Resolution amending the Cooperative Construction Agreement with Blue Earth County for the reconstruction of Victory Drive (CSAH 82) between Hoffman Road and Fair Street.

Adoption of the attached resolution

The City Council approved a Cooperative Construction Agreement with Blue Earth County at its January 22, 2024 meeting. This agreement identifies the City of Mankato’s cost share for the County’s Victory Drive reconstruction project. Since the execution of this agreement, the City’s share of project cost has exceeded the amounts outlined in the original agreement. The project is to be built in two parts, Project A (from Hoffman Road to Marwood Drive) in 2024 (complete) and Project B (Marwood Drive to Fair Street) in 2025. The County has recently bid Project B and is seeking to award a contract to the low bidder. The following table summarizes the City’s original cost obligations and changes proposed as part of this amendment.

 

	Project A	Project B	Total
Original City Share (1/22/24)	$707,009.66	$348,166.91	$1,055,176.57
Proposed City Share (1/27/25)	$857,719.55	$417,865.22	$1,275,584.77
Difference	$150,709.89	$69,698.31	$220,408.20
% Increase	21%	20%	21%

The proposed increases are due to higher bid prices than were estimated at the time of the original agreement. One area of significantly higher bids is for traffic signal work. The City’s cost share is funded through the City’s Municipal State Aid account and sufficient funds exist to cover the proposed increases.