Lake Forest council approves contingencies, extends temporary signal for Deerpath streetscape project

Lake Forest — The City Council voted 8-0 Tuesday to approve contingency funds and extend a temporary traffic signal as work begins on the Deerpath Streetscape project.

The council approved three related items: a temporary-traffic-signal services agreement with the owner of the existing portable signal, authorization of a $150,000 construction contingency payable to the Illinois Department of Transportation (IDOT), and authorization of a $150,000 construction contingency and miscellaneous services payable to DeLand Construction LLC. The council’s vote was a roll call that resulted in eight yays and zero nays.

The measures aim to cover unforeseen costs on the federally funded ITEP (Illinois Transportation Enhancement Program) streetscape project and to maintain the portable signal at Westminster and Green Bay through the active construction period. City staff said IDOT does not include a local contingency above the award amount, so the city is adding a 10% contingency overall and splitting it roughly half to IDOT and half to the contractor to speed payment of ineligible or miscellaneous items.

“IDOT will pay the project completely and then they'll invoice us and we'll pay them back for our share,” Superintendent of Engineering Byron Coutts said. Coutts told the council the low bid on the project was $2,990,000 from DeLand Construction; staff calculated about $2,356,000 of that bid is eligible for the federal 80/20 split, producing an approximate federal share of $1,880,000 and a local match of about $471,000. Adding in ineligible costs of roughly $660,000, staff estimated local funding needs near $1,100,000 of the $2.33 million originally budgeted for local funding.

Coutts also explained why the city is proposing to pay $150,000 directly to DeLand for contingency items: some work items would be ineligible under IDOT rules or administratively cumbersome to process through IDOT, and paying DeLand directly would reduce delay and allow more rapid response to field needs. He said that any contingency funds not used will remain in the city’s capital fund.

The council also approved paying for temporary traffic-signal services to John Thomas Incorporated (the company that owns the currently deployed equipment) so the existing signal can remain in place without interruption through October, when the streetscape work is scheduled to be substantially complete. Coutts explained that replacing the equipment mid-project would require new setup and sensor tuning and would likely produce short-term disruption.

Council members asked for context about the bid prices and the city’s budgeting process. “A year or two ago most of our bids were exceeding the budget,” Coutts said, adding that this season contractors appear to be more competitive and several projects have come in under budget. Alderman Novot said patterns vary by project and that prior large variances (such as for a bridge) showed the opposite effect.

Construction updates presented to the council say the water-main work is complete, temporary sidewalk saw-cutting has begun, tree removals and electrical work for future lighting will occur in coming weeks, and a road closure on Deerpath from just east of Oakwood to just west of Western was scheduled to begin the day after the meeting. Coutts said the Bank Lane restriping and coordination with adjacent construction has been scheduled so access and detours align with other neighborhood schedule constraints.

Council documents and Coutts’ presentation show the project design has been completed, IDOT has executed the construction agreement, and the project team and contractor have mobilized. Coutts said IT should be expected that IDOT invoices and paybacks can occur over multiple years and that the contingency will permit the city to pay invoices when they arrive.

The council action was taken as a single motion to approve: (A) temporary traffic-signal services agreement and authorization for the city manager to execute an agreement not to exceed $52,200; (B) a $150,000 contingency for invoices to IDOT; and (C) a $150,000 contingency and miscellaneous services for DeLand Construction LLC. The motion passed on a roll call vote of 8-0.

The project schedule provided to council members lists temporary field office hours for IDOT/consultant staff, two-week closures at Oakwood and Western later in the project to replace crosswalks, and a tentative Bank Lane enhancement start of June 9 with work running through Oct. 31. City staff said they will monitor detours and adjust if neighboring paving or private projects conflict with the planned route.

Council materials show the project’s original capital plan budget was $4.4 million, with $2,068,000 in ITEP grant funds and the remainder local funds. Staff told council that change orders for eligible items would also be eligible for the 80/20 split and could expand the federal participation if necessary.

The council’s vote authorizes the city manager to execute the agreements and to use contingency funds as described; the city will return unused contingency dollars to the capital fund.