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Item 1.B.1.
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| City Council Regular | |
| Date: | 03/14/2022 |
| Title: | Bid Award: W.O. 21-42, SBURA Gravel Streets, Phase I |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review | Not Applicable |
RECOMMENDATION
Staff recommends the City Council award a contract for WO; 21-42 SBURA Gravel Streets, Phase I to Knife River - Billings in the amount of $3,328,242.25.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
WO; 21-42, SBURA Gravel Streets, Phase I is a South Billings Urban Renewal Association project that will improve existing gravel and non-maintainable streets within the SBURA District. Improvements consist of constructing new City-standard paved streets including new sidewalks, drive approaches, alley approaches, accessibility ramps, storm drain improvements and various sewer service extensions. In addition, this project includes a water main replacement throughout the project corridor.
This project originally planned to complete improvements on Vaughn Lane, Morgan Avenue, and Ryan Avenue from Hallowell Lane to Jackson Street, Mitchell Avenue from Hallowell Lane to its eastern terminus point just west of Jackson Street, Hillview Lane from Vaughn Lane from the alley south of Ryan Avenue, and Stephens Lane from Phillip Street to Ryan Avenue. Engineering design of improvements on these streets has been completed. At the construction pre-bid meeting with contractors, numerous concerns by several contractors were brought up regarding the construction industry capacity to complete the overall project as intended within this calendar year and within the allowable budget. As such, it was determined that moving construction of improvements to Morgan Avenue and Ryan Avenue to a subsequent year would be needed and so those two streets were removed from this construction scope of work. Those streets will likely be bid in Fall 2022.
The project was advertised on February 4, 11, and 18, 2022 in the Yellowstone County News and on the City's website. Bids were opened on February 22, 2022. Four bids were received and Knife River - Billings submitted the lowest responsible bid.
This project originally planned to complete improvements on Vaughn Lane, Morgan Avenue, and Ryan Avenue from Hallowell Lane to Jackson Street, Mitchell Avenue from Hallowell Lane to its eastern terminus point just west of Jackson Street, Hillview Lane from Vaughn Lane from the alley south of Ryan Avenue, and Stephens Lane from Phillip Street to Ryan Avenue. Engineering design of improvements on these streets has been completed. At the construction pre-bid meeting with contractors, numerous concerns by several contractors were brought up regarding the construction industry capacity to complete the overall project as intended within this calendar year and within the allowable budget. As such, it was determined that moving construction of improvements to Morgan Avenue and Ryan Avenue to a subsequent year would be needed and so those two streets were removed from this construction scope of work. Those streets will likely be bid in Fall 2022.
The project was advertised on February 4, 11, and 18, 2022 in the Yellowstone County News and on the City's website. Bids were opened on February 22, 2022. Four bids were received and Knife River - Billings 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 WO; 21-42: SBURA Gravel Streets, Phase I, to Knife River - Billings, in the amount of $3,328,242.25; or,
- Not award a contract and reject all bids. If the contract is not awarded, improvements would have to be contemplated in a subsequent year.
FISCAL EFFECTS
The following bids were received:
The project was budgeted in FY22 using South Tax Increment Financing District (TIFD) Funds. After discussions with SBURA, budget authority is adequate to award this project. The project is proposed to be funded with TIF revenue bonds, which will need to be authorized by Council at a future date. If bonds are not approved to fund the project, existing South TIFD cash is sufficient to complete the project.
| Contractor | Base Bid |
| Knife River - Billings | $3,328,242.25 |
| Askin Construction, LLC | $3,475,990.00 |
| Weave Construction | $3,482,031.00 |
| KLE Construction, LLC | $3,929,392.00 |
The project was budgeted in FY22 using South Tax Increment Financing District (TIFD) Funds. After discussions with SBURA, budget authority is adequate to award this project. The project is proposed to be funded with TIF revenue bonds, which will need to be authorized by Council at a future date. If bonds are not approved to fund the project, existing South TIFD cash is sufficient to complete the project.