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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.