The city's Capital Improvement Plan (CIP) contains the 2018 Bituminous Overlay Project CIF-18-002 and Community Center Back Parking Lot Project PA-18-013. On April 17, 2018, the City Council adopted Resolution R2018-053 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 May 3, 2018. Six (6) bids were received and Wm. Mueller & Sons, Inc., from  Hamburg, Minnesota, is the low bidder in the amount of $1,274,644.83 (see the attached resolution for the bid tabulation summary). The CIP construction cost estimate for the combined projects was $1,265,000. Wm. Mueller & Sons, Inc., has the capacity and experience for the project and is deemed a responsible bidder. They are prepared to begin work in June with an anticipated completion in August 2018.

The CIP identifies a budget of $1,310,000 for the 2018 Bituminous Overlay Project and will be funded by the Capital Improvement Fund with additional minor funding identified out of the Sanitary Sewer Fund, Surface Water Fund, and Shakopee Public Utilities for miscellaneous repairs to those utilities as needed. The CIP also identifies a budget of $55,000 for the Community Center Back Park Lot Project out of the Park Asset Internal Service Fund. The total CIP budget was $1,365,000.

The total estimated project cost based on the low bid plus five percent (5%) contingency and eight percent (8%) estimated engineering/administration/legal make up a revised total project budget of $1,440,000.00, which is 5.5 percent ($75,000) over the combined CIP budgets. The contingency amount covers any unexpected change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project. The Capital Improvement Fund and the Park Asset Internal Service Fund have enough cash balance to absorb the identified over-budget amount.