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Commission moves forward on reclaimed-tank CMAR procurement, approves equipment purchases and tables hydro lobbying decision
Summary
The commission authorized staff to solicit construction-manager-at-risk bids for the reclaim tank, approved lower-cost equipment purchases (makeup air unit and tower mixer), and tabled a decision on extending a $25,000–$45,000 lobbying contract for the hydro project until staff obtains MMUA input and technical clarity about generator availability.
The Brainerd Public Utilities Commission authorized staff to pursue a construction-manager-at-risk (CMAR) procurement for the reclaimed-tank project, approved two equipment purchases, and tabled a decision about extending a state-capital lobbying contract tied to the hydro generation effort.
Staff explained that earlier sealed bids for the reclaimed tank came in higher than budgeted; Morgan, a representative from Bolton and Mink, described CMAR as a process that brings a contractor into design to value-engineer scope and arrive at a guaranteed maximum price (GMP). "If you have a budget in mind, let's say $5 million, we can scope that project down and work with a contractor to get down to it," Morgan said, arguing CMAR provides more transparency and cost-control options than a traditional design-bid-build approach.
Commissioners discussed the tradeoffs—contingency allowances, possible allowances for change orders, and the need for active staff involvement—and directed staff to proceed with requesting CMAR proposals. The commission approved that step.
Separately, the commission approved the lowest responsible bid for a main-lift makeup air unit for the grit and screening building; staff confirmed the project was within the $150,000 budget carried over from 2024. Commissioners also approved installing a mixer in the downtown million-gallon water tower to reduce stratification and improve water quality; the mixer equipment was presented as under $25,000 with roughly $9,000 estimated for electrical work.
On the hydro project lobbying contract, staff outlined options: extend the existing contract with Marty Seaffort at Flity and Hood (12 months for $25,000 or through Dec. 31, 2027 for $45,000), pursue MMUA legislative assistance, or pause. Staff reported that several manufacturers had paused production of the chosen generator type, creating a vendor/technology roadblock. Commissioners questioned continuing to spend on lobbying while core technical and vendor questions remain. A commissioner moved to table the contract extension until the next meeting pending input from MMUA and clearer information on generator availability; the motion was seconded and passed.
What’s next: Staff will solicit CMAR proposals for the reclaim tank, return with vendor quotes for credit-card processing and the recommended payment portal choice, schedule the mixer and makeup-air installations, and report back on MMUA feedback and generator-technology options before deciding on further lobbying expenditures.
