Staff opened bids on January 26, 2016, for the 2016 Street Maintenance Program, City Overlay Contract. The contract was advertised on January 14th and the 21st in the Billings Times and on the City's website.  Knife River submitted the only bid and after review by staff, it was deemed to be a responsible bid.  This project is part of the on-going 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 an overlay on approximately 2.4 miles of City streets.

The streets being addressed with this contract are portions of Grand Avenue, Nutter Blvd, and S 24th St W.  A work location map for this project is attached.

The Council may:

• Award W.O. 16-03 Contract #2 City Overlay to Knife River in the amount of $1,328,180.30; or
• Not award the contract to Knife River and reject all bids.  If the contract is not awarded, the streets planned for maintenance will continue to degrade.

The following bid was received and evaluated:

Contractor	Base Bid
Knife River	$1,328,180.30

The funding for the project was budgeted in FY16 and the source is gas tax funds.

Project Budget	$2,000,000
Previously Encumbered	$150,345.19
This Contract	$1,328,180.30
Budget Remaining	$521,474.51

Staff recommends the City Council award a contract for W.O. 16-03 Contract #2 City Overlay to Knife River in the amount of $1,328,180.30.