Staff recommends that City Council award a contract for W.O. 26-01, Contract 2: 2026 Sewer Main Replacement, to Western Municipal Construction, Inc. in the amount of $5,684,525. 

Work Order 26-01, Contract 2, will replace or rehabilitate approximately 21,250 feet of aging sanitary sewer mains throughout Billings as part of the City's annual wastewater infrastructure renewal program. The project targets sewer lines installed between 1916 and 1986 that have experienced deterioration, root intrusion, maintenance issues, and sewer backups, improving system reliability and reducing long-term maintenance costs. Three bids were received, with Western Municipal Construction, Inc. submitting the lowest responsible bid of $5,684,525. The project is fully funded within the FY26 Wastewater budget, and staff recommends awarding the contract to address critical sewer infrastructure needs and help prevent future system failures.

The City replaces and upgrades its sanitary sewer utilities as part of an annual maintenance program.  This project will replace or rehabilitate (line) approximately 21,250 feet of existing sanitary sewer. The sewer mains being replaced with this project were selected based on age, video inspection condition assessment, root intrusion history, and sewer backup history.  This project will replace sanitary sewer mains that were installed between 1916 and 1986 and are made of clay tile and reinforced concrete pipe.  These sewer mains exhibit corroded or spalled concrete soffits, broken and cracked pipe, and many sections need yearly root intrusion removal and maintenance. 

The sewer mains to be replaced or rehabilitated are located in four primary geographical areas.  Area 1 is located in the Billings Heights where 3430 lineal feet of 36-inch diameter reinforced concrete pipe will be rehabilitated along the trail between Earl Gus Park and Hilltop Road, and 1450 lineal feet of 18 to 24-inch clay pipe will be rehabilitated along Lake Elmo Drive between Bench Boulevard and Main Street.  Area 2 is located on Grand Avenue between Division Street and Virginia Lane, where 6250 lineal feet of 18 to 21-inch clay pipe and reinforced concrete pipe will be rehabilitated.  Area 2 also includes 1210 lineal feet of 8-inch clay pipe within Pioneer Park between 3rd Street West and Lordwith Drive that will be replaced.  Area 3 is located on the south side of Billings encompassing the area between Jackson Street and Monroe Street and from State Avenue to Madison Avenue where 1740 lineal feet of 8-inch clay pipe will be replaced.  Area 4 encompasses the areas from 24th Street West to 28th Street West and Broadwater Avenue to Cook Avenue where 7170 lineal feet of 8-inch clay pipe will be replaced.  

The project was publicly advertised on May 8, May 15, May 22, and May 29, 2026, in the Yellowstone County News and on the City's website.  Bids were opened on June 2, 2026, and three bids were received. Western Municipal Construction, Inc., submitted the lowest, responsible bid.

The following bids were received:

Contractor	Total Bid Price
Western Municipal Construction, Inc.	$5,684,525.00
Askin Construction, LLC	$5,825,552.00
COP Construction, LLC	$6,565,269.00

This project was budgeted in FY26 using Wastewater Funds in the amount of $9,824,959.  There is sufficient budget to award this project.  Remaining funds will be used for additional sewer replacement and rehabilitation projects and any change orders for this project.

City Council may:

• Award W.O. 26-01, Contract 2: 2026 Sewer Main Replacement, to Western Municipal Construction, Inc. in the amount of $5,684,525; or,
• Do not award a contract and reject all bids.  If the project is not awarded, the City's sanitary sewer collection system in these areas will continue to be unreliable and may experience ongoing maintenance problems, back-ups, and expenses.