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AGENDA RECOMMENDATION |
7.A.
City Council Regular Meeting
- Meeting Date:
- 10/27/2025
Agenda Item:
Resolution considering bids on Capital Improvement Project 10884; Kern Bridge.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
Bids were for this project on September 19, 2025. The following three bids were received:
The low bid from Redstone Construction, LLC of $8,381,848.34 is 15% higher than the Engineer’s estimate. A full bid tabulation is attached.
A summary of project costs and identified funding at various stages of project development is attached. The total anticipated project cost is currently $10,516,004 and includes a 5% construction contingency. This amount exceeds the funding identified in July 2025 when final plans were completed. Since the bid opening, staff has been working with MnDOT to identify additional funding sources. MnDOT has committed to allocating additional Federal funds to cover (including the previously awarded Federal grant to the City) 80% of the construction cost. The remainder of project costs are proposed to be covered by a previously awarded State grant and other local sources as shown in the attached funding summary. The current funding split is 75% Federal/State and 25% Local for the total project.
It is recommended that the City Council approve the attached resolution accepting the low bid from Redstone Construction, LLC in the amount of $8,381,848.34.
If approved, staff will work with Redstone Construction to explore potential reductions in scope or changes in construction methods that could further reduce overall construction costs, which would be brought to the City Council at a later date for consideration. If approved, construction would likely begin in early December and be substantially completed late in 2026 or early 2027.
| Bidder | Bid Amount |
| Redstone Construction, LLC | $8,381,848.34 |
| Lunda Construction Co. | $8,820,855.98 |
| Kraemer North America, LLC | $9,176,920.21 |
| Engineer's Estimate | $7,283,709.20 |
The low bid from Redstone Construction, LLC of $8,381,848.34 is 15% higher than the Engineer’s estimate. A full bid tabulation is attached.
A summary of project costs and identified funding at various stages of project development is attached. The total anticipated project cost is currently $10,516,004 and includes a 5% construction contingency. This amount exceeds the funding identified in July 2025 when final plans were completed. Since the bid opening, staff has been working with MnDOT to identify additional funding sources. MnDOT has committed to allocating additional Federal funds to cover (including the previously awarded Federal grant to the City) 80% of the construction cost. The remainder of project costs are proposed to be covered by a previously awarded State grant and other local sources as shown in the attached funding summary. The current funding split is 75% Federal/State and 25% Local for the total project.
It is recommended that the City Council approve the attached resolution accepting the low bid from Redstone Construction, LLC in the amount of $8,381,848.34.
If approved, staff will work with Redstone Construction to explore potential reductions in scope or changes in construction methods that could further reduce overall construction costs, which would be brought to the City Council at a later date for consideration. If approved, construction would likely begin in early December and be substantially completed late in 2026 or early 2027.