Peru unveils aggressive, federally backed plan to replace lead service lines; homeowners not billed directly

City utilities staff on June 1 gave an extended presentation on Peru's federally funded lead service line replacement program, outlining funding, schedule, homeowner protections and outreach as crews advance through the first two phases.

Josh Chance, utilities staff, said the work responds to the 2024 revisions to the lead and copper rule and requires full service-line replacements (from the main to the home). He told the council the city obtained low-cost financing and grants to cover construction: phase one received $2.5 million in 0% financing plus a $2.5 million grant, and phase two secured $5 million in 0% financing plus a $5 million grant. Engineers estimate the full multi‑phase program could total about $29 million.

"It costs our ratepayers, but it doesn't cost the individual homeowner," Chance said, describing program design that covers replacement costs so homeowners are not billed the typical private-side expense (often $3,000–$5,000). He and Jamon Bicycle, superintendent of the Division of Water Management, said the program must replace the entire run (utility side and customer side) to comply with federal requirements.

Staff described an inventory process that initially marked roughly 4,200 services as potentially lead or galvanized because of missing historic records; crews have potholed streets and verified many lines by excavation. The city said it will aim for "substantial completion" of major construction between 2024 and 2034 and must finish all work by 2037 under federal deadlines unless exceptions apply. Staff flagged operational hurdles: roughly 300 homeowners in phase-one areas had not returned right‑of‑entry forms, and the work requires repeated door‑knocking, mailers and evening outreach to schedule replacements.

Construction and resident impacts: staff explained that crews may take several hours on a property (water off for the work day) but use techniques to limit interior disruption and provide pitcher filters and flushing guidance after disturbance. Replacement work will be followed by restoration of sidewalks and pavement where required; however, SRF (State Revolving Fund) rules restrict using those funds for paving full streets, which means only disturbed segments will be restored under grant rules.

Outreach and testing: staff said the city will offer free post‑replacement lead testing to customers whose service lines are replaced, provide flushing instructions (engineers recommended a 10‑minute flush protocol), and make forms and information available online and by mail. The utilities office will collect right‑of‑entry forms and help schedule the work. Chance and Bicycle urged cooperation: "This is an unheard‑of opportunity to get a very expensive water line replaced" and warned that properties without completed replacements by the deadline could face service consequences.

What happens next: staff said potholing and replacements are ongoing in phase one, additional potholing for phase two will begin in late July or August, and the city will continue intensified outreach to obtain right‑of‑entry consents so contractors can proceed.

Why it matters: the program reduces household exposure to lead without charging homeowners directly for the private-side construction, but success depends on homeowner participation, contractor schedules, federal reporting rules and constrained flexibility around pavement restoration under grant conditions.