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Shakopee City Council
April 7, 2020
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| | | | | | | | | FROM: | Ryan Halverson, Assistant City Engineer | | TO: | Mayor and Council Members |
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| | | | | | | | Subject:
Award a contract for the 2020 Full-Depth Pavement Reconstruction Project CIF-20-004. | | |
| | | | | | | | Policy/Action Requested:
Adopt Resolution R2020-040, awarding a contract in the amount of $2,206,194.77 to Wm. Mueller & Sons, Inc., for the 2020 Full-Depth Pavement Reconstruction Project CIF-20-004. | | |
| | | | | | | | Recommendation:
Approval of Resolution R2020-040. | | |
| | | | | | | | Discussion:
The city's Capital Improvement Plan (CIP) contains the 2020 Full-Depth Pavement Reconstruction Project CIF-20-004. On February 18, 2020, the City Council adopted Resolution R2020-015 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 March 26, 2020. Six bids were received and Wm. Mueller & Sons, Inc., from Hamburg, Minnesota, is the low bidder in the amount of $2,206,194.77 (see the attached resolution for the bid tabulation summary). The bid is competitive and is 10.0 percent less than the engineer's construction estimate of $2,450,000.
Wm. Mueller & 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 September 2020. | | |
| | | | | | | | Budget Impact:
Based on the low bid amount, the updated total estimated project cost and funding summary is as follows:
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Feasibility Report |
Estimate Based |
|
Budget |
On Bid Award |
| COSTS |
|
|
| Construction Cost |
$ 2,450,000.00 |
$2,206,194.77 |
| Contingency |
$ 195,800.00 |
$176,495.23 |
| Subtotal |
$ 2,645,800.00 |
$2,382,690.00 |
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|
|
| Eng/Admin/Legal |
$ 153,700.00 |
$153,700.00 |
| Total Estimated Project Cost |
$ 2,799,500.00 |
$2,536,390.00 |
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| FUNDING |
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| Special Assessments |
$ 729,200.00 |
$705,585.93 |
| Capital Improvement Fund |
$ 1,899,800.00 |
$1,766,901.99 |
| Sanitary Sewer Fund |
$ 5,750.00 |
$4,381.56 |
| Storm Drainage Fund |
$ 159,000.00 |
$57,943.64 |
| Shakopee Public Utilities |
$ 5,750.00 |
$1,576.88 |
| Total Funding |
$ 2,799,500.00 |
$2,536,390.00 |
The amended total project budget of $2,536,390 is under the feasibility budget by 9.4 percent and includes a contingency amount that covers any unexpected change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project. This project is funded by Special Assessments, the Capital Improvement Fund, the Sanitary Sewer Fund, the Storm Drainage Fund and Shakopee Public Utilities.
Included in the resolution is new funding language that would allow the city to reimburse project costs from future bond proceeds. This language allows for greater flexibility in funding current and future projects, should the city desire or need this in the future. The additional language allows the city a period of up to three years to issue and reimburse itself with bond proceeds. The language does not change the requirements or administrative process for issuing debt. All debt issuance will still require separate approval by the City Council. | | |
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