The city's Capital Improvement Plan (CIP) contains the Maras Street, 13th Avenue and Hansen Avenue Utility Extension Project Sewer-21-001. On January 18, 2022, the City Council approved the plans and specifications and authorized bidding of the project.

In accordance with Minnesota Statute Section 471.345 Uniform Municipal Contracting Law, bids were solicited and opened on March 4, 2022. Six bids were received and Northwest Asphalt, from Shakopee, Minnesota, is the lowest bidder in the amount of $4,828,161.36 (see the attached resolution for the bid tabulation summary). Northwest Asphalt has the capacity and experience for the project and is deemed a responsible bidder. The engineer's estimate amounted to $5,012,000.

Also of note, the quantity of the bid proposal item number 79, Construct 84” Diameter Sanitary Sewer Manhole, has been adjusted from 17.0 linear feet to 10.3 linear feet. The adjusted quantity results in a revised contract amount of $4,617,231.96. Northwest Asphalt has acknowledged this discrepancy and has indicated their upfront agreement with this change to be included as part of the official contract.

Based on the low bid amount, the total estimated project cost for the Maras Street, 13th Avenue and Hansen Avenue Utility Extension Project is $5,749,231.96. This total project amount includes streetlighting improvements that will be coordinated directly with Shakopee Public Utilities. The below table summarizes the costs and funding sources for the project.

The amended total project budget of $5,749,231.96 is over the CIP budget by 5.1% and includes a $144,000 contingency amount that would cover any unexpected change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project. The project is to be funded by the Capital Improvement Fund, Special Assessments, Sanitary Sewer Fund, Storm Drainage Fund, and by the Shakopee Public Utilities Commission.   

Construction costs related to storm sewer and sanitary sewer improvements came in over the originally estimated amounts as a result of having to lower the depth of the proposed sanitary sewer system during final design to ensure it will provide adequate depth for the entire sewer service area. This increase results in an increase of the proposed estimated Lateral Connection Fee amounts that will be required to be paid by property owners at the time of connection. The updated Lateral Connection Fees based on bid award  are attached. Also note that the final fee amounts will be up updated and finalized upon project completion and will be based on final actual project amounts.

Also of note, the proposed special assessment amount for street improvements that was included with the feasibility study was $10,329.90 per developable acreage; however, it is now estimated to be reduced to $9,738.33 based on the updated bid award amounts (this amount will also be finalized at the completion of the project and will be based on final actual project amounts).

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.