E2. Postpone Bid Award for Water Tank and WellCITY OF
KALISPELL
MEMORANDUM
To: Doug Russell, City Manager
From: Susie Turner, PE, Director of Public Works
Re: Kalispell Water System Tank and Wells Project
Meeting Date: April 3, 2023
BACKGROUND: In June of 2020, Public Works initiated engineering services including
analysis, property procurement, design, and construction engineering for new well facilities,
transmission main, and a water tower to service growth expansion as designated in the 2018
Kalispell Water Facility Plan. Additionally, in 2021 Public Works initiated engineering service
to replace the Noffsinger water supply with the North Main Well facility.
The water system projects were combined for design and bidding purposes and includes (4)
schedules, as follows:
Schedule 1: Sheepherder Tank Control Valve Building will be in place to control flow to and from
the Sheepherder Tank and is to be located in the Upper Pressure Zone (UPZ) on West Spring Creek
Road between Two Mile Drive and Three Mile Drive in Kalispell, MT.
Schedule 2: Utility Lot 2; 1 MG Elevated Storage Tank and Well includes the construction of a 1
MG elevated tank in the UPZ, well building, and the completion of the PWS well. Utility Lot 2 is
located adjacent to and east of US Highway 93 approximately 0.60-miles north of Rose Crossing
in Kalispell, MT. Schedule 2 includes two (2) additive alternates for the water main connection,
only one of which will be awarded.
Schedule 3: Utility Lot 3; Four Mile Drive Water Well includes construction of a well building
and well completion of the PWS well. Utility Lot 3 is located adjacent to and south of Four Mile
Drive approximately 0.50-miles west of Stillwater Road in Kalispell, MT.
Schedule 4: North Main Well includes construction of a well building and well completion of the
PWS well located in the Lower Pressure Zone (LPZ). The North Main Well site is located adjacent
to North Main Street near the entrance of the Buffalo Hills Golf Course in Kalispell, MT.
201 1" Avenue E Phone (406)758-7720
Po Box 1997 Public Works Department Fax (406)758-7831
Kalispell, MT 59903 1 1 www.kalispell.com
BIDDING RESULTS: Bids were received and opened on March 28, 2023. A total of two bidders
submitted bids for the project. A technical summary of the bids received for each schedule is
provided within the attached RPA Technical Memorandum. The apparent low bid per schedule
and additive alternate is as follows:
Landmark
S & L
Structures
Underground,
Engineer's Est.
Inc.
Schedule 1
$2,179,500
$1,416,833
Schedule 2
$11,954,000
$7,832,000
Schedule 2 Add Alternate #1
$508,000
$310,730
Schedule 3
$2,738,832
$2,217,655
Schedule 4
$2,471,184
$1,901,487
Bids were reviewed for irregularities and references were validated for all the apparent low bidders
listed above in the table. Landmark Structures and S & L Underground are determined to be
responsive and responsible contractors successfully completing similar projects.
The contractors' cost to complete all four schedules and add Alt 91 exceeds the engineer's cost
estimate by $6,172,811. The engineer's estimate was updated in February 2023 and costs were
provided from reputable vendors and contractors.
FISCAL EFFECTS:
The project's FY 23 funding sources and budget allocations are described as follows:
City FY 23 Funding Source
Amount of Funding
Schedule 1, Schedule 2,
Schedule 2 Add
Alternate #1, Schedule 3
(SRF Loan) Bonded Debt— 1 MG
Storage Tank and Wells
$11,062,000
(construction, contingency, reserves and bond council
only)
Water Fund Line Item 954: 1MG
Storage Tank & Well
$1,241,048
Water Impact Fee Fund Line Item
954: 1MG Storage Tank & Well
$493,868
TOTAL =
$12,796,916
Project Cost Items
Costs FY 23
Professional Services, Utility Relocated, Well Development
$1,743,277
Construction (without contingency)
$17,380,332
TOTAL =
$19,123,609
As it stands, without adding construction contingencies, the projected project costs for Schedules
1, 2, 2 Add 91, and 3 are $6,326,693 above the FY 23 allocated funds.
City FY 23 Funding Source 0
Amount of Funding
— Line Item 925: North Main Well —
Replacement
$2,124,968
Schedule 4
— Line Item 355: Noffsinger
n Condition Assessment
tARPA
$140,872
mpetitive Grant
$1,000,000
TOTAL =
$3,265,840
Project Cost Items
Costs FY 23
Professional Services, Utility Relocated, Well Development
$815,726
Construction (without contingency)
$2,471,184
TOTAL =
$3,286,910
2 1 P a g e
As it stands, without adding construction contingencies, the projected project costs for schedule
4 are $21,070 above the FY 23 allocated funds.
RECOMMENDATION: City staff requests additional time to review the funding alternatives
with stakeholders and discuss project findings and alternatives with City Council at the April 10,
2023, Work Session prior to providing award recommendations.
ACTION REQUESTED: Motion to postpone action for all schedules and all additive alternates
until the April 17, 2023, Council Meeting.
ALTERNATIVES: As suggested and approved by the City Council.
ATTACHMENTS: RPA Technical Memorandum: Engineer of Record Bid Analysis and
Recommendation.
201 lst Avenue E Phone (406)758-7720
Po Box 1997 Public Works Department Fax (406)758-7831
Kalispell, MT 59903 1 1 www.kalispell.com
0
PLANNING
TO: Susie Turner
City of Kalispell
Director of Public Works
FROM: Kaela Murphy, PE and Brad Koenig, PE
Project Engineers
DATE: March 29, 2023
SUBJECT: 2023 Kalispell Tank and Wells Project Summary of Bids Received
Project Overview
The 2023 Kalispell Tank and Wells Project includes four (4) schedules. Schedule 2 includes two (2)
additive alternates.
Schedule 1: Sheepherder Tank Control Valve Building will be in place to control flow
to and from the Sheepherder Tank and is to be located in the UPZ on West Spring Creek
Road between Two Mile Drive and Three Mile Drive in Kalispell, MT.
Schedule 2: Utility Lot 2; 1 MG Elevated Storage Tank and Well includes the
construction of a 1 MG elevated tank in the UPZ, well building, and the completion of the
PWS well. Utility Lot 2 is located adjacent to and east of US Highway 93 approximately
0.60-miles north of Rose Crossing in Kalispell, MT. Schedule 2 includes two (2) additive
alternates for the water main connection, only one of which will be awarded.
Schedule 3: Utility Lot 3; Four Mile Drive Water Well includes construction of a well
building and well completion of the PWS well. Utility Lot 3 is located adjacent to and south
of Four Mile Drive approximately 0.50-miles west of Stillwater Road in Kalispell, MT.
Schedule 4: North Main Well includes construction of a well building and well completion
of the PWS well located in the LPZ. The North Main Well site is located adjacent to North
Main Street near the entrance of the Buffalo Hills Golf Course in Kalispell, MT.
Bid Opening
Bids were received on March 28, 2023, and opened through QuestCDN at 2:00 PM., local time, in the 1st
Floor Conference Room at City Hall in Kalispell, MT. A total of two (2) bidders submitted bids for the
project. All were complete and all required items were submitted with each bid. This memorandum
summarizes the bid received for the 2023 Kalispell Tank and Wells Project.
406.447.5000
3147 Saddle Dr. Helena, MT 59601
www.rpa-hln.com
HELENA KALISPELL,
March 29, 2023
Summary of Bids Received
The Summary of Bids is attached to this memorandum.
SCHEDULE 1:
One (1) bid was received for Schedule 1. The bid for Schedule 1 is 53.8% higher than the Engineer's
Estimate. No bid irregularities were found. The low bidder for Schedule 1 is S & L Underground, Inc.
Two (2) bids were received for Schedule 2. The bids for Schedule 2 ranged from 52.6% higher to 73.7%
higher than the Engineer's Estimate. No bid irregularities were found. The low bidder for Schedule 2 is
Landmark Structures.
SCHEDULE 2 ADDITIVE ALTERNATE #1:
This alternate includes installation of piping north of Utility Lot 2 and connection to the existing transmission
main west of Highway 93. All bidders who submitted a bid on Schedule 2 were required to submit a bid on
Additive Alternate #1.
Two (2) bids were received for Additive Alternate #1. The bids for Additive Alternate #1 ranged from 14.2%
higher to 63.5% higher than the Engineer's Estimate. No bid irregularities were found. If awarded, the
Schedule 2 Additive Alternate #1 would be awarded to the low bidder for Schedule 2, Landmark Structures.
SCHEDULE 2 ADDITIVE ALTERNATE #2:
This alternate includes installation of piping south of Utility Lot 2 and connection to the existing main at the
intersection of Eagle Valley Ranch Road and Highway 93, east of Highway 93. All bidders who submitted
a bid on Schedule 2 were required to submit a bid on Additive Alternate #2.
Two (2) bids were received for Additive Alternate #2. The bids for Additive Alternate #2 ranged from 5.6%
lower to 15.3% higher than the Engineer's Estimate. No bid irregularities were found. If awarded, the
Schedule 2 Additive Alternate #1 would be awarded to the low bidder for Schedule 2, Landmark Structures.
SCHEDULE 3:
One (1) bid was received for Schedule 3. The bid for Schedule 3 is 23.5% higher than the Engineer's
Estimate. No bid irregularities were found. The low bidder for Schedule 3 is S & L Underground, Inc.
L"TOMMMINl■yR
One (1) bid was received for Schedule 4. The bid for Schedule 4 is 30.0% higher than the Engineer's
Estimate. No bid irregularities were found. The low bidder for Schedule 4 is S & L Underground, Inc.
Page 2 of 3 RM
March 29, 2023
Award Options
The City of Kalispell has the following options available in terms of awarding a contract for this project.
1. Accept the bid received as received and award each Schedule individually. If Schedule 2 is
awarded the City can award Additive Alternative #1, Additive Alternative #2, or both of the
Additive Alternatives.
2. Reject the bids and re -bid the project at a later date.
Recommendation of Award
Prior to advertisement of the bid, RPA spent a substantial amount of time preparing detailed cost estimates
for all four (4) Schedules of the 2023 Kalispell Tank and Wells Project. Material costs were gathered from
various suppliers in January and February 2023 to provide an accurate up-to-date cost estimate for the
project. In talking with DEQ it is evident that these bid prices are not out of the ordinary given the current
bidding environment. The difference in bids compared to the engineer's estimate appears to be due to the
volatile construction market and the large amount of work available to contractors. Given the difference
between the quoted material prices and the bid prices, we don't feel that value engineering would result
in large returns.
The project could certainly be re -bid; however, there is a possibility that bids may be higher or lower than
the current bids. There is also a possibility that the City may not receive any bids if the project is re -bid.
Additionally, Schedule 4 includes ARPA funding which includes deadlines that must be met to ensure use
of funding.
After discussing the bid results with Susie Turner, Director of Public Works, RPA recommends that the
City of Kalispell further review the City's budget and financial position and spend additional time dissecting
the bid results to determine what will be most beneficial for the City before considering award of any of the
four (4) Schedules of the 2023 Kalispell Tank and Wells Project.
Attachment
Page 3 of 3 EW
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