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A Resolution Approving a Contract with Trine Construction Corp. for the 26-1 Water and Sewer Improvements Project, in an Amount not to Exceed $6,002,000, and Authorizing its Execution
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Introduction
overview
The Village received bids for Project 26-1 Water and Sewer Improvements. The low responsible bid was submitted by Trine Construction Corp. in an amount of $6,002,000, which is under the budgeted amount for this project. The project includes the replacement of water and sewer mains on the 1100 and 1200 blocks of North Euclid from Greenfield to North Avenue and the 1000 and 1100 blocks of South Scoville from Fillmore to north of Harvard and through Rehm Park. The project also includes reconstructing the roadways at these locations and replacing the private property lead water services at the homeowner’s expense.
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Recommended Action
Adopt the Resolution.
Prior Board Action
There is no prior Board action associated with this item.
Background
The Village received competitive bids for Project 26-1 Water and Sewer Improvements. The low responsible bid was submitted by Trine Construction Corp. in an amount of $6,002,000, which is under the budgeted amount for this project. The project includes the replacement of water and sewer mains on the 1100 and 1200 blocks of North Euclid from Greenfield to North Avenue and the 1000 and 1100 blocks of South Scoville from Fillmore to north of Harvard and through Rehm Park. The project also includes reconstructing the roadways at these locations and replacing the private property lead water services at the homeowner’s expense. There are approximately 81 properties with lead water services within the project’s limits.
Work on the project is scheduled to start in early June on Scoville Avenue, as the project includes water main replacement through Rehm Park to Gunderson Avenue in order to loop the Village’s water main system, which is critical from a water quality and fire flow perspective. The Village will be working with the Park District to have easements and an Intergovernmental Agreement (IGA) approved to allow for this work and the future water main. Work in the park is planned for the summer to coordinate with the Park District’s programs, which start in late summer/fall. A future IGA will be presented to the Village Board for consideration later this year. The overall project is scheduled for completion in mid-November.
Due to the volatile price of oil during the bidding period and the immediate effect oil prices have historically had on asphalt costs, an Illinois Department of Transportation (IDOT) specification was included in the project, allowing for a cost adjustment based on the cost of the bituminous paving materials. The specification is based on the Bituminous Price Index, which is a monthly number published by IDOT. The specification establishes a formula that compares the price index of the month before the bid opening with the price index of the month the work is performed. This adjustment factor is applied via a multiplier based on the percentage of asphalt in a bid item. This specification allows the contractor to make a competitive bid based on current market conditions and be confident that should those conditions change, they will not be harmed. This allows contractors to be more aggressive in their bidding, which is to the advantage of the Village. The cost adjustment allows for both increases and decreases based on the value of the Bituminous Price Index. Staff will monitor the situation and prepare a change order if necessary.
Timing Considerations
Adoption of the Resolution at this time will allow the contractor to complete construction in the desired timeframe. Construction of the project is scheduled to be completed by November 13th of this year.
Financial Impact
The FY26 Budget included $6,720,000 for this project in the Water and Sewer Fund. The low bid of $6,002,000 is under the budgeted amount for the project. There is $3,400,000 available for this project in the FY26 Budget in the Water and Sewer Fund, Public Works - Water, Water Distribution, Capital Improvements account no. 5040.43730.777.570707. There is $3,320,000 available for the $2,602,000 needed for this project in the FY26 Budget in the Water and Sewer Fund, Public Works - Sewer, Sewer Collection, Capital Improvements account no. 5040.43750.781.570707.
This project includes the replacement of up to 81 private side lead water services by Trine, typically at a cost of $7,500 per 1” service plus any water meter replacement costs, typically of about $520 per ¾” dia. meter. Revenues received from any water service replacement work will be deposited into the Water Fund to offset these expenses.
Due to the volatile price of oil during the bidding period and the immediate effect oil prices have historically had on asphalt costs, an Illinois Department of Transportation (IDOT) specification was included in the project, allowing for a cost adjustment based on the cost of the bituminous paving materials. The specification is based on the Bituminous Price Index, which is a monthly number published by IDOT. The specification establishes a formula that compares the price index the month before the bid opening with the price index the month the work is performed. This adjustment factor is applied via a multiplier based on the percentage of asphalt in a bid item. This specification allows the contractor to make a competitive bid based on current market conditions and be confident that should those conditions change, they will not be harmed. This allows contractors to be more aggressive in their bidding, which is to the advantage of the Village. The cost adjustment allows for both increases and decreases based on the value of the Bituminous Price Index. Staff will monitor the situation and prepare a change order if necessary.
Operations Impact
There is no operating impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
This project supports geographically equitable infrastructure investment and includes enhanced public health outcomes for residents throughout the community via lead line replacement, reducing potential long-term exposure to lead. Because the cost of replacing private property lead water service lines is the responsibility of the property owner, there is a disproportionate potential impact on lower-income households. The Village Board has authorized a low-interest loan program to aid all households in managing additional financial burden. The Village also has a CDBG-funded lead abatement grant for income-qualified properties to fund up to $5,000 towards the cost of the private side lead water service replacement work.
Community Input
Staff sent letters to the residents in the project limits in January of this year notifying them of the upcoming project, lead water service replacement work, etc. Staff met with residents on the 1100 block of Scoville and provided additional information. Additional mailings regarding details on the project, lead water service replacement work, and payment options, including a link to online forms and applications, are being prepared for distribution at this time.
Staff Recommendation
Adopt the Resolution, which will allow for the construction of this project to move forward on its desired schedule.
Advantages:
• This contract will allow for the procurement of needed services.
Disadvantages:
• There are no disadvantages to this action.
Alternatives
Alternative 1:
The Board can delay action to gain additional information.
Advantages:
• Board Members would be presented with the additional information they requested.
Disadvantages:
• The timing of the eventual Board action will impact the desired implementation schedule.
Alternative 2:
The Board can vote down the item.
Advantages:
• There are no advantages to this action.
Disadvantages:
• Needed water and sewer replacement work will not occur
Anticipated Future Actions
A future Intergovernmental Agreement with the Park District will be required for the new water main in Rehm Park.
Prepared By: Bill McKenna, Village Engineer/Assistant Public Works Director
Reviewed By: Rob Sproule, Public Works Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Contract and Bond
3. Proposal
4. Bid Summary