Staff opened bids on February 26, 2019, for the 2019 Street Maintenance Program, City Overlay Contract. There were two bids and Knife River submitted the lowest responsible bid. 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 that includes pavement patching, chip seal resurfacing, overlay resurfacing, and crack sealing. This contract will provide an overlay on approximately 1.7miles on King Ave W (Canal to 31 St W), 20th St W (King Ave W to Monad), 32nd St W (Central to Broadwater), and Zimmerman (Broadwater to Grand). One Additive Alternate was included with the bid. Alternate A is to overlay 32nd St W from Monad to Central.  A work location map for this project is attached.  Staff recommends that the project is awarded with the additive alternate A. The contract was advertised on February 8th,15th, and 22nd in The Yellowstone County News and on the City's website.

The Council may:

• Award W.O. 19-03 Contract No. 1 City Overlay to Knife River-Billings, in the amount of $1,297,604.70; or
• Not award the contract to Blank 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 Alternate A
Knife River - Billings	$1,297,604.70
FirstMark Construction	$1,530,478.38

The funding for the project was budgeted in FY19 and the source is gas tax and arterial funds.

Project Budget	$2,875,000.00
Previously Encumbered	$0
This Contract	$1,297,604.70
W.O. 19-03 Contract No.2 City Digouts	$925,429.45
W.O. 19-03 Contract No.3 City Crack Seal/Mastic	$336,624.25
Budget Remaining	$315,341.60

Staff recommends the City Council award a contract for W.O. 19-03 Contract No.1 City Overlay to Knife River in the amount of $1,297,604.70.