Adopting a Resolution awarding a contract to Rachel Contracting, LLC in the amount of $18,937,132.74 for Silver Lake Sediment Removal and Dam Modification - Project No. J4889

In 2016, the Council approved a Professional Engineering Services Agreement with WHKS for sediment removal in the South Fork Zumbro River and Silver Lake. That contract was amended in 2017 to complete the removal of sediment in the South Fork Zumbro River by the Government Center and to prepare for future dredging of Silver Lake.

In August 2019, the Council approved a second amendment to the contract to complete the concept design for the modification of Silver Lake Dam and potential pedestrian improvements.

In December 2020, the Council approved the concept design that included modifications to the Silver Lake Dam, north and south trail connections, and a standalone pedestrian bridge.

In 2021, the City completed an Environmental Assessment Worksheet (EAW) and related documentation. The Council approved a negative declaration, demonstrating that implementation of this project would not have the potential for significant environmental effects based on the findings of the EAW.

In 2024, the Council reviewed the 30% project design and approved completing the final design, advertising the project for bids after the design was complete, and entering into a grant agreement with the State of Minnesota for the Lessard-Sams Outdoor Heritage Council Funds. Public informational meetings were also hosted.

At a July 2025 Council Study Session, staff presented a project update to Council. The updates covered modifications to the plans such as moving the rock arch rapids farther downstream to coincide with an added stilling basin to repair a scour identified downstream of the dam and help prevent further scouring. This change also preserved more of the lake. Staff also discussed changes to the location, elevation, and construction of the north shore trail to accommodate comments from the Minnesota Department of Natural Resources (DNR), the adjacent property owners, and provide additional structural stability during flooding. Staff also provided the option to restore the east shoreline to a more historic configuration and add additional open water to help mitigate the impacts of converting some of the lake into a river section. And a project cost estimate update was provided to reflect inflation and the proposed changes. A public informational meeting was also held to discuss the current project status and obtain feedback from residents on north trail finishes list retaining walls and fencing.

City staff and WHKS worked closely with the Minnesota Department of Natural Resources (DNR) and the U.S. Army Corps of Engineers (USACE) to complete the final design and permitting requirements for the project. The design includes the Silver Lake Dam modification, future pedestrian bridge center pier, north shore trail connection, east shoreline improvements, and a comprehensive dredging plan. The dredging plan includes the USACE-required navigation channel, adjacent areas for recreational and water quality improvements, and two upstream river segments maintained through the City's flood control dredging program.

The project required review and coordination with multiple state and federal agencies due to the complexity of the dam modification, river flows, flood control system, and recreational improvements. The City obtained the required MPCA permits in February 2026 and all required USACE permits by early July 2026. Since 2024, City staff and WHKS have conducted extensive pre-permit meetings with the DNR to coordinate design requirements, engineering documentation, and flow modeling. The DNR permit application was submitted on July 17, 2025. The City and WHKS continued detailed design coordination with the DNR throughout the review process, including evaluation of hydraulic conditions, detailed meetings on the fish passage within the rock arch rapids and flow coordination with the adjacent wave pools, north trail design, and south and east shoreline improvements. On March 11, 2026, the DNR confirmed that the application was complete and initiated review by local and state governmental bodies.

Since March 2026, the City, WHKS, and DNR have continued technical meetings to refine the design and support successful project implementation. This collaboration included detailed review and refinement of hydraulic models that reflect the design. The teams also reviewed the number and width of the rapids, rock placement, and pool construction materials and methods to ensure the design supports the intended hydraulic performance.

The north shore trail and south green/recreational space are designed to accommodate periodic flooding as part of their integration with the City's flood control network. The DNR review included the north shore trail's relationship to the Ordinary High Water Level, flood conditions, and trail stability. The east shoreline improvements were also reviewed to optimize vegetation, aquatic and wildlife habitat.

This extended state and federal review, design collaboration, and hydraulic modeling process helped the project team address the technical complexities of the project and improve coordination between the flood control, recreational, and aquatic habitat objectives. The DNR has stated that it is prepared to issue the permit and is working through the final administrative process. The DNR is targeting October 2, 2026, for permit issuance. If the permit is not issued by that date, the DNR will provide an updated status letter and anticipated issuance date.

WHKS completed the design and bid documents for Silver Lake Sediment Removal and Dam Modification - Project No. J4889.

The project was advertised for bids on August 4, 2026, and the following bids were received on September 9, 2026:

The changes made to the length and width of the rock arch rapids and number of rapids was reflected in the bids and updated engineering estimates. The final design for north trail meets all DNR requirements, includes input from adjacent property owners on finishes and transitions to the property, the added flood wall armoring needed as a result of shifting the dam modification downstream so more of the trail is along the lake edge, and the addition of the east shoreline improvement which was not included in older estimates. All of these changes were reflected in the bids and updated engineering estimates. The apparent low bid is $18,937,132.74, which is 9.8%, below the engineer’s estimate.

Adequate funding is available to cover the project costs. A breakdown of recommended funding sources, amounts, and its connection to project components is included in the attached presentation associated with this agenda item. The Public Works Department recommends that the Council award the project to the apparent low bidder. Construction is scheduled to start on or after October 12, 2026, and is expected to be substantially completed by September 1, 2027.

These requested actions align with previous Council actions related to the proposed project. The north shore trail component of the project has been included in the 2012 Bicycle Master Plan, the 2015-16 Park System Plan and the 2022-23 Silver Lake Master Plan. The Silver Lake Master Plan also contemplated the eventual dam modification, based on prior Council actions, and incorporated a concept for uses for the areas of the park which would change as a result of the dam modification.

Legislative Actions:
January 20, 2016: Council Meeting - Professional Services Agreement with WHKS for sediment removal- Project No. J4889 approved.
December 4, 2017: Council Meeting - Professional Services Agreement with WHKS for final design of Phase 1 sediment removal for S. Fork Zumbro River - Project No. J4889 approved.
March 19, 2018: Council Meeting - Amendment 1 to the Professional Services Agreement with WHKS for feasibility study and preliminary analysis of Silver Lake pedestrian improvements, Silver Lake Dam modifications, and sediment removal - Project No. J4889 approved.
August 19, 2019: Council Meeting - Amendment 2 to the Professional Services Agreement with WHKS for the completion of the Concept Design of Silver Lake pedestrian improvements, Silver Lake Dam modification, and sediment removal - Project No. J4889 approved.
November 2, 2019: Council Meeting - 2020 Legislative Priorities, which included Silver Lake Dam Modifications and Improvements - Project No. J7889 approved.
November 30, 2020: Study Session - Concept Design or Silver Lake pedestrian improvements, Silver Lake Dam modification, and sediment removal - Project No. J4889.
December 14, 2020: Council Meeting - Concept Design for Silver Lake pedestrian improvements, Silver Lake Dam modification, and sediment removal - Project No. J4889 approved.
January 4, 2021: Council Meeting - 2021 Legislative Priorities, which included Silver Lake Dam Modifications and Improvements - Project No. J7889 approved.
April 5, 2021: Council Meeting - Negative Declaration Decision Environmental Assessment Worksheet - Project No. J4889 approved.
October 4, 2021: Council Meeting - 2022 Legislative Priorities, which included Silver Lake Dam Modifications and Improvements - Project No. J7889 approved.
June 17, 2024: Council Meeting- Engineering Services Contract, Construction Bidding, and Negotiation of Grant Funding Agreement for the Silver Lake Sediment Removal and Dam Modification - Project No. J4889 approved.
November 18, 2024: Council Meeting - Execution of a grant agreement with the State of Minnesota, acting through it's Commissioner of Natural Resources approved.
July 28, 2025- Study Session- Update on project design.

Community Engagement:
March 27, 2019: Open House for Silver Lake Pedestrian Improvements and Silver Lake Dam Modifications.
March 27, 2019: Polco Survey placed on the City website for Silver Lake Pedestrian Improvements and Silver Lake Dam Modifications.
October 24, 2020 - November 25, 2020: Virtual Open House and Polco Survey for draft Concept Design. April 6, 2022: Public meeting held at DSIC building.
June 5, 2024: Public Informational meeting held at RCTC Heinz Center.
June 10, 2024: Public Informational meeting held virtually.
Summer of 2024: Individual discussions related to the proposed north trail layout and restoration options with the residents whose properties will be directly impacted by construction.
July 17, 2025: Open house for Silver Lake Dam Modifications and Sediment Removal project at Old Silver Lake Firehall.
February 4, 2026: Presentation to Izaak Walton League.

Silver Lake Sediment Removal and Revitalization is included in the 2024-2029 Flood Control Capital Improvement Program, Map #11 (J-4889) and Map #12. Project funding for the full project is from Flood Control Reserves, Electric Utility, Stormwater Utility and State Funds. The full construction project budget is $21,777,702.65  with engineering and contingencies added to the $18,937,132.74. If change order work is required because of the existing conditions related to the dam, RPU will contribute additional funds as determined necessary to address the change in work. The Stormwater Utility funds will be from J6503 for sediment removal and any additional stormwater costs will come from the Stormwater Reserves. 

Dredging alternatives have been provided that do not impact the U.S. Army Corp of Engineer's required channel and could be removed from the project to reduce costs. The three alternatives included in the award amount results in $729,269.10 of addition cost to project.