Item 3.9 2026 Mill and Overlay Project Pay Application 1
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Public Works City Engineer Wagner July 27, 2026
PRESENTER(s) REVIEWED BY: ITEM #:
Consent Assistant City Administrator/Human Resources Hille 3.9 – Pay Application #1 for
2026 Mill & Overlay
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative communication.
X Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends the City Council approves Pay Estimate #1 in the amount of $1,030,700.70 for the 2026 Mill &
Overlay and Striping Project to Knife River Corporation – North Central.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
This pay estimate is for mill and overlay work on Odean, Lin Bar Estates, Pheasant Ridge, Prairie Creek, Great River
Centre, Forest Hills, Mississippi Parkwood, Antelope Park, Barthel Acres, as well as striping work.
After construction commenced, edge milling was substituted in place of shouldering to improve road crown for better
drainage, provide flatter and less invasive driveway tie-ins, and preserve the elevation of the edge of the street adjacent
to mowed yards. This has been conducive to minimizing resident concerns regarding shoulder and driveway tie-ins.
The total project cost is expected to be below the original contract price of $1,089,085.29.
In accordance with Minnesota Statute, the City is withholding 2% retainage of work completed, which amounts to
$21,034.71 at this time.
SUPPORTING DOCUMENTS ATTACHED:
• Pay Estimate #1
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Pay Estimate #1 to Knife River Corporation in the amount of $1,030,700.70 for the 2026 Mill &
Overlay and Striping Project.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund #201 Pavement Management Yes
PAY ESTIMATE #1City of Otsego2026 Mill and Overlay and Striping ProjectITEM NO.ITEM DESCRIPTIONESTIMATED QUANTITY UNITCONTRACT UNIT PRICECONTRACT AMOUNTUSED TO DATEEXTENSION1 MOBILIZATION 1 LS 6,000.00$ 6,000.00$ 1 6,000.00$ 2 BITUMINOUS MATERIAL FOR TACK COAT 6,251 GAL 0.01$ 62.51$ 8,012 80.12$ 3 MILL BITUMINOUS SURFACE 125,016 SY 1.25$ 156,270.00$ 125,016 156,270.00$ 4 TYPE SP 9.5 WEARING COURSE MIXTURE (2,B) 1.5" LIFT 10,799 TON 59.50$ 642,540.50$ 9,660 574,740.25$ 5 TRAFFIC CONTROL 1 LS 5,500.00$ 5,500.00$ 1 5,500.00$ 810,373.01$ 742,590.37$ ITEM NO.ITEM DESCRIPTIONESTIMATED QUANTITY UNITCONTRACT UNIT PRICECONTRACT AMOUNTUSED TO DATEEXTENSION6 MOBILIZATION 1 LS 6,000.00$ 6,000.00$ 1 6,000.00$ 7 SHOULDER BASE SALVAGED MILLINGS 382 TON 26.00$ 9,932.00$ 0 -$ 8 BITUMINOUS MATERIAL FOR TACK COAT 2,288 GAL 0.01$ 22.88$ 2,288 22.88$ 9 TYPE SP 9.5 WEARING COURSE MIXTURE (2,B) 1.5" LIFT 3,954 TON 59.50$ 235,263.00$ 3,798 225,981.00$ 10 TRAFFIC CONTROL 1 LS 2,000.00$ 2,000.00$ 1.00 2,000.00$ 253,217.88$ 234,003.88$ ITEM NO.ITEM DESCRIPTIONESTIMATED QUANTITY UNITCONTRACT UNIT PRICECONTRACT AMOUNTUSED TO DATEEXTENSION11 4" DOUBLE SOLID LINE YELLOW - PAINT 14,237 LF 0.40$ 5,694.80$ 13,945 5,578.00$ 12 4" SOLID LINE YELLOW - PAINT 3,625 LF 0.20$ 725.00$ 0 -$ 13 4" SOLID LINE WHITE - PAINT 31,349 LF 0.20$ 6,269.80$ 28,652 5,730.40$ 14 4" BROKEN LINE WHITE - PAINT 1,619 LF 0.20$ 323.80$ 460 92.00$ 15 12" SOLID LINE WHITE - PAINT 791 LF 3.00$ 2,373.00$ 205 615.00$ 16 24" SOLID LINE WHITE - PAINT 185 LF 3.50$ 647.50$ 79 276.50$ 17 24" SOLID LINE YELLOW - PAINT 213 LF 3.50$ 745.50$ 112 392.00$ 18 PAVEMENT MESSAGE (ARROW) - PAINT 51 LF 60.00$ 3,060.00$ 37 2,220.00$ 19 CROSSWALK MARKING (3'X6' BLOCKS) - PAINT 2,262 EACH 2.50$ 5,655.00$ 2,306 5,765.00$ 25,494.40$ 20,668.90$ SCHEDULE "A" - MILL AND OVERLAYTotal Bid Schedule 'A'SCHEDULE "B" - OVERLAYTotal Bid Schedule 'B'SCHEDULE "C" - STRIPINGTotal Bid Schedule 'C'S:\Municipal\Otsego\387 Road Maintenance\2026\C- CONSTRUCTION PHASE\PAY ESTIMATES\OT387-2026_Pay EstimatePE - 1
PAY ESTIMATE #1City of Otsego2026 Mill and Overlay and Striping ProjectITEM NO.ITEM DESCRIPTIONESTIMATED QUANTITY UNITCONTRACT UNIT PRICECONTRACT AMOUNTUSED TO DATEEXTENSION30 FO #1 EDGE MILL 21,629 SY 1.94$ 41,960.26$ 21,629 41,960.26$ 31 FO #1 MOBILIZATION - EDGE MILL 1 LS 1,500.00$ 1,500.00$ 1 1,500.00$ 32 FO #2 REMOVE & REPLACE CURB - LABOR 1 LS 7,980.00$ 7,980.00$ 1 7,980.00$ 33 FO #2 REMOVE & REPLACE CURB - MATERIAL 1 LS 2,282.00$ 2,282.00$ 1 2,282.00$ 34 FO #2 MOBILIZATION - CURB WORK 1 LS 750.00$ 750.00$ 1 750.00$ 54,472.26$ 54,472.26$ $810,373.01 $742,590.37$253,217.88 $234,003.88$25,494.40 $20,668.90$54,472.26 $54,472.26$1,089,085.29 $1,051,735.41Bid Schedule 'C'TOTALBid Schedule 'B'Field OrdersTotal Field OrdersBid Schedule 'A'FIELD ORDERSS:\Municipal\Otsego\387 Road Maintenance\2026\C- CONSTRUCTION PHASE\PAY ESTIMATES\OT387-2026_Pay EstimatePE - 2