Approve 2026 Street Rehabilitation, city project 26-04 change order 1 for paving the gravel Hodgson Road
To approve 2026 Street Rehabilitation, city project 26-04 change order 1
The gravel Hodgson Road is a city street that public works has identified for paving with asphalt. This work can be added to the ongoing 2026 Street Rehabilitation, city project 26-04, by council's approval of change order 1.
Public works has identified the gravel Hodgson Road for paving with asphalt. It is currently the only gravel road in the city. Because Shoreview only has a single, gravel road that is less than 1,000 feet long, maintenance is expensive and difficult to manage. The city does not have the specialized equipment to maintain gravel roads, so we rely on costly outside contractors and assistance from neighboring cities. For example, in 2024 the city resurfaced the gravel with the 2024 street rehabilitation, but the road is already deteriorating with resident complaints of potholes and dust.
Paving the road will reduce maintenance costs over the life of the road and allow for more consistent and efficient upkeep. Shoreview has the equipment and staff that are specialized at maintaining asphalt roads.
City staff met with residents at an on-site open house May 26, 2026, to explain the reasons to pave their roadway and answer questions. Many residents have lived on this road for a long time and told us they value the rural character and history of the existing gravel roadway, but largely seemed to accept that the expenditures on maintenance versus a typical paved road were a sound reason for asphalt paving.
Previously, public works had proposed to reconstruct the gravel road to an urban street standard with concrete curb and gutter and storm sewer improvements. Those proposals met significant pushback from the neighborhood due to the high cost of special assessments and perceived change to the character of their neighborhood. This project is not intended to do any improvements to the drainage or stormwater, nor install concrete curb and gutter.
Consistent with the city's special assessment policy, there are no special assessments proposed for property owners as no curb and gutter will be installed. The work will be paid for using the city’s street renewal fund.
Change order 1 is attached to this report. Below is a cost outline of these changes:
Original Contract Sum was $2,459,459.00
The Contract Sum will be increased by this Change Order in the amount of $73,557.70
The new Contract Sum including this Change Order will be $2,533,016.70
The funding will remain the same for all funding categories as when the contract was originally awarded on April 6, 2026. Bid pricing was lower than anticipated for the street construction, so the change order is within the budget.
| Fund | Approved Funding Amount |
| Street Renewal | $2,090,000.00 |
| Water | $275,000.00 |
| Surface Water | $220,000.00 |
| Capital Asset Replacement | $525.000.00 |
| Community Investment | $400,000.00 |
| Sanitary Sewer | $150,000.00 |
Staff recommends that the city council approve 2026 Street Rehabilitation, city project 26-04 change order 1.