Submitted By
Rob Sproule, Public Works Director
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
A Resolution Approving a Renewal to the Independent Contractor Agreement with IHC Construction Companies, L.L.C. for the 2025 Water Service Line Replacement Program, in an Amount not to Exceed $500,000.00 and Authorizing its Execution
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Overview
Overview
This renewal provides for the replacement of the Village’s portion of potable lead water service lines throughout the village and whole service line replacements on emergency repairs. As residents replace their portion of the lead water service line with copper pipe the Village will replace our side. Annually, the Village hires a contractor to assist in completing this work. IHC Construction Companies has performed this work last year after a competitive bidding process for 2023. The Agreement provides for two possible one-year renewals. It is proposed to exercise the first renewal with IHC Construction Companies for fiscal year 2025 water service line replacement program.
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Recommendation
Recommendation
Adopt the Resolution.
Background
This project includes replacement of the Village side of the lead water service line throughout the Village. This work is commonly called the Lead Abatement Program.
The work completed under this contract is intended to supplement work performed by the Public Works Water and Sewer Division field crews. Locations assigned to the contractor are typically locations that are longer runs, more difficult for the field crews to complete or require special equipment or at times when the field crews are committed to other maintenance work. This replacement work is done in conjunction with a resident upgrading the private side of the service with a plumbing contractor. As lead laws have changed, additional whole service upgrades will be required when an emergency repair needs to made on the public side of the service.
Competitive bids were opened on Wednesday, October 25, 2023 at 2:00 P.M., for the 2024 Water Service Line Replacement Program, Project # 24-102. The low responsible bid was submitted by IHC Construction Companies, L.L.C. in a base bid amount of $481,856.00
Staff recommends exercising the first of two renewals with IHC Construction Companies, L.L.C.
Fiscal Impact
The proposed Fiscal Year 2025 Water & Sewer Fund includes $500,000.00 to complete water service upgrades in the Water & Sewer Fund, Capital Improvements, account no. 5040-43730-777-570707. For this renewal, the contractor is allowed an increase in their unit prices per the terms of the agreement. The increase is based on the October to September CPI and shall not exceed 5.0%. In this case, the contractor is entitled to a 3.45% increase. IHC Construction requested to increase their pricing by 3.45% for the 2025 year.
DEI Impact
N/A.
Alternatives
The Board may delay action to gain additional information.
Previous Board Action
The Board has approved agreements for this annually.
Citizen Advisory Commission Action
N/A.
Anticipated Future Actions/Commitments
It is anticipated that the Public Works Department will continue to bring this request to the Village Board annually.
Intergovernmental Cooperation Opportunities
N/A.