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Private Lead Service Line Replacement Pilot Program - Phase 2 - Award Construction ContractCity of Dubuque City Council ACTION ITEMS # 2. Copyrighted July 6, 2026 ITEM TITLE: Private Lead Service Line Replacement Pilot Program - Phase 2 - Award Construction Contract SUMMARY: City Manager recommending awarding of the Private Lead Service Line Replacement Pilot Program - Phase 2 (CIP No. 4281000050) to JQ Construction LLC of Waterloo, Iowa in the amount of $2,230,773.00, which is 32.8% lower than the estimate. RESOLUTION Awarding Contract for the Lead Service Line Replacement - Phase 2 Project SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo Private Lead Service Line Replacement Pilot Program - Phase 2 - Award Construction Contract 2. Staff Memo - Water LSLR P2 Bid Award Memo 3. Water LSLR P2 Engineer's Award Recommendation Letter 4. Resolution - Updated 7.2.26 Page 832 of 853 Dubuque THE CITY OF uFA�a9a av DuBE 13 Masterpiece on the Mississippi zoo�•*o rP PP 2017202019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Private Lead Service Line Replacement Pilot Program - Phase 2 - Award Construction Contract DATE: June 30, 2026 Water Department Director Christopher Lester is recommending City Council award the Private Lead Service Line Replacement Pilot Program - Phase 2 (CIP No. 4281000050) to JQ Construction LLC of Waterloo, Iowa in the amount of $2,230,773.00, which is 32.8% lower than the estimate. Due to timing of the project, the funding for this project will be subject to the first budget amendment in FY27. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Christopher Lester, Water Department Director Jennifer Larson, Chief Financial Officer Laura Bendorf, Budget Manager Eldon Schneider, Water Project Supervisor Carl Plumley, Water Distribution Supervisor Page 833 of 853 THE CITY OF Dubuque DUB E AI•Amerin Cih Masterpiece on the Mississippi YP PP zoo�•o 13 2oi7*20*2oi9 TO: Michael C. Van Milligen, City Manager FROM: Christopher Lester, Water Department Director DATE: June 26, 2026 SUBJECT: Private Lead Service Line Replacement Pilot Program - Phase 2 - Award Construction Contract INTRODUCTION The purpose of this memorandum is to request the City Council award the Private Lead Service Line Replacement Pilot Program - Phase 2 (CIP No. 4281000050) to JQ Construction LLC of Waterloo, Iowa in the amount of $2,230,773.00. Due to timing of the project, the funding for this project will be subject to the first budget amendment in FY27. BACKGROUND The City of Dubuque is taking part in a unique opportunity to assist approximately 575 homes in three phases (owner occupied or rented) within the city with the functional replacement of private lead water service lines by trenching or pull -through methods to prevent the potential for drinking water contamination at a house -by -house level. This phase of the pilot program is 100% voluntary and is open to those residents with a verified drinking water lead service line meeting the socioeconomic guidelines established by the Bipartisan Infrastructure Law. The City has moved forward with this unique opportunity and has secured a level of BIL funding to conduct the first of its kind in the community, the Lead Service Line Replacement Pilot Program. The BIL funds are being administered locally through the Iowa Department of Natural Resources' State Revolving Fund (Iowa SRF) program, with 49% of construction costs being forgivable. The first phase of work was completed in the Fall of 2025 and accepted by the council in March of 2026. It includes the replacement of 133 lead service lines and provided valuable implementation information that has guided planning, design, and construction requirements for the next phases of the pilot program. The scope of work in the second phase includes the replacement of approximately 210 lead service lines identified throughout the City's water distribution service area. Actual replacement numbers will be based on Bids from Contractors for unit price items associated with each site. Page 834 of 853 The scope of work in the third phase includes the replacement of approximately 200 lead service lines identified throughout the City's water distribution service area. Phase 3 is planned to go to Bid in late 2026 for construction work in the 2027 construction season. The nature of the replacements varies from site to site, ranging from full replacements (public water main to interior plumbing) to partial replacements where the service materials are a combination of lead and copper (a portion of the service line between the public water main and the interior plumbing). Work is being conducted within the City's right-of-way and on private properties with authorization from property owners. In March 2025, Origin Design was awarded the design for the project, which included final plans and specifications for Bidding. Origin Design has completed the plans and specifications for the Private Lead Service Line Replacement Pilot Program - Phase 2 project. The scope of work and bidding documents have been finalized and are now ready to be advertised for bidding. The scope of work in this phase includes the replacement of approximately 210 lead service lines in the City's distribution system. The nature of the replacements varies from site to site, ranging from full replacements (public water main to interior plumbing) to partial replacements where the service materials are a combination of lead and copper (a portion of the service line between the public water main and the interior plumbing), and includes various surface restorations including curb and pavement replacement and seeding.). Work is being conducted within the City's right-of-way and on private properties with authorization from property owners. The project will be funded through both Iowa SRF and Water Construction Fund sources. This is primarily due to the nature of the work, as certain private portions of the work, required for a complete project are not eligible for reimbursement through the Iowa SRF program. The Engineer's Construction Cost Estimate is $3,320,000.00, of which $2,720,000 is SRF- eligible and loan -forgiveness eligible, and $600,000.00 is not SRF-eligible. The Engineer's Construction Cost Estimate is based on completing the entire pool of 210 sites included in the project scope. The Bidding Documents and Contracts prepared for the project include limitations on project scope based on available budget from the associated sources. The Engineer and Water Department will monitor construction progress and end all Work under the Contract at or near the designated maximum funding amount for construction activities, regardless of completion of Work at all indicated sites. The limits are $1,700,000.00 for SRF-eligible items and $500,000.00 for not SRF-eligible items. DISCUSSION The City Council approved Bid Initiation proceedings at its meeting on May 18, 2026, and the project was publicly advertised on May 22, 2026. The public hearing for reviewing the proposed plans and specifications, form of contract, and estimated project cost was conducted on June 1, 2026. At that meeting, the Council granted approval of the plans, specifications, form of contract, and estimated cost for the project. Sealed bids for the Private Lead Service Line Replacement Pilot Program - Phase 2 contract were received and publicly opened on June 25, 2026. JQ Construction LLC of Waterloo, Iowa submitted the apparent low bid in the amount of $2,230,773. A summary of the bid proposals received is as follows: 2 Page 835 of 853 Item No. Contractor Name Lump Sum Bid Amount 1 JQ Construction LLC $2,230,773.00 2 Midwest Concrete, Inc $2,971,504.00 3 Portzen Construction $3,195,810.00 The base bid of $2,230,773.00 is 32,8% lower than the estimate of $3,320,000.00. Origin Design and Water Department staff have reviewed the bids and determined JQ Construction LLC meets the bidding requirements and can complete the project as specified. PROJECT SCHEDULE The schedule for the project is as follows: — Council Initiate — Advertise for Bids and Publish the Public Hearing Notice — Public Hearing — Receipt of Bid Proposals — Award Construction Contract — Substantial Completion Date — Final Completion Date May 18, 2026 May 22, 2026 June 1, 2026 June 25, 2026 July 6, 2026 May 7, 2027 May 28, 2027 BUDGETIMPACT The original estimate of probable cost for the Private Lead Service Line Replacement Pilot Program - Phase 2 Project are provided as follows (taken from approved UP Application): Description Cost Estimate Legal Expenses $16,000.00 Land and Easements $0.00 Professional Services (Report or Planning) $15,000.00 Professional Services (Design) $65,000.00 Professional Services (Construction) $78,000.00 Construction $1,552,000.00 Equipment $0.00 Other: Preconstruction Inspection $30,000.00 Contingency $234,000.00 Total Estimated Project Cost $1,990,000.00 3 Page 836 of 853 FY26 and FY27 Budgeted Expenses for the Private Lead Service Line Replacement Pilot Program (CIP No. 4281000050) as a whole are provided as follows: CIP Fund Budgeted Expenses Amount 4281000050 SRF Other Capital Outlay $5,433,488.65 FY26 Car -Over 4281000050 Water Construction Construction $1,050,000.00 FY27 Total Project Budgeted Expenses $6,483,488.65 Phases 1, 2, and 3 were set up to share all of the SRF funding, and the approved FY27 Water Construction Fund money is expected to only be split between Phases 2 and 3. Additionally, Phase 1 construction contracts are complete at a value of approximately $1,740,000. The portion of the FY26 and FY27 Budgeted Expenses for the Private Lead Service Line Replacement Pilot Program — Phase 2 Project construction contract are provided as follows: CIP Fund Budgeted Expenses Amount 4281000050 SRF FY26 Car -Over Other Capital Outlay $1,700,000.00 4281000050 Water Construction Construction $500,000.00 FY27 Total Project Budgeted Expenses $2,220,000.00 The proposed construction project will be pulled from the Other Capital Outlay line item which has a current available expense value of $3,487,002.77, which will need to be carryover into FY27. Following start of FY27, an additional $1,050,000.00 in the Construction line item will be available. The Engineer's Construction Cost Estimate is $3,320,000.00, of which $2,720,000 is SRF- eligible and loan -forgiveness eligible, and $600,000.00 is not SRF-eligible. The Engineer's Construction Cost Estimate is based on completing the entire pool of 210 sites included in the project scope. The Bidding Documents and Contracts prepared for the project include limitations on project scope based on available budget from the associated sources. The Engineer and Water Department will monitor construction progress and end all Work under the Contract at or near the designated maximum funding amount for construction activities, regardless of completion of Work at all indicated sites. The limits are $1,700,000.00 for SRF-eligible items and $500,000.00 for not SRF-eligible items. All items are therefore within anticipated budgeted amounts attributed to Phase 2. The base bid amount is $2,230,773.00. The following table details the breakdown of SRF- eligible and not SRF-eligible items in the construction contract bid items: 0 Page 837 of 853 Item Description Project Description Costs SRF-Eligible Bid Item Nos.: 1 through 38 and 41-42 $1,771,273.00 Not SRF-Eligible Bid Item Nos.: 39 and 40 $459,500.00 Base Bid Amount / Contract Amount $2,230,773.00 Actual installed and paid quantities will differ as work progresses, but at the time of Bid Award, the overage in the SRF-eligible bid amount compared to loan UP may be made up for though accessing the contingency in the loan amount. The not SRF-eligible bid amount remains less than the budgeted amount for Phase 2 WCF funds in FY27 and will therefore not require additional coverage. ACTION TO BE TAKEN I respectfully request the City Council adopt the resolution award the Private Lead Service Line Replacement Pilot Program - Phase 2 contract to JQ Construction LLC of Waterloo, Iowa in the amount of $2,230,773.00. Due to timing of the project, the funding for this project will be subject to the first budget amendment in FY27. Prepared by Eldon Schneider, Water Project Supervisor cc: Jennifer Larson, Chief Financial Officer Eldon Schneider, Water Project Supervisor Carl Plumley, Water Distribution Supervisor F:\Users\Water\ENGINEERING\Projects\City\Active\Private LSLR Program - Phases 2 and 3 (2025)\01 - Water Project Supervisor\Progress Reports and Memos\Water Department\Construction Award - P2\Water LSLR P2 Bid Award Memo.docx 5 Page 838 of 853 origin des i g June 26, 2026 Eldon Schneider, Water Project Supervisor City of Dubuque Eagle Point Water Treatment Plant 1902 Hawthorne Street Dubuque, IA 52001 RE: City of Dubuque, Iowa Lead Service Line Replacement - Phase 2 Bid Results Letter Project No.: 25086 Dear Honorable Mayor Cavanagh and Council Members: In accordance with owner instructions, bids for the Lead Service Line -Phase 2 project were opened and read at 10:00 a.m. on June 25, 2026. Three (3) bids were received for this project. The as -read bid results were as follows: Contractor Base Bid JQ Construction LLC $2,230,773.00 Midwest Concrete Inc. $2,971,504.00 Portzen Construction $3,195,810.00 After reviewing the bids, it was determined the low bid was submitted by JQ Construction LLC of Waterloo, Iowa, in the amount of $2,230,773.00. JQ Construction LLC has the experience, workforce, and equipment to properly complete this contract. The engineer's estimate for this project was $3,320,000.00. The low bid of $2,230,773.00 is $1,089,227.00 or 32.80% below the engineer's estimate. Please let us know if the City plans to award the contract and wants Origin Design to prepare and send contract documents to JQ Construction LLC. Sincerely, Origin Design Co. Chris Becklin, PE Civil Engineer DUBUQUE OFFICE 137 Main Street, Ste. 100 Dubuque, Iowa 52001 origindesign.com 800 556-4491 Page 839 of 853 DO R S EY DORSEY+WHITNEY LLP June 29, 2026 VIA EMAIL Jenny Larson Chief Financial Officer Dubuque, Iowa Re: Lead Service Line Replacement - Phase 2 Project Our File No. 430411-NEW Dear Jenny: We have prepared and attached proceedings related to the consideration of bids and award of a construction contract for the Lead Service Line Replacement - Phase 2 Project. The materials attached include the following items: 1. Minutes of the July 6, 2026, City Council meeting reflecting consideration of the construction bids received for the Project, followed by the resolution awarding the contract and fixing the amount of the performance and/or payment bonds. This resolution also authorizes the execution of the contract, subject to the receipt of the performance and payment bonds and a written determination by the Project Engineers that such bonds and other contract documents are satisfactory. 2. Attestation Certificate with respect to the validity of the transcript. As these proceedings are completed, please return one fully executed copy to our office. If you have any questions, please contact Emily Hammond or me. Best regards, David D. Grossklaus John P. Danos Attachments cc: Eldon Schneider Christopher Lester Crenna Brumwell Adrienne Breitfelder Trish Gleason Origin Design 8oi Grand Avenue I Suite 4i00 I Des Moines, IA 150309-8002 IT 53-5.283.3-000 I dorsey.com Page 840 of 853 Dubuque / 430411-NEW / Letting (Cons/Award) MINUTES OF MEETING TO CONSIDER BIDS AND AWARD CONTRACT 430411-NEW (L) Dubuque, Iowa July 6, 2026 The City Council of the City of Dubuque, Iowa, met on July 6, 2026, at 6:30 p.m., at the Historic Federal Building, 350 W. 6th St, Second Floor Council Chambers, in the City, pursuant to posted notice. The Mayor presided and the roll was called showing the following members of the Council present and absent: Present: 004or 6c\vanaJ1*. Gc'1uricJ Mern4xrs bvenJer1'Qe,- o en. Wei cki , Absent: • • Other Business- - MOTION TO APPROVE RESOLUTION Council Member 5 p roan k introduced the resolution next hereinafter set out, and oved that the said resolution be adopted; seconded by Council Member RousseIT The Mayor announced that bids for the construction of the Lead Service Line Replacement - Phase 2 Project had been received before 2:00 p.m., on June 25, 2026, in the office of the City Clerk, City Hall -First Floor, 50 West 13th St, Dubuque, Iowa, and that on the same day, at the same time, in the City Hall -Conference Room A, 50 West 131h St, in the City, such bids had been opened and read, and this was the time and place set for the consideration of such bids. Thereupon, the results of the bidding were reported, and Strand Associates, Inc. (the "Project Engineers") made their recommendations thereon to the City Council. The bids received for the construction of the Lead Service Line Replacement - Phase 2 Project are as follows: Name and Address of Bidder Amount of Bid (List here or attach a sheet listing proposals received.) -1- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA origin des i g June 26, 2026 Eldon Schneider, Water Project Supervisor City of Dubuque Eagle Point Water Treatment Plant 1902 Hawthorne Street Dubuque, IA 52001 RE: City of Dubuque, Iowa Lead Service Line Replacement - Phase 2 Bid Results Letter Project No.: 25086 Dear Honorable Mayor Cavanagh and Council Members: In accordance with owner instructions, bids for the Lead Service Line -Phase 2 project were opened and read at 10:00 a.m. on June 25, 2026. Three (3) bids were received for this project. The as -read bid results were as follows: Contractor Base Bid JQ Construction LLC $2,230,773.00 Midwest Concrete Inc. $2,971,504.00 Portzen Construction $3,195,810.00 After reviewing the bids, it was determined the low bid was submitted by JQ Construction LLC of Waterloo, Iowa, in the amount of $2,230,773.00. JQ Construction LLC has the experience, workforce, and equipment to properly complete this contract. The engineer's estimate for this project was $3,320,000.00. The low bid of $2,230,773.00 is $1,089,227.00 or 32.80% below the engineer's estimate. Please let us know if the City plans to award the contract and wants Origin Design to prepare and send contract documents to JQ Construction LLC. Sincerely, Origin Design Co. Chris Becklin, PE Civil Engineer DUBUQUE OFFICE 137 Main Street, Ste. 100 Dubuque, Iowa 52001 origindesign.com 800 556-4491 Page 839 of 853 Dubuque / 430411-NEW / Letting (Cons/Award) After due consideration thereof by the City Council, the Mayor put the question upon the motion and the roll being called, the following named Council Members voted: Ayes: Le ejeCKel S rcv,11 oUsSe j1WsMeJ Resn& S6ye,,, Nays: Whereupon, the -Mayor declared the said motion duly carried and the said resolution duly adopted. -2- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque / 430411-NEW / Letting (Cons/Award) RESOLUTION NO.271-26 Resolution awarding contract for the Lead Service Line Replacement - Phase 2 Project WHEREAS, pursuant to notice duly posted in the manner and form prescribed by resolution of the City Council of the City of Dubuque, Iowa, and as required by law, bids and proposals were received by this Council for the Lead Service Line Replacement - Phase 2 Project (the "Project"); and WHEREAS, all of the said bids and proposals have been carefully considered, and it is necessary and advisable that provision be made for the award of the contract for the Project; NOW, THEREFORE, Be It Resolved by the City Council of the City of Dubuque, Iowa, as follows: Section 1. The bid for the Project submitted by the following contractor is fully responsive to the plans and specifications for the Project, is heretofore approved by the City Council, and is the lowest responsible bid received, such bid being as follows: Name and Address of Contractor Amount of Bid JQ Construction LLC $2,230,773.00 4912 S Raymond Rd. Waterloo, IA 50701 Section 2. The contract for the Project is hereby awarded to such contractor at the total estimated cost set out above, the final settlement to be made on the basis of the unit prices therein set out and the actual final quantities of each class of materials furnished, the said contract to be subject to the terms of the aforementioned resolution, the notice of hearing and letting, the plans and specifications and the terms of the bidder's written proposal. Section 3. The Mayor and City Clerk are hereby authorized and ordered to enter into a written contract with said contractor for the Project, but only after the contractor submits the performance and/or payment bonds which are required by the contract documents, and after the Project Engineers submit a written determination that such surety bonds and the other contract documents are satisfactory. No additional City Council action shall be required to approve the executed contract or surety bonds. Section 4. The amount of the contractor's performance and/or payment bonds is hereby fixed and determined to be 100% of the amount of the contract. -3- DORSEY & WHrrNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque / 430411-NEW / Letting (Cons/Award) Section 5. All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. Passed and approved July 6, 2026. Attest: , . City Clerk • • Other Business- - On motion and vote, the meeting adjourned. ayor Attest: City Clerk -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Dubuque / 430411-NEW / Letting (Cons/Award) ATTESTATION CERTIFICATE: STATE OF IOWA DUBUQUE COUNTY SS: CITY OF DUBUQUE I, the undersigned, City Clerk of the City of Dubuque, Iowa, hereby certify that the attached is a true, correct and complete transcript of the proceedings had and action taken by the City Council up to the present time in connection with the Lead Service Line Replacement - Phase 2 Project, including a true, correct and complete copy of the resolution referred to in such minutes. +h )U l WITNESS MY HAND this 7 day of y , 2026. #' UPW k City Clerk -5- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA