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HomeMy WebLinkAbout09-68 Resolution No. 09-68 RESOLUTION AUTHORIZING EXECUTION OF A RESIDENTIAL UNDERGROUND AGREEMENT WITH COM ED FOR HIGHLAND WOODS LOT DEPOSITS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin, City Manager, be and is hereby authorized and directed to execute a Residential Underground Agreement on behalf of the City of Elgin with ComEd for service to the Highland Water Tower and Highland Woods Neighborhood J lot deposits, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: March 18, 2009 Adopted: March 18, 2009 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk I a LOT / PREMISES DEPOSIT AGREEMENT Contract#: NR090014 This Lot/Premises Deposit Agreement("Agreement") is made as of on 03/0912009, by and between Commonwealth Edison Company("ComEd"), with a business address at Two Lincoln Centre, Oakbrook Terrace, Illinois, and CITY OF ELGIN ("Developer'), with a business address at 150 DEXTER, ELGIN (collectively referred to as"Parties"). RECITALS: A. ComEd operates an electric transmission and distribution system in Northern Illinois. B. Developer is developing HIGHLAND WOODS J, a residential development located in GREENBRIAR DR/HIGHLAND WOODS, LOT DEPOSI, ELGIN, IL, (the "Project"). The Project includes 28 lots or premises: 313 - 336; 763 - 766 ("Lots/Premises'). C. ComEd requires the Developer to deposit certain funds with ComEd in connection with the installation of facilities to provide electric service to the Project. D. The parties desire to enter into this Agreement to govern such deposit with ComEd by Developer. NOW, THEREFORE, in consideration of the covenants and agreements contained in this Agreement and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Payment of Deposit. In connection with the Project Developer shall pay ComEd upon receipt of a bill from ComEd, which shall be sent no later than eight(8)weeks prior to commencement of ComEd's work in connection with the Project, a deposit in the amount of $28,000.00, which consists of$1,000 per Lot/Premises (the"Deposit"). 2. Refund of Deposit. ComEd shall refund to Developer deposits relating to each Lot/Premises (i.e., $1,000 per Lot/Premises) on a Monthly basis as electric service to each Lot/Premises has been energized. Such refunds shall not include interest. In the event electric service to any Lot/Premises is not energized within ten (10) years of the date of the Deposit, no refund shall be payable with respect to such Lot/Premises and ComEd shall be entitled to retain such Deposit. i 3. Tarriff. This Agreement, and all fees, charges and surcharges for service hereunder, in all respects shall be and remain subject to the applicable provisions of Commonwealth Edison Company's Electric Service Tariff. I i I i FOR THE COMPANY: FOR THE APPLICANT: BARBARA KEMPISTY � Accep ustomer Signature �� - Accepted By Signature Print Name Print Name U Official Capacity 4- z '? - o � c(- �), _ Date Date A-0�3 �50 l �0 February 26, 2009 TO: Mayor and Members of the City Council FROM: Olufemi Folarin, City Managers Kyla Jacobsen, Water System Superintendent SUBJECT: Commonwealth Edison Service to Highland Water Tower(T-11) / Lot Deposits PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider authorization of expenditure to Commonwealth Edison (ComEd) for lot deposits in the amount of$28,000. RECOMMENDATION It is recommended that the City Council approve the lot deposits to ComEd in the amount of $28,000. BACKGROUND CB&I Company successfully completed the construction of the Highland Tower (T-11) in 2007. The tower was put in service on October 7, 2007. Due to the slow down in the real estate market, Crown Development was not able to build more houses in Highland Woods Subdivision. Consequently, ComEd refused to commit itself to provide power service to the site. Since then, electrical service, on an as needed basis, is being provided to the water tower by a small standby generator. The standby generator was not designed to be a full time power source, and therefore is used on an as needed basis. Because a permanent, reliable source of power is currently not available, this tower cannot be isolated to a separate pressure zone that will ultimately provide the opportunity to use the entire capacity of the tank. The cost to run electrical service to the Highland Avenue Overhead Tower (T-11) was always part of the original construction project. The delay has been extending service to the end of the development where the water department would"pick up"the service and extend to the tower. The City staff has reviewed all options available and concluded that the best overall solution is to work with ComEd to extend its service to the water tower site. After repeated contacts with ComEd and site visits, ComEd has agreed to extend the power through the Highland Woods Neighborhood"J". Due to the housing market slow down, ComEd is reinstating the Lot Deposit ComEd Service to Highland Water Tower February 26, 2009 Page 2 Policy that was recently approved by the ICC, and will require a payment of$1,000 per lot that would be refunded back (on a quarterly basis)when the meters are installed in the future, i.e., once homes with electrical service are built on those 28 lots. The total lot deposit through Highland Wood Subdivision — Neighborhood "J" is $28,000. Given the state of the current housing market, it is not possible to accurately determine when the deposit will be refunded. The initial construction estimate of getting electricity to the tower was between $40,000 and $50,000, which is over and above the lot deposits required at this time. Once ComEd completes an engineering study to determine the exact cost to run the electrical service, another request will be brought before the council for authorization to proceed with the actual service COMMUNITY GROUPSANTERESTED PERSONS CONTACTED None FINANCIAL IMPACT The cost of the required Commonwealth Edison lot deposits is $28,000. No money was budgeted for this initiative. Funds are available from project number 409646—"Airlite/Lyle W Pressure Zone" as it is completed and the remaining funds ($85,564) can be transferred to fund the required deposit. The water portion of the 2005 General Obligation Bond Fund, account number 365-4000-795.92-41, "Distribution Systems", project number 409651, "Highland Water Tower"will be charged. LEGALIMPACT None ALTERNATIVES 1. The City Council may choose to authorize payment to Commonwealth Edison for lot deposits in the amount of$28,000. 2. The City Council may choose not to authorize payment to Commonwealth Edison for lot deposits in the amount of$28,000. Respectfully submitted for Council consideration. PLB/KBJ