TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 14, 2017
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to enter into a Utility Relocation Agreement with Nicor Gas Company to relocate an existing natural gas pipeline on a parcel of real estate recently acquired by the District as part of the construction of the Addison Creek Reservoir (Contract 11-186-3F) located at 2795 West Washington Boulevard in Bellwood, Illinois. Consideration shall be a nominal fee of $10.00
Body
Dear Sir:
The District has requested that Nicor Gas Company (“Nicor”) enter into a Utility Relocation Agreement (“URA”) with the District that would provide for the relocation of a certain existing Nicor natural gas pipeline (“Existing Pipeline”). The Existing Pipeline is located, pursuant to Nicor’s easement, on a parcel of real estate recently acquired by the District through condemnation proceedings as part of the construction of the Addison Creek Reservoir (“Reservoir”) (Contract 11-186-3F). The parcel is located at 2795 West Washington Boulevard in Bellwood, Illinois.
The Existing Pipeline provided natural gas to the surrounding commercially developed area. Under the URA, the Existing Pipeline would be removed and the new pipeline would be located at the northern boundary of the Reservoir area. The relocated easement area comprises approximately 9,584 square feet. The Engineering Department has confirmed that such relocation is consistent with the District’s plans for the construction, operation and maintenance of the Reservoir.
A nominal fee of $10.00 is recommended in this instance as Nicor had an existing no-fee perpetual easement through the acquired property. Additionally, the URA will provide that the District will pay a utility relocation fee of $58,058.15 to Nicor, which the Board previously authorized at its meeting of November 17, 2016. In exchange, under the URA, Nicor will relinquish any existing easement rights it has on this parcel. This will result in considerable savings to the District since, without such an agreement, the District would have to initiate condemnation proceedings to acquire the easement, and because this is a utility easement, obtain the Illinois Commerce Commission’s approval for the condemnation.
It is requested that the Executive Director recommend to the Board of Commissioners that it grant authority to enter into a Utility Relocation Agreement with Nicor Gas Company to relocate an existing natural gas pipeline on a parcel of real estate recently acquired by the District as part of the construction of the Addison Creek Reservoir (Contract 11-186-3F) located at 2795 West Washington Boulevard in Bellwood, Illinois. Consideration shall be a nominal fee of $10.00.
It is also requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the Chairman of the Committee on Finance and the Clerk to execute the Utility Relocation Agreement on behalf of the District after it is approved by the Acting General Counsel as to form and legality.
Requested, Susan T. Morakalis, Acting General Counsel, STM:CMM:MLD:vp
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, David J. Walsh, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 14, 2017
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