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). Staff is recommending an amendment to the original contract to cover additional services related to design, permitting, construction administration, and inspection for the final phase of W.O. 04-12.  The project includes the maintenance of Alkali Creek Road, relocation of the Alkali Creek stream channel, corresponding slope work required due to existing slope stability problems, construction of a multi-use path, and all appurtenant work from Black Pine Street to a point approximately 1,800 feet to the east (between Morningside Lane and Aronson Avenue).  Amendment No. 9 does not include fees or scope for additional environmental services (final mitigation of existing cultural site and 5-year follow-up to mitigation, as required by permitting agencies), which will be included in a subsequent amendment after all permits are issued and regulations are known.

The Council may:

• Approve Amendment No. 9 to the Professional Services Agreement with Kadrmas, Lee & Jackson for additional design and permitting services and Construction Administration of the Phase 3 work; or
• Do not approve Amendment No. 9 to the Professional Services Agreement.

Inspection is an integral portion of Amendment No. 9, and this project requires specialized inspection for the stream relocation and slope reconstruction.  If Council were to not approve Amendment No. 9, the City would have to contract with an outside entity because the City does not have qualified personnel to perform the specialized inspections.  This could result in delays to the project and potentially higher costs.

The project is being funded by ARRA (American Recovery and Reinvestment Act) funds, Arterial fees, and Storm Water funds. Amendment No. 9 represents an increase in the amount of the contract by $231,942.50. The FY 2010 budget has the following amounts:

ARRA funds:                               $ 1,650,688
Arterial Road Improvements:     $ 1,272,000
Storm Water Funds:                  $    157,700
Spent (and obligated) to date:($    620,352)
Remaining Funding:                   $ 2,460,036

Staff recommends that Council authorize the Mayor to execute Amendment No. 9 to the Professional Services Contract with Kadrmas, Lee & Jackson, Inc., in the amount of $231,942.50.