R2024-30 Resolution Authorizing the City Manager to Sign Loan Documents for a Five-Year Lead Service Line Replacement Project, City Project 2023-20

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2/1/24,3:01 PM Item Coversheet in Public Works DATE: 2/5/2024 MEMO: 2024-17 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Scot Wrighton,City Manager Matt Newell,P.E.,Public Works Director Paul Caswell,P.E.,City Engineer Robert Weil,P.E.,Assistant City Engineer SUBJECT: Resolution Authorizing the City Manager to Sign Loan Documents for a Five-Year Lead Service Line Replacement Project,City Project 2023-20 SUMMARY RECOMMENDATION: It is recommended by staff that the City Council approve the attached resolution,which will authorize the City Manager to sign loan documents for a proposed five-year lead service line replacement project. The project would replace approximately 1,900 galvanized water service lines which are or were downstream of lead goosenecks,as required by law. BACKGROUND: The issue In Decatur,only a few service lines have ever been constructed of all-lead material,and all known all-lead service lines have already been removed.However,lead goosenecks and galvanized pipes were commonly used for water service lines installed prior to 1940 and are still present in the system. To meet Federal and State EPA guidelines,the City is required to remove lead goosenecks and galvanized water service lines which are or were downstream of lead goosenecks.Under US EPA guidelines,these are termed galvanized requiring replacement (GRR)service lines. In the inventory submitted to the IEPA in 2023,which was primarily based on tap cards and maintenance records,there were 6,883 suspected GRR service lines identified in the City. Another 22 service lines had unknown material,which are considered as suspected lead service lines under Illinois law.The total number of service lines to be replaced is estimated to be 6,900. The attached map shows the general location of the suspected GRR service lines. Assuming an approximate cost of$10,000 per service line,the potential cost impact is$69 million over a period of 20 years. However, it is likely that many of GRR service lines have already been replaced,either on the city side or the private side of the curb box or both.Many other GRR service lines are on vacant lots where houses have been demolished. The daylighting project approved by Council in January will complete a statistically valid sample of the GRR service lines,which will aid in financial planning. The unfunded mandate the city of Decatur(and thousands of other cities)face requires that we start replacing GRR service lines by 2027. Illinois state law requires that the replacement program be completed in 20 years. However,a proposed federal rule would require the replacement program to be completed in 10 years. The Illinois State Section of the American Water Works Association is commenting on the proposed federal rule, advocating that the timeline should match that already established in Illinois.As a practical matter,the city has already started replacing these service lines(throughout Johns Hill,as part of major infrastructure projects,and through the city's recently approved cost-share program).But the mandate will mean we have to scale- up our level of activity. The opportunity Although the lead service line replacement laws represent an"unfunded mandate",there appear to be some immediate grant opportunities,especially if the City initiates its replacement program in 2025 or 2026,as opposed to the required start date of 2027. https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemI D=4810 1/2