IRON MOUNTAIN — A Wisconsin contractor has been selected to perform a water service line project starting this fall in Iron Mountain — possibly the final piece in meeting a state requirement to replace all lines that contain lead.

The city council Wednesday accepted an engineer’s recommendation to name Five Star Energy Services of Waukesha, Wis., as the contractor at the low-bid price of $4,081,286.50.

The second-lowest bid of four opened Monday came from Bacco Construction of Iron Mountain at $4,465,965.80. More than 400 service lines will be replaced.

Five Star is working on infrastructure projects in Escanaba with satisfactory reports, the council was told by Gary Lessard of Coleman Engineering Co.

The project will be funded through a Michigan Drinking Water State Revolving Fund grant and loan offer of $5 million — 51% of the package a 2% loan and 49% a grant given as principal forgiveness.

Five Star’s price is very close to Coleman’s construction estimate, which Lessard said has a buffer for contingencies. Other bids came from Oberstar Inc. of Marquette at $5,797,869, and Florida-based Murphy Pipeline Contractors at $6,472,828.

City Manager Jordan Stanchina said costs for copper and restoration created the greatest separation in the bids.

Five Star’s project — scheduled for completion in 2028 — will be the third multi-million dollar effort to replace service lines. A project begun in the fall of 2024 by Ultra Construction Services of Marquette is expected to replace at least 375 lines. It’s funded by a DWSRF grant of $2.24 million and a $2.33 million loan at 2% interest.

In the fall of 2025, Bacco started work on an $18.4 million sewer and water project. The water portion is funded by a 40-year DWSRF loan of $10.64 million at 2% interest, plus a $2.666 million grant. The city anticipates funding the sewer portion through a $7.63 million loan from the U.S. Department of Agriculture.

The Bacco project includes 426 water service replacements; 11,900 feet of gravity sanitary sewer and 13,900 feet of water main; and associated road restoration totaling about 2.5 miles.

As of Wednesday, about 350 service lines have been replaced across the city, Lessard reported.

Five-Star’s work is intended as a “catch-all” for the remaining lead services, he said.

Last year, MEC Underground Solutions of Fairgrove, Michigan, completed hydro excavations at curb stops to determine whether lead was present in about 1,000 service lines. MEC’s work totaling $551,000 was entirely funded by a grant awarded through the Michigan Department of Environment, Great Lakes, and Energy, the agency that also administers the DWSRF monies.

Initially, the city had estimated up to 1,800 service lines would need replacement, but that number will be less, Stanchina said. In most cases, the service lines replaced are galvanized pipes connected to water mains through a “gooseneck” that contains lead.

To help meet the improvement costs, the city council on Monday approved recommended increases in water and sewer rates.

Effective July 1, utility bill consumption charges will rise by 2.5% for water and 6.75% for sewer services. Fixed charges will increase only for sewer services, which will see an additional $8.77 per month.

According to the city’s estimate, for usage of 1,000 cubic feet, or 7,480 gallons, the overall increase will amount to $22.42 on a bi-monthly bill, or about $135 annually.

Even with the increase, Stanchina said Iron Mountain may still rank toward “the very bottom part” in the Upper Peninsula for rates.

The increase in the fixed sewer charge was the amount recommended by the Michigan Rural Water Association, which conducted a free rate study.

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Jim Anderson can be reached at 906-774-2772, ext. 85226, or janderson@ironmountaindailynews.com.