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West Dundee board approves $4.2 million IEPA loan amendment, awards Phase 2 lead service contract contingent on funding
Summary
Trustees adopted an ordinance increasing an IEPA loan to $4.2 million to cover rising costs for lead service-line work, and voted to award a $3.8 million Phase 2 replacement contract to IHC Construction Companies LLC contingent on receipt of IEPA bypass funds; construction supervision contracts were also authorized.
The Village of West Dundee on June 1 approved an amended loan agreement with the Illinois Environmental Protection Agency for $4,200,000 to cover increased costs associated with the village's lead service-line replacement program, and awarded the Phase 2 replacement contract contingent on receiving IEPA bypass loan funds.
Village staff told trustees that phase costs rose above original estimates. Joe said the village "originally estimated the phase 3 phase 2 project to be 3,900,000" and that "based on the total numbers, it appears that our costs are probably going to be closer to 4.2," citing an approximately $300,000 increase. Trustee Gasca and staff described rolling phase 3 into phase 2 after losing earlier phase-2 funding and securing bypass funding alternatives.
Trustees voted to adopt an ordinance authorizing the amended loan agreement with the IEPA for a total of $4.2 million. The board then considered construction procurement for Phase 2. After reviewing two sealed proposals, the board approved a contingent award to IHC Construction Companies LLC. Trustee Oscar moved "to award a contract to IHC Construction Companies LLC to complete phase 2 of the lead service line replacement project at a cost of $3,795,357 contingent upon receipt of bypass loan funds from the IEPA," and the motion carried.
The board also approved a professional services agreement with Baxter & Woodman for enhanced construction supervision for Phase 2 at a cost not to exceed $214,700, contingent on receipt of the bypass loan funds. Staff explained that the supervision work includes address-level verifications and reporting required by the IEPA as a loan condition. As Joe explained, the village "won't actually give [the contractor] a notice to proceed till we have these funds." Trustees and staff discussed scheduling and noted the village expects a clearer start date within 30–45 days if loan funds arrive.
Why it matters: The amendment and contingent contract move the village closer to replacing lead service lines in more residences, with roughly $4.2 million in borrowing and a near-$3.8 million construction contract contingent on external loan approval. Next steps: staff will seek final IEPA bypass funds before issuing a notice to proceed and will return with scheduling details and preconstruction requirements.
