The City's Capital Improvement Plan (CIP) contains the 2023 Full-Depth Pavement Reconstruction Project CIF-23-001, the 2023 Pavement Rehabilitation Project CIF-23-011, the 2023 Bituminous Mill and Overlay Project CIF-012, and the 2023 Trail Rehabilitation Project CIF-23-013. On March 7, 2023, the City Council adopted Resolution R2023-030 approving plans and specifications, and authorizing bidding for the combined project.

In accordance with Minnesota Statute Section 471.345 Uniform Municipal Contracting Law, bids were solicited and opened April 4, 2023. Seven bids were received and Bituminous Roadways from Mendota Heights, Minnesota, was the low bidder in the amount of $4,845,215.42 (see the attached resolution for the bid tabulation summary).

Bituminous Roadways has the capacity and experience for the project and is deemed a responsible bidder. Construction is anticipated to begin late April and be completed early fall of 2023.

Based on the low bid amount, the total estimated project cost for the 2023 Full-Depth Pavement Reconstruction and Bituminous Pavement Rehabilitation project is $5,473,726.99. This total project amount includes other work needed to complete the project that is outside of the contract with Bituminous Roadways including a chip seal coat through the city's Joint Powers Agreement and streetlighting improvements coordinated directly with Shakopee Public Utilities. Table 1 below summarizes the costs and funding sources for the project. Each individual CIP project contained within the combined project falls within its original CIP budget.

Table 1. Cost and Funding for Projects CIF-23-001, CIF-23-011, CIF-23-012, and CIF-23-013 (Full-Depth Pavement Reconstruction, Annual Bituminous Mill and Overlay, Pavement Rehabilitation, and Trail Rehabilitation)

The amended total project budget of $5,473,726.99 includes a $242,860.77 contingency amount that would cover any unexpected change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project. This project is funded by the Capital Improvement Fund, Special Assessments, Storm Drainage Fund, Sanitary Sewer Fund, and Shakopee Public Utilities. 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.