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Shakopee City Council
April 20, 2021
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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 2021 Bituminous Pavement Rehabilitation Project | | |
| | | | | | | | Policy/Action Requested:
Adopt Resolution R2021-063, accepting bids and awarding a contract in the amount of $2,539,198.69 to Wm. Mueller & Sons, Inc., for the 2021 Bituminous Pavement Rehabilitation Project CIF-21-011, CIF-21-012, CIF-21-013 and PA-21-01. | | |
| | | | | | | | Recommendation:
Adopt Resolution R2021-063. | | |
| | | | | | | | Discussion:
The city's Capital Improvement Plan (CIP) contains the 2021 Bituminous Pavement Rehabilitation Project CIF-21-011, CIF-21-012, CIF-21-013 and PA-21-01. On March 16, 2021, the City Council adopted Resolution R2021-032 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 13, 2021. Five bids were received and Wm. Mueller & Sons, Inc., from Hamburg, Minnesota, is the low bidder in the amount of $2,539,198.69 (see the attached resolution for the bid tabulation summary). The bid is competitive and is 10.6 percent less than the engineer's construction estimate of $2,841,000.
Wm. Mueller & Sons, Inc., has the capacity and experience for the project and is deemed a responsible bidder. They are prepared to begin work in May with an anticipated completion in early September 2021. | | |
| | | | | | | | Budget Impact:
Based on the low bid amount, the updated total estimated project cost for the 2021 Bituminous Pavement Rehabilitation Project is as follows:
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Feasibility
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Estimated Based
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Estimate
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On Bid Award
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COSTS
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Construction Cost
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$ 2,841,000
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$ 2,567,729.39
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Contingency (~5%)
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$ 137,000
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$ 128,000.00
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Subtotal
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$ 2,978,000
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$ 2,695,729.39
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Eng/Admin/Legal
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$ 132,000
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$ 132,000.00
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Total Estimated Project Cost
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$ 3,110,000
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$ 2,827,729.39
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FUNDING
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Capital Improvement Fund
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$ 2,970,000
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$ 2,696,220.69
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Cost Sharing, SPUC
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$ 25,000
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$ 24,078.00
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Sanitary Sewer Fund
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$ 30,000
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$ 29,848.00
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Storm Sewer Fund
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$ 15,000
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$ 13,187.00
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Park Asset Internal Service Fund
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$ 70,000
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$ 64,395.70
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Total Funding
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$ 3,110,000
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$ 2,827,729.39
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The amended total project budget of $2,827,729.39, which is 9.1% under the feasibility estimate, 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 2021 CIP plan, this combined project is proposed to be funded by the Capital Improvement Fund, Shakopee Public Utilities, the Sanitary Sewer Fund, the Storm Sewer Fund and Park Asset Internal Service Fund.
Included in the resolution is 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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