The purpose of this project is to reconstruct streets near Exposition Drive between 1st Avenue North and 4th Avenue North in accordance with the Billings Exposition Gateway Concept Plan.  The streets included in this project are 3rd Avenue North between Exposition Drive and North 11th Street, 2nd Avenue North between North 9th Street and North 11th Street, North 9th Street between 1st Avenue North and 3rd Avenue North, and North 10th Street between 1st Avenue North and 4th Avenue North.  The improvements include water, sanitary sewer, storm drain and street improvements.  Staff requested the services of an engineering firm to provide design services for the project and Sanderson Stewart was selected through the Request for Proposals (RFP) process.  Other firms considered were KLJ and DOWL HKM.  The contract amount is $297,178.    

The Council may:

• Award the Contract for Professional Services to Sanderson Stewart; or 
• Do not award the contract.  If the contract is not awarded, the construction of the improvements will be delayed. 

The cost of design services is $297,178.  The cost of the contract will be paid out of the following:

• East Billings TIF Funds      $250,000.00
• Water Funds                       $30,193.92
• Gas Tax                              $16,984.08

City Council approved the release of East Billings TIF Funds to be used project design at the August 11, 2014 City Council Meeting. There is enough cash and budget authority in the TIF Fund to accommodate this expense.  However, a budget amendment will be needed later in the year in order to accommodate other predicted expenses.

Staff recommends that Council authorize the Mayor to execute a Contract for Professional Services with Sanderson Stewart for $297,178 for engineering design.