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HomeMy WebLinkAbout04-135 Resolution No. 04-135 RESOLUTION AUTHORIZING EXECUTION OF AN AMENDMENT TO DEVELOPMENT AGREEMENT WITH SCHLEIFRING MEDICAL SYSTEM LLC FOR THE DEVELOPMENT OF 1420 CRISPIN DRIVE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Ed Schock,Mayor, and Dolonna Mecum, City Clerk,be and are hereby authorized and directed to execute an Amendment to Development Agreement on behalf of the City of Elgin with Schleifring Medical System LLC for the development of a slip ring production facility at the property located at 1420 Crispin Drive, a copy of which is attached hereto and made a part hereof by reference. sI Ed Schock Ed Schock, Mayor Presented: May 26, 2004 Adopted: May 26, 2004 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk MINIM MAR-16-04 TUE 05:42 PM CITY MGRS OFFICE FAX NO. 8479315610 P. 02 AMENDMENT TO DEVELOPMENT AGREEMENT This Amendment to Development Agreement made and entered into this �7s4day of - 111/1/ , 2004, by and between the CITY OF ELGIN, an Illinois municipal corporation, (hereinafter referred to as the "City") and SCHLEIFRING MEDICAL SYSTEM LLC, a Delaware limited liability company, registered to do business in Illinois (hereinafter referred to as "Developer") . WITNESSETH WHEREAS, the City and Developer have previously entered into a Development Agreement dated ^_f 1),;,i ' /37-, 2001, relating to Developer ' s development and business operations at the property commonly known as 1420 Crispin Drive, Elgin, Illinois (hereinafter referred to as the "Subject Development Agreement") and WHEREAS, Developer has requested and the City has agreed to enter into an Amendment to the Subject Development Agreement relating to the number of jobs to be created by the Developer at the Subject Development and relating to the amount of the City's development assistance to the Developer regarding the creation and establishment of jobs at the Subject Development . NOW, THEREFORE, for and in consideration of good and valuable consideration, and in consideration of the mutual undertaking as provided for in the Subject Development Agreement, the parties hereto agree as follows: 11111111 MAR-16-04 TUE 05:42 PM CITY MGRS OFFICE FAX NO. 8479315610 P. 03 1. That the Subject Development Agreement between the City and the Developer is hereby amended as follows : A. Paragraph 3 of the Subject Development Agreement is hereby amended to read as follows: "3 . That within two (2) years of the occupancy of the Subject Development on the Subject Property the Developer shall create not less than 20 new full-time jobs at the Subject Development . Within five (5) years; of Developer's occupancy of the Subject Development, Developer projects not less than 45 new full-time jobs at the Subject Development. Developer shall use its best efforts to hire Elgin residents for all such jobs. It is anticipated that the breakdown of the types of jobs that Developer will provide at the Subject Development is as follows: (1) electro/mechanical assembly workers, PU casting specialists, Quality Inspectors, Shipping and Receiving/Material Handlers••-Salary Ranges depending upon experience $25, 000-$35, 000 annually; (2) Milling and Lathing Machinists--Salary Range $36, 000-$40, 000 annually; (3) Administrative Support--salary Range $30, 000-$34, 000; (4) Operational/Financial Supervisors and Managers--Salary Range depending upon experience and responsibility $50, 000-$1'0, 000 annually. " B. Paragraph 4)3 of the Subject Development Agreement is hereby amended to read as follows: MAR-16-04 TUE 05:43 PM CITY MGRS OFFICE FAX NO. 8479315610 P. 04 "B. In the event of and upon Developer' s completion, occupancy of and commencing operations of the Subject Development at the Subject Property on or before July 1, 2001, and in the event of Developer creating and establishing not less than 20 new full time jobs at the Subject Development on or before July 1, 2003, as required in the preceding Paragraph 3 hereof, the City shall pay to the Developer the total sum of $20, 000 to be used by the Developer towards the costs of the Subject Development. The City shall pay such total amount of $20, 000 to the Developer upon the creation and establishment by Developer of such 20 new full time jobs at the Subject Development , The total payments by the City to the Developer for the creation of new full time jobs at the Subject Development shall not to exceed $20, 000 . Prior to payment by the City, Developer shall submit its employment records to the City and shall identify therein each of the new full time jobs that the Subject Development created and established by the Developer as required in the preceding Paragraph 3 hereof . " 2 . That except as expressly amended by this Amendment to Development Agreement the Subject Development Agreement between the City and the Developer shall remain in effect. 3 • MAR-16-04 TUE 05:43 PM CITY MGRS OFFICE FAX NO. 8479315610 P. 05 3 . That in the event of any conflict between the terms of the Subject Development Agreement and the terms of this Amendment to Development Agreement the terms of this Amendment to Development Agreement shall supercede and control. . IN WITNESS WHEREOF, the parties have entered into and executed this Amendment to Development Agreement on the date and year first written above, CITY OF ELGIN, a municipal SCI-II,EIFRING MEDICAL SYSTEM LLC, corporation a Delaware limited lia ility company Fey <�I BY �17w�-- -1 �/ fa Sc iock, Mayor 'Title Jvc:.,r� rejn✓. 1 -e Attest : Gev e�P4L mA,•�A Dolonna Mecum, ity Clerk F:\Lcca1 Dept\Aercemrnt.\Development qgr-Schleifring Medical-AmendMOnt.doc 4 a ,,,c,(OF E</ 00 `�y Agenda Item No. \ �,,1 City of ElginIF g �ariofE�� ii E , 0A1 May 7, 2004 ` � q �� N �E My: ��0,1 ilia TO: Mayor and Members of the City Council 11 FINANCIALLY STABLE CITYGOVEFNMENT EFFICIENT SERVICES, FROM: David M. Dorgan, City Manager / f AND OUALITY INFRASTRUCTURE John M. Loete, Public Works Director SUBJECT: Engineering Services for Inspection of Interceptor Sewers in the Far West PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider the approval of proposals for engineering services relative to the inspection of interceptor sewer construction. RECOMMENDATION It is recommended that the City Council authorize the staff to enter into agreements with four consulting firms to provide inspection services for the construction of interceptor sewers. BACKGROUND In April, 2002, the City adopted a Sanitary Sewer Master Plan for service to the areas west of Randall Road. This plan was developed as a tool to guide the development community in designing and constructing the sanitary interceptor sewers necessary to serve that area. In 2003, the City entered into annexation agreements with Kimball Hill, Town and Country, and Pulte relative to proposed developments in the Far West. A condition of the agreements required the three companies to participate in a venture agreement to jointly construct and fund the sanitary interceptor sewer to serve their respective developments. Both the annexation agreements and the venture agreement include a City policy for the construction and inspection of the interceptor sewers. A copy of the policy is attached. The policy outlines many items such as easements, materials, future connections, construction administration and permitting. The Fox River Water Reclamation District (FRWRD) has jurisdiction over the construction of sanitary sewers within the district which, of course, includes the City of Elgin. Their procedures require the builder, whether a public agency or a private developer,to retain a consultant to do full time inspection of the sewer construction process. The inspection firm must insure that the sewers constructed comply with all Illinois Environmental Protection Agency and FRWRD rules and regulations. • Interceptor Sewer Inspection May 7, 2004 Page 2 In addition to FRWRD's requirements, the City typically provides part time inspection of sewer construction with in-house staff. The attached policy recognizes the uniqueness of the venture agreement for the interceptor construction and provides for the combining of the District's required inspection with the City inspection. By sharing the efforts of the one inspection firm, there is no additional cost to the developer and the City has a larger margin of protection via full time rather than part time inspection. Typically a developer is allowed to select a consulting firm from FRWRD's approved list to provide the full time inspection that they require. In this case, all parties agreed to utilize an approach similar to the City efforts relative to engineering services for storm water control. That is, four firms were solicited to submit proposals for engineering services relative to interceptor sewer construction including Baxter and Woodman (B&W), Professional Services Industries (PSI), Scheflow Engineers (SE), and Stanley Consultants, Inc. (SCI). These firms have worked for and are approved by both the Fox River Water Reclamation District and the City. As a developer's plans for the construction of an interceptor sewer are approved and permitted by the City, FRWRD and the IEPA, the City Engineer will select one of the four firms to provide the required inspections. Once a firm has been selected for a project, that firm will go to the bottom of the list and the next interceptor sewer inspection will go to the next firm on the list. If there is a notable benefit to the City for having the same firm inspect adjacent segments of the interceptor sewer, the City Engineer may deviate from this system. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED FRWRD V", FINANCIAL IMPACT With each developer's plan approval a cash deposit equal to 2% of the design engineer's estimate of the total project cost must be submitted to the City and will be held in escrow. As the engineer invoices the City, the escrowed funds will be drawn down to pay the invoice. Staff will invoice the developer for the same amount, thereby maintaining the deposit at 2%. Upon the completion of the interceptor sewers the deposit will be returned to the developer. 1\14pvLEGAL IMPACT None rbk Interceptor Sewer Inspection May 7, 2004 Page 3 ALTERNATIVES 1. Accept proposals from the four firms. 2. Seek proposals from additional firms before establishing a list of firms to be used. Respectfully submitted for Council consideration. (do) Attachment • elimh EXHIBIT I Far West Interceptor Sewers Policy for Inspections and Construction April 30,2003 This policy has been developed by the City of Elgin's Engineering Division in cooperation with Fox River Water Reclamation District (FRWRD) to address the atypical nature of the construction of interceptor sewers by the development community.. This policy applies to any interceptor sanitary sewer to be constructed by a developer. Typically, the City or FRWRD will construct the large diameter sewers known as interceptor sewers whereas the development community will construct the smaller or lateral type sewers. Because of the importance of the interceptors,the City and the District have modified the standard operating procedures utilized for the smaller or lateral type sewers thereby resulting in this policy. For the purpose of this policy, an interceptor sewer shall be defined as the sanitary sewer system depicted in the April 2002 Baxter arid Woodman study or any other sewer so defined by the City of Elgin's Engineer. Sewer services will not be allowed on interceptor sewers. 1. Plan review. a. The City's Engineering Division will attempt to coordinate and share review comments with the Fox River Water Reclamation District in order to provide the developer a consistent'position relative to plans. b. Permit sign off by the City will occur after i. the developer's engineer has secured a permit or no permit required from all agencies other than the City and FRWRD (Army Corp,IDNR,Illinois Nature Preserve,US Fish and Wildlife, etc.). ii. the plans have been approved by the City's Engineering Division and FRWRD. iii. the developer has agreed to set up an escrow account with the City to fund the full time inspection as required under FRWRD's regulations. See Construction Administration c. If proposed plan affects the service area (changes in route, size, depth, etc.) as depicted in the Sewer Study, developer shall pay the City to have the alternative reviewed by Baxter and Woodman. d. The location of interceptor sewers shall be carefully considered in terms of futuxe'maintenance. Sewers located near stoimwater facilities must be (.."‘ accessible (via excavation) during normal conditions. Sewers located within the limits of stormwater facilities must be placed in casings and designated pit locations reserved. T-1 • f g e. The City is concerned with the proposed placement of wateimain in the proximity of the interceptor sewers and how trench settlement (from the sewer) will impact the watermain. The developer will need to prove that settlement will not impact the watermain. f. The developer and his engineer MUST include planning for future connections (provide areas to be served and locations of connects). 2. Materials a. Pipes up to 21" in diameter shall be PVC SDR 26. b. Pipe sizes 24" to 48" shall be one of the following: 1. , Reinforced Concrete Cylinder Pipe (RCCP) Ductile Iron(DI)_with polyethylene lining iii. Ductile Iron(DI)with a fused calcium aluminate mortar lining iv. Prestressed Concrete Pressure Pipe (PCPP) v. Reinforce Concrete Pipe (RCP),Class V with steel end rings vi. Centrifugally Cast Fiberglass Pipe (CCFRP) (elk' c. Manholes: i. No drop connections on interceptor sewer manholes. Extend line out to a secondary manhole and drop may be placed on it. NO interior drop connections. ii. No buried manholes. Mound up around structure if necessary. iii. Spacing of manholes will be in accordance with: 1. IF pipe size is 21" or less THEN IEPA requirements shall be followed. 2. IF pipe size is 24" or higher THEN the maximum spacing shall be 800 lineal feet. 3. Spacing may be extended ONLY if it is in the best interest of the City to do so. 3. Construction Administration a. The City will contract with at least two engineering firms meeting the approval of both the City and FRWRD to provide the construction inspection required by FRWRD and to protect the interest of the City, the owner of the completed interceptor sewer. The fees paid to the (rib. engineering firm will be based upon that firms hourly rate of engineer plus expenses. (elk b. All other administration responsibilities will be the responsibility of the developer and his engineer (Bidding, cost estimates and payouts, construction administration and over site,, project control, recapture agreements and the costs to be included, as constructed drawings (electronic and hard copy), collection of waivers, etc.). c. Developer shall reimburse the City for all costs of such construction inspection. In the event the escrow account for such costs provided for in Section I(b)(i)(v) hereof is insufficient to cover such costs, Developer agrees to pay to the City the additional funds for the costs of construction inspection. 4. Easements No construction on an interceptor sewer shall be initiated or take place until the city has received all necessary and required easements for the interceptor sewer. 5. Interceptors to be Owned by the City of Elgin Upon the completion of an interceptor sewer and upon passing inspection by FRWRD and acceptance by the City the Developer shall convey or cause to be conveyed to the City of Elgin and at no cost to thoe City all right, title and interest to the interceptor sewer and the City of Elgin shall be deemed the owner of such interceptor. 6. Sanitary Sewer Lateral Extensions The City agrees that upon the request of the Developer to execute the sanitary sewer lateral and/or main extension IEPA permits after the city has executed the IEPA permits for the interceptor but before the interceptor sewer construction is complete, provided that the lateral and/or main extension plans and specifications are consistent with all required ordinances and other requirements of law. In such event Developer will be proceeding with the planning, design and construction of any lateral and/or main extension from the interceptor sewer at its own risk The Developer further agrees that it can only obtain building permits for residential units at its development for its model homes until such time as the interceptor sewer is substantially completed.