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AGENDA RECOMMENDATION |
Consent Calendar 5.J.
City Council Regular Meeting
- Meeting Date:
- 05/11/2026
Agenda Item:
Resolution authorizing the execution of the Airport Tower Construction Manager at Risk Agreement with Knutson Construction.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
Minnesota Statute 471.463 authorizes municipalities to select a Construction Manager to manage the construction process, including but not limited to responsibility for the price, schedule, and workmanship of the construction performed.
A municipality shall conduct contract negotiations with the highest ranked proposer to reach an agreement on the cost and terms of the contract. If an agreement cannot be reached with the highest ranked proposer, the municipality may begin negotiations with the next highest ranked proposer. The negotiation process continues until an agreement is reached with a proposer or the municipality rejects all proposals.
As Council recalls in February, Knutson Construction Services Mankato, Inc., was selected as the firm to construct the Airport Traffic Control Tower. Staff conducted contract negotiations with Knutson to reach the contractual agreements identified below. These agreements have been reviewed by the city attorney.
• AIA Document A133™–2019, is a Standard Form of Agreement between the Owner and Construction Manager as Constructor where the basis of payment is the Cost of Work Plus a Fee with a Guaranteed Maximum Price (GMP) and complies with Airport Construction Standard (AC 150/5370-10H).
• AIA Document A201™–2017 the general conditions are an integral part of the contract for construction for a large project, and they are incorporated by reference into the owner/contractor agreement. They set forth the rights, responsibilities, and relationships of the owner, contractor, and architect. Though not a party to the contract for construction between owner and contractor, the architect participates in the preparation of the contract documents and performs construction duties and responsibilities described in detail in the general conditions.
These agreements lay the foundation for the next steps to take place.
1. FAA provides a funding announcement identifying the amount of federal funds available for the Airport Traffic Control Tower. This announcement is anticipated in mid-May.
2. Knutson Construction selects from the bid packages provided by subcontractors in the open bidding process set to begin on June 1, 2026. Knutson Construction provides the Guaranteed Maximum Price (GMP) for the project on or around July 1, 2026.
3. Council will act upon the GMP, and if acceptable, amend the GMP into agreement A133-2019 as Exhibit A.
Preconstruction service costs will be covered by approximately $37,000 in contingency funds included in the Design and Engineering Agreement with EXP because the proposal was developed using the traditional design-bid-build method. All preconstruction costs are grant eligible and will be included in the request for construction funding.
A municipality shall conduct contract negotiations with the highest ranked proposer to reach an agreement on the cost and terms of the contract. If an agreement cannot be reached with the highest ranked proposer, the municipality may begin negotiations with the next highest ranked proposer. The negotiation process continues until an agreement is reached with a proposer or the municipality rejects all proposals.
As Council recalls in February, Knutson Construction Services Mankato, Inc., was selected as the firm to construct the Airport Traffic Control Tower. Staff conducted contract negotiations with Knutson to reach the contractual agreements identified below. These agreements have been reviewed by the city attorney.
• AIA Document A133™–2019, is a Standard Form of Agreement between the Owner and Construction Manager as Constructor where the basis of payment is the Cost of Work Plus a Fee with a Guaranteed Maximum Price (GMP) and complies with Airport Construction Standard (AC 150/5370-10H).
• AIA Document A201™–2017 the general conditions are an integral part of the contract for construction for a large project, and they are incorporated by reference into the owner/contractor agreement. They set forth the rights, responsibilities, and relationships of the owner, contractor, and architect. Though not a party to the contract for construction between owner and contractor, the architect participates in the preparation of the contract documents and performs construction duties and responsibilities described in detail in the general conditions.
These agreements lay the foundation for the next steps to take place.
1. FAA provides a funding announcement identifying the amount of federal funds available for the Airport Traffic Control Tower. This announcement is anticipated in mid-May.
2. Knutson Construction selects from the bid packages provided by subcontractors in the open bidding process set to begin on June 1, 2026. Knutson Construction provides the Guaranteed Maximum Price (GMP) for the project on or around July 1, 2026.
3. Council will act upon the GMP, and if acceptable, amend the GMP into agreement A133-2019 as Exhibit A.
Preconstruction service costs will be covered by approximately $37,000 in contingency funds included in the Design and Engineering Agreement with EXP because the proposal was developed using the traditional design-bid-build method. All preconstruction costs are grant eligible and will be included in the request for construction funding.