Staff opened bids on February 26, 2019, for the Work Order 19-03, Contract No. 2 City Digouts.  There were three bids received and Wharton Asphalt, LLC 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 which typically includes chip seal resurfacing, overlay resurfacing, and crack sealing.  Digouts include pavement patching of moderate to severe pavement failures such as potholes and alligator cracking. It also includes leveling low spots and settlements. They are done in preparation for chip seal resurfacing which will be performed in summer of 2020. The project will provide digouts on approximately 16 miles of streets of various streets throughout the City. The attached map shows the locations of the proposed work. The contract was advertised on February  8, 15, and 22 in The Yellowstone County News and on the City's website.

The Council may:

• Award W.O. 19-03, Contract No. 2 City Digouts to Wharton Asphalt, LLC, in the amount of $925,429.45; 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
Wharton Asphalt LLC	$925,429.45
Knife River - Billings	$949,495.50
FirstMark Construction	$1,027,893.00

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

Project Budget	$2,875,000.00
Previously Encumbered	$0
W.O. 19-03 Contract No. 1 City Overlay	$1,297,604.70
This contract	$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. 2 City Digouts, to Wharton Asphalt, LLC, in the amount of $925,429.45.