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3. Reject Bid - Buffalo Hill Water System TelemetryCity of Kalispell Public Works Department Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831 REPORT TO: Mayor and City Council FROM: James C. Hansz, P.E., Director of Public Works SUBJECT: Reject Bid — Water System Telemetry Project MEETING DATE: August 19, 2002 BACKGROUND: The fiscal year 2002/2003 Water budget project includes an appropriation of $60,000.00 for the replacement of obsolete telemetry and control equipment in the water production system. A project was designed for these replacements and bids were received and opened August 7, 2002. Two bids were received: Technical Systems, Inc., for $147,606.00, and from Terrex Industries, Inc., for $122,000.00. Both bids greatly exceed the available budget and the engineer's estimate. Further, upon analysis the bid from Technical Systems was determined to be non -responsive. The engineer's bid analysis and recommendation that the bids be rejected is attached. Staff concurs with the recommendation. RECOMMENDATION: Reject all bids for the Water System Telemetry Project. ACTION REQUESTED: AT CITY COUNCIL MEETING OF AUGUST 19—MOTION TO REJECT BIDS FOR THE WATER SYSTEM TELEMETRY PROJECT. FISCAL EFFECTS: None for the present, eventual expenditure of budgeted funds for equipment replacement after alternatives have been examined. ALTERNATIVES: As suggested by the City Council Respectfully James C. Hansz, P.E. / / Director of Public Worts/City Engineer Attachment: Bid Recommendation August 19, 2002 Reject bids Water Telemetry System Upgrade c" k Chris A. Kukulski City Manager Report compiled August 12, 2002 himl _ y ENGINEERSMORMSON ! SCIENTISTS ERLE, INC. SURVEYORS PLANNERS An Employee -Owned Company 1220 WHITEFISH STAGE ROAD, UNIT 3A • PO.30X 8057 • KALISPELL. MT59904-1057. 406-752-2216 • FAX 406-752-2391 August 9, 2002 Mr. Jim Hansz, P.E. Public Works Director City of Kalispell P.O. Box 1997 Kalispell, MT 59903-1997 ATTN: Mr. Dick Amerman Re: Kalispell Water System Telemetry and Buffalo Hill Standby Generator Upgrades. Bid Results and Award. Gentlemen, On August 7, 2002 sealed bids were publicly opened on the two (2) projects referenced above. For each project two (2) bids were received which are summarized below: I. WATER SYSTEM TELEMETRY PROJECT A. Technical Systems, Inc. Lynnwood, Washington $147,606.00 B. Terrex Industries, Inc. Great Falls, Montana $122,000.00 II. BUFFALO HILL STANDBY GENERATOR UPGRADE A. Pavlik Electric, Inc. Missoula, MT $223,700.00 B. Nelson Electric, Inc. Bigfork, Montana $217,299.00 "Providing resources in partnership with clients to achieve their goals" MORRISON A MAIERLE, INC. The two (2) bids received for the Water System Telemetry Project were substantially above the Engineer's Estimate of probable cost of $50,000 to $60,000. Additionally, the bid received from Technical Systems, Inc., Lynnwood, Washington, was determined to be non -responsive do to the fact that the Bid Proposal was not submitted with the complete Project Manual and Addendum Number One (1) was not acknowledged. With Terrex Industries' bid being more than twice the available funds for this project, it is our recommendation both bids be rejected and other avenues pursued to replace the existing aged telemetry equipment. The two (2) bids received for the Buffalo Hill Standby Generator Upgrade Project have been determined to be responsive, responsible and below the Engineer's Estimate of probable cost of $225,000 to $250,000. We therefore recommend a Contract for this project be awarded to Nelson Electric, Inc. of Bigfork, Montana for their lump sum bid of $217,299.00 subject to all stated conditions within the bid documents, Addendum Number One (1) and City funding. Should you have any questions, please feel free to contact us. Sincerely, Morrison-Maierle, Inc. Terence W. Richmond, P.E. V.P. Office Manager cc: Technical Systems, Inc., 2303-196th St. S.W., Suite B Lynnwood, Washington 98036 Terrex Industries, Inc., 4307 N. Star Blvd. Great Falls, Montana 59405 Pavlik Electric, Inc., P.O. Box 2877 Missoula, Montana 59806 Nelson Electric, Inc. P.O. Box 1260 Bigfork, Montana 59911