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TO: Mayor Richard C. Irvin
FROM: John Hoffmann, P.E. Engineering Coordinator
DATE: May 23, 2022
SUBJECT:
A resolution Authorizing a Contract and IEPA PWSLP loan agreement with Brandt Excavating Inc, 385 E. Hoover Street, Morris, IL 60450 for the Lead Service Replacement Project - Contract 1 for the bid amount of $4,592,394.46, pending approval of an IEPA principal forgiveness loan.
PURPOSE:
The City of Aurora qualifies for principal forgiveness for lead service line replacement and for FY2022 the maximum forgiveness amount is $4,000,000.00. The proposed 2022 budget includes both the expenditure and revenue for this project; the City will front fund the construction and seek reimbursement at the same time as payments are made to the contractor.
This resolution will authorize the City to sign the Notice of Intent to Award and to later fully execute the bid documents with the IEPA. City staff will submit the required bid document paperwork and bidding certification to the IEPA. Upon IEPA approval of this paperwork, the contract will be executed with Brandt Excavating Inc.
This resolution will also grant permission for a loan agreement to be executed with the IEPA for the Public Water Supply Loan Program.
BACKGROUND:
The State of Illinois passed Public Act 102-0613 in August 2021 titled the Lead Service Line Replacement and Notification Act requiring full replacement of lead water service lines when disturbed. The City of Aurora has an estimated 19,500 lead water services connected to the public water system. The Lead Service Line Replacement Project - Contract 1 will include the full replacement of the lead service from the water main to the water meter in the house or the completion of previous partial lead water services to eliminate all sections of lead between the main and meter.
DISCUSSION:
Three total bids were received, opened, and read aloud on May 18, 2022; the tabulation of these bids is included as Exhibit A. The lowest responsible bid in the amount of $4,592,394.46 was submitted by Brandt Excavating Inc. The lead service replacement ($4,592,394.46) will be funded with account 510-4058-511-73-02. Anything above the $4,000,000 principal forgiveness loan will be funded with account 510-4058-511-73-02 with funds transferred from the appropriate water account. Also included as Exhibits B, C, D & E are the Advertisement for Bid, Brandt Excavating Inc Submitted Bid, Addendum No. 1 and Addendum No. 2.
IMPACT STATEMENT:
The City will be utilizing available forgivable loan funds to construct this project. Once completed, the project will reduce the number of lead services lines requiring replacement in the City of Aurora. During construction, there will be various local roadway and lane closures, and delays are to be expected. Individual residential water outages will be kept to a minimum while the service is being connected at the water main and inside the house.
RECOMMENDATIONS:
I request the proposed resolution awarding the contract to Brandt Excavating Inc, in the amount of four million, five hundred ninety-two thousand, three hundred ninety-four dollars and forty-six cents ($4,592,394.46) and execute a loan agreement with IEPA PWSLP be adopted.
cc: Infrastructure and Technology Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing a Contract and IEPA PWSLP loan agreement with Brandt Excavating Inc, 385 E. Hoover Street, Morris, IL 60450 for the Lead Service Replacement Project - Contract 1 for the bid amount of $4,592,394.46, pending approval of an IEPA principal forgiveness loan.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, operates its drinking water system (“the System”) in accordance with the provisions of the Illinois Constitution, Article VII, and the Local Government Debt Reform Act, 30 ILCS 350/1 et seq. (collectively “the Act”); and
WHEREAS, The State of Illinois passed Public Act 102-0613 in August 2021 titled the Lead Service Line Replacement and Notification Act requiring full replacement of lead water service lines when disturbed; and, and
WHEREAS, The City of Aurora has an estimated 19,500 lead water services connected to the public water system, and
the MAYOR and CITY COUNCIL of the City of Aurora (“the Corporate Authorities”) have determined that it is advisable, necessary, and in the best interest of the public health, safety, and welfare to improve the System, including the following:
The Lead Service Line Replacement Project, including the full replacement of the lead service from the water main to the water meter in the house or the completion of previous partial lead water services to eliminate all sections of lead between the main and meter all in accordance with the plans and specifications prepared by the City, which Project has a useful life of 50 years; and
WHEREAS, the estimated cost of construction and installation of the Project, including engineering, legal, financial and other related expenses is greater than $4,000,000.00, and there are insufficient funds on hand and lawfully available to pay these costs, and
WHEREAS, the costs are expected to be paid for with a loan to the City from the Public Water Supply Loan Program through the Illinois Environmental Protection Agency, the loan to be repaid from the City of Aurora Water and Sewer Fund and the loan is authorized to be accepted at this time pursuant to the Act, and
WHEREAS, said loan shall bear an interest rate as defined by 35 Ill. Adm.
Code 662, which does not exceed the maximum rate authorized by the Bond Authorization Act, as amended, 30 ILCS 305/0.01 et seq., at the time of the issuance of the loan, and
WHEREAS, the City of Aurora qualifies for principal forgiveness for lead service line replacement and for FY2022 the maximum forgiveness amount is $4,000,000.00, and
WHEREAS, in accordance with the provisions of the Act, the City is authorized to borrow funds from the Public Water Supply Loan Program in the aggregate principal amount of $4,000,000.00 to provide funds to pay the costs of the Project, and
WHEREAS, the loan to the City shall be made pursuant to a Loan Agreement, including certain terms and conditions between the City and the Illinois Environmental Protection Agency, and
WHEREAS, Brandt Excavating Inc, submitted the lowest responsible bid out of 3 bids received, opened and read aloud on May 18, 2022, and
WHEREAS, the lead service replacement ($4,592,394.46) will be funded with account 510-4058-511-73-02;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Agreement with Brandt Excavating Inc, 385 E. Hoover Street, Morris, IL 60450 in the amount of four million, five hundred ninety-two thousand, three hundred ninety-four dollars and forty-six cents ($4,592,394.46) for the Lead Service Replacement Project - Contract 1 is hereby authorized, pending the approval of a principal forgiveness loan from the Illinois Environmental Protection Agency (IEPA) Public Water Supply Loan Program (PWSLP), and the Mayor is hereby authorized to execute the necessary documents to implement said Agreement with Brandt Excavating Inc and the IEPA Loan Agreement.