Item Coversheet

*4.B.6.


Shakopee City Council
AugustĀ 7, 2024


FROM:Alex Jordan, City Engineer
TO:Mayor and Council Members
Subject:
12th Avenue Driveway Consolidation Project Final Payment and Contract Termination
Policy/Action Requested:
Authorize staff to issue the final payment and terminate the contract with Minnesota Roadways, Co. for the 12th Avenue Driveway Consolidation Project.
Recommendation:
Authorization as requested.
Discussion:

On June 20, 2023, City Council approved a contract with Minnesota Roadways, Co. for the 12th Avenue Driveway Consolidation Project, CIF-20-014. The contractor was prepared to begin construction in 2023, however private utility conflicts prevented them from starting work due to repeated delays in private utility relocations. Despite numerous requests from the City, the utility providers did not relocate their infrastructure until it was too late into the season to begin construction.

 

The City entered into an Access Modification Agreement with United Properties (UP), allowing the city to complete the driveway consolidation outside of the existing right-of-way. As part of the agreement, UP would coordinate the repaving of their parking lot to occur concurrently with the city's relocation of their driveway. To avoid additional costs for delaying their private improvements, UP proceeded with repaving their entire parking lot in the fall of 2023.

 

In order to complete the driveway consolidation project in 2024, significant additional costs would be incurred by the City, both due to the increased costs from the contractor for the delay, and the costs to avoid and repair impacts to UP's newly repaved parking lot.

 

City staff has determined that the overall project costs for the improvements now exceeds the benefit it will bring to the public for consolidating the driveways. Therefore, staff recommends terminating the contract and issuing final payment to the contractor. The contractor has agreed to terminate the contract with no additional monies owed outside of the final retainage. 

Budget Impact:

This project is funded by the Canterbury Commons Development Tax Increment. The awarded contract amount was $165,389.65. The final payment includes releasing the retainage in the amount of $158.84. The total construction costs for work completed under the contract is $3,176.75, which includes utility potholing, mobilization and restoration. 

ATTACHMENTS:
Description
Final Payment