The City of Billings invited bids for demolition of the former Naval Reserve Center located on the North Park Property at the corner of 8th Avenue North and North 22nd Street.  The City received a federal grant to cover both the cost of environmental hazard abatement and demolition.  The bids were opened on April 12, 2011.  Staff is requesting that City Council award this contract for demolition of the former Naval Reserve Center to LM Excavating of Columbia Falls, MT.  The base bid of One-Hundred Thirty Three Thousand, One Hundred and Sixty-three Dollars ($133,163.00) is within the grant limit.  The contractor will remove the structures from the site and recycle or reuse some of the building material.  The contract includes removing all footings and foundations, backfilling, hydroseeding and irrigation system repair and extension.  Staff does not recommend Alternate 1, which would have retained a small storage building, asphalt and fencing on the site.  Some of the site lighting will be retained but that is included in the base bid.  There were a total of eight (8) qualified bids on this project and the recommended contractor is the lowest bidder.

Council may:

• Award the contract to LM Excavating; or
• Do not award a contract and reject all bids.

The City received a 2009 US Dept. of Housing and Urban Development Economic Development Incentive grant for $475,000 to demolish the former Naval Reserve Center.  The recommended low bid is below the grant limit.

Staff recommends that the City Council award a contract for Demolition of the former Naval Reserve Center to LM Excavating in the amount of $133,163.00.