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Item 1.A.2.
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| City Council Regular | |
| Date: | 01/08/2024 |
| Title: | W.O. 24-03: Contract 2 City Chip/Scrub Seal, Reject Bids |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review: | Not Applicable |
| Project Number: | NA |
RECOMMENDATION
Staff recommends the City Council reject all bids and not award a contract for W.O. 24-03 Contract 2 City Chip/Scrub Seal.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
W.O. 24-03, Contract 2 City Chip/Scrub Seal project, is part of the ongoing Street Preventative Maintenance Program in place since 1985. Annually, staff identifies streets proposed for preventative maintenance that includes pavement patching, chip/scrub seal resurfacing, overlay resurfacing, and crack sealing. Chip and scrub sealing are economical surface treatments designed to protect and prolong the life of a pavement by addressing pavement cracking, raveling, and oxidation. The treatments reduce water intrusion and slow cracking. The attached map shows the locations of the proposed work.
The contract was advertised on November 3, 10, and 17, 2023, in The Yellowstone County News and on the City's website. Staff opened bids on November 21, 2023. There were two bids received. Hardrives Construction, Inc. submitted the lowest responsible bid. However, the low bid exceeds the available project budget.
Staff recommends rejecting bids. Staff proposes to modify the scope of work and will work on generating additional interest in bidding the project to obtain more efficient pricing. Staff anticipates rebidding the modified project in early 2024.
The contract was advertised on November 3, 10, and 17, 2023, in The Yellowstone County News and on the City's website. Staff opened bids on November 21, 2023. There were two bids received. Hardrives Construction, Inc. submitted the lowest responsible bid. However, the low bid exceeds the available project budget.
Staff recommends rejecting bids. Staff proposes to modify the scope of work and will work on generating additional interest in bidding the project to obtain more efficient pricing. Staff anticipates rebidding the modified project in early 2024.
ALTERNATIVES
City Council may:
- Reject all bids. There are no viable alternatives to this action.
FISCAL EFFECTS
The following bids were received:
The project was budgeted in FY24 using Street Maintenance District II funds in the amount of $1,475,000 and the City's South Tax Increment Fund (TIF) in the amount of $90,000. Bids exceed the available project budget.
| Contractor | Base Bid |
| Hardrives Construction, Inc. | $1,761,083.67 |
| Knife River | $1,813,215.40 |
The project was budgeted in FY24 using Street Maintenance District II funds in the amount of $1,475,000 and the City's South Tax Increment Fund (TIF) in the amount of $90,000. Bids exceed the available project budget.