The City of Billings and Kadrmas, Lee & Jackson, Inc. (KLJ) agreed to a Professional Services Contract on April 26, 2004, to cover the design of reconstruction of Alkali Creek Road between Senators Blvd. and Airport Road. Subsequent amendments were passed to encompass different phases of the project (W.O. 04-12). Amendment 7, approved June 8, 2009, covered the Professional Service fees for the relocation of the Alkali Creek stream channel, the corresponding slope work required due to existing slope stability problems, and associated road improvements.

To proceed with W.O. 04-12, approval and a permit is needed from the US Army Corps of Engineers (USACE). USACE has completed its initial review of the permit application and has no immediate objections. However, as part of the decision making process, the law requires USACE to consider a variety of resources including significant historic, structural, and pre-contact sites. USACE is requiring a cultural resources survey to be conducted because the project area contains one known site that is eligible for listing on the National Register of Historic Places and there is a high probability that the area may contain additional significant sites.

KLJ has qualified personnel available to provide the required cultural resource services. Therefore, the City is recommending approval of Amendment 8 to KLJ’s contract to cover these services. Amendment 8 includes, but is not limited to, a Class III Cultural Resource Inventory, shovel/auger probes of the project area, and limited site testing of the previously recorded site. KLJ will coordinate with other agencies (USACE, Montana State Historic Preservation Office—MTSHPO, etc.) to meet or exceed State and Federal standards for this type of work and help expedite the approval process.

The work will be performed in two phases: (1) pedestrian inventory and subsurface testing; and (2) data recovery and mitigation of the existing site. Due to the uncertainty of what field conditions may be encountered and the subsequent work involved, the project will be completed on a time and materials basis.

The Council may:

• Approve Amendment 8 to KLJ's contract for Professional Services, encompassing cultural resource services along Alkali Creek.  Depending on the initial results, mitigation of the project site will be completed, thus meeting the requirements of the USACE and allowing a decision to be made regarding the permit needed to proceed with the project.

• Deny approval of Amendment 8 to KLJ's contract for Professional Services.  This would essentially eliminate the possibility of receiving the permit from USACE needed to proceed with the project.  The project would then have to be rescoped, the design currently being prepared would be shelved, and valuable time and efforts expended up to this point would be wasted.

All services provided by Amendment 8 will be done on a time and materials basis, so the City will only pay actual costs.  The maximum not-to-exceed limit of all work is estimated to be $94,500.  Depending on what is encountered during field work, the total ultimately paid by the City will be noticeably less.

The project is being funded with ARRA (American Recovery & Reinvestment Act, i.e. Federal stimulus) funds and supplemented by Arterial fees and Storm Water funds. Amendment No. 8 represents an increase in the amount of the contract by up to $94,500.00. There are funds available to cover the increase.

ORIGINAL PROFESSIONAL SERVICES CONTRACT:		$210,860.00
	Amount	% of Contract	Total % of Contract
Amendments 1-7:	$502,940.57	238.52%
Amendment No. 8:	$94,500.00	44.82%
Amendment Totals to Date:	$597,440.57		283.34%
Total Contract Amount:	$808,300.57

Staff recommends that Council authorize the Mayor to execute Amendment No. 8 to the Professional Services Contract with Kadrmas, Lee & Jackson, Inc., in the not-to-exceed amount of $94,500.00.