Urbana seeks $1.25 million in state motor-fuel-tax funds to finish Florida Avenue design

John Zeman of Public Works briefed the committee on the Florida Avenue corridor project (1.3 miles from Right Street to Hillcrest) and asked the council to approve Resolution 2026‑01‑003R to appropriate $1,250,000 in supplemental state Motor Fuel Tax (MFT) funds to cover additional engineering, land-acquisition and contingency costs. Zeman said the city had used a 10% engineering assumption for the original RAISE grant materials but now expects engineering and associated services to run closer to 20% of construction, and the supplemental MFT appropriation corrects that earlier underestimation.

Zeman said the city has a $9,950,000 RAISE grant awarded for construction and is negotiating to increase the federal share of design costs through Kuats (regional surface-transportation allocations). He explained that the city plans to front MFT funds and seek reimbursement from federal grants once grant agreements are executed: "we're going to be planning to approach Kuats ... to amend our federal grant ... to increase our federal share proportionately," and that reimbursement timing typically aligns with milestone obligations.

Council members asked about how the RAISE grant treats planning and construction costs, whether there is a local match, supplanting risks when using MFT as an interim fund source, and the size and timing of cost contingencies. Zeman and staff explained that RAISE covers construction (no local match), preliminary engineering is covered by a surface-transportation grant (80% federal/20% local match through Kuats), MFT receipts are disbursed throughout the year, and the additional 10% MFT contingency in the resolution aligns with state appropriations practice.

A motion to place Resolution 2026‑01‑003R on the consent agenda was moved and seconded and carried by voice vote; the council did not take a final appropriation vote at this meeting but forwarded the resolution for council consideration.