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HomeMy WebLinkAbout07-310 Resolution No. 07-310 RESOLUTION AUTHORIZING EXECUTION OF A REIMBURSEMENT AGREEMENT WITH KINNEY ELECTRIC BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Diane Robertson,City Clerk,be and are hereby authorized and directed to execute a reimbursement agreement on behalf of the City of Elgin with Kinney Electric for storm sewer improvements at 573 North Crystal Street, Elgin, Illinois, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: December 19, 2007 Adopted: December 19, 2007 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF ELGIN AND KINNEY ELECTRIC (Storm Sewer Construction —Pine Street) THIS AGREEMENT, is made and entered into this day of CQ m 61C, 2007, by and between THE CITY OF ELGIN, an Illinois municipal corporation (the "City," herein), and KINNEY ELECTRIC, an Illinois Corporation, (the "Owner,"herein). WITNESSETH: WHEREAS, the Owner is the owner of certain real estate legally described on Exhibit A, attached hereto and made a part hereof by this reference, and commonly known as 573 North Crystal Street, Elgin, Illinois (the "Subject Property,"herein); and WHEREAS, the Subject Property and the building located thereon were previously owned by the City, and were sold to the Owner in July 2005; and, WHEREAS, the Owner is planning to construct a 20,000 square foot building expansion to the 11,000 square foot building currently existing on the Subject Property; and, WHEREAS, to accommodate the building expansion, the Owner will be required to tie-in to and reconstruct a portion of the storm sewer located along the north side of Pine Street, and further will be required to lower the profile of Pine Street to allow for vehicle access; and, WHEREAS, because the Owner is required to perform the above-described work to the storm sewer on Pine Street to accommodate the building expansion, the City has requested that the Owner also reconstruct the entire length of storm sewer improvements along Pine Street from Crystal Street to Bird Street (the "Storm Sewer Improvements," herein); and, WHEREAS, because the City will be making certain street improvements in the immediate area, the City has agreed to make the necessary adjustments to Pine Street to accommodate the building expansion, and to pave that portion of Pine Street between Crystal Street and Bird Street (the "Street Improvements,"herein); and, WHEREAS, the cost of the additional Storm Sewer Improvements, estimated at approximately $65,505.00, will exceed the cost of the Street Improvements necessary for the Owner's building expansion project, estimated at approximately $6,643.00, by approximately $58,862.00; and, WHEREAS, the City and the Owner have agreed that the Owner will perform the above- described Storm Sewer Improvements at the Owner's expense, and that the City will perform the above-described Street Improvements at the City's expense; and, 1 WHEREAS, the City and the Owner have further agreed that the City will reimburse the Owner in the amount of$58,862.00, said amount being the difference between the estimated cost of the additional Storm Sewer Improvements performed by the Owner and the additional Street Improvements performed by the City (the Storm Sewer Improvement and the Street Improvements are collectively referred to as the "Public Improvements,"herein); and, NOW, THEREFORE, for and in consideration of the mutual promises, agreements, and undertakings as set forth herein and for other good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, the City and the Owner hereby agree as follows: 1. Incorporation of Recitals. The recitals set forth above are incorporated herein as if fully set forth herein. 2. Public Improvements to be Constructed by the City and the Owner. The City and the Owner shall construct the Public Improvements provided for in this Agreement in conformance with all applicable City ordinances and other requirements of law. The parties agree that the Owner shall complete the Storm Sewer Improvements on or before October 18, 2007 and that the City shall complete the Street Improvements on or before May 31, 2008. 3. Acceptance of Public Improvements. The Storm Sewer Improvements shall be subject to acceptance of the improvements by the City. Upon review and recommendation by the City Engineer, the City Council shall accept the Storm Sewer Improvements lying within the public right-of-way or public easements on the Subject Property. Owner shall replace or repair any damage to public improvements installed within, under or upon the Subject Property resulting from construction activities by Owner and its employees, agents, contractors and subcontractors prior to final acceptance by the City, but shall not be deemed hereby to have released any such other part from liability or obligations in this regard. Acceptance of the Storm Sewer Improvements by the City shall be consistent with applicable City ordinances. 4. Completion of the Work. Upon completion of the Storm Sewer Improvements, and upon final inspection and written approval by the City and such other final inspections and approvals as may be required by law, the Owner shall submit to the City: (1) an executed, notarized itemized contractor statement reflecting the total cost of the Storm Sewer Improvements and each portion thereof, including, but not limited to, the cost of labor (whether provided by any contractor or subcontractor), materials and equipment; (2) copies of all bids, contracts and invoices submitted, executed or incurred pursuant to the Storm Sewer Improvements; and (3) reasonable proof of payment of all costs incurred pursuant to the Storm Sewer Improvements. The City shall be entitled to withhold payment to the Owner pending the submission of partial or full waivers of lien, and/or certifications, verifying the receipt of payment for all work performed by all contractors and/or subcontractors up to the date of the Owner's application for payment, in the City's sole discretion. The City shall further be entitled to make such payments directly to any contractor and/or subcontractor as may be necessary to obtain such lien waivers and/or certifications. In the event the City makes any such payments directly to the contractor and/or subcontractors, the amount of such payments shall be deducted from the total amount due to the Owner pursuant to this Agreement and said contractor shall provide a written release to the City in the amount of any such payments. 2 5. Reimbursement to Owner. The parties agree that the Owner will incur excess costs in the amount of approximately $58,862.00 as a result of the construction of the Storm Sewer Improvements. Upon completion of the Public Improvements and the Owner's compliance with Section 4 herein, the City shall make payment to the Owner based upon the actual excess costs actually incurred by Owner. In no event shall such amount paid by the City to the Owner exceed $58,862.00 without prior written authorization by the City. 6. Construction on City Right of Way and Easements. A. Grant of License. To the extent that construction of the Storm Sewer Improvements will occur on right-of-way and/or easements owned or maintained by the City, the City hereby grants to the Owner, his employees, contractors and subcontractors working on such construction a license to enter upon and use said right-of-way and easements for the purposes set forth in this Agreement. B. Duty to Restore Right-of-Way and Easements. Upon completion of the Storm Sewer Improvements, the Owner or Owner's contractor shall promptly restore the City's easements to as good a condition as existed immediately prior to the commencement of the work. 7. Termination. In the event the Owner fails to complete the Work in accordance with the terms of this Agreement, or otherwise breaches the terms of this Agreement, the City may terminate this Agreement upon written notice of breach and termination to the Owner, and any and all financial or other obligations on the part of the City shall cease and become null and void. Additionally, the Owner shall refund to the City, all money paid to the Owner by the City pursuant to this agreement upon thirty (30) days written demand. This provision shall not constitute a restriction on the City to pursue any and all other rights to which it may be entitled by law. 8. Insurance. The Owner, and any contractors and subcontractors engaged by the Owner to construct the Storm Sewer Improvements, shall identify the City and any of the City's assigns and successors, as an additional insured with respect to any claims arising from the Storm Sewer Improvements. The Owner shall provide the City with a Certificate of Insurance naming the City as an additional insured with respect to any such policies of insurance. 9. Mutual Cooperation. The parties hereby covenant and agree that they shall at all times after execution of this Agreement do, execute, acknowledge, and deliver and will cause to be done, executed, acknowledged, and delivered all such further acts, documents, and instruments as may be reasonably required in order to carry out fully and effectuate the purposes and acts contemplated in this Agreement. 3 10. Indemnification. To the fullest extent permitted by law, the Owner agrees to and shall indemnify, defend and hold harmless the City, its officers, employees, boards and commissions from and against any and all claims, suits,judgments, costs, attorneys' fees, damages or other relief or liability arising out of or resulting from or through, or alleged to arise out of any acts or acts of negligent or omissions of the Owner, the Owner's officers, employees, agents or contractors or subcontractors in the performance of this agreement or arising out of or in connection with litigation based on any mechanics' lien or other claims suit, judgments and/or demands for damages by contractors and/or subcontractors. In the event of any action against the City its officers, employees, agents, boards or commissions covered by the foregoing duty to indemnify, defend and gold harmless, such action shall be defended by legal counsel of the City's choosing. In the event and to the extent that any legal work is performed by the City's in-house legal counsel pursuant to the provisions of this section, the City shall be reimbursed by the Owner for such legal work at the rate of$200 per hour, which rate the Owner hereby agrees and acknowledges to be a reasonable rate for such in-house attorneys' fees. The provisions of this section shall survive any expiration and/or termination of this agreement. 11. No Partnership or Joint Venture. This Agreement shall not be construed to create a partnership,joint venture or employment relationship between the parties hereto. No entity and/or person shall have any rights or obligations created by this agreement and specifically no entity and/or person shall be in any way construed to be a third party beneficiary under this agreement. 12. Venue. This Agreement shall be subject to and governed by the laws of the State of Illinois. The parties hereto hereby agree that venue for any and all actions which may be brought by each and either of them to enforce the provisions of this Agreement shall be in the Circuit Court of Kane County, Illinois. 13. Severability. The terms of this Agreement shall be severable. In the event that any of the terms or provisions of this Agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this Agreement shall remain in full force and effect. 14. Entire Agreement. This Agreement represents the entire agreement between the parties hereto and shall not be modified or affected by any offer, proposal, statement, or representation, oral or written, made by or for either party in connection with the negotiation of the terms hereof. No future modification, termination, or amendment of this Agreement may be made, except by written agreement executed by the parties hereto. No failure by the parties hereto to insist upon the strict performance of any covenant, duty, agreement, or condition of this Agreement or to exercise any right or remedy upon a breach thereof shall constitute a waiver of any such right or remedy or any other covenant, agreement, term or condition. 15. Time of the Essence. Time shall be of the essence of this Agreement and the performance of all covenants, agreements, and obligations hereunder. 4 16. Notices. All notices and other communications to be given hereunder by any party, shall be in writing and sent by personal delivery, overnight courier with evidence of receipt, or certified or registered mail, return receipt requested, postage prepaid, addressed: If to the City: City of Elgin 150 Dexter Court Elgin, Illinois 60120 Attention: City Clerk with a copy to: City of Elgin 150 Dexter Court Elgin, Illinois 60120 Attention: Corporation Counsel If to the Owner: Mr. Lowell Naber Kinney Electric Inc. 678 Buckeye Street Elgin, Illinois 60123 or at such other addresses as the parties may designate to the other by written notice in the manner provided herein. Any such notices or elections shall be effective upon delivery, if personally delivered, one (1) day after delivery by the overnight courier or two (2) days after depositing the same in the United States mail. 17. Compliance with Laws. Notwithstanding any other provision of this Agreement it is expressly agreed and understood that in connection with the performance of this Agreement that the Owner shall comply with all applicable federal, state, City and other requirements of law, including, but not limited to, any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees. The Owner shall also at its expense secure all permits and licenses, pay all charges and fees and give all notices necessary and incident to the due and lawful prosecution of the work, and/or the products and/or services to be provided for in this Agreement. [SIGNATURES APPEAR ON THE NEXT PAGE] 5 IN WITNESS WHEREOF, the parties have executed this Agreement the date and year first above written. THE CITY OF ELGIN, an Illinois municipal corporation, By: -,_R' \, --- City Manage ATTEST: City Clerk OWNER: KINNEY ELECTRIC, an Illinois Corporation, g #01°6e(i&/ _dft owell Naber Its: President & CEO 6 EXHIBIT A LEGAL DESCRIPTION FOR 573 N. CRYSTAL AVENUE ELGIN, ILLINOIS Parcel One : Lots 1 and 2 (except the East 3 Feet of Lot 2) in Block V (Five) of Summit Addition to Elgin, being a subdivision of part of the Southwest Quarter of Section 11 , Township 41 North, Range 8 East of the Third Principal Meridian, in the City of Elgin, Kane County, Illinois . Parcel Two : Lots 1, 2 and the West 48 feet of Lot 3 in Block III (Three) of Becklingers Addition to Elgin, being a subdivision of part of the Southwest Quarter of Section 11 , Township 41 North, Range 8 East of the Third Principal Meridian, in the City of Elgin, Kane County, Illinois . • dAp NORTHWEST J September 21, 2007 NL J TO: Mayor and Members of the City Council • FROM: Olufemi Folarin, City Manager David L. Lawry, General Services Group Director Raymond H. Moller, Director of Economic Development SUBJECT: Storm Sewer Expense Reimbursement to Kinney Electric PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information related to the cost of storm sewer construction expense incurred by Kinney Electric related to the building expansion being constructed at 573 North Crystal. This information is necessary in order to enter into an expense sharing agreement related to the city's share of the storm sewer construction costs. RECOMMENDATION It is recommended that the City Council authorize staff to enter into an agreement with Kinney Electric in the amount of $58,862 to cover the city's share of the storm sewer work built by Kinney Electric's contractor. BACKGROUND The property at 573 North Crystal that is undergoing the building expansion was previously owned by the City of Elgin. It served as the city's vehicle maintenance facility. The property was sold to Kinney Electric in July of 2005. Kinney Electric is constructing a 20,000 square foot building expansion on the existing 11,000 square foot building. A section of the improvement will result in the creation of a basement area to the east of the main building area. The basement area will have access from Pine Street. Due to the construction of the basement access area, the city is requiring that the storm sewer that runs along the north side of Pine Street be reconstructed. In addition, the profile of Pine Street must be lowered slightly to allow for vehicle access to the building basement. Due to the fact that Kinney Electric needs to tie into the storm sewer on Pine Street and will have the necessary contractor at the site, city staff has requested that the property owner construct the entire length of storm sewer improvements from Crystal Street to Bird Street. Because the city is Storm Sewer Expense Reimbursement to Kinney Electric September 21, 2007 Page 2 making certain street improvements in the immediate area, the city contractor will make the necessary adjustments to Pine Street and then pave the street sections between Crystal Street and Bird Street. The cost of the storm sewer construction will exceed the cost of the road work for the Kinney Electric project. Thus, the city would reimburse Kinney Electric for the net cost of the storm sewer construction services provided by their contractor. This amount is estimated to be $58,862. KINNEY ELECTRIC EXPENSES Storm Sewer $44,995 Curbs 17,510 Engineering 3,000 Sub Total $65,505 Paving (6,643) Net Reimbursement $58,862 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT The net cost of the proposed assistance package is $58,862. Please encumber funds for Kinney Electric storm sewer, there are sufficient funds budgeted ($314,010) and available ($86,808) in the Riverboat Fund, account number 276-0000-791.80-27 project 039698, Economic Development Incentives to cover the cost of this project. Following approval of this proposed assistance package, $27,946 will be available for funding other projects requiring economic development incentives. LEGAL IMPACT A cost sharing agreement between the City of Elgin and Kinney Electric will need to be entered into. Storm Sewer Expense Reimbursement to Kinney Electric September 21, 2007 Page 3 ALTERNATIVES 1. The City Council may choose to enter into an agreement with Kinney Electric Company for sharing expenses related to curb, storm sewer and street repair on Pine Street. 2. The City Council may choose not to enter into the agreement with Kinney Electric. Respectfully submitted for Council consideration. RHM/jr attachments y . Stet. 6. 2007 7: 57AM ABITUA MECHANICAL INC No. 1886 P. 1 Abitua Plumbing, Inc. P.O. Box 833 Huntley, IL 60142-0833 (847)669-5001 Fax (847)6695010 September 6, 2007 Kinney Electric Phone - 847-742-9600 573 Crystal Ave Fax - 847-742-9601 Elgin, IL 60123 Attn: Lowe Nabor PLUMBING PROPOSAL Re: Kinney Electric - Pine Street - Underground We hearby submit specifications and estimates for the following: 5 - 4" Catch Basin's 2 - 4" Manholes 2 - 2" Inlets 390LF- 12" RCP 3 - Remove Structures 150LF - Saw cutting pavement 267LF - Trench backfill TOTAL: $4.4,995.00 Items not included: Permit, Bonds, fees or permit drawings. TV of Sewer Restoration, Concrete Et paving Terms of payment are: Monthly invoices will be submitted for progress payments and are due by the 10th of the following month. All balances due will be paid on completion of the above work. AU outstanding balances will be subjected to 1 1/2% per month service charge; this contract price is good for 30 days. IN THE EVENT OF DEFAULT BY NON-PAYMENT OF OVERDUE ACCOUNT, OWNER/BUYER/AGENT AGREES TO BE LIABLE FOR ALL COLLECTION CHARGES AND ATTORNEY'S FEES. ABITUA PLUMBING, INC. RESERVES THE RIGHT TO TERMINATE CONTRACT FOR LACK OF PAYMENT. Accepted By: Abitua Plumbing, Inc. Title: Date: Frank P.Abitua 'Upon acceptance, please forward one signed original to our office. 09/07/2020 10:41 FAX 8477414590 R A ABBOTT EXCAVATING X1001 R.A.ABBOTT EXCAVATING,INC_ 11N198 Russell Road Elgin,1160124 847-741-3369 630-669-5660(cell) 847-741-4590 (fax) September 7,2007 Kinney Electric PROPOSAL Re: Pine Street Curb work 1. B-curb from Crystal to"end of work" at Bird Street(north side) $5,300.00 2.B-curb from"end of work" at Bird Street to structure(north side) $2,800.00 3. B-curb from Crystal to "end of work" at Bird Street(south side) $5,130.00 • Excavation 1. Remove existing curb $ 600.00 2. Cut road to grade 8 hours 953 loader $1,200.00 16 hours 6-wheel dump $1,280.00 3_Backfill curb 8 hours T-250 $1,200.00 FRI/SEP/07/2007 01 :59 PM Kinney Electrical FAX No. 847 742 9601 P, 002 y PROJECT: Proposed Storm Sewer NJT PROJECT#: 07-5384 DA'Ib: 9-7-07 Pine Street Elgin, IL. 60120 IIWOICE: Mr. Lowell Naber Timber Creek Properties 678 Buckeye Street Elgin, IL. 60123 Phone: (847) 7429600 Fax: (847) 742-9601 In accordance with the Owner-Engineer Agreement there is $3,000 due at this time for Civil Engineering services and reimbursable items in the above Project:(Prop4;ged storm Sewer) This invc4ce is for Civil Engineering Services: - Installation of New Storm Sewer on Pine Street in E1gin,.XL. ($3,000) Billable Amount due at thistime $3,000 Thank You. Send Payment to: Norman J.Toberwan& Associates 2340 S. Arlington Hts.,Road, Suite 620 Arlington Heights,IL 60005 Phone: (S47)439-8225 Fax: (847)439-8221 E-mail: mail(atobernnun.us Webalte: www.toberman.us NOTE: Please pay this amount within 30 days of a receipt to avoid additional charges. • Z '°l t 22866bLbB 00ssE, uew-Iagol •c ueu oij Wdd� :z i GOOZ LO daS , ' .. :•�.u.+.d. - - ... .. .. LL n..v...Y-"a...... .... w..✓..µ an....rw u.xmu.w.✓ixx... xlw�Yir.i..xu.r.o.w... ... {Zvi, Kinne Electric �..�. �.. .. , _.. _� Pa+e 7 • From: David Lawry To: Moller, Ray Date: 8/30/2007 8:24 am Subject: Kinney Electric CC: Evers, Joe; Folarin, Femi; gmiller@hlreng.com... Ray, Attached is the cost estimate to add Pine Street to the MFT paving contract. Pine Street east of Crystal had been omitted because Lowell was going to pave the street. We now know that Lowell's work will only affect 150 feet of the 350 foot section of Pine Street. His cost back to us (if we do the paving) is 150/350x$15,500 or$6,643. Lowell had indicated to John Loete that the storm sewer work,that we agreed to reimburse him for, is $45,000. We have not seen or reviewed any bids for this work to confirm the $45,000. Lowell asked John who was going to approve the storm sewer work so that he could get started. In Joe's last conversation with Lowell, Lowell indicated that he was working on the agreement with you and Femi. We will not give approval to start the storm sewer until an agreement is approved or until Femi indicates it is alright to proceed until the agreement is finalized. Based on my understanding of the work, we will reimburse Lowell for the audited costs to do the storm sewer less the$6,643 for the paving of Pine, if Lowell wishes the City to complete his section. Lowell stated to John that his storm sewer work will take two weeks. If he wants to take advantage of the MFT paving work, his storm sewer and concrete work needs to be completed within two weeks. Please let us know how we are to proceed. Dave Lawry Chicago Metro Chapter APWA President David L. Lawry, P.E. General Services Manager City of Elgin 150 Dexter Court Elgin, IL 60120 (w) 847-931-5961 (f) 847-931-6152 email: lawry_d@cityofelgin.org Dave Lawry Chicago Metro Chapter APWA President David L. Lawry, P.E. General Services Manager City of Elgin 150 Dexter Court Elgin, IL 60120 (w) 847-931-5961 (f)847-931-6152 email: lawry_d@dtyofelgin.org NORTHWEST September 21, 2007 ' TO: Mayor and Members of the City Council ouoan( it Gra..7h anJ 7)i�t(r�nc�d'htA Bast FROM: Olufemi Folarin, City Manager David L. Lawry, General Services Group Director Raymond H. Moller, Director of Economic Development SUBJECT: Storm Sewer Expense Reimbursement to Kinney Electric PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information related to the cost of storm sewer construction expense incurred by Kinney Electric related to the building expansion being constructed at 573 North Crystal. This information is necessary in order to enter into an expense sharing agreement related to the city's share of the storm sewer construction costs. RECOMMENDATION It is recommended that the City Council authorize staff to enter into an agreement with Kinney Electric in the amount of $58,862 to cover the city's share of the storm sewer work built by Kinney Electric's contractor. BACKGROUND The property at 573 North Crystal that is undergoing the building expansion was previously owned by the City of Elgin. It served as the city's vehicle maintenance facility. The property was sold to Kinney Electric in July of 2005. Kinney Electric is constructing a 20,000 square foot building expansion on the existing 11,000 square foot building. A section of the improvement will result in the creation of a basement area to the east of the main building area. The basement area will have access from Pine Street. Due to the construction of the basement access area, the city is requiring that the storm sewer that runs along the north side of Pine Street be reconstructed. In addition,the profile of Pine Street must be lowered slightly to allow for vehicle access to the building basement. Due to the fact that Kinney Electric needs to tie into the storm sewer on Pine Street and will have the necessary contractor at the site, city staff has requested that the property owner construct the entire length of storm sewer improvements from Crystal Street to Bird Street. Because the city is Storm Sewer Expense Reimbursement to Kinney Electric September 21, 2007 Page 2 making certain street improvements in the immediate area, the city contractor will make the necessary adjustments to Pine Street and then pave the street sections between Crystal Street and Bird Street. The cost of the storm sewer construction will exceed the cost of the road work for the Kinney Electric project. Thus, the city would reimburse Kinney Electric for the net cost of the storm sewer construction services provided by their contractor. This amount is estimated to be $58,862. KINNEY ELECTRIC EXPENSES Storm Sewer $44,995 Curbs 17,510 Engineering 3,000 Sub Total $65,505 Paving (6,643) Net Reimbursement $58,862 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT The net cost of the proposed assistance package is $58,862. Please encumber funds for Kinney Electric storm sewer, there are sufficient funds budgeted ($314,010) and available ($86,808) in the Riverboat Fund, account number 276-0000-791.80-27 project 039698, Economic Development Incentives to cover the cost of this project. Following approval of this proposed assistance package, $27,946 will be available for funding other projects requiring economic development incentives. LEGAL IMPACT A cost sharing agreement between the City of Elgin and Kinney Electric will need to be entered into. Storm Sewer Expense Reimbursement to Kinney Electric September 21, 2007 Page 3 ALTERNATIVES 1. The City Council may choose to enter into an agreement with Kinney Electric Company for sharing expenses related to curb, storm sewer and street repair on Pine Street. 2. The City Council may choose not to enter into the agreement with Kinney Electric. Respectfully submitted for Council consideration. RHM/jr attachments