Item Coversheet

*4.C.1.


Shakopee City Council
July 6, 2021


FROM:Adam Bentson, Graduate Engineer
TO:Mayor and Council Members
Subject:
Award a contract for the Jennifer Lane Park Project.
Policy/Action Requested:
Adopt Resolution R2021-105, accepting bids and awarding a contract in the amount of $178,174.86 to BKJ Land Company, for the Jennifer Lane Park Project PR-20-005.
Recommendation:
Adopt Resolution R2021-105.
Discussion:

The city's Capital Improvement Plan (CIP) contains the Jennifer Lane Park Project PR-20-003. On May 18, 2021, the City Council adopted Resolution R2021-087 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 June 23, 2021. Twelve bids were received and BKJ Land Company, from Jordan, Minnesota, is the low bidder in the amount of $178,174.86 (see the attached resolution for the bid tabulation summary). The bid is competitive and is 8.6 percent more than the engineer's construction estimate of $164,710.82. 

 

BKJ Land Company has the capacity and experience for the project and is deemed a responsible bidder. They are prepared to begin work in August with an anticipated completion in late September 2021. 

Budget Impact:

The CIP identified a total project cost of $274,950.00. Below is the costs and funding summary table comparing the CIP budget and engineer's estimate to the bid award budget.

 

CIP Budget Estimate

Engineer's Estimate

Estimate Based on Award

COSTS

 

Construction Cost

$237,500.00

 

 

Playground Equipment   $109,482.36 $109,482.36
Site Improvements
$164,710.82 $178,174.86 

Contingency

$12,500.00

$12,500.00 $12,500.00

Subtotal

$250,000.00

$286,693.18 $300,157.22
 

Eng/Admin/Legal

$24,950.00 $29,000.00 $29,000.00

Total Estimated Cost

$274,950.00

$315,693.18

$329,157.22

 

 

FUNDING

 

Capital Improvement Fund

$274,950.00

$315,693.18 

$329,157.22

Total Funding

$274,950.00

$315,693.18

$329,157.22

 

The updated total project cost is $329,157.22. This amount is 19.7 percent over the CIP budget. Additional playground items were needed to make the park ADA accessible that were not captured in the original CIP estimate in 2018. This change and the associated year to year construction cost increases have resulted in the project being noticeably over the CIP budget. However, the costs are reflective of the current project scope. The project is to be funded fully out of the Park Development fund.

ATTACHMENTS:
Description
Resolution R2021-105
CIP Sheet PR-20-003