H7. Recommendation for Four Mile Drive Path Award4t%40%kib
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CITY OF
KALISPELL
MEMORANDUM
To: Doug Russell, City Manager
From: Keith Haskins, Deputy Director Public Works
Re: Recommendation for Award — Four Mile Drive Path Project
Meeting Date: 5/5/2025
BACKGROUND: In February 2023, the City of Kalispell entered into a Memorandum of
Understanding (MOU) with Kalispell National Investment Company, LLC, the developer of the
Bloomstone Subdivision. Under this agreement, the developer provided a cash -in -lieu payment
to fulfill the local match requirement for a Transportation Alternatives (TA) grant. The project
seeks to establish a critical path connection between KidSports and the existing shared -use path
along Four Mile Drive, which currently terminates into the roadway without a designated
crossing or connection to n
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Figure I - Current Conditions (Frontage west ofFoxglove has now been improved to City Standard)
In September 2023, the City was awarded a TA grant for the project. A formal agreement with
Montana Department of Transportation (MDT) for project funding and construction was
executed in February 2024. The construction cost, based on the Preliminary Engineering
Estimate submitted with the grant application, was set at $661,558. With design engineering,
construction engineering, and utility modifications included, the total project cost was estimated
at $83 1,3 10. The Bloomstone developer's cash -in -lieu payment covered the required 13.42%
local match for the grant.
Figure 2 - Proposed Projectfor Four Mile Drive
Following the TA program's procurement requirements, a request for proposals was distributed
to a shortlist of MDT -approved consultants. Robert Peccia and Associates (RPA) was selected
and awarded the engineering contract by City Council on May 6, 2024.
On March 11, 2025, MDT authorized the project for construction and allocated federal funds.
Bids were advertised on March 30, 2025, and opened on April 24, 2025. Four bids were
received, as summarized below:
Engineer's Estimate
Strods Contracting
Pinnacle Paving
S & L Underground, Inc
Knife River Corp.
Base Bid
$ 697,141.75
$1,054,906.00
$1,139,047.53
$1,146,431.25
$1,212,859.50
Additive Alt. 1
$ 20,265.75
$ 25,880.00
$ 32,194.41
$ 26,426.00
$ 23,376.50
Total
$ 717,407.50
$1,080,786.00
$1,171,241.94
$1,172,857.25
$1,236,236.00
The lowest responsive base bid, submitted by Strods Contracting, exceeds the Engineer's
Estimate by $357,764.25. A detailed review revealed that the retaining wall and handrail were
the primary cost drivers. Per TA grant guidelines, the Engineer's Estimate must fall within 15%
of the lowest responsive bid in order to proceed with award.
NEXT STEPS AND OPTIONS:
Following the bid opening, City staff met with RPA and MDT to discuss potential next steps.
Three options were discussed:
1. Revise the Engineer's Estimate and Increase Local Match: If RPA can justify the bid
prices as reflective of current market conditions, the Engineer's Estimate can be
amended. If the revised estimate falls within the 15% threshold, MDT may approve the
updated project cost. The City would be required to provide the additional local match
(13.42% of the cost increase).
2. Reject and Rebid the Project: This option would only be viable if the scope could be
reduced without altering the approved design or if minor design changes could
significantly reduce costs. However, potential cost savings —estimated at $40,000 to
$80,000—are insufficient to close the budget gap. Furthermore, the consistency of the top
201 Ist Avenue E I Phone (406)758-7720
PO BOX 1997 Public Works Department Fax (406)758-7831
Kalispell, NIT 59903 1 1 www.kalispell.com
three bids (within 10%) suggests that rebidding is unlikely to result in significant cost
reductions and could disenfranchise current bidders from bidding a second time.
3. Terminate the Project and Refund Grant Funds: This approach is not recommended,
as the path connection remains as a needed infrastructure improvement. Additionally, the
City would be responsible for reimbursing approximately $60,000 in grant funds already
expended to MDT.
RECOMNILENDATION: Option I is recommended. RPA has reviewed the bid items and
amended the Engineer's Estimate to $932,791.75, which brings it within the required 15%
margin. MDT has indicated that additional TA funds can likely accommodate the increased cost
if the City provides the additional local match. Based on Strods' bid, an additional $46,000 in
local funds is required. The City will also be responsible for quality control testing and any
contingency costs incurred during construction.
If awarded, staff will work with the contractor to pursue cost -saving adjustments, such as
eliminating the decorative concrete treatment and using a lighter -duty handrail, to reduce the
overall local match requirement.
REQUESTED ACTION: Authorize the award of the Base Bid contract to Strods Contracting in
the amount of $1,054,906.00, contingent upon MDT approval and availability of TA grant
funding for 86.58% of the total cost.
FISCAL EFFECTS:
0 Approximately $18,000 is available in unallocated Parks cash -in -lieu funds.
The remaining $28,000 would need to be drawn from the General Fund, which currently
has $30,000 in contingency available.
ALTERNATIVES:
• Proceed with Option 2 (Rebid) or Option 3 (Terminate), or
• Pursue an alternative approach as directed by City Council.
Enclosures: Amended Engineer's Estimate
201 Ist Avenue E I Phone (406)758-7720
PO BOX 1997 Public Works Department Fax (406)758-7831
Kalispell, NIT 59903 1 1 www.kalispell.com
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