R2026-162 Resolution Authorizing a Professional Engineering Services Agreement with Clark Dietz, Inc. to provide Design Services for the Lead Contaminated Galvanized Water Service Line Replacement Project, City Project 2026-20

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Illinois Environmental Protection Agency Funding 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 use of TEPA loans and grants requires the City to cover 100% of the cost for those replaced. The City applied for the program in 2024 which included a five-year replacement program starting in IEPA's FY 2026 (July 1,2025-June 30, 2026). The IEPA publishes their Intended Use Plan annually on July 1. The City entered into its first loan agreement on June 26, 2026 for$4,720,749 which included a principal forgiveness of$2,465,000. The remining principal is at 0% interest for 30 years. The City received the maximum principal forgiveness allowed by the program in FY 2026. The City was identified in IEPA's FY 2027 Intended Use Plan, published July 1, 2026, for$4,500,000 with $4,500,000 listed as principal forgiveness. The City received the maximum principal forgiveness that is allowed by the program this fiscal year. This professional services agreement with Clark Dietz will provide the bid documents that meet the loan program requirements. The IEPA has not decided on the loan terms in future years. Request for Qualification and Proposals The City advertised a request for qualifications and proposals (RFQP) for assistance on January 22, 2025, and received six proposals from Baxter& Woodman, Clark Dietz, CDM Smith, Chastain and Associates, Civil Design Inc, and Fehr Graham on February 21, 2025. The City's selection committee selected CDM Smith in year one but has elected to proceed with Clark Dietz, Inc. for year two. Galvanized Water Service Replacement Year 2 & 3 Professional Services Agreement The proposed PSA includes scope for two IEPA bid packages to allow the City to adjust the bid schedule to better align with the IEPA funding schedule. The first bid package includes the replacement of approximately 380 services as approved in the IEPA's project plan. The areas are identified as any remaining services from year 1 in census track 5.01 and 6 and starting in census track 3, see attached location map. The State defines the boundaries of the census tracks and is used to determine the priority score and loan forgiveness. The plan is approved for 5 years however the plan only identifies a project size of 380 services per year. To meet the requirements of a 10-year schedule starting in December of 2027, the City will need to replace approx. 600 per year. The City plans to propose an amendment to the Project Plan to increase the services we are allowed to replace per year starting in 2028. The second bid package will include the remaining services in census track 3 which has an estimated 813 GRR. The scope also includes water main design for properties that do not have direct access to a water main. In the older sections of town, it was standard practice to not install a watermain on the shorter blocks and serve multiple properties with a shared service. Current regulations do not allow the replacement of a shared service, and each property must have its own dedicated service. In some areas, it will be beneficial to eliminate multiple services in the boulevard and install a water main. Any proposed water main construction is planned to be bid as a separate project due to the IEPA's loan requirements do not allow water main construction to be eligible for lead service funds. The agreement with Clark Dietz will continue to assist the City with its inventory, IEPA loan requirements, and