Staff recommends that the City Council approve and award the Airport's West Taxilane Extension Project to Knife River - Billings for $810,358.50.

In 2016, the Airport's staff started developing a future hangar site on the west end of the Airport to accommodate larger corporate style hangars, which the Airport lacked space for.  The Airport invested in this plan and constructed a new 550 foot taxilane and developed the east side of that taxilane by installing 33,000 square feet of aircraft parking ramp, 1,400 feet of access roads, and 600 feet of water main lines.  Due to a number of economic factors, including the COVID pandemic, the site has sat dormant for the past five years.  Recently, there has been a lot of interest from companies wanting to build larger 120' x 100' commercial hangars in this area.  The existing 550 foot taxilane that was constructed in 2016 will only serve three of the four new large hangars that are scheduled to be built this coming Summer.  In order to accommodate additional hangar sites, approximately 325 feet of new pavement, drainage, and culverts will need to be added onto the existing taxilane to the south, which will allow the Airport to provide room for another six large hangars.  Developable land at the Airport is becoming less available and with the increased building activity for large aircraft hangars, this taxilane extension is needed for future growth and development.

This project was advertised in the Yellowstone County News on April 1, 8, and 15, 2022, and posted on the City and Airport's Websites.  On April 19, 2022, the following bid was received:

CONTRACTOR                              BID
Knife River - Billings                       $810,358.50

Although the Airport only received one bid on this project, it came in under the Engineer's estimate of $876,929.

City Council may:

• Approve the award of the West Taxilane Extension Project to Knife River - Billings for $810,358.50; or
• Decline to approve the award, reject the bid, and delay the project.

The bid for this project is $810,358.50.  This project will be funded 90% with Federal Aviation Administration (FAA) Airport Improvement Program (AIP) entitlement grant funds and 10% with local match funds.  The FAA's grant funding will be $729,322.65 and the City's local match will be $81,035.85.  The local match funds are budgeted and available in the Airport's Capital Account.