TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 7, 2024
COMMITTEE ON ENGINEERING
Mr. Brian A. Perkovich, Executive Director
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Authority to make payment to the Illinois State Toll Highway Authority, Streambank Stabilization Project along Higgins Creek at the Touhy Avenue Reservoir, North Side Area (NSA), between the District, the Illinois State Toll Highway Authority, and the City of Chicago (24-IGA-01), in an amount not to exceed $691,348.96, Account 201-50000-612400
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Dear Sir:
The Illinois State Toll Highway Authority (ISTHA) is constructing a new toll road known as I-490 along the west side of O’Hare International Airport which will connect I-90 with I-294 as part of ISTHA’s Elgin O’Hare Western Access Project (Project). The Project includes constructing an I-490 overpass that will span the Touhy Avenue Reservoir (Reservoir) site in Des Plaines, Illinois. The District owns the northern portion of the Reservoir site. The remainder of the site is owned by the City of Chicago (City). The Reservoir was built in the late 1980s to reduce flooding caused by Willow-Higgins Creek (Creek) in Cook County. A portion of the Creek runs the entire length of the Reservoir site. Since 2001, the District and the City have operated the Reservoir site pursuant to a written agreement governing the design, construction, operation, and maintenance of the Reservoir and the Creek (Agreement). Under the Agreement, the District is responsible for all maintenance costs related to the Reservoir, except those related to the Reservoir’s spillways, diversion structures, pump house, and pump equipment, which are shared equally by the District and the City.
Pursuant to Board approval on June 18, 2020, the District entered into an Intergovernmental Agreement (IGA) with ISTHA and the City for the Project. Under the IGA, the District agreed to grant two easements to ISTHA for temporary construction and permanent maintenance of the overpass, whereby the District was compensated for the easements which were entered by separate agreements. The IGA reiterated that the District and the City share equally in all costs related to the maintenance and reconstruction of the Creek’s banks located within the Reservoir site.
Several portions of the banks are currently in need of substantial maintenance or reconstruction so that the Creek and Reservoir continue to operate as designed. At the District and City’s request, ISTHA has agreed to repair such portions as part of the Project, provided that the District and City each agree to the final bid amount for the bank restoration work. ISTHA’s preliminary construction cost estimate for completing the work was $460,000.00. Under the IGA, the District and City are each responsible for paying 50% of the actual cost of such work.
ISTHA awarded the construction contract on January 26, 2024. The final bid costs for the Higgins Bank Stabilization along Higgins Creek, included as a part of this contract, is $1,202,346.01 for construction, $60,117.30 (5% of construction costs) for preliminary and final design engineering, and $120,234.60 (10% of construction costs) for construction engineering, for a total cost of $1,382,697.91. Accordingly, under the IGA, the District would be responsible for an estimated total of $691,348.96. The increase in the bank restoration project cost is attributed to an increased scope of work to address additional erosion of the Creek’s banks within the Reservoir site and that the scope of the project now includes dewatering the work area during construction based on discussions between ISTHA’s contractors and the United States Army Corps of Engineers, which requires a permit for the work.
ISTHA has indicated that the Project, including repairing the Creeks’ banks, contains MBE/WBE/VBE goals. The MBE/WBE utilization goals for the Project were set at 34% and VBE participation goals for the Project was set at 0.5%. ISTHA has represented that the contract for the Project was awarded pursuant to its statutory competitive bidding process and that both goals were met upon award of the contract.
ISTHA has communicated that the City is in agreement with the requirements of the IGA and will pay its equal portion of the updated bank restoration project cost.
Upon notice of approval by the District and the City, the District will pay ISTHA by direct voucher an amount equal to 50% of the District’s obligation, or $345,674.48. The final invoice will be issued upon completion of the contract and will be based on final actual costs. Upon completion and inspection of the work, the District will pay the remainder of the actual cost of the work not to exceed $345,674.48. Should the actual cost of the work exceed this amount, an additional request to the Board of Commissioners will be made after review by the Engineering Department.
The Engineering Department has reviewed ISTHA’s request and considers it reasonable.
Based on the foregoing, it is requested that the Board of Commissioners grant authority to make payment, by direct vouchers, in an amount not to exceed $691,348.96 to ISTHA. It is further requested that the Chairman of the Committee on Finance, Executive Director, and Clerk be authorized to execute any documents necessary to effectuate the transaction, upon approval by the Director of Engineering as to technical matters and by the General Counsel as to form and legality.
Funds are available in account 201-50000-612400.
Requested, Catherine A. O’Connor, Director of Engineering, KMF:LS
Recommended, Brian A. Perkovich, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for March 7, 2024
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