09-142 Resolution No. 09-142
RESOLUTION
AUTHORIZING EXECUTION OF AN ADVANCE DEPOSIT AGREEMENT
WITH COMMONWEALTH EDISON COMPANY FOR ELECTRIC DISTRIBUTION
EXTENSION TO THE HIGHLAND OVERHEAD TANK (T-11)
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 an advance deposit agreement on behalf of the City of Elgin with Commonwealth
Edison Company for electric distribution extension to the Highland Overhead Tank(T-11),a copy of
which is attached hereto and made a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: June 10, 2009
Adopted: June 10, 2009
Vote: Yeas: 7 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
WORKTASKNUMBER.:0658924801 PL NUMBER:431024 ADA NO.:ELG-2009-00I
RIDER DE-DISTRIBUTION SYSTEM EXTENSIONS
ADVANCE DEPOSIT AGREEMENT(ADA)
COMMONWEALTH EDISON COMPANY,hereinafter referred to as the"Company,'and the following Depositor or Depositors,
hereinafter referred to as the"Depositors,
DEPOSITOR I CITY OF ELGIN
whose premises are located at:
DEPOSITOR I 4200 ROUTE 20,WATER TANK T-l 1,ELGIN,IL 60123
DO HEREBY AGREE ON THIS DATE 09/30/2009 as follows:
1. The Depositors herewith deposit with the Company,in advance,the total sum of 533,085.97,which is the amount by which the
Company's estimated(Check total or prorata) x total/ prorata cost of installed facilities needed to provide distribution capacity
for standard service to a point adjacent to the property lines of the Depositors(the"distribution system extension"or
"extension"),as shown on the Exhibit"A"attached hereto,exceeds the cost of 250 feet of single-phase overhead line per
Depositor,including any necessary delivery voltage transformer and its associated protective devices for each depositor.
2. If two or more Depositors are parties to this Agreement,such deposit is apportioned among them as follows:
DEPOSITOR I 533,085.97
Such apportionment has been determined and agreed upon by such Depositors.
3. In consideration of such deposit,the Company will provide said extension in accordance with the requirements of 83 Illinois
Administrative Code 410,Rider DE - Distribution System Extensions("Rider DE"),and the Company's standard policies and
practices as they may be modified or superseded from time to time. The Company shall own such extension.
4. The Company shall make annual refunds for a period of up to ten years after the distribution extension to which this Agreement
relates is energized and placed in service or until the amount of deposit is fully refunded,whichever occurs first,to the Depositors
of the amount deposited in the following manner.
a. By annually crediting to each Depositor 60%of the Distribution Facilities Charge(DFC)that the Company received from
such Depositor based on the meter data used to register the quantities of the Company's service provided at the premises for
which the deposit is made.
4. b. By crediting to the Depositors an amount equal to 60%(cumulatively in total of the annual DEC from the service provided to
any additional customers who were not a party to this agreement and who are directly connected to the distribution system
extension after such extension is energized and placed in service. If paragraph 2 is applicable,such credits for the DEC from
the service provided to such additional customers will be made to the Depositors in the same proportions as the individual
deposit amounts specified in this Agreement as compared to the sum of those individual deposit amounts except that(i)once
an individual Depositor's deposit has been fully refunded,that Depositor's subsequent DEC:will also be considered in the
determination of annual refunds for other depositors thereafter,if any,in a manner similar to the approach described in this
item 4h for additional customers and(ii)the additional refund amount that is attributed to the additional DEC from the
customers added to the distribution system extension to which this Agreement relates and that of the individual Depositor
that has received a fuill refund of its deposit,will be distributed to those remaining individual Depositors that have not yet
received a full refund of their deposits,in the same proportions as the individual deposit amounts specified in this Agreement
for those remaining Depositors as compared to the sum of those individual deposit amounts for those remaining Depositors
(i.e.excluding the fully refunded individual deposit amount).
c. If the deposit from paragraph 1 above is a prorata amount based only on the Depositor(s)expected demand load,all refunds
will be made based solely upon the DEC from such Depositor(s). No additional refunds will be made based upon DEC from
any additional customers who were not a party to this agreement and who are directly connected to the distribution system
extension after such extension is energized and placed in service.
d. If a Depositor moves from the service location covered by that Depositor's deposit,the Company will,unless otherwise
notified by the execution of an Assignment of Agreement form,continue to make refunds to that Depositor on the basis of
the annual DEC of the successor customer at the service location and any additional customers who are not a party to this
Agreement and are directly connected to the distribution system extension to which this Agreement relates.
e. For purposes of this Section 4,DEC shall mean the Company's revenue received from the Depositor or such other additional
customers that are not a party to this Agreement but are subsequently served from the distribution system extension to
which this Agreement relates(collectively,"customer(s)")that is(or,in the case of customers served under a Company
bundled service tariff,the portion of the Company's revenue received from the customer that would be)derived pursuant to
the DFC assessed under Rate RDS or other successor rate to Rate RDS dealing with electric power and energy delivery
services(as opposed to electric power and energy supply services).
5. Refunds shall in no event exceed the amount deposited and shall be made over a period not to exceed 120 months from the date
the distribution system extension is completed,such date to be about 09/30/2019, if there is any portion of the deposit then
unrefunded,it shall be retained by the Company.
6. Deposits shall not bear interest.
7. Any delays in or failure of performance by the Depositor(s)or the Company under this Agreement.other than payment of money
according to the terms hereof,shall not constitute default under this Agreement if and to the extent such delays or failures of
performance are caused by occurrences beyond the control of the Depositor(s)or the Company,as the case may be(herein,a
"force majeure"),including,but not limited to acts of God or the public enemy;expropriation or confiscation of facilities;
compliance with any order or request of any governmental authority;act of war;rebellion or sabotage or damage resulting
therefrom;fires,floods,explosions,accidents,riots,or strikes or other concerted acts of workers,equipment failures,or major
maintenance outages,whether direct or indirect;or any causes,whether or not of the same class or kind as those specifically
above named,which are not within the control of the Depositor(s)or the Company,respectively,and which by the exercise of
reasonable diligence,the Depositor(s)or the Company are unable to prevent.
8. If a matter or item is addressed in Rider DE,as may be modified or superseded from time to time,but is not specifically addressed
herein,the treatment of such matter or item as set forth in Rider DE shall apply. If a conflict exists or develops between the
provisions of this Agreement and Rider DE,then the provisions of Rider DL shall prevail.
This Agreement is void unless accepted within thirty(30)days from its date and is effective when accepted by the Depositors and
approved by the Company
ACCEPTED BY:
Depositor 1 CITY OF ELGIN Signature: 4%0 \ `�
Acct.No.: 1107156053 4200 ROUTE 20,WATER TANK T-11,ELGIN '441 tri a a or.
Meter Nos.:
FOR TIIE COMPANY:
Engineer/Representative: MARIA CARUANA Office/Phone No.815-334-3252
Approved by: MARIA CARUANA Signature( 2d` Za--_
FIELD REPRESENTATIVE New Busing Mgr-FR Region
June 4, 2009
TO: Mayor and Members of the City Council
t
FROM: Olufemi Folarin, City Manager
Kyla Jacobsen, Water System Superintendent
SUBJECT: Commonwealth Edison Distribution System Extension
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
distribution system extension in the amount of$33,086.
RECOMMENDATION
It is recommended that the City Council approve the expenditure to ComEd for the electric
distribution extension to the Highland Overhead Tank(T-11) in the amount of$33,086.
BACKGROUND
On March 18, 2009, the City Council authorized the City Manager 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. The amount of the deposit was
$28,000.
The proposed Rider De-Distribution System Extensions/Advance Deposit Agreement (ADA) is
for the extension of the service from lot 764 near the cul-de-sac to the outside Water Tank
Fencing south of the entrance gate as described in the attached sketch. The cost of this service is
$33,086.
The total cost of extending the ComEd service to Highland Water Tank(T-11) is as follows:
Engineering(previously expended): $ 5,000
Lot Deposit(previously expended): $28,000
Distribution System Extension(outside the fence): $ 33,086
Distribution System Extension (inside the fence): $ 1,365
Total $ 67,451
ComEd Distribution System Extension
June 4,2009
Page 2
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
FINANCIAL IMPACT
The cost of the required Commonwealth Edison lot deposits is $33,086. There are sufficient
funds budgeted ($82,714) and available ($53,327) in the water portion of the 2007 General
Obligation Bond Fund, account number 367-4000-795.9241, "Distribution Systems", project
number 409651,to fund the electric distribution extension.
LEGAL IMPACT
None
ALTERNATIVES
1. The City Council may choose to authorize payment to Commonwealth Edison for
distribution system extension.
2. The City Council may choose not to authorize payment to Commonwealth Edison for
distribution system extension.
Respectfully submitted for Council consideration.
PLB/KBJ
Attachments
,c,4 OFE�Ci
' z Memorandum
City of Elgin
°44IT[iie`b h
Date: June 16, 2009
To: Kyla Jacobsen, Water System Superintendent
From: Jennifer Quinton, Deputy City Clerk
Subject: farialariaffa Adopted at the June 10, 2009 Council Meeting
Enclosed please find the agreements referenced below. Please have these agreements signed and
executed by Commonwealth Edison and return one fully executed copy to the City Clerk's
office for the City's records. If you have any questions please feel free to contact our office
847-931-5660 and we will do our best to assist you. Thank you.
• Advance Deposit Agreement with Commonwealth Edison Company for Electric
Distribution Extension to the Highland Overhead Tank(T-11)