The city's Capital Improvement Plan (CIP) contains the 2018 Street Reconstruction Project CIF-18-003. On March 6, 2018, the City Council adopted Resolution R2018-022 approving the plans and specifications, and authorizing bidding of the project.

In accordance with Minnesota Statute Section 471.347 Uniform Municipal Contracting Law, bids were solicited and opened on April 5, 2018. Eleven bids were received and Northwest Asphalt, Inc., from Shakopee, Minnesota, is the low bidder in the amount of $1,778,588.87 (see the attached resolution for the bid tabulation summary). The construction cost estimate for this project was $2,034,000.00. Northwest Asphalt, Inc., has the capacity and experience for the project and is deemed a responsible bidder. They are prepared to begin work in late May with an anticipated completion in September 2018.

The CIP identifies a project budget of $2,740,000 for the 2018 Street Reconstruction Project, which was subsequently reduced as part of the Feasibility Report to a total estimated project cost of $2,462,000. 

The total estimated project cost based on the low bid plus 8 percent contingency and 12 percent engineering/administration/legal make up a revised total project budget of $2,176,000. The contingency amount covers any necessary change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project.

This project is proposed to be funded by the Capital Improvement Fund, Special Assessments, Shakopee Public Utilities (watermain), the Sanitary Sewer Fund ,and the Storm Sewer Fund.