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Item 1.A.1.
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| City Council Regular | |
| Date: | 09/26/2022 |
| Title: | W.O. 22-20 Water Treatment Plant High Service Pump Station HVAC Upgrades, Bid Award |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review | Not Applicable |
RECOMMENDATION
Staff recommends the City Council reject all bids received for W.O. 22-20: Water Treatment Plant High Service Pump Station HVAC Upgrades.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
During the summer of 2021, the electrical room and pump room inside the High Service Pump Station (HSPS) at the Water Treatment Plant (WTP) experienced more than 60 consecutive days of temperatures inside the pump station exceeding 90 degrees, and a few days in excess of 100 degrees. Optimal operation temperature for the equipment in these rooms is 75 to 85 degrees, so continual long-term operation in these conditions could be very detrimental. The equipment life could be shortened, or worse, the equipment could potentially fail, resulting in the City having great difficulty meeting summer water demands.
The procurement of new cooling units was approved previously by Council and delivery of those units is expected in February 2023. A contractor is needed to install the new units on the lower roof of the HSPS. To complement this installation, the roof requires structural improvements to support the new units and new ducting will be installed inside the building. The existing membrane roof is nearly 20 years old and approaching the end of its expected life. Since parts of the roof would be impacted by the installation of the new cooling units, the construction contract also includes the complete replacement of the membrane roof on the lower roof level of the HSPS.
The project was advertised on July 15, 22, and 29; August 5, 12, 19, and 26; and September 2, 2022, in the Yellowstone County News and on the City’s website. Bids were opened on September 6, 2022, and two (2) bids were received. Bids were received from Morgan Contractors and Diamond Construction. Staff reviewed the bids and determined there were multiple elements that exceeded the budget and that excessive risk may have been bid into working above the critical electrical room infrastructure. Staff will review alternate methods of achieving the cooling to save money after the bids are rejected.
The procurement of new cooling units was approved previously by Council and delivery of those units is expected in February 2023. A contractor is needed to install the new units on the lower roof of the HSPS. To complement this installation, the roof requires structural improvements to support the new units and new ducting will be installed inside the building. The existing membrane roof is nearly 20 years old and approaching the end of its expected life. Since parts of the roof would be impacted by the installation of the new cooling units, the construction contract also includes the complete replacement of the membrane roof on the lower roof level of the HSPS.
The project was advertised on July 15, 22, and 29; August 5, 12, 19, and 26; and September 2, 2022, in the Yellowstone County News and on the City’s website. Bids were opened on September 6, 2022, and two (2) bids were received. Bids were received from Morgan Contractors and Diamond Construction. Staff reviewed the bids and determined there were multiple elements that exceeded the budget and that excessive risk may have been bid into working above the critical electrical room infrastructure. Staff will review alternate methods of achieving the cooling to save money after the bids are rejected.
ALTERNATIVES
City Council may:
- Not award a contract and reject all bids. There is no viable alternative.
FISCAL EFFECTS
The following bids were received:
The project was budgeted in FY23 using Water funds in the amount of $800,000. There are not sufficient funds available to award this project. Staff will review alternative ways to install the HVAC that may include ground mount systems and other duct work savings within the pump station and re-bid the project this winter.
| Bidder (Contractor) | Base Bid Amount | Additive Bid Alternate No. 1 (Exterior Stairway) |
| Diamond Construction | $1,720,000.00 | $135,000.00 |
| Morgan Contractors, LLC | $1,460,864.00 | $128,140.00 |
The project was budgeted in FY23 using Water funds in the amount of $800,000. There are not sufficient funds available to award this project. Staff will review alternative ways to install the HVAC that may include ground mount systems and other duct work savings within the pump station and re-bid the project this winter.