The City Hall steam boiler is over 70 years old and has recently developed a leak that will be costly to repair. The boiler is equipped with an Industrial Combustion burner that has a maximum capacity of 2940 MBH. The boiler has almost 3 times the capacity required to serve its current connected load. This causes frequent cycling leading to poor overall efficiency. The the fuel to steam efficiency of this boiler is probably less than 70%.  There is a risk of not being able to certify and use it in the future. Staff requested bids and received two qualified bids on August 28, 2012.  They were as follows:

Star Service	$113,900
Midland Mechanical, Inc. dba Stevens Brothers Mechanical	$103,160

The City Council may approve the low responsive bid or reject all bids and call for new bids.

The replacement project is included in the FY 2013 budget and this bid is within the approved budget authority.

Staff recommends that the bid be awared to the lowest bidder, Midland Mechanical, Inc., dba Stevens Brothers Mechanical, in the amount of $103,160.00.