DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Approve Contract Amendment With Park Construction Company And Amend 2026 Transportation Capital Improvement Plan Budget For County State Aid Highway 26 (Lone Oak Road) Roadway Improvements In City Of Eagan, County Project 26-67
end
PURPOSE/ACTION REQUESTED
• Authorize a contract amendment with Park Construction Company for additional contract costs on County Project (CP) 26-67.
• Authorize the amendment of the adopted 2026 Transportation Capital Improvement Program (CIP) Budget.
SUMMARY
To provide a safe and efficient transportation system Dakota County proceeded with CP 26-67 in the City of Eagan. County Project 26-67 included improvements to County State Aid Highway (CSAH) 26 (Lone Oak Road) from Trunk Highway (TH) 13 to I-35E in Eagan (Attachment: Location Map). The corridor segment between TH 13 and CSAH 31 (Pilot Knob Road) included 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 for the segment from CSAH 31 to I-35E. Construction began in April 2025 and is essentially complete with only minor items remaining.
The County Board Awarded CP 26-67 to Park Construction Company by Resolution No. 25-106 on February 18, 2025, in the amount of $7,033,172.20. Note the Engineer’s estimate for the reconstruction was $8,271,430, nearly $1.25 million over the low bid.
Construction costs have increased by $498,165 or 7.1 percent due primarily to increased retaining wall costs. Poor soils were discovered during construction of the retaining wall requiring additional excavation and a larger wall. Watermain relocation was also required as part of the redesigned wall. Increased costs are summarized as follows:
Item Amount
Redesigned wall $382,200
Additional watermain work $ 54,200
Bituminous quantity overrun $ 70,000
Other quantity overruns and underruns $ (8,235)
Total $ 498,165
A more detailed list of Contract changes is summarized in Attachment: Cost Increase Summary.
RECOMMENDATION
recommendation
Staff recommends authorizing a contract amendment with Park Construction Company in the amount of $498,165 for a revised contract amount of $7,531,337.20. A budget amendment is also recommended from the 2026 Transportation Capital Improvement Program Budget.
end
EXPLANATION OF FISCAL/FTE IMPACTS
The Transportation Capital Improvement Program Budget has a budget for CP 26-67 of $9,180,000 for consulting services, land acquisition, and construction costs. Funds have been fully utilized and a budget amendment in the amount of $498,165 is requested for the additional construction contract costs.
An amendment to the project budget is necessary to account for the $498,165 of increased construction costs. The City of Eagan is responsible for approximately $18,000 of the increase. The amended budget for CP 26-67 will be $9,678,165 if the amendment is approved.
Current Budget
CP 26-67 CSAH 26 (Lone Oak Road) from Trunk Highway 13 to I-35E
|
Funding Source |
Total Budget |
Available Budget |
|
CSAH |
$3,357,500 |
$0 |
|
City of Eagan |
$672,500 |
$0 |
|
Federal |
$4,740,000 |
$0 |
|
Transportation Fund Balance |
$410,000 |
$50,425 |
|
Total |
$9,180,000 |
$50,425 |
Budget - After Proposed Amendment
CP 26-67 CSAH 26 (Lone Oak Road) from Trunk Highway 13 to I-35E
|
Funding Source |
Total Budget |
Available Budget |
|
CSAH |
$3,357,500 |
$480,165 |
|
City of Eagan |
$690,500 |
$18,000 |
|
Federal |
$4,740,000 |
$0 |
|
Transportation Fund Balance |
$890,165 |
$50,425 |
|
Total |
$9,678,165 |
$548,590 |
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, to provide a safe and efficient transportation system, Dakota County (County) proceeded 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 Board awarded CP 26-67 to Park Construction Company by Resolution No. 25-106 (February 18, 2025), in the amount of $7,033,172; and
WHEREAS, construction costs have increased by $498,165 or 7.1 percent due primarily to increased retaining wall costs; and
WHEREAS, increased costs are summarized as follows:
Item Amount
Redesigned wall $382,200
Additional watermain work $ 54,200
Bituminous quantity overrun $ 70,000
Other quantity overruns and underruns $ (8,235)
Total $ 498,165
; and
WHEREAS, staff recommends authorizing a contract amendment with Park Construction Company in the amount of $498,165 for a revised contract amount of $7,531,337.20; and
WHEREAS, staff recommends a budget amendment to the 2026 adopted Transportation Capital Improvement Program Budget to account for the increased costs.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby approves the Contract Amendment and authorizes the Transportation Director to execute a contract amendment with Park Construction Company for the construction of County Project 26-67 in an amount of $498,165.00, resulting in a total amended contract not to exceed $7,531,337.20, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the adopted 2026 Transportation Capital Improvement Program Budget is hereby amended as follows:
Expense
County Project 26-67 $498,165
Total Expense $498,165
Revenue
State Aid $480,165
City of Eagan $ 18,000
Total Revenue $498,165