Bloomington awards $60.3m contract for systemwide water distribution overhaul

Bloomington awards $60.3m contract for systemwide water distribution overhaulBloomington City Council has awarded River City Construction a $60.32 million contract for new pumping, storage and transmission infrastructure. The project is intended to reduce reliance on ageing facilities around Division Street while adding 10 million gallons of ground storage.

River City Construction was approved for Contract C at $60.32 million, including a $267,000 alternate for a water salesman building and concrete driveway at Site 500.

The works include a 22.5mgd distribution pump station, two 5MG ground tanks, a 36-inch transmission main along the Hershey Road corridor, and upgrades at Fort Jesse and Division/Enterprise facilities.

River City's total bid was lower than Williams Brothers Construction's $61.05 million and P.J. Hoerr's $61.95 million, both including the alternate.

The contract is about 13% above the February 2026 estimate of $53.2 million; the engineer cited oil prices, tariffs and nationwide data-centre construction competition.

The FY2027 Water Fund budget includes $49 million for the project, with staff identifying funds from delays and reprioritisation of other Water Fund items to help cover the gap.

Bloomington City Council has approved a $60.319 million contract with River City Construction for a major expansion and reconfiguration of its potable-water distribution system, including new pumping capacity, 10 million gallons of ground storage and a 36-inch transmission main. The award for Potable Water Distribution System Improvements – Contract C is a central phase of Bloomington's broader systemwide programme. It follows planning initiated in 2020, when the city commissioned Donohue & Associates to assess replacement options for the Division and Enterprise pump stations. The subsequent study found that a wider system approach would be more cost-effective and sustainable than constructing a single replacement pump station. Contract C includes an approximately 22.5-million-gallon-per-day distribution pump station at a new northeast site near Route 66, alongside two 5-million-gallon ground storage tanks. The project also includes a 36-inch transmission main, generally following the Hershey Road corridor, to connect the new pumping and storage facilities with the existing network near Fort Jesse and Hershey. Other elements include upgrades at the Fort Jesse pumping and storage facilities; rehabilitation of an existing approximately 400,000-gallon elevated tank; and changes to the Division/Enterprise pumping and booster-station configuration. During the council meeting, Water Department director Brett Lueschen said the Enterprise pump station would be removed from service, while the Division Street facility would be converted into a booster station. The city said the investment will increase storage for peak demand and emergencies, improve pressures and hydraulic performance, provide operational redundancy, and place major pumping and storage assets closer to larger water users and expected growth. It will also remove the need to rely on a 1929 transmission main running from Fort Jesse through Normal to the Division Street infrastructure. Three firms bid on the contract. River City submitted a $60.053 million base bid and a $267,000 alternate, for a total of $60.319 million. Williams Brothers Construction submitted a total of $61.05 million, while P.J. Hoerr submitted $61.948 million. Donohue & Associates recommended River City as the lowest responsive and responsible bidder. The total is approximately 13% above the engineer's February 2026 estimate of $53.2 million. Donohue cited a rise in oil prices from $70 per barrel in February to $92 at the time of its August recommendation, tariffs implemented during 2026 on semiconductors and on steel, aluminium and copper, and competition from data-centre construction for labour and materials. The project will be paid from the Water Fund. While Bloomington's FY2027 budget includes $49 million for the project, staff said delays and reprioritisation of other Water Fund items had identified funds to help close the difference. If required at year end, a budget amendment will be brought to council.