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Shakopee City Council
April 21, 2020
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| | | | | | | | | FROM: | Kirby Templin, Water Resources/Environmental Engineer | | TO: | Mayor and Council Members |
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| | | | | | | | Subject:
Award a contract for the Reroute Stormwater to Protect Historic Sites Project | | |
| | | | | | | | Policy/Action Requested:
Adopt Resolution R2020-054, awarding a contract in the amount of $788,870.76 to Ryan Contracting Co., for the Reroute Stormwater to Protect Historic Sites Project Storm-19-003. | | |
| | | | | | | | Recommendation:
Approval of Resolution R2020-054. | | |
| | | | | | | | Discussion:
The city's Capital Improvement Plan (CIP) contains the Reroute Stormwater to Protect Historic Sites Project Storm-19-003 as outlined in the attached CIP project summary sheet. On March 17, 2020, the City Council adopted Resolution R2020-030 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 10, 2020. Five bids were received and Ryan Contracting Co., from Elko, Minnesota, is the low bidder in the amount of $788,870.76 (see the attached resolution for the bid tabulation summary). While the bid is competitive, it is 3.3 percent more than the most recent updated engineer's construction estimate of $763,698.48.
Ryan Contracting Co., 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 substantial completion in September 2020. | | |
| | | | | | | | Budget Impact:
Based on the bid award amount, the updated total estimated project cost and funding summary is as follows:
|
CIP |
Estimate Based |
|
Budget |
On Bid Award |
| COSTS |
|
|
| Construction Cost |
$ 975,000.00 |
$ 788,870.76 |
| Contingency |
$ 146,000.00 |
$ 118,000.00 |
| Subtotal |
$ 1,121,000.00 |
$ 906,870.76 |
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|
|
| Eng/Admin/Legal |
$ 429,000.00 |
$ 429,000.00 |
| Total Estimated Project Cost |
$ 1,550,000.00 |
$ 1,335,870.76 |
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|
|
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| FUNDING |
|
|
| Storm Drainage Fund |
$ 1,089,000.00 |
$ 814,870.76 |
| Minnesota Historical Society Grant |
$ 336,000.00 |
$ 336,000.00 |
| Shakopee Mdewakanton Sioux Community |
$ 75,000.00 |
$ 75,000.00 |
| Lower Minnesota River Watershed |
$ 50,000.00 |
$ 35,000.00 |
| Scott County |
$ 0.00 |
$ 75,000.00 |
| Total Funding |
$ 1,550,000.00 |
$ 1,335,870.76 |
The amended total project budget of $1,335,870.76 is under the CIP budget by 13.8 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 the Storm Drainage Fund, Minnesota Historical Society Grant, Shakopee Mdewakanton Sioux Community, Lower Minnesota River Watershed District and Scott County.
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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