Staff opened bids on February 14, 2017, for the 2017 Street Maintenance Program, City Overlay Contract. The contract was advertised on January 26th, February 2nd, and February 9th in The Billings Times and on the City's website. There were two bids and Knife River submitted the lowest responsible bid. This project is part of the ongoing Street Preventative Maintenance Program supported by the City Council since 1985. Annually, staff identifies streets proposed for preventative maintenance that includes chip seal resurfacing, overlay resurfacing, and crack sealing. This contract will provide an overlay on approximately 2.3 miles of Central Avenue. Three Additive Alternates were included with the bid. Alternate A is to extend the work from Santa Fe to N. 24th St W. Alternates B and C were additional cost to construct concrete collars around manholes and water valves. A work location map for this project is attached.  Staff recommends that the project is awarded with all three alternatives. 

The Council may:

• Award W.O. 17-03 Contract #2 City Overlay to Knife River in the amount of $1,232,661.77; or
• Not award the contract to Knife River and reject all bids. If the contract is not awarded, the streets planned for maintenance will continue to degrade.

The following bids were received and evaluated:

Contractor	Base Bid+Additive Alternates A, B, C
Knife River	$1,232,661.77
Riverside Contracting	$2,178,019.15

The funding for the project was budgeted in FY17 and the source is gas tax and arterial funds.

Project Budget	$2,925,000.00
Previously Encumbered	$0.00
This Contract	$1,232,661,77
W.O. 17-03 Contract #1 City Chip Seal	$1,002,362.67
Budget Remaining	$689,975.56

Staff recommends the City Council award a contract for W.O. 17-03 Contract #2 City Overlay to Knife River in the amount of $1,232,661.77.