The city's Capital Improvement Plan (CIP) contains the 2019 Pavement Mill & Overlay Project CIF-19-002. On April 16, 2019, the City Council adopted Resolution R2019-048 approving the plans and specifications and authorizing bidding of the project.

The project has been renamed to 2019 Pavement Rehabilitation Project with the same CIF-19-002 project number. This name more accurately describes the project due to the different pavement rehabilitation techniques being proposed with the project and not just simply a mill and overlay.

In accordance with Minnesota Statute Section 471.347 Uniform Municipal Contracting Law, bids were solicited and opened on May 9, 2019. Six bids were received and Northwest Asphalt Inc., was the low bidder in the amount of $1,970,374.55. (see the attached resolution for the bid tabulation summary). The bid amount is 15.9 percent over the engineer's estimate of $1,700,000. 

Northwest Asphalt 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.

As previously indicated during plan approval, it should be noted that revisions to the orignal project scope proposed in the CIP were made as follows:

• 11th Avenue, 12th Avenue and Gateway Drive - These sections of roadway were removed from the 2019 rehabilitation project to first allow for construction of the 12th Avenue Bituminous Trail Project in 2019. The rehabilitation of these streets will be shifted and included with the 2020 Pavement Rehabilitation project.

• Sarazin Street - This section of roadway was removed from the 2019 rehabilitation project. During final design, the roadway was evaluated and determined that the bituminous pavement indeed needs to be fully replaced (full depth). However, this type of project would be partially assessed to adjacent benefitting property owners. The project will be shifted and programmed with the 2020 Reclamation Project that would include partial funding from assessments.

The CIP identifies an original project scope and budget of $2,200,000 for this project. However as indicated above, the scope was revised with a total updated estimated CIP project cost of $1,909,000.

Based on the low bid amount, the updated total estimated project cost is as follows:

The recommended total project budget of  $2,179,374.55 is over the revised estimated CIP budget ($1,909,000) by approximately 14.2 percent. Higher than anticipated project costs are mainly a result of asphalt bituminous prices increasing by approximately 18 percent from 2018 prices. The higher bituminous prices are consistent with other recent project bids.The contingency amount would cover any potential change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project.

Consistent with the 2019 CIP, this project is proposed to be funded by the Capital Improvement Fund, Shakopee Public Utilities, the Sanitary Sewer Fund, and the Storm Sewer Fund.