Lockport council approves $71.46M wastewater contract and authorizes loan ceiling increase

The Lockport City Council voted to award Phase 2 of the Division Street wastewater treatment plant expansion to Williams Brothers Construction for an amount not to exceed $71,460,000 and authorized an ordinance to raise the loan ceiling under the Water Pollution Control Loan Program.

Engineering consultant Brent Perez of Baxter & Woodman told the council that updated bidding and long project duration increased costs from an earlier engineering estimate (~$54 million) to the current bids. Factors cited included construction escalation, long lead times for materials, and Build America Buy America requirements that restrict procurement to U.S.-sourced materials. Perez said cost estimates were updated near the end of the prior year and that multiyear procurement adds uncertainty.

City staff outlined options if the final IEPA (Illinois Environmental Protection Agency) loan award is less than the bid: the city would request a higher loan ceiling from IEPA, and if that still left a gap staff would adjust the capital improvement program, use reserves or delay nonessential projects. The council approved the contract award by roll-call vote and later approved resolution 26013 to authorize borrowing through the Water Pollution Control Loan Program up to the higher amount, while staff emphasized they might not borrow the full authorized sum.

Council members asked about life-cycle expectations for the new plant; staff said major concrete components should last 50-plus years while mechanical and electrical systems have shorter life cycles and require routine maintenance. The council was also told the selected contractor has worked on prior phases.

Next steps include executing the contract, finalizing loan paperwork with IEPA and returning to council with any necessary CIP (capital improvement program) adjustments.