W.O. 16-03, Contract #1 is part of the 2016 Street Maintenance Program, specifically the City Crack Seal contract.  Annually, staff identifies streets proposed for preventative maintenance. Staff bids this work in three contracts: chip seal resurfacing, overlay resurfacing and crack sealing. This contract will provide crack sealing on approximately 25 miles of streets. The project was advertised on September 24th, October 1st and October 8th in the Billings Times and on the City's website.  Bids were opened October 13th.  There were three bids submitted and Z&Z Seal Coating Inc. submitted the lowest responsible bid. Due to the Columbus Day holiday, the City Council meeting was on the same day as the bid opening, so at the October 13 meeting, Council delayed the contract award to allow time to review the bid results.

The Council may:

• Award W.O. 16-03, Contract #1 City Crack Seal to Z&Z Seal Coating Inc. in the amount of $150,345.19;or
• Do not award a contract and reject all bids.

The following bids were received and evaluated:

Contractor	Bid Amount
Z&Z Seal Coating Inc.	$150,345.19
Hardrives Construction Inc.	$177,140.00
Wharton Asphalt LLC	$193,900.00

The Arterial and Gas Tax funding for the project was budgeted in the FY 16 budget.

Project Budget (Crack Seal, Overlay, Chip Seal)	$2,000,000.00
Previously Encumbered	$0.00
This Contract	$150,345.19
Budget Remaining	$1,849,654.81

Staff recommends that Council award a contract for Work Order 16-03 Contract #1 City Crack Seal to Z&Z Seal Coating Inc. in the amount of $150,345.19.