R-1531 - 01/26/2016 - NIG - Resolutions Supporting Documents ITEM 9.A. 1)
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AGENDA ITEM
Regular Board of Trustees Meeting
of
January 26, 2016
SUBJECT: Northern Illinois Municipal Natural Gas Franchise Agreement
FROM: Riccardo F. Ginex, Village Manager
Peter Friedman, Village Attorney
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: A Motion to Approve Ordinance-RESOLUTION 2016-
NIG-AG-R-1531,An Ordinance Authorizing and Granting a Franchise to Northern Illinois
Gas Company,(d/b/a NICOR GAS COMPANY),Its Successors and Assgins,to Construct,
Operate, and Maintain a Natural Gas Distribution System In and Through the Village of
Oak Brook,Illinois.
Backaround/History:
The Village of Oak Brook has been part of the Northern Illinois Municipal Natural Gas Franchise
Consortium for the past six (6)years. The Village's prior franchise agreement was a 50 year
agreement and approved on June 10, 1958. It expired on June 10, 2008. As most municipal
franchise agreements are very old and often unclear, incomplete, and difficult to understand they
do not adequately protect the public health and safety of the municipalities nor do they
adequately protect the public rights-of-way. Some highlights of the new agreement include the
following:
*New provisions designed to protect the municipality's rights-of-way, including requirements on
construction, restoration, and maintenance.
*New provisions designed to better protect the public health and safety, including emergency
notice and response standards.
*The municipality may choose among free gas for municipal facilities or annual cash payments.
•Provides Oak Brook will receive a one-time 75%bonus of$16,127.67.
• It includes modern provisions relating to annual meetings with Nicor, capital improvement
plans, information sharing, and specific triggers for future amendments based on new franchise
terms subsequently agreed to by Nicor.
•The Consortium has been able to negotiated with Nicor a new, standard franchise document
that is clear, comprehensive, and protective of the interests of both the municipalities and the gas
companies. The franchise is for a term of 25 years.
Our Village Attorney has been the Consortium Counsel and has prepared an Executive Summary
which I have attached. Specifically, it discusses certain pertinent changes in the agreement to
include the following:
*Requires Nicor to comply with local, generally applicable right-of-way, building, and tree
regulations.
*Requires a Nicor notice of emergencies to the municipality within 24 hours unless that is
somehow not practicable.
*Gives the municipality two options on how they will be compensation for use of their right-of-
way. They can either take an annual lump sum payment that Nicor will make in cash to the
municipality based on a formula which is generally described as the municipality's"therm
allocation"times the "gas cost per therm," or the municipality can decide to receive free gas for
buildings, or parts thereof, used for municipal purposes. The maximum amount of free gas to be
provided cannot exceed the municipality's "therm allocation."
•We have sixty (60) days after the effective date of the agreement to decide whether to receive
Annual Payments or Unbilled Gas. Thereafter, a municipality can change from Annual Payments
to Unbilled Gas, or vice versa, every three years with notice to Nicor.
•Each municipality under the New Franchise will receive a one-time cash renewal payment
equal to 75 percent of the municipality's therm allocation multiplied by the gas cost per therm.
•While the effective date of the new franchise agreement is January 1, 2016, each municipality
has to approve the agreement within 90 days of the effective date, and finally
•The New Franchise contains mutual indemnification provisions.
Regarding the best option for compensation, staff has gathered information on the amount of
therms we use for our buildings. Presently, the Village Hall,Fire Station 93, The Heritage
Center, and Public Works are part of our franchise gas accounts. The Village is only allotted
28,378.80 therms per our population calculation. In 2015, we used 38,410.17 therms for a cash
value of$15,419. With the new 20% increase to 28,378.80 therms totaling a cash equivalent of
$16, 127.67, it is our recommendation to continue on with receiving the free gas for our
buildings under the franchise agreement.
Recommendation:
The Board approves the ordinance.
RESOLUTION 2016-NIG-AG-R-1531
AN ORDINANCE AUTHORIZING AND GRANTING A FRANCHISE
TO NORTHERN ILLINOIS GAS COMPANY
(d/b/a NICOR GAS COMPANY) ITS SUCCESSORS AND ASSIGNS,
TO CONSTRUCT, OPERATE AND MAINTAIN A NATURAL GAS DISTRIBUTING SYSTEM
IN AND THROUGH THE VILLAGE OF OAK BROOK, ILLINOIS
WHEREAS, Northern Illinois Gas Company (d/b/a Nicor Gas Company), an Illinois corporation
("NICOR GAS") and the Village of Oak Brook ("Village") entered into franchise agreement effective June
10, 1958 that generally authorized NICOR GAS to construct, operate, and maintain a gas distribution
system within the Village, and NICOR GAS provided the Village a letter dated March 22, 1991 that
specifies the compensation to be paid to the Village by NICOR GAS in connection with such franchise
agreement (such franchise agreement and letter are referred to collectively herein as the "Previous
Agreement'); and
WHEREAS, NICOR GAS, along with its successors and permitted assigns (collectively,
"Grantee"), and the Village desire to have this Ordinance adopted and to have it represent a new
agreement between the Grantee and the Village to supersede the Previous Agreement ("Franchise");
and
WHEREAS, the Village has determined that it is in the best interests of the Village and its
residents to adopt this Ordinance establishing a new Franchise with the Grantee;
WHEREAS, the Grantee has approved this Ordinance and authorized execution by its duly
authorized representatives of the Consent Agreement provided pursuant to Section 15 of this Ordinance;
and
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
SECTION 1. DEFINITIONS.
The following terms have the meaning ascribed to them in this Section:
Annual Meeting. The meeting provided under Subsection 13.A. of this Ordinance.
Assignee. The entity that accepts an assignment under this Ordinance from the Grantee with
the authorization of the Village, as provided in Subsection 13.6 of this Ordinance.
Corporate Authorities. The corporate authorities of the Village.
Effective Date. The effective date of this Ordinance, being January 1, 2016.
Emergency. An event involving the Gas System that (i) poses an imminent threat to the public
health or safety within the Village or (ii) is likely to result in a prolonged and unplanned interruption of gas
service to a significant number of customers within the Village.
Gas. Natural gas or manufactured gas, or a mixture of gases, that is distributed to the
Grantee's customers in the Village through the Gas System.
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Gas System. The Grantee's system of pipes, tubes, mains, conductors, and other devices,
apparatus, appliances, and equipment for the production, distribution, and sale of gas for fuel, heating,
power, processing, and other purposes within and outside the corporate limits of the Village.
Gas System Work. Any construction, operation, maintenance, repair, removal or replacement of
the Gas System conducted by the Grantee within the Public Right-of-Way or conducted by the Grantee
immediately adjacent to the Public Right-of-Way if such activity physically disturbs the Public Right-of-
Way.
ICC. The Illinois Commerce Commission.
Public Right-of-Way. The Village's streets, alleys, sidewalks, parkways, easements, and other
property of the Village used as right-of-way.
Requirements of Law. Any and all reasonable regulations which may now or hereafter be
prescribed by general ordinance of the Village with respect to the use of the Public Right-of-Way or the
conduct of Gas System Work.
Term. The term of the Franchise under Section 3 of this Ordinance.
SECTION 2. GRANT OF FRANCHISE.
The Village grants the right, permission and authority to the Grantee to construct, operate,
maintain, repair, remove, and replace its Gas System within the corporate limits of the Village, subject to
the conditions and regulations of this Ordinance. The right, permission and authority granted by the
Village to the Grantee by this Franchise may not be exclusive to the Grantee, provided that any other
such rights or authority granted by the Village may not interfere with the right, permission and authority
granted to the Grantee pursuant to this Ordinance.
SECTION 3. TERM.
The Franchise authorized and granted pursuant to this Ordinance shall be for a term of 25 years,
commencing on the Effective Date, and expiring on January 1, 2041 ("Term").
SECTION 4. USE OF PUBLIC RIGHT-OF-WAY.
The Grantee shall be authorized to use the Public Right-of-Way for the Gas System and Gas
System Work subject to the provisions of this Ordinance, including without limitation the following
provisions:
A. General Coordination, Location And Repair. Those portions of the Gas System in the
Public Right-of-Way shall be installed and maintained under the general supervision of the Director of
Public Works of the Village, or other duly authorized agent of the Village. The portions of the Gas System
within the Public Right-of-Way shall be located as not to injure any drains, sewers, catch basins, water
pipes, pavements or other like public improvements. If any drain, sewer, catch basin, water pipe,
pavement or other like public improvement is injured by the location of the portions of the Gas System
within the Public Right-of-Way, the Grantee shall forthwith repair the damage to the satisfaction of the
Village and in default thereof the Village may repair such damage and charge the cost thereof to, and
collect the same from, the Grantee.
B. Compliance with Requirements of Law. The Grantee shall be subject to the specific
standards provided in this Ordinance for work in the Public Right-of-Way and with all other Requirements
of Law.
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C. Conduct of Gas System Work; Restoration. The Grantee will conduct Gas System
Work in accordance with the Requirements of Law. The Grantee will undertake to minimize the
disturbance or obstruction of the Public Right-of-Way caused by Gas System Work, including, without
limitation, having Gas System Work, once started, undertaken and completed without unreasonable
delay. The Grantee will promptly restore Public Right-of-Way, as well as any fences, roads, pavements
and other improvements in the Public Right-of-Way, disturbed by Gas System Work as nearly as
reasonably practicable to its condition immediately before the Gas System Work.
D. Emergencies. In the case of an Emergency, the Grantee will notify the Village by the
most practical, timely, and available means under the circumstances of the Emergency and the conditions
that are affecting the Gas System and its customers. Notwithstanding Section 10, the notice will be no
more than 24 hours after the Grantee learns of the Emergency, except if notice within 24 hours is not
practicable under the circumstances of the Emergency, in which case the Grantee will provide the notice
required under this Subsection as soon as is practicable under the circumstances. Each Party will
provide the other Party with an Emergency contacts list, including 24-hour contact information for at least
two representatives. The Grantee will keep the Village apprised of the status of the Emergency to the
extent reasonably practicable and will advise the Village when the Emergency has been resolved.
E. Coordination Regarding Capital Improvements: System Information. The Grantee
and the Village believe that it is in their mutual interests to be informed of their respective capital
improvement programs, so that whenever practicable those programs can be undertaken to minimize the
cost of construction and public inconvenience. To that end, the following provisions apply:
1. Meeting. At Annual Meetings (see Subsection 13.A of this Ordinance),
representatives of the Grantee and the Village will be prepared to discuss significant known Gas System
Work and Municipal projects that could impact the Gas System and that will or may be undertaken within
the Village.
2. Capital Improvement Plans and General System Information. The Grantee will
establish and maintain an information medium ("Information Sharing System"), at no cost to the Village,
that will provide the Village access, on reasonable terms, to information identifying (a) anticipated Gas
System Work, (b) Grantee's planned capital improvement plans and major maintenance work related to
the Gas System within the Village, (c) maps or other documents showing the locations of gas distribution
mains in or under Public Right-of-Way within the Village; and (d)the status of ongoing Gas System Work
and capital improvement plans and major maintenance work related to the Gas System within the Village
(collectively, "General System Information"). The Grantee reserves the right to modify or replace the
Information Sharing System from time to time at its discretion. Absent gross negligence or intentional
misconduct by the Grantee, the Grantee shall have no monetary liability to the Village due to defects in
the design or performance of the Information Sharing System or errors or omissions in the information
disclosed through the Information Sharing System; provided, however, that this sentence does not
change the Grantee's obligation under Paragraph 1 of this Subsection and Subsection 13.A of this
Ordinance with respect to General System Information. As part of the Annual Meeting, the Parties may
discuss the performance of the Information Sharing System and any adjustments and refinements to the
Information Sharing System and, if requested by the Village, the Grantee will provide information
regarding any updates or other operational changes or improvements to the Information Sharing System.
SECTION S. CONSIDERATION FOR USE OF PUBLIC RIGHT-OF-WAY.
A. Payments; Provision of Gas. The Grantee shall make the Renewal Payment provided
in Paragraph 1 of this Subsection and, commencing with calendar year 2016, either (but never both) (i)
make the Annual Payments as provided and calculated in Paragraph 2 of this Subsection, or (ii) provide
for Unbilled Gas as provided and calculated in Paragraphs 3 of this Subsection. The Village shall notify
the Grantee in writing within sixty days after the Effective Date whether it has chosen to receive Annual
Payments or Unbilled Gas. In the event the Village has not notified the Grantee in writing within sixty days
after the Effective Date, the Village shall be deemed to have chosen to receive Annual Payments as
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provided and calculated in Paragraph 2 of this Subsection. Upon written notice to Grantee given on or
before June 30 of the calendar year preceding the date of change, the Village may change the method of
compensation from Annual Payments to Unbilled Gas, or vice versa, effective as of January 1 of any or
all of the third, sixth, ninth, twelfth, fifteenth, eighteenth, twenty-first, or twenty-fourth calendar year
following the Effective Date. In the event the Village has not so notified the Grantee of a change in the
method of compensation by the applicable June 30, the method of compensation then in effect shall
continue and may not be changed by the Village during the ensuing three calendar year period.
1. Renewal Payment. Within ninety days after the Effective Date, the Grantee will
pay the Village, solely as consideration for renewal of the franchise granted under the Previous
Agreement, a one-time franchise renewal payment ("Renewal Payment") of$12,095, being equal to 75
percent of the value of (a) the "Therm Allocation" (as calculated under Paragraph 4 of this Subsection)
as of the Effective Date multiplied by (b) the "Gas Cost per Therm"(as calculated under Paragraph 2 of
this Subsection).
2. Annual Payment. In January of each year except 2016 and in March of 2016, the
Grantee will pay the Village an annual payment ("Annual Payment') if the Village has chosen or has
been deemed to have chosen to receive Annual Payments rather than Unbilled Gas for such calendar
year. The amount of each Annual Payment will be calculated by the Grantee by multiplying (a) the
"Therm Allocation" (as calculated under Paragraph 4 of this Subsection) times (b) the applicable Gas
Cost per Therm. As used herein, the term "Gas Cost per Therm" means, with respect to a calendar
year, the sum of(i) the average per therm gas cost for the preceding three calendar years, based on the
Grantee's prudently incurred purchased gas cost and (ii) the per therm rate for general gas service under
the Grantee's rate structure in effect as of the last day of the preceding calendar year.
3. Unbilled Gas. If the Village has chosen to receive Unbilled Gas, the Grantee
shall supply, during each billing year(start and finish of each year shall begin and end with regular meter
reading date nearest to January 1) that the Village's choice to receive Unbilled Gas remains in effect,
without charge to the Village, an amount of gas ("Unbilled Gas") not to exceed the Therm Allocation (as
calculated under Paragraph 4 of this Subsection), to be used in buildings which may be occupied from
time to time by the Village solely for municipal purposes, or such part of these buildings as may from time
to time be occupied for ongoing municipal purposes, and not for purposes of revenue.
4. Therm Allocation. For purposes of determining the Annual Payment or the
amount of Unbilled Gas under Paragraphs 2 and 3, respectively, of this Subsection, the Therm Allocation
will be based on the following formula: 3.6 therms per person up to 10,000 of population; 2.4 therms per
person for the next 10,000 of population; 1.2 therm per person for the next 80,000 of population; 1.45
therms per person for the next 20,000 of population; and 1.8 therms per person for the population over
120,000. For purposes of the Therm Allocation, the population of the Village as of the Effective Date shall
be deemed to be the same as the population of the Village at the 2010 decennial census, which was
7,883. This population number will be adjusted by the Grantee based on each decennial census count.
Between decennial census counts, the Therm Allocation may be increased prospectively on the basis of
changes in population of the Village as shown by revised or special census. 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 Grantee.
B. Limitations on Gas Use. None of Unbilled Gas to be supplied to the Village under
Paragraph A3 of this Section, shall be resold by the Village for any purpose whatsoever. In the event the
Village uses less than the amount of Unbilled Gas calculated and authorized under Paragraph A3 of this
Section, there shall be no payment due to the Village from the Grantee for gas not used during that billing
year, nor shall any such unused therms be carried over for the following billing year's use.
C. Offset. If the Village has chosen or has been deemed to have chosen to receive Annual
Payments, the Grantee shall have the right to reduce the Annual Payment for a calendar year by the
amount of any fees that the Village has been paid by the Grantee during the preceding calendar year for
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permits, street or parkway openings, or inspections related to the Gas System or Gas System Works. If
the Village has chosen to receive Unbilled Gas, the Grantee shall have the right to reduce the Therm
Allocation for a billing year by an amount of therms equal to (a) the amount of any fees that the Village
has been paid by the Grantee during the preceding billing year divided by (b) the Gas Cost per Therm
determined for the calendar year that begins with the January 1 nearest to the end of such billing year.
SECTION 6. ACCOUNTS AND RECORDS.
Within 90 days following a written request by the Village made no more frequently than once
during each calendar year of the Term, the Grantee will provide the Village with a written statement
showing the gross operating revenue generated during the immediately preceding calendar year by the
Grantee from the distribution of gas to customers identified in the Grantee's billing records as located
within the corporate limits of the Village, which statement will, if requested as part of the Village's request,
show the distribution of such gross operating revenue among the following categories of users:
Residential, Commercial, and Industrial, or by such other categories as may be agreed to by the Grantee
and the Village.
SECTION 7. SUBSTITUTION OF MORE FAVORABLE PROVISIONS.
A. Amended Ordinance. If during the Term of this Franchise, the Village learns of a
Grantee franchise ("Grantee Franchise") from any other municipality in Illinois ("Other Franchisor")
adopted or otherwise provided by the Other Franchisor after the Effective Date and containing "More
Favorable Provisions" (as defined in Subsection C of this Section), then the Village may adopt, no sooner
than 30 days from the date of providing the notice to the Grantee required pursuant to Subsection B of
this Section, an ordinance amending this Ordinance solely to substitute for the provisions of Section 5 of
this Ordinance replacement provisions that are substantially identical to the More Favorable Provisions
("Amended Ordinance"). If the Village adopts an Amended Ordinance in conformity with this Section 7,
the Grantee will accept the Amended Ordinance and execute a Consent Agreement consistent with
Section 15 of this Ordinance.
B. Notice. At least 30 days before adopting an Amended Ordinance pursuant to this
Section 7, the Village shall provide the Grantee with written notice that explicitly (i) states that the Village
intends to invoke its right under this Section 7 to adopt an Amended Ordinance; (ii) identifies the Other
Franchisor; (iii) states the date, time, and place of the meeting at which adoption of the Amended
Ordinance will be considered; and (iv) includes the Amended Ordinance.
C. More Favorable Provisions. "More Favorable Provisions means the provisions in a
Grantee Franchise (i) establishing the compensation to be paid by the Grantee to the Other Franchisor,
including, without limitation, the formulas and procedures utilized to determine the form and amount of
such compensation ("Compensation Formulas and Procedures"); and (ii) that the Village has
reasonably concluded are more advantageous to or protective of the public interest of the Other
Franchisor than the existing provisions of Section 5 of this Ordinance are to the Village. "More Favorable
Provisions shall not include provisions providing consideration to the Other Franchisor for franchise
renewal (it being understood that the exercise by the Village of its right under this Section 7 shall not be
deemed a franchise renewal). Replacement provisions in a proposed Amended Ordinance shall not be
deemed to be substantially identical to More Favorable Provisions if those replacement provisions do not
utilize the Compensation Formulas and Procedures as applied to the Village to determine the form and
amount of compensation to be paid by the Grantee to the Village. The Village shall not have the right to
invoke this Section solely to effect a change in the form of compensation (between payments or unbilled
gas) if that form of compensation had been available to the Village to select under Section 5 of this
Ordinance, and neither the procedures for changing the form of compensation in Section 5 of this
Ordinance nor those in the Compensation Formulas and Procedures would then have permitted the
Village to make a change in the form of compensation.
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D. No Notification Required. Nothing in this Section shall require the Grantee to notify the
Village of new franchises that the Grantee obtains with other municipalities in Illinois or new provisions
within any existing franchise agreements.
SECTION 8. INDEMNIFICATION.
A. Grantee. The Grantee must, and will, fully indemnify the Village (but not any other third
party) against and from any and all claims, liabilities, actions, damages, judgments, and costs, including
without limitation injury or death to any person and damage to any property or Public Right-of-Way and
including without limitation attorneys' fees (collectively, "Claims") that the Village may incur or suffer, or
that may be obtained against the Village, as a result of or related to the Grantee's failure to perform any
of its obligations under this Ordinance, or the Grantee's negligent, unlawful, or intentional wrongful acts or
omissions that relate to (i) the use or occupation by Grantee of the Public Right-of-Way under this
Ordinance, or(ii) the construction, operation, maintenance, or repair of the Gas System located within the
Public Right-of-Way. The Village must give the Grantee written notice within 30 calendar days after the
Village has received written notice of a Claim. The Village may tender to the Grantee the defense of a
Claim, in which case the Grantee must defend the Village against that Claim, or the Village may defend
itself against that Claim at the Grantee's expense. The Grantee shall not be required to indemnify,
defend, or hold harmless the Village for any Claims to the extent the Village, its officers, agents, or
employees are liable under the laws of the State of Illinois (including for conduct that constitutes gross
negligence, malicious or intentional wrongful acts, or the willful misconduct of the Village, its officers,
agents, or employees while acting on behalf of the Village).
B. Village.
1. The Village must, and will, fully indemnify the Grantee (but not any other third
party) against any and all Claims arising as a result of damages to the Grantee's Gas System caused by
the conduct of the Village, its officers, employees, or agents for which the Village is liable under the laws
of the State of Illinois (including for conduct that constitutes gross negligence, malicious or intentional
wrongful acts, or the willful misconduct of the Village, its officers, agents, or employees while acting on
behalf of the Village). The Village shall not be required to indemnify, defend, or hold harmless the
Grantee for any damages to the extent the Grantee, its officers, agents, or employees are liable under the
laws of the State of Illinois (including for conduct that constitutes gross negligence, malicious or
intentional wrongful acts, or the willful misconduct of the Grantee, its officers, agents, or employees while
acting on behalf of the Grantee).
2. The Grantee recognizes the Village's right to exercise its police powers over the
Public Right-of-Way in case of fire, disaster, or other emergency as reasonably determined by the Village.
Notwithstanding Paragraph 1 of this Subsection, the Village shall not be liable to the Grantee for any
damages to the Grantee's Gas System when the damage results from the exercise by the Village of its
police powers in order to protect the public in case of fire, disaster or other emergency. When practicable,
as reasonably determined by the Village, the Village shall consult with the Grantee prior to the exercise
by the Village of these police powers, where the exercise may affect the Grantee's Gas System, and to
permit the Grantee to take necessary action to protect the public and the Gas System.
SECTION 9. INSURANCE.
If the Grantee's total stockholder equity as determined in accordance with generally accepted
accounting principles ("Stockholder Equity') as of the end of its most recently completed fiscal year is
less than fifty million dollars ($50,000,000), the Grantee shall be obligated under this ordinance to
maintain during its current fiscal year, at its sole cost and expense, insurance against the liabilities
assumed under this ordinance consisting of the following coverages at the following minimum limits:
A. Comprehensive General Liability. Comprehensive general liability insurance with
coverage written on an "occurrence" or "claims made" basis and with limits no less than: (1) General
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Aggregate: $2,000,000; (2) Bodily Injury: $2,000,000 per person, $2,000,000 per occurrence; and (3)
Property Damage: $2,000,000 per occurrence. Coverage must include: Premises Operations,
Independent Contractors, Personal Injury (with Employment Exclusion deleted), Broad Form Property
Damage Endorsement, Blanket Contractual Liability, and bodily injury and property damage. Exclusions
"X," "C," and "U" must be deleted. Railroad exclusions must be deleted if any portion of the Gas System
Work is within 50 feet of any railroad track. Every employee of the Grantee engaged in Gas System
Work within the Village must be included as an insured.
B. Comprehensive Motor Vehicle Liability. Comprehensive motor vehicle liability
insurance with a combined single limit of liability for bodily injury and property damage of not less than
$2,000,000 for vehicles owned, non-owned, or rented. The coverage required by this subsection shall
include bodily injury and property damage for all motor vehicles engaged in Gas System Work within the
Village that are operated by any employee, subcontractor, or agent of the Grantee.
C. Workers' Compensation. Workers' compensation coverage in accordance with
applicable law.
D. General Standards for All Insurance. If obligated under this Section to maintain the
foregoing insurance coverages, (i) the Grantee may satisfy that obligation, in whole or in part, through
insurance provided by a captive insurance company affiliated with the Grantee to the extent permitted
under applicable law if such captive insurance company and the Grantee are both controlled by a
company with Stockholder Equity as of the end of its most recently completed fiscal year of at least fifty
million dollars ($50,000,000), or through commercial insurance; (ii) all commercial insurance policies
obtained by the Grantee to satisfy such obligation must be written by companies customarily used by
public utilities for those purposes, including, if permitted by this Subsection, policies issued by a captive
insurance company affiliated with the Grantee; (iii) the Grantee must provide the Village, upon request,
with reasonable evidence of insurance and with certificates of insurance for commercial coverage
designating the Village and its officers, boards, commissions, elected officials, agents, and employees as
additional insured and demonstrating that the Grantee is maintaining the insurance required in this
Section; and (iv) each policy shall provide that no change, modification, or cancellation of any insurance
coverage required by this Section shall be effective until the expiration of 30 calendar days after written
notice to the Village of any such change, modification, or cancellation and providing that there is no
limitation of liability of the insurance if the Grantee fails to notify the Village of a policy cancellation.
SECTION 10. CURE.
In addition to every other right or remedy provided to the Village under this Ordinance, if the
Grantee fails to comply in a material respect with any of its material obligations under this Ordinance (for
reason other than force majeure), then the Village may give written notice to the Grantee specifying that
failure. The Grantee will have 30 calendar days after the date of its receipt of that written notice to take
all necessary steps to cure such material non-compliance, unless the cure cannot reasonably be
achieved within 30 calendar days but the Grantee promptly commences the cure and diligently pursues
the cure to completion.
SECTION 11. FORCE MAJEURE.
Neither the Grantee nor the Village will be held in violation or breach of this Ordinance when a
violation or breach occurred or was caused by (a) riot, war, earthquake, flood, terrorism, or other
catastrophic act beyond the respective Party's reasonable control or (b) governmental, administrative, or
judicial order or regulation other than, in the case of the Village, an order or regulation issued by the
Village not in the exercise of its police powers in order to protect the public in the case of fire, disaster or
other emergency.
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SECTION 12. NOTICE.
With respect to an Emergency, Grantee shall provide notice to the Village in accordance with
Subsection 4.D. of this Ordinance. Any other notice that (a) requires a response or action from the
Village or the Grantee within a specific time frame or (b) would trigger a timeline that would affect one or
both of the parties' rights under this Ordinance must be made in writing and must be sufficiently given and
served on the other party by hand delivery, first class mail, registered or certified, return receipt
requested, postage prepaid, or by reputable overnight courier service and addressed as follows:
Village of Oak Brook
1200 Oak Brook Road
Oak Brook, Illinois 60523
Attention: Village Manager
If to Grantee:
Northern Illinois Gas Company d/b/a Nicor Gas Company
1844 Ferry Road
Naperville, Illinois 60563
Attention: President
with a copy to:
Northern Illinois Gas Company d/b/a Nicor Gas Company
1844 Ferry Road
Naperville, Illinois 60563
Attention: Community Relations and Economic Development Department
For other notices regarding the general business between the parties, e-mail messages and
facsimiles will be acceptable when addressed to the persons of record specified above.
SECTION 13. GENERAL PROVISIONS.
A. Communications and Annual Meetina.
1. General Communications. The Grantee and the Village believe that it is in their
mutual interests to maintain consistent and reliable means of communications regarding all matters under
this Franchise. Nothing in this Section precludes the parties in any way from conducting meetings and
communications not specifically provided in this Section on any other dates and times during the Term as
necessary, required, or otherwise desired.
2. Annual Meeting. Except as the Grantee and the Village may otherwise agree,
upon 45 days prior written notice from the Village to the Grantee given no more frequently than once
during each calendar year of the Term, the representatives of the Grantee and the Village will meet at the
offices of the Village or another mutually acceptable location ("Annual Meeting").
3. Annual Meeting Matters. At the Annual Meetings the Parties will review, as
necessary, any matters related to this Ordinance and the Franchise as generally identified by the Village
in its written notice provided pursuant to Paragraph 2 of this Subsection related to (i) the Gas System
and Gas System Work; (ii) issues that have arisen since the prior Annual Meeting regarding the Grantee's
activities conducted under the authority granted by this Ordinance, (iii) efforts and initiatives by the
Grantee or the Village, or both, to promote energy efficiency and cost savings related to the use of gas
supplied by the Grantee; and (iv) identification of anticipated future capital improvement programs by the
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Village and the Grantee in an effort to coordinate those programs whenever practical in an effort to
minimize costs for both the Village and the Grantee and to reduce public inconvenience (collectively,
"Annual Meeting Matters"). The Grantee's and the Village's representatives at Annual Meetings shall
include individuals with the knowledge, experience and authority required to address competently and to
seek to resolve the Annual Meeting Matters identified from discussion at the Annual Meeting.
4. Good Faith Efforts to Resolve Annual Meeting Matters. The Village and the
Grantee will constructively discuss the Annual Meeting Matters at the Annual Meetings. The goal of
these discussions is to ensure that the Grantee and the Village have sufficient information to address
and, if possible, resolve the Annual Meeting Matters and the Parties will share information reasonably
necessary for those purposes; provided, however that neither the Grantee nor the Village will be required
to respond to unduly burdensome information requests or to provide confidential or privileged information
to the other party. The parties will work in good faith to resolve Annual Meeting Matters on mutually
acceptable terms and to do so within a reasonable period of time. To the extent that resolution of an
Annual Meeting Matter is not otherwise provided by the terms of this Franchise, the parties may
memorialize their understandings related to resolution of Annual Meeting Matters through memoranda of
understanding, supplemental agreements, or other arrangements mutually agreed to.
B. Assianments of Rights by Grantee. All provisions of this Ordinance that are obligatory
upon, or which inure to the benefit of, NICOR GAS shall also be obligatory upon and shall inure to the
benefit of any and all successors and permitted assigns of NICOR GAS, and the word "Grantee"
wherever appearing in this Ordinance shall include and be taken to mean not only NICOR GAS, but also
each and all of such successors and permitted assigns. The Grantee may not assign any right it has
under this Ordinance without the prior express written authorization of the Village by ordinance or
resolution of the Corporate Authorities. The Village will not withhold that authorization if(a) the Assignee
is technically and financially capable of operating and maintaining the Gas System in the reasonable
judgment of the Village and (b) the Assignee assumes all of the obligations of the Grantee under this
Ordinance except as they may be amended in writing and approved by the Village.
C. Entire Agreement; Interpretation. This Ordinance embodies the entire understanding
and agreement of the Village and the Grantee with respect to the subject matter of this Ordinance and the
Franchise. This Ordinance supersedes, cancels, repeals, and shall be in lieu of the Previous Agreement.
D. Governing Law; Venue. This Ordinance has been approved executed in the State of
Illinois and will be governed in all respects, including validity, interpretation, and effect, and construed in
accordance with, the laws of the State of Illinois. Any court action against the Village may be filed only in
DuPage County, Illinois, in which the Village's principal office is located.
E. Amendments. Except as otherwise provided pursuant to Section 7 of this Ordinance, no
provision of this Ordinance may be amended or otherwise modified, in whole or in part, to be contractually
binding on Grantee, except by an instrument in writing duly approved and executed by the Village and
accepted by the Grantee by execution of a Consent Agreement consistent with Section 15 of this
Ordinance.
F. No Third-Party Beneficiaries. Nothing in this Ordinance is intended to confer third-party
beneficiary status on any person, individual, corporation, or member of the public to enforce the terms of
this Ordinance.
G. No Waiver of Rights. Nothing in this Ordinance may be construed as a waiver of any
rights, substantive or procedural, the Grantee or the Village may have under federal or State of Illinois law
unless such waiver is expressly stated in this Ordinance.
SECTION 14. VILLAGE AUTHORITY RESERVATION.
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The Village reserves, subject to the limitations of applicable federal and State of Illinois laws, (i)
its powers necessary or convenient for the conduct of the Village's municipal affairs and for the public
health, safety and general welfare; and (ii) its right to own and operate a gas utility in competition with the
Grantee. Notwithstanding the foregoing, the Village will not take any such action that would have the
effect of depriving Grantee of the rights, permissions and authorities granted to Grantee under this
Ordinance.
SECTION 15. CONSENT AGREEMENT.
Within ninety days after the Effective Date, the Grantee will file with the Village a written
agreement to accept and comply with the terms of this Ordinance as attached to this Ordinance as Exhibit
A ("Consent Agreement'), duly executed by authorized representatives of the Grantee. The Grantee's
failure to provide the Consent Agreement within ninety days after the Effective Date shall be deemed a
rejection of this Ordinance by the Grantee, and the rights and privileges herein granted shall absolutely
cease and terminate, unless, within ninety days after the Effective Date, the time period for the Grantee to
file the Consent Agreement is extended by the Village by ordinance duly passed for that purpose and the
Grantee has agreed in writing to such extension.
APPROVED THIS 26th day of January, 2016
Gopal G. Lalmalani
Village President
PASSED THIS 26th day of January, 2016
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
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Charlotte K. Pruss, )
Village Clerk )
STATE OF ILLINOIS )
COUNTY OF DUPAGE ) SS.
VILLAGE OF OAK BROOK )
I, , Village Clerk of the Village of OAK BROOK, Illinois, do hereby
certify that the foregoing is a true and correct copy of an Ordinance duly passed by the Board of Trustees
of said Village on the day of , 2016, and duly approved by the President of
said Village on the day of 120 16, the original of which Ordinance is now on
file in my office.
I do further certify that I am the legal custodian of all papers, contracts, documents and records of
said Village.
WITNESS my hand and the official seal of said Village this day of ,201 6.
Charlotte K. Pruss, Village Clerk
Village of Oak Brook, Illinois
(SEAL)
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EXHIBIT A
CONSENT AGREEMENT
Pursuant to Section 15 of that certain Natural Gas Franchise Ordinance duly passed by the
Village Board of Trustees of Oak Brook(the"Village")on and duly approved by
the President of the Village on (the "Ordinance"), a copy of which is attached hereto,
Northern Illinois Gas Company d/b/a Nicor Gas Company , an Illinois corporation hereby accepts and
agrees to comply with the Ordinance.
NORTHERN ILLINOIS GAS COMPANY D/B/A NICOR GAS COMPANY
By:
Name:
Title:
Date:
-12-
wy
tiolland & Knight
131 South Dearborn Street,30th Floor I Chicago,IL 60603 1 T 312.263.3600 1 F 312.578.6666
Holland&Knight LLP I www.hklaw.com
Peter M.Friedman
312.578.6566
peter.fhedman@hklaw.com
MEMORANDUM
Date: December 30, 2015
To: Northern Illinois Municipal Natural Gas Franchise Consortium Members
From: Peter M. Friedman, Consortium Counsel
Re: Executive Summary-- Model Franchise Ordinance
On December 14, 2015, the Steering Committee of the Northern Illinois Municipal
Natural Gas Franchise Consortium ("Consortium") unanimously approved a new model Natural
Gas Franchise Ordinance ("Model Ordinance"). The Model Ordinance was negotiated on
behalf of the Consortium with the Northern Illinois Gas Company (d/b/a Nicor Gas Company)
("Nicor").
This memorandum provides (i) important information regarding the required timing and
approval of the Model Ordinance by Consortium members and (ii) a summary of the key
financial and operational provisions of the Model Ordinance.
If you have any questions about any of these matters, please contact Mark Baloga (630-
571-0480, ext. 223 or mbaloga( .dmmc-coq org) or Kate Buggy (630-571-0480, ext. 225 or
kbuggy @dmmc-cog.org).
Adoption
• For each Model Ordinance to take effect, the Ordinance must be adopted by the
Consortium member and Nicor must sign a Consent Agreement that is attached to the
Ordinance as Exhibit A. As described further below, the important compensation
provisions of the Model Ordinance are triggered by the Ordinance taking effect. Further,
it is important for Nicor to see that the Model Ordinance is being adopted by the
Consortium members. Accordingly, the Steering Committee requests that Consortium
members adopt the Model Ordinance in January 2016.
• Each Consortium member has been provided a word version of the Model Ordinance,
tailored to the extent possible for each specific member.
• One addition that will have to be made by each member prior to adoption is to insert in
Section 12 of the Ordinance the appropriate contact information for purposes of notices
under the Ordinance.
• Each Consortium member most adopt the Model Ordinance pursuant to the member's
standard procedures for adoption of ordinances.
#38027050_v2
• After the Ordinance is adopted, the certification (the second to last page of the
document) should be completed and fully executed.
• As soon as the Model Ordinance has been adopted and certified, each Consortium
member should notify and provide a copy of the adopted Ordinance to their respective
Nicor representative.
• Also, please email Kate Buggy at kbuggya-gimmc-coq.org to confirm adoption of the
Ordinance.
Background
• Most gas franchises either have expired recently or are expiring soon.
• Almost all of these franchises are very old, with writing styles often unclear, incomplete,
and difficult to understand.
• These franchises include only basic, and now outdated, provisions. They do not
adequately address many of the issues that arise with modern utility facilities located in
crowded public rights-of-way.
• These franchises do not adequately protect the public health and safety. Nor do they
adequately protect the public rights-of-way.
Key Points Regarding Model Ordinance
• A municipality's rights-of-way are among its most important resources and most valuable
assets. The Model Ordinance includes new provisions designed to protect the
municipality's rights-of-way, including requirements on construction, restoration, and
maintenance.
• One of a municipality's foremost responsibilities is to protect the public's safety and
welfare. The Model Ordinance includes new provisions designed to better protect the
public health and safety, including emergency notice and response standards.
• The compensation provisions in the Model Ordinance better reflect the value of the
municipality's right-of-way. The municipality may choose among free gas for municipal
facilities or annual cash payments.
• The Model Ordinance includes modern provisions relating to annual meetings with Nicor,
capital improvement plans, information sharing, triggers for future amendments based
on Model Ordinance terms subsequently agreed to by Nicor.
• By working together as the Consortium, the member municipalities have been able to
negotiate with Nicor a new, standard franchise document that is clear, comprehensive,
and protective of the interests of both the municipalities and the gas companies.
Summary of Key Provisions of Model Ordinance
• Term (Section 3). The new franchise is for a term of 25 years (until January 1, 2041).
• Effective Date and Consent Agreement(Section 15). The effective date of the Model
Ordinance will be as of January 1, 2016, even though the Ordinance will not be adopted
#38027050 v2 -2-
until after that date. The Ordinance must be adopted no later than March 1, 2016.
However, as explained above, the Steering Committee urges each member to adopt the
Ordinance in January 2016.
Within 90 days of the Effective Date (March 31, 2016), Nicor is required to execute the
Consent Agreement attached to the Model Ordinance as Exhibit A. The purpose of this
Consent Agreement is to ensure that Nicor is contractually bound to comply with the
Model Ordinance.
• Compensation for Use of Rights-of-Way (Section 5). There are two options for
compensation for Nicor's use of the public rights-of-way under the Model Ordinance.
The first option ("Annual Payments") is an annual lump sum payment that Nicor will
make in cash to the municipality. The amount of the Annual Payment is based on the
following formula -- generally described as the municipality's "therm allocation" times
the "gas cost per therm." A municipality's therm allocation is determined by the
following parameters:
• 3.6 therms per person up to 10,000 of population
• 2.4 therms per person for the next 10,000 of population
• 1.2 therms per person for the next 80,000 of population
• 1.45 therms per person for the next 20,000 of population
• 1.8 therms per person for the population over 120,000
The gas cost per therm is the sum of (i) the actual three year average of the per therm
cost of gas plus (ii) the then-current general gas service cost. Each member has been
provided with the Annual Payment calculations based on the current population and gas
cost per therm.
The second compensation option ("Unbilled Gas") is for the municipality to receive free
gas for buildings, or parts thereof, used for municipal purposes. The maximum amount
of free gas to be provided cannot exceed the municipality's therm allocation. Upon
request, Nicor representatives will provide each municipality with historical usage
information to assist in determining which compensation option is best.
Significantly, no later than March 1, 2016, each municipality must notify Nicor in writing
whether it wants to receive Annual Payments or Unbilled Gas. If a municipality does not
provide this required notice, it will receive Annual Payments. Thereafter, a municipality
can change from Annual Payments to Unbilled Gas, or vice versa, every three years with
notice to Nicor. If no notice of a change is provided to Nicor, the compensation option
will remain unchanged for the subsequent three year period.
Annual Payments will be paid by Nicor during January of each year during the Term of
the franchise, except for 2016 when the Annual Payments will be paid in March.
• One-Time Renewal Payment (Section 5A1). Each Consortium member adopting the
Model Ordinance will receive a one-time cash renewal payment equal to 75 percent of
the municipality's therm allocation multiplied by the gas cost per therm. These one-time
renewal payments will be made by Nicor on or before March 31, 2016.
#38027050 v2 -3-
• Municipal Regulations (Section 413, 4C). The Model Ordinance requires Nicor to
utilize the public right-of-way in compliance with the Model Ordinance and with
"Requirements of Law" — a term defined in the Model Ordinance (Section 1) as "any and
all reasonable regulations which may now or hereafter be prescribed by general
ordinance of the Municipality with respect to the use of the Public Right-of-Way or the
conduct of Gas System Work"). This means that the Model Ordinance requires Nicor to
comply with local, generally applicable right-of-way, building, and tree regulations.
• Emergency Response (Section 4D). The Model Ordinance requires Nicor to provide
notice of emergencies to the municipality within 24 hours unless that is somehow not
practicable. Nicor and the municipality will provide to each other emergency 24-hour
contacts. Nicor is required to keep the municipality apprised of the status of the
emergency and when the emergency has been resolved.
• "Most Favored Nations" Clause (Section 7). If Nicor enters into an agreement with
another franchisor that includes compensation terms the municipality believes are more
advantageous or protective than the provisions of the Model Ordinance, then the
municipality can choose to incorporate those provisions into Model Ordinance.
• Accounts and Records (Section 6). The Model Ordinance requires Nicor to provide
the municipality, upon request, with annual information on Nicor's gross operating
revenues within the municipality, broken down among various categories of users.
• Insurance (Section 9). The Model Ordinance requires Nicor to obtain and maintain
various types of standard insurance against liabilities assumed under the Model
Ordinance in the event that Nicor's financial condition would significantly worsen to the
extent that its stockholder equity falls below $50 million.
• Annual Meeting (Section 13). The Model Ordinance requires Nicor to participate in an
annual meeting upon the request of the municipality. The matters to be addressed at
annual meetings include gas system work, current issues regarding Nicor's use of the
public right-of-way, efforts to promote energy efficiency and cost savings related to the
use of gas supplied by Nicor, and anticipated capital improvement projects and
coordination with the municipality related to those projects. Nicor and municipal
representatives at annual meetings must have knowledge, experience, and authority to
address and resolve issues discussed at the meeting. The Model Ordinance obligates
the parties to work in good faith to resolve issues raised at the annual meetings.
• Capital Improvement Plans and Information Sharing (Section 4E2). The Model
Ordinance requires Nicor to establish and maintain (and provide the municipality with
access to) an information sharing platform for, among other things, capital improvement
plans, gas system work, gas facility location information and maps, and work and
maintenance status information.
• Indemnification (Section 8). The Model Ordinance contains mutual indemnification
provisions. With regard to Nicor, these provisions require the gas company to protect
the municipality against claims arising out of the gas company's failure to comply with
the Model Ordinance or any negligent, unlawful, or intentional wrongful acts related to
work in and use of the public right-of-way.
#38027050 v2 -4-
Northern Illinois Municipal Natural Gas Franchise Consortium
Therm/Cash Equivalent Estimate-Draft for Discussion Purposes Only
2010 Total Therms 20%Increase One Time 75% Annual Cash First Year 2-Year Benefit Total
Member Census w/20% cash equiv.at Bonus at Equiv. Benefit w/ w/75%Bonu Assessments
Pop. Increase $.51/Therm I $.51/Therm I Differential 75%Bonus Paid
Addison 36,942 80,330.40 $40,968.50 $30,726.38 $6,828.08 $37,554.46 $44,382.55 $8,618.87
Bartlett 41,208 85,449.60 $43,579.30 $32,684.47 - $7,263.22 $39,947.69 $47,210.90 $8,729.16'
Bloomingdale 22,018 62,421.60 $31,835.02 $23,876.26 $5,305.84 $29,182.10 $34,487.93 $6,635.83
Burr Ridge, 10,559 37,341.60 $19,_044.22 $14,283.16 $3,174.04 $17,457.20 $20,631.23 $5,066.70
Carol Stream 39,711 83,653.20 $42,663.13 $31,997.35 $7,110.52 $39,107.87 $46,218.39 $9,248.91
Cary 1,8,271 55,850.40 $28,483.70 $21,362.78 $4,747.28 $26,110.06 $30,857.35 $5,780.16
Clarendon Hills 8,427 30,337.20 $15,471.97 $11,603.98 $2,578.66 $14,182.64 $16,761.30 $4,677.02
Crystal Lake 40,743 84,891.60 $43,294.72 $32,471.04 $7,215.79 $39,686.82 $46,902.61 $8,909.38',
Elburn 5,602 20,167.20 $10,285.27 $7,713.95 $1,714.21 $9,428.17 $11,142.38 $4,001.01
Elk Grove Village 33,127 75,752.40 $38,633.72 $28,975.29 $6,438.95 $35,414.25 $41,853.20 $8,453.55
Elmhurst 44,121 88,945.20 $45,362.05 $34,021.54 $7,560.34 $41,581.88 $49,142.22 $9,572.57
Glendale Heights 34,208 77,049.60 $39,295.30 $29,471.47 $6,549.22 $36,020.69 $42,569.90 $8,041.04'
Glen Ellyn 27,450 68,940.00 $35,159.40 $26,369.55 $5,859.90 $32,229.45 $38,089.35 $7,377.29
Hoffman Estates 511,895 98,274.00 $50,119.74 $37,589.81 $8,353.29 $45,943.10 $54,296.39 $10,510.26
LaGrange 15,550 49,320.00 $25,153.20 $18,864.90 $4,192.20 $23,057.10 $27,249.30 $5,790.88
LaGrange Park 13,579 44,589.60 $22,740.70 $17,055.52 $3,790.12 $20,845.64 $24,635.75 $5,468.76'
Lincolnwood 12,590 42,216.00 $21,530.16 $16,147.62 $3,588.36 $19,735.98 $23,324.34 $5,338.35
Lisle 22,390 62,868.00 $32,062.68 $24,047.01 $5,343.78 $29,390.79 $34,734.57 $6,567.17
Lockport 24,839 65,806.80 $33,561.47 $25,171.10 $5,593.58 $30,764.68 $36,358.26 $5,732.81
Lombard 43,165 87,798.00 $44,776.98 " $33,582.74 $7,462.83 $41,045.57 $48,508.40 $9,512.69
Montgomery 18,438 56,251.20 $28,688.11 $21,516.08 $4,781.35 $26,297.44 $31,078.79 $4,379.13
Morton Grove 23,270 63,924.00 $32,601.24 $24,450.93 $5,433.54 $29,884.47 $35,318.01 $6,743.90
Normal 52,497 98,996.40 $50,488.16 $37,866.12 $8,414.69 $46,280.82 $54,695.51 $9,938.01
Oak Brook 7,883 28,378.80 $14,473.19 ;, $10,854.89 $2,412.20 $13,267.09 $15,679.29 $4,829.10'
Oakbrook Terrace 2,134 7,682.40 $3,918.02 $2,938.52 $653.00 $3,591.52 $4,244.53 $3,937.50
Roselle 22,763 63,315.60 $32,290.96 $24,218.22 $5,381.83 $29,600.04 $34,981.87 $6,836.37
Schaumburg 74,227 125,072.40 $63,786.92 $47,840.19 $10,631.15 $58,471.35 $69,102.50 $14,116.05
Schiller Park 11,793 40,303.20 $20,554.63 $15,415.97 $3,425.77 $18,841.75 $22,267.52 $5,267.52'
Skokie 64,784 113,740.80 $58,007.81 $43,505.86 $9,667.97 $53,173.82 $62,841.79 $12,439.55
Tinley Park 56,703 104,043.60 $53,062.24 $39,796.68 $8,843.71 $48,640.38 $57,484.09 $11,855.22,
Warrenville 13,140 43,536.00 $22,203.36 $16,652.52 $3,700.56 $20,353.08 $24,053.64 $5,478.23
Wayne 2,431 8,751.60 $4,463.32 $3,347.49', $743.89 $4,091.37 $4,835.26 $3,914.81
West Chicago 27,086 68,503.20 $34,936.63 $26,202.47 $5,822.77 $32,025.25 $37,848.02 $6,885.68
Wheaton 52,894 99,472.80 $50,731.13 J $38,048.35_ $8,455.19 $46,503.53 $54,958.72 $11,334.88
Willowbrook 8,540 30,744.00 $15,679.44 $11,759.58 $2,613.24 $14,372.82 $16,986.06 $4,866.01
Winfield 9,080 32,688.00 $16,670.88 $12,503.16' $2,778.48 $15,281.64 $18,060.12 $4,831.33'
Woodridge 32,971 75,565.20 $38,538.25 $28,903.69 $6,423.04 $35,326.73 $41,749.77 $7,925.31
Yorkville 16,921 52,610.40 $26,831.30 $20,123.48` $4,471.88 $24,595.36 $29,067.25 $4,479.12
TOTALS 1,043,950 2,415,582.00 $1,231,946.82 $923,960.12 $205,324.47 $1,129,284.59 $1,334,609.06 $274,090.13
Notes:
1. Populations are from 2010 US Census. Results will change is a different population is used.
2. Proposed Therm Formula is 3.6 Therms per person for first 10,000 population,2.4 Therms per person for next 10,000, and 1.2 Therms per
person for next 80,000.
3. Proposal includes a one-time"Bonus"payment for all Consortium members equal to 75%of the Cash Equivalent of the Therm Allocation for 1
year.
4. $0.51 per Therm cash equivalent was reported in July 2015 as the cost quivalent used by Nicor.
5. First Year Benefit is the Signing Bonus plus the 20%Cash Differential that would be received in the first year.
6. 2-Year Benefit is the Signing Bonus plus the 20%Cash Differential for 2 years,assuming no change in population or$0.51/Therm rate.
7. Total Assessments includes the$500 Initial Ante plus the 3 subsequent Assessments.
NATURAL GAS USAGE
FRANCHISE ACCOUNTS
Account Number Address 2015 Therms
0287011000 PW Building- 3003 Jorie Blvd 15,178.62
2667011000 Fire Station 93 - 725 Enterprise Drive 12,154.68
3817758320 BGC- 1200 Oak Brook Road (meter 1) 11,076.87
Total Therms for Franchise Accounts 38,410.17
Total Shared Franchise Therms Allotted Yearly: 27,534
Franchise Therm Value ($.45/therm) $12,390
Cash Value ($.56/therm) $15,419
NON FRANCHISE ACCOUNTS
Account Number Address 2015 Therms
71046010006 BGC- 1200 Oak Brook Road (meter 2) 14,039.35
57176010007 Library- 600 Oak Brook Road 13,329.27
52870110005 Golf Clubhouse - 2606 York Road 8,033.38
92836900008 SC Maint- 810 Oak Brook Road 2,907.35
26100010003 Old SC Admin - 700 Oak Brook Road 2,420.96
84770110000 B&T- 800 Oak Brook Road 26,706.09
Total Therms for Non Franchise Accounts 67,436.40
Total Therms Village-Wide 105,846.57
Nicor Gas'
An AGL Resources Company
1844 Ferry Road
Naperville,IL 60563
www.nicorgas.com
March 18,2016
Village of Oak Brook
Ms. Rosemary Kane
1200 Oak Brook Road
Oak Brook, IL 60523
Dear Ms.Kane,
Enclosed is your copy of the Consent Agreement whereby Nicor Gas accepts and agrees to comply with your recently
approved Franchise Ordinance.
Please feel free to contact me with any questions by calling 630-317-1773.
Regards,
kW� AWI�y
Karen Gustafson
Manager,Community Relations&Economic Development
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G 0 A r
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Village of
Oak Brook February 24, 2016
1200 Oak Brook Road
Oak Brook,IL 60523-2255
Website
www.oak-brook.org
Administration
630.368.5000 Mr. Neil Malone
FAX 630.368.5045 y
Northern Illinois Gas Company
Community 1844 Ferry Road
Development Naperville, Illinois 60563
630.368.5101
FAX 630.368.5128
Re: Gas Franchise Resolution/Agreement—Village of Oak Brook
Engineering
Department Dear Mr. Maloney:
630.368.5130
FAX 630.368.5128
The above-mentioned Resolution/Agreement was approved by the
Fire Department President and Board of Trustees of the Village of Oak Brook on January
630.368.5200 y g g 26, 2016 and signed b the Village President and the Village Clerk.
FAX 630.368.5251 g
Police Department Enclosed please find two originally-signed Resolutions. Please affix
630.368.8700 signatures to each of them and return one original to me in the envelope
FAX 630.368.8739 provided.
Public Works
Department Thank you for your prompt attention to this matter.
630.368.5270
FAX 630.368.5295 Sincerely,
Oak Brook
Public Library
600 Oak Brook Road �Rosema . Kane
Oak Brook,IL 60523-2200 Legal/Administration Departments
630.368.7700
FAX 630.368.7704
Oak Brook Sports Core
Bath&Tennis Club
700 Oak Brook Road
Oak Brook,IL 60523-4600
630.368.6420
FAX 630.368.6439
Golf Club
2606 York Road
Oak Brook,IL 605234602
630.368.6400
FAX 630.368.6419