DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Award And Execute Contract With McNamara Contracting And Amend 2023 Transportation CIP Budget For CP 9-56 On CSAH 9 In City Of Lakeville
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PURPOSE/ACTION REQUESTED
• Award bid and authorize a contract with McNamara Contracting for County Project (CP) 9-56 in the City of Lakeville (City).
• Amend the 2023 Transportation Capital Improvement Program (CIP) Budget.
SUMMARY
To provide a safe and efficient transportation system, Dakota County is proceeding with CP 9-56. County Project 9-56 is the construction of a new alignment of County State Aid Highway (CSAH) 9 (179th Street) from Hayes Avenue to CSAH 23 (Cedar Avenue) in the City of Lakeville (Attachment: Project Location). The segment of existing Dodd Boulevard between Hayes Avenue and CSAH 31 (Pilot Knob Road) will be reconstructed separately in 2024 as part of the jurisdictional transfer to the City.
Construction is planned to start in the spring 2023 and be substantially complete by November 2023. CP 9-56 was initially bid in May, 2022 and the bids were ultimately rejected with a plan to re-bid to allow for more flexible construction phasing and competitive bids.
Construction bids were received and tabulated on December 6, 2022. Eight bidders submitted bids as follows:
Bidder Bid Amount
McNamara Contracting $11,207,634.63
Eureka Construction, Inc. $11,634,920.41
Park Construction Company $11,981,260.74
Ryan Contracting Co. $12,460,737.75
S.M. Hentges & Sons, Inc. $12,636,123.65
Meyer Contracting, Inc. $13,204,457.25
Max Steininger, Inc. $13,232,465.05
Northwest Asphalt $14,789,847.38
The lowest responsive and responsible bid for CP 9-56 is $11,207,634.63 from McNamara Contracting Inc., which is 3.45 percent under the engineer’s estimate of $11,608,521.70. The previous low bid from May 2022 was $11,669,790.53. Rebidding the project has resulted in a cost savings of $492,125.90 to both the City and County.
Staff and the Minnesota Department of Transportation (MNDOT) have reviewed the bids and determined that the bid was competitive at the time of bidding. In accordance with Minnesota Department of Transportation Standard Specifications for Construction, the contractor will be eligible for up to $100,000 incentive for actual pavement quality based on density and smoothness specifications. The incentive will be split in accordance with County policy for the respective roadway segment.
The total remaining project budget is $6,324,088 for CP 9-56 (Attachment: Financial Summary). The estimated total construction cost, including construction administration, signal materials, temporary storm sewer construction, pavement incentives, testing, and potential contract changes, is $13,050,441. The project cost has increased from the original budget due to added project scope and cost escalations. An amendment of $6,726,353 is requested to award the project.
The major amendment increases include:
- $1,881,000 for 179th Street segment roadway (aggregates and paving) and storm sewer (55% County, 45% City) due to construction price escalation and additional project scope.
- $1,805,000 for additional improvements along Cedar Ave, including new signal, roadway, storm sewer, and concrete items (85% County, 15% City). Cedar Ave changes were added to correct the intersection alignment and profile and to include milling and overlay.
- $1,150,354 for City sanitary sewer and water main replacement work on CP 9-56 (100% City cost).
- $817,000 Construction administration costs 55% County, 45% City).
Additional project costs are due to the need for three construction stages and cost escalation. Overall, the project cost is estimated to be split 60% County and 40% City.
RECOMMENDATION
recommendation
Staff recommends awarding the bid to and authorizing execution of a contract with McNamara Contracting and amending the 2023 Transportation CIP budget. A budget amendment of $6,726,353 is requested to use $4,035,812 of Transportation fund balance and to increase the City share to $2,690,541 for CP 9-56.
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EXPLANATION OF FISCAL/FTE IMPACTS
The approved budget for CP 9-56 is $9,820,000 for project design, right of way acquisition, and construction. A budget amendment is requested in the amount of $6,723,353 which brings the total project budget to $16,546,353. Staff propose using $4,035,812 from Transportation fund balance for the County’s share and increasing the city share by $2,690,541.
☐ 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) 9-56; and
WHEREAS, the County is the lead agency for the Project, with construction scheduled for summer 2023; and
WHEREAS, the previously approved CP 9-56 budget is $9,820,000 for project design, right of way acquisition, and construction; and
WHEREAS, the remaining project budget is $6,324,088; and
WHEREAS, the bid of McNamara Contracting in the amount of $11,207,634.63 was the lowest responsive and responsible bid received; and
WHEREAS, the estimated total construction cost is $13,050,441, including pavement incentives, testing, and potential contract changes; and
WHEREAS, a budget amendment is necessary to account for the project costs above the Capital Improvement Program (CIP) amount and additional revenue from the City; and
WHEREAS, Dakota County currently has a sufficient transportation fund balance for the additional costs of the project; and
WHEREAS, the Minnesota Department of Transportation and the City concur in the award of a construction contract to McNamara Contracting, as the lowest responsive and responsible bidder; and
WHEREAS, the 2023 Transportation CIP budget for CP 9-56 shall be amended by $6,726,353; and
WHEREAS, staff recommends awarding the bid to and authorizing execution of a contract with McNamara Contracting and amending the 2023 Transportation CIP.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby awards the bid to and authorizes the Physical Development Director to execute the contract with McNamara Contracting for County Project 9-56 in the amount of $11,207,634.63 based on their low bid, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the contract amount may be increased by up to $100,000 for additional costs of pavement incentives met by McNamara Contracting, as specified in the contract documents; and
BE IT FURTHER RESOLVED, That the 2023 Transportation Capital Improvement Program Adopted Budget is hereby amended as follows:
Expense
CP 9-56 $6,726,353
Total Expense $6,726,353
Revenue
City of Lakeville $2,690,541
Transportation Fund Balance $4,035,812
Total Revenue $6,726,353
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PREVIOUS BOARD ACTION
22-241; 6/7/22
22-310; 7/19/22
ATTACHMENTS
Attachment: Location Map
Attachment: Financial Summary
BOARD GOALS
☒ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
PUBLIC ENGAGEMENT LEVEL
☐ Inform and Listen ☒ Discuss ☐ Involve ☐ N/A
CONTACT
Department Head: Erin Laberee
Author: Matthew Parent