W.O. 12-45 is a project to install a spray-on liner within the existing Staples 3 million gallon reservoir.  It will seal the existing cracks and prevent leaking. The liner will extend the useful life of the reservoir an estimated 20-30 years. Additionally, a new membrane curtain baffle will be installed. The project was advertised on July 4, 11, and 18, 2013, in The Billings Times and on the City's website. Bids were opened on July 23rd and two bids were received.  Abhe & Svoboda, Inc. submitted the lowest responsible bid.

The Council may:

• Award W.O. 12-45 to Abhe & Svoboda, Inc. in the amount of $906,548.00; or
• Not award the contract to Abhe & Svoboda, Inc. and reject all bids.  If this project is not constructed, the reservoir will continue to deteriorate and leak.

The following bids were received and evaluated:

Contractor	Bid
Cop Construction	$920,750.00
Abhe & Svoboda, Inc.	$906,548.00

The project will be funded with water revenues. Cash is available in the Water Fund, but a first quarter budget amendment will be necessary to give additional spending authority to the project.

Project Budget	$675,000.00
Encumbered Funds	$  97,700.00
This Contract	$906,548.00
Project Budget Remaining	-$329,248.00

Staff recommends City Council award a contract to Abhe & Svoboda, Inc., for W.O. 12-45 3MG Staples Reservoir Liner and Baffle Replacement in the amount of $906,548.00.