Aldermen elect to borrow from reserves to pay for water main replacement between 24th and 30th on Broadway

QUINCY — The Quincy City Council voted Monday night to award a $3.16 million bid from Rees Construction for the water main replacement project on Broadway from 24^th to 30^th Street.

Aldermen also agreed to borrow money from the city’s $6 million reserve fund to pay for the project and avoid delaying other projects on College Avenue from Fourth to Eighth Street (in the city’s 2^nd Ward) and Jackson from Fifth to 12^th (which spans the city’s 6^th and 7^th Wards). The Jackson project already has been delayed for three years, and the College Avenue project has been delayed two.

Director of Public Works Jeffrey Conte told aldermen the only bid for the water main replacement came in about six percent higher than the city’s engineering estimate of $2,985,399. Aldermen Dave Bauer (D-2) said the Utilities Committee voted to send the proposal to the City Council without a recommendation.

“This is something that (the committee) felt all the aldermen would have to weigh in on, because it came in extremely high over the engineering estimate,” Bauer said.

Conte reminded aldermen that the city already has awarded a $4.8 million contract to replace water mains on Broadway — which were installed in 1882 — from 12^th to 24^th. He said the city borrowed $5 million to cover the expected the cost of the entire Broadway project.

“We did try to add to our (estimate), knowing that there are some complexities on this,” Conte said. “The fact that the tariffs (implemented by President Trump) were just going into place on the day that we were opening bids, which kind of sent shock waves. People are having problems. Suppliers are having trouble putting numbers down.

“To get this completed, which is going to be another $2 million out of water and $1 million out of capital, is we have to take the money from somewhere else. The budget that has been proposed for water and sewer in the coming year does not have enough money to pay for this as well as the other projects that are planned. So something’s going to have to get cut if we award this project.”

With the Illinois Department of Transportation (IDOT) planning to start repaving Broadway later this year or early next year, Conte doesn’t want to wait on the water main project.

“The last thing we really want to do is tear up our beautiful new Broadway when we get it,” Greg Fletcher (R-1) said.

“Cast iron is prone to breaking when it gets shaken, and in order to put down as much asphalt that’s going to be put down, (IDOT) will be running their heavy vibratory rollers over top of it,” Conte said. “So there’s always potential that when they’re putting down that surface that the main could break. It’s happened in the past.”

Conte offered the idea of seeking a commercial loan to pay for the Broadway work while also keeping the Jackson and College Avenue projects scheduled.

“I don’t have to cash right now to pay for everything,” Conte said. “We could do a short-term loan, and then we wouldn’t have to cut other projects. Of course, we would have to pay interest on (the loan), so that increases the cost of everything.”

Mike Rein (R-5) asked why the city didn’t have available funds.

“Mike, you can say my estimate was low when we put the planning together,” Conte replied. “But prices are also a lot higher now than when we officially budgeted this project.”

Rein then suggested using the city’s reserve funds. 

“Going to get a commercial loan is crazy,” he said. “We’re sitting on $6 million and you need some money. You can use the city’s money. You don’t need to go to the bank and get the money and pay this huge, ridiculous interest.

“It’s unfortunate that the numbers aren’t working out good, and whether we have one bid or five bids doesn’t make a darn bit of difference. It’s going to cost us a bunch of money. I think you’ve just got to take a broader look at where the money is and how we’re using it, and warehousing cash is really not our business. What we’re warehousing is one time money. This is a one-time expense.”

Comptroller Sheri Ray said she could create an amendment to the 2024-25 budget that calls for transferring the money or to making a low-interest loan from the general fund to the utilities department.

“I don’t want to see my colleagues do without their projects,” Fletcher said. “I know what it’s like to be kicked down the street for a couple or three years. I don’t think (7^th Ward aldermen) Ben (Uzelac) and Jack (Holtschlag) would like it. I know (2^nd Ward alderman Jeff) Bergman would not like it. I know I wouldn’t like it. We all want our cookie.”

“We only have one chance to do this with the state, and the last thing I want to see is that road all nice and redone and then have 20 patches in it,” Richie Reis (D-6) said. “And it’s going to happen.”

Aldermen approved the Reis Construction bid 13-1. Bergman voted against the project.

“As of right now, there is no funding for the project for 2nd and 7th Ward with the hopes that there will be,” he said.

During the discussion, Conte told aldermen that IDOT has delayed going out to bid for the Broadway resurfacing, pushing it from late May or June to September. He explained the pause is because the state must do new design work for the traffic lights at 25th and Broadway, which Conte said IDOT expected to be removed.

An IDOT 90-day study “analyzed traffic volumes, crash data and public feedback.” IDOT recommended the lights be removed, as did the city’s traffic commission. However, the City Council voted on March 17 voted to request the lights be reactivated.

“I think if I would have that information, I would have voted differently on the light at Broadway,” Jake Reed (R-6) said. 

“I think (IDOT was) surprised,” Conte said.

“Maybe they’re punishing us a little bit,” Reed said.

Alderman on Monday approved $198,375 from motor fuel tax funds to cover the city’s portion of the traffic signal updates between 24^th and 36^th on Broadway.