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HomeMy WebLinkAboutRESOLUTION - 6-99 - 2/9/1999 - FRANCHISE AGREEMENT/NICOR GAS RESOLUTION NO. 6-99 A RESOLUTION AUTHORIZING THE VILLAGE PRESIDENT AND VILLAGE CLERK TO EXECUTE AN AMENDMENT TO THE FRANCHISE AGREEMENT BETWEEN NICOR GAS AND THE VILLAGE OF ELK GROVE VILLAGE NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, State of Illinois as follows: Section 1 : That the Village President be and is hereby authorized to sign the attached documents marked: AMENDMENT TO THE FRANCHISE AGREEMENT a copy of which is attached hereto and made a part hereof as if fully set forth and the Village Clerk is authorized to attest said documents upon the signature of the Village President. Section 2 : That this Resolution shall be in full force and effect from and after its passage and approval according to law. VOTE: AYES: 6 NAYS: 0 ABSENT: 0 PASSED this 9th day of February 1999 . APPROVED this 9th day of February 1999. Craig B. Johnson Village President ATTEST: Patricia S. Smith Village Clerk reso602nicorfranchagmt.doc nicorNleor Gas Mailing Address- Phone 630983-8676 G A 5 1844 Ferry Road P.O.Box 190 Internet www.nicorinc.com Naperville,IL 60563-9600 Aurora,IL 60507-0190 November 24, 1998 President and Board of Trustees Village of Elk Grove Village Elk Grove Village, IL President and Trustees: The undersigned, Northern Illinois Gas Company (d/b/a Nicor Gas Company) (the "Company"), for and in consideration of the adoption by the authorities of the Village of Elk Grove Village, Illinois (the "Village"), of an ordinance granting it the right to construct, operate and maintain a gas distribution system in the Village of Elk Grove Village (the "Ordinance") for a term of 50 years from March 11, 1957, hereby agrees for itself, its successors and assigns, that so long as said ordinance shall remain in full force and effect, it will, beginning in January 1, 1999 and every year thereafter in January throughout the remainder of the life of the Ordinance, pay the Village the Annual Payment. The Annual Payment will be calculated by the Company each year by (i) multiplying the sum of(A) the average per therm gas cost for the preceding 36 months, based on the Company's prudently incurred purchased gas cost and (B) the per therm rate for general gas service under the Company's rate structure in effect as of the date of calculation times (ii) 63,429 therms (the "Therm Allocation"). The Therm Allocation is based upon a population of 33,429 in the Village. The Therm Allocation will be adjusted by the Company based on each decennial census count. Between decennial census counts, the Therm Allocation may be increased on the basis of changes in population of the Village as shown by revised or special census, or resulting from annexation of inhabited territory. Upon the submission of a written request by the Village accompanied by the official State notification of census change, the Therm Allocation will be adjusted by the Company. Therm Allocation adjustments will be effective for the next Annual Payment on the basis of three (3)therms per person up to 10,000 of population; two (2) therms per person for the next 10,000 of population; one (1) therm per person for the next 80,000 of population; 1.2 therms per person for the next 20,000 of population; and 1.5 therms per person for the population over 120,Ou0. In the event the Company's policy in regard to the practice of making the Annual Payment is changed at any time in the future, or in the event that the Company in the future provides any other gas utility service benefit as a matter of general policy to all municipalities in said service area, it will inform the Village of the change and upon acceptance by the Village will grant the Village the benefits of such change or benefits under the same conditions applicable to other municipalities. November 24, 1998 Village of Elk Grove Village page 2 The Company, for itself, its successors and assigns, reserves the option, however, to reduce the Annual Payment by the amount of any fees which the municipality may charge the Company for street or parkway openings or inspections of any kind during the preceding calendar year. This agreement shall supersede, replace and be in lieu of the provisions as to the supply of gas without charge to the Village provided for in a letter of the Company addressed to the President and Board of Trustees dated March 22, 1991. Very truly yours, NORTHERN ILLINOIS GAS COMPANY (d/b/a NICOR GAS COMPANY) By Charlie Thurston Vice President Agreed to and accepted: Village of Elk Grove Village OF Elk Grove Village, ILLINOIS By: Craig B. Johnson Title: Village President