Eagan council rejects single bid for sewer-lining contract, authorizes rebid

The Eagan City Council on Aug. 4 voted to reject all bids for Contract 25-12, a sanitary and storm sewer-lining project, and authorized staff to re-advertise the work.

City staff told the council the project, which would line larger sanitary and storm pipe and rehabilitate manholes under busy roadways, received only one bid that was nearly twice the engineer's estimate. "When we received the bids last week, we only got 1 bid, and it was quite a bit higher than, almost twice as high as what the engineer's estimate was," a city staff member said, explaining why staff recommended rejecting the bids and reworking the procurement.

The staff presentation said the contractors that submitted bids were experienced and had completed prior projects for the city but that the single, substantially higher bid left staff uncomfortable asking the council to award the contract. A representative for Hyperline, which had submitted a bid, told the council market price volatility may explain the difference between the bid and the engineer's estimate and urged continued partnership. "The timeline is tight, especially in the last few years. The prices, especially in this market, have fluctuated quite a bit," Grant, representing Hyperline, said.

Council discussion clarified the city still needs the work and that rejecting the bids does not abandon the project. Staff said the intention is to rebid the full contract; it may appear as a new bid for council consideration within about a month but that schedule may not allow completion this calendar year. Staff also said one component'a single manhole structure of greatest concern'could be rebid separately on a smaller scale to enable completion this year if needed. "There is an element of time sensitivity, but it's not such an urgent element on the entire project that approving the bid for the entire project would be advisable at this point," the mayor said after staff explained the options.

A motion to "reject all bids for Contract 25-12 and authorize the re-advertisement for bids" was moved and seconded and passed on an oral vote. The council did not record individual roll-call votes in the transcript; the motion carried.

Staff noted two factors that will be addressed before the next advertisement: revisiting the engineer's estimate and adjusting the solicitation packaging and timing. The council acknowledged contractors that bid could participate in any rebid.

The council did not set a final rebid date in the meeting; staff advised the work might be delayed into 2026 depending on schedule and contractor availability.