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Item 1.B.1.
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| City Council Regular | |
| Date: | 10/28/2024 |
| Title: | W.O. 23-22: WRF Digester Boiler |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review: | Not Applicable |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends the City Council award a contract for W.O. 23-22, WRF Digester Boiler Replacement, to Star Service, Inc., in the amount of $736,750.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
W.O. 23-22, WRF Digester Boiler, will replace the single aging digester boiler with three smaller boilers at the City of Billings Water Reclamation Facility (WRF). The digester boiler is a critical component to the operations of the digesters at the WRF, and is at the end of its useful service life. The existing boiler is currently the only source of heat for the digesters. If the boiler goes down, the digestion process fails, wastewater cannot be treated to acceptable limits, and the City would be in violation of its discharge permit, resulting in potential fines.
By replacing the existing single boiler with three smaller boilers, the plant is able to achieve greater efficiency during normal operations, which in turn will lower the daily operating costs. If the demand is low, only one boiler will be utilized. When the demand is high, all three boilers will be used. Three boilers provide the plant with redundancy if one of the boilers were to be out of service for an extended period of time. The new boilers will be installed in a new location that will provide added safety for operations and maintenance staff. The project was a planned CIP project for FY25 and was budgeted for construction in FY25.
The project was advertised on August 30, September 6, September 13, September 20, and September 27, 2024, in the Yellowstone County News and on the City’s website. Bids were opened on October 1st and two bids were received. Star Service, Inc. submitted the lowest, responsible bid. The Star Service, Inc. bid ($736,750) was lower than the Engineer's opinion of probable cost of $865,000 and staff recommends award.
By replacing the existing single boiler with three smaller boilers, the plant is able to achieve greater efficiency during normal operations, which in turn will lower the daily operating costs. If the demand is low, only one boiler will be utilized. When the demand is high, all three boilers will be used. Three boilers provide the plant with redundancy if one of the boilers were to be out of service for an extended period of time. The new boilers will be installed in a new location that will provide added safety for operations and maintenance staff. The project was a planned CIP project for FY25 and was budgeted for construction in FY25.
The project was advertised on August 30, September 6, September 13, September 20, and September 27, 2024, in the Yellowstone County News and on the City’s website. Bids were opened on October 1st and two bids were received. Star Service, Inc. submitted the lowest, responsible bid. The Star Service, Inc. bid ($736,750) was lower than the Engineer's opinion of probable cost of $865,000 and staff recommends award.
ALTERNATIVES
City Council may:
- Award W.O. 23-22, WRF Digester Boiler, to Star Service, Inc. in the amount of $736,750; or,
- Not award a contract and reject all bids. If the project is not awarded, the digester boiler will operate beyond its useful service life, leading to increased operations and maintenance costs. In the event of a failure of the digester boiler, the plant would not be able to meet DEQ compliance limits.
FISCAL EFFECTS
The following bids were received:
The project was budgeted in FY25 using Wastewater Funds in the amount of $1,000,000. Considering previously encumbered funds for design and construction contract administration ($50,000), $213,250 remains for any change orders. There is adequate budget to award the contract.
| Contractor | Base Bid |
| Star Service, Inc. | $736,750.00 |
| Loenbro, LLC. | $975,429.00 |
The project was budgeted in FY25 using Wastewater Funds in the amount of $1,000,000. Considering previously encumbered funds for design and construction contract administration ($50,000), $213,250 remains for any change orders. There is adequate budget to award the contract.