Title
Reimbursement Agreement - Commonwealth Edison Company
History
The 143rd Street and LaGrange Road Intersection Improvement project includes the relocation of public utilities to underground locations that are in conflict with the roadway improvements planned for the roadway expansion.
As the project has progressed, easements and property acquisitions were obtained from adjacent property owners to enable the needed utility relocations to occur to support the project schedule.
One of the final locations required, the lot at the southwest corner of 143rd Street and Beacon Avenue, is owned by the Norfolk and Southern Railroad (NS). Even prior to the inception of the current project, Staff has been attempting to reach NS officials to discuss this parcel, as the Village seeks to acquire the parcel to compliment that previously acquired on the north side of 143rd Street at the same general location. With the current need identified for the electrical relocation project, Staff has been working with NS Officials and ComEd staff to resolve the property needs at this location.
As background, the NS railroad does not grant “easements” for the use of their property. However, they do grant “Right-of-Way Licenses” which permits Licensees to use the rights of way identified for the purposes outlined within the License Agreements. ComEd requires that their equipment be placed only upon ground dedicated for the placement of their equipment (public Right of Way), or upon ground for which they are granted a permanent easement: Neither was possible here.
To resolve this impasse, Village and ComEd Staff reached out via a conference call directly to NS Staff to ensure that a Licensing Agreement is possible for this parcel, and were ensured that it is possible and readily available. At issue once the property-related matters were settled, was the concern from ComEd in locating equipment upon non-dedicated ground.
To close the matter and continue the project, Village Staff proposed to ComEd that prior to the completion of the Licensing Agreement with NS, the Village would prepare and execute a “Reimbursement Agreement” that would provide for the reimbursement of costs associated with the “NS-directed removal of ComEd equipment off of the parcel identified in the NS/ComEd Licensing Agreement.” ComEd staff presented this solution to their Counsel and their concurrence has been received.
The Reimbursement Agreement has been drafted by the Village Attorney. As Village Staff continues to seek the full acquisition of the aforementioned parcel, staff believes that there is negligible financial exposure to the Village via this agreement and, therefore, recommends that it be approved and signed. The ComEd equipment placement was directed by Village staff to allow future unimpeded use of the site.
Financial Impact
There are no direct costs associated with this Reimbursement Agreement as the costs will be incurred upon the termination of the NS/ComEd Licensing Agreement, a time for which is indeterminable. Costs associated with the procurement of the ComEd Licensing Agreement will be incidental and included in the costs paid to ComEd for the underground relocation project.
Recommended Action/Motion
I move to approve authorizing the Village Manager to sign and deliver the ComEd Reimbursement Agreement in a form substantially as attached hereto, and to pay incidental costs associated with the preparation of the ComEd/NS Licensing Agreement anticipated to be $6,250 which will be included in future ComEd project billings.