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Shakopee City Council
June 15, 2021
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| | | | | | | | | FROM: | Adam Bentson, Graduate Engineer | | TO: | Mayor and Council Members |
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| | | | | | | | Subject:
Award a contract for the Red Oak Trail Project. | | |
| | | | | | | | Policy/Action Requested:
Adopt Resolution R2021-076, accepting bids and awarding a contract in the amount of $178,795.88 to Max Steininger, Inc., for the Red Oak Trail Project PR-20-005. | | |
| | | | | | | | Recommendation:
Adopt Resolution R2021-076. | | |
| | | | | | | | Discussion:
The city's Capital Improvement Plan (CIP) contains the Red Oak Trail Project PR-20-005. On May 4, 2021, the City Council adopted Resolution R2021-075 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 3, 2021. Six bids were received and Max Steininger, Inc., from Eagan, Minnesota, is the low bidder in the amount of $178,795.88 (see the attached resolution for the bid tabulation summary). The bid is competitive and is 10.3 percent less than the recently updated engineer's construction estimate of $199,414.50.
Max Steininger, Inc., has the capacity and experience for the project and is deemed a responsible bidder. They are prepared to begin work in June with an anticipated completion in early September 2021. | | |
| | | | | | | | Budget Impact:
Based on the low bid amount, the updated total estimated project cost and funding summary for the Red Oak Trail Project is as follows:
|
2020 CIP
Estimate |
2020 Feasibility
Estimate |
2021 Estimate Based
on Bid Award |
| COSTS |
|
|
|
| Construction Cost |
$130,150 |
$165,000 |
$178,795.88 |
| Contingency |
$6,850 |
$8,250 |
$5,000 |
| Subtotal |
$137,000 |
$173,250 |
$183,795.88 |
|
|
|
|
| Eng/Admin/Legal |
$30,000 |
$30,000 |
$30,000 |
| Total Project Cost |
$167,000 |
$203,250 |
$213,795.88 |
|
|
|
|
| FUNDING |
|
|
|
| Park Development Fund |
$145,000 |
$181,250 |
$197,329.87 |
| Tree Replacement Fund |
$22,000 |
$22,000 |
$16,466.01 |
| Total Funding |
$167,000 |
$203,250 |
$213,795.88 |
The amended total project budget of $213,795.88 is 28.0 percent ($46,795.88) over the CIP budget. Note that the Bid Award Estimate also includes a small contingency amount that covers any unexpected change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project.
As indicated in the Memorandum provided to City Council on May 4, 2021, the original project was delayed from 2020 to 2021 due to coordination with CenterPoint Energy. Project cost increases are mostly a result of an additional year cost escalation and the updated detailed final design. It is recommended to proceed as the bids were competitive and are consistent with our most recent cost estimating. Any rescoping of the project is not expected to result in any project cost savings as the project consists of a minimal design with little to no feasible project components that could be eliminated or reduced.
Consistent with the 2021 CIP, the project is proposed to be funded by the Park Development Fund and Tree Replacement Fund. | | |
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