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Consent   1.A.2.
Regular City Council Meeting
Meeting Date:
06/08/2020
TITLE
W.O. 19-22, King Avenue East Orchard to Jackson Reconstruction, Bid Award
PRESENTED BY:
David Mumford
Department:
Public Works
Presentation:
No

PROBLEM/ISSUE STATEMENT

Work Order 19-22, King Avenue East Orchard to Jackson Reconstruction, is a project that will widen the section of King Avenue East from Orchard Lane to Jackson Street to a three-lane road.  In addition to the roadway widening, improvements include the installation of enhanced pedestrian facilities, roadway lighting, storm drainage and a water main extension. The project was advertised from April 10, 2020 to May 22, 2020 in the Yellowstone County News and on the City’s website.  Bids were opened on May 26, 2020 and three bids were received.  Knife River - Billings submitted the lowest, responsible bid.

Staff is requesting that award of this bid be contingent upon the City receiving formal approval from the Montana Transportation Commission.  State law and the MDT process currently requires that projects constructed on the Urban Route network get Transportation Commission approval before starting the work.  Approval from MDT is expected to occur on June 25, 2020.  If the City were to wait until after MDT's formal approval on June 25th to award a contract, construction would extend well into the fall and be more impactful to Ponderosa Elementary School.  By providing contingent award of this bid, construction can begin sooner and impacts to Ponderosa Elementary will be fewer.    
 

ALTERNATIVES ANALYZED

The Council may:
  • Award W.O. 19-22, King Avenue East Orchard to Jackson Reconstruction, to Knife River - Billings in the amount of $2,227,200.00, contingent on Montana Transportation Commission approval; or
  • Do not award a contract and reject all bids.  If the project is not awarded, reconstruction of this roadway will need to occur at a later date. 

FISCAL EFFECTS

The following bids were received:
Contractor Base Bid
Knife River - Billings $2,227,200.00
FirstMark Construction $2,513,999.00
KLE Construction, LLC $2,699,665.00

The project was budgeted in FY20 using South Tax Increment Financing District (TIFD) and water funds.  The amount budgeted was $1,350,000.00.  After initial data was collected, it was evident that the project required work beyond the scope that was anticipated when the budget amount was estimated.  The majority of the overage was due to multiple high pressure gas lines that are in conflict with the storm system and require over a half of a mile of new storm line to be added.  Also, the original intent was to overlay the existing asphalt; however, after geotechnical evaluation, it was determined that the entire subgrade needed to be replaced and a geogrid added into the section for stability and longevity.  When the project was presented to Council at 30% design, the estimate given to Council was $2,500,000.  Budget authority is adequate to award this project and the South TIFD Fund has sufficient cash for the project.
 

RECOMMENDATION

Staff recommends the City Council award a contract for W.O. 19-22, King Avenue East Orchard to Jackson Reconstruction, contingent on Montana Transportation Commission approval, to Knife River - Billings in the amount of $2,227,200.00.