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Consent   1.A.3.
Regular City Council Meeting
Meeting Date:
09/28/2015
TITLE
W.O. 15-38--Solid Waste CNG Short-Term Fueling Station Installation, Bid Award
PRESENTED BY:
David Mumford
Department:
Public Works
Presentation:

PROBLEM/ISSUE STATEMENT

The City of Billings Solid Waste Division has begun to replace its fleet of diesel-engine garbage trucks with trucks powered by compressed natural gas (CNG).  There are currently two CNG trucks in service, and six more are scheduled for delivery this fall.  There is a single CNG fueling station in Billings, operated by MDU, that Solid Waste currently uses.  However, MDU has plans to close its fueling station, so the City must construct one to provide fuel for the expanding fleet of CNG trucks.  Having a City-owned CNG fueling station will not only be more convenient for drivers, it should also result in lower overall fueling costs.
Solid Waste has purchased a used CNG fueling system that can meet the immediate demands of slow-fueling 8 CNG trucks.  This system will be installed later this fall.  A new CNG fueling system will be purchased and integrated with the first system to create a station capable of servicing up to 16 CNG trucks with a slow-fill option as well as 2 trucks with a fast-fill option.  The new system will not be installed until spring due to lead times for the equipment.
Due to needing this fueling station operational soon after the delivery of the new vehicles, and that there is no land available for a station that would ultimately service a full fleet of 34-40 trucks, a smaller station will be constructed for the short-term (estimated 3-5 years) on the east side of the Billings Operations Center (BOC) parking lot.  The equipment used for the short-term station will be capable of servicing up to 16 vehicles, and will have the ability to be relocated to a permanent site and expanded to service more vehicles in the future.
This contract includes supplying the new CNG system, and installing both the used and new systems, including all site work for the complete fueling station.  This contract was advertised August 20 and 27 and September 3 and 10, 2015, in The Billings Times and on the City's website.  Bids were opened September 15, 2015, and Council is asked to take action on the bids.

ALTERNATIVES ANALYZED

The Council may:

• Award a contract to the low bidder, Hardy Construction, in the amount of $528,000.00, or
• Reject all bids, which will greatly delay Solid Waste in having a CNG fueling station capable of meeting the needs of the new CNG trucks, which would likely result in Solid Waste having difficulty meeting daily garbage-hauling requirements.

FINANCIAL IMPACT

The following bids were received and evaluated.
 
  CNG Installation Contractor (Bidder)   Lump Sum Base Bid Amount
  Hardy Construction   $   528,000.00
  EFS West   $1,079,176.00
  Wayne Perry Inc.   $   675,912.00

The project is being funded by Solid Waste funds, as approved in the FY 2016 budget.  There are adequate funds available for the low bid amount.

RECOMMENDATION

Staff recommends Council award a construction contract to Hardy Construction for W.O. 15-38--Solid Waste CNG Short-Term Fueling Station Installation in the amount of $528,000.00.

APPROVED BY CITY ADMINISTRATOR