Approve Resolution 7860, which accepts the bids and awards a contract for the 2017 Street Reconstruction, Project 2017-1 to Kuechle Underground Inc. and approve a 5% contingency amount on this project for use by the City Engineer in authorizing change orders or quantity adjustments on this project.

On March 7, 2017, City Council adopted Resolution No. 7844, which approved the plans and specifications and authorized staff to advertise for bids for the 2017 Street Reconstruction, Project 2017-1.

On April 11, 2017, a bid opening was held for the 2017 Street Reconstruction Project, in which there were eleven bids opened for this reconstruction project. The bids are summarized in the attached resolution.  From the bid opening, the low bidder is Kuechle Underground Inc. with a bid of $1,666,751.40.  The feasbility report construction cost estimate for this project is $2,089,000.00.

The Preliminary Engineering report included a project cost estimate of $2,582,000.00.  Adding a 5% contingency to the low bid and 18% indirect costs, the projected project cost is approximately $2,000,101.68.

If Council awards the contract, staff is also requesting a contingency amount equal to 5% of the contract to cover minor change orders and quantity adjustments that may occur on the project.

This project is funded by Assessments, Tax Levy, Shakopee Public Utilities, the Sanitary Sewer Fund and the Storm Sewer Fund.