IRON MOUNTAIN — About 375 lead service lines will be replaced at Iron Mountain homes over the next two years under a contract awarded Monday by the city council.

Ultra Construction Services of Marquette was the low bidder on the $4.57 million water project, but its price will be reduced by $520,000 to match available funding. Project supervisor Coleman Engineering Co. of Iron Mountain had estimated $3.97 million for construction and contingencies, while USC’s bid was $4.23 million.

To meet the budget, the scope of the work will be reduced by about 54 lines from the originally planned 430. The contract calls for substantial completion by Oct. 2, 2026.

Funding will come through the Drinking Water State Revolving Fund administered by the Michigan Department of Environment, Great Lakes and Energy. The aid includes a loan of $2.33 million at 2% interest for 20 to 40 years, plus a $2.24 million grant.

The number of lines to be replaced is a rough estimate because many variables are involved, including whether lines thought be galvanized are actually copper, City Manager Jordan Stanchina said.

More than a month ago, he said, the city sent letters to 800 homeowners seeking easements for the project — mostly on the east and north sides. Some replacements will be more costly than others, depending on factors such as the distance from the street.

Under changes to the Michigan Safe Drinking Water Act approved in 2018, the city is required to replace all galvanized water services that are considered lead lines within the next 18 years. It was hoped this project could address about a quarter of the lines needing replacement.

Construction bids were opened June 17 with competing offers coming from Bacco Construction Co. of Iron Mountain at $5.16 million and Five Star Energy Services of Waukesha, Wis., at $4.62 million.

Coleman was selected in November to design, bid and inspect the project at a cost of up to $548,500. Since the work generally requires access inside homes, Coleman will be meeting with homeowners on an ongoing basis to schedule replacements. It’s not yet known if construction will begin this year.

In addition to this work, the city has reapplied to EGLE for a $14 million water project and $16 million sewer project. Substantial principal forgiveness would be needed to move forward and a successful application would require a full review of current utility rates, according to Stanchina.