Consent 1.A.2.
Regular City Council Meeting
- Meeting Date:
- 09/28/2015
- TITLE
- W.O. 15-17--WWTP Aeration Blower Improvements, Installation Bid Award
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
PROBLEM/ISSUE STATEMENT
The Waste Water Treatment Plant (WWTP) purchased a new turbo blower earlier this summer from Aerzen USA, and it is scheduled to be delivered in November. This contract award is related to the installation of the new turbo blower, including all piping, controls, and electrical modifications needed to integrate the new blower into the WWTP’s existing aeration system. This blower is designed to fit in with the aeration design currently underway as part of the WWTP’s major overhaul/upgrade project.
The City of Billings has contracted with NorthWestern Energy (NWE) for an incentive payment to the City upon installing the new, more energy efficient turbo blower. The Incentive Agreement provides for payment from NWE to the City in an amount up to $145,000 upon satisfactory completion of the project. In addition to receiving the incentive from NWE, installing the turbo blower now will provide opportunities for plant staff to learn how these types of blowers are operated, maintained, and controlled well in advance of multiple turbo blowers being installed during the plant upgrade project.
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 award a contract based on the bids.
The City of Billings has contracted with NorthWestern Energy (NWE) for an incentive payment to the City upon installing the new, more energy efficient turbo blower. The Incentive Agreement provides for payment from NWE to the City in an amount up to $145,000 upon satisfactory completion of the project. In addition to receiving the incentive from NWE, installing the turbo blower now will provide opportunities for plant staff to learn how these types of blowers are operated, maintained, and controlled well in advance of multiple turbo blowers being installed during the plant upgrade project.
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 award a contract based on the bids.
ALTERNATIVES ANALYZED
The Council may:
• Award an installation construction contract to the low bidder, Star Service, in the amount of $143,200.00; or
• Reject all bids, which will delay the installation of the new turbo blower and likely cause the City to miss the deadline in the NWE agreement, potentially resulting in the City missing out on part or all of the incentive payment.
• Award an installation construction contract to the low bidder, Star Service, in the amount of $143,200.00; or
• Reject all bids, which will delay the installation of the new turbo blower and likely cause the City to miss the deadline in the NWE agreement, potentially resulting in the City missing out on part or all of the incentive payment.
FINANCIAL IMPACT
The following bids were received and evaluated.
The project is being funded by wastewater funds, as approved in the FY 15 budget. A budget amendment will be forthcoming for FY 16. There are sufficient funds available to cover the costs of the construction contract.
| INSTALLATION CONTRACTOR (BIDDER) | LUMP SUM BID |
| Dick Anderson Construction | $ 180,000.00 |
| Star Service | $ 143,200.00 |
| ACE Electric | $ 147,000.00 |
The project is being funded by wastewater funds, as approved in the FY 15 budget. A budget amendment will be forthcoming for FY 16. There are sufficient funds available to cover the costs of the construction contract.
RECOMMENDATION
Staff recommends Council award a construction contract for W.O. 15-17--WWTP Aeration Blower Improvements to Star Service in the amount of $143,200.00.