The approved 2023 Capital Improvement Program (CIP) includes $1.9 million in funding for the Lead Service Line Replacement Program. According to Illinois Public Act 102-0613, the Village has until 2044 to replace roughly 5,000 lead service lines within the Community. The Public Works Department evaluated and prioritized the project scope based on service reliability, neighborhood impacts, and associated capital construction projects. This year’s project proposed the replacement of 232 lead service lines within the Village rights-of-way. 

This project was duly advertised and four (4) different bid proposals were publicly opened on June 14, 2023.  The bid documents included, in part; replacement of 232 varied-sized service replacement (1” – 1.5”), pavement rehabilitation, restoration, and traffic control measures. J. Congdon was the lowest responsible bidder at $2,691,382.00, which is approximately 49% over the funding available in the budget.

BIDDER BASE BID

J. Gongdon Sewer Service $2,691,382.00        
Holiday Sewer and Water $3,393,556.00        
Millennium Contracting $3,811,795.65       
Joel Kennedy Construction $3,875,000.00

Based on the pricing received and available budget, Staff is recommending the Village Board reject all bids for this project.

Staff has evaluated the bid documents with the consulting engineer and determined that, although some of the pricing is consistent with what the industry is reflecting at this time, there are other factors that can be amended to provide a better opportunity for more favorable pricing.  Beyond some lesser items that can be revised in the bid documentation, the time of year that the project was advertised and completion deadline impacted the ability to generate the competitive bidding expected for a project of this scale.  

The advertisement for this project was delayed in anticipation of potential IEPA Loan Forgiveness Program funding that would have assisted with up to 49% of the original project cost, which was originally proposed at approximately $3.8 million. During the review process, the IEPA amended the application criteria, which significantly diminished the Village’s ability to qualify for funding.  As a result of this change, the scope of work had to be revised and the plans were amended.  Staff worked with the consulting engineer to get the project advertised as soon as possible, which ended up being late May.

Staff is working through options on how best to develop a new project scope that will be publicly bid later this year and leverages 2023 and 2024 funding.  Staff will work with the consulting engineer and the Finance Department to ensure the new scope of work is properly designed and funded, prior to bringing it to the Village Board for approval later this year.

RECOMMENDATION

It is recommended that the Village Board reject all bids for the 2023 Lead Service Line Replacement Project, as read at the public bid opening held on June 14, 2023.