The W.O. 12-28--Water Treatment Plant Transformer Replacement project will replace two electrical transformers containing PCBs (hazardous material) with one new and larger transformer.  The primary and secondary conductors will also be replaced.  The existing transformers contain hazardous PCBs and they have reached their design life and are no longer efficient.  As a result, they must be replaced to provide adequate and reliable power to High Service Pump Station 1.

The project was advertised May 10, 17, and 24 in the Billings Times and on the City's website.  Bids were opened May 29, 2012.  Action on the bids was delayed at the May 29 Council meeting, so Council is now requested to award a contract based on the bids.

Council may:

• Award a construction contract to the low bidder, Colstrip Electric Inc. in the amount of $ 177,315.00; or
• Reject all bids.

The following bids were received and evaluated:

CONTRACTOR(S)	BID
Colstrip Electric Inc.	$ 177,315.00
Yellowstone Electric	$ 177,460.00
ACE Electric	$ 178,630.00

The funding for the project was budgeted in FY12 as Electrical Replacements and the source is Water Revenues.  A summary of the funding is as follows:

Approved Budget	$  442,000.00
Previously Encumbered	$    15,600.00
Amount of this Contract	$  177,315.00
Budget Remaining	$  249,085.00

Staff recommends Council award a construction contract for W.O. 12-28--Water Treatment Plant Transformer Replacement to Colstrip Electric Inc. in the amount of $ 177,315.00.