tabulation and <br /> recommendation of award for the remainder of the bid and quote categories at the regular <br /> commission meeting on April 13. Structural steel lead times are longer than anticipated, with <br /> bid lead times pushing start of construction into early July. <br /> DISCUSSION: <br /> RJM recommends that due to lead times and current market conditions ERMU award and <br /> assign the contract for bid category 5A at this meeting. RJM continues to investigate the <br /> remaining bids and quotes to determine the recommended award for the remainder of the <br /> project and final guaranteed maximum price. <br /> Staff is requesting, through the attached resolution, that the Commission award the contract <br /> for bid category 5A of the Field Services Facility Expansion project to Thornberg Steel, and <br /> assign the contract to RJM Construction. The attached resolution assigns the awarded bid <br /> Page 1 of 2 <br />