Adopt Resolution R2018-070, awarding a contract in the amount of $556,828.00 to BLD Services LLC., for the 2018 Sanitary Sewer Lateral Pipe Rehabilitation Project SAN-18-003.

The city's Capital Improvement Plan (CIP) contains the 2018 Sanitary Sewer Lateral Pipe Rehabilitation Project SEWER-18-003. On May 15, 2018, the City Council adopted Resolution R2018-061 approving the plans and specifications, and authorizing bidding of the project.

In accordance with Minnesota Statute Section 471.347 Uniform Municipal Contracting Law, bids were solicited and opened on June 7, 2018. One (1) bid was received and BLD Services LLC., from Kenner, Louisiana, is the low bidder in the amount of $556,828 (see the attached resolution for the bid tabulation summary). While only one bid was received, the costs are consistent with past project costs and is under the construction cost estimate for the project which was $625,000. BLD Services LLC., has the capacity and experience for the project and is deemed a responsible bidder. They are prepared to begin work in July with an anticipated substantial completion in November 2018.

The CIP identifies a budget of $750,000 for the 2018 Bituminous Overlay Project and associated expenses will be funded by the Sanitary Sewer Fund.

The total estimated project cost based on the low bid plus five percent contingency and  approximately 25 percent engineering/administration/legal make up a revised total project budget of $731,000, which is 2.5 percent under the CIP budget. The contingency amount covers any unexpected change orders, quantity adjustments and other miscellaneous expenses encountered as part of the project.