The city's Capital Improvement Plan (CIP) contains the 2020 Bituminous Overlay Project CIF-20-002. On February 18, 2020, the City Council adopted Resolution R2020-016 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. Eight bids were received. The engineer's estimate is $1,645,000. Molnau Trucking, LLC., from Norwood, MN, was the low bidder in the amount of $1,482,285.75 (see the attached resolution with bid tabulation summary). Note that the bid from Molnau Trucking, LLC., had a minor tabulation error, but was corrected and did not change the bid order. Their bid amount is 9.9 percent under the engineer's estimate. 

As part of the bid evaluation process, it is necessary to determine if the contractor's bid is responsive and responsible. Molnau Trucking, LLC., has been in the business for the past 20 years, noting that they have only recently (in the last few years) expanded their business to include roadway construction and paving. While their company does not have equal or comparable past project experience to this project, the contractor has indicated that their organization, financial resources, equipment and acquired staff have the technical qualifications and experience necessary for this project. It should also be noted that their reference check was generally positive in nature, although understanding that the referenced projects were smaller in scale and not comparable to the city's mill and overlay project. 

The city attorney has been consulted, and while a case could be made to reject their bid for lack of experience, it is expected that Molnau would legally contend the rejection. The next lowest bid is $82,066.77 more. As indicated above, the contractor has displayed their capacity to perform and complete this project. The contractor will have the standard requirements that include payment/performance bonds. Their work is required to meet or exceed certain performance standards and the city's inspectors will ensure this with close and systematic oversight.

Based on the above evaluation, Molnau Trucking, LLC., has indicated that they have the experience and capacity to perform and complete this project and is therefore deemed a resposive and responsible bidder. They are prepared to begin work in late May with an anticipated completion in September 2020.

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

The amended total project budget of $1,725,786 is under the feasibility budget by 5.7 percent and includes a contingency amount that covers any unexpected change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project.

Consistent with the 2020 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.