Bids were received for SID 1370 - Interlachen, Phase II on September 14, 2010.  The project consists of street, curb/gutter, drive approach, and storm drain improvements to Lakewood Drive, Constellation Trail, and Keel Drive.  The City Council created SID 1370 at its September 13, 2004 meeting, with construction of Phase I being completed in the summer of 2006. 

The Council may:
• Award the contract for SID 1370 - Interlachen, Phase II to Knife River - Billings in the amount of $154,235.00; or 
• Reject all bids and do not award a contract for SID 1370 - Interlachen, Phase II.

The City received two bids for this project as follows:

Engineer's Estimate $125,000.00

Contractor	Base Bid
Knife River - Billings	$154,235.00
H.L. Ostermiller, Inc	$190,419.00

Costs associated with the improvements will be paid for by assessments levied against the properties with SID 1370 District boundry, and through the use of storm drain funds.  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 1370 is listed below:

SID 1370 Funding
SID Assessments	$  100,000.00
Storm Drain Funds	$    84,000.00
Contract Amount (this memo)	$(154,235.00)
Remaining Funds	$    29,765.00

Staff recommends that Council award the bid for SID 1370 - Interlachen Phase II to Knife River - Billings in the amount of $154,235.00.