W.O. 09-28 will provide backup power for the water treatment and distribution system, acting as an important insurance policy for maintaining the ability to produce and deliver water to the City.  Any loss of power on the main feed into the Water Treatment Plant (WTP), loss of the switch gear, or problems with NorthWestern Energy (supplier) has the potential to put the WTP out of commission.  Power disruptions on the main feed system, caused by voltage spikes, equipment failures, or other issues, occur an average of eight to ten times every year.  The loss of any of the high voltage equipment that cannot be bypassed could take days to weeks to replace.  The project includes 2 generators, a medium voltage unit and a portable low voltage unit, that will bypass the high energy switch gear and allow the WTP to treat and deliver up to 20 MGD (million gallons per day).  Following the terrorist attacks in 2001, there has been a significant effort nationwide to install backup power at all water utilities.  The City of Billings has finally secured funding to implement these measures at the WTP.

The project was bid October 25, 2011, and Council must act on these bids at this time. There has been information presented since the bid opening that requires further review before a recommendation can be made for award.  Staff is recommending a delay of the bid while an assessment can be completed.

The Council may:

• Approve a contract with ACE Electric, the apparent low bidder, or
• Delay action on the bids received; or
• Reject all bids and do not approve a contract.

There were four (4) bids received for the project, as shown below.

Contractor	Base Bid	Alternate A
Colstrip Electric, Inc.	$1,316,936.00
ACE Electric	$1,142,587.00
Yellowstone Electric	$1,407,072.00	($23,112.00)
Action Electric	$1,233,750.00
Engineer's Estimate	$1,400,000.00

Alternate A is a bid deduct to provide for an alternate manufacturer of the low voltage generator.

The low bidder is ACE Electric.  The project is being funded with $974,000 from a HUD grant and the remainder from water funds approved in the FY11 budget.  There are adequate funds available to cover all project costs.

Staff recommends that Council delay action on bids for WO 09-28, Water Treatment Plant backup power Phase II until November 28, 2011 to allow time for further assessment of the bids.