W.O. 17-01, Schedule 1, 24th Street Water Main Replacement Project, will replace approximately 2500 feet of 12-inch to 20-inch diameter water main in 24th Street West from Central Avenue to Monad Road as the base bid.  Bid Alternate A is to replace water mains in Central at the intersection of 16th Street West and Nelson Drive.

The project was advertised on April 6th, 13th, and 20th in the Billings Times and on the City's Website. Bids were opened on April 25, 2017, and two bids were received. Western Municipal Construction, Inc. submitted the lowest responsible bid.

City Council may:

• Approve the construction contract with Western Municipal Construction, Inc. for the base bid in the amount of $1,943,450.00, or;
• Do not approve the construction contract.  If the project is not constructed, the City's water and waste water system will continue to experience ongoing maintenance problems such as more frequently occurring main breaks in this area.  Future repair costs and property damage claims can be minimized by completing this project.

The following bids were received and evaluated:
 

Contractor	Base Bid Amount	Bid Alternate A
COP Construction LLC	$2,116,161.00	$134,615.00
Western Municipal Construction, Inc.	$1,943,450.00	$106,270.00

 The funding source is water and wastewater revenues budgeted in FY 17.

Budget $8,000,000.00 Previously Encumbered $3,579,449.00 This Contract $1,943,450.00 Remaining budget $2,477,101.00

Staff has reviewed the costs of Bid Alternate A for the work on Central Avenue and concluded that the costs associated with this work are greater than the benefit derived from the work.  Bid Alternate A is not recommended to be awarded.
 

Staff recommends that the City Council approve a contract with Western Municipal Construction for W.O. 17-01, Schedule 1, 24th Street West Water Main Replacement Project, in the amount of $1,943,450.00.