Item 5.1 Cold Storage Facility
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty April 14, 2025
PRESENTER(s) REVIEWED BY: ITEM #:
Administration 5.1 – Cold Storage Facility
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative communication.
X Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending the City Council adopt a resolution accepting bids and awarding contracts; and to approve
a contract amendment.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
Yes No
BACKGROUND/JUSTIFICATION:
In February 2025 the City Council ordered an Advertisement for Bids for the Otsego Cold Storage Facility Project. Bids
were opened on March 27, 2025, with a total of 29 bids received covering six defined work scopes.
Kraus-Anderson has completed the post-bid review process and has outlined their recommendation in the attached
memorandum which includes the lowest responsible bidders and their bid amount for each work scope. During the
post-bid review, there was one bid that was formally withdrawn as noted in the attached letter of withdrawal.
The attached Project Cost Summary has been updated to reflect the bid day results for a total cost of $1,407,474. This
cost is inclusive of construction costs and contingencies, as well as soft costs such as architectural fees, construction
management services, insurance, permits, and other professional services. The Capital Improvement Plan (CIP)
includes funding in the amount of $2,179,885 for construction of the Cold Storage Facility and related projects.
The related projects include door access systems, security cameras, and additional fencing and gates to better secure
the existing public works campus. These projects are outside the scope of the facility construction bidding process and
would be quoted separately and presented to the City Council for consideration at a future date.
In October 2024 the City Council approved a contract with Kraus-Anderson for preconstruction services. With the
project, pending City Council approval, would enter the construction phase, necessitating an Amendment of the
contract to reflect the known project costs. The Amendment has been reviewed by City Attorney Kendall with a
recommendation for consideration of approval by the City Council.
The project would be anticipated to initiate construction in July 2025 and be completed before the winter.
Representation from K/A will be present for the meeting to further review the bid results and answer any additional
questions from the City Council.
SUPPORTING DOCUMENTS ATTACHED:
• Memorandum: K/A
• Letter of Bid Withdrawal (Work Scope 31-A)
• Project Cost Summary
• Resolution 2025-16
• Contract Amendment
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2025-16 Accepting Bids and Awarding Contracts for the Otsego Cold Storage Facility
Project; and to authorize the City Attorney and Kraus-Anderson to prepare the AIA A132-2019 contracts; and to
authorize the Mayor and City Clerk to execute the finalized agreements.
Motion to approve Contract Amendment No. 1 to the AIA C132-2019 Construction Manager Agreement between the
City of Otsego and Kraus-Anderson Construction Company.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 414 – Revolving Capital Improvements
Yes
Kraus-Anderson Construction Company
501 South Eighth Street, Minneapolis, MN 55404
Office 612-332-7281 | www.krausanderson.com | Fax 612-332-0217
Building enduring relationships and strong communities
April 14, 2025
City of Otsego
13400 90th Street NE
Otsego, MN 55330
RE: City of Otsego – Public Works New Cold Storage
Dear Mr. Flaherty,
This letter is concerning the contract awards for the City of Otsego – New Public Works Cold
Storage project that was bid on March 27, 2025. Kraus-Anderson has verified bidders and we
submit the following lowest responsible bidders and their bid amount.
Work Scope Contractor, City, State Bid Amount
Work Scope 01-J Final
Cleaning
Prime Solutions, LLC
DBA Prime Construction Solutions
9393 Penn Avenue South
Bloomington, MN 55431
BASE BID
ALTERNATE 001
$4,500.00
$0.00
Work Scope 08-E Overhead
Sectional
Doors
Yale Mechanical, LLC
220 West 81st Street
Bloomington, MN 55420
BASE BID
ALTERNATE 001
$39,736.00
$0.00
Work Scope 13-G Post
Frames
Wood
Building
Lester Buildings, LLC
1111 2nd Avenue South
Lester Prairie, MN 55354
BASE BID
ALTERNATE 001
$489,973.00
$0.00
Work Scope 23-B Combined
Mechanical
St. Cloud Refrigeration, Inc.
DBA SCR, Inc.
604 Lincoln Avenue NE
St. Cloud, MN 56304
BASE BID
ALTERNATE 001
$79,570.00
$0.00
Work Scope 26-A Electrical Electrical Production Services, Inc.
4201 Norex Drive
Chaska, MN 55318
BASE BID
ALTERNATE 001
$106,698.00
$0.00
Work Scope 31-A Site
Clearing &
Earthwork
Rachel Contracting, LLC
4180 Napier Court NE
St. Michael, MN 55376
BASE BID
ALTERNATE 001
$271,500.00
$35,000.00
Total: $1,026,977.00
We have enclosed the Bid Tabulation sheets that reflect the bids received.
If you have any questions regarding this information, please do not hesitate to contact me at
763-401-2465.
Very truly yours,
KRAUS-ANDERSON® CONSTRUCTION COMPANY
Ben Albrecht
Project Manager
Cc: Mike Phillips – Kraus Anderson Construction
Ben Albrecht – Kraus Anderson Construction
Jonathan Loose – Wold Architects & Engineers
Jake Wollensak – Wold Architects & Engineers
OTSEGO NEW PUBLIC WORKS BID TABULATIONS
COLD STORAGE 03/27/25 - 2pm
OWNER: City of Otsego
ARCHITECT: Wold Architects & Engineers WORK SCOPE 01-J - FINAL CLEANING
BIDDER BIDDER BIDDER BIDDER BIDDER BIDDER
PRIME SOLUTIONS, LLC
HIGH PERFORMANCE
COATINGS, INC NICE CLEAN CO
BID SECURITY X X X
ADDENDA REC'D.1-3 1-3 1-3
BASE BID $4,500.00 $6,500.00 $15,390.00
COMBINED BASE BID
ALTERNATE 001 -
EXTERIOR CONCRETE
PAVEMENT AT
OVERHANG
OTSEGO NEW PUBLIC WORKS BID TABULATIONS
COLD STORAGE 03/27/25 - 2pm
OWNER: City of Otsego
ARCHITECT: Wold Architects & Engineers WORK SCOPE 08-E - OVERHEAD SECTIONAL DOORS
BIDDER BIDDER BIDDER BIDDER BIDDER BIDDER
AKER DOORS
OVERHEAD DOOR CO.
OF THE NORTHLAND YALE MECHANICAL METRO GARAGE DOOR
BID SECURITY NO NO X X
ADDENDA REC'D.1-3 1-3 1-3 1-3
BASE BID $26,040.00 $31,985.00 $39,736.00 $46,590.00
COMBINED BASE BID
REJECTED REJECTED
ALTERNATE 001 -
EXTERIOR CONCRETE
PAVEMENT AT
OVERHANG
OTSEGO NEW PUBLIC WORKS BID TABULATIONS
COLD STORAGE 03/27/25 - 2pm
OWNER: City of Otsego
ARCHITECT: Wold Architects & Engineers WORK SCOPE 13-G - POST FRAMED WOOD BUILDING
BIDDER BIDDER BIDDER BIDDER BIDDER BIDDER
RAM BUILDINGS, INC LESTER BUILDINGS, LLC EBERT CONSTRUCTION
BCI CONSTRUCTION,
INC
BID SECURITY NO X X X
ADDENDA REC'D.NO 1-3 1-3 1-3
BASE BID $0.00 $489,973.00 $567,200.00 $989,000.00
COMBINED BASE BID
REJECTED
ALTERNATE 001 -
EXTERIOR CONCRETE
PAVEMENT AT
OVERHANG
OTSEGO NEW PUBLIC WORKS BID TABULATIONS
COLD STORAGE 03/27/25 - 2pm
OWNER: City of Otsego
ARCHITECT: Wold Architects & Engineers WORK SCOPE 23-B - COMBINED MECHANICAL
BIDDER BIDDER BIDDER BIDDER BIDDER BIDDER
ST CLOUD REFRIGERATION DBA SCR,
INC
SPRIGGS MECHANICAL,
INC MODERN PIPING, INC NORTHLAND MECHANICAL
CONTRACTORS YALE MECHANICAL
BID SECURITY X X X X X
ADDENDA REC'D.1-3 1-3 1-3 1-3 1-3
BASE BID $79,570.00 $80,985.00 $86,000.00 $93,300.00 $100,100.00
COMBINED BASE BID
ALTERNATE 001 -
EXTERIOR CONCRETE
PAVEMENT AT
OVERHANG
OTSEGO NEW PUBLIC WORKS BID TABULATIONS
COLD STORAGE 03/27/25 - 2pm
OWNER: City of Otsego
ARCHITECT: Wold Architects & Engineers WORK SCOPE 26-A - ELECTRICAL
BIDDER BIDDER BIDDER BIDDER BIDDER BIDDER
ELECTRICAL
PRODUCTION SERVICES
HUNT ELETRIC
CORPORATION NEO ELECTRIC ERICKSON ELECTRIC MEDINA ELECTRIC
BID SECURITY X X X X X
ADDENDA REC'D.1&2 1-3 1-3 1-3 1-3
BASE BID $106,698.00 $172,480.00 $172,500.00 $217,100.00 $219,750.00
COMBINED BASE BID
ALTERNATE 001 -
EXTERIOR CONCRETE
PAVEMENT AT
OVERHANG
OTSEGO NEW PUBLIC WORKS BID TABULATIONS
COLD STORAGE 03/27/25 - 2pm
OWNER: City of Otsego
ARCHITECT: Wold Architects & Engineers WORK SCOPE 31-A - SITE CLEARING & EARTHWORK
BIDDER BIDDER BIDDER BIDDER BIDDER BIDDER
JULIAN M JOHNSON
CONSTRUCTION CORP RACHEL CONTRACTING FEHN COMPANIES, INC
MINNESOTA UTILITIES &
EXCAVATING
NEW LOOK
CONTRACTING, INC
BELAIR SITEWORK
SERVICES
BID SECURITY X X X X X X
ADDENDA REC'D.1-3 1-3 1-3 1-3 1-3 1-3
BASE BID $95,906.00 $271,500.00 $299,598.00 $307,274.00 $309,750.00 $380,283.00
COMBINED BASE BID
ALTERNATE 001 -
EXTERIOR CONCRETE
PAVEMENTAT
OVERHANG $4,473.00 $35,000.00 $31,418.00 $33,000.00 $24,400.00 $45,040.00
OTSEGO NEW PUBLIC WORKS BID TABULATIONS
COLD STORAGE 03/27/25 - 2pm
OWNER: City of Otsego
ARCHITECT: Wold Architects & Engineers WORK SCOPE 31-A - SITE CLEARING & EARTHWORK
BIDDER BIDDER BIDDER BIDDER BIDDER BIDDER
URBAN COMPANIES,
LLC VEIT & COMPANY, INC
BID SECURITY X X
ADDENDA REC'D.1-3 1-3
BASE BID $399,000.00 $503,100.00
COMBINED BASE BID
ALTERNATE 001 -
EXTERIOR CONCRETE
PAVEMENTAT
OVERHANG $45,000.00 $42,500.00
_______________________________________________________________________
JULIAN M. JOHNSON CONSTRUCTION CORP.
(General Excavating and Fill Hauling)
6191 140TH AVENUE NW
RAMSEY, MN 55303-1021
Phone (763) 323-2900
Fax (763) 323-7579
WITHDRAW REQUEST
DATE: April 4, 2025
I am writing to formally request the withdrawal of our bid for the Otsego Public
Works Cold Storage project, submitted on 03/26/25 After careful consideration,
we have determined that it is in the best interest of our company to withdraw our
proposal as we can not meet the 31A requirements in their entirety.
JULIAN M. JOHNSON CONSTRUCTION
RYAN VANBERGEN
ESTIMATOR / PROJECT MANAGER
ryan@jmjccorp.com
PHONE (763)323-2900
FAX (763)323-7579
Otsego Cold Storage Building
City of Otsego
4/9/2025 Otsego Cold Storage Building
Description Bid Day Update Current Overall Budget
Update Date 03/27/25 03/27/25 Place Date in Update Column, Column K will autofill
PROJECT REVENUE / FUNDING X DO NOT MODIFY Mark w/ "X" to specify which update carries forward
TOTAL PROJECT REVENUE $0 $0
Project Revenue Proportions #DIV/0! #DIV/0! Estimate Update / Current Overall Budget
PROJECT AREA BREAKDOWN
New Construction GSF 11,111 11,111 Post-Framed Building w/ Overhang
Total GSF 11,111 11,111
Site Area (Acres)0.56 0.56
CONSTRUCTION COSTS
Site Inc. in New Construction
New Construction $1,026,977 $1,026,977 Bid Day Inc. Alternate #1 - Exterior Concrete
Value Engineering / Outstanding Scopes of Work $0 N/A
Design Contingency $0 N/A
Total Bid Day $1,026,977 $1,026,977
Construction Contingency
Remaining Contingency $102,698 $102,698 10% of Total Bid Day
Pending Changer Orders $0 PCO Log Totals
Executed Change Orders $0 Executed Change Orders
General Conditions $50,000 $50,000
CONSTRUCTION COSTS SUB TOTAL $1,179,675 $1,179,675
Construction Cost / GSF $106 $106.17 Construction Costs Sub Total / Total GSF
Percent Construction Cost 84% 84% Construction Costs Sub Total / Total Project Cost
SOFT COSTS
Design/CM Fees and Reimbursable
A/E Fee $51,500 $51,500 J. Wollensak - 3.27.25
A/E Reimbursable Inc. in Fee $0 N/A
Other Consultant Fees $0 N/A
Construction Management Services & Fee $115,840 $115,840
Permits, Plan Reviews & Fees
Building Permit & Plan Review $10,200 $10,200 Barb, City of Otsego (4.8.25)
Plumbing Plan Review & Plumbing Permit $0 $0 Wold to Confirm - French Drain?
Dept. of Health (DOH) - Food Service Plan $0 $0 N/A
Dept. of Health (DOH) - Water Main $0 $0 N/A
City Project Review & Inspection Fee $0 $0 Inc. in the above Building Permit/Plan Review
State Surcharge $550 $550 Barb, City of Otsego (4.8.25)
Metropolitan Council SAC $0 $0 Met Council Calculator Founds Online
City of Otsego Sewer/Water Connection $0 $0 N/A
WREC / WAC $0 $0 N/A
SREC / SAC $0 $0 N/A
Trunk Utilities (Storm, Sanitary, Water)$0 $0 N/A
Park Dedication Fee $0 $0 N/A
City/County Road Special Assessment $0 $0 N/A
Sign Permits $0 $0 N/A
Utilities - Connections
Power $0 $0 N/A
Gas $0 $0 N/A
Fiber $0 $0 N/A - Ben Boyd (4.8.25)
Phone $0 $0 N/A - Ben Boyd (4.8.25)
Pre-Construction Surveys & Studies
Site Survey $0 $0 N/A
Geotechnical Survey - Soil Borings $0 $0 N/A
Environmental Study (EAW Ph1/Ph2)$0 $0 N/A
Wetland Delineation, Watershed, MPCA $0 $0 N/A
Traffic & Parking Study $0 $0 N/A
Hazardous Material Survey $0 $0 N/A
Testing & Inspections
Construction Surveying $5,000 $5,000 Budget
Construction Testing & Inspections $15,000 $15,000 Budget - Awaiting Proposal from Braun Intertec
HVAC - Testing & Balancing $0 $0 In Construction
HVAC - Commissioning $0 $0 N/A
Bidding, Legal, Finance & Misc.
Bid Advertisement, Printing, Plan Distribution $1,500 $1,500 Budget
Bond Issuance Fees $0 $0 N/A
Legal Fee Allowance $2,500 $2,500 Budget
Salary Chargeback $0 $0 N/A
Builders Risk Insurance $5,000 $5,000 Budget - To be provided by the City
Land Purchase $0 $0 N/A
Land Acquisition Expenses $0 $0 N/A
City Purchase Orders
Final Cleaning $0 $0 In Construction
Abatement $0 $0 N/A
Moving, Storage, Transition $0 $0 N/A
Signage $0 $0 N/A
Misc. Owner Expenditure $0 $0 N/A
Soft Cost Contingency $20,709 $20,709 10%
FF&E Expenses
Furniture Allowance/Costs $0 N/A
Specialty Equipment $0 N/A
Equipment Allowance $0 N/A
Technology Allowance $0 N/A
Furnishings / Consultant Fees $0 N/A
FFE Contingency $0 N/A
SOFT COSTS SUB-TOTAL $227,799 $227,799
Soft Costs / SF $21 $21
Percent Soft Costs 16% 16%
TOTAL PROJECT COSTS $1,407,474 $1,407,474 Constr. Cost + Soft Costs
Project Cost / GSF $127 $127 Total Project Cost / Total GSF
VARIANCE (OVER) / UNDER ($1,407,474)($1,407,474)Total Project Revenue / Total Project Costs
Otsego Cold Storage Building
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2025-16
ACCEPTING BIDS AND AWARDING CONTRACT
WHEREAS, pursuant to an advertisement for bids for the construction of the Otsego Cold Storage Facility Project, bids were
received, opened on March 27, 2025, and tabulated according to law, and the following lowest responsible bids were received
complying with the advertisement.
Work Scope Contractor Bid Amount
01-J: Final Cleaning Prime Solutions, LLC $4,500
08-E: Overhead Sectional Doors Yale Mechanical, LLC $39,736
13-G: Post Frame Wood Building Lester Buildings, LLC $489,973
23-B: Combined Mechanical St. Cloud Refrigeration, Inc. $79,570
26-A: Electrical Electrical Production Services, Inc. $106,698
31-A: Site Clearing & Earthwork Rachel Contracting, LLC $306,500 (Includes Alternate 001)
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. The Mayor and City Clerk are hereby authorized and directed to enter into a contract with each respective contractor
in the table above, in the name of the City of Otsego for the Otsego Cold Storage Facility Project, according to the
plans and specifications therefore approved by the City Council and on file in the office of the City Clerk.
2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the bid bond made with their bids,
except that the bid bond of the successful bidder and the next lowest bidder shall be retained until a contract has
been signed.
2
ADOPTED by the Otsego City Council this 14th day of April, 2025.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk
CONTRACT AMENDMENT NO. 1 TO
CONSTRUCTION MANAGER AGREEMENT
THIS AMENDMENT TO CONSTRUCTION MANAGER AGREEMENT is made this
14th day of April, 2025 by City of Otsego ("Owner") and Kraus-Anderson Construction
Company ("Construction Manager").
WITNESSETH THAT WHEREAS:
A. Owner and Construction Manager are parties to that certain AIA C132 – 2019
Standard Form of Agreement Between Owner and Construction Manager as Adviser dated
September 23rd, 2024 (the “Contract”) with respect to construction management on the Otsego
Cold Storage Building (the “Project”) for the Owner.
B. Owner and Construction Manager now desire to amend the Contract.
NOW, THEREFORE, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereby amend the Contract and agree as follows.
1. Section 1.1.4.2 and 1.1.4.3 of the Contract shall be amended to state the following:
Construction Commencement Date:
REPLACE:
Anticipated Spring 2025
WITH:
Anticipated July 2025.
Substantial Completion Date:
REPLACE:
TBD
WITH:
Anticipated 3 months from the date of construction commencement.
2. Section 11.1.2 of the Contract shall be amended to state the following:
REPLACE:
The Construction Manager shall be paid (i) a fee of 2.0% of the Cost of the Work defined
in Article 6, (ii) the Construction Manager’s costs for administrating and managing the
Project at the hourly rates set forth in Section 11.5.1, (iii) the costs of Construction
Manager’s field labor for general conditions work at the hourly rates set forth in section
1.5.2, and (iv) any Reimbursable Expenses. Once the Project has been sufficiently
defined after the Preconstruction Phase, the Owner and Construction Manager shall
execute an Amendment setting forth the Construction Manager’s compensation for the
Construction Phase of the Project as described herein. Any Construction Phase services
performed prior to execution of the Amendment shall be billed at the hourly rates set
forth in Sections 11.5.1 and 11.5.2, plus Reimbursable Expenses.
WITH:
The Construction Manager shall be paid (i) a lump sum fixed fee of $22,408.00, (ii) a
stipulated sum of $78,432.00 for administering and managing the Project, (iii) the costs
of Construction Manager’s field labor for general conditions work at the hourly rates set
forth in section 11.5.2, and (iv) any Reimbursable Expenses.
For the Construction Manager’s costs for administrating and managing the Project
referenced in Section 11.1.2(ii), the stipulated sum assumes a Three (3) month schedule
for the Construction Phase. Should the Construction Phase extend beyond Three (3)
months, the Construction Manager is entitled to charge additional amounts at the hourly
rates set forth above not to exceed the following: (i) $6,030.00 per each additional week,
or (iii) $26,144.00 per each additional month
3. This Amendment may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed an original and all of which counterparts, taken
together, shall constitute one and the same instrument. Delivery of an executed counterpart
of a signature page of this document by email or other generally accepted electronic means
shall be effective as delivery of a manually executed counterpart of this document.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 to
Construction Manager Agreement as of the date first set forth above. The undersigned further
acknowledges that he or she is authorized to enter into this Amendment on behalf of the party
designated below.
City of Otsego: Kraus-Anderson Construction
Company:
RECOMMENDED:
By: ________________________ By: ________________________
Jessica Stockamp
Its: Mayor Its: ________________________
Date: ________________ Date: ________________