DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Award Bid And Execute Contract With Eureka Construction Inc., Amend Reimbursement And Relocation Agreement With Northern States Power Company; And Execute Agreement With Minnesota Department Of Transportation For Federal Participation In Advanced Construction (117th Street East), County Project 32-65
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PURPOSE/ACTION REQUESTED
• Award the construction contract for County Project (CP) 32-65 to Eureka Construction, Inc.
• Amend the reimbursement and relocation agreement with Northern States Power Company dba Xcel Energy, originally approved by Resolution No. 25-214 (April 22, 2025), to increase the not-to-exceed amount by $10,000.
• Authorize execution of an agreement with the Minnesota Department of Transportation (MnDOT) for federal participation in advanced construction of CP 32-65.
SUMMARY
Dakota County, in partnership with the City of Inver Grove Heights, is proceeding with CP 32-65 to reconstruct 117th Street East from County State Aid Highway (CSAH) 71 to the Trunk Highway (TH) 52/117th Street Interchange.
Bid Opening and Contract Award
Bids were opened on December 4, 2025. The engineer’s estimate was $19,000,016.20. The low bid from Eureka Construction, Inc. was $14,599,448.50, approximately $4.4 million below the estimate. The bid is internally consistent and reflects strategic pricing advantages.
Bid Results:
Bidder Bid Amount
Eureka Construction, Inc. $14,599,448.50
Park Construction Company $15,184,365.00
Meyer Contracting Inc. $15,966,384.70
McNamara Contracting $16,235,675.45
S.M. Hentges & Sons, Inc. $17,949,031.03
Shafer Contracting Co., Inc. $18,826,889.74
Engineer’s Estimate $19,000,016.20
Background and Coordination
County Project 32 65 has been developed in close coordination with the City of Inver Grove Heights, the Minnesota Department of Transportation (MnDOT), and utility partners. By Resolution No. 24 072 (February 6, 2024), the County executed a Joint Powers Agreement with the City, which included authorization for the City to apply $5,000,000 in State of Minnesota Local Roads Improvement Program (LRIP) bond funds 100 percent to City costs, subject to approval by the County Attorney’s Office as to form. By Resolution No. 24 625 (December 17, 2024), the County executed a Cooperative Construction Agreement (No. 1057369) with MnDOT for improvements at the TH 52/117th Street interchange. Also, by Resolution No. 24 530 (October 29, 2024), the County accepted State bonding funds administered by MnDOT for eligible project costs. A reimbursement agreement with Xcel Energy for preliminary engineering was authorized by Resolution No. 23 044 (January 24, 2023), and a relocation agreement was subsequently approved under Resolution No. 25 214 (April 22, 2025). The current action represents the first amendment to that relocation agreement, increasing the not to exceed amount by $10,000 to reflect final coordination and material cost adjustments.
Cost Participation
Consistent with County policy, the City of Inver Grove Heights will contribute approximately $6.5 million toward the project, including 15 percent of the cost difference between a standard collector and the enhanced 10-ton design. Dakota County will contribute approximately $10.6 million, with an additional $8 million anticipated from the Metropolitan Highway Freight Program.
Amendment to Xcel Energy Agreement
An amendment is needed to increase the not-to-exceed amount by $10,000, bringing the total to $1,216,000. The increase reflects inflation and material cost adjustments identified during final coordination with Xcel Energy.
MnDOT Federal Participation Agreement
An agreement with MnDOT is required to secure federal reimbursement for eligible construction costs.
RECOMMENDATION
recommendation
Staff recommends approval of the following actions:
1. Award the construction contract for CP 32-65 to Eureka Construction, Inc.
2. Amend the reimbursement and relocation agreement with Xcel Energy to increase the not-to-exceed amount by $10,000.
3. Execute the federal participation agreement with MnDOT for advanced construction of CP 32-65.
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EXPLANATION OF FISCAL/FTE IMPACTS
The total project budget for CP 32-65 is $23,038,262.25, supported by a combination of Transportation Sales and Use Tax, Transportation Capital Improvement Program, federal funds, and City contributions. Sufficient funds remain available to support the construction contract with Eureka Construction, the amendment to the Xcel Energy agreement, and execution of the MnDOT federal participation agreement.
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, to provide a safe and efficient transportation system, Dakota County and the City of Inver Grove Heights are proceeding with County Project (CP) 32-65 to reconstruct 117th Street East from County State Aid Highway (CSAH) 71 (Rich Valley Boulevard) to the Trunk Highway (TH) 52/117th Street Interchange; and
WHEREAS, the project includes construction of a two-lane, median-divided 10-ton roadway to improve mobility, pavement condition, and freight movement along a Tier 1 regional truck corridor; and
WHEREAS, bids were opened on December 4, 2025, and Eureka Construction, Inc., submitted the lowest responsible bid of $14,599,448.50, approximately $4.4 million below the engineer’s estimate of $19,000,016.20; and
WHEREAS, the bid is internally consistent and reflects strategic pricing advantages in several major items; and
WHEREAS, the City of Inver Grove Heights will contribute approximately $6.5 million toward the project in accordance with County cost participation policies, and the project is anticipated to receive $8 million in federal funding through the Metropolitan Highway Freight Program; and
WHEREAS, by Resolution No. 25-214 (April 22, 2025) authorized a reimbursement and relocation agreement with Northern States Power Company dba Xcel Energy in an amount not to exceed $1,206,000; and
WHEREAS, based on final coordination and scope adjustments, an amendment is needed to increase the not-to-exceed amount by $10,000, for a revised total of $1,216,000; and
WHEREAS, to receive federal reimbursement for eligible construction costs, Dakota County must enter into an agreement with the Minnesota Department of Transportation for federal participation in advanced construction.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Physical Development Director to award the construction contract for County Project 32-65 to Eureka Construction, Inc., in the amount of $14,599,448.50, 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 an amendment to the reimbursement and relocation agreement with Northern States Power Company dba Xcel Energy to increase the not-to-exceed amount by $10,000, for a revised total of $1,216,000, 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 an agreement with the Minnesota Department of Transportation for federal participation in advanced construction of County Project 32-65, subject to approval by the County Attorney’s Office as to form.
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PREVIOUS BOARD ACTION
23-044; 1/24/23
24-072; 2/6/24
24-530; 10/29/24
24-625; 12/17/24
25-214; 4/22/25
ATTACHMENTS
Attachment: Location Map
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: John Sass