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Item 1.A.2.
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| City Council Regular | |
| Date: | 04/26/2021 |
| Title: | Bid Award: W.O. 20-30: Hallowell Lane Improvements |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
RECOMMENDATION
Staff recommends the City Council award a contract for WO; 20-30 Hallowell Lane Improvements to KLE Construction, LLC. in the amount of $3,865,050.00.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
W.O. 20-30: Hallowell Lane Improvements is a South Billings Urban Renewal Association project that will improve Hallowell Lane from State Avenue to King Avenue East. Improvements consist of street widening, extensions of sewer and storm drain mains and installation of streetlights, sidewalks, drive approaches, alley approaches, accessibility ramps and miscellaneous related improvements. In addition, this project includes a water main replacement throughout the length of the project corridor. The project was advertised on March 5, 12, and 19, 2021 in the Yellowstone County News and on the City's website. Bids were opened on March 23, 2021. Three bids were received and KLE Construction, LLC submitted the lowest responsible bid.
STAKEHOLDERS
The South Billings Urban Renewal Association is a partner in this project. The SBURA consulting coordinator and Board have been updated monthly on this project.
ALTERNATIVES
City Council may:
- Award W.O. 20-30: Hallowell Lane Improvements, to KLE Construction, LLC, in the amount of $3,865,050.00; or,
- Do not award a contract and reject all bids. If the contract is not awarded, improvements to Hallowell Lane would have to be contemplated in a subsequent year.
FISCAL EFFECTS
The following bids were received:
The project was budgeted in FY21 using South Tax Increment Financing District (TIFD) and water funds. KLE Construction, LLC's bid was separated into the two funding sources with an estimated split of $1,316,958.21 for Water funds and $2,548,091.79 for TIFD funds.
The water funds are adequate for this project and were budgeted in FY21 as part of the larger water replacement program. After the initial TIFD budget was created, additional street improvements were requested by SBURA to be added to the project. Furthermore, after initial data was collected, it was evident that the project required work beyond the scope that was anticipated when the budget amount was estimated. Previous conversations with SBURA have indicated the proposed project budget would exceed the current funds. After discussions with SBURA, budget authority is adequate to award this project and the South TIFD Fund has sufficient cash for the project.
| Contractor | Base Bid |
| KLE Construction, LLC | $3,865,050.00 |
| Knife River - Billings | $3,881,976.00 |
| Western Municipal Construction, Inc. | $3,914,055.00 |
The project was budgeted in FY21 using South Tax Increment Financing District (TIFD) and water funds. KLE Construction, LLC's bid was separated into the two funding sources with an estimated split of $1,316,958.21 for Water funds and $2,548,091.79 for TIFD funds.
The water funds are adequate for this project and were budgeted in FY21 as part of the larger water replacement program. After the initial TIFD budget was created, additional street improvements were requested by SBURA to be added to the project. Furthermore, after initial data was collected, it was evident that the project required work beyond the scope that was anticipated when the budget amount was estimated. Previous conversations with SBURA have indicated the proposed project budget would exceed the current funds. After discussions with SBURA, budget authority is adequate to award this project and the South TIFD Fund has sufficient cash for the project.
| Budgeted FY 21 TIFD Funds | $1,480,000.00 |
| This Contract WO 20-30 - TIFD Funds | $2,548,091.79 |
| Additional TIFD Funding | $1,068,091.79 |