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A Resolution Approving a Renewal of the Independent Contractor Agreement with IHC Construction Companies, L.L.C. for the 2026 Water Service Line Replacement Program in an Amount not to Exceed $500,000.00 and Authorizing its Execution
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Introduction
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This renewal provides for the replacement of the Village’s portion of potable lead water service lines throughout the village and complete service line replacement on emergency repairs. As residents replace the private portion of the lead water service line with copper pipe, the Village will replace the public side. Annually, the Village hires a contractor to assist in completing this work. IHC Construction Companies performed this work last year following a competitive bidding process for fiscal year 2024. The original Agreement provided for two possible one-year renewals. It is proposed to exercise the second renewal with IHC Construction Companies for fiscal year 2026 water service line replacement program.
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Recommended Action
Adopt the Resolution.
Prior Board Action
The Village Board has approved funding for similar agreements, as recently as the 2025 fiscal year, including the first renewal with IHC Construction Companies allowed for in the original Agreement.
Background
This Agreement supports the Village’s Lead Abatement Program. This program is for residential properties, either single-family or multi-unit residential buildings, that elect to upgrade the private water service line at the property owner’s expense. Under this program, the Village will construct, at no expense to the property owner, a new 1-inch water service from the water main up to and including a new buffalo box to be located in the parkway.
The work completed under this contract is intended to supplement work performed by in-house Village staff in the Public Works Department, Water and Sewer Division. Locations assigned to the contractor are typically locations that are longer runs, more difficult for the in-house staff to complete, require special equipment, or when Village staff are committed to other maintenance duties. Oftentimes, this replacement work is done in conjunction with a resident upgrading the private side of their service line with a plumbing contractor. Other times, due to state and federal unfunded mandates, this replacement work is done as part of an emergency service line replacement when the public side of the water service line has failed.
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 second and final renewal with IHC Construction Companies, L.L.C., in an amount not to exceed $500,000.00 in fiscal year 2026.
Timing Considerations
While there are no specific timing considerations associated with this item, adoption of the resolution at this time will allow for emergency replacement of lead service lines and continued planning associated with lead service line replacement in 2026.
Budget Impact
The proposed Fiscal Year 2026 Water & Sewer Fund includes $500,000.00 to complete water service upgrades in the Water & Sewer Fund, Capital Improvements, GL# 5040-43730-777-570707.
For this renewal, the contractor is allowed an increase in their unit prices per the terms of the original Agreement. The increase for fiscal year 2026 is based on the consumer price index (CPI) of October 2024 to September 2025 and shall not exceed 5.0%. For fiscal year 2026, the contractor is entitled to a 3.5% increase, and IHC Construction requested to increase their unit pricing by that amount and provided an updated copy reflecting those unit prices.
Staffing Impact
There is no staffing impact associated with this item. The item aligns with the Public Works department’s core service delivery.
DEI Impact
This project is in alignment with the Climate Ready Oak Park Plan Goal: DW06: Identify options to create an equitable and affordable full lead service line replacement program for low- and moderate-income residents. If the line needs to be replaced due to failure on the Village side of the service, the entire service, both public and private, will be replaced at the expense of the Village.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Adopt the resolution for contractor services associated with the 2026 Water Service Line Replacement Program.
Advantages:
• The proposed resolution provides for the necessary contractor assistance to complete lead service line replacements. Without this assistance, the Water and Sewer Division would be overwhelmed with additional work and would need to hire additional employees.
Disadvantages:
• There are no disadvantages to completing lead service line replacement as there are state and federal mandates requiring the Village to facilitate this replacement beginning in 2027.
Alternatives
The Village Board could delay action to gain additional information.
Advantages:
• The Village Board would receive the additional information requested to make a more informed decision.
Disadvantages:
• The Water and Sewer Division would be unable to perform public side or emergency lead service line replacement until the resolution is approved because the additional work would overwhelm the division’s already heavy workload.
Anticipated Future Actions
It is anticipated that the Public Works Department, Water and Sewer Division, will continue to request Village Board approval annually for the department’s Lead Service Line Replacement Program until all lead service lines throughout the Village have been replaced.
Prepared By: Erin Duffy, Deputy Public Works Director
Reviewed By: Rob Sproule, Public Works Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Renewal - Independent Contractor Agreement
3. Supporting Documentation