C. Award Bid - Elks Lift StationiheClryoiKalispell
Incorporated 1892
ephone (406) 758-7700
_ . ,X (406) 758-7758
Post Office Box 1997
Kalispell, Montana
Zip 59903-1997
Date: April 18, 1997
To: Clarence Krepps, City Manager
From: John Wilson, Assistant City EngineeVaJ
Re: Elk's Lift Station Reconstruction
This memo is to recommend the City Council award the construction contract for the
Elk's Lift Station Reconstruction Project to LHC and to request additional funds.
Four bids were opened on April 2nd. The low bidder was Swan Mountain
Construction at $168,987, followed by LHC at $192,316. Nupac and Crockett
Excavation came in at $195,839 and $248,871, respectively. The low bidder has
been unable to demonstrate the experience and qualifications necessary to insure a
successful project. Therefore, we recommend the contract be awarded to LHC in the
amount of $192,316. When compared with the general bidding pattern, LHC's price
seems to be reasonable for the work involved.
Douglas Rauthe
Mayor
Clarence W. Krepps
City Manager
City Council
Members:
Gary W. Nystul
Ward I
Cliff Collins
Ward I
Norbert F. Donahue
Ward II
Dale Haarr
Ward II
Jim Atkinson
Ward III
Lauren Granmo
Ward III
Pamela B. Kennedy
Ward IV
M. Duane Larson
We had no prior knowledge of the low bidder, so considerable time was spent Ward IV
reviewing their experience and qualifications. Representatives from Carver
Engineering met with Tony Welsenbach of Swan Mountain Construction soon after
the bid opening and requested a statement of qualifications. Their initial response
left us with strong concerns about their apparent lack of experience, so more
information was requested. Although Swan Mountain failed to respond in the
stipulated time frame, we discussed the matter with the City Attorney and decided to
allow them more time. After reviewing all of Swan Mountain's submittals and
researching their referenced projects, we do not find evidence of significant
experience in critical areas, including the installation of major sewage lift stations,
sheet piling and bypass pumping during construction of active sewer mains.
We budgeted $180,000 for the overall project, prior to design and after reviewing a
similar project from 1986. We tried to predict construction cost increases with an
inflation factor, but our estimate turned out to be much too low. The overall project
cost, including engineering, the packaged pump system and construction, comes to
$289,519. To meet this need, we request Council action to appropriate an additional
$109,519 from sewer replacement reserves. The current balance in this fund is
$723,000.