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Council approves notice of intent to award $113.86M South Slope water-reclamation construction contract
Summary
Council approved a notice of intent to award the South Slope Water Reclamation Facility construction contract to IHC Construction Companies LLC for $113,862,000 and staff outlined an anticipated IEPA SRF loan of about $120 million for 2026 at ~1.9% to reduce borrowing costs; final award expected July 8.
City staff asked council to approve a notice of intent to award the South Slope Water Reclamation Facility project to IHC Construction Companies LLC for $113,862,000. The notice allows the apparent low bidder to begin contract preparations while the city finalizes financing.
Engineering staff reported they re-applied to the Illinois Environmental Protection Agency for a 2026 SRF loan and that the agency indicated a larger allocation for Moline's project this cycle (about $120 million at an anticipated interest rate near 1.9%). City finance staff said securing the SRF loan rather than bond-financing would reduce overall interest costs significantly over the life of the project.
Because the contract bid documents require the city to award within 90 days, staff said they were returning a notice of intent now and planned to present the formal award for council vote on July 8. The council voted to approve the notice of intent; the motion carried on roll call (8-0).
Why it matters: the South Slope project responds to regulatory phosphorus-reduction mandates that the city must meet and represents a substantial capital investment requiring long-term debt planning and likely rate adjustments for wastewater customers. Staff provided a multi-year rate plan outline as part of the presentation.
Action details: the council approved the notice of intent to award to IHC Construction Companies LLC; the formal contract award will be brought to council in July once financing is finalized.
