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TO: Mayor John Laesch and City Council
FROM: Roopa Anjanappa, Civil Engineer
DATE: June 12, 2025
SUBJECT:
A Resolution authorizing the execution of the Joint Funding Agreement for Federally Funded PE/ROW with the State of Illinois for ROW, authorizing the execution of the Standard Agreement Provisions Joint Improvement Projects on the State Highway System, and the appropriation of REBUILD Illinois Bond Funds and/or MFT Funds for Montgomery Road and Hill Avenue Intersection Improvement.
PURPOSE:
To execute the Local Public Agency Amendment to reserve sufficient funds to cover the upfront cost of the land acquisition by resolution and to Appropriate REBUILD Illinois Bond Funds and/or MFT Funds by IDOT resolution. Funds will also be appropriated for Construction & Construction Engineering.
BACKGROUND:
The project consists of intersection improvement including modernizing traffic signals, reconstructing, and widening the roadway to include additional channelization on Montgomery Road, an additional through lane in each direction on Hill Avenue, bike path, sidewalk, ADA ramps, detectable warning signs, striping and other pertinent work. The project limits are inclusive of the east leg of Montgomery Road that extends approximately 1,200 feet to connect to the improved 3-lane section of Montgomery Road for better traffic flow. Current proposed plans are included as Exhibit 'D'.
The original Local Agency Agreement for federal participation and Phase 2 Engineering agreement with HR Green, Inc. was approved on August 28, 2020 (R20-156) with a supplemental agreement approved on 1/23/2024 (R24-013). The supplement included plat of highways, appraisals, and negotiation services for land acquisition.
The project has received Congestion Mitigation and Air Quality federal (CMAQ) funds. The total project cost is estimated at $10,820,980.00. The project has been recently approved with additional CMAQ funds and the total CMAQ federal funds allocated to this project is up to $7,456,784.00 (Construction, Right of Way, Phase 2 and 3 engineering).
DISCUSSION:
For most federal projects that the City processes which involve land acquisition, the Right of Way costs are typically all locally funded. For this project, federal funds will be used to cover 80% of the land acquisition. IDOT requires the City to execute the Joint Funding Agreement for Federally Funded PE/ROW (BLR 05310PE) which has been reviewed by IDOT and is attached for execution as Exhibit ‘A’. The City will need to front fund the acquisition costs and ask IDOT for reimbursement. This form is just the upfront paperwork that needs to be approved before further land acquisition activities can begin. Appraisals and review appraisals will be completed later this year. Negotiations will take place after IDOT approves the appraisals. Council action regarding the actual real estate contracts and settlements will take place at a later date.
The Phase 2 costs to date have been REBUILD Illinois Bond funds. It was anticipated that the funds used for remaining phase of the project be REBUILD Illinois Bond Fund, but due to the timing of the acquisitions and construction letting, some (or even all) of the remaining funds may need to be MFT.
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 $3,687,500.00 is attached. The resolution amount not only covers the full land acquisition amount (which the City needs to front fund), but also the estimated full Construction Engineering amount (which the City needs to front fund), and the estimated City's local share of Construction. 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. It would be the City's intention to basically use as much REBUILD Illinois Bond Fund as possible on this project until the source of money runs out, and finish the remainder of the project with MFT.
The 2025 Fiscal Year budget provides funds through the following account:
GB121 Montgomery and Hill Intersection Improvements 202-4060-431-79-99.
IMPACT STATEMENT:
No impact.
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 the Joint Funding Agreement for Federally Funded PE/ROW with the State of Illinois for ROW, authorizing the execution of the Standard Agreement Provisions Joint Improvement Projects on the State Highway System, and the appropriation of REBUILD Illinois Bond Funds and/or MFT Funds for Montgomery Road and Hill Avenue Intersection Improvement.
body
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 intends to improve the intersection of Montgomery Road and Hill Avenue to enhance the roadway capacity & operational efficiency and improve safety for all roadway users including pedestrians and bicyclists. The proposed improvements shall include modernizing traffic signals, widening and reconstructing the roadway to include exclusive right-turn lanes on Montgomery Road, addition of one through lane in each direction on Hill Avenue, extending the left-turn bays for additional storage, constructing bike path, sidewalk, ADA ramps, detectable warning signs, enhanced crosswalks, adding left turn lane on Montgomery Road at N Farnsworth Avenue while extending the improvements approximately 1,200 ft. east to connect to the improved 3-lane section of Montgomery Road and other pertinent work as needed. The project has a State Job No: R-91-024-20 & Project No: 27VQ(076) (for land acquisition), State Job. No. C-91-187-20 & Project No.: 1DJB(602) (for construction); and MFT Section No: 19-00329-00-CH; and
WHEREAS, the project has received Congestion Mitigation and Air Quality federal (CMAQ) funds. The total project cost is estimated at approximately $10 million and the total CMAQ federal funds allocated to this project is up to $7,474,682; and
WHEREAS, right-of-way (ROW) acquisition is necessary to accommodate the proposed improvements. The total ROW cost is estimated at $892,500.00 with federal participation at $714,000.00, and local share of $178,500.00; and
WHEREAS, the use of federal funds requires the City to execute the Joint Funding Agreement for Federally Funded PE/ROW (BLR 05310PE) for federal participation with State of Illinois (IDOT) by way of appropriating the upfront cost for Right-Of-Way Acquisition in the amount of $892,500.00 of which the agreement is attached as Exhibit A; and
WHEREAS, the State (IDOT) requires City to enter into a Standard Agreement Provisions Joint Improvement Projects on the State Highway System (LA 4192) for right-of-way acquisition in accordance to the requirements stated in the form, of which the agreement is attached as Exhibit B; and
WHEREAS, at this time the City will appropriate REBUILD Illinois Bond Funds (MFT # 19-00329-00-CH) funds for Construction and Construction Engineering at this time ahead of schedule and Construction agreement preparation with to satisfy the IDOT deadline criteria for potential use of the funds; and
WHEREAS, there is a need to appropriate REBUILD Illinois Bond Funds (MFT # 19-00329-00-CH) funds for this project in the amount of $3,687,500.00 a copy of which resolution is attached for approval as Exhibit C; and
WHEREAS, a portion of the $3,687,500.00 appropriation may need to be authorized as MFT Funds instead of REBUILD Illinois Bond Funds; and
WHEREAS, depending on the cost of the appraisals there may be a need to appropriate additional REBUILD Illinois Bond funds or MFT funds for this project; and
WHEREAS, the 2025 Fiscal Year budget provides funds through the following account:
GB121 Montgomery and Hill Intersection Improvements 202-4060-431-79-99 $892,500.00
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Joint Funding Agreement for Federally Funded PE/ROW for Federal Participation 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 the City can execute the Standard Agreement Provisions Joint Improvement Projects on the State Highway System attached to this Resolution as Exhibit "B"; and further
BE IT RESOLVED, that three million six hundred eighty seven thousand and five hundred dollars ($3,687,500.00) 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 19-00329-00-CH 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 Fund 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, Standard Agreement Provisions/Amendments and the document entitled "Resolution for Improvement Under the Illinois Highway Code, Form (BLR 09110)" attached to this Resolution as Exhibit "C".