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Item No: 7J Meeting Date: May 9, 2016 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brandon Stenglein, Public Works Project Coordinator Item Title/Subject: Resolution 8564, Approving a Construction Contract with Lametti & Sons for the 2016 Sanitary Rehabilitation Project Background The municipal sanitary sewer system is composed of approximately 45 miles of trunk sewer, 900 manholes, and 2 lift stations. The sanitary trunk sewer was largely constructed in the 1960’s and early 1970’s using (predominately) clay pipe. The use of clay pipe during this time was the industry standard, but more watertight pipe products (PVC) have been developed and replaced clay pipe to become the new industry standard the last few decades. One technique used to fix pipes that are in good condition but have leaky joints is called slip lining. Slip lining is a method that places a hard liner inside the existing pipe – without digging up the pipe and streets. Slip lining is considerably less costly than trenching and replacing pipe, and there is no “inconvenience” cost compared to trenching methods. Attached to this report is a map of the sewer lines to be slip lined. Discussion: Public Works Engineering staff prepared plans, specifications, and bid documents in house for the 2016 Sanitary Sewer Rehabilitation Project. Approval to solicit for public bid was approved by Council at the April 11, 2016 Council Meeting (Resolution 8546). A public bid solicitation was executed to obtain pricing. Bids were received from three qualified slip lining contractors with the low bid being submitted by Lametti & Sons from Hugo, MN. The breakout is as follows: Bid Contractor Base Bid Low Lametti & Sons, Inc. $162,851.00 2 Insituform Technologies USA, LLC $164,233.00 3 Visu-Sewer, Inc. $179,627.50 The 2016 budget includes $250,000 in the sanitary sewer fund (730-4823-7050) for this work. Recommendation: Public Works recommends that the City Council adopt the attached resolution approving a construction contract with Lametti & Sons, Inc. for the 2016 Sanitary Sewer Rehabilitation Project. Staff further recommends a 7.5% contingency of $12,215 for quantity over-runs or additional work resulting from unknown conditions discovered during construction for a construction budget not to exceed $175,066. Any additional work would require preapproval by the Public Works Director Respectfully submitted, Brandon Stenglein – Public Works Project Coordinator