TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 17, 2025
COMMITTEE ON STORMWATER MANAGEMENT
Mr. John P. Murray, Acting Executive Director
Title
Authority to amend the intergovernmental agreement with and make payment to the Village of South Holland for the design, construction, operation, and maintenance of the Thorn Ditch Flood Mitigation Project in South Holland (24-IGA-05), in an amount not to exceed $5,860,000.00
Body
Dear Sir:
Authorization is requested to amend the Intergovernmental Agreement (IGA) with the Village of South Holland (Village) for the design, construction, operation, and maintenance of the Thorn Ditch Flood Mitigation Project in South Holland (Project).
On August 8, 2024, the Board of Commissioners authorized the District to enter into an IGA and make payment to the Village to provide funding assistance for the Project. The Project’s original scope was developed to mitigate local flooding and included the upsizing of four existing culverts along Thorn Ditch and the construction of two stormwater detention basins at local parks. The District’s reimbursement for construction costs is not to exceed $5,860,000.00.
The Village recently solicited bids for the construction of the Project. The lowest responsible bid received was $8,325,000.00, which is more than 42.1 percent higher than the original engineer’s cost estimate of $5,860,000.00. The Village believes the significant cost increase is a result of market volatility, including uncertainty in pricing due to tariffs and inflation, as well as logistical challenges and additional costs related to mobilization and working in a constrained residential area. The Village has indicated it cannot cover this funding gap.
To ensure the fiscally responsible completion of the Project under the current budget, the Village and the District have mutually agreed that the best approach is to reduce the Project’s scope. The proposed amendment to the IGA removes the replacement of one of the culverts from the scope of work. This modification will allow the Project to proceed within the established funding parameters. The District and the Village have determined that this change will not significantly diminish the overall flood reduction benefits for the project area.
Based on the foregoing, it is requested that the Board grant authority for the District to amend the captioned IGA with the Village to reflect the revised scope of work as described herein. It is further requested that the Chairman of the Committee on Finance, Acting Executive Director and Clerk be authorized to execute said amendment on behalf of the District, upon approval by the Director of Engineering as to technical matters and by the General Counsel as to form and legality.
Funds for this project are subject to appropriation in 2025 and 2026 in Account 501-50000-612400. Funds in the amount of $5,860,000.00 are anticipated to be spent over an 18-month period, in accordance with the agreement after it is executed. Funds requested in Future years are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Catherine A. O’Connor, Director of Engineering, KMF:JK
Recommended, John P. Murray, Acting Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for July 17, 2025