The current Capital Improvement Plan includes a 2020 12th Avenue Trail project, CIF-20-003. This project includes the design, easement acquisition and construction of a trail along the south side of 12th Avenue from Canterbury Road (County Highway 83) to Gateway Drive. The construction of this new trail will complete a missing segment of regional trail within the city that will better connect Quarry Park and provide access to the businesses along 12th Avenue.

The advancement of this project is being presented for your consideration based on requests from adjacent property owners. It should also be noted that staff is currently working on submitting a grant application for this project with the Minnesota Department of Natural Resources under the Local Trail Connections Program. The maximum grant award amount is $150,000 under this program.

City staff will need assistance from the design consultant to complete the project. SEH, Inc., has the experience and capacity to provide the needed services. The City of Shakopee has a Master Agreement for Professional Services with SEH, Inc. The attached Professional Services Agreement authorizes and describes the scope and fee for their work on this project.

The CIP identifies a project budget of $240,000 for the 12th Avenue Trail Project (see attached). Based on a preliminary project estimate provided by SEH, Inc., as part of their proposal estimate, the project is expected to significantly exceed the original estimations as follows:

    Construction                         $656,000

    Easement Acquisition          $  50,000

    Engineering/Admin/Legal     $140,000

    Contingency                         $  50,000

    TOTAL                                  $896,000

If the City Council desires to proceed with this project, the recommended funding source is the Capital Improvement Fund (240,000) and Municipal State Aid (MSA) Funding ($656,000), with the understanding that a successful grant application could result in up to $150,000 of additional funding to offset the MSA funding. The 2018 MSA apportionment from the state is adequate to account for the additional funding needing to complete this project.

The scope of the SEH, Inc. Professional Services Agreement is proposed to cost (not to exceed) $123,874.10.