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TO: Mayor John Laesch and City Council
FROM: Tim Weidner, P.E., Engineering Coordinator
DATE: June 12, 2025
SUBJECT:
A Resolution authorizing the execution of a Joint Funding Agreement with the State of Illinois, the execution of a Phase 3 Construction Engineering Services Agreement with HR Green, Inc. in the not to exceed amount of $706,956.00, and the appropriation of $2,100,000.00 of REBUILD Illinois Bond Funds and/or MFT Funds for the Sullivan Rd Reconstruction Project.
PURPOSE:
To execute the Joint Funding Agreement for State-Let Construction Work there by reserving sufficient funds to cover the local agency share of the project cost by resolution, to approve the Phase 3 Construction Engineering Services Agreement with HR Green, Inc. and to Appropriate REBUILD Illinois Bond and/or MFT Funds by Illinois Department of Transportation (IDOT) Resolution for Motor Fuel Tax (MFT) Section No. 21-00344-00-WR.
BACKGROUND:
The City applied for federal funding in the March 2022 Kane-Kendall Council of Mayors (KKCOM) Call for Projects and secured funding for 9 different projects, with 5 additional projects placed in the contingency program. This project was initially placed on the Contingency List, but has since received STP funding. City staff has also applied for and secured STP-Shared Fund funding for this project.
The project will reconstruct Sullivan Rd from a 2-lane to a 3-lane section from Edgelawn Dr to Golden Oaks Pkwy, including modernizing the signal and adding turn lanes at Randall Rd. The funding ratio for this project is 80/20 (80% federal / 20% local) for Construction and Construction Engineering, up to a maximum amount of $6,160,000 of federal funding. More information including exhibits can be found at the project website: https://www.aurora.il.us/Government-and-Engagement/Current-City-Projects/Sullivan-Road-From-Edgelawn-Drive-To-Randall-Road.
Phase 1 design approval has been received. The Phase 2 plans are 99% complete and the Initial Final Plans, Specifications, and Estimates (PS&E) were submitted to IDOT on September 30, 2024. The project has been delayed due to right-of-way processing. The project is now targeting a November 2025 IDOT letting but will likely slip into 2026.
DISCUSSION:
Due to the complex nature of the project construction and documentation requirements by the Illinois Department of Transportation (IDOT) for federally funded projects, the City is required to hire a consultant for the Phase 3 Construction Engineering Services. The City published a Qualification Based Selection (QBS) for Phase 3 Engineering Services on June 14, 2024. Fourteen (14) firms submitted their qualifications. Staff reviewed the qualifications submitted and determined that HR Green, Inc. was the most qualified with the top 3 firm's scores attached as Exhibit 'D'. Exhibit ‘D’ also has a breakdown of the selection criteria and weighting and the score breakdowns in each category. HR Green's team has successfully completed Phase 3 Construction Engineering Services for many federally funded projects throughout the City. The attached Phase 3 Engineering Agreement (BLR 05530) from HR Green in the amount of $706,956.00 noted as Exhibit 'B' will provide full time construction and material inspection for this project.
This followed the Request for Qualifications process and is not subject to the local preference policy. The funding source, federal and REBUILD Illinois Bond Funds, are not subject to the local preference policy.
IDOT requires the City to execute the Joint Funding Agreement for State-Let Construction Work by setting aside the local matching funds for the project. IDOT will front fund the Construction cost and invoice the City of Aurora for its share of the construction cost. The Joint Funding Agreement (BLR 05310C) is attached for execution as Exhibit ‘A’. The estimated total cost of the Construction (C) on the form is $7,000,000. This amount is slightly higher than the Engineer's Final Construction cost to allow for some additional contingency with final IDOT plan review and unknowns before the bidding process. The City’s portion of construction costs would be approximately $1,400,000. The City will have to front fund the Construction Engineering (CE) cost and up to 80% of this cost will be reimbursed by IDOT, at a later date. The estimated total cost of CE is $700,000.00. The City's portion of the CE cost would be approximately $140,000.00. The approximate total cost of C&CE (City’s Share) would be $1,540,000.00.
Currently, both Exhibit 'A' and Exhibit 'B' are drafts that are under review by IDOT. IDOT has issued guidance that these forms must be locally executed and submitted by October 1, 2025 in order to stay on schedule for the November 2025 state letting. If the forms are amended by IDOT, the Mayor and City Clerk will execute the most current forms. IDOT review of these forms may change the specific values indicated in the memo and resolution.
The REBUILD Illinois Bond Fund is a grant program using proceeds from general obligation (transportation, series A) bonds authorized in the REBUILD Illinois capital program to provide Local Agencies with the funds for transportation improvement projects. The City has received 13,042,322.82 in total over a 3 year period. The funds can only be used on bridge and major highway projects that provide an average useful life of greater than or equal to 13 years.
IDOT requires a Resolution to Appropriate the REBUILD Illinois Bond Funds prior to their expenditure for approved projects. The Resolution for Improvement - BLR 09110 (Exhibit ‘C’) appropriating REBUILD Illinois Bond Funds in the amount of $2,100,000.00 is attached. The resolution amount is higher than the anticipated City’s share in order to cover front funding the Construction Engineering cost. REBUILD Illinois Bond Funds are a finite dollar amount that are not distributed monthly like Motor Fuel Tax (MFT). Depending on when the funds are actually spent, the City's share may need to be MFT. Therefore staff is requesting approval to spend either REBUILD Illinois Bond Funds or MFT with the resolution. At the moment it is anticipated that the entire $2,100,000 would be REBUILD Illinois Bond Funds.
Due to the nature of the federal funding on this project, IDOT requires that the City agree to pass a supplemental REBUILD Illinois Bond Fund / MFT resolution if necessary, to appropriate additional funds for completion of the project. City staff will review the low bids and concur with IDOT on the award of the project to the low bidder if the bids are within a reasonable approximate of the Engineer's Final Cost Estimate and bidding the project is in the City's best interest.
It is possible that the Mayor and Clerk need to execute additional forms on the project including a Local Public Agency Amendment (BLR 05311) or revised/supplemental BLR 05530. Generally, execution of the BLR 05311 would be to receive additional federal funds or to move federal funds between Construction and Construction Engineering. As mentioned in the resolution we are requesting that the Mayor and Clerk have the ability to execute these documents if they are required to carry the purposes of this resolution into execution, without any additional City Council action. If additional REBUILD Illinois Bond / MFT funds are needed for the project, then the Supplemental Resolution (BLR 09110) will be presented before the City Council.
The 2025 City Budget currently has sufficient funds in Account 202-4060-431.79-99 and Account 203-4060-431.79-99 (GB052, Sullivan Road - Edgelawn Dr to Golden Oaks).
IMPACT STATEMENT:
Sullivan Rd will be fully closed for several months during construction and a detour will be posted. Access will be maintained for all local businesses and residents throughout construction. Traffic will be intermittently reduced to one lane with flaggers for the remainder of construction.
RECOMMENDATIONS:
Please forward this to Finance Committee for approval.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing the execution of a Joint Funding Agreement with the State of Illinois, the execution of a Phase 3 Construction Engineering Services Agreement with HR Green, Inc. in the not to exceed amount of $706,956.00, and the appropriation of $2,100,000.00 of REBUILD Illinois Bond Funds and/or MFT Funds for the Sullivan Rd Reconstruction Project.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City seeks to reconstruct Sullivan Rd from Edgelawn Dr to Golden Oaks Pkwy. The project has a State Job Number: C-91-153-22, Federal Project Number: T0JM(154) and MFT Section Number: 21-00344-00-WR; and
WHEREAS, the Sullivan Road Reconstruction Project has been awarded Surface Transportation Program - Local (STU) and Surface Transportation Program - Shared Fund (STP-SF) federal funding in the amount not to exceed $6,160,000.00 for Construction and Construction Engineering, which will necessitate the use of funding provided through the Illinois Department of Transportation (IDOT); and
WHEREAS, the use of federal and State funds requires the City to execute the Joint Funding Agreement for State-Let Construction Work with IDOT by way of appropriating the funds in the amount of $1,400,000.00 (local match for Construction) of which the agreement is attached; and
WHEREAS, the use of federal funds requires the City to execute the Phase 3 Construction Engineering Agreement with HR Green, Inc., by way of appropriating funds in the not to exceed amount of $706,956.00 (front funding Construction Engineering) of which the agreement is attached; and
WHEREAS, there is a need to appropriate REBUILD Illinois Bond Funds (MFT Section # 21-00344-00-WR) funds for this project in the amount of $2,100,000.00, a copy of which resolution is attached for approval; and
WHEREAS, a portion of the $2,100,000.00 appropriation may need to be authorized as MFT Funds instead of REBUILD Illinois Bond Funds; and
WHEREAS, depending on the low bid prices and final construction costs there may be a need to appropriate additional REBUILD Illinois Bond funds (or MFT funds) for this project; and
WHEREAS, City staff has the authority to coordinate with IDOT in the award and execution of the contract; and
WHEREAS, the 2025 City Budget currently has sufficient funds in Account 202-4060-431.79-99 and Account 203-4060-431.79-99 (GB052, Sullivan Road - Edgelawn Dr to Golden Oaks).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Joint Funding Agreement for State-Let Construction Work with the State of Illinois in substantially the same form as attached to this Resolution as Exhibit 'A' shall be and hereby is approved; and further
BE IT RESOLVED, that Phase 3 Construction Engineering Agreement with HR Green, Inc. in substantially the same form as attached to this Resolution as Exhibit 'B' in the amount of seven hundred six thousand nine hundred fifty-six dollars ($706,956.00), or a higher amount if determined by IDOT during their review, shall be and hereby is approved; and further
BE IT RESOLVED, that two million one hundred ten thousand dollars ($2,100,000.00), or as much as may be needed to match the required funding to completed the proposed improvement, of available REBUILD Illinois Bond Funds and/or MFT Funds, Motor Fuel Tax Section Number 21-00344-00-WR shall be and hereby is appropriated for the purposes set forth in this resolution; and further
BE IT RESOLVED, that the City agrees to pass a supplemental REBUILD Illinois Bond (or MFT) resolution if necessary, to appropriate additional funds for completion of the project; and further
BE IT RESOLVED, that the Mayor and the Clerk respectively, shall be and hereby are directed to execute all the aforementioned documents on behalf of the City and any other documents required to carry the purposes of this resolution into execution, including, but not limited to additional Joint Funding Agreements/Amendments, revised Engineering Agreements, and the document entitled “Resolution for Improvement Under the Illinois Highway Code, Form (BLR 09110)” attached to this Resolution as Exhibit 'C'