DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Amend Contract With Valley Paving, Inc., And Amend 2025 Capital Improvement Program Budget For 2025 Preservation Of Paved Highway Surface Project
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PURPOSE/ACTION REQUESTED
Authorize a contract amendment with Valley Paving, Inc. for additional contract costs on the 2025 Preservation of Paved Highway Surface Project and amend the 2025 Capital Improvement Program (CIP) Budget.
SUMMARY
To promote a safe and efficient transportation system, Dakota County proceeded with the 2025 Preservation of Paved Highway Surface Project (Attachment: Location Map). The 2025 preservation work included resurfacing of County roads. The work began in June and will continue through October.
By Resolution No. 25-053 (January 21, 2025), the County Board authorized the County Manager or designee to award the Preservation of Paved Highway Surface Project to the lowest responsible bidder. The project was awarded to Valley Paving, Inc., in the amount of $5,576,946.12. Note that the contract amount was 16.5 percent under the Engineer’s estimate.
Construction costs have increased by $349,803.44 or 6.3 percent due to a change in the design and higher quantities of pavement resurfacing. A list of item overruns is summarized in Attachment: Cost Increase Summary.
On County Project (CP) 11-32, MnDOT requested a change to the design of the pedestrian facility way to meet Americans with Disabilities Act (ADA) requirements for work within their right of way. County staff agreed to the design changes, which increased costs by an additional $225,823.13.
On County Project (CP) 91-34, there was an increase in milling and pavement quantities. The increased project cost due to the increase in quantities is $123,980.31.
RECOMMENDATION
recommendation
Staff recommends authorizing a contract amendment in the amount of $349,803.44 for a revised contract amount of $5,926,749.56 and a budget amendment in the amount of $349,803.44.
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EXPLANATION OF FISCAL/FTE IMPACTS
The 2025 CIP has a total adopted budget of $8,200,000 for the Preservation of Paved Highway Surface Project. A budget amendment in the amount of $349,803.44 is requested for the increased construction cost and design change. The budget amendment will use remaining dollars in the 2025 CIP budget for Preservation of Paved Highway Surface and allocate it to the specific projects.
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, to promote a safe and efficient transportation system, Dakota County proceeded with the 2025 Preservation of Paved Highway Surface project; and
WHEREAS, the 2025 preservation work included resurfacing of county roads; and
WHEREAS, the work began in June 2025 and will continue through October 2025; and
WHEREAS, by Resolution No. 25-053 (January 21, 2025), the project was awarded to Valley Paving, Inc., in the amount of $5,576,946.12; and
WHEREAS, construction costs have increased by $349,803.44 or 6.3 percent due to a design change and higher quantities of pavement resurfacing; and
WHEREAS, staff recommends authorizing a contract amendment in the amount of $349,803.44 for a revised contract amount of $5,926,749.56, and a budget amendment of $349,803.44.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby approves the contract amendment and authorizes the Physical Development Director to execute a contract amendment with Valley Paving, Inc., for the 2025 Preservation of Paved Highway Surface project, in the amount of $349,803.44, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the 2025 Capital Improvement Program Adopted Budget is hereby amended as follows:
Revenue
CP 11-32 - TAA $225,824
CP 91-34 - TAA $123,981
2025 Paved Highway Surface - TAA ($349,805)
Total Revenue $0
Expense
CP 11-32 $225,824
CP 91-34 $123,981
2025 Paved Highway Surface Set-aside ($349,805)
Total Expense $0
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PREVIOUS BOARD ACTION
25-053; 1/21/25
ATTACHMENTS
Attachment: Project Location Map
Attachment: Cost Increase Summary
BOARD GOALS
☒ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Laberee
Author: Kevin Krech