Aurora government helps Aurora Civic Center Authority (ACCA)

By Jason Crane

The Aurora City Council approved by a vote of 9-2, a Resolution directing officials to proceed with the implementation of Phase I of a 3-phase financial sustainability plan for the Aurora Civic Center Authority (ACCA) in an amount not to exceed $13.8 million.

Aldermen Ted Mesiacos and John Laesch voted against the agenda item at the Tuesday, Sept. 10 City Council meeting.

•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 5-minute mark by clicking here.

City government of Aurora documents show since the COVID shutdown and despite its best efforts, ACCA has experienced continual financial challenges in its operations. Theater operations were closed for an extended period. Once the theater company was able to re-establish operations, attendance for performances lagged as people re-adjusted to being in public again. At the same time, the cost structure of the theater industry as well as in the general supply chain increased significantly and inflation was elevated for an extended period.

In response to these challenges, ACCA received significant financial assistance from various sources. The city of Aurora contributed a total of $11.5 million from various Federal grants and assistance sources, primarily ARPA funds.

While attendance is finally returning to pre-pandemic levels, the significant increase in the expense structure of ACCA has remained problematic and will likely be permanent. In addition, the pandemic experience has introduced more competition into the entertainment industry creating challenges to increasing ticket prices for performances.

Recognizing the challenges that would occur, the Administration and Council tasked City and ACCA staff members to develop and present for approval, a long-term plan for financial stability of the organization. The plan has been developed and is presented herein. The plan achieves financial sustainability for ACCA in approximately 5 years and will take approximately 2-3 years to implement.

At this time, ACCA’s operating losses total approximately $6 million annually. These losses are projected to continue and gradually worsen as inflation continues over the coming years. Without some immediate action, ACCA’s current level of activity and programming will not be viable. It is not a sustainable model in its current state.

The proposed plan has 3 phases:

City of Aurora purchase from ACCA the parking garage at 2 W. New York Street (the valet garage) and reimbursement of expenses related to rehabilitation of the Riverwalk Promenade and development of the Stolp Island Theater. This acquisition would occur within 60 days from Council approval and would be financed with issuance of a bond in the short term. The total cost of this phase is estimated to be approximately $13.8 million.

Issuance of bonds for the construction of a new venue, the City of Lights Center (CLC) and reimbursement of the costs related thereto. The CLC represents construction of a 4,000-seat performance center for holding various concerts and events owned by the City and operated by ACCA. At this time, the City and ACCA are engaged in a due diligence process on the CLC and will be presenting those results in 1Q2025. It is anticipated that the construction of this Center would allow for additional revenues and resources to be utilized to provide operational capital for other performance series and enhance and compliment ACCA’s downtown venues, further stabilizing and funding the operations of ACCA long term.

The potential acquisition of the North Island Center (NIC) office building. The City and ACCA would continue to discuss the City’s acquisition of the North Island Center to allow the City to be able to lease the NIC to ACCA for continued operations. Additionally, there would be opportunity for City/Civic and/or private sector use within the building allowing for potential rental revenue generation to offset the City’s investment. Should both parties wish to proceed, this phase would likely be executed in late 2025 or early 2026.

The first phase of the plan calls for the purchase of the parking garage across the street from the existing casino site at 2 W. New York Street. The purchase price is $10 million as appraised.

The City would utilize the 535-space garage to provide additional public parking capacity in the downtown in the immediate future and not have to construct a costly new facility.

At this time, the casino leases the deck and pays approximately $14,000 per month in lease charges. That $14,000 monthly revenue would then be paid to the City to partially offset debt service costs until the casino relocates. The casino is estimated to move in 1Q2026. As the casino relocates and the existing casino site is redeveloped, the City plans to allocate spaces to the new development to provide an attractive parking amenity on the land the casino will vacate. The parking garage will also be revenue producing for patron parking when the CLC is completed.

Included in the immediate Phase One is reimbursement for expenses incurred during the development of the Stolp Island Theater (SIT). The cost to develop SIT was approximately $3 million. Additional costs were incurred because of the general inflationary conditions impacting construction costs as well as specific expenses related to the construction of the set/environment necessary to “set the stage” for the Million Dollar Quartet series of performances. The City would fund approximately $1.3 million of the $3 million in construction costs in recognition of its long standing and beneficial partnership with ACCA. The City is the fee simple owner of the Stolp Island Parking Garage and the renovated Stolp Island Theater. The already well-attended performances at SIT will provide additional parking revenues and economic activity in the downtown

The last phase of the $13.8 million bond would request $2.5 million in costs related to the rehabilitation and reconstruction of the promenade riverwalk which runs along the east side of the Paramount Theater next to the Fox River. This promenade has needed reconstruction for some time. The walkway has substantial public benefit and much of the traffic utilizing the walkway is not related to ACCA/Paramount Theater operations.

In the past ACCA officials had applied for and received a State grant to be able to reconstruct the promenade. However, the funding from the State was placed on hold while funding was being secured in Springfield and the promenade was not able to be improved. Delays in funding plus cost increase/inflation resulted in $3 million in total payment cost even after going twice out to bid. We will be financing in this third phase approximately $2.5 million of promenade related costs, net of the state grant which have been/will be paid by ACCA for this project.

During 1Q2025, the City will present the full plan for the construction of the CLC. The proforma indicates that the CLC and all of its entertainment, dining, and special event amenities would provide significant additional revenue and resources for ACCA operations. The City would finance the construction of the facility via a bond issue and retain ownership of the facility as well as the obligation for ongoing debt service payments. The venue will be located at New York and Lake St. The Center is anticipated to open during June of 2027.

Additionally, the City will fund the $6 million deficit ACCA anticipates during 2026. Should the decision be made to proceed with improvements to the North Island Center Plaza, those improvements would also be reimbursed through City funding and the related bond issue. The North Island Center Plaza Improvements are estimated to cost approximately $1 million. It is therefore anticipated that the amount of City funding related to the ACCA portion of the funding would approximate $7 million. This constitutes Phase II of the plan outlined.

The third phase of the financial sustainability plan calls for continued evaluation of the City’s Purchase of the North Island Center building and an ongoing mutual initiative between the City and ACCA that seeks maximized operating efficiencies and capitalizing on various revenue sources within market parameters. These efforts and initiatives would include monitoring, evaluating and implementing most effective ticket pricing, instituting head taxes in all theaters, additional private and public fundraising, additional public and private grant availability, additional expense and operating efficiencies, and consideration of Board of Director enhancements commensurate with the growing family of ACCA facilities and performance venues.

In addition, the City and ACCA will work together to provide additional revenue enhancement opportunities to capitalize on the increased number of performances and the City’s growing base of restaurant capacity in accordance with recent economic development initiatives. It is anticipated that ACCA’s sale of this facility to the City of Aurora would provide approximately $4 million which would provide funding for ACCA to bridge the gap in its financial performance and obligations for 2027 when the CLC opens.

After the opening of the CLC, it is anticipated that the CLC and ACCA’s other venues would be performing at a self-sustaining level. The City would continue to pay for the debt service related to the bond for construction of the CLC as well as capital needs for the facility.

The City’s continued support for ACCA and the expansion of entertainment options in the City should lead to increased revenues and profits for the City’s businesses, translating to increased food and beverage taxes. Employment should rise as more jobs are created by the enhanced economic activity. The success of the downtown businesses will spur additional development. An example of these synergies is the success of River Edge Park which helped draw the Christkindlmarket to the downtown along with its approximately 250,000 visitors. The residential building now under construction on the east side of the Fox River draws from this same pool of energy.

If the plan is not approved, substantial changes would be necessary to ACCA’s programming and operations. If not approved, the financial viability of ACCA would be in significant doubt absent subsidy from the City. In addition, the City would not recognize the benefits from additional economic activity and tax revenues related to the construction of the CLC.

City staff members are seeking a recommendation to approve the three phase financial sustainability plan for ACCA in concept. Staff is further seeking a motion to approve the Resolution authorizing the staff to proceed with Phase One of the plan which calls for the purchase of the Parking Garage at 2 W NY Street in an amount not to exceed $10 million plus applicable closing costs, reimbursement of expenses related to the construction of Stolp Island Theater in the amount of $1.3 million, and reimbursement of costs incurred and to be expended for the reconstruction of the Promenade Walkway next to the Paramount Theater in an amount not to exceed $2.5 million. The total amount of Phase I is not to exceed $13.8 million.

Staff members will present the formal authorization and approval for the bond issuance at a future date; this step merely directs staff to prepare the related documentation and begin the process.

Phases 2 and 3 will be brought forward for formal City Council approval at a future time.

The City Council approved the following agenda items:

• A Resolution was approved to authorize the reappointment of Andrea Rios McMillian to the Civilian Review Board.
• A Resolution was approved to appoint Michael Smith to the Aurora Education Commission. Dr. Michael Smith is the superintendent of West Aurora School District 129.
• A Resolution was approved to establish the maximum number of licenses for tattoo and body art establishments in accordance with Chapter 25, Article XI “Tattoo and Body Art Establishments”.

City government of Aurora documents show the the purpose is to update the number of available licenses for tattoo and body art establishments.

In 2023, the City Council approved substantive changes to Chapter 25, Article XI “Tattoo and Body Art Establishments”. The changes included the ability for new businesses to open using the 1/2-mile distance buffer between any new tattoo establishments consistent with the city code. The City uses this same set back distance with alternative financial institutions, tobacco/alternative nicotine and cannabis dispensaries.

At the time of the Council amended Chapter 25, it afforded itself the discretion to adjust the number of available licenses by separate resolution. As is the case with other forms of licenses, the City Council authorizes a number of licenses equal to the number of establishments holding them, and then adjusts that number following the submittal of a complete application.

Revenue and Collections has a complete application for a new establishment. This resolution seeks to increase the number of available licenses from four to five.

• A Resolution was approved authorizing the director of the Purchasing Department to adopt new unit prices for the billing of water meters and meter accessories.

City government of Aurora documents show the purpose is to establish revised billing standards that more accurately reflect the current market pricing for water meters and accessories.

Section 48-II-2 of the City of Aurora Code of Ordinances states that the City owns and maintains all primary water meters. For new developments, the permittee pays a fee to cover the new water meter and accessories required for installation.

Core and Main is the sole source provider for Sensus water meters in this region.

Meters vary in size based on customer consumption needs. Based on 2024 unit pricing established by Core and Main, in nearly every application, the cost incurred by the City to procure meters and accessories exceeds the cost billed to the customer.

In recent years industry pricing has been volatile. In addition to dealing with rising commodity pricing we’re seeing an increase in freight, packaging, and labor. The disparity is significant enough for the City to consider adopting new unit pricing for billing purposes. Initial unit pricing to be adopted is shown in Table 1.1, column “Core & Main 2024 Pricing”. As prices continue to change, the cost charged by the City should adjust accordingly. The resolution would allow the Public Works director or their designee the option to establish the meter prices annually based upon a 5% increase of the previous year’s awarded value approved by the City Council.

Developers will pay current market pricing for water meters thereby reducing the cost burden on the City’s enterprise fund because of rising prices. For reference, in 2023, 477 meter kits were sold. This year, through July of 2024, the City has sold 319 meter kits.

• An Ordinance was approved to authorize a 100% principal forgiveness Loan Agreement (Public Water Supply Loan Program – Home Rule Entity) for the Lead Service Line Replacement Project.

City government of Aurora documents show the ordinance outlines the requested $3,027,000.00 amount of the forgivable loan. The City of Aurora qualifies for principal forgiveness for lead service line replacement and for FY2025 the maximum forgiveness amount is $3,027,000.00. The proposed 2024 budget shows the partial loan amount for construction of this service replacement project; the City intends to front fund the construction and seek reimbursement at the same time as payments are made to the contractor. Processing contractor payments significantly quicker in this manner in lieu of waiting for the receipt of loan funds makes the project more attractive to contractors and will most likely result in lower bids.

The State of Illinois passed Public Act 102-0613 in August 2021 titled the Lead Service Line Replacement and Notification Act requiring full replacement of lead water service lines when disturbed. The City of Aurora has an estimated 17,200 lead water services connected to the public water system. The Lead Service Line Replacement Project will include the full replacement of the lead service from the water main to the water meter in the house or the completion of previous partial lead water services to eliminate all sections of lead between the main and meter.

The service replacements per the funding approval must occur in Census Tracts 8542.00, 8529.04 and 8532.00.

Passing this ordinance is required by the IEPA to provide the City the forgivable funds necessary to construct this project in 2024 and 2025. The proposed 2024 budget shows the partial value of the forgivable loan in account 510-4058-511-73-02.

By adopting this ordinance, the City will be utilizing available forgivable funds to construct this project. Once completed, the project will reduce the number of lead services lines requiring replacement in the City of Aurora. During construction, there will be various local roadway and lane closures, delays are to be expected. Individual residential water outages will be kept to a minimum while the service is be connected at the water main and inside the house.

• A Resolution was approved to authorize execution of a Second Amendment to the Memorandum of Understanding between the Cities for Financial Empowerment Fund, Inc., and the City of Aurora, expanding the FEC Expert Partner Scope of Work and to receive the $10,000 stipend upon full execution of this Second Amendment.

City government of Aurora documents show the Aurora FEC became an FEC Expert Partner in 2022 and will continue to operate an FEC as a high-quality public service, actively contribute to the national FEC learning community (“FEC Public Learning Community”), receive technical assistance resources, and continue to use the Cities for Financial Empowerment Fund (“the CFE Fund”) central FEC database at no-cost. The Second Amendment reflects that the CFE Fund is expanding the Scope of Work of the Financial Empowerment Center Expert Memorandum of Understanding (the “MOU”).

In 2019, the City of Aurora applied for and received the Financial Empowerment Center Implementation Grant funds from the CFE Fund as a match grant to support municipal engagement to improve the financial stability of low- and moderate-income households by embedding financial empowerment strategies into local government infrastructure. The Neighbor Project (TNP) was hired as the servicing contractors for the grant agreement with CFE. The Aurora FEC became a part of a growing network of FECs 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 was successful in its two-year pilot phase. Thereafter, the City of Aurora extended the contract with The Neighbor Project for up to two annual extensions from 2022-2024 to continue to provide financial counseling and financial literacy to the community.

The CFE Fund has supported and continues to support the Aurora FEC through technical assistance resources, access to the National FEC learning community, and licenses to use the CFE Fund’s central FEC database. Important data from this database is regularly used to update the City of Aurora leadership team, as well as community and fiscal partners, of the progress the Aurora FEC is making in delivering its services to the community.

Since implementation, the Aurora FEC served 2,034 clients, had 2,365 outcomes, helped clients increase savings by more than $1,054,806 and reduce debt by over $3,239,618.

As the Aurora FEC expands, it is important to be supportive of the national organization and to remain involved in a national learning community. The Aurora FEC continues to receive recommendations for continued success from partnering cities and contributes to the success of other pilot FECs nationwide. The CFE Fund designated the Aurora FEC as FEC Expert Mentor in addition to the designation of Expert Partner.

The proposed resolution presents an opportunity to be paired by the CFE Fund with Pitkin, CO, an FEC Academy grant partner, to provide technical assistance and engage in mentorship activities and receive a stipend of $10,000.

• A Resolution was approved to authorize the director of the Purchasing Department to purchase CCTV devices from Scientel Solutions LLC., 2021 N Eola Rd, Aurora, for $189,305.25.

City government of Aurora documents show this resolution is requesting that CCTV devices and access control devices be installed at the Animal Control Building at 600 S River Street.

The Animal Control Building has no CCTV devices nor access control devices installed.

The Animal Control Building is easily accessible from South River Street. To increase safety surrounding the building and to act as the source of truth for incident and liability resolution as well as deter threats and be less susceptible to theft, crime, or vandalism, City staff members in conjunction with APD recommend CCTV devices be installed at this location.

After a competitive bidding process, Scientel Solutions, LLC., (“Scientel”) was awarded a three-year contract with a three-year option to manage and upgrade all City-owned CCTV cameras via Council resolution R21-135. This has provided Scientel with extensive knowledge of the City’s CCTV network. Pricing for improvements is based upon the agreements in R21-135.

This deployment will continue to be managed by Scientel with oversight by the IT Department. As defined in the Illinois Prevailing Wage Act, a Certified Transcript of Payroll will be provided to the City for all applicable work completed on this project.

As has been done in previous years, City staff members will bring larger deployments and projects to Council individually for approval. Examples of this are the deployments at River Edge Park and 1226 Grand Boulevard.

A budget amendment has been submitted to make funds available in account 101-1280-419.38-26 for this purchase.

This replacement was needed to ensure the Animal Control Building is properly monitored and protected in case of issue.

• A Resolution was approved to authorize a rental agreement with East Aurora School District 131 for the City of Aurora’s Youth Services Subdivision.

City government of Aurora documents show the City’s Youth Services has provided quality programs for youth, including the Aurora Youth Council, summer camps, and more. The agreement with East Aurora School District 131 will assist the Youth Services subdivision and to continue providing youth programs to all students, including those in District 131.

The proposed agreement allows the Youth Services subdivision to provide a soccer field for students at Rollins Elementary and other schools in that district. School staff members can determine use of this field, including during physical education classes, recess, after-school activities, and more.

This agreement is beneficial for the City of Aurora’s Youth Services subdivision and ensures quality programs can continue to be provided to students throughout Aurora.

This agreement should have a direct and positive impact on the City’s youth and their families as this will assist in continuing quality programming.

• A Resolution was approved to authorize the Community Services Department to accept the donation of a refrigerated vehicle from Grocery Delivery E-Services USA Inc. d/b/a HelloFresh, to be used for delivering meals to residents.

City government of Aurora documents show the City has received donated meals, to be distributed to residents of the City of Aurora. This refrigerated vehicle would be used to assist in the delivery of these meals.

Grocery Delivery E-Services USA Inc. d/b/a HelloFresh has provided a contract by which the City of Aurora would accept their donation of the refrigerated vehicle. Grocery Delivery E-Services USA Inc. d/b/a HelloFresh may need additional paperwork completed by the Community Services Department to complete the donation. By having the resolution, it will allow the Chief Community Services Officer or her designee, to complete any additional paperwork that would facilitate the transfer of the refrigerated vehicle from Grocery Delivery E-Services USA Inc. d/b/a HelloFresh to the City of Aurora. The refrigerated vehicle would be used to deliver meals to residents.

The vehicle will be donated by Grocery Delivery E-Services USA Inc. d/b/a HelloFresh and the Community Services Department will not have to pay for the vehicle. There will be minimal cost to transfer the title and plates to the City of Aurora.

• A Resolution was approved to authorize the director of the Purchasing Department to purchase access control devices from Scientel Solutions LLC., 2021 N Eola Rd, Aurora, for $217,013.50.

City government of Aurora documents show this resolution is requesting that access control devices be installed at the Water Production Facility at 1111 Aurora Avenue.

Installation of these devices at the Water Production Facility was approved as part of the City’s 2024 budget.

It is the mission of the Water Production Division of the Aurora Public Works Department to provide the City of Aurora with a reliable supply of safe, high-quality water, at adequate pressure for fire protection, in a cost-effective manner and in full compliance with regulatory requirements.

To increase safety and security in the Water Production Facility City staff members in conjunction with APD recommend access control devices be installed at these locations.

After a competitive bidding process, Scientel Solutions, LLC., (“Scientel”) was awarded a three-year contract with a three-year option to manage and upgrade all City-owned CCTV cameras via Council resolution R21-135.

As part of resolution R21-135, Scientel has configured and helped administer the City’s Genetec Security Center platform that integrates CCTV devices and access control devices into one simplified platform.

This deployment will continue to be managed by Scientel with oversight by the IT Department. As defined in the Illinois Prevailing Wage Act, a Certified Transcript of Payroll will be provided to the City for all applicable work completed on this project.

Funds are available in account 510-4058-511.38-72 for this purchase.

This improvement is needed to ensure the Water Production Facility is properly secured and protected in case of issue.

• A Resolution was approved for an addendum to an existing Network Infrastructure Managed Services contract from Scientel Solutions LLC., 2021 N Eola Rd, Aurora, IL 60502.

City government of Aurora documents show at the time of the award of R21-136, the City was maintaining two physically distinct computer networks with two distinct firewall infrastructures and configurations and the decision was made to exclude firewalls from the award until the new, unified network topology was fully defined. Now that the new network is complete, this resolution will bring firewall maintenance into the existing contract.

The Scientel agreement approved in R21-136 also includes network design, planning, procurement, monitoring and installation of devices which is not included in the former Cisco agreement. This agreement was approved as a three year term with optional two 1-year extensions upon mutual consent. The optional first year was offered and accepted in March 2024.

At the time of the approval of R21-136 it was unknown how many firewalls would remain on the newly designed unified network. Now that the networks have been merged and migration to Fortinet devices has been completed amending the contract approved in R21-136 to ensure firewall devices are covered along with all other network devices is cost-effective.

A network firewall is a security system that controls the incoming and outgoing network traffic based on predetermined security rules. It acts as a barrier between a trusted internal network and an untrusted external network, like the internet. By filtering traffic, it helps prevent unauthorized access and potential threats from reaching your network while allowing legitimate communication to pass through. Firewalls can also be configured to protect against various types of cyber threats and attacks.

After a competitive bidding process, City IT staff members selected Scientel Solutions the Network Infrastructure Managed Services partner. Scientel’s Solution offered an efficient, cost-effective, and risk-reducing approach for the City.

Scientel’s global headquarters based locally in Aurora, Ill. is home to a 24x7x365 Network Operations Center (NOC) with a world-class dispatch process. Scientel has integrated all City networking equipment into Scientel’s 24×7 NOC for monitoring to ensure that all networking equipment is operating effectively

As defined in the Illinois Prevailing Wage Act, a Certified Transcript of Payroll will be provided to the City for all applicable work completed within this program.

Based on the last year of the true up submitted in 2023 (R24-009) the cost was to be $901,250 annually, the proposed amendment will add annual fees of $109,833.20 to the existing contract for a new annual total of $1,011,083.20.

• A Resolution was approved for an addendum to an existing preventive maintenance and support of City-wide security/CCTV cameras contract from Scientel Solutions LLC., 2021 N Eola Rd, Aurora.

City government of Aurora documents show after a competitive bidding process, Council Resolution R21-135 awarded preventative maintenance and support of the City’s CCTV devices to Scientel Solutions LLC (“Scientel”).

This agreement was approved as a three-year term with optional three 1-year extensions upon mutual consent. The optional first year was offered and accepted in March 2024.

Management of these CCTV devices has been consolidated and is maintained city-wide via the Genetec Security Center. This resolution seeks to provide support to the Physical Access Control Systems (PACS) (aka ‘card readers’) in place at hundreds of doors throughout city buildings.

Over the last several years, city-wide door access control (card reader) has also been moved into an enterprise wide Genetec Security Center solution. Legacy systems that only supported door access control or those that were end of life have been removed and replaced by Genetec Security Center. These decentralized, legacy systems included Milestone, Casi-Rusco and Facility Commander implementations.

The Genetec Security Center is a unified security platform that combines access control, CCTV capabilities, communications, and other security capabilities into a single solution.

Use of the Genetec Security Center solution has provided staff members with one enterprise-wide solution to manage both CCTV devices as well as door access controls. This has been a highly effective, cost saving solution and has also allowed the City to consolidate from three different makes of proximity cards to one.

This resolution seeks to ensure that the PACS in place throughout city buildings are under a preventative maintenance and support program. Once finalized, this addendum will authorize Scientel to maintain, update firmware and replace all PACS throughout the city.

At this time, this is done in a one-off fashion with several vendors and is inefficient and leads to doors becoming inaccessible.

City IT staff members selected Scientel Solutions as the Preventive Maintenance and Support partner for CCTV devices throughout the city. The tight integration with CCTV devices and PACS within the Genetec Security Center solution will now be supported via one vendor.

Scientel’s global headquarters based locally in Aurora, IL is home to a 24x7x365 Network Operations Center (NOC) with a world-class dispatch process. Scientel has integrated all City networking equipment into Scientel’s 24×7 NOC for monitoring to ensure that all equipment is operating effectively

As defined in the Illinois Prevailing Wage Act, a Certified Transcript of Payroll will be provided to the City for all applicable work completed within this program.

Based on the true up submitted in 2023 (R24-008) the cost was to be $322,415.00 annually, the proposed amendment will add annual fees of $32,640.00 to the existing contract for a new annual total of $355,055.00.

Funds are available in Account Number # 101-1280-419.38-26 to pay for this purchase.

As part of the City of Aurora Technology Strategic Plan or “IT Roadmap”, the Information Technology Department is seeking to evaluate and improve efficiencies throughout the organization. This purchase is aligned with the Strategic Plan.

• A Resolution was approved to award a contract to Martam Construction, Inc. in the bid amount of $1,081,649.00 for the 2024 Bridge Rehabilitation Project.

City government of Aurora documents show the purpose is to award a Construction Contract for bridge maintenance on 3 bridges with the City.

The City inspects and maintains 33 bridges on the local street network. To ensure public safety, the City of Aurora’s bridges are inspected according to the Federal Highway Administration (FHWA) National Bridge Inspection Standards (NBIS). The inspection data is used by the Illinois Department of Transportation (IDOT) to allocate funding for bridge projects. The Engineering Division also reviews the reports to monitor bridge conditions, and plan for repairs and maintenance activities.

Based on the reports, IDOT’s recommendations and the available budget for the year, the Engineering Division went out to bid for a project that included the scope of work on the High Street, Ohio Street, and Wood Street bridges where the BNSF train tracks cross.

The project was advertised in the Aurora Beacon on August 5, 2024 and several vendors viewed the plan documents on the City website. Bids were opened and publicly read on August 21, 2024. The lowest responsible bid was submitted by Martam Construction, Inc. of Elgin, IL in the amount of $1,081,649.00 which is 2.76% more than the Engineer’s Cost Estimate.

The local preference ordinance applies to this contract, however there were no local bids. Martam Construction, Inc. is at 1200 Gasket Dr, Elgin, 60120.

The 3 bridges within the project scope are all in need of some repairs. High Street over the BNSF Railroad will receive the most extensive treatment with structural concrete repairs scoped for both abutments, each pier, and the superstructure. Wood Street and Ohio Street over the BSNF Railroad will only have repairs to the pavement connectors. Due to the design of these bridges, thermal expansion has caused buckling at the interface between the bridge ends and the asphalt pavement surface. This has resulted in some heaving and large bumps. These bumps have been reported by several residents, and staff members confirmed they are unpleasant to drive over. These repairs should fix the issues and are supported by the most recent require bridge inspections performed by Alfred Benesch & Company.

City officials recommend awarding the 2024 Bridge Rehabilitation Project to Martam Construction, Inc. for the unit prices submitted. This amount does include a $100,000 Items to Be Ordered by the Engineer line item which will act as a contingency to use on potential unknowns and any railroad costs needed via force account.

The improvements will be funded with Account 340-4060-431.73-80 (G016 – Bridge Rehabilitation) which has available funds in 2024.

Construction will begin in September and may continue into 2025, depending on weather and Railroad coordination. One bridge at a time may be closed during construction. Minor impacts to local traffic are expected during construction activities.

• A Resolution was approved to authorize an agreement for administrative services with Blue Cross Blue Shield of Illinois(BCBSIL) for HMO, PPO and Value HSA(HDHP) Group Health, Prescription Benefits Management(PBM), Flexible Spending, Dental, Vision, C.O.B.R.A. and Stop Loss Plan Administration for period January 1, 2025, through December 31, 2025.

City government of Aurora documents show the purpose is to authorize an agreement for administrative services with Blue Cross Blue Shield of Illinois for the City’s HMO, PPO and Value HSA(HDHP) health insurance plans, dental insurance, vision coverage, prescription benefits management (PBM), flexible spending, C.O.B.R.A. and stop loss insurance coverage.

The City of Aurora provides a fully insured HMO for active employees through BSBSIL Illinois (BCBSIL does not allow retirees to remain on the HMO), and two self-funded plans for active employees and Pre-65 retirees through CIGNA. CIGNA’s offerings include a Traditional Plan and a High Deductible Health Plan. January 1, 2018, the City carved out the Post-65 Medicare retirees to a Medicare Advantage Program and set separate funding rates for the active employees and the Pre-65 retirees to cover their necessary liabilities under the CIGNA plan.

The Human Resources team requested Assured Partners perform a complete market analysis for the city’s BCBSIL HMO plan and the CIGNA OAP and HDHP plans for the 2025 plan year. The analysis included the following:

PPO Network Disruption and Claims Repricing

HMO Network Disruption

Rx Reprice and Disruption (PPO plan)

Administration Services

Individual Stop Loss

Dental Administration

Vision Administration

Aetna declined the City’s request due to an inadequate HMO network. The HR team received offers from Blue Cross Blue Shield of Illinois, CIGNA, and United Healthcare. BCBSIL and CIGNA provided the most competitive combined offers for the city’s consideration.

BCBSIL initial HMO renewal increase was 5.4%.

Final Offer on a combined HMO, PPO, &HDHP

No change on HMO (ASO contract)

Guaranteed Rx Rebates of $902,400 HMO & $1,694,550 PPO

Pre-65 Retirees can elect the HMO plan effective January 1, 2025

$262,316 in Administration Fee Credits 2025

$125,000 Administration Credit for 2026 & 2027

Benefit Value Advisors included at no charge.

CIGNA’s HMO does not include Duly, thus City officials requested only renewal offer for the current plans. Claims year to date through June have been running at 3.5% above projections for the pre-65 Retirees, the Active OAP, and Value HSA. CIGNA’s renewal offer:

Individual Stop Loss insurance renewal is increasing 7.9% reduce from an initial 16% increase resulting in $100,000 reduction.

Rx Rebates are improving to $2,213,516 from $855,641 however they are not guaranteed.

Wellness Fund is remaining at $40,000.

CIGNA’s final offer would have resulted in a 12% increase for the OAP and HDHP plans for 2025 vs. 3% with BCBSIL.

BSBSIL offers a significantly larger network for employees as well as a significant cost savings for the City. The HR team’s recommendation is to have BCBSIL administer the HMO, PPO and HDHP, vision, dental, flex spending, COBRA and stop loss plans for the city.

Human Resources is seeking approval to enter into a one year agreement with BSBCIL.

• A Resolution was approved to establish C.O.B.R.A. Insurance Monthly Rates Effective January 1, 2025, to December 31, 2025.

City government of Aurora documents show the purpose is to establish the 2025 C.O.B.R.A. rates for the City of Aurora’s PPO Access and Value HSA(HDHP) comprehensive medical plans, Blue Cross Blue Shield Blue Advantage HMO and dental plan. The City is obligated by law to offer C.O.B.R.A. to employees and their covered dependents when they separate from employment for up to eighteen (18) months at 102% for the current premium rate.

Each year the C.O.B.R.A. rates are adjusted to reflect an additional 2% administrative fee to the current health and dental premiums.

• A Resolution was approved to establish Health and Dental Insurance Monthly Rates of Contributions for Pre-Medicare Retirees Effective January 1, 2025, through December 31, 2025.

City government of Aurora documents show the purpose is to establish the 2025 health and dental insurance monthly rates for Pre Medicare retirees.

The Pre Medicare retirees is a self-funded plan. January 1, 2018, the City carved out the Post 65 Medicare retirees to a Medicare Advantage Program and set separate funding rates for the active employees and the Pre Medicare retirees to cover their necessary liabilities.

The HMO, PPO, and HDHP offerings have remained stable since January 1, 2016. However, the city’s plan on a Per Employee/Retiree Per Year cost is significantly higher than the Mercer Government Benchmark.

Year HMO Mercer* CIGNA Mercer*

2020 18,312 15,862 20,544 14,000

2021 18,655 16,258 22,452 14,665

2022 17,691 16,665 22,500 15,244

2023 18,441 15,274 21,780 16,457

2024 19,548 15,656 23,016 16,868

2025 19,548 16,470 23,706 17,745

*Mercer’s 2024 and 2025 costs are projections assuming a 5.2% increase on HMO and 5.2% on PPO.

Renewal is a 3% increase for the Pre Medicare retirees.

The Dental Plan has not increased the annual benefit maximum of $1,200 for over 10 years which inflation has reduced the overall value of this benefit. Thus, the recommendation is to increase the annual benefit maximum to $1,750 and add coverage for dental implants. The city’s funding rates for dental will increase by 25% which will be funding with the projected savings from BCBSIL.

Retiree dental premiums and active employee dental rates are the same and there is no increase for 2025.

• A Resolution was approved to authorize Blue Cross Blue Shield Blue of Illinois (BCBSIL) for Group Health Care Services and Rates for the period of January 1, 2025, through December 31, 2025.

City government of Aurora documents show the purpose is to affirm the 2025 HMO, PPO and Value HSA(HDHP) schedule of benefits and establish the 2025 insurance premium rates of the City’s HMO, PPO and Value HSA(HDHP) medical insurance.

The City of Aurora provides a fully insured HMO for active employees through Blue Cross Blue Shield of Illinois(BSBSIL). There are two self-funded plans for active employees and Pre-65 retirees through CIGNA. CIGNA’s offerings include a Traditional Plan and a High Deductible Health Plan. January 1, 2018, the City carved out the Post-65 Medicare retirees to a Medicare Advantage Program and set separate funding rates for the active employees and the Pre-65 retirees in order to cover their necessary liabilities under the CIGNA plan.

The HMO, PPO, and Value HAS(HDHP) offerings have remained stable since January 1, 2016. However, the City’s plan on a Per Employee/Retiree Per Year cost is significantly higher than the Mercer Government Benchmark.

Year HMO Mercer* CIGNA Mercer*

2020 18,312 15,862 20,544 14,000

2021 18,655 16,258 22,452 14,665

2022 17,691 16,665 22,500 15,244

2023 18,441 15,274 21,780 16,457

2024 19,548 15,656 23,016 16,868

2025 19,548 16,470 23,706 17,745

*Mercer’s 2024 and 2025 costs are projections assuming a 5.2% increase on HMO and 5.2% on PPO.

The 2025 renewal rate is 3% for PPO and Value HSA(HDHP). The 2025 renewal rate is 0% for HMO.

• A Resolution was approved to authorize an agreement with Humana to administer a Medicare Advantage Plan for Medicare Eligible Retirees for the Period of January 1, 2024, through December 31, 2025.

City government of Aurora documents show the purpose is to authorize an agreement with Humana to administer a Medicare Advantage Plan for Medicare eligible retirees.

January 1, 2022, the City of Aurora moved the Post-65 Medicare retirees from the Aetna Medicare Advantage plan over to Humana’s Medicare Advantage Plan. Under the Humana Medicare Advantage Plan the City saved 43.3%, or approximately $835,730. The below is the rate history since 2019:

2020: $343.35 Per Retiree Per Month

2021: $314.84 Per Retiree Per Month

2022: $178.55 Per Retiree Per Month

2023: $199.98 Per Retiree Per Month

2024 $214.86 Per Retiree Per Month

Humana’s renewal for 2025 is a 16.2% increase. The main factors generating the increase are the notable revisions CMS is making to the Medicare Advantage program starting in 2025. The revisions impacting the plan are:

Ratebook resulted in CMS MA payment reductions.

The change in Risk Score Normalization: At a high level, CMS is moving from a single five-year linear regression methodology to a multiple year regression methodology. The result of this regulatory change (linear to multiple year) for risk normalization is a lower paid risk score, i.e., revenue from CMS.

Part D (RX) has been restructured. While the City members pay the cost share as defined by their custom prescription plan design, all Medicare Advantage carriers are required to track where a member is on CMS’ Defined Standard Benefit for Part D plans. The changes to Part D are as follows:

Members will have a $2000 maximum out of pocket. CMS is defining the maximum out of pocket as: member cost share plus any benefit plan enhancement. The actual cost share a member will pay for their Part D medications will vary based on the member’s specific medications/cost of their specific medications, most members will pay significantly less than $2,000 out of pocket.

CMS is eliminating the Coverage Gap. During this phase of the defined standard benefit, manufacturers have been required to provide a 70% discount.

The 70% manufacturer discount in the Coverage Gap is being replaced with a manufacturer discount of 10% in the Initial Coverage Limit phase and 20% in the Catastrophic.

At this time, CMS’s reinsurance in the CAT phase is 80%, in 2025 it is 20% for brand and 40% for generic; this another shift of costs to the Plan

Humana Plan Highlights:

Silver Sneakers – Fitness Program included (Enhancement over Aetna)

Home Delivery Meal Program – 14 days after in-patient stay

Go 365 Wellness Program included

Post-Discharge Personal Home Care

The City recommends accepting the Humana renewal for the Post-65 retiree health plan on January 1, 2025; the 2025 rate of $249.66 is 20.7% below the 2021 rates for Post-65 retirees.

• A Resolution was approved to authorize renewal of benefit consulting services with Assured Partners, formerly Group Alternatives, Inc, for the Period of January 1, 2025 through December 31, 2027.

City government of Aurora documents show the purpose is to obtain authorization to renew the agreement with Assured Partners for benefit consulting services.

Assured Partners is a benefit consulting firm specializing in large employers, partnering with clients to control costs and maximize benefit offerings. The City first began utilizing Assured Partners services in 2015 to facilitate the RFP process for the third-party administration of benefits. They assisted the City through the evaluation period which resulted in CIGNA being selected for the City’s third-party administration (TPA). Since that time, Assured Partners has provided services including but not limited to, securing the Humana Health Plan for Medicare eligible retirees, funding analysis, financial and compliance implications of legislative changes, provider network analysis including access and claim impact, ombudsmen with Cigna, Blue Cross and Blue Shield and Humana Medicare Advantage.

Assured Partners continues to be instrumental in assisting the City with implementing cost effective changes while at the same time maintaining a robust benefit plan for the City’s employees and retirees. Their recommendation to move the City PPO and Value HSA(HDHP) plans to Blue Cross Blue Shield of Illinois (BSBSIL) beginning January 1, 2025, will result in a guaranteed savings of 700,000. They also negotiated a renewal agreement with Blue Cross Blue Shield HMO for a 0% increase from the initial 5.6% for a savings of $500,000.

The data analytics that Assured Partners uses will continue to help the City mitigate rising cost and plan for the future.

The City is recommending to enter into agreement with Assured Partners for continuing services. This will also include the addition of their Member Advocacy Program (MAP), a value-added service that provide employees with personalized support and consultation when they need assistance navigating through billing questions, medical care and more. The fee for the three months will be waived and the City will have the option of cancelling services if not satisfactory.

The cost per employee per month (PEPM) is $2.00, $43,752 each year (3 months waived, 15-month commitment).

This is a 3-year contract, $52,500 each year. There was no increase from the previous 3-year contract.

Council approval is needed for professional services over $25,000.