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Item 1.A.4.
 
City Council Regular
Date: 05/10/2021
Title: Bid Award: W.O. 20-15 Wicks Lane Improvements
Presented by: Debi Meling
Department: Public Works
Presentation: No

RECOMMENDATION

Staff recommends the City Council award a contract for WO 20-15 Wicks Lane Improvements to Riverside Contracting, Inc. in the amount of $1,395,248.75.

BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)

WO 20-15 Wicks Lane Improvements consists of approximately 2,400 linear feet of street improvements, including installation of new curb and gutter, sidewalk, drive approaches and pedestrian ramps; pavement widening, asphalt mill and overlay, and related storm drain improvements on Wicks Lane between Bench Boulevard and Hawthorne Lane. Additional improvements include on street bike lanes, and Kiwanis Trail crossing improvements to interface with the recently installed flashing beacons.  New roadway signage, and pavement markings are also included with the project. The resolution ordering improvements for Wicks Lane was approved by City Council during the March 8, 2021 council meeting. The project was advertised on April 9, 16, 23, 2021 in the Yellowstone County News and on the City's website. Bids were opened on April 27, 2021. Three (3) bids were received. Riverside Contracting, Inc. submitted the lowest responsible bid. 

Because the assessments to the property owners will be more than was estimated in the resolution, the city staff will meet with affected property owners on May 6, 2021 to review construction costs and discuss assessments.  The property owners will also be given an additional 30 days to perform the work themselves. By awarding this bid, the city council is acknowledging that the cost for the improvements and therefore assessments is greater than the estimate included in the resolution. 

ALTERNATIVES

City Council may:
  • Award WO 20-15: Wicks Lane Improvements to Riverside Contracting, LLC, in the amount of $1,395,248.75; or,
  • Not Award a contract and reject all bids.  If the contract is not awarded, the improvements will not be constructed and this portion of Wicks Lane will remain substandard.

FISCAL EFFECTS

The following bids were received:
 
CONTRACTOR BASE BID
Riverside Contracting, Inc. $1,395,248.75
Askin Construction, LLC $1,417,470.25
Knife River - Billings $1,724,424.50

The project was budgeted in the amount of $1,150,000.00 in FY21 using arterial construction funds and assessments.  Council was previously notified that an additional $500,000 was needed for the project and BARSAA gas tax funds would be utilized as BARSAA revenues for FY21 are in excess of the original estimate.  A future budget amendment will need to be approved by Council.  Use of BARSAA funds will not affect any other projects.

The lowest responsible bidder, Riverside Contracting Inc., submitted a unit price based total base bid value exceeding the estimated construction costs for property owner assessments by $60,325,.62 which is approximately 15% higher than estimated.