Lafayette advances $14.9m lead line replacement phase despite $4m funding gap

Lafayette advances $14.9m lead line replacement phase despite $4m funding gapThe Indiana city awarded the Phase II contract to Atlas Excavating but will cap work at $11 million—funded largely by the State Revolving Fund—while it navigates ongoing challenges securing right-of-entry from residents.

The Board of Public Works and Safety approved a $14,959,865 base bid contract with Atlas Excavating for Phase II lead service line replacements.

Current project funding totals approximately $11 million, comprising a $10 million State Revolving Fund package and $1 million in leftover Phase I bonds.

The city will cap contractor invoices once current funding is depleted, treating the effort as a multi-year project with potential for additional future funding.

Lafayette continues to struggle with securing right-of-entry approvals from homeowners, which previously resulted in $1 million of unspent funds during Phase I.

Lafayette, Indiana, is pushing forward with the second phase of its lead service line replacement program, awarding a nearly $15 million contract despite available funding falling roughly $4 million short of the total bid. During a June 30, 2026, meeting of the Board of Public Works and Safety, officials approved a notice of award to West Lafayette-based Atlas Excavating for a $14,959,865 base bid. However, the city currently holds only about $11 million to finance the work. The financial package relies heavily on $10 million from the Indiana State Revolving Fund (SRF), which is split evenly between a $5 million grant and a $5 million 0% interest loan. The remaining $1 million consists of leftover bond funds from Phase I of the replacement program. To manage the shortfall, the city has structured the agreement so the contractor can only invoice for work completed up to the point that current funding is depleted. Jay Schnebly of Lafayette Water Works noted that because this is a multi-year project, the city has time to evaluate its options. "More than likely, unless we receive additional funding from SRF or decide to do something else, then yes, we will cut them off," Schnebly told the board, adding that the city is not guaranteeing the contractor will receive the full $14.9 million worth of work. The actual expenditure will also depend heavily on the city's ability to secure right-of-entry permissions from private property owners—a hurdle that directly contributed to the $1 million surplus from Phase I. Schnebly acknowledged that right-of-entry participation in the past was "not as high as I would like to hope," preventing the city from fully utilizing its initial bond issue. In response, Lafayette has adjusted its solicitation program for Phase II. While officials indicated the new approach is yielding better results, executing the full $14.9 million contract remains contingent on obtaining every necessary right-of-entry in the project area.