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CITY OF WEST CHICAGO
INFRASTRUCTURE COMMITTEE
AGENDA ITEM SUMMARY
ITEM TITLE:
AGENDA ITEM NUMBER: 7.D.
Ordinance No. 26-O-0003 — Debt Authorization — Illinois Public
Water Supply Loan Program - Lead Service Line Replacement
Project
COMMITTEE AGENDA DATE: February 5, 2026
COUNCIL AGENDA DATE: February 17, 2026
STAFF REVIEW: Mehul T. Patel, P.E., CFM- Director of Public Works SIGNATURE
APPROVED BY INTERIM CITY ADMINISTRATOR: Tia Messino SIGNATURE
ITEM SUMMARY:
The Lead Service Line Replacement and Public Notification Act, that became effective on January 1, 2022,
requires the City of West Chicago to develop, implement, and maintain a comprehensive Water Service Line (WSL)
Inventory and a Lead Service Line Replacement (LSLR) Plan. On April 15, 2024, the City completed its WSL
inventory based on the best available information and submitted to the Illinois Environmental Protection Agency
(IEPA). The Initial LSLR Plan was submitted to the IEPA on May 7, 2024, with annual updates in 2025 and 2026.
The Final LSLR Plan is due before April 15, 2027. Based on the Initial LSLR Plan, the City has approximately 797
lead water service lines within the City limits. Staff anticipated completing the LSLR project in multiple phases.
The City has been working on the Lead Service Line Replacement Project since 2023. For FY2026, two Funding
Nomination Forms (FNF) for the loan applications to the Illinois Public Water Supply Loan Program (PWSLP) were
submitted to the IEPA. FNF-1 (L17-7215) included 375 LSLR in Phase A at an estimated cost of $7,745,000. FNF-
2 (L17-7216) included 321 LSLR in Phase B at an estimated cost of $6,700,000. During this process, it was
estimated that approximately 100 LSLR will take place as part of the other capital projects such as the Downtown
Modernization and Beautification Project, York Ave Area CDBG Project, etc. Neither L17-7215 (200 out of 400) or
L17-7216 (145 out of 400) made it to the Intended Funding List (IFL) for the FY2026 PWSLP as funds were
exhausted much earlier than expected due to higher demand and increased number of applications. However, both
L17-7215 and L17-7216 are eligible to apply for the Bypass Funds through the PWSLP, which are awarded on a
first come first serve basis until the Bypass Funds are exhausted. Another key point is that Bypass Funded
applications are not eligible for any principal forgiveness, requiring repayment through the Water Fund. Staff is
anticipating that demand for PWSLP will remain elevated for FY2027. As such, staff is recommending the City to
pursue Bypass Funds for L17-7216 and re-apply for L17-7215 in FY2027.
There are many steps required in securing the loan through PWSLP, one of which is the passage of an Ordinance
authorizing the City to borrow funds from the PWSLP. The attached Ordinance sets forth said authorization as well
as sets the maximum level of funds to be borrowed. The current construction cost estimate is $6.70 million.
Construction engineering services are anticipated to be approximately $400,000. Legal costs and mandatory
contingency bring the total project cost to $7.37 million. The proposed Ordinance identifies $7,370,000 as the
maximum loan amount. We are hopeful for competitive bidding on this project and for those prices to come in below
the engineer's estimate. PWSLP offers 0% interest rate for a 30-year period for LSLR Projects.
ACTIONS PROPOSED:
Approve Ordinance No. 26-O-0003 authorizing The City Of West Chicago’s entry into a Public Water Supply Loan
Agreement with the Illinois Environmental Protection Agency governing the terms of the City’s borrowing of up to
7,370,000 from the Public Water Supply Loan Program (PWSLP) to finance Lead Water Service Line Replacement
Project and further authorizing such borrowing.
COMMITTEE RECOMMENDATION:
The Infrastructure Committee voted 5-0 for approval.