Competitive bidding environment could cost village
ELBURN—Engineering Enterprises, Inc. representatives told Village Board members on Monday that the bids to do a project were likely to come in higher than they had anticipated, due to increased activity in projects similar to Elburn’s wastewater treatment plant modernization.
To offset those costs, EEI proposed a modification in the depth of the raw sewage pump station, taking it down 30 feet as opposed to the proposed 40-50 feet in the plan. The deadline for bidders to respond was extended a week to accommodate these changes, from Aug. 28 to Sept. 4.
A significant portion of the funding for the $6.5 million project will come from a loan from the Illinois Environmental Protection Agency, which typically takes at least one month to finalize loan agreements. The current interest rate from the IEPA is 1.995 percent, set to increase to 2.225 percent as of Oct. 1, the start of the state agency’s next fiscal year.
If the loan from the IEPA is not finalized by Sept. 30, this could mean a difference of $400,000 to the cost of the project.
EEI requested the village hold a special meeting on Monday, Sept. 8, to award the project to a bidder and get the process moving as quickly as possible.
There is still a chance that the IEPA would not be able to process the loan agreements in time to meet the end of fiscal year deadline. If that happens, trustee Ken Anderson asked if it would be preferable to wait for another construction cycle to see if the bidding environment would improve.
The board will meet on Sept. 8 to award the project.