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HomeMy WebLinkAbout03-304 Resolution No. 03-304 RESOLUTION AUTHORIZING EXECUTION OF A HOUSING AUTHORITY ELECTRICITY CONTRACT WITH THE HOUSING AUTHORITY OF ELGIN BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that David M. Dorgan, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a Housing Authority Electricity Contract on behalf of the City of Elgin with the Housing Authority of Elgin for the purchase of electricity for use by the city' s primary radio site, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: November 5, 2003 Adopted: November 5, 2003 Omnibus Vote : Yeas : 6 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk �. , Housing Authority Electricity Contract THIS AGREEMENT is hereby entered into this 15th day of September , 2003 , by and between the CITY OF ELGIN, ILLINOIS, a municipal corporation, (hereinafter referred to as "City") and the HOUSING AUTHORITY OF ELGIN, an Illinois municipal corporation, (hereinafter referred to as "Authority" ) . WHEREAS, Authority owns the property commonly known as 120 S . State Street, Elgin, Illinois (hereinafter referred to as "Property" ) ; and WHEREAS, City operates a radio site for its police operations, which radio site is located atop the structure located at Property, and which is the subject of an agreement between the parties hereto dated April 11, 1996 (hereinafter referred to as "Original Agreement" ) ; and WHEREAS, City' s radio site facilities located atop Property require electricity which is provided by Authority; and WHEREAS, Original Agreement provides that City shall use and maintain such facilities at City' s sole expense. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby mutually acknowledged, the parties hereto hereby agree to amend Original Agreement as follows : 1 . Authority shall supply all electricity to City' s radio site facilities located at Property as may be needed. 2 . City shall pay to Authority the sum of $100 . 00 per month for such electricity, which amount shall be the total amount due regardless of the amount of electricity actually used by City; provided, however, in the event the rate for electricity provided to Authority increases subsequent to the date of this agreement, and upon reasonable written documentation of such increase being provided to City by Authority, the monthly amount due to Authority from City for electricity as provided for herein shall increase by a percentage equal to the percentage increase of the rate of electricity to Authority provided to City. 3 . City shall pay the fee provided for herein to Authority on a quarterly basis, which payments shall be made on the first of January, April, July and October of each year during the term of this agreement . 4 . City may terminate this First Amendment Agreement for any reason upon thirty (30) days written notice to Authority without penalty. 5 . Any conflicts between the terms and provisions of the Original Agreement and this First Amendment Agreement shall be resolved in favor of the terms and provisions of this First Amendment Agreement . CITY OF ELGIN, ILLINOIS HOUSING AUTHORITY OF ELGIN, a municipal corporation a Municipal corporation By / G% -- By 4L Ayuk 'UV\a'k ity Manager 61e .(41 Attest : Attest : City Clerk Its Chu, 5 �5 F:\Legal Dept\Agreement\Housing Authority of Elgin-Electric.doc 8/7/03 • \�yOFEECi "L•c Q.—City of Elgin Agenda Item No. it E L 3 . . October 17, 2003 G I 1. TO: Mayor and Members of the City Council N FROM: David M. Dorgan, City Manager SAPS cczMmunirrr Deputy Chief James Burns SUBJECT: Contract for Purchase of Electricity from the Housing Authority of Elgin PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider entering into a contract with the Housing Authority of Elgin (HAE) for the purchase of electricity from the HAE for use by the City' s primary radio site. BACKGROUND In 1996, the City of Elgin negotiated an agreement with the Housing Authority of Elgin to place the City' s primary radio site on the roof of 120 S . State Street, an HAE building. Part of that agreement was a requirement that the Housing Authority provide electrical power to the site at the City' s expense. Through a series of misunderstandings, no agreement was ever completed for the purchase of this power and the Housing Authority has been supplying the power without a contract since 1996. Upon discovering the error, a contract has been negotiated and is presented here. The layout of the building makes it impractical for the City to run our own electric power to the roof. Preliminary estimates place that cost at over $15, 000 . The Housing Authority has also provided emergency backup power generation to the site by using their emergency generator already in place. The cost of duplicating the emergency power generation would be several thousand dollars. We also conducted a study of the other three radio sites and found that a monthly cost of $100 is well within the range found for metered electricity at the other sites. • Contract for purchase of electricity from the HAE eft October 17, 2003 Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED This agreement was negotiated in cooperation with the Executive Director of HAE, Sandra Freemen, and the HAE attorney. (iIIK,FINANCIAL IMPACT The annual cost of this agreement with HAE will total $1, 200 . There are sufficient funds available in the General Fund, Police Department budget, account number 010-2306-731 . 38-02 UTILITIES / ELECTRICITY CHARGES to enter into this agreement . WEGAL IMPACT None. ALTERNATIVES 1 . The Council may chose to enter into an agreement with HAE. 2 . The City may chose to install our own electric circuit to the roof of 120 S. State, Elgin. 3. The City may chose to re-locate the primary radio site to another location. RECOMMENDATION It is recommended that the City Council approve the proposed contract with HAE. Respectfully submitted for Council consideration. jjb Attachment