04-135 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:
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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
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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
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00 `�y Agenda Item No. \
�,,1 City of ElginIF
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May 7, 2004 ` � q ��
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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
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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
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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)
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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.
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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.