HomeMy WebLinkAboutVIII-09 Approve Budget Amendment - MnDOT Highway 55 Signal Replacements ProjectCity Council Memorandum
To: Mayor Fasbender & City Council Members
From:Cody Mathisen –City Engineer
Date:June 16,2025
Item:Budget Amendment & Authorize Payment -Cooperative Construction Agreement No. 1056949 -
MnDOT Highway 55 Signal Replacements Project S.P. 1910-57
COUNCIL ACTION REQUESTED
Council is requested to approve a budget amendment and authorize payment of the City’s cost share on
the MnDOT Highway 55 Signal Replacements Project per Cooperative Construction Agreement No.
1056949.
BACKGROUND INFORMATION
On March 17, 2025, City Council approved a resolution to enter into a Municipal Cooperative
Construction Agreement with MnDOT for the Highway 55 Signal Replacements Project. These
improvements will center around the replacement of traffic signals at the intersections of Pleasant Drive
and Westview Drive as well as other minor improvements such as lighting upgrades, storm sewer
rehabilitation, and a mill and overlay of both intersections’ pavement.
As part of participating in a Cooperative Agreement with MnDOT, the City is required to pay for our share
of the expenses up front as opposed to incremental payments throughout construction.
FINANCIAL IMPACT
At the time Council approved entry into the Cooperative Agreement, MnDOT’s latest cost estimate for the
City’s share of this project was $616,305.15. This includes replacement of the existing signals, relocations of
City owned electric facilities for street lighting, and minor storm sewer repairs.
Upon the receipt of bids, the low bid awarded has yielded a final City cost share of $675,484.32, which is
approximately 10% higher than MnDOT’s estimate.
A majority of these costs will be reimbursable through the City’s Municipal State Aid Street (MSAS) funds
and this account has a more than sufficient balance to cover this project. Of the total project costs,$32,975
for existing utility relocations (city-owned lighting) must be funded from a City source outside of MSAS.
STAFF RECOMMENDATION
Although the low bid was approximately 10% higher than the final estimate provided by MnDOT, staff is
still recommending that council move forward with supporting a budget amendment and making this
payment. The upgrades needed to the signals at these intersections is imperative, and delaying the project
to a future year would not only raise the final incurred cost by inflation, it would also implicate new
standards that would drive the project costs up substantially from what is being proposed here.
ATTACHMENTS
•MnDOT Invoice 00000870365
•MnDOT Schedule I –Agreement 1056949
VIII-09