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AGENDA RECOMMENDATION |
Consent Calendar 6.J.
City Council Regular Meeting
- Meeting Date:
- 09/08/2025
Agenda Item:
Resolution considering bids on Capital Improvement Project 11001; Land of Memories Trail.
Recommendation/Action(s):
Adoption of attached resolution.
Summary:
On August 29, 2025, bids were opened on Capital Improvement Project Number 11001. Five bids were received, with the low bid submitted by Nielsen Blacktopping & Concrete, Inc. of $439,552.02. The Engineer’s estimate for the project was $366,275. No alternates were included for the project.
The low bid received is approximately 20% above the Engineer’s estimate and upon review it is believed to be largely associated with three items of work. The three items include Prefabricated Modular Block Wall, Service Cabinet, and Install Chain Link Fence. Further review concludes the low bid received for these three items was similar to the other bids received, so we believe the low bid is justified, and the cost was underestimated.
Funding for the proposed improvements is shown in the table below. The project was budgeted in the 2025 Capital Improvement Plan and includes funding from both the Minnesota Department of Transportation District 7 Area Transportation Alternatives (TA) program and the Minnesota Department of Natural Resources Regional Trail Program Grant.
Notes:
(1) State Transportation Improvement Program (STIP) designated $153,065 in FY 25 + $96,215 in FY 26 (advanced to FY 25)
(2) Approximately $1,090,000 Cash Reserve in Parks Capital — Adequate to Fund Remaining Balance
Staff recommends awarding the construction contract for Capital Improvement Project Number 11001 to Nielsen Blacktopping & Concrete, Inc. The contract has a substantial completion date for the bituminous trail of November 1, 2025, a final completion date of June 1, 2026, and construction is anticipated to start in September.
Staff and representatives of the contractor will meet prior to construction to review the work schedule and other miscellaneous items for consideration.
The low bid received is approximately 20% above the Engineer’s estimate and upon review it is believed to be largely associated with three items of work. The three items include Prefabricated Modular Block Wall, Service Cabinet, and Install Chain Link Fence. Further review concludes the low bid received for these three items was similar to the other bids received, so we believe the low bid is justified, and the cost was underestimated.
Funding for the proposed improvements is shown in the table below. The project was budgeted in the 2025 Capital Improvement Plan and includes funding from both the Minnesota Department of Transportation District 7 Area Transportation Alternatives (TA) program and the Minnesota Department of Natural Resources Regional Trail Program Grant.
| ITEM | Bid Award 9/8/25 |
| CONSTRUCTION SUBTOTAL | $439,552 |
| Xcel Energy Source of Power | $50,000 |
| Construction Contingency | $17,590 |
| Administration | $26,380 |
| Engineering | $43,960 |
| TOTAL PROJECT COST | $577,482 |
SOURCE |
|
| Transportation Alternatives Grant (1) | $249,280 |
| State Trail Grant (DNR) | $209.559 |
| Parks Capital (2) | $118,643 |
| TOTAL FUNDS | $577,482 |
UNFUNDED AMOUNT |
$0
|
Notes:
(1) State Transportation Improvement Program (STIP) designated $153,065 in FY 25 + $96,215 in FY 26 (advanced to FY 25)
(2) Approximately $1,090,000 Cash Reserve in Parks Capital — Adequate to Fund Remaining Balance
Staff recommends awarding the construction contract for Capital Improvement Project Number 11001 to Nielsen Blacktopping & Concrete, Inc. The contract has a substantial completion date for the bituminous trail of November 1, 2025, a final completion date of June 1, 2026, and construction is anticipated to start in September.
Staff and representatives of the contractor will meet prior to construction to review the work schedule and other miscellaneous items for consideration.