On May 29, 2012 Council passed a resolution creating SID 1393 which will construct paved streets and storm drain improvements to the existing gravel streets within Fritz Subdivision.  This subdivision is located near Yellowstone River Road and Hawthorne.  The project was advertised on July 19th in the Billings Times, July 16th and 23rd in the Billings Gazette, and on the City's website. Bids were opened July 24th, 2012 and four bids were received.  Knife River - Billings submitted the lowest responsible bid.  The low bid is below the amount included in the SID creation.

 The Council may:
• Award SID 1393, to Knife River - Billings in the amount of $285,810.50; or
• Not award the contract to Knife River - Billings and reject all bids. If this project is not constructed, the SID will have to be repealed.

The following bids were received and evaluated:

Contractor	Bid Amounts
Knife River - Billings	$285,810.50
H.L. Ostermiller Construction, Inc.	$288,416.10
Harddrives Construction	$314,582.84
CMG Construction, Inc.	$325,185.00

The funding for the project was budgeted in FY'12 and the sources are SID and Gas Tax Funds. Since a portion of this project fronts City owned property, the City's contribution to this SID is 55.13%.  A summary of the funding is as follows:

Project Budget	$395,485.16
Encumbered Funds	$0
This Contract	$285,810.50
Project Budget Remaining	$109,674.66

Staff recommends the City Council award a contract for SID 1393 to Knife River - Billings in the amount of $285,810.50.