This project is part of the on-going Street Preventative Maintenance Program that has been in place since 1985. Annually, staff identifies streets proposed for preventative maintenance which typically includes chip/scrub seal resurfacing, overlay resurfacing, and crack sealing.  Chip/scrub sealing is an economical surface treatment designed to protect and prolong the life of the pavement and is typically used on local, collector, and low traffic volume arterial streets.  The project will provide a chip/scrub seal on approximately 16 miles of streets throughout the City. The attached maps show the locations of the proposed work. Staff opened bids on January 28, 2020, for the Work Order 20-03: Contract No. 1, City Chip Seal. The contract was advertised on January 10, 17, and 24 in The Yellowstone County News and on the City's website. Hardrives Construction, Inc. submitted the lowest responsible bid.

The Council may:

• Award W.O. 20-03: Contract No. 1, City Chip Seal, to Hardrives Construction, Inc. in the amount of $1,282,220.30; 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	Base Bid
Hardrives Construction Inc.	$1,282,220.30
Knife River - Billings	$1,296,962.55
Riverside Contracting Inc.	$1,943,158.40

The funding for the project was budgeted in FY21 in the gas tax and arterial funds.

Project Budget	$2,570,000.00
Previously Encumbered	$0.00
This Contract	$1,282,220.30
Budget Remaining	$1,287,779.70

Staff recommends the City Council award a contract for W.O. 20-03: Contract No. 1, City Chip Seal to Hardrives Construction Inc. in the amount of $1,282,220.30.