W.O. 13-15 Calhoun Lane Improvements is a project to reconstruct Calhoun and Simpson and is mostly funded by TIF funds from the SBURD. The improvements on Calhoun will include a reconstructed street and overlay to provide two travel lanes, a two way left turn lane, and bike lanes between Underpass Ave and King Ave East. Simpson Street improvements will include a reconstructed street. On both streets, new sidewalk and corner radii will be constructed. The project was bid with three schedules. Schedules 1 and 2 are the Base Bid. Schedule 3 is an additive alternate for the street lighting conduit that was added at the Council's request. Staff opened bids on March 24, 2015. The contract was advertised on February 26th and March 5th, 12th, 19th in the Billings Times and on the City's website. Knife River submitted the lowest responsible bid.

The Council may:

• Award W.O. 15-03, Calhoun Lane Improvements to Knife River in the amount of $2,515,778.83 for the Base Bid (Schedules 1 & 2); or award the Base Bid + Additive Alternate Schedule 3 in the amount of $2,524,978.83; or 
• Do not award a contract and reject all bids.  If this project is not awarded, Calhoun Lane and Simpson Street will not be reconstructed.   

The following bids were received and evaluated:

Contractor	Base Bid (Sch. 1 & 2)	Schedule 3	Base Bid + Sch. 3
Knife River - Billings	$2,515,778.83	$9,200	$2,524,978.83
CMG Construction, Inc.	$2,599,187.00	$10,250	$2,609,437.00
JEM Contracting, Inc.	$2,752,683.10	$10,200	$2,762,883.10

The funding for the project was budgeted in FY15 and the sources are TIF funds with CTEP, Water, Sewer, and Gas Tax. 

Project Budget	$2,579,920
Previously Encumbered	$13,934
This Contract	$2,515,778.83
Budget Remaining	$50,207.17

Staff recommends the City Council award a contract for W.O. 13-15, Calhoun Lane Improvements to Knife River in the amount of $2,515,778.83 pending CTEP approval and not award Schedule 3. Staff recommends not awarding Schedule 3 for the following reasons: 1. The SILMD 314 had significant protest and was not created. 2. TIF Funds are being used to pay for the project and the SBURA is requesting that the conduit be omitted. 3. Empty conduit can be difficult to locate and cut or broken from adjacent landowners or utilities causing blockages making them unusable. 4. Conduit can be installed later with a possible future street light project.