Staff recommends the City Council award a construction contract to Morgan Contractors, LLC for WO 22-20: Water Treatment Plant High Service Pump Station HVAC Upgrades, in the amount of $575,821.

During the summer of 2021, the High Service Pump Station (HSPS) at the Water Treatment Plant (WTP) experienced more than 60 consecutive days of inside temperatures exceeding 90 degrees and a few days in excess of 100 degrees.  Optimal operation temperature for the equipment in the electrical room is 70 to 80 degrees, so continual long-term operation in these conditions could be very detrimental.  The equipment life could be shortened, or worse, the equipment could potentially fail, resulting in the City having great difficulty meeting summer water demands.  Equipment in the pump room is a little more tolerant of high temperatures, but WTP Staff decided it would be beneficial to improve the cooling in both rooms.  Therefore, two new cooling units (RTUs) were purchased by the City, approved previously by Council, to replace existing units that are undersized and nearing the end of their useful life.  The new units are physically smaller and have a higher cooling capacity and efficiency than the existing units.  Delivery of the new units is expected in April 2023.

The installation of the new units was originally bid September 6, 2022, but the bids received greatly exceeded the available budget.  City staff and AE2S (consulting engineer) developed an alternate design package, including installation of one RTU (for the electrical room) and modifying the duct layout, in an effort to reduce costs and re-bid the project.  The scope of work includes replacing the membrane roof on the lower portion of the HSPS roof above the electrical room, making structural improvements to the roof to support the new RTU, and installing a new RTU and associated appurtenances.  It has been determined the pump room can operate safely and be cooled by the existing units, so the second new unit will be stored by the City and used in the near future at the West End Water Treatment Plant.

The project was advertised on December 30, 2022, and January 6 and 13, 2023, in the Yellowstone County News and on the City’s website.  Bids were opened on January 17, 2023.  One bid was received from Morgan Contractors.  One bid alternate was bid to allow schedule flexibility for potential cost savings.  The bid alternate resulted in an increase in cost, so staff does not recommend awarding the alternate.  The bid amount appears to be appropriate, reasonable, and is below the Engineer's estimate for the scope of work.

City Council may:

• Award a construction contract to Morgan Contractors, LLC for the Base Bid in the amount of $575,821; or
• Not award a contract and reject the bid.  If the bid is not awarded, the cooling of the critical electrical equipment is at risk during summer periods.

The following bid was received:

Bidder (Contractor)	Base Bid Amount	Bid Alternate No. 1 (extend schedule to fall instead of spring work)
Morgan Contractors, LLC	$575,821.00	$57,700.00 (ADD)

The project was budgeted in FY23 using Water funds in the amount of $1,000,000.  $393,000 was previously encumbered for engineering and purchase of the units, resulting in a remaining budget of $607,000.  Thus, there are sufficient funds available to award this contract.