Staff recommends the City Council award a contract for W.O. 25-03 Contract 1 City Overlay to Knife River in the amount of $1,627,536.10.

The Contract 1 City Overlay project is part of the ongoing Street Preventative Maintenance Program in place since 1985. Annually, staff identifies streets proposed for preventative maintenance and pavement preservation, which includes pavement patching, chip/scrub seal resurfacing, mill and overlay resurfacing, and crack sealing. Contract 1 City Overlay is the first of several street preventative maintenance projects for FY25. Contract 1 will cold mill and overlay approximately 2.1 miles of the following streets: 1) Gabel Road (Ember Lane to Hesper Drive), 2) 24th Street West (Central Avenue to Grand Avenue), and 3) Zimmerman Trail (Grand Avenue to Poly Drive).  The work on Gabel Road has been coordinated with the upcoming work that will be done by the Montana Department of Transportation along Zoo Drive at the intersection of Zoo Drive and Gabel Road.  A work location map is attached.

The contract was advertised on May 31, June 7, and June 14, 2024, in The Yellowstone County News and on the City's website. Staff opened bids on June 18, 2024.  One bid was received.  Knife River Billings submitted the lowest responsible bid. The bid total is about 10% less than the engineer's opinion of probable cost for the scope of work.  Staff reviewed the bid unit prices and they are within anticipated values expected for the work.

City Council may:

• Award W.O. 25-03 Contract 1 City Overlay, to Knife River in the amount of $1,627,536.10; or,
• Not award a contract and reject all bids. If the contract is not awarded, the streets planned for maintenance will continue to degrade.

The following bid was received:

Contractor	Base Bid
Knife River Billings	$1,627,536.10

The project was budgeted in FY25 using Gas Tax and Street Maintenance District II funds.  There is sufficient budget to award this project.