Per the 2006 City of Billings Water Master Plan, Zone 3 has 5.5 MG (million gallons) of storage, but 8.72 MG of storage are needed.  Some of this deficit is reduced by using surplus storage available from adjacent Zone 2.  However, the Zone 3 storage deficit with fire flow requirements exceeds the amount of surplus available from Zone 2.  The deficit in Zone 3 is projected to increase in future years.  The only feasible option to resolve the immediate deficit problems in Zone 3 is to construct a new west-end reservoir.  After extensive investigation into multiple potential locations and options, it has been determined the best option is to construct a 2 MG reservoir on land adjacent to the existing Chapple Reservoir.

W.O. 08-25 includes the construction of a new 2 MG prestressed concrete reservoir (partially buried) with all associated piping, valves, and site work.  The project also includes an aeration mixing system in the new reservoir to help reduce issues with water age and disinfection by-products; instrumentation control modifications; and electrical modifications.

The project was advertised February 20 thru March 27 in the Billings Times and on the City's website. Bids were opened April 1, 2014.  Staff requests that the City Council award a contract based on those bids.

The Council may: 

• Award a construction contract to the low bidder, Western Municipal Construction, in the amount of $ 4,997,556.65; or

• Reject all bids, which will delay the project and the ability to provide needed water storage.

CONTRACTOR	BASE BID	ALTERNATE A	TOTAL BID
Western Municipal Construction, Inc.	$ 4,949,970.65	$ 47,586.00	$ 4,997,556.65
COP Construction LLC	$ 5,229,905.00	$ 50,000.00	$ 5,279,905.00

There were two (2) bids received for the project, as shown above.  Alternate A is for a 8" thick domed roof, as opposed to a standard 6" thick roof.  The thicker roof will be beneficial to provide additional support in the event of rocks potentially falling on to the tank from the rims above.

The low bidder is Western Municipal Construction. The project is being funded from a SRF (State Revolving Fund) loan.  There are adequate funds budgeted to cover all project costs.

Staff recommends that Council approve the award of W.O. 08-25--Zone 3 Chapple Reservior Expansion to Western Municipal Construction, Inc. and authorize the Mayor to execute a contract in the amount of $ 4,997,556.65.