CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance approving the payment of $135,669 to Costco Wholesale Corporation for upgrades to traffic signal improvements at the intersection of Ogden Avenue and Iroquois Avenue as part of the Costco Development
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DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: Jennifer Louden, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In September 2020, the City of Naperville and Costco Wholesale Corporation entered into an Owner’s Acknowledgment and Acceptance Agreement (OAA) related to the Costco development. The OAA requires certain traffic signal improvements at the intersection of Ogden Avenue and Iroquois Avenue as part of the overall development.
Because the traffic signal at Ogden Avenue and Iroquois Avenue is under the jurisdiction of the Illinois Department of Transportation (IDOT), all required signal improvements must be reviewed and permitted by IDOT.
At the time the OAA was executed, the extent of the modifications to the traffic signal had not yet been determined. As design work progressed, IDOT concluded that the existing traffic signal equipment must be fully replaced to implement the required improvements. In accordance with the OAA, Costco is solely responsible for all costs associated with the traffic signal improvements required by IDOT.
DISCUSSION:
The City’s Ogden Avenue Corridor Enhancement Initiative recommends the use of decorative traffic signal poles, mast arms, and illuminated street name signs at intersections along Ogden Avenue between Washington Street and Naper Boulevard. This design approach is consistent with the decorative traffic signal installations completed at Ogden Avenue and Columbia Street in 2018 and at Ogden Avenue and Naperville-Wheaton Road in 2026.
Because the traffic signal at Ogden Avenue and Iroquois Avenue must be completely replaced, staff recommends incorporating these decorative elements into the new signal design. This recommendation is consistent with City Council direction provided on March 4, 2025, when decorative signal poles and mast arms were approved as part of the IDOT-led traffic signal replacement project at the adjacent intersection of Ogden Avenue and Naperville-Wheaton Road.
As the decorative signal poles and mast arms exceed IDOT's standard requirements, Costco has requested that the City participate in funding the incremental cost difference between standard and decorative traffic signal infrastructure.
Costco solicited bids for the required traffic signal replacement work, excluding decorative enhancements, and received the following proposals:
|
Vendor Name |
Proposed Cost |
|
H&H Electric Company |
$438,837.41 |
|
Home Towne Electric, Inc. |
$522,049.20 |
|
Thorne Electric, Inc. |
$615,885.35 |
Based on the bids received, Costco selected H&H Electric Company as the lowest responsive bidder.
Following contractor selection, Costco obtained pricing for the decorative signal poles, mast arms, and related enhancements requested by the City. The additional cost associated with these decorative elements is $135,669, which exceeds the original budget estimate of $50,000 by $85,669. These additional costs are in line with the bids received for the Ogden Avenue and Naperville-Wheaton Road traffic signal improvements.
The attached ordinance authorizes payment to Costco in an amount not to exceed $135,699, with authority granted to the City Manager to approve additional amounts for contingencies not to exceed 5%.
FISCAL IMPACT:
CIP #: TC224
Upgrades to the traffic signal improvements will be expensed to the Infrastructure account listed below as a part of capital improvement project TC224 - Ogden Avenue and Iroquois Avenue Traffic Signal. The 2026 budget includes $50,000 for construction costs. The recommended contribution of $135,669 to fund the additional decorative elements exceeds the amount budgeted by $85,669. That additional amount can be accommodated through underspending on capital projects that have been delayed or deferred in 2026.
|
Account Number |
Fund Description |
Total Budget Amount |
|
30282200-551502 |
Capital Projects Fund |
$24,899,000 |