This project is part of the ongoing Street Preventative Maintenance Program supported by the City Council since 1985. Annually, staff identifies streets proposed for preventative maintenance. Staff bids this work in three contracts: chip seal resurfacing, overlay resurfacing and crack sealing. This contract will provide a chip seal on approximately 20 miles of streets throughout the City. An attached map shows the locations of the proposed work.

Staff opened bids on March 26, 2013, for the Work Order 13-03, City Chip Seal. The contract was advertised on March 7th, 14th, and 21st in the Billings Times and on the City's website. Three bids were received for this project and Knife River submitted the lowest responsible bid.

The Council may:

• Award W.O. 13-03, City Chip Seal to Knife River in the amount of $839,252.35 ; or
• Not award a contract and reject all bids.  If this project is not awarded, the deferred maintenance of City streets will increase.   

The following bids were received and evaluated:

Contractor	Bid Amount
Knife River	$839,252.35
Hardrives Construction	$847,787.02
Intermountain Slurry Seal	$930,838.27

The funding for the project was budgeted in FY13 and the source is gas tax funds.

Project Budget	$2,600,000.00
Previously Encumbered	$1,311,255.89
This Contract	$839,252.35
Budget Remaining	$449,491.76

Staff recommends the City Council award a contract for W.O. 13-03, City Chip Seal to Knife River in the amount of $839,252.35.