CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 25-253, 2026 Lead Water Service Replacement Program, to Trine Construction Corporation for an amount not to exceed $3,393,800 plus a 3% contingency
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Lead Water Service Replacement Program is a City initiative to replace all known lead water service lines with copper water service lines starting in 2024. This work will continue as long as necessary to remove all lead and galvanized water service lines from the system. Work includes the replacement of the entire length of the water service line, from the water main to inside the residence, at no cost to the property owner.
There are approximately 200 known lead water services and 24 well-known galvanized services remaining. The 2026 Lead Water Service Replacement Program includes full replacement of these water services in locations throughout the city where construction was performed prior to 1960.
On October 7, 2025, the City Council passed Ordinance No. 25-107 authorizing participation in the Illinois Environmental Protection Agency’s (IEPA) Public Water Supply Loan Program for a 30-year, interest-free loan in an amount not to exceed $3,500,000 for lead water service line removal.
DISCUSSION:
On January 29, 2026, the Water Utilities issued Bid 25-253, 2026 Lead Water Service Replacement Program, seeking qualified vendors to fully replace the approximately 200 lead water service lines and 24 galvanized water service lines remaining.
Bids were received from the following vendors:
|
Vendor Name |
Proposed Cost |
|
Trine Construction Corporation |
$3,393,800.00 |
|
Engineer’s Estimate |
$3,500,000.00 |
|
IHC Construction Corp. |
$3,646,687.00 |
|
Five Star Energy Services |
$3,837,314.00 |
|
Miller Pipeline LLC |
$3,919,991.80 |
|
Bluewater Construction LLC |
$4,544,001.00 |
Trine Construction Corporation submitted the low bid for the project at $3,393,800. Staff recommends awarding the contract to Trine Construction Corporation as the lowest responsive and responsible bidder for the procurement of construction services, as defined by Section 1-9B-7 of the Procurement Code (RBO-qualified).
The IEPA has reviewed and approved the proposed bid against the requirements of its loan program.
The project has a substantial completion date of November 15, 2026, and a final completion date of June 30, 2027.
FISCAL IMPACT:
CIP #: WU037 - Lead Service Replacements
Lead Service Replacements will be charged to the Infrastructure account listed below. The 2026 Budget includes $3,300,000 for the completion of the project. As previously mentioned, the Utility has been approved to participate in the Public Water Supply Loan Program for a loan amount of up to $3,500,000. The award amount of $3,393,800, plus contingency, is in line with the approved loan amount.
The use of debt was considered in the financing plan for the Water Utilities’ capital improvement program. The terms of the zero-interest IEPA loan are favorable when compared to alternative debt financing instruments, such as general obligation and revenue bonds that would likely carry interest rates of 3.5 - 4%. Annual loan repayments of approximately $117,000 will be paid through system revenues.
|
Account Number |
Fund Description |
Proposed Budget |
|
41251500-551502 |
Water Utilities Fund |
$86,910,285 |
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*Per Council directive, contingency on construction projects is set at 3% on projects over $500,000 and 5% on projects under $500,000.