Staff recommends the City Council award a contract for W.O. 26-03 Contract 1 City Overlay to Knife River Billings in the amount of $2,188,701.30.

The Contract 1 City Overlay project is part of the City's ongoing Street Preventative Maintenance Program, which has been in place since 1985. Each year, City staff identifies streets for preventative maintenance and pavement preservation, including pavement patching, chip or scrub seal resurfacing, mill and overlay resurfacing, and crack sealing.

Contract 1 City Overlay is the first of several street preventative maintenance projects for FY26. The project was bid with two schedules:

• Schedule 1 includes pavement milling and pavement overlay of approximately 2.3 miles of the following principal arterial streets: King Avenue West (24th Street West to the BBWA canal), Monad Road (24th Street West to Daniel Street), and Broadwater Avenue from 11th Street West to 16th Street West.  A work location map is attached to this memo. 
• Schedule 2 includes construction of Americans with Disabilities Act (ADA)-compliant curb ramps at street corners and mid-block crossings along the overlay streets. This work is required under the City's agreement with the U.S. Department of Justice (DOJ), which mandates the installation or upgrade of ADA ramps along streets constructed or reconstructed after 1992.

The contract was advertised on June 13, 20, and 27, 2025, in The Yellowstone County News and on the City's website. Bids were opened on July 1, 2025. Two bids were received, with Knife River Billings submitting the lowest responsible bid.  Both bids were below the Engineer's opinion of probable cost.

 

City Council may:

• Award W.O. 25-03 Contract 1 City Overlay, to Knife River in the amount of $2,188,701.30; or,
• Not award a contract and reject all bids. If no contract is awarded, the streets identified for maintenance will continue to deteriorate, resulting in higher future costs due to deferred maintenance.

The following bids were received:

Contractor	Total Bid Schedules I and II
Knife River Billings	$2,188,701.30
Askin Construction	$2,338,412.25

The project was budgeted in FY26 using Gas Tax and Street Maintenance District II funds in the amount of $4,300,000.  There are adequate funds to award this portion of the project.  Remaining funds will be used for additional pavement patching, crack sealing, and chip sealing as part of pavement preservation projects in the FY26 program.  These project areas will be bid separately.