W.O. 19-01: Schedule 3, Southside Triangle Water Line Replacement, will replace approximately 8,600 feet of 8-inch and 3,700 feet of 12-inch diameter water main. The project will take place on various streets in the vicinity of South Park.  The area is generally bound by 1st Ave South, North 27th Street, and State Avenue.  Streets that will have construction are South 28th Street, South 29th Street, South 30th Street, South 32nd Street, South 36th Street, 4th Avenue South, and 6th Avenue South.   Included with the project are approximately 75 lead services that will be replaced.

The project was advertised on May 24th, May 31st, and June 6th, in the Yellowstone County News and on the City's website. Bids were opened on June 11, 2019, and three bids were received. Western Municipal Construction submitted the lowest responsible bid.

KLE Construction submitted a bid that was determined to not meet the minimum qualifications as required by the contract documents.  Contract specifications required the contractor to have experience performing utility rehabilitation projects of similar size utilizing the Montana Public Works Specifications and to submit written evidence detailing their experience.  KLE Constructions's submitted qualifications did not show completed projects of similar size and comparable nature to meet the required qualifications.

City Council may:

• Approve the construction contract for W.O. 19-01: Schedule 3, Southside Triangle Water Line Replacement to Western Municipal Construction, in the amount of $3,324,427.00, or;
• Do not approve the construction contract.  If the project is not constructed, the City's system will continue to experience ongoing maintenance problems such as more frequently occurring water line breaks in this area.  Future repair costs and property damage claims can be minimized by completing this project.

The following bids were received and evaluated:
 

Contractor	Total Bid
Western Municipal Construction	$3,324,427.00
COP Construction, LLC	$3,331,458.00
KLE Construction, LLC*	$2,515,000.00*

* KLE Construction, LLC did not meet the minimum qualifications as set forth in the contract.  

Water funds will be used for this project.  Adequate funding for this project is available in the approved budget for FY 19.

Staff recommends that the City Council approve a contract with Western Municipal Construction for W.O. 19-01: Schedule 3, Southside Triangle Water Line Replacement, in the amount of $3,324,427.00.