W.O. 13-17 Water Treatment Plant T2-1 and T2-2 Transformer Replacement is a project to replace two transformers with a single new transformer that matches the one installed in 2012.  The project was advertised January 23, 30, and February 6, 2014, in the Billings Times and on the City's website.  Bids were opened February 11, 2014, and the City received three bids. Ace Electric, Inc. provided the lowest responsible bid.

The Council may:

• Award a construction contract to the low bidder, Ace Electric, Inc. in the amount of $143,750.00; or
• Do not award a contract and reject all bids.  If the contract is not awarded, the existing transformers will need to continue to be used which may result in operational issues at the Water Treatment Plant.

The following bids were received and evaluated:

CONTRACTOR(S)	BID
Ace Electric, Inc.	$143,750.00
Yellowstone Electric	$154,600.00
Colstrip Electric	$164,370.00

The funding for the project was budgeted in FY14 as Electrical Replacements and the source is Water Revenues.  A summary of the funding is as follows:

Approved Budget	$452,000.00
Previously Encumbered	$16,500.00
Amount of this Contract	$143,750.00
Budget Remaining	$291,750.00

Staff recommends Council award a construction contract for W.O. 13-17 Water Treatment Plant T2-1 and T2-2 Transformer Replacement to Ace Electric, Inc. in the amount of $143,750.00.