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Timeframe:
<br />Staff estimates up to 10 minutes will be required to present this case and answer questions.
<br />Alternatives:
<br />Alternative #1 — Motion to adopt Resolution #26-050 accepting bids and awarding a contract to North Valley, Inc.
<br />for the total amount of $1,066,382.87 for MSA Bunker Lake Boulevard Reconstruction, Improvement Project
<br />#26-01. Adopt Resolution #26-061 approving the terms of up to a $2,000,000 interfund loan in connection with
<br />infrastructure improvements — Bunker Lake Boulevard Reconstruction in connection with Tax Increment
<br />Financing District No.18.
<br />Alternative #2 — Motion of other.
<br />Funding Source:
<br />Funding for this improvement is proposed to come from Public Improvement Revolving Funds (developer fees),
<br />Tax Increment #18, Municipal State Aid Funds, Water Utility Funds and Storm Water Utility Funds.
<br />The Tax Increment #18 funding is an estimate based on availability at this time. Resolution #26-061 is attached to
<br />this case, which proposes to set up an interfund loan, allowing the city to reimburse the qualified costs back to
<br />itself from the TIF District in the future. Fifty -six -percent (56%) of the total project costs qualify for TIF #18
<br />funding.
<br />On February 12, 2026 a total of eight (8) bids were received, opened, and tabulated, and the following bids were
<br />found to comply with the advertisement for bids.
<br />Contractor
<br />North Valley, Inc.
<br />Forest Lake Contracting, Inc.
<br />Valley Paving, Inc.
<br />Douglas -Kerr Underground, L.L.C.
<br />New Look Contracting, Inc.
<br />Park Construction Company
<br />Northwest
<br />Dresel Contracting, Inc.
<br />Engineer's Estimate
<br />Total Bid
<br />$1,066,382.87
<br />$1,100,364.50
<br />$1,119,770.78
<br />$1,122,881.06
<br />$1,137,841.75
<br />$1,165,297.40
<br />$1,274,866.66
<br />$1,434,658.03
<br />$1, 208, 370.00
<br />The bid of North Valley, Inc. of Nowthen, Minnesota, in the amount of $1,066,382.87 for the total bid of said
<br />improvements in accordance with the approved plans and specifications and advertisement for bids, is the lowest
<br />responsible bidder. Adding indirect costs in the amount of 23-percent brings the total project costs to
<br />$1,311,650.93.
<br />The bid is 12-percent lower than the engineer's estimate, primarily due to lower than anticipated excavation and
<br />earthwork prices.
<br />Funding Source Breakdown (Project Costs including 23-percent Indirect Costs):
<br />Public Improvement Revolving Funds $391,000.00
<br />Tax Increment #18 Funds* $386,750.00
<br />Municipal State Aid Funds $252,237.86
<br />Water Utility Funds $106,716.43
<br />Storm Water Utility Funds $174,946.64
<br />Project Total $1,311,650.93
<br />*$386,750.00 of TIF #18 funds are anticipated to be available by the end of 2026. Fifty-six percent (56%) of the
<br />total project costs qualify for TIF #18 funding. Based on the bid prices, this can be up to $734,524.52.
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