E2. Fermenter and EQ Basin Bid Rejection MemoCITY OF
KALISPELL
MEMORANDUM
To: Doug Russell, City Manager
From: Susie Turner, PE, Director of Public Works
Re: WWTP Equalization Basin (EQ) Expansion and Fermenter Rehabilitation
Projects
Meeting Date: Febuary 20, 2024
BACKGROUND: The Waste Water Treatment Plant (WWTP) Equalization Basin (EQ)
Expansion and Fermenter Rehabilitation Projects generally consists of expanding the
equalization basin with the construction of a circular tank, small lift station and piping, and
rehabilitation of the existing fermenter.
BIDDING RESULTS: Bids were opened on Febuary 8, 2024, at City Hall. Two responsive bids
were received from S & L Underground, Inc. from Bonner Ferry, ID and Prospect Construction
from Missoula, MT. Below is a summary of bid amounts for each bid schedule. Schedule 1 is
for the Fermenter Rehabilitation and Schedule 2 is for the EQ Basin Expansion. Bid totals are
listed from high to low and summarized as follows:
Schedule 1
Schedule 2
Contractor
Fermenter
EQ Basin
Rehabilitation
Expansion
S & L Underground, Inc.
No Bid
$10,978,943
Bonners Ferry, ID
Prospect Construction
No Bid
$7,862,844
Missoula, MT
Engineers Estimate
$1,596,000
$3,839,000
HDR, Inc.
There were no bids received for the Fermenter Rehabilitation and the contractor's cost to
complete the EQ Basin Expansion exceeds the engineers cost estimate by $4,023,844. The
engineer's cost estimate used recent bid costs for similar projects across the State, however there
were significant cost differences between the engineer and contractor bid amounts for the piping
materials, structural pilings, and tank construction.
RECOMMENDATION: Considering the higher -than -expected bids, the FY 24 budgeted
amount for the project, and the information received from the bidder, staff recommends
investigating different engineering and bidding specifications and rebidding the projects at a later
date.
201 1' Avenue E IPhone (406)758-7720
PO Box 1997 Public Works Department Fax (406)758-7831
Kalispell, MT 59903 1 www.kalispell.com
FISCAL EFFECTS: None at this time. FY 24 budget and funding allocations were as follows:
Fermenter — WWTP Fund
• Total $2,891,961
• $1,000,000 ARPA Grant
• $216,461— Line Item 922 Fermenter Reconstruction
• $1,675,500 State Revolving Loan (SRF) — Line Item 922 Construct New Fermenter (rehab)
EQ Basin - WWTP Fund/Impact Fee Fund
• Total $2,731,453
• $216,453 Sewer System Impact Fee - Line Item 929 Construct New EQ Basin
• $2,515,000 WWTP— Line Item 933 Construct New EQ Basin (State Revolving Loan (SRF))
ACTION REQUESTED: Motion to reject all bids for the WWTP Equalization Basin (EQ)
Expansion and Fermenter Rehabilitation Project.
ALTERNATIVES: As suggested and approved by the City Council.
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