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TO: Mayor John Laesch and City Council
FROM: Tim Weidner, P.E., Engineering Coordinator
DATE: November 13, 2025
SUBJECT:
A Resolution authorizing the execution of an Intergovernmental Agreement with the Village of Montgomery and the appropriation of $200,000.00 of MFT funds for the Douglas Avenue Resurfacing project.
PURPOSE:
To execute the Intergovernmental Agreement with the Village of Montgomery thereby reserving sufficient funds to cover the City's share of the project cost by resolution and to Appropriate Motor Fuel Tax (MFT) funds by Illinois Department of Transportation (IDOT) Resolution.
BACKGROUND:
The City applied jointly with the Village of Montgomery for federal funding in the March 2022 Kane-Kendall Council of Mayors (KKCOM) Call for Projects and secured funding for this project in federal fiscal year 2027. The City is looking to advance this project to a letting in federal fiscal year 2026.
The project will resurface Douglas Avenue from Ashland Ave to US 30. The portion from Ashland Ave to Melrose Ave is under City of Aurora jurisdiction and the portion from Melrose Ave to US 30 is under Village of Montgomery jurisdiction. In total, 20.85% of the pavement area is within the City and 79.15% is within the Village. The funding ratio for this project is 75/25 (75% federal / 25% local) for Construction and Construction Engineering, up to a maximum amount of $633,444 of federal funding. Additional federal funding is being sought to increase funding to 75/25 for the entire project cost. Resurfacing projects like this help reduce the burden of funding the City’s yearly resurfacing program with local and MFT funding sources.
The Village of Montgomery is leading the design engineering effort, with the intention that the City will reimburse for their proportional part of the project. The Village has selected Engineering Enterprises Inc. (EEI) through a Qualification Based Selection (QBS) to perform the engineering services. The project is targeting a November 2026 IDOT letting.
DISCUSSION:
With the Village of Montgomery leading the engineering and construction work, the City needs to execute an Intergovernmental Agreement (IGA) to reimburse the Village for the City's share of the work (Exhibit 'A'). The City's share will be 20.85% of the total cost of each respective stage. A location map is included as Exhibit 'B'.
The City's approximate share is as described below:
Preliminary & Design Engineering - $19,178.04
Construction Engineering - $7,604.00
Construction - $170,000 (with potential to reduce to $70,000)
The preliminary and design engineering amount is based on actual proposal amounts, and the final costs will be based on actual invoices. The construction engineering amount is estimated and will likewise have final costs based on actual invoices. The final construction cost will be based on the amount of work that occurs within the City's jurisdiction. For all amounts, the Village will front-fund and request reimbursement from the City.
The City intends to use MFT funds for all phases of reimbursement. Depending on IDOT approval, preliminary and design engineering may need to be funded from non-MFT sources. If this is the case, there will be a budget transfer to move funds from one of the City's other resurfacing projects.
IDOT requires a Resolution to Appropriate the MFT Funds prior to their expenditure for approved projects. The Resolution for Improvement - BLR 09110 (Exhibit ‘C’) appropriating MFT Funds in the amount of $200,000.00 is attached. The resolution amount is higher than the anticipated City’s share in order to cover the possibility that no additional federal funding is awarded for this project.
Due to the nature of the federal funding on this project, IDOT requires that the City agree to pass a supplemental MFT resolution if necessary, to appropriate additional funds for completion of the project. City staff will review the low bids and concur with the Village of Montgomery and 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.
The 2026 and 2027 City Budgets are anticipated to provide for sufficient funds in Account 203-4060-431.79-99 (GB152, Douglas Avenue Resurfacing - US 30 to Ashland Ave).
IMPACT STATEMENT:
During construction, roadway traffic will be reduced to one lane each direction at various times during construction. If this item is not approved, the City will need to forgo federal funding to resurface this road and ultimately resurface it will local funding only.
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 an Intergovernmental Agreement with the Village of Montgomery and the appropriation of $200,000.00 of MFT funds for the Douglas Avenue Resurfacing project.
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 seeks to resurface Douglas Avenue from Ashland Ave to US 30 with the Village of Montgomery; and
WHEREAS, the Village of Montgomery is leading engineering and construction for the project; and
WHEREAS, the Douglas Avenue Resurfacing Project has been awarded Surface Transportation Program - Local (STU) federal funding in the amount not to exceed $633,444.00 for Construction and Construction Engineering for the entire corridor, which will necessitate the use of funding provided through the Illinois Department of Transportation (IDOT); and
WHEREAS, the City must execute the Intergovernmental Agreement with the Village of Montgomery to continue project development; and
WHEREAS, there is a need to appropriate MFT Funds (MFT Section # 25-00374-00-RS) funds for this project in the amount of $200,000.00, a copy of which resolution is attached for approval; and
WHEREAS, depending on the low bid prices and final construction costs there may be a need to appropriate additional MFT funds for this project; and
WHEREAS, City staff has the authority to coordinate with the Village of Montgomery and IDOT in the award and execution of the contract; and
WHEREAS, the 2026 and 2027 City Budgets are anticipated to provide for sufficient funds in Account 203-4060-431.79-99 (G1B52, Douglas Avenue Resurfacing - US 30 to Ashland Ave).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: by the City Council of the City of Aurora, Illinois, as follows: that the Intergovernmental Agreement with the Village of Montgomery, in substantially the same form as attached to this Resolution as Exhibit 'A' shall be and hereby is approved; and
BE IT RESOLVED, that two hundred thousand dollars ($200,000.00), or as much as may be needed to match the required funding to completed the proposed improvement, of available MFT Funds, Motor Fuel Tax Section Number 25-00374-00-RS 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 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 the Intergovernmental Agreement with the Village of Montgomery attached to this Resolution as Exhibit 'A' and the document entitled “Resolution for Improvement Under the Illinois Highway Code, Form (BLR 09110)” attached to this Resolution as Exhibit 'C'.