Staff recommends the City Council reject all bids received for SID 1411 Park Lane Paving.

Park Lane is an existing gravel street located west of Highwood Drive, between Rimrock Road and Poly Drive.  Park Lane is currently a City maintenance challenge.  As part of the gravel street program, Park Lane will be improved to a paved street, bounded with curb and gutter.  The project also features new drive approach and driveway connections, and the replacement of an outdated storm drain inlet.

The resolution of intent to create SID 1411 was approved by City Council at the May 24, 2021 council meeting.  The resolution ordering improvements for SID 1411 was approved by City Council during the June 14, 2021 council meeting.  The project was advertised on May 28, June 4, and June 11, 2021 in the Yellowstone County News and on the City's website.  Bids were opened on June 15, 2021.  Two (2) bids were received.  COP Construction submitted the lowest responsible bid.  The bid is over the engineer's estimate.  The bid was weighted heavily in assessed items, resulting in assessed costs that exceed the amount specified in the resolution ordering improvements for SID 1411.  Staff believes that rebidding the contract in the winter of 2022 will bring additional bidders and reduced costs.

City Council may:

• Award SID 1411 Park Lane Paving to COP Construction, in the amount of $107,704.00 and acknowledge that assessments will exceed the previous estimates sent to property owners; or
• Not Award a contract and reject all bids. 

The following bids were received:      

COP Construction	$107,704.00
KLE Construction	$154,840.00

The project was budgeted in FY21 using gas tax funds and SID assessments.  The lowest bid results in a 16% increase in property owner assessments.