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6. Reject Bids - WWTP Storage BuildingCity of Kalispell Public Works Department Post Office Box 1997, Kalispell; Montana 599 3-1997 - Telepi ore (406)75 _77210, Fax (406)75 w7 31 REPORT TO: Mayor and City Council FROM: James C. Hansz, P.E., Director of Public Works SUBJECT: Reject Bill — Wastewater Treatment Plant Storage Building MEETING DATE: March 7, 2005 BACKGROUND: The current budget includes an appropriation of $90,000.00 for construction of a new building at the wastewater treatment plant for weather -protected storage of high -value plant equipment. Two bids were received by the 25 February due date. The bids of Davidson Construction ($175,800.00) and Bob Schweigert Construction ($169,597.00) were both far in excess of the budget available for this project. Upon evaluation of the bids we believe neither bid reflects good value for the City and recommend rejection of all bids. Staff continues to believe this project has great merit and recommends re -advertisement for bids at an unspecified future date when we believe market conditions may be more favorable. This project was designed in-house so future efforts to re -advertise the project will not involve significant additional engineering expense. ACTION REQUESTED: AT CITY COUNCIL MEETING OF MARCH 7, MOTION TO REJECT ALL BIDS FOR CONSTRUCTION OFA STORAGE BUILDING AT THE KALISPELL WASTEWATER TREATMENT PLANT. FISCAL EFFECTS: None, current budget amount of $90,000.00 will be conserved for potential future capital expenditures. ALTERNATIVES: As suggested by the City Council Attachment: Bid Recommendation March 7, 2005 Reject Bids Wastewater Storage Bni[ding.doc To: Jim Hansz, Public Works Director From: Andrew D. Sorensen, Associate Civil Engineer Date: 3III2005 Re: Wastewater Treatment Plant Storage Building The fiscal year 2004/2005 Wastewater Treatment Plant budget includes appropriations of $90,000.00 for the construction of an equipment storage building. Two bids were received by the due date and opened February 25, ZOOS. Davidson Construction, Inc. $175,800.00 Bob Schweigert Construction $169,597.00 Both bids far exceed the budgeted amount for this project. The costs associated with the building appear to be high when compared to past projects and estimates provided by the Building Evaluation Data that the Building Department uses to valuate projects. Therefore, I recommend that both bids be rejected at this time, and that the project be re -bid when the market conditions improve. It is also possible that this project may also be included as part of a larger project which should also lower the cost.