Aurora Council approves $3 million for consolidated organization to help Aurora businesses

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By Jason Crane

The Aurora City Council approved a Resolution at the Tuesday, Oct. 22 City Council meeting, establishing a transformation fund for the Aurora business community and authorizing the deposit of $3 million with Invest Aurora for its funding.

The motion was approved 9-3 to reduce the originally proposed $5 million to $3 million with the possibility to provide another $2 million in the future, based on results.

City government of Aurora documents show four entities voted to consolidate into one economic development entity: Invest Aurora, Aurora Regional Chamber of Commerce, Aurora Downtown, and the Quad County African American Chamber of Commerce.

These organizations have historically concentrated on economic development efforts and the City has provided financial support for various initiatives. There has been some overlap in the efforts by these entities. The consolidation is designed to allow for more efficient and effective use of funding.

The City government wishes to provide funding for the efforts of the consolidated organization, including a transformation fund to allow for various enhancements to the business climate in Aurora.

In June 2024, the City approved a development agreement with C1 Chicago, LLC which required a reimbursement of $16,000,000 for City investment in infrastructure improvements in the area proximate to I-88 and Eola Road that occurred in the early 2000’s. The City received the funds as specified in the development agreement in mid-July 2024.

City officials plan to utilize the funds to enhance economic development efforts throughout the City. To that end, the funds are to be utilized in support of the following initiatives:

$9 million for an economic development initiative fund for the Mayor’s Office of Economic Development. This funding is intended to be utilized for investments in economic development projects that will ultimately be paid back to the fund. To date funds have been utilized for property acquisition along the north side of Bilter Road as approved in July of 2024.

$1 million to be added to the Historic Preservation Program, $1 million to be added to the Façade Improvement Program, and $3 million to fund a transformation fund to be applied to business and economic development throughout the City. The transformation fund will be managed by Invest Aurora initially and be part of the efforts of the new consolidated economic development entity in the City as described below.

The legal structure for the consolidation of the entities will be in place in the fourth quarter of 2024, with the public launch of the new entity scheduled for the first quarter of 2025. The pertinent documents and required filings to create the new entity are being developed. It is intended that the president/CEO of Invest Aurora, Kelly O’Brien, will be installed as the president/CEO of the new organization. She will coordinate and have responsibility for its day-to-day operations.

The overall programs initiated and undertaken would be finalized by the new organization after development of the strategic plan. The new organization will be governed by an approximately 50-member Board of directors consisting of the boards of the individual consolidating organizations.

Additionally, there will be a 13-member Executive Committee who will further guide policy and strategic direction. Five of the Executive Committee members would be appointed by the mayor with the advice and consent of the City Council and the remaining 8 members would be representatives of the consolidating organizations.

Invest Aurora, The Aurora Regional Chamber of Commerce, Aurora Downtown and the Quad County African American Chamber of Commerce, with 2 members coming from each of the 4 consolidating organizations.

It is anticipated that the Transformation Fund would be self-sustaining with revenue streams and private sector funding.

The City would require semi-annual presentations of programs, initiatives, and results.

Discussion:

Initial funding for the Transformation Fund is available from the $16 million proceeds of the development agreement with Cyrus 1, but would require a budget amendment. The City would require semi-annual presentations of programs, initiatives, and results as a requirement of the funding provided.

The meeting with presentations and input from several individuals for various reasons can be viewed on the city government of Aurora’s YouTube page after the 1-minute mark by clicking here.

The City Council approved the following agenda items:

  • An Ordinance was approved vacating a Stormwater Control Easement and City Easement on the Property south of Wolf’s Crossing and east Eola Road, in Will County, Aurora.

City government of Aurora documents show the Petitioner, Pulte Home Company, LLC, is requesting the Vacation of a Stormwater Control Easement and City Easement for the property at South of Wolf’s Crossing and East of Eola Road.

This Property is part of the Lincoln Prairie Planned Development. There have been several easements recorded on the properties, some of which have been within the recently platted subdivisions and some of which have been offsite dedications, as developments has occurred.

The Petitioner is requesting the vacation of certain stormwater control easements and city easements that either are not required anymore or are being modified and rededicated with the Plat of Subdivision for Lincoln Prairie by Del Webb, Phase 3.

Staff members have reviewed the Plat of Vacation petition and have sent comments back to the petitioner on those submittals. The petitioner has made the requested revisions to these documents, and they now meet the applicable codes and ordinances. These vacations will have no adverse effect upon the provision for utilities for which said easement was granted.

  • A Resolution was approved to authorize the acceptance of a grant from Old National Bank, in the amount of $10,000 to assist with outreach and programming expenses for the Aurora Financial Empowerment Center.

City government of Aurora documents show the purpose is to obtain the City Council’s approval to accept a grant from Old National Bank in the amount of $10,000 to assist with outreach and programming for the Aurora Financial Empowerment Center (FEC).

In 2019, the City of Aurora applied for grant funds to launch the Aurora Financial Empowerment Center, a part of a growing network of FEC’s embedded in local governments across the country, committed to providing free, one-to-one financial counseling, delivered by professionally trained counselors, to low-and-moderate income residents. The Aurora FEC has been successful in its first three years. Therefore, the City of Aurora has maintained a contract with The Neighbor Project, with an annual extension through 2024, to continue to provide financial counseling to the community to improve the quality of life of Aurora area residents.

The contractual services and other direct costs for The Financial Empowerment Center are funded through grants, sponsors and fundraising. The contractual service amount for 2024, paid to The Neighbor Project, providing Aurora FEC services, is not to exceed $315,400. Old National Bank expresses its willingness to financially support the vision and efforts of the Aurora Financial Empowerment Center by contributing to its operational costs.

The successes and sustainability of the FEC have led to the City of Aurora approving a contract with The Neighbor Project to continue providing financial counseling services and programming. Aurora FEC counselors have steadily increased their caseloads and outcomes, providing counseling services to low- and moderate-income residents, and referring clients to partner agency services.

There is a growing need for financial counseling services, especially for residents in that need to secure permanent housing, pay for increased household costs, secure their children’s college savings, and to improve their financial stability. Aurora FEC has expanded its services to include an additional counselor and a part-time administrative assistant through The Neighbor Project, while also providing additional financial programming to engage families in college savings.

Since implementation, the Aurora FEC has served 2,085 clients, had 2,417 outcomes, helped clients increase savings by more than $1,156,306 and reduce debt by over $3,459.231

Expenses are budgeted for these services in account 101-1304-419.32-20 in the amount of $230,400 for 2024. In addition, $35,000 in Community Development Block Grant funds has been allocated in 2024 and the fiscal agent is holding approximately $50,000 in the event there are additional 2024 expenses.

The proposed resolution presents an opportunity to continue funding the successful operation of the Financial Empowerment Center. The programming costs will include the contractual amount between the City of Aurora and The Neighbor Project.

  • A Resolution was approved to authorize the execution of a Phase 1 Preliminary Engineering Supplement with WBK Engineering, LLC in the not to exceed amount of $56,075.00 and the appropriation of $60,000 of MFT Funds for the New York Street Corridor (Commons Dr to Entrance No. 6) Project.

City government of Aurora documents show this is a Resolution to approve the above referenced Engineering Services Supplement and to appropriate MFT funds by Illinois Department of Transportation (IDOT) Resolution.

The project applied for federal funding in the June 2022 Highway Safety Improvement Project (HSIP) call for project. The project was awarded federal funding to cover up to 90% of Preliminary Engineering, Design Engineering, Construction, and Construction Engineering costs for the originally scoped project. Since the time of that application, the project has added additional scope, and additional federal funding has been requested and awarded. A total of $2,373,200.00 in federal HSIP funds has been secured for all phases of the project.

The project involves safety improvements along New York Street between Commons Drive and Fox Valley Entrance No. 6. The safety improvements include includes replacement of all aging signal equipment, adding dual left turn lanes at intersections along New York St, widening of curb radii to meet design vehicle requirement, and extending bike and pedestrian facilities in accordance with ADA standards. The intersections will be converted from protected-permissive left turn phasing to protected only phasing. Additional general information and exhibits can be found on the project website (https://www.aurora-il.org/2567/East-New-York-Street-Commons-Dr-to-Entra).

The City is continuing work with their selected engineering consultant, WBK Engineering, LLC, on a project development report (PDR) under a previous City agreement. The PDR is substantially complete, and a draft will be submitted to IDOT shortly. The project is likely targeting a late 2025 IDOT letting, pending design engineering and land acquisition.

The original agreement with WBK Engineering, LLC was in the amount of $151,796.00 (R23-046).

During preliminary engineering, WBK Engineering, LLC and their consultants completed several work items not identified in the original Phase 1 agreement and added some items to the scope. At this time it is required to process a Supplement to include the additional items as described below:

  • HSIP funding increase request
  • Public involvement (Public Information Meeting)
  • Plats, Legals, and Titles (Right-of-Way acquisition)
  • Design Variance form updates
  • PDR form updates

WBK Engineering, LLC has been proactive in addressing City issues. They helped prepare a revised HSIP application for additional scope items (bicycle and pedestrian accommodations, ADA work, and lighting) which was approved granting an additional $773,400 of federal funding for this project. They attended a Public Information Meeting required by FHWA and handled form updates as required by IDOT. The bulk of the cost for this supplement is for acquiring Plats, Legals, and Titles for 11 parcels, which is the first step required due to land acquisition for this project.

The original consultant selection followed the Request for Qualifications process and is not subject to the local preference policy. The funding source, MFT Funds, is not subject to the local preference policy.

IDOT requires a Resolution to appropriate the MFT Funds prior to their expenditure for approved projects. The amount covers the supplement and includes a small contingency.

Funding for this project is available in account 203-4060-431.79-99 (GB163, East New York Street – Commons to Route 59).

  • A Resolution was approved to seek City Council authorization to apply for the State of Illinois Community Development Block Grant-Coronavirus (CDBG-CV) Healthy Houses Program Grant in an amount not to exceed $2,000,000 to preserve multi-family, landlord owned, low to moderate income units, up to six units total, and encourage neighborhood revitalization with an emphasis on maintaining health and safety.

City government of Aurora documents show the Illinois Department of Commerce and Economic Opportunity (DCEO) has issued a notice of funding opportunity for the installation and/or replacement of entire Heating, Ventilation and Air Conditioning (HVAC) Systems in multi-family, low to moderate income rental housing units. Only units of local government in areas receiving direct entitlement CDBG funding from HUD are eligible to apply for the CDBG-CV Urban Shelter Program.

On March 27th, 2020, Congress passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to directly address the impacts of COVID-19. As part of the CARES Act, Congress appropriated $5 billion to the U.S. Department of Housing and Urban Development (HUD) for allocation to cities and states through the Community Development Block Grant (CDBG) program. The State of Illinois has been allocated $70,753,404 of these CARES Act CDBG funds (CDBG-CV funds). CDBG-CV funds must be utilized to prevent, prepare for, and respond to COVID-19.

The program targets housing projects which preserve multi-family, landlord owned, low to moderate income units, up to six units total, and encourage neighborhood revitalization with an emphasis on maintaining health and safety. The funds are being made available for installation and/or replacement of entire Heating, Ventilation and Air Conditioning (HVAC) Systems in multi-family, low to moderate income rentals. All codes and standards which address mechanical, structural, and energy efficiency should, at a minimum, incorporate applicable State plumbing and electrical and any local rehabilitation codes and standards.

The Healthy Houses grant program is a unique, one-time offering to assist municipalities throughout the State of Illinois in maintaining the integrity of the housing stock in their community. Communities can apply for a minimum of $250,000 up to $2,000,000 based on potential need assessments for the area. Under this program, the City is seeking the maximum amount to assist approximately 100-150 multi-unit properties. Grant funds will be utilized to assist eligible landlords/property owners with replacement of partial or total HVAC systems in low-to-moderate (LMI) income qualified rental units. Properties must have six or less units and be within the corporate limits of the municipality. Landlords are required to complete an application with occupant information to determine eligibility. At this time, only rental units are eligible for this program. However, should the State amend the program eligibility requirements to include single-family, owner-occupied units, authorization is also sought to adjust program eligibility requirements should this DCEO Program be amended.

This funding will benefit the City of Aurora as it will provide landlords/property owners of affordable housing units with the opportunity to improve the quality of life, safety and health for the City’s low to moderate income tenants through the installation of HVAC systems. This HVAC rehabilitation effort will improve the City residents’ housing air quality, increase energy efficiency, and reduce utility bills.

This resolution will allow the City to submit a grant application to the Illinois Department of Commerce and Economic Opportunity for the CDBG-CV Healthy Houses Program to preserve multi-family, landlord owned, low to moderate income housing, by funding HVAC upgrades.

The City will administer any awarded grant funds through the Community Development Division in the same manner as it administers the City’s CDBG entitlement funds.

Staff members recommend that the City Council approve a resolution authorizing an application to the Illinois Department of Commerce and Economic Opportunity for the CDBG-CV Healthy Houses Program to preserve multi-family, landlord owned, low to moderate income housing, by funding HVAC upgrades, encouraging neighborhood revitalization with an emphasis on maintaining health and safety in an amount not to exceed $2,000,000. Staff members authorization for the City’s mayor, treasurer, City clerk, or their designees to execute such documents and all other documents necessary for the carrying out of said application and to also provide such additional information as may be required to accomplish the obtaining of such grant.

  • A Resolution was approved authorizing the purchase and installation of equipment to upsize High Pressure Pump #1 for the Water Production Division in an amount not to exceed of $103,405.00.

City government of Aurora documents show the purpose is to obtain City Council authorization for Layne Christensen Company (Layne), 721 W. Illinois Avenue, Aurora, IL, to perform all necessary services as described in Layne’s proposal letter to upsize the pumping capacity of High Pressure Pump #1 at the City of Aurora Water Treatment Plant.

High Pressure Pump #1 is one of three pumps used to distribute finished water from the treatment plant to the high pressure zone of the city’s water distribution system. Trending of water demand indicates a need to proactively increase pumping capacity to the high pressure zone as future water demand increases. The proposed upsizing of this pump will provide an additional 500,000 gallons per day of pumping capacity to the high pressure zone.

The total estimated cost of all labor and material pricing to complete this project is $103,405.00. A breakdown of the estimated costs is presented in Layne’s proposal letter.

The city entered into a five year Professional Services Agreement (PSA) with Layne in 2020 under Resolution No. R20-083, which provides a 5% discount on all labor and field services and a 10% discount on specialized services performed by Layne. Layne will perform all work on a time and material basis and will only be compensated for the actual work performed per the terms and conditions of the PSA. In addition, Layne is the sole regional factory authorized source for repair and replacement of Flowserve-Byron Jackson pumping equipment utilized by the WPD.

Funds are available in the 2024 City Budget in Account No. 510-4058-511-38-01 from a previously approved Decision Package. In addition, recently a grant was secured in the amount of $101,790.00 to support this project (R24-275).

The local vendor preference policy does not apply per Section 2-409 as this is a noncompetitive situation.

  • A Resolution was approved authorizing an addendum to the amended and restated Potable Water Service Agreement with Calgon Carbon Corporation for the continued lease of Granular Activated Carbon in filter groups 1-4, 5-8, and 9-12 for the Water Production Division.

City government of Aurora documents show the purpose is to obtain City Council approval for an addendum to the subject agreement for pricing and installation of GAC for filters 1 – 4 in 2025, filters 5 – 8 in 2026, and filters 9 – 12 in 2027 at the City of Aurora Water Treatment Plant (WTP).

The Water Treatment Plant has 12 dual-media filters which contain sand and GAC which are used to remove solids prior to disinfection of the water. In addition, the GAC media serves to remove taste and odor compounds which are adsorbed on the GAC in the filter bed. GAC will continue to play a very important and necessary role in removal of PFAS compounds found in source water. Over time the GAC is expended (spent) and needs to be replaced/refreshed, typically between 36 – 42 months. This is done on a staggered basis for the three groups of filters listed above.

The Water Production Division (WPD) has standardized the use of specific GAC, Calgon F-300, as its primary filtration media due to its long-term (25+ years) successful and proven performance. F-300 can be considered a sole source product due to its attributes as a domestic, bituminous coal source and a specific manufacturing method referred to as reagglomeration which produces a high activity, durable, granular product capable of withstanding abrasion associated with repeated backwashing, hydraulic transport, and reactivation for reuse. Spent GAC is reactivated via a high-temperature heating process which volatilizes the adsorbed compounds thus returning the used GAC to additional productive service. Calgon’s turnkey service of supplying reactivated GAC is the Custom Municipal Reactivation (CMR) program. The addendum provides the pricing options for both CMR and virgin F-300 GAC, as well as an optional high-grade virgin product called Filtrasorb 830 Sentry. The WPD typically utilizes the lower cost CMR option, which is 59% the cost of virgin GAC and does not sacrifice substantial performance. However, all filters must occasionally be replenished with virgin GAC and then subsequent replacements utilize the CMR program.

Under the standard 36-month lease arrangement, equal monthly payments are made to compensate Calgon for supplying, removing, and reinstalling GAC when requested by the WPD. The city assumes no risk if the GAC must be replaced prematurely due to unforeseen circumstances, nor does the city need to make a lump sum purchase payment, as Calgon maintains ownership of the GAC media. Furthermore, this approach allows the city to save money for a period of time under the Extended Use provision. Beginning with the 37th month of use, lease payments are reduced 50% until which time the GAC is spent and is replaced with virgin or reactivated material.

The current leasing agreement applied to GAC during the period of 2021 – 2023, with no replacement occurring in 2024. In that agreement CMR material was $35.53/cubic foot and virgin material was $58.23/cubic foot. Updated pricing for the 2025 – 2027 period will be $40.10/cubic foot for CMR, a 12.86% increase and $68.48/cubic foot for virgin, a 17.6% increase. The Filtrasorb 830 option is $78.77/cubic foot. The 36-month total lease costs are the following based on planned usage of virgin or CMR material and the quantities required in each filter group:

Filters 1 – 4 Virgin F-300 = $662,886.40

Filters 5 and 6 Virgin F-300 = $331,443.20

Filters 7 and 8 CMR F-300 = $194,084.00

Filters 9 – 12 CMR F-300 = $332,028.00

Funding for leasing GAC is provided annually in the WPD Budget Account No. 510-4058-511-38-28.

The local vendor preference policy does not apply per Section 2-409 as this is a noncompetitive situation.

Negative impacts to the City of Aurora water quality are possible without the timely and planned replacement of spent GAC with either virgin or CMR GAC.

  • A Resolution was approved to authorize the acceptance of the low bid from Youngren’s Inc, from Aurora, for the replacement of roof top HVAC unit at the Phillips Park David & Karen Stover Visitor Center Facility for $62,986.00.

City government of Aurora documents show the purpose is for replacement of one roof top unit at the David & Karen Stover Visitor Center at Phillips Park.

A rooftop unit (RTU) is a class of heating, ventilating, and air conditioning (HVAC) equipment that contains all the components in one package and is typically mounted on the roof of a building.

The RTU at the Phillips Park Visitor Center facility, at 1000 Ray Moses Dr. was originally installed during the initial construction of the building. The unit has exceeded its recommended service life, requiring more frequent maintenance, and has become increasingly less reliable.

The City solicited Bid 24-087 “Phillips Park Visitor’s Center Rooftop Unit Replacement” and received five(5) bids. On August 14th, 2024, the bids were publicly opened and Youngren’s Inc, of Aurora, IL submitted the lowest bid of $62,986.00.

This project was subject to the local preference ordinance, however the lowest, responsible bidder was an Aurora vendor so it made no impact on the decision.

Monies to satisfy the cost of this project are budgeted in accounts 340-4440-451.38-05 and 101-4440-451.38-05.

Youngren’s Mechanical Inc. has no outstanding debt with the City of Aurora.

  • An Ordinance was approved to set the compensation of the alderpersons for the terms commencing in and after May of 2025 in accordance with the Illinois Municipal Code and the Local Government Officer Compensation Act.

City government of Aurora documents show the purpose is to establish the compensation of the aldermen to be elected in and after May of 2025.

Since at least 1848, Illinois has constitutionally required that the compensation of public officers be established prior to the commencement of their term of office. Section 9(b) of Article VII of the present Illinois Constitution expressly provides that “[a]n increase or decrease in the salary of an elected officer of any unit of local government shall not take effect during the term for which that officer is elected. For this reason no local elected official may ever vote to increase (or decrease) his or her own compensation – only the compensation of the person elected by the public to hold the office at the start of the next term.

To ensure that the voters have the right to weigh in on changes to elected official compensation and to prohibit post-election lame duck adjustments, the Illinois General Assembly has further required that any changes to a local elected officer’s compensation be fixed at least 180 days prior to the commencement of a term in office. The Illinois Municipal Code vests the responsibility of establishing the compensation of municipal officers in each municipality’s corporate authorities, which in the case of the City, is the City Council.

The Illinois Municipal Code as well as the City’s Code of Ordinances provides that elected City officers begin their term no earlier than the first regular or special meeting of the City Council in May following the election. The first regular meeting of the City Council in May of 2025 is scheduled to occur on Tuesday, May 13, 2025. This requires the Council to approve adjustments to the salaries of officers elected in 2025 no later than Tuesday, November 12, 2024. If no adjustments are made by this time, the salary schedule adopted by the City Council in 2000 will remain in effect.

The 2020 schedule dictated the salaries of the aldermen will increase by 3% in 2025 and 2026 and 5% thereafter; with the per meeting stipend fixed at $90/meeting.

The proposed levels of compensation were developed and recommended by the Finance Committee. The Finance Committee opted to use an outside firm (Korn Ferry) to conduct a survey of comparable cities, which was completed in August of 2024. Prior to the study, staff members provided information in past practice and general information regarding local comparables. The Finance Committee discussed Korn Ferry’s findings at a regularly scheduled meeting on Thursday, August 15, 2024, a member of Korn Ferry was present virtually to answer questions.

The Finance Committee requested additional information from Korn Ferry, which was provided and discussed at the Thursday, August 29th meeting. The Committee held the item again until the Thursday, September 12th meeting, where recommendations were formulated and are outlined below.

The Finance Committee recommended increasing the salaries of the aldermen on a 10%-5%-5%-5% structure, effective with the inauguration of aldermen in 2026 as follows:

From June 1, 2027, through May 31, 2028, $28,146.80;

From June 1, 2028, through May 31, 2029, $29,554.14

From June 1, 2029, through May 31, 2030, $31,031.85; and

From June 1, 2030, and continuing thereafter, $32,583.44; and further

The $90 stipend effective June 1, 2023 the aldermen receive for attending official meetings of the City Council and its committees will remain the same.

Following the Finance Committee’s recommendation of the above salary schedule, the Committee of the Whole and the City Council deliberated further on the matter and eventually determined that it would set the compensation of alderpersons to take effect on June 1, 2027, and on June 1, 2028, and defer further action on subsequent years until 2026. It also determined that effective June 1, 2027, the salary for each alderperson would increase by approximately 27% to $32,500.00. Effective June 1, 2028, the salaries will increase by an additional 5% to $34,125.00 and remain as set until subsequent action by the City Council.

This ordinance establishes the compensation for the aldermen as provided by law.

The recommendation is that the Council deliberate on the proposed ordinance and takes whatever action it deems appropriate.

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