2. Reject Bid - South Meadows Drainage Improvement Project - Phase II201 P Avenue Bast
PO Box 1997
Kalispell, MT 59903
Phone: 406-758-7720
Fax: 406-758-7831
www.kalispell.com /public works
Date: August 12, 2014
TO: Doug Russell —City Manager`
FROM: Keith Haskins — Senior Civil Engineer el
CC: Susie Turner, PE — Director of Public Works / City Engineer
SUBJECT: South Meadows Drainage Improvements — Phase II
MEETING: August 18, 2014
BACKGROUND: The South Meadows Storm Drainage Improvement Project will address and
mitigate ongoing drainage issues facing the South Meadows Subdivision by providing a
stormwater conveyance system. The project includes installing storm drainage inlets, manholes,
storm drainage piping, re -grading ditches, and cleaning culverts. The first phase of construction
was awarded to LHC Inc. and completed in 2012. The remaining three unconstructed alternates
make up this second phase of construction.
Bids were opened on Monday, August 11, 2014 at 2:30. Out of five prospective contractors who
obtained plans for the project, two responsive bids were received:
Contractor
Base Bid
Add. Alt. 1
Total
Knife River
$345,286.50
$153,950.00
$558,136.50
LHC
$255,381.76
$157,861.36
$413,243.12
The 2012 bid prices for these remaining portions of the project ranged from approximately
$213,000 to $269,000. Therefore, $300,000 dollars was budgeted for the project.
After the Bid Opening, staff contacted the low bidder and discussed bid prices in order to
determine why costs were so much higher than previously bid and also higher than prices bid on
other projects this year. The contractor indicated that part of the increased cost was due to
increased material costs. However, the costs also reflected the lessons learned on the previous
project, the limited time to get the project complete this construction season, and a full schedule
of commitments to other projects which also need to get completed prior to winter. Other plan
holders indicated they didn't bid the project because of too many other commitments.
Considering the higher than expected bids, the FY 14/15 budgeted amount for the project, and
the information gleaned from the low bidder and other plan holders, staff recommends rebidding
the project in the winter. Bidding the project outside of the construction season gives potential
contractors better opportunity to bid the project and add the project to their work schedule for
next year. These factors should lower the bid prices enough to meet the allocated budget and still
allow for completion within this fiscal year.
FISCAL IMPACT: When the project is rebid and accepted, it will be funded from the Storm
Sewer Fund (South Meadows Phase II— 5349-453-430246-954).
ALTERNATIVES: As suggested by the City Council.
RECOMMENDATION: The City Council reject all bids for the South Meadows Storm
Drainage Improvements Project — Phase II.