Item Coversheet

*4.B.6.


Shakopee City Council
AprilĀ 16, 2024


FROM:Alex Jordan, City Engineer
TO:Mayor and Council Members
Subject:
Award Contract for the Colburn Drive Extension Project
Policy/Action Requested:
Adopt Resolution R2024-056, accepting bids and awarding a contract in the amount of $259,627.20 to S.M. Hentges & Sons, Inc. for the Colburn Drive Extension Project.
Recommendation:
Adopt Resolution R2024-056.
Discussion:

The River Valley Business Park Development Agreement between the City and Opus Development Company, L.L.C. (Developer) includes provisions requiring construction of public improvements consistent with the adopted West End Industrial Site Traffic Impact Study, dated June 28, 2022. The improvements are described as the Plan B Improvements and include: 

• Colburn Drive Extension, which consists of extending Colburn Drive north connecting to Mobile Manner Drive and construction of a permanent cul-de-sac removing the connection to Emery Way/Old Brick Yard Road.
• Intersection improvements (roundabout) at County Highway 69

 

The intersection improvements at County Highway 69 are not programmed in the City's Capital Improvement Plan and are subject to Scott County approval and development of adjacent properties east of County Highway 69. 

 

Construction of the Colburn Drive Extension must be completed in 2024 to support the development of and access for the River Valley Business Park subdivision.

 

In accordance with Minnesota Statute Section 471.345 Uniform Municipal Contracting Law, bids were solicited and opened on April 4, 2024. Eight bids were received and S.M. Hentges & Sons, Inc. is the low bidder in the amount of $259,627.20 (see attached resolution for the bid summary). The engineer's estimate amount was $342,188.00.

 

S.M. Hentges & Sons, Inc., has the capacity and experience for the project and is deemed a responsible bidder. The project work will occur during the summer and is expected to be completed by November 2024. 

Budget Impact:

The estimated overall project cost was $450,000, which includes engineering, construction and administration costs. The Developer will reimburse the City 100% of the project costs for the improvements, consistent with the River Valley Business Park Development Agreement.  Below is the costs and funding summary table comparing the estimated costs to the updated bid award budget. 

 

CIP Budget Estimate Based
On Bid Award
COSTS
Construction Cost $ 342,188.00 $ 259,627.20
Contingency $ 17,109.40 $ 25,962.72
Subtotal $ 359,297.40 $ 285,589.92
Eng/Admin/Legal $ 90,702.60 $ 90,702.60
Total Estimated Project Cost $ 450,000.00 $ 376,292.52
FUNDING
Developer Reimbursement $ 450,000.00 $ 376,292.52
ATTACHMENTS:
Description
Resolution R2024-056