DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Second Contract Amendment With Kimley-Horn And Associates, Inc., To Provide Final Design Engineering Services And Amend 2025 Capital Improvement Program Budget For Improvements To County State Aid Highway 42 In City Of Apple Valley, County Project 42-163
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PURPOSE/ACTION REQUESTED
• Authorize the execution of a second contract amendment with Kimley-Horn and Associates, Inc. (Kimley-Horn) for additions and changes to final design engineering services for County Project (CP) 42-163.
• Amend the 2025 Capital Improvement Program (CIP) budget based on engineering design and related services.
SUMMARY
To provide a safe and efficient transportation system, Dakota County is proceeding with the design of CP 42-163, the reconstruction of County State Aid Highway (CSAH) 42 along a one-mile segment in the city of Apple Valley from Redwood Drive to 147th Street and vicinity (Attachment: Project Location Map). By Resolution No. 23-209 (May 23, 2023), the County Board authorized the project's preliminary and final design contract with consultant Kimley-Horn for an amount not to exceed $959,920. By Resolution No. 25-048 (January 21, 2025), the County Board authorized the first contract amendment, adding $619,285, for a total amended contract value of $1,579,205 (Contract Number DCA20482).
In 2022, Dakota County applied for and received a federal grant of $6,540,000 to support the project's construction; this was based on a conceptual early estimate of a total construction cost of approximately $8,200,000, with the scope then assuming minimal reconstruction. Preliminary engineering work completed under the Kimley-Horn contract in 2024 confirmed the need for full reconstruction at an estimated construction cost of approximately $17,300,000. Amendment No. 1 addressed scope changes based on added services in the preliminary engineering design stages, while additional services have now been identified for final engineering design. The estimated project construction cost, based on 60 percent engineering design, is now $18,970,000. Staff has worked with the consultant on complex final engineering and right-of-way details and negotiated additional out-of-scope and expanded services by task totaling $598,485, resulting in a total amended contract value of $2,177,690. This total amended contract value for preliminary and final engineering design remains within industry norms to complete all preliminary and final engineering design services, with related services including public engagement, based on current construction estimates.
Additional out-of-scope professional services for final engineering and to support County and City of Apple Valley (City) right of way work on more than 80 parcels were tracked and documented in detail by the consultant (Attachment: Kimley-Horn Amendment Letter). The Amendment No. 2 work by task includes the following (with subtotals):
• Additional project management and support services for eight months, with the need to coordinate numerous technical details for engineering design elements led by both the County and City ($39,570).
• Expanded survey work to support needed stormwater drainage and pond modifications in Apple Grove Park. This includes coordination of services to physically locate and survey points around the major Northern Natural Gas main crossing under the CSAH 42 roadway and a topographic survey needed to support final design plans in that area for the proposed roadway, stormwater, and utility designs ($9,960).
• Additional work on preliminary design plans with emphasis on impacts to business properties around Garden View Drive and at residential properties near 147th Street and Elm Drive. This includes coordination of design with right-of-way impacts for both the CSAH 42 project and the City’s coordinated water and sewer project ($25,340).
• Geotechnical conditions and environmental sampling requiring special field investigations, including County staff teamwork on owner communications for required environmental drilling and sampling at the Garden View Drive corner properties. This task also includes additional geotechnical investigations along CSAH 42 next to Redwood Park, where the roadway grade will be raised on fill with a retaining wall to be modified ($95,200).
• Coordination with the private and city utilities, including the anticipated replacement of major power line structures owned by Great River Energy ($45,165).
• Expansion of scope for detailed engineering, including grading for the Redwood Park area, structure design for walls, and integration of City lighting design plans ($256,730).
• Right of way mapping for 88 parcels, including coordination with the City’s utility project and added easements. This was not previously scoped ($95,260).
• Completion of environmental documentation based on findings through the Minnesota Department of Transportation Cultural Resources Unit, which now includes the recommended establishment of the large-area Orrin Thompson Apple Valley Historic District (District). The District’s significance is based on the area’s status as one of the largest communities designed by Orrin Thompson, demonstrating the early development of Apple Valley, postwar housing types, and the period’s neighborhood design. The District was identified as eligible for listing under Section 106 of the National Historic Preservation Act; however, no adverse impact is anticipated based on state-agency reviews of the CSAH 42 project. The additional work based on the District includes: preparation of documents for approval of easements required at most or all of the properties; notification and facilitation of a comment period and requests for concurrence with emphasis on Redwood Park; and expanded work to confirm Section 4(f) De Minimis Determinations ($31,260).
The project’s professional services, outside of the consultant contract, include work for real estate title research, appraisals, cultural resources, and specialty underground survey, with an estimated total of $262,310 for all such services. County staff has worked with the City to estimate project cost shares in accordance with adopted Dakota County Transportation cost participation policies.
The County’s team continues to work on specific cost components and joint powers agreement cost-share formulas, including the City’s unique responsibilities for right of way costs based on the concurrent water and sewer utility project.
RECOMMENDATION
recommendation
Staff recommends authorizing the second contract amendment with Kimley-Horn, which would increase the total from $1,579,205 to $2,177,690 (an increase of $598,485) to include added scope and services through final design engineering for Contract Number DCA20482 for CP 42-163.
Staff further recommends amending the 2025 CIP budget based Amendments 1, 2 and additional services to be required, under seven contracts, including real estate title research, appraisals, cultural resources, and specialty survey work.
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EXPLANATION OF FISCAL/FTE IMPACTS
The cost share for CP 42-163 will follow the County’s Cost Share Policy including an 85/15 percent County/City share for roadway modernization and other policies applicable to the City’s design elements and preferences, including water and sewer utility work and aesthetics. To account for Amendments 1 ($619,285) and 2 ($598,485), plus the other supporting contract services ($262,310), the project now requires a 2025 CIP budget amendment increase of $1,480,080, for a design services budget total of $2,440,000. The funding sources will include Transportation Sales Tax and City Funds.
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, to provide a safe and efficient transportation system, Dakota County is proceeding with County Project (CP) 42-163; and
WHEREAS, CP 42-163 is the preliminary and final engineering design of improvements to County State Aid Highway 42 in the city of Apple Valley from Redwood Drive to 147th Street and vicinity; and
WHEREAS, by Resolution No. 23-602 (December 19, 2023), the Dakota County Board of Commissioners authorized the execution of a design services contract with consultant Kimley-Horn and Associates, Inc. (Kimley-Horn) to perform preliminary and final design engineering services for a total contract amount not to exceed $959,920; and
WHEREAS, the scope and scale of CP 42-163 have increased based on the need for total reconstruction, including significant underground work and coordination of the County’s roadway project with the City of Apple Valley’s (City) additional elements, including water and sewer utility work and anticipated City lighting preferences, to be led by the City; and
WHEREAS, by Resolution No. 25-048 (January 21, 2025), the Dakota County Board of Commissioners authorized the execution of Contract Amendment No. 1 for additional preliminary engineering services to be performed by Kimley-Horn, adding $619,285 to the contract, resulting in a contract amount not to exceed $1,579,205; and
WHEREAS, the cost of the additional out-of-scope and expanded work tasks, primarily for expanded final engineering design services, significant support to right of way work, and environmental professional services specified for Amendment No. 2 as work to be performed by Kimley-Horn is $598,485, resulting in a new contract amount not to exceed $2,177,690; and
WHEREAS, the County Engineer recommends executing the second contract amendment with Kimley-Horn for Contract Number DCA20482 for preliminary and final engineering of CP 42-163; and
WHEREAS, a project budget amendment is now needed to reconcile changes to the consulting services portion of the current 2025 project budget, including Contract Number DCA20482 Amendments 1 and 2, plus $262,310 for services under seven contracts in real estate title research, appraisals, cultural resources, and specialty survey.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Physical Development Director to amend the not-to-exceed contract value of $1,579,205 for Contract Number DCA20482 with Kimley-Horn and Associates, Inc., for County Project 42-163 to a total contract amount not to exceed $2,177,690, including reimbursables; and
BE IT FURTHER RESOLVED, That the 2025 Transportation Capital Improvement Program is hereby amended as follows:
Expense
Project 42-163 $1,480,080
Total Expense $1,480,080
Revenue
City of Apple Valley $ 222,012
Transportation Sales Tax $1,258,068
Total Revenue $1,480,080
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PREVIOUS BOARD ACTION
23-209; 5/23/23
25-048; 1/21/25
ATTACHMENTS
Attachment: Project Location Map
Attachment: Kimley-Horn Amendment Letter
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: Doug Abere