DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Second Contract Amendment With KLJ Engineering, LLC, For Two Roundabouts On County State Aid Highway 86 (280th Street W), County Projects 86-43 And 86-44
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PURPOSE/ACTION REQUESTED
Authorize the execution of a second contract amendment with KLJ Engineering, LLC for preliminary and final design engineering for County Project (CP) 86-043 and CP 86-044.
SUMMARY
To provide a safe and efficient transportation system, Dakota County is proceeding with CP 86-43 and CP 86-44 to construct rural single-lane roundabouts. County State Aid Highway (CSAH) 86 (280th Street W) is an undivided two-lane rural roadway designated as a Tier 2 truck route, providing a regional connection between Trunk Highway (TH) 52 and Interstate 35 in Scott County.
County Projects 86-43 and 86-44 will reconstruct the two two-way stop-controlled intersections along CSAH 86 at TH 3 and TH 56 to rural single-lane roundabouts within Castle Rock, Waterford, Randolph, and Hampton Townships. Construction is scheduled for 2026.
The intersections are listed as priority locations in the adopted Dakota County 2040 Transportation Plan. In 2022, staff applied for and received Highway Safety Improvement Program (HSIP) federal dollars for reconstruction.
By Resolution No. 24-024 (January 2, 2024), the Board authorized a design services contract (DCA21201) with KLJ Engineering, LLC for preliminary and final design ($541,313.30).
By Resolution No. 25-380 (August 12, 2025), the Board authorized the first amendment to the contract for additional design services ($232,221), bringing the total to $773,534.30 (DCA21201.1).
The project scope has continued to evolve, requiring additional professional design services not included in the original or first amendment scope. Staff requested KLJ Engineering, LLC provide a quote for these out-of-scope tasks, which are required to complete the project for utilization of federal funding. The proposed second amendment includes:
• Agency coordination and submittals: Minnesota Department of Transportation (MnDOT) design revisions, coordination, funding calculations, and multiple design submittals due to MnDOT’s requirements ($36,940).
• Field survey data: Survey datum revisions ($19,896).
• Roadway engineering and project management: Additional traffic control plan sheets, utility coordination for potential relocation of Xcel Energy infrastructure, streetlight design, and coordination to help facilitate the power company territory swap between Xcel Energy and Dakota Electric ($53,112).
• Construction administration assistance: Considering the design complexities and in preparation to mitigate delays to resolve construction issues, the County is allocating additional hours to the consultant budget to ensure their staff’s availability during the construction phase as needed ($26,256).
• Environmental Construction Monitoring: Environmental site assessment identified the need to retain construction monitoring consultant services to oversee, field screen, and perform the necessary soil sampling during project activities within the areas of known or suspected contamination to verify that all impacted media is property managed during construction ($22,638.40).
With this amendment request, the consultant updated its hourly billing rates for 2026 based on internal labor cost adjustments consistent with broader trends in the consulting industry. Because the contract compensates work on an hourly rate basis and this amendment adds out-of-scope services, the updated rates apply only to the additional work included in this amendment. The rate updates do not modify previously authorized amounts or change the approved scope of work.
The original contract amount with the first amendment is $773,534.30. The second amendment will add $158,842.40 to the contract. The new total contract value will be $932,376.70 for both projects. The added value will be equally split between the two projects, CP 86-043 and CP 86-044, as below.
CP 86-043: $79,421.20
CP 86-044: $79,421.20
The 2026 Transportation Capital Improvement Program (CIP) approved budget has sufficient funds for this amendment.
RECOMMENDATION
recommendation
Staff recommends authorizing the second contract amendment with KLJ Engineering, LLC for additional design services.
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EXPLANATION OF FISCAL/FTE IMPACTS
The Transportation Capital Improvement Program includes $3,979,821 for CP 86-043 and $7,168,139 for CP 86-044. There are sufficient funds available for the contract amendment.
CP 86-043 Roundabout at TH 56
|
Funding Source |
Total Approved Budget |
Total Available Budget |
|
CSAH (County State Aid Highway) |
$1,061,181 |
$820,531 |
|
State Funding |
$350,000 |
$109,351 |
|
Federal Funding |
$2,568,640 |
$2,568,640 |
|
Total |
$3,979,821 |
$3,498,522 |
CP 86-044 Roundabout at TH 3
|
Funding SourceTotal Approved BudgetTotal Available Budget |
|
|
|
Transportation Fund Balance |
$10,798 |
$0 |
|
CSAH (County State Aid Highway) |
$2,463,901 |
$2,182,787 |
|
State Funding |
$1,687,000 |
$2,884,264 |
|
Federal Funding |
$3,006,440 |
$1,395,088 |
|
Total |
$7,168,139 |
$6,462,139 |
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, Dakota County is proceeding with County Project (CP) 86-43 and CP 86-44 to reconstruct intersections on County State Aid Highway 86 at Trunk Highway (TH) 3 and TH 56 into rural single-lane roundabouts; and
WHEREAS, the original contract with KLJ Engineering, LLC was authorized for $541,313.30 (DCA21201), and the first amendment added $232,221 for a total of $773,534.30 (DCA21201.1); and
WHEREAS, the second amendment for additional out-of-scope work is required to complete the design, including design revisions and agency coordination, and assistance with construction administration for environmental monitoring and soil sampling within the areas of known contamination at a cost of $158,843.40 which will bring the total contract value to $932,376.70; and
WHEREAS, the second amendment amount will be equally split between the two projects as below:
County Project 86-043: $79,421.20
County Project 86-044: $79,421.20
; and
WHEREAS, sufficient funds exist in the 2026 Transportation Capital Improvement Program Adopted Budget.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Transportation Department Director, or their designee, to execute a second amendment to the contract with KLJ Engineering, LLC, increasing the contract amount by $158,842.40 resulting in a new contract total not to exceed $932,376.70, subject to approval by the County Attorney’s Office as to form.
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PREVIOUS BOARD ACTION
24-024; 1/2/24
24-304; 6/4/24
25-380; 8/12/25
ATTACHMENTS
Attachment: Location Map
Attachment: KLJ Engineering, LLC quote for Amendment No. 2
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: Saeed Kanwar