Based on current design plans, the cost estimate for this project is $10,000,000 with the grant paying 80% and City paying 205, estimated at $2,000,000.
The City received $8,000,000 in federal grant funds for this project. Use of the federal funds requires the City to adhere to Federal Highway Administration (FHWA) and IDOT requirements. One of those requirements calls for the City to wait to receive IDOT approval before starting final engineering work. The City may start the engineering prior to receipt of IDOT’s approval; however, all work done prior to IDOT’s approval must be funded 100% with City funds. The final engineering for this project is approximately $1,000,000. The grant provides approximately $800,000 for the final engineering. By starting before receiving IDOT approval the City may lose $800,000 in grant funding.
Since this is a federally funded project, the construction bid will be managed by IDOT, not the City. The bid opening is administered through IDOT’s Springfield Office. Usually, IDOT does select lowest responsible bid. The key word is responsible.
The grant fund is through the Federal Highway Administration (FHWA). Grant funds provided through the FHWA are intended to cover project costs related to highways to move traffic (e.g., pavement, curbs, storm sewers to drain the highway, bridges). Water mains are not considered essential in the movement of traffic and have not been eligible for grant funding through the FHWA.