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Gibson City awards $3.4 million contract for water plant upgrades
Summary
The City of Gibson awarded Leander Construction a $3.4 million contract for water treatment filter upgrades and a new well after bids came in well under the engineering estimate. The project is supported by an Illinois EPA low-interest loan that includes substantial loan forgiveness.
The City of Gibson City on Jan. 27 approved a $3,400,000 award to Leander Construction for Water System Improvements that include water treatment plant filter upgrades and construction of Well No. 7. Donohue engineer Will Gray presented the bid results to the council, saying two bids were received and the low bid was $3,400,000, about $1.8 million below the engineering estimate of $5,258,500.
The project, which Supt. Martin said began in 2022, is tied to an Illinois Environmental Protection Agency (IEPA) low-interest loan program; the council was told the financing package includes 80% loan forgiveness. Supt. Martin noted the project’s financing was preceded by a required rate study and annual rate increases to demonstrate the city’s ability to cover ongoing costs.
Alderman Terry Roesch moved to sign the Notice to Award to Leander Construction; Alderman Randy Wyant seconded the motion and the council approved it 7-0. The council record shows the action as the formal award of the construction contract; the council did not specify a contract execution date in the meeting record.
Engineered work on the scope was described by the presenting engineer as Vol. “A” (filter upgrades) and Vol. “B” (new well). The council did not provide detailed construction scheduling or a revised project timeline in the meeting discussion; those details are to be developed in the contract phase with the awarded contractor and project engineer.
Because the IEPA loan and forgiveness terms were discussed in the meeting, any subsequent acceptance of loan documents, final contract execution, or draw requests will be contingent on the city’s internal review and required approvals.
