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Item 1.A.5.
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| City Council Regular | |
| Date: | 02/13/2023 |
| Title: | W.O. 23-03: Contract No. 2 City Chip Seal, Bid Award |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review | Not Applicable |
RECOMMENDATION
Staff recommends the City Council award a contract for W.O. 23-03 Contract 2 City Chip Seal Schedule 1 to Hardrives Construction, Inc. in the amount of $590,700.66.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The Contract 2 City Chip Seal project is part of the ongoing Street Preventative Maintenance Program in place since 1985. Annually, staff identifies streets proposed for preventative maintenance that includes pavement patching (digouts), 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 a pavement. The project was bid with two schedules. Schedule 1 will chip/scrub seal King Avenue East (Parkway Lane to Orchard Lane) and Rehberg Lane (Rimrock Road to Grand Avenue). Schedule 2 will chip seal Hallowell Lane (King Avenue East to State Avenue). Staff is recommending that Council award Schedule 1 and not Schedule 2. Schedule 2 is a South Billings Urban Renewal project and the bid amount is more than two times the budgeted amount. Staff proposes combining the Hallowell Lane chip seal with the larger 2024 City-wide chip seal project that will provide pricing closer to the budgeted amount. The attached map shows the locations of the proposed work.
The contract was advertised on November 25, December 2, 9, and 16, 2022, in The Yellowstone County News and on the City's website. Staff opened bids on December 20, 2022, for W.O. 23-03 Contract 2 City Chip Seal. There were two bids received. Hardrives Construction, Inc. submitted the lowest responsible bid.
The contract was advertised on November 25, December 2, 9, and 16, 2022, in The Yellowstone County News and on the City's website. Staff opened bids on December 20, 2022, for W.O. 23-03 Contract 2 City Chip Seal. There were two bids received. Hardrives Construction, Inc. submitted the lowest responsible bid.
ALTERNATIVES
City Council may:
- Award W.O. 22-03 Contract 2 City Chip Seal, to Hardrives Construction, Inc. in the amount of $590,700.66; or,
- Do not award a contract and reject all bids. If the contract is not awarded, the streets planned for maintenance will continue to degrade.
FISCAL EFFECTS
The following bids were received:
The project was budgeted in FY23 using Street Maintenance District II funds. The amount budgeted for the Public Works PAVER project was $2,750,000.00. Approximately $65,000 was budgeted for Schedule 2. The remaining funds will be used for Contract 1 City Overlay, Contract 3 City Digouts, and the administration portion of the program.
| Contractor | Schedule 1 | Schedule 2 |
| Hardrives Construction, Inc. | $590,700.66 | $120,568.75 |
| Knife River | $756,570.40 | $209,736.00 |
The project was budgeted in FY23 using Street Maintenance District II funds. The amount budgeted for the Public Works PAVER project was $2,750,000.00. Approximately $65,000 was budgeted for Schedule 2. The remaining funds will be used for Contract 1 City Overlay, Contract 3 City Digouts, and the administration portion of the program.