E4. Award Lower Zone Storage Tank 2 ProjectCITY OF
KALISPELL
MEMORANDUM
To: Jarod Nygren — Interim City Manager
From: Keith Haskins, PE — Deputy Director Public Works
CC: Susie Turner, PE — Public Works Director
Re: Lower Zone Storage Tank 2 Replacement Project
Meeting Date: 10/20/2025
BACKGROUND:
The Lower Zone Storage Tank 2 Replacement Project generally consists of furnishing materials, labor,
and equipment required to replace the existing 2.7 MG water reservoir which has a failing timber roof and
reconstruct a 2.5 MG water reservoir and its surrounding infrastructure. The project includes demolition
of the existing structure, site utility modifications, and construction of a new prestressed concrete 2.5 MG
water storage tank.
BIDS RECEIVED:
Bids were received and opened on October 9, 2025, at 2:00 PM. Two responsive bids were received as
summarized below.
Contractor Base Bid
Preload, LLC $7,040,000.00
DN Tanks, LLC $8,411,500.00
Engineer Estimate $7, 270, 800.00
FISCAL EFFECTS:
The project was budgeted from the following line items:
Budget
Fund
Description
Amount
5210-447-430550-969
Water
Lower Zone Reservoirs Roof Rep
$ 2,994,636.00
5210-447-430551-971
Water
Lower Zone Reservoirs #2 Replac
$ 5,973,575.00
STAFF RECOMMENDATION:
MMI Engineering, the engineer of record for the City, reviewed the bids, the submitted documentation,
and submitted references. Based on their review, Preload LLC was determined to be a responsive and
responsible contractor who has successfully completed similar projects of size and scope, including the
nearly identical Reservoir 1 tank for Kalispell which is currently nearing successful completion. Based on
MMI's evaluation and review of the bid and references, staff recommends awarding the bid to Preload,
LLC.
201 1st Avenue E Phone (406)758-7720
Po Box 1997 Public Works Department Fax (406)758-7831
Kalispell, MT 59903 1 1 www.kalispell.com
ACTION REQUESTED:
Motion to award the Base Bid to Preload LLC in the amount of $7,040,000.00
ALTERNATIVES:
As suggested and approved by the City Council.
ATTACHMENTS:
Engineer's Recommendation to Award Letter (MMI Engineering); Lower Zone Storage Tank
Replacement Reservoir 2 Recommendation of Award; October 14, 2025
Morrison
Maierle
engineers surveyors planners scientists
TO:
Susie Turner, P.E., Public Works Director
FROM:
Jeff Cicon, P.E.
DATE:
October 14, 2025
JOB NO.:
0387.058
memo
RE: Lower Zone Storage Tank Replacement Reservoir 2 Recommendation of Award
❑Urgent El For Review ❑Please Comment ❑Please Reply ®For Your Use
Background:
The Lower Zone Storage Tank Replacement Reservoir 2 Project generally consists of the construction of a
new 2.5 million -gallon (MG) prestressed concrete storage reservoir located on Buffalo Hill in Kalispell. The
project includes demolition of the existing 2.7 MG reservoir, site preparation, utility modifications, and
construction of the new reservoir. The basis for the recommendation to install a new tank was determined
in an alternative analysis report completed in April 2023.
Bidding Results:
Bids were received on October 9, 2025, and read aloud at 2:00 p.m. at City Hall. Two responsive bids were
received from Preload, LLC ("Preload") of Louisville, KY and DN Tanks, LLC ("DN Tanks") of Grand Prairie,
TX. Below is a summary of bid amounts. Bid totals are listed low to high and summarized as follows:
Schedule 2:
Contractor
Reservoir 2
(2.5 MG)
Preload, LLC
$7,040,000
Louisville, KY
DN Tanks, LLC
$8,411,500
Grand Prairie, TX
Engineers Estimate
$7,270,800
Morrison-Maierle, Inc.
The low bid of $7,040,000 is below the Engineer's Estimate by $230,800. Morrison-Maierle has previous
work experience with Preload on the City of Kalispell Lower Zone Reservoir 1 Project, currently under
construction. We also have previous work experience with Preload's site work and utility contractor, LHC,
Inc. of Kalispell, MT. Preload's qualification questionnaire shows they have completed recent projects of
similar size and scope and are qualified to complete this project. No references were contacted; however,
two references were contacted as part of the Lower Zone Reservoir 1 Project, and there were no concerns
with Preload constructing this type of work.
Since this is a specialized rehabilitation project, the number of qualified contractors is limited, and
receiving only two bids was not unexpected.
Page 1
Lower Zone Storage Tank Replacement Reservoir 2 Recommendation of Award Morrison
Maierle
Potential Cost Saving Alternatives
No cost -saving alternatives have been identified for this project.
Award Options
The City has the options available in terms of awarding a contract for this project:
1. Award Schedule 2: Reservoir 2 in the amount of $7,040,000 to Preload, LLC.
2. Reject all bids and re -bid the project at a later date.
Recommendation
Morrison-Maierle believes that the low bid amount of $7,040,000 is a competitive bid and that the City is
not likely to see a lower bid should the project be bid at a later date. Based on the qualification information
submitted with their bid and reference checks, Preload is competent and capable of completing the
proposed work. If considered appropriate by the City, it would be the recommendation of Morrison-
Maierle to award the contract to Preload, LLC.
Page 2
Lower Zone Storage Tank Replacement -Schedule 2: Reservoir 2 (N9869547)
Owner: Kalispell MT, City of
Solicitor: Morrison-Maierle
10/09/2025 02:00 PM MDT
N0 Morrison
Maierle
engin e s su v planners s.ien�isis
Engineer Estimate
Preload, LLC
DN Tanks
Item Code Item Description
UofM
Quantity
Unit Price
Extension
Unit Price
Extension
Unit Price
Extension
General and Surface Restoration
201
Mobilization/Demobilization
LS
1
$477,000.00
$477,000.00
$350,000.00
$350,000.00
$326,700.00
$326,700.00
202
Construction Surveying
LS
1
$30,000.00
$30,000.00
$35,000.00
$35,000.00
$0.00
$0.00
203
Construction Traffic Control
LS
1
$5,000.00
$5,000.00
$15,000.00
$15,000.00
$10,400.00
$10,400.00
204
Exploratory Excavation
HR
20
$900.00
$18,000.00
$800.00
$16,000.00
$1,130.00
$22,600.00
205
Site Preparation
LS
1
$315,000.00
$315,000.00
$110,000.00
$110,000.00
$149,100.00
$149,100.00
206
Demolish Existing Tank, Booster
Building, and Utilities
LS
1
$350,000.00
$350,000.00
$315,000.00
$315,000.00
$516,500.00
$516,500.00
207
Asbestos Abatement - AC Pipe
LS
1
$10,000.00
$10,000.00
$19,000.00
$19,000.00
$27,100.00
$27,100.00
209
Utility Crossing
EA
1
$1,700.00
$1,700,00
52,000.00
$2,000.00
$2,510.00
$2,510.00
210
Asphalt Surface Restoration
LS
1
$30,000.00
$30,000.00
57,500.00
$7,500.00
$6,500.00
$6,500.00
210A
Logan Health Asphalt and Concrete
Surface Restoration
Sci Yell
1203
$0.00
$0.00
$37.00
$44,511.00
$60.00
$72,180.00
211
Landscape, Topsoil, and Reseed
LS
1
$100,000.00
$_00,000.00
$60,000.00
$60,000.00
$77,900.00
$77,900.00
212
Site Electrical
LS
1
$40,000.00
$40,000.00
$30,000.00
530,000.00
$29,400.00
$29,400.00
Water Main
213
12" Connection to Ex. Cast Iran Pipe
EA
1
$2,100.00
$2,100.00
$2,000.00
$2,000.00
$2,190.00
$2,190.00
214
12" Connection to Ex. HDPE Pipe
EA
1
$3,000.00
$3,000.00
$2,000.00
$2,000.00
$2,600.00
$2,600.00
215
12" DR18 C900 PVC Water Main
LF
250
$300.00
$75,000.00
$210.00
$52,500.00
$290.00
$72,500.00
216
12" MJ Gate Valve
EA
1
$5,000.00
$5,000.00
$7,300.00
$7,300.00
$10,110.00
$10,110.00
217
12" MJ Bend
EA
7
$3,600.00
$25,200.00
$2,150.00
$15,050.00
$2,960.00
$20,720.00
218
12" x 12" x 6" MJ x FL Tee
EA
1
$5,000.00
$5,000.00
$2,000.00
$2,000.00
$2,700.00
$2,700.00
219
16" Connection to Ex. AC Pipe
EA
1
$3,000.00
$3,000.00
$2,900.00
$2,900.00
$4,040.00
$4,040.00
220
16" DR18 C900 PVC Water Main
LF
5
$400.00
$2,000.00
$600.00
$3,000.00
$820.00
$4,100.00
221
24" Connection to Ex. Ductile Iron Pipe
EA
2
$15,000.00
$30,000.00
$5,300.00
$10,600.00
$7,200.00
$14,400.00
222
24" Connection to Ex. Butterfly Valve
EA
1
$10,000.00
$10,000.00
$5,200.00
$5,200.00
$7,170.00
$7,170.00
223
24" DR18 C900 PVC Water Main
LF
255
$500.00
$127,500.00
$325.00
$82,875.00
5460.00
$117,300.00
224
24" Ductile Iron Water Main
LF
12
$2,000.00
$24,000.00
$725.00
$8,700.00
5950.00
$11,400.00
225
24" MJ Butterfly Valve
EA
6
$40,000.00
$240,000.00
$26,000.00
$156,000.00
$36,050.00
$216,300.00
226
24" MJ Bend
EA
4
$15,000.00
$60,000.00
$7,500.00
$30,000.00
$10,460.00
$41,840.00
227
24" Flex Coupling
EA
1
$20,000.00
$20,000.00
$8,500.00
$8,500.00
$11,640.00
$11,640.00
228
24" MJ Tee
EA
3
$20,000.00
$60,000.00
$12,000.00
$36,000.00
$16,500.00
$49,500.00
229
24" x 12" MJ Reducer
EA
2
$15,000.00
$30,000.00
$4,600.00
$9,200.00
$6,360.00
$12,720.00
230
24" x 16" MJ Reducer
EA
1
$16,000.00
$16,000.00
$5,500.00
$5,500.00
$7,660.00
$7,660.00
230A
Air Release Valve
LS
1
$0.00
$0.00
$37,000.00
537,000.00
$56,270.00
$56,270.00
Overflow and Drain Pipe
231
12" Connection to Ex. Clay Drain Pipe
EA
1
$2,100.00
$2,100.00
$500.00
$500.00
$700.00
$700.00
232
12" DR18 C900 PVC Drain Line
LF
96
$300.00
$28,800.00
$225.00
$21,600.00
$320.00
$30,720.00
233
12" Ductile Iron Drain Line
LF
14
$1,000.00
$14,000.00
$1,300.00
$18,200.00
$1,760.00
$24,640.00
234
12" MJ Gate Valve
EA
1
$11,000.00
$11,000.00
$7,300.00
$7,300.00
$11,200.00
$11,200.00
235
12" MJ Bend
EA
3
$3,600.00
$10,800.00
$2,150.00
$6,450.00
$2,950.00
$8,850.00
236
12" Flexible Coupling
EA
1
$4,000.00
$4,000.00
$1,900.00
$1,900.00
$2,570.00
$2,570.00
237
12" MJ Tee
EA
1
$3,600.00
$3,600.00
$2,500.00
$2,500.00
$3,470.00
$3,470.00
238
lDrain Inlet Structure
LS
1
$17,000.00
$17,000.00
$20,000.00
$20,000.00
$22,900.00
$22,900.00
2.5 MG Water Tank
239
Unclassified Excavation
LS
1
$260,000.00
$260,000.00
$300,000.00
$300,000.00
$343,400.00
$343,400.00
240
Remove Excess Material From the Site
LS
1
$340,000.00
$340,000.00
$250,000.00
$250,000.00
$285,800.00
$285,800.00
241
Tank Backfill- Native Material
LS
1
$390,000.00
$390,000.00
$255,000.00
$255,000.00
$334,400.00
$334,400.00
242
Tank Backfill- Structural Backfill
LS
1
$200,000.00
$200,000.00
$120,000.00
$120,000.00
$469,900.00
$469,900.00
243
Tank Foundation Preparation
LS
1
$125,000.00
$125,000.00
$120,000.00
$120,000.00
$479,800.00
$479,800.00
244
2.5 MG AWWA D110 Type III
Prestressed Concrete Tank and
Appurtenances
LS
1
$3,700,000.00
$3,700,000.00
$4,411,214.00
$4,411,214.00
$4,431,200.00
$4,431,200.00
245
Access Stairs and Slab
LS
1
1 $50,000.00
$50,000.00
$25,000.00
$25,000.00
$55,900.00
$55,900.00
Schedule 2: Reservoir 2 Total $7,270,800.00 $7,040,000.00 $8,411,500.00
N TA,The tabulation of Bids herein is beleived to
"-�Q PPPPP be a true representation of the Bids received
on October 9, 2025
a C.
PE.oW