Bids were received on May 10 for the 2011 Street Maintenance Program, City Chip Seal. This contract is one part of the on-going Street Preventative Maintenance Program supported by the City Council since 1985.  The program is split into three separate contracts; chip seal resurfacing, overlay resurfacing, and the crack seal. This contract will provide a chip seal on approximately 11 miles of various streets throughout the City. 

The Council may:
• Award Work Order 11-03, 2011 Street Maintenance Program, City Chip Seal, to Knife River in the amount of $486,075.70; or
• Reject all bids and not award Work 11-03, 2011 Street Maintenance Program, City Chip Seal.

Funding for the 2011 Street Maintenance Program, City Chip Seal, will be provided from FY12 Gas Tax funds.  The City received two bids for this project as follows:

WO 11-03 City Chip Seal Bids

Contractor	Base Bid Amount	Alternate Bid Amount	Total Amount
Engineer's Estimate	$474,893.48	$246,133.62	$721,027.10
Knife River	$486,075.70	$269,932.18	$756,007.88
Hardrives	$582,477.00	$331,550.00	$913,997.00

The budget is only sufficient to award the base bid at this time.

Staff recommends that Council approve the Base Bid construction contract for the Street Chip Seal Maintenance Project with Knife River in the amount of $486,075.70.