One of the projects in the City's approved Capital Improvement Program is the Terminal Circle Road Rehabilitation Project. The pavement on the road is over 20 years old and is starting to deteriorate and break up. This project will remove one and one-half inches of pavement surface and replace it with new asphalt pavement. Additionally, the asphalt pavement in the Airport Administrative parking lot, east of the Terminal, will be removed and replaced with new pavement. This project has to be planned to ensure one lane of traffic is always open on the Terminal Circle Road and access in and out of the parking lots will not be affected. The majority of the work on this project will be performed at night. This project was advertised for three weeks in The Billings Times and on the City's Website. The bids were opened on February 14. On February 27, the City Council delayed the contract award until March 12. The following four bids were received for this project:

Contractor	Bid
Knife River	$207,279.95
Riverside Sand & Gravel	$235,649.00
H.L. Ostermiller Construction	$277,640.20
Hardrives	$646,308.71

The City Council may:

• Approve the award for the Terminal Circle Road Rehabilitation Project; or
• Decline to approve the award of the Terminal Circle Road Rehabilitation Project and reject all bids.

The low bid for the Terminal Circle Road Rehabilitation project is $207,279.95. The funding for this project is in the Airport's Capital fund.

Staff recommends the City Council accept the low bid and award the contract  for the Terminal Circle Road Rehabilitation Project to Knife River for the amount of $207,279.95.