2. Award or Reject Bid - El Dorita Lift Station Improvement ProjectREPORT TO: Mayor and City Council
FROM: Jim Hansz, Director of Public Works
SUBJECT: Liberty Street Sewage Lift Station
MEETING DATE: July 19, 1999
BACKGROUND: This project would replace sewage lift station #4 on Liberty Street. The project was
originally budgeted at $50,000.00 in the FY 1998/99 Sewer Operating budget. This amount was carried
forward to the FY 99/00 budget and an additional $15,000.00 was budgeted in the West Side TIF District
budget for the cost of an emergency generator. Four bids were received. All bids greatly exceeded the
project budget. The low bid was submitted by Sandon Construction at $101,304.00. A review of the
probable cause of the high bids has shown an unanticipated high amount of inflation in construction and
most equipment costs. These increases normally would not automatically prevent staff from recommending
an award of a much -needed contract provided that funding was available. However, the bid costs for the
emergency generator installation are grossly more than can be attributed to simple cost inflation and range
from 200% to 400 % more than recently paid in 1999 for a similar installation at the Juniper Bend lift
station. The generator was not bid as a specific deduct alternate. As a result, Counsel has advised staff that
a rejection of bids and revision and re -bid of the project is in order.
RECOMMENDATION: Staff recommends rejection of all bids. Staff requests authority to re -advertise a
modified project that deletes the emergency generator.
FISCAL EFFECTS: Staff will recommend an increase in the FY 99/00 project budget to account for
probable increased construction costs for the basic lift station.
ALTERNATIVES: As suggested by the City Council.
Respectful qi
e ,
C
Ja s C. HanDirector of Puity Engineer
Chris A. Kukulski
City Manager
Report compiled July 16, 1999
Post Office Box 1997 • Kalispell, Montana 59903-1997
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