The City Council will consider awarding a construction contract to Western Municipal Construction (WMC) in the amount of $3,187,168.50 for the W.O. 14-13, Elysian Area Water & Sanitary Sewer Extension project.  Schedule 1 of the project would be funded by the City and install approximately 1.0 mile of 16-inch water main, 500 feet of 24-inch water main and 1.5 miles of 24-inch sanitary sewer main as City trunk utilities (general benefit facilities).  The use of 16 and 24-inch PVC water main in lieu of ductile iron was evaluated, determined appropriate for this project, and selection of the PVC bid alternates would save more than $100,000 in materials and installation costs on the project.  Project water and sewer utilities would be installed in Elysian Road and Right-of-Way Easements west and southwest from the Mullowney Lane area to East Lane.

Project Schedule 2 would be constructed under the City's contract with WMC but funded by Elysian School.  Schedule 2 would install approximately 340 feet of 8-inch lateral sanitary sewer main (special benefit facilities) in East Lane to provide service to the school.  Elysian School has agreed to compensate the City $181,943.50 in engineering and construction costs associated with this work.

After being advertised in the Billings Times and on the City website March 5, 12 and 26, the project was bid on March 24. Staff recommends that Schedule 1 and 2 of W.O. 14-13 be awarded to WMC in the amount of $3,187,168.50.

City Council may:

• Approve the construction contract with Western Municipal Construction (WMC) in the amount of $3,187,168.50, or;
• Disapprove the construction contract with WMC.  If the project is not constructed, development may proceed in the area around Elysian Road west of Mullowney Lane without City water and sanitary sewer service in place, or development dependent on these City services will not proceed at all.

Bids were received on March 24, 2015 for W.O. 14-13, Elysian Area Water & Sanitary Sewer Extension, and the following table shows the results:

	Western Municipal	COP Construction	Kinkaid Civil	Williams Civil
Schedule 1 Base Bid (Ductile Iron)	$3,155,306.50	$3,150,945.00	$3,225,635.00	$4,169,860.00
24-inch DR18 C905 PVC Bid Alternate Savings	$7,050.00	$11,280.00	$2,350.00	$2,585.00
16-inch DR18 C905 PVC Bid Alternate Savings	$97,800.00	$113,937.00	$44,010.00	$88,020.00
Schedule 1 Base Bid Total (using DR18 C905 PVC)	$3,050,456.50	$3,025,728.00	$3,179,275.00	$4,079,255.00
Schedule 2 Bid Total	$136,712.00	$182,735.00	$150,635.00	$163,820.00
TOTAL BID--Schedule 1 + Schedule 2	$3,187,168.50	$3,208,463.00	$3,329,910.00	$4,243,075.00

Staff recommends that the project be awarded to Western Municipal Construction in the amount of $3,187,168.50 based on their lowest combined bid for Schedules 1 and 2.  Since Elysian School is responsible for Schedule 2 sewer construction, they have agreed to compensate the City $181,943.44 in engineering and construction fees.

The City's project cost responsibility is for Schedule 1 construction only.  City costs after factoring-in compensation from Elysian School totals $1,010,080.50 for water and $2,015,647.50 for sewer.  Funding sources are water and sanitary sewer revenues.

Staff recommends that Council approve a contract with Western Municipal Construction for W.O. 14-13, Elysian Area Water & Sanitary Sewer Extension project in the amount of $3,187,168.50.