HomeMy WebLinkAbout#11 - Water Tower 1 Demolition Contract
STAFF REPORT
DATE: August 6, 2025
REGULAR
TO: City Council
FROM: Chad Isakson, Project Engineer
AGENDA ITEM: Accept Quotes and Award Contract for the Demolition of Water Tower
No. 1
REVIEWED BY: Nicole Miller, City Administrator
Clarissa Hadler, Finance Director
Marty Powers, Public Works Director
Nate Stanley, City Engineer
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services
☐ Responsive, transparent, adaptive governance ☐ Balanced Finances now and future
☐ Managed Growth ☒ Resilient Infrastructure
BACKGROUND: The 2025 Capital Improvement Plan includes the demolition of Water Tower No. 1 as
the facility has reached the end of its useful life and has been offline for several years. The existing 75,000-
gallon tank is in the Old Village Area off Langly Court just south of the railroad tracks.
Staff worked with SEH to prepare a quote package to removal the tower and restore the site once the work
is complete.
ISSUE BEFORE COUNCIL: Should the City Council accept quotes and award a contract for the
demolition of Water Tower No. 1?
PROPOSAL DETAILS/ANALYSIS: The size and elevation of Water Tower No. 1 does not support Lake
Elmo’s ultimate water distribution system needs to support the comprehensive plan. The tower was taken
offline as a part of the Old Village Phase 5 and 6 Improvements (2021) project. All telecommunication
companies have removed their equipment from the water tower, and it is ready to be taken down.
A quote package was prepared and distributed to three reputable companies that complete this type of work.
One quote was received from Iseler Demolition, Inc. in the amount of $100,700.00. One other company
was responsive but ultimately decided not to quote the project while the other didn’t respond to requests.
The quote received is inline with other recently quoted water tower demolitions of similar nature and close
to the engineer’s estimate.
The scope of work includes removal of the water tower and foundation (to a depth of 3 feet below the
surface) and restoration of the site. Work would be completed in 2025.
FISCAL IMPACT: The total estimated project cost is $150,000 versus the CIP estimate of $50,000. Site
conditions including overhead power and telecommunication poles on the same property which increases
constructability efforts. The project is funded by the Water Enterprise Fund.
RECOMMENDATION: Staff is recommending the City Council accept quotes and award a contract to
Iseler Demolition, Inc. in the amount of $100,700. The Recommended motion is as follows:
Motion to approve accept quotes and award a contract to Iseler Demolition, Inc. in the amount of
$100,700 for the Demolition of Water Tower No. 1.
ATTACHMENTS:
1. Location Plan
2. Engineer’s Letter of Recommendation
Engineers | Architects | Planners | Scientists
Short Elliott Hendrickson Inc., 3535 Vadnais Center Drive, St. Paul, MN 55110-3507
651.490.2000 | 800.325.2055 | 888.908.8166 fax | sehinc.com
SEH is 100% employee-owned | Affirmative Action–Equal Opportunity Employer
July 30, 2025 RE: Lake Elmo, MN
Water Tower No. 1 Demolition
SEH No. LAKMO 185045
Marty Powers
City of Lake Elmo
3880 Laverne Avenue North
Lake Elmo, MN 55042
Dear Mr. Powers:
On July 24, 2025 at 2:00 p.m., one Quote was received for the above-referenced project. The quote
received was submitted by Iseler Demolition, Inc., of Kinde, MI, in the amount of $100,700.
Contractor Total Bid
Iseler Demolition, Inc. $100,700.00
In reliance on our experience with Iseler Demolition, Inc., and/or materials and information provided by
the contractor, we have determined that 1) they have a sufficient understanding of the project and
equipment to perform the construction for which it bid; and 2) according to their bonding agent they
presently have the financial ability to complete the project bid. SEH makes no representation or warranty
as to the actual financial viability of the contractor or its ability to complete its work.
Accordingly, we recommend the project be awarded to Iseler Demolition, Inc. in the amount of $100,700,
which is in line with expected demolition and site restoration costs.
Sincerely,
Chad Katzenberger, PE
Project Manager
dmk
Attachment
c: Chad Isackson, PE
x:\ko\l\lakmo\185045\6-bid-const\quotes\recommendation of award letter.docx