===== PDF PAGE 34 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO FINANCE COMMITTEE AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: ___ 7______ Ordinance No. 26-O-0004 – Debt Authorization – General Obligation Bond Issuance - Industrial Streets Improvement COMMITTEE AGENDA DATE: March 16, 2026 COUNCIL AGENDA DATE: March 16, 2026 Project – Phase A – Fenton Lane, Western Drive and Downs Drive in an Amount Not to Exceed $9,395,000.00 STAFF REVIEW: Nikki Giles, Finance Director SIGNATURE__________________________ APPROVED BY INTERIM CITY ADMINISTRATOR: Tia Messino SIGNATURE________________________ ITEM SUMMARY: Many roadway segments in the City’s industrial areas require complete roadway reconstruction and underground utility improvements. These improvements are identified in the City’s 5-Year Recommended Roadway Improvement Program in FY 2026, FY 2027, and FY 2028. The Industrial Streets Improvement Program consists of Phase A, Phase B, and Phase C, as denoted in the enclosed location map. As of the 2025 Pavement Condition Index (PCI) study performed by the City, the industrial streets included as part of this program have the PCI scores as listed below. Western Dr – PCI = 17.4 (FY 2026 Project) Downs Dr – PCI = 10.4 (FY 2026 Project) Fenton Lane – PCI = 9.8 (FY 2026 Project) Industrial Dr – PCI = 38.5 (FY 2027 Project) Howard Dr – PCI = 14.0 (FY 2028 Project) Arthur Dr – PCI = 6.5 (FY 2028 Project) Blackhawk Dr – PCI = 22.2 (FY 2028 Project) 2026 Industrial Streets Improvement Project – Phase A – Fenton Lane (Project) is located on Fenton Lane from W. Washington Street to Helena Drive, as denoted in the enclosed location map. The scope of the project includes full- depth hot-mix asphalt (HMA) roadway reconstruction, proposed curb and gutter, proposed sidewalks, driveway removal and replacements, fire hydrants relocations, proposed street lighting system, and miscellaneous utility structure adjustments as denoted in the Project plans and specifications. The net length of roadway improvements is approximately 0.353 miles or 1,865 feet. The construction is anticipated to begin in spring 2026 and is expected to be completed in October 2026, weather permitting. The bid opening for this Project occurred on January 27, 2026. Schroeder Asphalt Services, Inc. (SAS) of Huntley, Illinois, submitted the lowest and most qualified bid in the amount of $1,642,817.43, which is $73,082.57 or approximately 4.3% under the FY 2026 budgeted amount of $1,715,900.00 under Capital Projects Fund Account No. 08-34-53-4807. 2026 Industrial Streets Improvement Project – Phase A – Downs Drive and Western Drive (Project) is located on Downs Drive and Western Drive from Industrial Drive to Kress Road, as denoted in the enclosed location map. The scope of the project includes full-depth Portland cement concrete (PCC) roadway reconstruction, proposed curb and gutter, proposed sidewalk, including pedestrian access at the existing at-grade railroad crossings, driveway removal and replacement, water main replacement, new street lighting, and miscellaneous utility structure adjustments as denoted in the Project plans and specifications. The net length of roadway improvements is approximately 0.953 miles or 5,034 feet. The construction is anticipated to begin in Spring 2026 and is expected to be completed in October 2026, weather permitting. The bid opening for this Project occurred on January 27, 2026. Plote Construction ===== PDF PAGE 35 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO Inc. of Hoffman Estates, Illinois, submitted the lowest and most qualified bid in the amount of $7,641,570.50, which is $1,519,270.50 or approximately 24.8% higher than the FY 2026 budgeted amount of $6,122,300.00 under Capital Projects Fund Account No. 08-34-53-4807. The overage is attributed to widening Downs Drive by 8-feet to meet Municipal Code, higher costs for PCC pavement construction and the watermain installation. Since 2023, the City has been working with Speer Financial, Inc. (SPI) to forecast various scenarios to issue General Obligation (GO) Bonds to fund the Industrial Street Improvement Projects. As part of the GO bond issuance process, the City’s current financials and outlook were evaluated by S&P Global in January 2026. The City obtained AA rating through this process which signifies a very high credit quality with a very low risk of default. It indicates that the City has a very strong capacity to meet its financial commitments, differing from the highest-rated (AAA) issuers only to a small degree. During the FY 2026 budget process, the City anticipated issuing a total of $22.07 million in GO bonds to fund all three years of the Industrial Streets Improvement Projects, which would equate to approximately $33.28 million in debt service over twenty-year period based on the available rates at the time of budget. The City staff continue to work towards seeking various alternative funding sources to fund portions of these Projects. There are some strong indications of securing some alternate funds. If alternate funding materializes as expected, the total GO bonds issuance is expected to reduce $19.85 million, resulting in $29 million in debt service over a twenty-year period based on current rates. As a reminder, the City approved 0.5% Home-Rule Sales Tax increase effective January 1, 2024, which is earmarked to pay off this debt service. The contract awards are contingent on issuance of the General Obligation bonds. ACTIONS PROPOSED: Approve Ordinance No. 26-O-0004 authorizing the issuance of General Obligation bonds to finance Industrial Streets Improvement Project – Phase A – Fenton Lane, Western Drive and Downs Drive in an Amount Not to Exceed $9,395,000.00 COMMITTEE RECOMMENDATION: