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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 Telephone (406) 758-7700 • FAX (406) 758-7758