By Jason Crane
The Aurora City Council welcomed a delegation from the cities of Bergamo and Rimini, Italy, at the Aurora City Council meeting Tuesday, May 24.
The five government officials of both Italian cities made the 4,500-mile trip as part of their participation in the European Union’s International Urban and Regional Cooperation (IURC) Program. IURC is the world’s largest city-to-city cooperation program and an international network of reference for urban innovation and sustainable urban development.
The goal for the three-day comprehensive visit is to draw upon a wider pool of good practices and receive support in identifying innovative models in the following thematic areas: Sustainable Urban Mobility and Transport, Tourism and Culture, and Reducing the Digital Divide.
The cities will continue cooperating until December 2023 to develop an Urban Cooperation Action plan, to include actions and pilot projects.
Mayor Richard Irvin was not at the meeting and Fifth Ward alderman Carl Franco was mayor-pro tem.
Franco asked for a moment of silence for the victims of a mass shooting in Texas, to include 19 children.
• There were three ladies who shared success stories in achieving better health and emphasized the need for the City Council to approve a Redevelopment Agreement with QT3 Body Systems/Katheryn’s Place in downtown Aurora.
The City Council approved the following agenda items:
• Fifteen Resolutions authorizing Historic Preservation Grant agreements from $3,000 to $25,000 for repairs of various types, including painting, shutters, porch repairs, windows, and door restorations, chimney repairs, downspouts, and wood repair.
The Grant agreements are for the following 14 addresses: 502 Oak Avenue, 515 Oak Avenue, 535 W. Downer Place, 551 W. Downer Place, 325 Clark Street, 730 Grand Avenue, 548 Garfield Avenue, 217 N. Chestnut Street, 523 Oak Avenue, 411 Oak Avenue, 532 Oak Avenue, 402 S. 4th Street, 116 N. View Street, and 327 W. New York Street.
• Approved was an Ordinance amending the Conditional Use Permit on the property at 27 S. Edgelawn Drive, St. Mark’s Lutheran Church.
• Approved, 11-1, with Ward 9 alderman Ed Bugg voting against, was a Resolution approving a Redevelopment Agreement with QT3 Body Systems/Katheryn’s Place (KP) at 2 W. Downer Place in downtown Aurora.
City government of Aurora documents show economic development and stability in downtown Aurora requires a diverse business base of professional businesses, restaurants, and experiential activities. QT3/KP provides a combination of these business types and allows for access to fitness and healthy dietary choices in an urban environment. This redevelopment agreement will help support this business that was adversely impacted by COVID 19 in the form of reduced revenues and higher costs.
QT3 has been opened for approximately nine years. This minority owned business is looking to expand in both their primary mission of fitness training, and into healthy diet services. The business volume is $3,600 per month in training class revenue, conducted by the owner, Quint Thompson.
Rent has not been paid for more than two years, and part of this period was covered under COVID 19 rent deferral mandates. QT3 has a business plan for expansion, including additional trainers to increase revenues but will need additional equipment along with the new trainers to be competitive in this market.
KP is a start-up business in the same location that is an expansion of the owner’s original at-home juice business. This start up will have the normal needs of equipment and initial operating capital to be successful.
In order to specifically address the typical impacts of COVID 19 on QT3/KJB each area of the business was reviewed. By being closed for more than two years, the business has lost approximately $87,000 in revenue. While not being open the business has still been incurring rent at $1,700 a month, some of which has been paid by the business out of owner savings, with $19,000 still being owed (just under one year’s worth of rent). This generates losses/liabilities of $106,000 due to the COVID 19 pandemic.
Not all of the above losses, liabilities are ARPA eligible, however Economic Development staff members recommend that 2021 rent and rent through July 2022 be funded for a request of $25,800 (17 months of rent). Further, lost revenue for the same period of time at $3,600/month staff members recommend reimbursement of $61,200, for a total request of $87,000.
If the owner can receive support to cover these losses and outstanding liability they propose, as a part of their business plan as outlined in the business plan summary (provided in cooperation with Waubonsee College/SBA, to reinvest this support into expanding their operations to become more viable in the downtown. This reinvestment will come in the form of:
1) Payment of rent currently owed of $19,000 plus rent through July 31, 2022, the projected opening date for a total rent payment of $25,800 to be paid directly to Landlord.
2) Provide expanded operations of QT3 with additional trainers and equipment at a cost of $15,000, which will raise annual revenue for QT3.
3) Finish the space for Katheryn’s Place, which already has approximately $22,000 in electrical and plumbing work completed (paid by QT3 owner), through the purchase of refrigeration, juice bar equipment, seating and final juice furnishings for $35,000.
4) $11,200 for operating capital for the start up of Katheryn’s Juice Bar including inventory.
This brings the total reinvestment by QT3/KJB to $87,000, which is equal to the losses/grant amount of $87,000.
The Mayor’s Office of Economic Development has recommended the use federal funds from the ARPA program. As noted in section A below, the program is designated to support small businesses that have been negatively impacted by COVID 19.
The State, Local and Federal Relief Fund (SLFRF) provides vital resources for state, local, and Tribal governments to respond to the pandemic and its economic effects and to replace revenue lost due to the public health emergency, preventing cuts to government services. Specifically, the ARPA provides that SLFRF funds 11 may be used:
(a) To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
(b) To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers;
(c) For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and
(d) To make necessary investments in water, sewer, or broadband infrastructure. In addition, Congress specified two types of ineligible uses of funds: funds may not be used for deposit into any pension fund or, for states and territories only, to directly or indirectly offset a reduction in net tax revenue resulting from a change in law, regulation, or administrative interpretation.
Approval of this redevelopment agreement will provide continued diversity in business types in the downtown and will add to the total downtown experience for Aurora residents and employees.
• Approved was a Resolution appointing Aurora Fire Chief Dave McCabe to the Aurora Firefighters Pension Fund Board.
City government of Aurora documents show the Aurora Firefighters Pension Fund Board is a five-member board. Three of the five members are elected, two by active pension members and one by the beneficiaries. The remaining two members are appointed by mayor Richard Irvin.
• Approved was a Resolution appointing Aurora Fire Chief Dave McCabe to the Electrical Commission.
City government of Aurora documents show in June of 2021, the City Council approved changes to Chapter 2, which included a sunset provision for all board/commission members. The sunset was included to bring the board/commission terms into compliance with the new dates provided in the ordinance, as well as survey members if they wished to continue to serve or step down.
The nomination brought forth represents a new candidate.
• Approved was a Resolution appointing Aurora Fire Chief Dave McCabe as the Aurora representative to the Naperville Emergency Telephone System Board (ETSB).
City government of Aurora documents show in 2015, the City of Aurora began the process of leaving the Kane County ETSB and create an agreement to join the City of Naperville’s ETSB (R15-335). Resolutions 17-00073 and 17-00076, passed in January of 2017, allowed Aurora to disconnect from its current ETSB (Kane County ETSB) and join the Naperville ETSB. The legislation also established the operation and function of the Naperville ETSB once Aurora and the Village of North Aurora became part of the Naperville ETSB.
The Naperville ETSB is specific as to the board make-up, of the 12 members, Aurora is provided five seats. The Naperville ETSB consists of the following: City of Naperville chief of Police (chairman), city of Aurora chief of Police, village of North Aurora chief of Police, city of Naperville Fire chief, city of Aurora Fire chief, city of Naperville PSAP director, city of Aurora PSAP director (non-voting member), city of Naperville City Council member, city of Aurora alderman, two city of Naperville residents, city of Aurora resident.
Dave McCabe has 25 years as a Firefighter that will serve him well as an Aurora representative.
• Approved was a Resolution appointing Cathy Hayen to the Tree Board.
• Approved was a Resolution authorizing amendment of the redevelopment agreement authorized by Resolution R19-167 involving with respect to the business commonly known as Altiro.
City government of Aurora documents show staff members continue to work with downtown restaurants to re-open now that the Paramount is open for business. This amendment will update the RDA to reflect the current needs of Altiro, and the efforts being made by the Landlord (David Karademas) and the City to make Altiro a vibrant part of the downtown.
The corner of Stolp and Galena Avenue is at the center of the downtown and is a key location in support of a positive downtown experience of dining and entertainment. In 2019 the City entered into an agreement with Altiro to renovate this location as a new Latin fusion-themed restaurant. The COVID 19 Pandemic directly impacted many phases of the opening and operations of this restaurant and as such some of the provisions of the redevelopment agreement must be amended.
In May of 2021 the City reviewed an update of the Coronavirus Emergency Relief Fund (CERF), in which it was noted that Altiro had applied for funding but was not qualified due to the fact that they owed the City rent funds as a part of the original RDA above. Although not approved for CERF funds, City staff members recommended that $9,000 of CERF funding be designated as a source of funds to help amend the Altiro RDA at the appropriate time. This recommendation was based on the below brief summary of losses documented by Altiro:
Calendar Year 2020: Revenues: $382,199.78, COGS: $120,414.43 ((32%), GP: $271,785.35, Expenses: $322,212.86, Profit ($50,427,61),
Calendar Year 2021: Revenues: $675,507.56, COGS: $177,486.47(26%), GP: $498,021.09, Expenses: $517,631,41, Profit ($19,610.32)
Another key provision of the original RDA was the forgiveness of 9 months of rent at $4,000 a month during the opening of Altiro.
The economic landscape of costs/rents/prices in the downtown are changing just as they are throughout the country. Furthermore, the City continues to build knowledge on competitive rents for downtown businesses in this new economy. Similar to the amendments to other agreements in the downtown, this amendment provides for a conversion of loan to grant, the potential use of ARPA funds and support of operating and build out costs.
Staff members recommend that the original RDA be amended as follows:
All dates in the Agreement will be amended as needed and as shown in the amendment.
Section 6: Be amended to convert the repayment of $36,000 to the City of Aurora as a rent payment to a $36,000 forgivable loan that will amortize over three years, with any remaining unforgiven balance of the loan being reinstated in the event that Altiro ceases operations prior to that date. The effective date for the beginning of this forgiveness will be June 1, 2022 and will be calculated on a monthly basis over the three years for a total forgiveness of $36,000.00 ($1,000 per month).
Section 5 will be amended to adjust the senior lien period to run consistent with the forgiveness period proposed in Section 6.
Section 7 will be amended to allow the lien on furniture fixtures and equipment to run consistent with this forgiveness period in Section 6.
Section 8 and 9 will be amended to include the language as noted above and as noted in a new section to cover additional funding proposed below.
A new section providing for additional funding for:
A new awning for the building – $10,000 (quote provided by landlord)
A new HVAC system that will only service the Altiro facility – $30,000
New Outdoor Seating $11,000.00
Continued upgrade of the restaurant environment to match level seen at other locations, which entails $59,000 for main dining room improvements
The forgiveness of the rent/loan is not a new out of pocket expense and was provided in prior years. The additional funding for fixtures and HVAC is recommended to come from:
$60,000 TIF #1 Account 231-1830-465.55-63 Major Project Development in 2022
$41,000 American Rescue Plan Act (funds) – The replacement of HVAC systems is a consistent usage of both CARE and ARPA funds for the refit of facilities both public and private. This will require a budget amendment in 2022.
$9,000 from the CERF program Account 101-1830-465.53-88 as previously communicated to the City Council.
The landlord has also agreed to forgive the amount of rent due under the original RDA, worth $36,000.00 (for nine months Aug 19 through April 2020), plus an additional $52,000.00 (February 2021 to the present) , and has also agreed to reduce the rent from $4,000.00/month down to $2,500.00 Over a three-year period, this represents a further contribution by the Landlord of $54,000.00 for a total rent forgiveness/adjustment of $142,000.00.
Is this worth it? The landlord and Altiro believe this can be a profitable location and have another successful location in Downtown Wheaton. Unfortunately, due to COVID 19, revenues have not met the ongoing operating expense plus rent for the past two years. The 2021 loss for the restaurant was just under $20,000.00. By reducing the rent, and improving and expanding the environment (outdoor seating), this deficit can be erased.
Staff members have reviewed the Interim Final Rule and Final Rule provided by the U. S. Treasury Department regarding the use of ARPA funds (Actually titled the State, Local and Federal Relief Fund – SLFRF). These documents mainly focus on descriptions regarding direct help to low income households, but as noted below, support local businesses is a specifically discussed use.
“The SLFRF program provides vital resources for state, local, and Tribal governments to respond to the pandemic and its economic effects and to replace revenue lost due to the public health emergency, preventing cuts to government services. Specifically, the ARPA provides that SLFRF funds may be used:
(a) To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
(b) To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers;
(c) For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and
(d) To make necessary investments in water, sewer, or broadband infrastructure. In addition, Congress specified two types of ineligible uses of funds: funds may not be used for deposit into any pension fund or, for states and territories only, to directly or indirectly offset a reduction in net tax revenue resulting from a change in law, regulation, or administrative interpretation.”
• Approved was a Resolution accepting a training monetary award from SunGard Public Sector Users’ Group Association, Inc. (SUGA).
City government of Aurora documents show the purpose is to obtain approval to add the $25,000 SunGard Public Sector Users’ Group Association, Inc. (SUGA) monetary award into the 2022 Human Resources budget.
The City government has been a member of SunGard Public Sector Users’ Group Association, Inc. (SUGA) since 1992, when they first acquired the HTE application. SUGA provided updates and training on the application. The City government has had numerous employees involved within the SunGard Public Sector Users’ Group Association, Inc. (SUGA) organization, on the board, attending training and conferences.
SunGard Public Sector Users’ Group Association, Inc. (SUGA) is in the process of disbanding the organization and disbursing their funds by way of training grants. The COA Training and Development will be able to use the funds to provide training opportunities for the City of Aurora employees. A portion of the funds will be used to obtain an online training platform.
• Approved was a Resolution approving the purchase of bulk rock salt in the amount of $75.88 per ton from Morton Salt Inc., Chicago, IL, for the Division of Street Maintenance under the DuPage County Joint Purchasing Agreement Bid for the 2022-2023 winter season.
City government of Aurora documents show the purpose is to obtain City Council approval for the purchase of bulk rock salt in the amount of $75.88 per ton from Morton Salt Inc. for the Division of Street Maintenance under the DuPage County Joint Purchasing Agreement Bid for the 2022-2023 winter season
The bulk rock salt is used to melt snow & ice from City streets, making safe for vehicular traffic. The city government of Aurora will be dividing the road salt purchase again this year between DuPage County Department of Transportation and the State of Illinois Joint Purchasing Agreement. By dividing road salt orders between two government agencies soliciting bids, they hope to have two different suppliers. This will provide alternate source of salt deliveries should one of the two providers be unable to make timely deliveries.
The City anticipates purchasing from Morton Salt Inc. Approximately 7,500 tons (50% of the City’s annual order) of bulk rock salt for the 2022-2023 winter season.
Local preference does not apply since the city government of Aurora is participating in a Joint Bid through DuPage County.
$650,000.00 has been budgeted for this expense in the 2022 using account 203-4460-431.65-32 and the department does not anticipate going over budget with this approval.
• Approved was a Resolution authorizing the execution of additional agreements related to the Redevelopment Agreement for the Pizzuti Development comprising a part of West Farnsworth TIF District No. 7.
City government of Aurora documents show the purpose is to obtain authority to enter into various agreement related to the Pizzuti Development at the corner of Mitchell and Corporate Drive in the City’s TIF 7 which governs the apportionment of certain repayments of debt service reserve monies and the re-allocation of residual increment funds related to the Pizzuti development for reimbursement of the debt service reserve payment by the current property owner, Molto Properties, LLC (“Molto”) through its subsidiary Mitchell Corporate, LLC (“Mitchell”).
In 2018, the City Council approved a redevelopment agreement with Pizzuti Aurora Industrial, LLC, (“Pizzuti”) for property at Mitchell Rd and I-88. Among other things, the agreement called for Pizzuti to construct a large distribution center and for the extension of Corporate Boulevard, long desired by the City. The right to purchase the real property for the distribution center was assigned to Mitchell Corporate, LLC (a Molto-controlled entity), by Pizzuti, in January 2019. The redevelopment agreement contemplated a set time frame for project completion and timed its financing obligations based upon the distribution center being ready for occupancy 10 months after project approval. The initial schedule contemplated project completion by June of 2019, but the City did not issue a final certificate of project completion until June 2020.
Due to delays in completing the construction and the subsequent tax assessment of the distribution center constructed in conjunction with the redevelopment agreement, a timing difference has arisen between the assessment of the developed property, levying of property taxes, and the schedule of debt service payments for bonds originally issued by the developer.
Further complicating the situation was the assignment of the Redevelopment Agreement and purchase of the distribution center by Mitchell prior to December 1, 2020 – the date the initial property tax payments (for calendar year 2019) were due. When Mitchell did not pay property taxes (and it disputes its obligation to based on the timeline set forth in the RDA) in 2020, its payment was made by the trustee for the bond holder. This situation was brought to the City’s attention in 2021 when Mitchell (initially) did not make its required payment and the bond holder threatened a default.
The RDA entitled the Developer to certain periodic payments from the TIF revenue stream. The Developer subsequently issued bonds to finance the required improvements, assigning all rights in the future TIF payments to the bond Trustee at the time of the bond issuance. All parties anticipated that the building would be completed during 2019, but due to delays, including those associated with the Pandemic, the building was not completed until June of 2020. This delay resulted also in a property assessment that did not yet reflect the value of the improvements on the property, and generated tax revenues that were insufficient to make the required debt service payments for the 2020 and 2021 installments. Because the trustee used the bond debt service reserve, to make those payments, those funds are presently depleted.
The proposed resolution contemplates Mitchell making 2 payments immediately; one of which covers the shortfall in current debt service payments in the amount of approximately $117,000 and an additional payment of $175,000 to replenish the debt service reserve. The $117,000 to finance the gap in the current debt service is not reimbursable to Molto.
After Mitchell makes these payments, it will be reimbursed for $105,000 which represents 50% of the $210,000 in total payments to be made by Mitchell; $175,000 to reimburse the debt service reserve and $35,000 in legal fees. The payment is to be made from future incremental revenues related to the development of the industrial building; the entire payment is coming from on-site increment revenue from the industrial building in question.
The incremental revenue from the building is approximately 1.4 times the amount necessary to pay the annual debt service and related expenses. The city government of Aurora anticipates that this higher-than-anticipated rate this will continue into the future and that the bonds will be fully paid and Mitchell will be reimbursed by the end of calendar year 2030 based on current projections.
The TIF expires at the end of 2034 and any incremental revenue generated which is not necessary for debt service payments or related expenses will be available for TIF eligible projects within the TIF District once the bonds are defeased and Mitchell is reimbursed. Based on current projections the increment generated once all obligations for this development are satisfied could approximate $2 million. This revenue would be available for qualifying expenditures in TIF 7.
If not remedied, the timing difference and resulting temporary revenue shortfall could result in an instance of default on the Developer’s bond issue. The City could potentially be named in any resulting litigation necessitating the incurrence of significant staff members time and potential legal expense.
Reimbursement to the Mitchell would come from future TIF increment-there is no impact to the current City revenue stream. The city government of Aurora anticipates that there will still be substantial increment available for projects generated by the development. In fact, they anticipate that even after these reimbursements, the revenue generated from this project available to the City will exceed the original projections.
• Approved was a Resolution authorizing the purchase of Pollution Liability/Environmental Insurance for the Period of April 30, 2022 to April 30, 2025.
City government of Aurora documents show the purpose is to obtain approval to purchase Pollution/ Environmental Liability Insurance for the period of April 30, 2022 to April 30, 2025.
The City has had in place for the past three years a ten million dollar ($10M) pollution liability insurance policy with a $250,000 self-insured deductible amount from Allied World Assurance Company (AWAC) as an essential component of its overall self-insurance liability program for any pollution claims against the City. This expiring three (3) year policy inclusive of the premium, applicable taxes and broker fee totaled $85,840.00.
The City’s broker, Hub International, reviewed the existing coverage for adequacy, updated the City’s schedule of covered locations and surveyed the market conditions for pollution liability coverage. Nine other markets contacted were either not competitive or could not match or improve the current coverage offered by AWAC. The recommendation is to accept the three year renewal quote from incumbent Allied World Assurance Company (AWAC). The overall renewal rate is seven percent above 2019 levels and the three year policy has increased by approximately $6,000 because of new city-owned properties added since 2019. In addition, Hub was able to negotiate the addition of automatic grant of coverage for inclusion of newly acquired properties, reduced the across-the-board deductible for all claims to $250,000 and added unscheduled omitted locations to the coverage. AWAC’s premium quote inclusive of premium and taxes is $91,974.00. Hub is not charging a broker fee for this transaction. AWAC is highly rated in terms of financial stability and ability to pay claims. $95,000 was allocated in 2022 for pollution/environmental liability insurance are budgeted in account #601-0000-410.40-01.
The city government of Aurora would have a gap in coverage and be financially responsible for any pollution/environmental liability claims beyond $250,000 per claim for existing properties and no coverage for newly acquired properties.
City government of Aurora documents show the request is for the Finance Committee to approve the resolution authorizing the purchase of pollution/environmental liability insurance through Allied World Assurance Company as proposed by broker Hub International for a total of $91,974.00.
• Approved was a Resolution establishing the maximum number of Class D: Downtown Core Entertainment District (Onsite Consumption) liquor licenses, (unofficially related to the application from Taqueria El Tio Restaurant, LLC at 81 S River Street). [Ward 6]
City government of Aurora documents show the purpose is to approve the change of ownership of a licensed business and decrease the number of Class B licenses by one and increase the number of Class D licenses by one. Taqueria El Tio Restaurant LLC, d/b/a Taqueria El Tio Restaurant, is undergoing a 100% ownership change for the business at 81 S River Street, and has applied to sell alcohol for on-site consumption only.
This request is presented in accordance with the 2011 amendment to the City’s Liquor Ordinance, specifically Section 6-9(a), which charges the City Council with the authority to determine the number of licenses available in each classification.
Taqueria El Tio Restaurant LLC, d/b/a Taqueria El Tio Restaurant, is undergoing a 100% ownership change for the business at 81 S River Street and has applied for a liquor license for the purposes of selling alcohol for on-site consumption only. This is a 100% ownership change, and this ownership change is between the current owner and the owner of another liquor licensed establishment, El Autentico Jalisco, Inc. at 110 N. Lake Street in Aurora. The existing business has held a liquor license allowing for on-site consumption at this location since prior to 2011 when ownership changed hands. If approved, this resolution will increase the number of Class D licenses by one and decrease the number of Class B licenses by one, and will allow for the issuance of the license by the Liquor Commissioner to the new owner. City staff members have been working with the applicant to ensure that all requirements for a liquor license, as set forth in Chapter 6 of the City’s Code of Ordinances, are met.
• Approved was a Resolution authorizing the execution of a purchase agreement with Alarm Detection Systems, Inc. in the amount of $53,233.00 and an additional project contingency of $5,323.00 for the upgrade of the fire alarm system at the Stolp Island Parking Garage.
City government of Aurora documents show the purpose is to obtain City Council approval for the fire alarm upgrade at the Stolp Island Parking Garage.
Alarm Detection Systems, Inc., at 1111 Church Road, Aurora, Ill., monitors and maintains fire and security systems for all City-owned facilities throughout Aurora including the Stolp Island Parking Garage, at 5 E Downer Place.
The Stolp Island Parking Garage is equipped with a Radionics fire control panel that has become obsolete and is no longer supported by the manufacturer. Due to the obsolescence of the panel, replacement parts are scarce and have been difficult to obtain. Additionally, the panel, pull stations, and audio/visual warning devices do not comply with current building codes.
Alarm Detection Systems has proposed to upgrade the alarm system which includes elimination of the obsolete Radionics panel, integration of the fire alarm system into the existing Edwards control panel, replacement of the audio/visual warning devices, and the replacement of the pull stations for $53,233.00.
A ten percent (10%) contingency of $5,323.00 is requested for this project.
Following the upgrade, the alarm system will be addressable, providing improved notification to fire and police, comply with building codes and improve the safety of tenants and patrons of the facility.
Using Alarm Detection for this upgrade provides continuity with the other buildings/facilities (nearly 50 locations), the same response team, only having one vendor contacting the supervisors and/or one vendor to contact with issues/concerns.
This project was approved in a decision package for 2022 in an amount of $60,000.00 and is funded in account 520-4432-437.38-05.
• Approved was a Resolution authorizing the director of Purchasing to enter into an agreement with Reinders, Inc., 911 Tower Road, Mundelein, IL 60060 in the amount of $411,000.00 for mowing equipment to be used at the Phillips Park Golf Course.
City government of Aurora documents show the purpose is to purchase new mowing equipment for the Phillips Park Golf Course.
The primary mowing equipment used to maintain the turf at the Phillips Park Golf Course has reached the end of its usable service life. In order to continue to properly mow the course, the City is looking to buy new equipment.
The preferred approach for this purchase is the Omnia Partners Public Sector Cooperative Purchasing Contract. Utilizing this contract (#2017025), the City (Omnia membership #1145302) requested the quote from Reinders, Inc., which was proposed as a 5-year lease agreement for the equipment to be provided. However, upon review and internal discussions, City staff members have determined that a cash purchase of this equipment is more advantageous and will result in a savings of over $53,000 over the proposed five-year term.
It should be noted that due to supply chain issues, many of the items included in this purchase will not be available immediately. As a result, Reinders has reserved the right to adjust the final price of each item to reflect fluctuations in material costs which may occur at the time of availability. To account for this potential fluctuation, the City has added an approximately 5% contingency ($19,563.45) to the purchase price listed on the proposal ($391,436.55). Based on feedback from Reinders, this contingency amount should be more than enough to cover any increases to the prices of the equipment to be purchased.
As part of the (cash purchase) agreement, Reinders, Inc. will allow the City to trade-in the used equipment to be replaced at salvage values estimated on the inventory list. Each item’s trade-in will coincide with the purchase of the equivalent new item and will come in the form of account credit which the City will use toward future parts and service expenses.
This purchase was an approved Decision Package in the 2022 Capital Budget and will be funded using account 550-4442-451.74-99. Since the Decision Package reflected an anticipated five-year lease, a Budget Amendment will be required to fund the revised approach of a single cash purchase in the amount of (not to exceed) $411,000. The funds will come from golf course operating revenues.
• Approved was a Resolution for the acceptance of bid pricing from Waupaca Sand & Solutions for purchase of infield materials.
City government of Aurora documents show the purpose is to obtain City Council approval to accept bid pricing Waupaca Sand & Solutions for purchase of infield materials.
There are several fields maintained by the Parks department, including fields at Solfiisburg, Garfield and Phillips Park.
The City government solicited an invitation to bid for “Ballfield infield purchase/repairs” for City owned ballfields (Bid 22-29) and received bids from three companies. After review of the bids the City government would like to recommend purchase of materials from Waupaca Sand & Solutions Waupaca, WI.
The Parks department submitted decision packages for these materials in the 2022 budget totaling $136,000 in account 101-4440-451-65-05.
The per ton costs submitted, included a line item for delivery (if applicable). The submitted bid from Waupaca Sand includes this fee, which is a fuel surcharge. Even with this additional per ton charge, Waupaca Sand was the lowest responsible bidder.
While the bid also included an optional line for contractors to provide bid pricing for performing the repairs, due to the high costs the City government will be performing the repairs with inhouse labor. Due to the timing, all repairs will be commenced in the fall after this years summer leagues conclude.
The Local Preference Ordinance does apply to this bid but did not impact the decision.
• Approved was a Resolution to award the N. Constitution Drive Water Main Replacement project in Ward 5 to Stokes Excavating, Inc., 903 Daisyfield Rd, Rockford, Ill. in the bid amount of two hundred seventy thousand three hundred fifty-five dollars and zero cents ($270,355.00).
City government of Aurora documents show the purpose is to replace the 8” water main along N. Constitution Drive from W. Galena Boulevard to Independence Drive. The N. Constitution Drive water main has broken several times this spring and has a history of breaks.
This section of 8” water main will tie into previously replaced 8” water main crossing W. Galena Boulevard to the south in 2019. There are no lead water services to be impacted within the project limits. Closures of entrances to the businesses and residences will be kept to a minimum during construction.
Eight bids were received, opened, and read aloud on April 27, 2022. The lowest responsible bid in the amount of ($270,355.00) was submitted by Stokes Excavating, Inc. These water main improvements will be funded with account 510-4058-511-73-02 (IC076) which has a 2022 budget amount of $12,151,800.00.
This project was subject to the Local Preference Ordinance, however no local contractors submitted.
There will be lane closures of N. Constitution Drive during the duration of the project. Water shutdowns during the project will be planned and coordinated with the local businesses and residences to minimize impact. Impacts to traffic and local residents will be kept to a minimum.
• Approved was a Resolution authorizing an agreement for a five-year subscription for digital services and website software from CityBase, Inc., Chicago, for an amount not to exceed $605,242.
City government of Aurora documents show the City government desires a digital services platform that is easy and intuitive for visitors to navigate, efficient for City staff members to manage and update, all while providing a wide variety of services, information, and capabilities to Aurora residents.
The City has utilized CivicPlus for website services since 2016. During that time, staff members and resident needs have continued to evolve. Since the start of the pandemic, the need for more digitization of services and the desire for a more comprehensive and flexible website platform continued to grow.
The current website’s outdated templates limit the ability of City staff members to make changes to the website efficiently; overcrowding of information causes difficult navigation throughout the site; and simple payment transactions based on modern technology standards cannot be offered on the website’s current platform. Rebuilding the City’s website will improve its value as a communication tool for visitors. The redesigned website will ensure content and features meet the needs of all residents, businesses, and visitors of the site, including mobile users and those requiring Americans with Disabilities Act (ADA) accommodations. To achieve this, the redesign of the website will be research-driven by continuous evaluation of website traffic with Google analytics and other analytics software.
The city engaged Marketplace.city to find a digital services platform that was easy and intuitive for visitors to navigate, efficient for City staff members to manage and update, all while providing a wide variety of services, information, and capabilities to Aurora residents.
Marketplace Process Summary:
May – July 2020
Created Market Landscape with 50+ companies;
Conducted direct outreach to Market Landscape to gather additional information from companies, with 6 companies qualifying based on city needs;
Project put on pause based on City priorities with other projects and Covid-19 response;
2021 Reengagement;
Discussed updated timeline;
Conducted Public Notice (General RFQ) on City of Aurora Website to determine additional interest from the market;
Sent vendor response form to qualified vendors for submission;
Summarized response data from vendor submissions to determine qualification for vendor meetings;
Meetings conducted with qualified vendors from 2021 Outreach;
Sent Final Proposal to 6 qualified vendors for submission;
Summarized response data from 5 Vendor submissions;
Conducted final meetings with 3 finalists;
Final Vendor scoring;
Vendor Recommendation.
After using the Marketplace.city process, the city of Aurora project stakeholders chose CityBase as the selected vendor for the digital services and website opportunity. CityBase provides a comprehensive solution of services and technology that delivers an accessible, mobile-responsive, ADA-compliant, fully featured, and affordable digital city hall that can evolve as the needs of Aurora and its residents change.
A 2022 decision package was approved for account 101-1281-419.32.20 for $605,242 for five years at an average annual cost of $121,048.
As the City continues to improve digital services and implement the Information Technology Strategic Plan, a website platform that supports new and engaging digital services is paramount to the continued success of City initiatives.
• Approved was a Resolution authorizing the director of Purchasing to enter into an agreement with TAT Enterprises, Inc. of Union, Ill. in the amount of $101,493.75 for asphalt resurfacing at the Phillips Park Golf Course Parking Lot.
City government of Aurora documents show the purpose is to enter into an agreement with TAT Enterprises, Inc. in the amount of $101,493.75 for asphalt resurfacing at the Phillips Park Golf Course Parking Lot.
The asphalt driveway and parking lot adjacent to the pro shop at Phillip Park Golf Course is showing considerable deterioration, including cracking and potholes.
As part of standard maintenance of parking lots and drives of this type, the City plans to edge mill and resurface/overlay the asphalt pavement. By edge milling in-lieu of milling the entire lot, the selected contractor will add overall thickness to the pavement section, increasing the structural strength and extending the life of the parking lot. Resurfacing of an adjacent portion of the asphalt cart path (near the recently completed addition to the pro shop), proper filling of potholes (prior to overlay), and restriping of the lot and drive are also included as part of this contract.
An invitation to bid was published and seven bids were read aloud on April 27, 2022. Of the seven bids received, TAT Enterprises, Inc. was determined to be the lowest responsible bidder in the total amount of $101,493.75. This amount includes a base bid of $98,693.75 as well as a bid alternate of $2,800 to keep half of the parking lot open to golfers at all times during construction. It is worth noting that the base bid includes a $15,000 contingency to address any additional repairs or quantities deemed necessary during construction, including those for which unit prices were provided as bid alternates.
This bid was subject to Local Preference, but the lone local vendor (Geneva Construction Company) was not within the allowable threshold for consideration.
This project was budgeted in 2022 with account 550-4442-451.38-99 (CIP F063) in the amount of $119,802.00.
The resurfacing of the parking lot will improve the experience of using the golf course for residents and other revenue-generating customers.