R2026-146 Resolution Amending City Council Policy E-3: Privately Owned Lead Water Services

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Council Memo Public Works Department No. 2026-52 DATE: 7/6/2026 TO: Honorable Mayor Julie Moore Wolfe and City Council Members FROM: Melissa Hon, City Manager Matt Newell, Director of Public Works Jason Lawson, Water Services Manager SUBJECT: Resolution Amending City Council Policy E-3: Privately Owned Lead Water Services SUMMARY RECOMMENDATION: At the January 17. 2023. meeting of the City Council. approval was given for a new City Council Policy to provide a 50% cost share to replace privately owned water services. The memo prepared at that time by then City Manager Scot Wrighton is attached. Year Leaking Service Voluntary Total Cost Replacement Replacement 2024 52 5 $110,167 2025 86 6 $179,088 2026 Jan-Jun 30 0 563.266 The City was recently informed that the Illinois EPA received additional funding from the U.S. EPA for lead service removal. This added funding has provided for the IEPA to increase their 50°ro loan forgiveness to 100% or over S4 million for the current 2026 lead service removal project and the proposed 2027 lead service removal project. When State or Federal funding is used on lead service removal, they require that private services be fully replaced by the project at no cost to the property owner. The City is required to remove all possibly lead contaminated services within 10 years beginning in 2027. With the State funding requirement of 100% private service replacement coverage, staff proposes to change the City funding reimbursement program as follows. For residential and commercial properties with possible lead contamination: • The City will reimburse 100% of the costs to a maximum of$6,000 for residential and $10,000 for commercial if the service is leaking or damaged. • The City will continue to reimburse 50% of the costs to a maximum of$3,000 for those services deemed voluntary or not in inunediate need of replacement.