Bid Schedule D-2023 Award Memo1
ENGINEERING DIVISION MEMORANDUM
October 23, 2023 TO: City Council FROM: Brad Reents, City Engineer SUBJECT: Consideration and action to award contract for Bid Schedule “D” – 2023: C2023-17 Sanitary and Storm Sewer Lining Relates to Strategic Plan Strategic Goal - Infrastructure
This contract supports the City’s efforts to maintain existing infrastructure and continue to provide municipal services. Executive Summary Bids for C2023-17 Sanitary and Storm Sewer Lining were opened on October 4, 2023. City Recommendation The City recommends awarding contract C2023-17 Sanitary and Storm Sewer Lining and expressing the intent to borrow funds as outlined in the memo. Suggested Motion I move to award contract C2023-17 Sanitary and Storm Sewer Lining. Background The City administers a sanitary and storm sewer lining contract as part of its annual sewer lining program. The City’s lining program extends the lifespan of its sewers and reduces the amount of inflow & infiltration entering its sewer systems. Contract C2023-17 includes the lining of
approximately 19,500 LF of sanitary sewer and 3,600 LF of storm sewer throughout the City. The pipe diameters to be lined range from 8 inches to 20 inches. Options
• Approve City recommendation award contract C2023-17.
• Refer back to staff with guidance on how the Council wishes to proceed.
• Do not take action on the contract as recommended by staff.
Analysis
C2023-17 Sanitary and Storm Sewer Lining – Staff received two (2) bids, with Visu-Sewer, Inc. providing the lowest bid. The lowest bid of $1,423,165.00 exceeded the City’s total anticipated budget of $1,205,000.00. This contract is funded by both wastewater utility and stormwater utility funds, and Visu-Sewer’s bid prices exceeded the available stormwater utility funds. As such, a portion of the storm sewer lining must be removed from the contract and deferred to a future
contract. The Engineering Division worked closely with Visu-Sewer to modify the scope of the
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contract to reduce costs associated with storm sewer lining. Visu-Sewer has agreed to these scope changes. The revised scope will reduce the contract amount from $1,423,165.00 to
$1,294,940.50. The Engineering Division is recommending award of this contract to Visu-Sewer, Inc., Pewaukee, Wisconsin, for a total amount of $1,294,940.50.
Visu-Sewer, Inc. W230 N4855 Betker Drive Pewaukee WI 53072
Total Bid: $1,423,165.00
Insituform Technologies USA, LLC 580 Goddard Avenue Chesterfield MO 63005
Total Bid: $1,569,729.26
Anticipated Project Costs:
Contract $1,423,165.00 Change Order #1 -$128,224.50 Engineering & Contingency (8%) $103,059.50
Total $1,398,000.00
Project Funding:
Prior Note – WW Utility (Inflow & Infiltration Reduction) $193,000.00 2024 Note – WW Utility (Sanitary Sewer Lining & Point Repair & Grouting) $885,000.00 2024 Operating – SW Utility (Storm Sewer Lining & Point Repairs) $320,000.00
Total $1,398,000.00
Conclusions This contract supports tasks listed in the 2023-2027 Strategic Plan. Upon receiving the bid results, the City contacted the contractors to inquire about the reasons for the increased prices compared
to previous years. Visu-Sewer stated that prices of resin used in the lining process are driving costs upward. In the end, the actual bid results represent current market costs, which are higher than expected. To complete this contract within the allocated budget, a change order will be executed so the contract amount equals $1,294,940.50. Visu-Sewer, Inc. has signed the change order to demonstrate their acceptance of reducing the contract quantities to deliver the project on budget. Upon executing Change Order #1, the City will have the funds necessary to complete the work and, thus, recommends awarding this contract. Restated City Recommendation
The City recommends awarding contract C2023-17 Sanitary and Storm Sewer Lining and expressing the intent to borrow funds as outlined in the memo.
cc: Kevin Lahner, City Manager Ryan McCue, Deputy City Manager
Nick Faust, Assistant to the City Manager Mike Payne, Director of Public Works