DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Award Bid And Execute Construction Contract With Park Construction Company, Amend Design Contract With Bolton & Menk, Inc., And Amend 2025 Transportation Capital Improvement Program Budget For County State Aid Highway 26 (Lone Oak Road) Roadway Improvements In City Of Eagan, County Project 26-67
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PURPOSE/ACTION REQUESTED
• Award bid and authorize a contract with Park Construction Company for the County State Aid Highway (CSAH) 26 (Lone Oak Road) Roadway Improvements for County Project (CP) 26-67 (Attachment: Project Location Map) in the City of Eagan.
• Authorize a third contract amendment with Bolton & Menk, Inc., to complete final design.
• Authorize the amendment of the adopted 2025 Transportation Capital Improvement Program (CIP) Budget.
SUMMARY
To provide a safe and efficient transportation system Dakota County is proceeding with CP 26-67 in the City of Eagan. County Project 26-67 is planned to provide improvements to CSAH 26 (Lone Oak Road) from Trunk Highway (TH) 13 to I-35E in Eagan. The corridor segment between TH 13 and CSAH 31 (Pilot Knob Road) includes a multi-use trail as part of the School Area Safety Assessment recommendations for Pilot Knob STEM School and a roadway lane reduction from four to three lanes planned for the segment from CSAH 31 to I-35E. This project will improve CSAH 26 roadway operations, make safety improvements, and include pedestrian amenities. Originally programmed as two separate projects (CP 26-66 and CP 26-67) in Dakota County’s 2022-2026 CIP, the two projects were combined into one project in the 2023-2027 CIP. Construction is planned for the spring of 2025.
Bids Received: County Project 26-67 construction bids were received and tabulated on February 12, 2025.
Five bidders submitted bids as follows:
Bid Name Total Amount
Park Construction Company $7,033,172.20
Max Steininger, Inc. - Member $7,042,601.17
Eureka Construction, Inc. $7,450,604.40
Valley Paving, Inc $7,672,038.29
Meyer Contracting Inc. $7,853,007.95
Engineer’s Estimate: $8,271,430.98
The lowest responsive and responsible bid for CP 26-67 is from Park Construction Company in the amount of $7,033,172.20, which is 14.97 percent below the engineer’s estimate of $8,271,430.98. Staff has reviewed the bids and determined that the bid was competitive at the time of bidding.
The County Board initially authorized a contract with Bolton & Menk, Inc., for $381,381 by Resolution No. 22-043 (January 18, 2022), covering preliminary engineering for CP 26-66 and final design for CP 26-67. Federal funding of $4,740,000 for the project was secured for CP 26-66, prompting adjustments to the contract to expand the project scope to include reconstruction of the segment on Lone Oak Road from TH 13 to Pilot Knob Road. This scope change necessitated a first contract amendment of $488,985 authorized by Resolution No. 23-426 (September 26, 2023) to consolidate both projects under CP 26-67. This was followed by a second contract amendment in the amount of $92,000 by Resolution No. 24-386 (July 30, 2024), raising the total contract amount to $962,366. These modifications to the design contract over the project life cycle addressed evolving project requirements, modifications to the design to minimize property owner impacts, and incorporated public feedback, ultimately advancing the project toward its planned 2025 construction.
Towards completion of the design, the project team encountered the need for changes outside of the anticipated scope to meet agency and City partner needs. To address these changes, County staff requested Bolton & Menk, Inc., to provide a third contract amendment memorandum to outline the scope and cost of services to complete the final design. County staff negotiated the fee scope with Bolton & Menk, Inc., for a third amendment cost of $38,050, increasing the total final design contract amount to $1,000,416. The total amended contract value represents 14 percent ($1,000,416) of the construction low-bid amount ($7,033,172.20), which is typically between 10 to 15 percent for Federal projects. A more detailed description of all tasks associated with the negotiated scope increase was provided by Bolton & Menk, Inc. (Attachment: Amendment Memorandum 3).
A summary of the additional tasks includes:
• Task 1 - Project Management
o Extension of project management schedule for finalization of the design plans
• Task 9 - Traffic Analysis
o Additional coordination and modification of Signal Justification Reports with the transition of traffic staff and incorporating new Eagandale Boulevard traffic counts to review traffic signal warrants following completion of the report.
• Task 10 - Roadway Engineering Design Changes
o Vince Trail Geometrics:
§ Design modifications for the Vince Trail intersection, which involved creating new geometric designs to accommodate the City's snowplows.
o Private Driveways:
§ Modification of design files, plan sheets, quantities, and cost estimates following the 95 percent plan submittal stemming from the redesign of six private driveways to reduce running slopes of approach panels.
o Pilot Knob Signal Plan Modifications:
§ Plan modifications requested by staff to display existing and proposed conditions differently following the 95 percent plan submittal.
Budget Amendment
To proceed with the project, the adopted 2025 Transportation CIP Budget needs to be amended to increase the project budget by an additional $490,000 to account for the Bolton & Menk contract amendment #3 and to award the construction contract. A budget amendment is requested to transfer $410,000 of Transportation Fund Balance funds to CP 26-67 and $80,000 Local City share for a total budget increase of $490,000 to complete the project.
RECOMMENDATION
recommendation
Staff recommends authorization to award the bid and execution of a construction contract with Park Construction Company, in the amount of $7,033,172.20, and recommends authorization for executing the third contract amendment with Bolton & Menk, Inc., in the amount of $38,050.00, increasing the total contract amount not to exceed $1,000,416.00 for CP 26-67.
Staff further recommends amending the adopted 2025 Transportation CIP Budget for CP 26-67 by transferring $410,000 of Transportation Fund Balance funds to CP 26-67, and $80,000 Local City share for a total budget increase of $490,000.
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EXPLANATION OF FISCAL/FTE IMPACTS
The 2025 Transportation Capital Improvement Program has a total adopted budget of $8,690,000 for consultant services, land acquisition, and construction costs for CP 26-67. Land acquisition costs may finalize significantly less than what was budgeted in the CIP, to which those funds will be utilized for the construction phase. A budget amendment in the amount of $490,000 is necessary to proceed with construction in the spring of 2025.
Sufficient funds are available in the Transportation Fund Balance. A budget amendment is requested to transfer $410,000 of Transportation Fund Balance funds to CP 26-67, and $80,000 Local City share for a total budget increase of $490,000. The cost share for the project is 85 percent County, 15 percent City.
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, to provide a safe and efficient transportation system, Dakota County (County) is proceeding with County Project (CP) 26-67, the reconstruction of County State Aid Highway (CSAH) 26 from Trunk Highway (TH) 13 to CSAH 31 and a lane reduction of CSAH 26 from CSAH 31 to I-35E in the City of Eagan; and
WHEREAS, CP 26-67 includes a trail as part of the School Area Safety Assessment recommendations for Pilot Knob STEM School from TH 13 to CSAH 31; and
WHEREAS, the County is the lead agency for the Project; and
WHEREAS, the County utilized public engagement for this project, including public open houses, project websites, and project mailings; and
WHEREAS, bids for construction were received and tabulated on February 12, 2025 with Park Construction Company providing a bid of $7,033,172.20 as the lowest responsive and responsible bid received; and
WHEREAS, as required by the Federal Highway Administration (FHWA), award of the project cannot take place prior to the Minnesota Department of Transportation (MnDOT) Office of Civil Rights (OCR) clearance of Disadvantaged Business Enterprise (DBE); and
WHEREAS, the execution of a construction contract with Park Construction Company will not be fully executed until MnDOT OCR clearance is received; and
WHEREAS, staff recommends awarding the bid to Park Construction Company after clearances from the MnDOT OCR are received, subject to form by the County Attorney’s Office; and
WHEREAS, by Resolution No. 22-043 (January 18, 2022), the County executed contract with Bolton & Menk, Inc., in an amount of $381,381 for preliminary engineering of CP 26-66 and CP 26-67 corridor improvements; and
WHEREAS, by Resolution No. 23-426 (September 26, 2023), the County Board authorized the first contract amendment with Bolton & Menk, Inc., to consolidate both projects (CP 26-66 and CP 26-67) under CP 26-67 and add additional engineering design consulting services to the contract in an amount of $488,985; and
WHEREAS, by Resolution No. 24-386 (July 30, 2024), the County Board authorized a second contract amendment in the amount of $92,000 due to unanticipated changes related to new environmental coordination needs, complexities in public engagement and roadway design modifications needed to minimize property owner impacts, bringing the current total contract value to $962,366; and
WHEREAS, during the final design process, the project team encountered the need to address changes to the design outside of the anticipated scope, to which a third contract amendment for engineering design services is necessary to complete the project; and
WHEREAS, staff negotiated an amount of $38,050 with Bolton & Menk, Inc., for a third contract amendment to complete final design for CP 26-67; and
WHEREAS, the County Engineer recommends the execution of a third contract amendment with Bolton & Menk, Inc., for design engineering services for CP 26-67 in an amount of $38,050 for a new contract amount not to exceed $1,000,416.00 including reimbursable items; and
WHEREAS, a budget amendment to the 2025 adopted Transportation CIP Budget is necessary to establish the budget for CP 26-67 to proceed with construction in the spring of 2025; and
WHEREAS, staff recommends a budget amendment to transfer $410,000 of Transportation Fund Balance funds to CP 26-67, and $80,000 Local City share for a total budget increase of $490,000 to allow for the completion of the project.
NOW, THEREFORE BE IT RESOLVED, That the Dakota County Board of Commissioners hereby awards the bid to and authorizes the Physical Development Director to execute a contract with Park Construction Company for County Project 26-67 in the amount of $7,033,172.20 based on their low bid, subject to approval by the County Attorney's Office as to form; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Physical Development Director to execute a third contract amendment with Bolton & Menk, Inc., to perform additional engineering consulting services for County Project 26-67 in an amount of $38,050.00, resulting in a total amended contract not to exceed $1,000,416.00, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the adopted 2025 Transportation Capital Improvement Program Budget is hereby amended as follows:
Expense
County Project 26-67 $490,000
Total Expense $490,000
Revenue
Dakota County Transportation Fund Balance $410,000
City’s Local Share $ 80,000
Total Revenue $490,000
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PREVIOUS BOARD ACTION
20-154; 03/24/20
22-043; 01/18/22
23-426; 09/26/23
23-491; 10/24/23
24-386; 07/30/24
ATTACHMENTS
Attachment: Project Location Map
Attachment: Amendment Memorandum #3
BOARD GOALS
☒ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Laberee
Author: Hassan Hussein