To speed Chicago’s lead pipe replacement, end the obscene overcharge it’s paying – Wirepoints

By: Mark Glennon*

The Chicago City Council is wringing its hands over how to get more lead pipe service line replaced more quickly. A large part of the answer should be obvious but is being ignored: Pay only what’s reasonable to get more pipes replaced more quickly. Instead, Chicago is paying multiples of what it should cost. It’s inexcusable.

On Tuesday, two council committees looked at how to shorten the 40-year timetable projected by Mayor Brandon Johnson’s administration to replace the 410,000 lines needed for replacement, as reported by CBS Chicago and others. Service lines are the connections running from a residence to a main water line.

Chicago is currently paying $22,500 per service line replacement, as we wrote last month. That’s crazy. Evidence is everywhere that the cost should be a fraction of that. For example:

  • The U.S. Environmental Protection Agency estimated the average cost nationally at $4,700. The Brookings Institute used that number in estimating the total national cost of lead service line replacement.
  • The Chicago Federal Reserve Bank used $7,700 per line in estimating cost of service line replacement.
  • A comprehensive report from last year looking at many cities, funded by the Natural Resources Defense Council concluded that costs should average from $4,500 to $6,600, depending on the nature of the replacement. That study specifically called out Chicago’s projected costs at the time as being over two times the study’s estimate.
  • In New York City, public policy research groups estimate a replacement cost per line of $8,800.
  • Detroit, based on a competitive bidding process, will be paying $8,000 to $10,000 per line.
  • A City of Milwaukee program costs $4,800 per line.

And — get this — The City of Chicago itself says online that, if an owner wants to have it done themselves, the cost “is generally in the range of $2,500 to $5,000.”

I can find no estimated cost or other city program with a cost per line remotely close to what Chicago is paying.

Is this just a huge boondoggle for unionized city workers who are doing the replacements? If there’s another explanation beyond graft and incompetence, let’s hear it.

The EPA this week set a ten-year goal of replacing lead service lines across America but exempted Chicago because of the high cost and large number of replacements needed. The city is looking at 40 years to complete the job.

Shorten that timetable by paying what’s fair and in line with the market.

*Mark Glennon is founder of Wirepoints.

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Leaving Soon, just not soon enough
2 years ago

This is how government works, must pay back the unions for votes and graft. Welcome to Illinois and the Chitty of Chicago. Has been going on for generations.

RON
2 years ago

Follow this model: I recently re-roofed my home, I got 4 competitive bids. They were in the range $8,000 to $14,000. I chose the lowest one. Competition is good for the buyer and the vendor . I paid for a city permit and inspection.Every body was happy.

Mark F
2 years ago

The plumbers union endorsed installing these lead pipes in Chicago long after the rest of the country abandoned them. Now they are getting paid exorbitant sums to replace them, a problem for which they are largely responsible. It would be interesting to see what companies are doing these pipe replacements and who they are contributing money to or who they have hired from the Chicago political elite for no show jobs. Where is the FBI when you really need them?

Paul
2 years ago

It’s the plumbers union you can thank for the city building code requiring them up into the 80s IIRC.

RON
2 years ago
Reply to  Paul

It does take a lot more time and skill to sweat lead joints, amateurs cant do it; now nobody can

Marie
2 years ago

Not only does Chicago, the Union Capital of the World, pay an unrealistic amount for this service but remember these guys are racking up huge pensions. If we pay them twice what they’d get paid in most other places, why wouldn’t some of them stand around doing nothing? Don’t tell me this protected class of workers are thinking. Most of us can think and work at the same time. I would still buy bottled water.

Marie
2 years ago
Reply to  Marie

“Pensions Paid First”, how about some words of wisdom for this one? How about a personal contribution to the city pension plan to cover this outrage?

Pensions Paid First
2 years ago
Reply to  Marie

Why would I contribute to the Chicago’s pension plan any more than any other resident of Illinois? You are free to donate your money and make a personal contribution but I will pay my share as determined by the tax code.

Marie
2 years ago

You always dodge the point in the question. Never a straight answer, never a straight explanation. We got it.

Pensions Paid First
2 years ago
Reply to  Marie

I’ve dodged nothing and answered everything directly. You asked for a personal contribution and I told you I wouldn’t. Could you really not understand that from my comment?

Let me be clear. I will not be paying more. Instead ALL taxpayers can pay what they are required by the tax code.

Hello, Indiana!
2 years ago
Reply to  Marie

Pigs Paid First.

Hello, Indiana!
2 years ago
Reply to  Marie

Pigs Paid First.

Wyatt Earp
2 years ago

Let the Chumbalones borrow the money and pay it back, blind leading the blind.
This is humor gone wild. Wait until next shoe drops, the RTA needs more money, if you cannot afford it CLOSE IT DOWN!

Scott Rupp
2 years ago

That’s what happens when you have a Democrat controlled city. Nothing works, everything costs too much and voters are too stupid to get rid of their abusers.

sue
2 years ago
Reply to  Scott Rupp

OMG………..A TRUTH TELLER!!!!!!!! LOVE IT

Where's Mine ???
2 years ago

Just this week, City Water Dept replaced my neighbors lead water service line. He signed up for pilot program. I went out and talked to the City Water Dept guys: It took Water Dept 1 & 1/2 days to complete replacement. they still have to fix curb&gutter and patch approx 4’x4′ hole in street which I assume will be by CDOT. They do tap new waterline all the way to water-main in street, and not just from shut-off valve (buffalo box) in parkway. As you would expect, tons of city Water Dept guys sanding around and in vehicles staring at… Read more »

Ataraxis
2 years ago

I once saw 6 city workers painting a fireplug on Van Buren in the Loop.
One guy waiving an orange flag to alert traffic.
Two guys sleeping in the Streets and San truck.
Two guys supervising on the sidewalk.
One guy with a paint brush actually painting the fireplug.

The City That Works! We can laugh about this, but the rampant inefficiency that we all knew existed back then produced a wonderful livable city that we would all love to live in again. But we all know that that city is dead, gone, and not coming back.

Hello, Indiana!
2 years ago
Reply to  Ataraxis

Pigs Paid First.

Greg
2 years ago

Which politician’s brother-in-law owns the company doing the replacements? It’s the Chicago way!

Scott
2 years ago

I had mine done in Elgin about 5 years ago. It was $6200.

Hello, Indiana!
2 years ago

Any chance that the Water Reclamation Department is in on the grift? You know, that black hole for taxpayers money that employs hundreds but has to contract an outside company to pave lots?

Freddy
2 years ago

It took approx 20 years to build the Great Pyramid of Giza as a point of reference.
https://www.history.com/news/how-long-did-it-take-to-build-the-great-pyramid

Eugene from a payphone
2 years ago

All of the organizations cited above do not understand the proper use of “clout”. Also, any property owner doing his own replacement will become very familiar with city inspectors and overnight vandalism.

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Mark Glennon on AM560’s Morning Answer: Chicago pension buyout plan mostly shifts debt rather than eliminating it, property tax surge doubles inflation over three decades

Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.

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