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Home My WebLink About05(B) - Receive Bids and Award a Contract for the North Water Tower Rehabilitation (2026-06) Report ITEM: 5B CITY COUNCIL AGENDA REPORT MEETING DATE: January 27, 2026 PREPARED BY: Christine Watson, Public Works Supervisor – Administration Phil Ryan, Public Works Supervisor – Utilities PRESENTED BY: Nick Monserud, Public Works Director/City Engineer AGENDA ITEM: Resolution to Receive Bids and Award a Contract for the North Water Tower Rehabilitation (2026-06) RECOMMENDED ACTION: Adopt a resolution to receive bids and award a contract for the north water tower rehabilitation (2026-06). BACKGROUND: The City operates seven wells, two elevated water tanks, and one water treatment facility to provide potable water to residents and businesses. The north water tower was originally built in 1988 and was last reconditioned in 2003. The city has a work order with KLM Engineering, Inc. (KLM) for the engineering, design and construction administration for this project. Bids were opened Wednesday, January 14 at 10 a.m. Seven bids were received, ranging from $1,163,750 to $2,279,500 as shown below: Base Bid + Add. Add. Bidders Base Bid Alternate 1 Alternate 1 O&J Coatings Inc. ** $1,143,750 $20,000 $1,163,750 JR Stelzer Co. $1,228,145 $14,500 $1,242,645 Tanksco, Inc. $1,219,000 $25,000 $1,244,000 G&L Tank Sandblasting and Coatings LLC $1,300,000 $40,000 $1,340,000 Viking Industrial Painting $1,564,550 $117,700 $1,682,250 Classic Protective Coatings, Inc. $1,792,300 $30,100 $1,822,400 TMI Coatings, Inc. $2,245,500 $34,000 $2,279,500 **Failed to provide a significant portion of Bidder’s Qualifications Statement KLM has reviewed the bids and provided the attached summary and recommendation letter. As noted in the letter, the lowest bidder failed to complete a significant portion of the required Bidder’s Qualification Statement. Therefore, KLM recommends awarding the contract to the second-lowest bidder, JR Stelzer Co, an experienced and reputable tower painting contractor in this region. Staff agrees with this recommendation to award the contract to JR Stelzer Co in the amount of $1,242,645. The tower will be painted similar to the south tower, with a gold wave matching the city logo and a darker blue color on the bottom of the tank and the base. The darker blue color helps hide the mold and dirt that form on the under-side of the tank due to condensation in warmer weather. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 5B Page | 2 FINANCIAL IMPACT: The Water Utility Fund includes $1,745,000 for this project in 2026. ALTERNATIVES: 1. Motion and second as part of the consent agenda to adopt a resolution receiving the bids and awarding a contract to JR Stelzer Co for the north water tower rehabilitation (2026-06). 2. Motion and second to remove this item from the consent agenda for additional discussion. ATTACHMENTS: 1. Resolution 2. Recommendation letter 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26- A RESOLUTION RECEIVING BIDS AND AWARDING A CONTRACT FOR THE NORTH WATER TOWER REHABILITATION (2026-06) Motion By: Second By: WHEREAS, the north water tower was constructed in 1988 and last reconditioned in 2003; and WHEREAS, certain maintenance and repairs are necessary to ensure proper functioning and extend the useful life of the tower; and WHEREAS, the following bids were received on Wednesday, January 14: Base Bid + Add Add. Bidders Base Bid Alternate 1 Alternate 1 O&J Coatings Inc. $1,143,750 $20,000 $1,163,750 JR Stelzer Co. $1,228,145 $14,500 $1,242,645 Tanksco, Inc. $1,219,000 $25,000 $1,244,000 G&L Tank Sandblasting and $1,300,000 $40,000 $1,340,000 Coatings LLC Viking Industrial Painting $1,564,550 $117,700 $1,682,250 Classic Protective Coatings, Inc. $1,792,300 $30,100 $1,822,400 TMI Coatings, Inc. $2,245,500 $34,000 $2,279,500 and WHEREAS, the lowest bidder failed to complete a significant portion of the required Bidder’s Qualification Statement and is therefore not recommended for the project; and WHEREAS, the second-lowest bidder, JR Stelzer Co is an experienced and reputable tower painting contractor in this region; and WHEREAS, the city’s consultant for this project, KLM Engineering, Inc. recommends awarding a contract in the amount of $1,242,645 to JR Stelzer Co. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Mayor and City Manager are authorized to execute a contract with JR Stelzer Co for an amount of $1,242,645. 3. The Water Utility Fund includes $1,745,000 for this project. th Passed and adopted by the Prior Lake City Council this 27 day of January, 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager C:\\Users\\hsimon\\AppData\\Local\\Temp\\Report Attachment - 20260127 Receive Bids Award Contract - North Tower Rec_675577\\Report Attachment - 20260127 Receive Bids Award Contract - North To.docx 2 Corporate Office 1976 Wooddale Drive, Suite 4 Woodbury, MN 55125 “Protecting America’s Water, One Tank at a Time.” January 15, 2026 Nick Monserud Public Works Director/City Engineer City of Prior Lake Maintenance Center 17073 Adelmann Street Prior Lake, MN 55372 RE: Bid evaluation for Cleaning, Repairing, & Painting the 1,000,000-Gallon Elevated Reservoir; North Tower. City Project No. 2026-06. KLM Project No. 1495-25. Mr. Monserud, The project bid opening was held on Wednesday, January 14, 2026, at 10:00 AM CST. Bids were submitted and opened publicly through QuestCDN’s online bidding platform. Bids received were as follows: Bidders Base Bid Add. Alternate #1 Base Bid + Add. Alternate #1 O&J Coatings Inc. $1,143,750.00 $20,000.00 $1,163,750.00 JR Stelzer Co. $1,228,145.00 $14,500.00 $1,242,645.00 Tanksco, Inc. $1,219,000.00 $25,000.00 $1,244,000.00 G&L Tank Sandblasting and Coatings LLC $1,300,000.00 $40,000.00 $1,340,000.00 Viking Industrial Painting $1,564,550.00 $117,700.00 $1,682,250.00 Classic Protective Coatings, Inc. $1,792,300.00 $30,100.00 $1,822,400.00 TMI Coatings, Inc. $2,245,500.00 $34,000.00 $2,279,500.00 Documentation provided by the bidders was reviewed according to the requirements of the Specifications and contractors ordered in the table above from lowest to highest price according to the Public Works Department’s preference to award both the Base Bid and Add. Alternate #1 (concrete floor in tower base) as a single package. The low bidder, O&J Coatings Inc., did not include a significant portion of the Bidder’s Qualifications Statement required. Missing was their reference list of at least five similar sized, drinking water tower projects that involved complete interior and exterior coatings replacement, their entire project history record from at least the last two years, and a reference list of at least their three most recent projects that had an AMPP qualified inspector, such as KLM Engineering, supervising their work. The 2nd low bidder, J.R. Stelzer Company, provided all documents required and is considered the lowest priced, responsible bidder eligible for award of the Project. They have successfully met the standards and obligations of several large and complex reservoir rehabilitation projects with KLM Engineering in the last couple of years. They perform quality work, are very responsive and accommodating to changes encountered during projects, and follow specified schedules to bring the reservoirs back into service in a timely manner. BY EMAIL Corporate Office 1976 Wooddale Drive, Suite 4 Woodbury, MN 55125 “Protecting America’s Water, One Tank at a Time.” J.R. Stelzer Company has confirmed they are comfortable honoring their proposed amount above and expressed an understanding of the Project Requirements. Considering they were the lowest cost bidder to comply with the submittal requirements of the bidding process, have shown then meet or exceed the qualifications requirements and have a positive work history, KLM recommends awarding the contract to JR Stelzer Company for the total amount (Base Bid + Add. Alternate #1) of $1,242,645.00. Please feel free to contact me with any questions. Sincerely, KLM Engineering Inc. Benjamin Feldman, PE Manager of Engineering