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AGENDA RECOMMENDATION |
Consent Calendar 5.O.
City Council Regular Meeting
- Meeting Date:
- 06/08/2026
Agenda Item:
Resolution authorizing the execution of the Vetter Stone Amphitheater 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 March, Knutson Construction Services Mankato, Inc., was selected as the firm to construct the Vetter Stone Amphitheater stage house. 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).
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 construction contract 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.
Staff recommends authorizing the City Manager to enter into the Construction Manager at Risk contract with Knutson Construction for the construction of the Vetter Stone Amphitheater stage house.
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 March, Knutson Construction Services Mankato, Inc., was selected as the firm to construct the Vetter Stone Amphitheater stage house. 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).
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 construction contract 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.
- The architect will finalize the plans and specifications for the first bid package, which includes demolition and foundation work.
- The architect will finalize plans and specifications for the second bid package, which includes the steel structure, finishes and electrical.
- Knutson Construction selects from the bid packages provided by subcontractors in the open bidding process set to begin on June 15, 2026. Knutson Construction provides the Guaranteed Maximum Price (GMP) for the project on or around July 20, 2026.
Staff recommends authorizing the City Manager to enter into the Construction Manager at Risk contract with Knutson Construction for the construction of the Vetter Stone Amphitheater stage house.