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Committee finds MJ Construction not responsible for largest lead-service-line contract; awards $1.43 million job to Mid City
Summary
After reviewing capacity and past performance, the committee voted to find MJ Construction not a responsible bidder for project 2026-11 (which includes 227 of an estimated 290 private-side lead laterals this year) and awarded that contract to Mid City Corporation for $1,433,812.50; MJ was approved for two smaller related contracts.
The public works committee reviewed bids for three private-property lead service-line replacement projects and voted to award the largest project, engineering project 2026-11, to Mid City Corporation at $1,433,812.50 after determining MJ Construction was not a responsible bidder for that project due to capacity and past-performance concerns.
Staff explained that MJ Construction was the apparent low bidder on all three projects (2026-6, 2026-11 and 2026-12) but that 2026-11 contains the bulk of the work this year — 227 of about 290 private-side service laterals scheduled for replacement — and that scheduling constraints risked overloading one contractor. Staff estimated that completing all work assigned to a single contractor would require about 175 working days, while the contracts’ available work period (May 1–Nov. 30) provides about 147 working days. Based on that review and earlier late starts and communication problems on MJ work in 2024, staff recommended awarding 2026-11 to Mid City to reduce schedule and completion risk.
A committee member asked about the financial trade-off: the difference between MJ’s low bid and Mid City’s bid was roughly $50,000 on the $1.4 million job. Staff and members noted that the city has discussed potential liquidated damages for prior late work and is evaluating legitimate excusable days (rain/snow) before any final assessment. Staff said, “liquidated damages are intended to… because when projects go late, there are costs to the city,” explaining the city’s process for evaluating delay days.
A motion to find MJ Construction not a responsible bidder for project 2026-11 and to adopt the Mid City award was moved, seconded and carried on a voice vote. Separately, the committee approved awards to MJ Construction for the two smaller contracts (items 26 and 27, corresponding to projects 2026-6 and 2026-12) after a separate motion and voice vote.
The committee record shows voice votes; no roll-call tallies were recorded in the transcript. Staff said the city will continue to evaluate contractor workload and oversight practices when awarding simultaneous projects.
