Bids were received for SID 1388 Dorothy Lane on June 29, 2010.  The project consists of street, curb/gutter, drive approach, and storm drain improvements to Dorothy Lane from Bench Boulevard to the ditch just west of Hawthorne Lane.  The City Council created the SID at its May 10, 2010 meeting.

The Council may:
• Award the contract for SID 1388 Dorothy Lane to H.L. Ostermiller Construction, Inc in the amount of $249,358.08; or 
• Reject all bids and do not award a contract for SID 1388.

The City received four bids for this project as follows:

Engineer's Estimate $366,000.00

Contractor	Base Bid
H.L. Ostermiller	$249,358.08
Riverside Sand and Gravel	$287,000.00
CMG Construction	$347,252.00
Knife River - Billings	$398,441.50

Costs associated with the improvements will be paid for by assessments levied against the properties with Dorothy Lane addresses. Funding also includes gas tax and storm drain funds. The gas tax will be used to pay for improvements in front of city property and to corner lots in accordance with the SID policy. The storm drain funds will be used for a portion of the overall storm drainage system to account for storm drainage from City property.  Any remaining funds for this project shall be used for construction administration, staking, and change orders. A breakdown of the project funds per the CIP and approved SID 1388 is listed below:

SID 1388 Funding
SID Assessments                         $378,326.91
Storm Drain Funds                       $36,793.06  
Gas Tax Funds                            $35,273.57
Contract Amount (This Memo)        $(249,358.08)
Remaining Funds                          $201,035.46

Staff recommends that Council award the bid for SID 1388 Dorothy Lane to H.L. Ostermiller Construction, Inc. in the amount of $249,358.08.