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 and bids this work in three contracts: chip seal resurfacing, overlay resurfacing and crack sealing.  Chip sealing is an economical surface treatment designed to protect and prolong the life of the pavement.  This contract will provide a chip seal on approximately 4 miles of streets throughout the City. An attached map shows the locations of the proposed work. Staff opened bids on February 23, 2016, for the Work Order 16-03, Contract #3 City Chip Seal. The contract was advertised on February 11 and 18 in the Billings Times and on the City's website. Hardrives Construction Inc. submitted the lowest responsible bid.

The Council may:

• Award W.O. 16-03, Contract #3 City Chip Seal to Hardrives Construction Inc. in the amount of $298,030.00; or
• Do 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
Hardrives Construction Inc.	$298,030.00
Riverside Contracting, Inc.	$345,750.00
Knife River - Billings	$350,250.00
Pavement Maintenance Solutions, Inc.	$350,970.00
H.L. Ostermiller Const. Inc.	$389,161.40

The funding for the project was budgeted in FY16 and the source is gas tax and arterial funds.  The previously encumbered funds represent  the construction contract already approved by City Council for the overlay and crack seal projects.
 

Project Budget	$2,000,000.00
Previously Encumbered	$1,478,525.49
This Contract	$298,030.00
Budget Remaining	$223,444.51

Staff recommends the City Council award a contract for W.O. 16-03, Contract #3 City Chip Seal to Hardrives Construction Inc. in the amount of $298,030.00.