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AGENDA RECOMMENDATION |
Consent Calendar 5.R.
City Council Regular Meeting
- Meeting Date:
- 09/14/2026
Agenda Item:
Resolution considering bids on Capital Improvement Project 11213; 2026 Lead Service Line Replacement Project - Phase 1.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
On August 25, 2026, bids were opened on Capital Improvement Project 11213; 2026 Lead Service Line Replacement Project – Phase 1. Six bids were received, with the low bid submitted by Diversified Drainage LLC, Inc. of $654,423.00.
Staff recommends awarding the construction contract for Capital Improvement Project 11213; 2026 Lead Service Line Replacement Project – Phase 1 to Diversified Drainage LLC. The contract has a substantial completion date of May 31, 2027. The City received $1,000,000.00 in state funding grants from the Minnesota Department of Health (MDH) Public Facilities Authority (PFA) to reconstruct lead service lines. Since the low bid amount is approximately $122,000 below the engineer’s estimate, staff recommend adding additional lead service line replacements to the project scope to maximize the MDH grant. Staff will bring forward a change order including the additional service line replacements for council consideration in the fall of 2026.
The project will require the contractor to secure a City of Mankato right-of-way permit and complete a residential plumbing permit application for each property. A temporary construction easement and lead water service line replacement agreement will be executed between the city and each property where work occurs.
Staff recommends awarding the construction contract for Capital Improvement Project 11213; 2026 Lead Service Line Replacement Project – Phase 1 to Diversified Drainage LLC. The contract has a substantial completion date of May 31, 2027. The City received $1,000,000.00 in state funding grants from the Minnesota Department of Health (MDH) Public Facilities Authority (PFA) to reconstruct lead service lines. Since the low bid amount is approximately $122,000 below the engineer’s estimate, staff recommend adding additional lead service line replacements to the project scope to maximize the MDH grant. Staff will bring forward a change order including the additional service line replacements for council consideration in the fall of 2026.
The project will require the contractor to secure a City of Mankato right-of-way permit and complete a residential plumbing permit application for each property. A temporary construction easement and lead water service line replacement agreement will be executed between the city and each property where work occurs.