HomeMy WebLinkAbout04-10-17 City Commission Packet Materials - A3. NOA to Montana Civil Contractors for 5.3 MG Water Tank
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Bob Murray, Project Engineer
Rick Hixson, City Engineer
Anna Rosenberry, Assistant City Manager
SUBJECT: 5.3 Million Gallon (MG) Water Storage Reservoir Project Notice of Award
MEETING DATE: April 10th, 2017
AGENDA ITEM TYPE: Action
RECOMMENDATION: Authorize the Acting City Manager to sign the Notice of Award to Montana Civil Contractors, Inc. for the Total Base Bid in the amount of $7,665,349.00.
BACKGROUND: Attached is a copy of the Notice of Award for the above referenced project.
The 2005 Water Facility Plan provided an analysis of the City’s existing and future water storage
needs. At that time, the storage was adequate, but based on growth estimates, the plan projected
that additional storage would be needed by 2017. The Department of Environmental Quality (DEQ) standards require that the storage volume meet either; maximum day plus fire flow minus
source supply, or average day plus fire flow whichever is greater. The City’s source supply is
substantial, therefore the second condition controls in determining the storage requirement.
Using that formula, the plan determined that an additional 5.3 million gallons (MG) of storage
would be necessary to meet the regulatory requirements under future demands. The new storage reservoir will also provide additional chlorine contact time that will be necessary to meet the
requirements for future design flows.
Bids for the above-referenced project were opened on February 28, 2017 with 9 bids being
received. The low bid was submitted by Montana Civil Contractors, Inc. in the amount of $7,665,349.00. The engineers estimate was $7,643,300.00. The Bid Tabulation, Engineers award recommendation, Contractors background/reference check information, and the DEQ
award concurrence letter for the project are attached.
UNRESOLVED ISSUES: None
ALTERNATIVES: Disapprove
FISCAL EFFECTS: This project will be financed with cash-on-hand in the Water Impact Fee Fund and a loan from the DNRC’s Drinking Water State Revolving Loan Program. The project
budget includes this full bid amount for construction costs ($7,665,349), as well as construction
management and project contingency and other loan requirements. Our current water rates
anticipated debt service payments and revenue coverage requirements to build this storage tank project. Our current capital improvement program includes annual debt service payments in the
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Water Impact Fee fund for this project. See the Commission Memo for Resolution No. 4788
for more of the details related to financing.
Attachments: Notice of Award, Bid Tabulation, Award Recommendation,
Background/Reference Check, DEQ Award Concurrence
Report compiled on: 3/28/17
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