Staff recommends that City Council approve the contract amendment for Snow Plowing of Local Streets with K2 Civil, Inc. in the amount of $1,075,000 which is an increase of $625,000.  

On December 9, 2024, City Council approved a contract with K2 Civil, Inc. to plow local streets.  The contract amount is not to exceed $450,000.  Due to the heavy snowfall this winter, the contract amount has been expended.  As of February 21, 2025, approximately $675,000 has been spent to plow the local streets four times.  Staff has presented the contract amendment to include the current overage of $225,000 as well as an additional $400,000 to cover another two snow events.  If the city does not experience additional snow events that trigger the activation of local street snow plowing, the additional $400,000 will not be expended. 

City Council may:

• Approve the contract amendment as presented which will allow for two additional plow events; or,
• Approve the contract amendment for a lower amount to cover the current invoices but not provide for additional events this year.  If the lower amount is approved, the City will not plow local streets in a large snow event.

The original contract is in an amount not to exceed $450,000.  As of February 21, 2025, approximately $675,000 has been spent which is $225,000 above the contract amount.  The amendment brings the not to exceed contract amount to $1,075,000 which is an increase of $625,000.  The total contract amount would pay for the four events that have already been experienced this winter as well as two additional events that may happen this winter.

The additional funds will be paid from operating reserves and staff will present rate options to City Council during the FY26 budget discussions.  The street maintenance fees would need to be increased in FY26 to restore the operating reserves or items would need to be cut from the budget.  An FY25 budget amendment will be required and will be presented at a future City Council meeting for approval.