This project is part of the on going Street Preventative Maintenance Program supported by the City Council since 1985. Annually, staff identifies streets proposed for preventative maintenance which typically includes chip seal resurfacing, overlay resurfacing, and crack sealing.  Chip sealing is an economical surface treatment designed to protect and prolong the life of the pavement.  The project will provide a chip seal on approximately 7 miles of streets in the Briarwood and Cedar Park areas. The attached maps show the locations of the proposed work. Staff opened bids on January 30, 2018, for the Work Order 18-03, Contract No. 3 City Chip Seal. The contract was advertised on January 12, 19, and 26 in The Yellowstone County News and on the City's website. Hardrives Construction, Inc. submitted the lowest responsible bid.

The Council may:

• Award W.O. 18-03, Contract No. 3 City Chip Seal to Hardrives Construction, Inc. in the amount of $639,844.26; or
• Do not award a contract and reject all bids.  If this project is not awarded, the deferred maintenance of City streets will increase.

The following bids were received and evaluated:

Contractor	Base Bid
Hardrives Construction, Inc.	$639,844.26
Knife River	$667,684.40
Riverside Contracting Inc.	$825,770.00

The funding for the project was budgeted in FY18 and the source is gas tax and arterial funds.

Project Budget	$2,500,000
Previously Encumbered	$208,955
This Contract	$639,844.26
W.O. 18-03 Contract No. 2 City Overlay	$1,265,099.40
Budget Remaining	$386,101.34

Staff recommends the City Council award a contract for W.O. 18-03, Contract No. 3 City Chip Seal to Hardrives Construction, Inc. in the amount of $639,844.26.