12. Discussion of Well ContractAGENDA ITEM 12 - DISCUSSION OF WELL CONTRACT
Due to the late submission of this item, more information will not
be available until the meeting.
iheCily,oiKallvll
Incorporated 1892
Telephone (406) 758-7700 Douglas Rauthe
FAX (406) 758-7758 Mayor
Post Office Box 1997
Kalispell, Montana Clarence W. Krepps
Zip 59903-1997 City Manager
Date
December 16, 1996
City Council
Members:
To:
Clarence Krepps, City Manager
From:
John Wilson, Assistant City Engineer At -,Gary
Nystul
I
Ward I
Re:
North Side Water Well Project
Reconsideration of Contract Award
Cliff Collins
Ward 1
Norbert F. Donahue
Ward 11
On December 2na the City Council authorized staff to award the drilling Wa tl 11aarr
contact for the North Side Water Well Project to Western Water Works.
contractor has not been able to provide the performance
p p
W Atkinson
JimUnfortunately,the
Ward III
bond required in our bid and contract documents.
Lauren Granmo
Ward III
Staff now recommends the contract be awarded to Liberty Drilling in the
amount of $279,467.00. The new contract amount will be $53,311.30 greater
Ward IIV Kennedy
than Western Water Works' bid of $226,155.70. With Western Water Work's
forfeiture of bid bond to the City, our actual increase in cost will be
y
Duane Larson
W
Ward IV
$30,695.70.
Western Water Works has provided a bid bond in the form of a $22,615.60
cashier's check. The Information for Bidders specifies under these conditions
the bidder shall forfeit his bond as liquidated damages for failure to "execute
and deliver the contract and bonds required within ten (10) days after he has
received the Notice of Award". The Notice of Award was dated and delivered
to Western Water Works on December 4, 1996.
Staff does not recommend rebidding the project. The small number of bids
indicates a lack of local experience on wells of this size and the cost of
mobilization discourages bidders from outside the valley. Liberty Drilling is
highly qualified with an extensive background in comparable projects.
Despite the large difference in bid prices, Liberty was only 13% above the
engineer's final estimate.