DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Second Contract Amendment With SRF Consulting Group, Inc., For Design Of Interchange Improvements At County State Aid Highway 50 And Interstate 35 In Lakeville, County Project 50-33
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PURPOSE/ACTION REQUESTED
Authorize the execution of a second contract amendment with SRF Consulting Group, Inc., (SRF) for additions and changes to design and project development services for interchange improvements at the junction of County State Aid Highway (CSAH) 50, CSAH 5, and Interstate 35 (I-35), County Project (CP) 50-33 in Lakeville.
SUMMARY
To provide a safe and efficient transportation system, staff proceeded with work on CP 50-33 under Contract No. DCA21560, authorized by Resolution No. 24-204 (April 23, 2024). The project is consistent with the adopted Capital Improvement Program and project development needs at the junction of I-35 and CSAH 50/5 in Lakeville (Attachment: Project Location Map). County Project 50-33 addresses roadway safety and mobility needs at the major interchange, including replacement of State, County, and City roadway infrastructure and I-35 bridges.
By Resolution No. 25-308 (June 24, 2025), the County Board authorized the first contract amendment, adding $344,030, for a total amended contract value not to exceed $1,810,262 for Contract No. DCA21560. As noted with the first amendment, work in 2025 confirmed the recommended Diverging Diamond Interchange design based on Minnesota Department of Transportation (MnDOT) technical reviews. The project has been discussed and coordinated with, the public, business leaders, elected officials, and many adjacent property stakeholders. County staff, with support from SRF, has also continued to address questions about the project’s construction scope and impacts, including traffic impacts and the management of traffic during construction.
County Project 50-33 is a large multi-agency transportation project, with an estimated construction value of $66 million. As new questions and challenges have been identified, SRF has been responsive and has provided estimates of scope changes to Dakota County’s project manager before initiating additional work. Staff has recently worked with the consultant, MnDOT, and City representatives to address detailed questions on the traffic impacts during construction and to further refine preliminary design features. The public-agency team, with SRF’s assistance, also continued to work with business property stakeholders to confirm and refine the many design elements that will comprise the full project. For example, SRF facilitated property owner meetings as planned to receive required input on proposed noise walls; technical specialists have thus tracked the related input and design details to refine the scope of the project and design recommendations. Dakota County Transportation staff is also guiding the scope adjustments to reach a logical conclusion for the SRF preliminary design contract, with final engineering design to be addressed in a separate competitive contract selection planned for mid-2026. Based on such factors, staff and SRF have negotiated additional out-of-scope and expanded services by task totaling $166,176, resulting in a total amended contract value of $1,976,438. This total amended contract value is within the expected range for preliminary engineering services based on the estimated project construction value.
The professional services not anticipated within the original scope or now changed were documented in detail by the consultant (Attachment: SRF Amendment Letter). Amendment No. 2 addresses changes to seven of 16 tasks, with nine tasks unchanged. The additional work by task includes the following (with subtotals):
• Project management and interagency coordination services to facilitate complete preliminary design approvals and a logical conclusion for the contract (+$23,406.57).
• Scope for traffic studies and modeling to refine the operations of the freeway interchange and the local network, including evaluation of pedestrian crossing options around Kenrick Ave and 173rd St, lane configurations for southbound CSAH 5 from Klamath Trail to Kenyon Ave, and no-turn-on-red signal operations in the interchange (+$20,115.86).
• Services included with the planned amendment to further address stormwater management details and coordinate the preliminary drainage design with the City of Lakeville, given relatively low elevations and wet conditions near the interchange (+$26,373.60).
• Efforts to evaluate four new segments of potentially feasible noise walls and to coordinate formal input from property owners, now increasing the total effort to six possible wall segments. This task will conclude with specific recommendations based on owner inputs and justifications for the noise walls (+$46,482.47).
• Preliminary engineering design work to address refinement of the interchange layout and lane capacity along the County roadway, including lane configuration and checking for preliminary overhead sign locations (+$12,551.44).
• Scope to complete the federal grant funding applications under the 2026 Better Utilizing Investments to Leverage Development (BUILD) program and under the planned 2026 Regional Solicitation federal funding program (+$20,271.71).
• Scope and meetings/coordination to complete and coordinate the Transportation Management Plan, addressing the complex traffic impacts and mitigations needed to best prepare for construction of the interchange (+$16,975.01).
RECOMMENDATION
recommendation
Staff recommends authorizing the second contract amendment with SRF, which would increase the not-to-exceed amount from $1,810,262 to $1,976,438 (an increase of $166,176) to address additions to the scope and services for preliminary engineering for Contract Number DCA21560.
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EXPLANATION OF FISCAL/FTE IMPACTS
The local cost share for CP 50-33 consulting engineering services is 85 percent County and 15 percent City of Lakeville and will be applied to any remaining contract amounts not reimbursed by grant funds. The current Dakota County Contract No. DCA21560 is supported by a previously approved MnDOT Local Road Improvement Program Grant Agreement (Contract No. DCA21726) providing up to $1,673,000 toward the amended SRF contract. With the proposed Amendment No. 2, the not-to-exceed contract value total will be $1,976,438, resulting in a net estimated cost of $303,438 to be funded using County and City capital budgets. Sufficient funds are available to continue the preliminary engineering work and to begin final engineering, including a 2023 federal appropriation of $5,040,000 planned to support final design engineering (20% matching funds required).
Construction of the interchange project is now planned for 2029-2030 and is estimated at $66 million. Anticipated construction funding includes a state Trunk Highway appropriation of $40.8 million plus $7.0 million in federal funds under the Minnesota Highway Freight Program, leaving $18.2 million in construction costs from other funding sources. The approximate right-of-way costs are estimated at an additional $5 million. Staff continues to confirm and apply for funding from other sources. The current Capital Improvement Program budget amounts are listed below.
CP 50-033 CSAH 50 at I-35 Interchange Reconstruction
Funding Source Total Approved Budget Available Budget
City of Lakeville $75,000 $0
Federal Department of Transportation $5,040,000 $4,040,000
Minnesota Department of Transportation $3,651,200 $3,651,200
Local Road Improvement Program Grant $1,673,000 $973,000
Sales and Use Tax $3,319,230 $3,319,230
Advance Fund Cities $840,263 $840,263
Total $14,598,693 $12,823,693
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, to provide a safe and efficient transportation system, Dakota County is proceeding with County Project (CP) 50-33; and
WHEREAS, CP 50-33 is the improvement of the interchange at the junction of County State Aid Highway (CSAH) 50/CSAH 5 and I-35 in Lakeville; and
WHEREAS, by Resolution No. 24-204 (April 23, 2024), the Dakota County Board of Commissioners authorized the execution of a preliminary design services contract with consultant SRF Consulting Group, Inc., (SRF) to perform preliminary and final design engineering services for a total contract amount not to exceed $1,466,232; and
WHEREAS, by Resolution No. 25-308 (June 24, 2025), the County Board authorized the first contract amendment, adding $344,030, for a total amended contract value not to exceed $1,810,262; and
WHEREAS, the cost of current additional out-of-scope and expanded work tasks to be performed by SRF and to ensure a logical conclusion of the contract is $166,176, resulting in a total amended contract value of $1,976,438; and
WHEREAS, the County Engineer recommends executing the second contract amendment with SRF for Contract Number DCA21560 for preliminary engineering of CP 50-33; and
WHEREAS, City of Lakeville and Minnesota Department of Transportation staff concur with this recommendation; and
WHEREAS, the 2025 Capital Improvement Program Adopted Budget accounted for a total of $1,673,000 in reimbursement to Dakota County under the Local Road Improvement Program for the SRF contract, resulting in a net estimated cost of $303,438 to be funded using County and City capital budgets; and
WHEREAS, additional funding sources are in place to support final engineering design and construction.
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 $1,810,262 for Contract Number DCA21560 with SRF Consulting Group, Inc., for County Project 50-33 to a total contract amount not to exceed $1,976,438, including reimbursables.
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PREVIOUS BOARD ACTION
24-204; 5/23/24
25-067; 1/21/25
25-308; 6/24/25
ATTACHMENTS
Attachment: Project Location Map
Attachment: SRF 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