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City awards $7.65M lead‑service‑line replacement contract amid single‑bid concerns

City of St. Charles City Council · May 5, 2026
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Summary

The City of St. Charles approved a unit‑cost contract with Swallow Construction to replace lead service lines (Phase I target: 300 services) for an estimated $7.65 million after debate about receiving only one responsive bid and the unit‑cost approach; staff said homeowner outreach and site engineering oversight will be used and will report back after Phase I.

Public Works staff told the council the city has roughly 3,000 lead service lines and federal/state mandates require replacement within a 10‑year timeframe. The council reviewed a unit‑cost bid package and staff recommended awarding the contract to Swallow Construction as the single responsive bidder. Staff described the approach as a unit‑cost contract to limit change orders: contractors are paid for measured quantities (linear feet, square feet, unit items) so the city pays for actual work performed rather than a lump sum.

Tim, the public‑works presenter, said the contract request is for the full budgeted amount of $7,650,000 and that staff’s goal for the year is to complete about 300 services in Phase I to align with road resurfacing schedules. He explained the unit‑cost bid includes a range of unit prices and sample worst‑case examples (the packet included a $25,000 example for a complex service). Tim also said one other bidder attempted to submit but uploaded documents incorrectly and was therefore not responsive.

Several councilmembers urged rebidding to secure competition for a project of this size; others warned that delaying the award risks missing the summer window needed to complete replacements before associated roadwork. One councilmember said the project should be rebid; another said the city is behind schedule this year and recommended moving forward while monitoring actual per‑home costs. Staff said the contract contains typical oversight measures, that each house’s work will be reviewed by a site engineer and a city representative, and that staff will provide periodic updates showing average realized cost per home.

After debate the council approved the award to Swallow Construction. Councilmembers asked staff to provide updates after Phase I so the body can reassess budget projections and, if necessary, rebid or adjust scope in later years.