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Award contract for the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades ProjectCity of Dubuque City Council ACTION ITEMS # 1. Copyrighted November 3, 2025 ITEM TITLE: Award contract for the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades Project SUMMARY: City Manager recommending City Council award of the construction contract for the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades project to The ESCO Group, of Marion, Iowa in the amount of $2,360,000.00. RESOLUTION Awarding contract for the 2025 Water & Resource Recovery Center MCC Communication and PLC Upgrades Project SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Staff Memo, Award Contract, WRRC Industrial Controls Project, 10-29-2025 3. Proceedings — Minutes, Resolution, Attestation Certificate 4. BID TAB, 2025 Water & Resource Recovery Center MCC Communications 5. Engineering Firm's Letter of Recommendation -Uploaded 11.3.25 Page 497 of 525 Dubuque THE CITY OF uFA�a9a av DuBE 13 Masterpiece on the Mississippi zoo�•*o rP PP 2017202019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Award contract for the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades Project [Project No: 4381500017] DATE: October 29, 2025 Water & Resource Recovery Center Director Deron Muehring is recommending City Council award of the construction contract for the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades project to The ESCO Group, of Marion, Iowa in the amount of $2,360,000.00. I concur with the recommendation and respectfully request Mayor and City Council approval. 1�,A� k�4 S4-zn" Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Deron Muehring, Water & Resource Recovery Center Director Page 498 of 525 THE CAII•Ameft Dubuque DUUB__*.__TE_E City vax tii�rune Masterpiece on the Mississippi pp 2013 2°017* 2 019 zoi�*zoi9 TO: Michael C. Van Milligen, City Manager FROM: Deron Muehring, Water & resource Recovery Center Director SUBJECT: Award contract for the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades Project [Project No: 4381500017] DATE: October 29, 2025 INTRODUCTION The purpose of this memorandum is to request award of the construction contract for the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades project (Project) to The ESCO Group, of Marion, Iowa in the amount of $2,360,000.00. BACKGROUND The Water & Resource Recovery Center (WRRC) is a critical part of Dubuque's public infrastructure, providing wastewater treatment services for residential, commercial, and industrial users throughout the region. The facility underwent a major upgrade in 2013, which included the installation of automated control systems that act as the `brains' of the WRRC across multiple buildings, telling treatment equipment when to turn on, off, or adjust, while also monitoring overall performance. Following the COVID-19 pandemic, the WRRC's control equipment began to face unexpected challenges. Global supply chain disruptions caused manufacturers to shift their limited resources away from supporting older equipment models into their new product lines. As a result, many electrical components that would typically remain supported for 20 years or more were prematurely discontinued. This has made it increasingly difficult, and in some cases impossible, to find replacement parts for key control systems. To address this issue, a multi -phase capital improvement project was developed to modernize the WRRC's control systems. Funding for the Industrial Controls Upgrade project [4381500017] was approved by the City Council as part of the Fiscal Year 2025 budget. The total project cost was originally estimated to be $3 million and was to be funded over three years through a combination of Sanitary Sewer Construction Funds and State Revolving Fund loans. The Industrial Controls Upgrade project will be implemented in multiple phases to ensure continuity of operations and minimize disruption to critical treatment processes. Each phase will target a subset of buildings, allowing for a controlled transition to modern control infrastructure while maintaining full facility functionality. Page 499 of 525 Phase I, the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades (Project), will focus on Building 10 (Headworks) and Building 75 (Solids Handling). These buildings were prioritized due to the complexity of their control systems, and the critical nature of their processes. Notably, Building 75 contains the largest number of electrical control components at the WRRC. Replacing this equipment early addresses a high -priority area and also creates an opportunity to salvage the functional legacy components which can be used in the event of electrical control failure in other buildings before their scheduled upgrades. The explosion that occurred in Building 75 in early December 2024, caused significant damage to a portion of the Building 75 motor control center (MCC) which houses the building's electrical control systems. Following the December 2024 explosion, the City worked with engineering consultant Strand Associates to assess the full extent of the damage and determine how it would affect the broader electrical and process systems in the building. One of the modifications that came about was to shift the Building 75 MCC eastward into the former operator control room which was damaged by the explosion. The December 2024 event is a covered cause of loss under the City's insurance policy. The total cost of the loss is currently estimated at between $3 million and $4 million. Of that amount, approximately $966,000 is associated with the cost to replace the damaged portion of the electrical controls in Building 75. The work to replace the damaged electrical controls in the Building 75 MCC will be accomplished as part of the 2025 WRRC MCC Communications and PLC Upgrades Project. These expenses are to be funded through insurance proceeds, which are to be reflected in the Fiscal Year 2026 CIP Budget as part of Fiscal Year 2026 Budget Amendment. In September 2025, the City Council adopted Resolution 303-25, authorizing the public bidding process and setting a public hearing on the plans, specifications, form of contract, and estimated cost for the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades project. In October of 2025, the City Council held a public hearing on the Project, adopting Resolution 326-25 approving the plans, specifications, form of contract and estimate of cost for the Project. DISCUSSION Sealed bids for the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades project were received and publicly opened on October 23, 2025. The ESCO Group of Marion, Iowa submitted the apparent low bid in the amount of $2,360,000.00. A summary of the bid proposals received is as follows: Contractor Name Lump Sum Bid Amount The ESCO Group $2,360,000.00 Portzen Construction, Inc. $3,032,920.00 Tri-CityElectric Company of Iowa $4,435,200.00 2 Page 500 of 525 The lump sum bid of $2,360,000.00 is 20% below the engineer's estimate of $2,950,000.00. The project construction work will span nearly two years from bid opening to final acceptance. After the contract award, the contractor will prepare and submit shop drawings for engineer review. Once approved, the contractor will order the electrical control equipment which has a long lead time. Delivery of the electrical control components is not expected until late 2026, with installation, testing, and commissioning continuing into mid-2027. The estimate of probable and awarded construction cost for the construction project are summarized as follows: Description Cost Estimate Award Engineering Design $110,000 $110,000 Construction Contract $2,950,000 $2,360,000 Contingency (5%) $147,500 $147,500 Administration and Construction Engineering $105,000 $105,000 Total Construction Cost $3,212,500 $2,722,500 RECOMMENDATION I recommend the City Council awarding the construction conduct for the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades project to The ESCO Group in the amount of $2,360,000.00. BUDGETIMPACT The funding plan for the Project is as follows: Project No. Fiscal Year Fund Description Fund Amount 4381500017 2025 Sanitary Sewer Fund $350,000 4381500017 2025 SRF Loan $750,000 4381500017 2027 Sanitary Sewer Fund $849,700 4381500019 2026 Insurance Proceeds $772,800 Total Project Funding $2,722,500 ACTION TO BE TAKEN I respectfully request that the City Council award the construction contract the 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades project to The ESCO Group in the amount of $2,360,000.00. cc: Crenna Brumwell, City Attorney Jenny Larson, Chief Financial Officer Tony Brietbach, Purchasing and Risk Manager Willie O'Brien, WRRC Plant Manager 3 Page 501 of 525 DO R S EY DORSEY+WHITNEY LLP October 27, 2025 VIA EMAIL Jenny Larson Chief Financial Officer Dubuque, Iowa Re: 2025 Water & Resource Recovery Center MCC Communication and PLC Upgrades Project Our File No. 430411-22 Dear Jenny: We have prepared and attach proceedings related to the consideration of bids and award of a construction contract for the 2025 Water & Resource Recovery Center MCC Communication and PLC Upgrades Project. The materials attached include the following items: 1. Minutes of the November 3, 2025, City Council meeting reflecting consideration of the construction bids received for the Project, followed by the resolution awarding the contract and fixing the amount of the performance and/or payment bonds. This resolution also authorizes the execution of the contract, subject to the receipt of the performance and payment bonds and a written determination by the Project Engineers that such bonds and other contract documents are satisfactory. 2. Attestation Certificate with respect to the validity of the transcript. As these proceedings are completed, please return one fully executed copy to our office. If you have any questions, please contact Emily Hammond or me. Best regards, David D. Grossklaus John P. Danos Attachments cc: Deron Muehring Crenna Brumwell Adrienne Breitfelder Strand Associates, Inc. 8oi Grand Avenue I Suite 4i00 I Des Moines, IA 150309-8002 IT 53-5.283.3-000 I dorsey.com Page 502 of 525 Dubuque; 430411-22 / Letting (Cons/Award) MINUTES OF MEETING TO FURTHER CONSIDER BIDS CONTRACT 430411-22(L) Dubuque, Iowa November 3, 2025 AND AWARD The City Council of the City of Dubuque, Iowa, met on November 3, 2025, at 6:30 p.m., at the Historic Federal Building, 350 W. 6th St, Second Floor Council Chambers, in the City, pursuant to posted notice. The Mayor presided and the roll was called showing the following members of the Council present and absent: Present: &vo^ (- vmaoh. CoLoc,l Mc(roe(3 Spro,,lK, l `4al Absent: • • Other Business- - MOTION TO APPROVE RESOLUTION Council Member To ✓1PS introduced the resolution next hereinafter set out, and moved that the said resolution be adopted; seconded by Council Member w4a) The Mayor announced that bids for the construction of the 2025 Water & Resource Recovery Center MCC Communication and PLC Upgrades Project had been received before 2:00 p.m., on October 23, 2025, in the office of the City Clerk, City Hall -First Floor, 50 West 131h St, Dubuque, Iowa, and that on the same day, at the same time, in the City Hall -Conference Room A, 50 West 13th St, in the City, such bids had been opened and read, and this was the time and place set for the consideration of such bids. Thereupon, the results of the bidding were reported, and Strand Associates, Inc. (the "Project Engineers") made their recommendations thereon to the City Council. The bids received for the construction of the 2025 Water & Resource Recovery Center MCC Communication and PLC Upgrades Project are as follows: Name and Address of Bidder Amount of Bid (List here or attach a sheet listing proposals received.) -1- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA CITY OF DUBUQUE BID DATE: October 23, 2025 BID TABULATION FOR: 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades Project ITEM Lump Sum Bid % OVER / UNDER (-) ESTIMATE $2,950,000.00 0.0% BIDDER The ESCO Group BID $2,360,000.00 -20.0% BIDDER Portzen Construction BID $3,032,920.00 2.8% BIDDER: Tri-City Electric Company of Iowa BID $4,435,200.00 50.3% Page 508 of 525 Dubuque / 430411-22 / Letting (Cons/Award) After due consideration thereof by the City Council, the Mayor put the question upon the motion and the roll being called, the following named Coounci�l Members voted: Ayes: Rcsn-,ck 1,�dkd, Frbcr, Sp,r6nK' (/LAVCOC\gi, R.-usscll J oncs Nays: Whereupon, the Mayor declared the said motion duly carried and the said resolution duly adopted. -2- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque / 430411-22 / Letting (Cons/Award) RESOLUTION NO. 360-25 Resolution awarding contract for the 2025 Water & Resource Recovery Center MCC Communication and PLC Upgrades Project WHEREAS, pursuant to notice duly posted in the manner and form prescribed by resolution of the City Council of the City of Dubuque, Iowa, and as required by law, bids and proposals were received by this Council for the 2025 Water & Resource Recovery Center MCC Communication and PLC Upgrades Project (the "Project"); and WHEREAS, all of the said bids and proposals have been carefully considered, and it is necessary and advisable that provision be made for the award of the contract for the Project; NOW, THEREFORE, Be It Resolved by the City Council of the City of Dubuque, Iowa, as follows: Section 1. The bid for the Project submitted by the following contractor is fully responsive to the plans and specifications for the Project, is heretofore approved by the City Council, and is the lowest responsible bid received, such bid being as follows: Name and Address of Contractor Amount of Bid The ESCO Group $ 2,360,000.00 3450 Third Street Marion, IA 52302 Section 2. The contract for the Project is hereby awarded to such contractor at the total estimated cost set out above, the final settlement to be made on the basis of the unit prices therein set out and the actual final quantities of each class of materials furnished, the said contract to be subject to the terms of the aforementioned resolution, the notice of hearing and letting, the plans and specifications and the terms of the bidder's written proposal. Section 3. The Mayor and City Clerk are hereby authorized and ordered to enter into a written contract with said contractor for the Project, but only after the contractor submits the performance and/or payment bonds which are required by the contract documents, and after the Project Engineers submit a written determination that such surety bonds and the other contract documents are satisfactory. No additional City Council action shall be required to approve the executed contract or surety bonds. Section 4. The amount of the contractor's performance and/or payment bonds is hereby fixed and determined to be 100% of the amount of the contract. -3- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque / 43041 1-22 / Letting (Cons/Award) Section 5. All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved November 3, 2025. ayor Attest: City Clerk • • Other Business- - On motion and vote, the meeting adjourned. Ma or Attest: 0'54�a�'- &)�i4 City Clerk v -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque / 430411-22 / Letting (Cons/Award) ATTESTATION CERTIFICATE: STATE OF IOWA DUBUQUE COUNTY SS: CITY OF DUBUQUE I, the undersigned, City Clerk of the City of Dubuque, Iowa, hereby certify that the attached is a true, correct and complete transcript of the proceedings had and action taken by the City Council up to the present time in connection with the 2025 Water & Resource Recovery Center MCC Communication and PLC Upgrades Project, including a true, correct and complete copy of the resolution referred to in such minutes. WITNESS MY HAND this day of N00.4e-r 32025. City Clerk -5- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA 6 : A mil STRAND ASSOCIATES® Excellence in Engineeringsm Strand Associates, Inc.® 910 West Wingra Drive Madison, WI 53715 (P) 608.251.4843 www.strand.com November 3, 2025 Mr. Deron Muehring City of Dubuque Water and Resource Recovery Center 795 Julien Dubuque Drive Dubuque, IA 52003 Re: 2025 Water and Resource Recover Center MCC Communication and PLC Upgrades Project IDNR SRF File CS192117101 DNR Project #2025-0150A City of Dubuque, Iowa Dear Mr. Muehring: Bids for the above -referenced Project were opened on October 23, 2025. Three Bids were received with the resulting Bid tabulation enclosed. The low Bid of $2,360,000 was less than ENGINEER's opinion of probable construction cost. The ESCO Group of Marion, Iowa, was the apparent low Bidder at $2,360,000. The Bid included a Bid Bond for 10 percent and Addendum Nos. 1 and 2 were acknowledged. The Bid is deemed to be responsive. Strand Associates, Inc.' has previously worked with The ESCO Group on projects for the City of Cedar Rapids, Iowa. For those projects, the owner determined The ESCO Group to be responsible. If you determine that The ESCO Group is a responsible Bidder after your evaluation of their qualifications, we recommend proceeding with award of the Contract in accordance with Article 19 of the Instructions to Bidders. Sincerely, STRAND ASSOCIATES, INC.® Ob�sl David D. Gohdes Enclosure 1154.124\DDG:led\\stmnd.com\dlcorpdata\MAD\Documents\Specifications\Archive\2025\Dubugoe, City of(IA)\I154.124.CS192117101.DDG\(16) Specification Letters\(a) Resulting Bid Tabulation\110325.do Arizona I Illinois I Indiana I Iowa I Kentucky I Ohio I Tennessee I Texas I Wisconsin Page 509 of 525 CITY OF DUBUQUE BID DATE: October 23, 2025 BID TABULATION FOR: 2025 Water & Resource Recovery Center MCC Communications and PLC Upgrades Project ITEM Lump Sum Bid % OVER / UNDER (-) ESTIMATE $2,950,000.00 0.0% BIDDER The ESCO Group BID $2,360,000.00 -20.0% BIDDER Portzen Construction BID $3,032,920.00 2.8% BIDDER: Tri-City Electric Company of Iowa BID $4,435,200.00 50.3% Page 510 of 525 December 23, 2025 Iowa Finance Authority 1963 Bell Avenue, Suite 200 Des Moines, Iowa 50315 DORSEY DORSEY+WHITNEY LLP Iowa Department of Natural Resources 6200 Park Ave Ste 200 Des Moines, Iowa 50321 RE: 2025 Water & Resource Recovery Center MCC Communication and PLC Upgrades Project City of Dubuque, Iowa Our File No. 430411-22 To Whom It May Concern: We have reviewed certified copies of acts and proceedings (the "Proceedings") taken by the City Council (the "Council") of the City of Dubuque, Iowa (the "Participant") in relation to the letting of the construction contract identified on Exhibit A (the "Contract") for the Participant's 2025 Water & Resource Recovery Center MCC Communication and PLC Upgrades Project and described more fully in the Proceedings (collectively the "Project") to be financed by the Iowa State Revolving Fund Loan Program (the "Program"). Based on our review of the Proceedings, it is our opinion that: 1. The Participant is a municipal corporation established under the laws of the State of Iowa. The Contract has been duly authorized, executed and delivered by the Participant and, assuming due authorization and execution by the other parties thereto, constitutes a valid, legal and binding obligation of the Participant in accordance with its terms. 2. The Proceedings and Contract are in compliance with Chapters 26 and 573 (as applicable) of the Code of Iowa, as amended. 3. There is no action, suit or proceeding (at law or in equity) pending before or by any court, public board or body, or, to the best of our knowledge and information, threatened against or affecting the Participant, challenging the validity of the Contract, seeking to enjoin any of the transactions contemplated thereby or the performance by the Participant of any of its obligations thereunder, or wherein an unfavorable decision, finding or ruling would adversely affect the transactions contemplated by the Contract. DORSEY & WHITNEY LLP cc: City of Dubuque, Iowa 8oi Grand Avenue I Suite 4100 1 Des Moines, IA 15o3og-8002 I T 515.283.10001 dorsey.conn EXHIBIT A CONTRACT LIST Contractor The ESCO Group Marion, IA Amount $2,360,000.00