R2026-92 Resolution Accepting the Bid and Authorizing the Execution of a Contract with Burdick Plumbing and Heating Company, Inc. for the Galvanized Water Service Line Replacement, City Project 2025-20

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Assuming an approximate cost of$10,000 per service line, the potential cost impact is $67 million. However, it is likely that many of GRR service lines have already been replaced, either on the city side of the curb box or the private side or both. Past service line inspections or replacement projects have determined the City records may only be 20%-50% accurate. All water utilities throughout the country are required to start replacing lead and GRR service lines starting in 2027. The Federal EPA rule requires the replacement program to be completed in 10 years. The loan agreement approved by the Council in March provides for loan forgiveness for $2 million and 0% interest for the remainder. The City created a cost-sharing program to provide assistance with funding the replacement of the private portion of the water service. Since its implementation, 285 water services have been replaced. Funding is currently capped at a 50%match. The use of IEPA loans and grants requires the City to cover 100% of the cost for those replaced during the loan-funded project. Public Bid Letting Results The project plans and specifications were prepared by CDM Smith, Inc. and bid by the City. The project was advertised on February 17, 2026, and the bids were opened on March 25, 2026. The bid results are as follows: Bidder Bid+Alternates A & E Compared to Engineer's Est. Over (Under) Burdick Plumbing and Heating, Inc.$3,979,300.00 2.0% Engineer's Estimate $3,901,500.00 - Four contractors took out bid packages, and one contractor submitted a bid proposal for the work. Burdick Plumbing and Heating Company, Inc. provided the lowest responsive and responsible bid at 2% above the Engineer's Estimate. Burdick Plumbing and Heating Company, Inc., has completed many projects of this type for the City. Staff recommends that the City Council approve a contract with Burdick Plumbing and Heating Company. Inc. to complete the project. This project will be completed in accordance with the Federal Davis Bacon Wage laws. Upon approval by the City Council. the contractor will receive a "Notice of Intent to Award." Project Funding through the Public Water Supply Loan Program Although the lead service line replacement(in our case, GRR) laws represent an"unfunded mandate", the IEPA has been actively encouraging water utilities to seek funding from the State Revolving Fund (SRF) for the lead service line replacement program. The program heavily prioritizes funding for low-income census tracts in terms of"principal forgiveness loans" (in effect, grant funding) for replacement projects in the most eligible census tracts. The City applied for the program in 2024 which included a five-year replacement program starting in the IEPA's FY 2026 (July 1, 2025-June 30, 2026). The City was approved and listed in the IEPA's Intended Use Plan, published July 1, 2025, for $4,029,413 with $2,000,000 as principal forgiveness and the remaining at 0% interest for 30 years. The funds included in the loan request are summarized in the following table: Work Item Project Estimate Design Engineering 349,960 Construction $3,979,300 Construction Contingency (10%) $397,930 Construction Engineering $287,560