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G-928 - 06/08/2010 - IDOT - Ordinances Supporting DocumentsITEMS 10.C.1, 2, 3 and 10.1) 1'3ns. 10'r t t P t 1 AGENDA ITEM Regular Board of Trustees Meeting of June 8, 2010 SUBJECT: West 22 "d Street Cost Sharing Agreement FROM: David Niemeyer, Village Manager BUDGET SOURCE /BUDGET IMPACT: $1 million is included for the water portion of this project and $15,180 is included in the budget for the sidewalk costs from the Infrastructure Fund. No money is included in the budget for traffic signal improvements. We are estimating our share to be $798,600 from the Infrastructure Fund (not including new bid numbers from IDOT which will reduce this amount, or additional contributions from Oakbrook Terrace, private property owners, or transferring grant money). RECOMMENDED MOTION: I move to direct staff to approve funding Resolution R -1076, Ordinance G -928, prohibiting encroachments within the right -of -way along 22 "d Street and Resolution R -1077 authorizing an Agreement with IDOT to share the cost of improvements on West 22 "d Street. Background/History: About a month ago, the Board reviewed the first draft of a cost sharing agreement with IDOT for West 22 "d improvements. The Village received a revised draft with the same numbers, but some corrections were made on how the work is labeled. This does not include the lower numbers that IDOT recently received through better than expected bids. However, IDOT has committed to get these numbers shortly, so we can expect these numbers to be reduced further. IDOT is now asking the Village to approve this Agreement on June 8th or the widening project will be postponed until 2011. Staff is continuing to work on finalizing cost sharing agreements in relation to the traffic signals with private property owners and the City of Oakbrook Terrace, but will not have these Agreements finalized by June 8th. Below is a status on each signal. Despite not having these cost sharing agreements finalized, our lobbyist and 1 strongly recommend that we approve the IDOT cost sharing agreement on Tuesday. The completion of the widening project will strong] benefit the businesses along the corridor. There is no guarantee with the State's budget woes that this project, which includes a badly needed signal for Costco, would be done in 2011, especially with an election occurring in November. The Board remembers how difficult it was to get the Costco signal approved and the importance of the signal to Costco and its future in Oak Brook. Additionally, the Village is committed to paying for all of the Costco related signal costs and told Oakbrook Terrace that we would agree to keep the Parkview light, if they supported the Costco light. Finally, in the 1990s the Village agreed to the cost of replacing the signals at Macy's and the Shops of Oak Brook. At this point, we expect exposure to the traffic signal related costs to be a maximum of $798,600. (This does not include reduced numbers from lower bids.) It does include verbal commitments we have received from other property owners which we are working on and plan to bring back in separate agreements to the Board at a later date. It should be noted that none of the traffic signal costs are in the infrastructure fund; however, some options for further reducing our traffic signal costs are discussed below. Please note that the water main replacement project and the sidewalk project are both included in the 2010 Budget and so there is no further discussion of these projects below. As a reminder, IDOT is giving us three years to pay all of these costs as is follows: • $1 million by October 1, 2010 • $1 million by October 1, 2011 • Remainder by October 1, 2012 Here is the status of the negotiations on the various signals: Costco Traffic Signal: IDOT has assessed the following costs to the Costco project: • Costs of installing new signal: $306,350 (signal plus engineering). Costco has agreed to pick up these costs. • Costs of Costco driveway widening and left turn lane into Costco: $58,575 (improvements plus engineering). Costco has agreed to pick up these costs. • Cost of additional lane and related signal improvements at IL Route 83:$354,200. Includes additional lane costs: $242,000 (improvement plus engineering) and signal costs: $112,200 (improvement plus engineering). Costco is asking the Village to pick up these costs arguing there is a Village -wide benefit to this improvement. However, IDOT recently gave us information arguing that the work being done at Route 83 is directly related to the Costco signal improvement. Costco in fact proposed the additional right turn lane to allow traffic to flow more smoothly with the addition of the Costco lane. IDOT has also agreed to pick up the entire cost of the additional 4`h lane and is simply asking the Village or Costco to pick up the right hand turn lane and related signal improvement costs. They stated in an email this week the entire Costco signal project will be eliminated from the widening project if these costs are not paid for by the Village or Costco. The Board should discuss whether we want to further negotiate this $354,200 cost with Costco. Shops of Oak Brook Signal: IDOT has assessed the following costs to the Shops of Oak Brook project: • Costs of installing new signal: $310,500 (signal plus engineering). At this point, the Shops have agreed to commit $170,000 to this project. We are also seeking $80,000 from Oakbrook Terrace at this point. This assessment is based on the amount of sales tax the Shops of Oak Brook generates compared to the shopping center in Oakbrook Terrace. Oakbrook Terrace will not commit to an amount until their developer puts an offer on the table. The Mayor of Oakbrook Terrace has had numerous discussions with the developer about putting forth a proposal. Also, Oakbrook Terrace has been reluctant to finalize an offer since we don't know the final numbers at this point and expect the $310,500 number to go down. We are hoping at the end of the day Oakbrook Terrace and their shopping center developer are good neighbors and recognize they are also benefiting from this signal and contribute towards this project. Macys- Parkview: IDOT has assessed the following costs to the Macy's/Parkview signal: • Costs of installing new signal: $358,800 (signal plus engineering). At this point, Macy's has committed to $100,050 for this project. The attached letter explains their position. They believe property owners in Oakbrook Terrace are benefiting from the signal and should also contribute to the cost. Emergency Preemption Equipment: IDOT is seeking $45,600 for emergency vehicle preemption equipment. The revised spreadsheet actually breaks out the cost for each signal. There may be an opportunity for some cost sharing with the private property owners. As we just received these numbers yesterday, we have not had time to explore this possible cost sharing option. Other opportunities to reduce signal costs: We are exploring other options to reduce signal costs. One option we are looking at is to shift two grants we received from Senator Cronin for other projects to this project. We have already asked Cronin's office to shift an $187,000 grant received last year from the Sports Core to assist us with paying some of the costs of the traffic signals. Also, we could look at asking Cronin if a recent grant of $250,000 for the 35`h Street road improvements could be used for the signals. However, if we can get more contributions from the private businesses or Oakbrook Terrace, this may be unnecessary. I would appreciate feedback on this idea. Also, I had a discussion with the manager of the Shops of Oak Brook about possibly increasing their $170,000 offer to over $200,000 and then rebating this increase to them through sales tax rebates in the next few years. This would not reduce our overall cost, but would allow us to spread our costs over a few years. We could approach Macys or Costco with a similar proposal. I would appreciate feedback on this idea. I have attached our most recent infrastructure budget. Mike Hullihan has included the worst case West 22 "d Street costs on the attached spreadsheet and has deleted any over programming of annual pavement maintenance. Recommendation: Staff recommends that the Village Board direct staff to approve funding resolution R -1076, ordinance G -928, prohibiting encroachments within the right -of -way along 22 "d Street and resolution R -1077 authorizing an Agreement with IDOT to share the cost of improvements on west 22 "d Street.