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Council awards 2025 east‑side lateral replacement contract to low bidder after staff review

3428828 · May 21, 2025

Summary

City staff recommended and the council approved awarding the 2025 scattered lateral replacement contract to Essential Sewer & Water, the low qualified bidder, after staff said past‑performance concerns did not warrant disqualification despite a separate utility prohibition.

City Engineer Hector Leibel told the council on May 19 that staff reviewed four bids for the 2025 scattered lateral replacement program and recommended awarding the contract to Essential Sewer & Water, the low qualified bidder.

Leibel said staff had investigated past‑performance concerns raised about the low bidder and spoke with several municipalities and a developer. Although Sheboygan Water has a current prohibition on using the company, city staff found no basis in Two Rivers’ procurement process to disqualify the contractor. The second‑low bid was roughly $300,000 higher, Leibel said, and staff noted timing and budgetary consequences of rejecting the low bid.

Council members asked about inspection and quality control. Leibel said city staff — an engineering technician, assistant city engineer and water‑utility personnel — will conduct inspections but acknowledged the city lacks capacity for continuous, dedicated QC staffing; he said staff would monitor work and coordinate with the utility.

The council moved to award the contract to Essential Sewer & Water as recommended in staff memos. The decision follows staff outreach to other municipalities, which reported mostly minor coordination and workmanship issues that had been resolved in past projects, Leibel said.

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