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Commission approves $5.3 million GMP and construction-phase contract for reclaimed-water tank
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Summary
The Brainerd Public Utilities Commission authorized a guaranteed maximum price (GMP) of $5,300,000 and a construction-phase contract with Rice Lake Construction Group for the water treatment plant reclaimed tank project, with a $225,000 contingency. Staff said major electrical upgrades were removed from the scope to meet budget targets.
The Brainerd Public Utilities Commission on April 28 authorized a guaranteed maximum price of $5,300,000 and directed staff to execute the construction-phase contract with Rice Lake Construction Group for a reclaimed-water tank at the city’s water treatment plant.
Public Works Director Paul told commissioners that earlier bids on the overall project returned a low bid near $10.4 million; through a redesign and a construction-manager-at-risk (CMAR) delivery approach, staff and consultant Bolton & Menk negotiated a GMP of $5.3 million that includes $225,000 in contingency. "That GMP is set, at 5.3," Paul said in the presentation.
Why it matters: the reclaimed tank is the portion of the work tied to a state SPAP grant and is intended to advance the city’s water treatment capacity. Commissioners pressed staff on scope reductions after seeing earlier, much higher bids; consultant Mac Groteman of Bolton & Menk said the largest items removed were electrical and control upgrades to the existing plant, which were judged "wants rather than needs" for the current phase.
How the project will proceed: Rice Lake, as the CMAR, will prepare trade-specific bid packages and prequalify trade partners for competitive bidding on those packages. Staff explained that if trade bids come in lower than the GMP, the city pays the lower amounts, but if bids exceed the GMP, the construction manager bears that risk under the CMAR arrangement. Paul told the commission the construction phase was expected to begin in June or July, with trade bidding and 0-day plans to follow.
Budget and funding notes: staff said the utility department previously received a $5,000,000 direct legislative appropriation toward construction. Earlier design-bid-build bids were above the budget; the redesign and CMAR approach substantially reduced the price by removing nonessential electrical/control work. The commission approved the motion to enter the construction phase and execute the contract with Rice Lake Construction Group by voice vote.
Next steps: staff will finalize construction-phase documents, prequalify trade partners, and move into trade bidding and construction schedule work. The commission will receive updates as trade bids and subcontracts are awarded.
