The city's Capital Improvement Plan (CIP) contains the 2019 Street & Utility Reconstruction Project CIF-19-003. On March 5, 2019, the City Council adopted Resolution R2019-030 approving the plans and specifications, and authorizing bidding of the project.

In accordance with Minnesota Statute Section 471.347 Uniform Municipal Contracting Law, bids were solicited and opened on April 5, 2019. Six bids were received. During tabulation of the bids, it was discovered that Ryan Contracting Co. had a summation error on their bid proposal form. After staff review, it was confirmed that Ryan Contracting Co., from Elko, Minnesota, is the low bidder in the amount of $1,061,440.50 (see the attached resolution for the bid tabulation summary).

Ryan Contracting Co. Inc., has the capacity and experience for the project and is deemed a responsible bidder. They are prepared to begin work in late May with an anticipated completion in September 2019.

The CIP identifies an original project scope and budget of $2,300,000 for the 2019 Street & Utility Reconstruction Project. However, a portion of the project along Levee Drive and Scott Street is being shifted to 2020 to  better coordinate that work with the proposed River Bluffs Development, which subsequently reduced project costs as shown in the Feasibility Report to a total estimated project cost of $1,397,000. During design of the project, additional evaluation and inspection of the existing sanitary sewer and water main piping in Minnesota Street found that the these lines are in good condition and do not need replacement at this time, resulting in an additional project cost savings.

Based on this revised scope, the total estimated project cost based on the low bid plus 8 percent contingency and 12 percent engineering/administration/legal make up a revised total project budget of $1,283,918. The contingency amount would cover any potential change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project.

This project is proposed to be funded by the Capital Improvement Fund, Special Assessments, Shakopee Public Utilities (water main), the Sanitary Sewer Fund ,and the Storm Sewer Fund.