The city's Capital Improvement Plan (CIP) contains the 12th Avenue Reconstruction Project CIF-19-004. On March 19, 2019, the City Council adopted Resolution R2019-034 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 25, 2019. Two bids were received. S.M. Hentges & Sons, Inc., from Jordan, Minnesota, is the low bidder in the amount of $2,869,489.38 (see the attached resolution for the bid tabulation summary). The bid amount is 15.8 percent under the engineer's estimate of $3,322,575.83. 

S.M. Hentges & Sons Inc., has the capacity and experience for the project and is deemed a responsible bidder. They are prepared to begin work in May with an anticipated completion in November 2019.

It should be noted that during design, a portion of 12th Avenue east of CSAH 83 was removed from the project scope. Additional time is needed to coordinate and negotiate with adjacent property owners to develop safe and efficient access layouts that consolidate the multiple driveways that are in close proximity to the intersection of 12th Avenue and CSAH 83. This "Phase 2" portion of the project is continuing to be developed and is anticipated to be combined with another future Canterbury TIF project.

Based on the revised project scope, the updated total estimated project cost is as follows:

Construction Cost                    $ 2,869,489.38

Contingency (5%)                    $    143,000.00

Subtotal                                    $ 3,012,489.38

Easements                               $    100,000.00

SRF Professional Services      $    612,000.00

Eng/Admin/Legal                     $    100,000.00

Total Estimated Project Cost    $ 3,824,489.38

The recommended total project budget of $3,824,489.38 plus the phase 2 work for 12th Avenue on the east side of CSAH 83 is anticipated to be well under the CIP budget of $7,200,000. The five percent contingency amount would cover any potential change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project.

The project is budgeted in the 2019 Capital Improvement Plan as part of the Canterbury Commons Development Tax Increment Funding.