City OKs water treatment bids
By ELISA SAND, Staff Report
Madison officials have approved a $3 million bid for improvements to the city water treatment plant.|
The scope of the project involves construction of an above-ground, 1-million-gallon water storage tank, a smaller underground storage tank, a variable-frequency drive for a water pump, additional ammonia-feed equipment and replacement water piping.
The city's current below-ground storage tank is about 50 years old and at the end of its useful life.
The engineer's estimate for the project was $3.1 million. The low bid for the project was awarded to PKG Contracting, with a $2,939,600 bid for the construction project and another $75,000 bid to remove the city's underground storage tank.
City Engineer Chad Comes said the higher-than-anticipated bids don't leave much room in the project budget for a contingency amount that would absorb unanticipated expenses. Part of the reason for the higher bids is due to the city's decision to replace additional water lines.
"That's what made this so close," Comes said.
Comes said one option is to consider using reserves available within the Public Works Department budget to absorb additional costs, should any arise. Another option, he said, would be to not approve the demolition of the existing clearwell as part of the project.
Comes said the second option would save the city about $75,000 now, but there's no guarantee that bids received later would be as favorable.
Public Works Director Fred Snoderly said about $210,000 in reserves is available if it's needed for this project, but said he's worked with PKG Contracting on other projects and is comfortable with approving their bid. Snoderly said the company presents an extremely thorough bid, and change orders submitted by the company are typically less than the industry standard of 3 percent.
City Commissioner Dick Ericcson said it would be counterproductive not to fill the clearwell as part of this project considering the bid.
Commissioner Scott Delzer also said he felt it was a good use of the city's money.