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A Resolution Approving a Compensation and Indemnification Agreement for Landscaping and Paving Damage with Northern Illinois Gas Company d/b/a Nicor Gas Company for the Resurfacing of North Boulevard in an Amount not to Exceed $70,000 and Authorizing its Execution
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Introduction
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Nicor recently completed gas main improvements generally between Kenilworth and Euclid Avenues, from North Boulevard to Lake Street, in conjunction with the Oak Park Avenue Streetscape project. Nicor has completed the majority of the restoration of the impacted areas outside of the limits of the Village’s streetscape project except on North Blvd. Instead of having Nicor just patch North Blvd. from Kenilworth to Oak Park Ave., this agreement allows Nicor to pay the Village the $70,000 they would have spent for their roadway patching so that the Village can fully resurface North Blvd. as part of the streetscape project, which is estimated to cost the Village approximately $72,000 based on the contract unit prices.
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Recommended Action
Adopt the Resolution.
Prior Board Action
There is no prior Board action associated with this item.
Background
Nicor recently completed a large project to replace its older infrastructure between Kenilworth Avenue and Euclid Avenue, from North Boulevard to Lake Street, in conjunction with the Oak Park Avenue Streetscape project. This work was needed so that Nicor could transition from its older low-pressure system to the current high-pressure system, which is needed to serve current and future customers and to replace old infrastructure in advance of the Village streetscape project on Oak Park Avenue. The newer development at 835 Lake Street has also been waiting for these Nicor improvements so that Nicor could provide them adequate gas service for their emergency generator.
Nicor recently completed all of the gas work and the associated restoration of the various areas impacted by the work outside of the Village’s streetscape limits. These areas include the replacement of the alleys west of Oak Park Avenue north of North Boulevard and multiple sidewalk and curb areas on Kenilworth and North Boulevard. Nicor was scheduled to do pavement patches in the North Boulevard roadway as part of their restoration, but Village staff requested payment in lieu of these patches so that the roadway could be fully resurfaced by the Village’s streetscape contractor, A Lamp Concrete. Nicor generally pays a high price for pavement patches as part of their restoration work, and the cost to do the required patches in the roadway is $70,000. This agreement allows Nicor to pay the Village for the costs they would have incurred for these pavement patches. The Village's streetscape project has roadway resurfacing items in the contract at very competitive prices. Based on the unit prices, it is estimated to cost the Village approximately $72,000 to resurface North Boulevard from Kenilworth to the streetscape project’s limits west of Oak Park Avenue. North Boulevard was last resurfaced in 2013 and can benefit from the resurfacing at this time.
It is anticipated that there are sufficient savings in the streetscape project to cover the $72,000 in additional costs for resurfacing North Boulevard, and a contract amendment should not be required to increase the contract amount. However, if a contract amendment is required to increase the contract with A Lamp for this resurfacing work, a future Board item would be presented to increase the contract using these $70,000 in revenues to fund the extra work. Resurfacing is planned to occur in early November as part of the streetscape project.
Timing Considerations
Adoption at this time will allow for the resurfacing of North Boulevard within the streetscape project’s schedule. Resurfacing is planned for completion in early November.
Financial Impact
There is no budget impact associated with this item. The $70,000 revenue received from Nicor per this agreement will be deposited into the Capital Improvement Fund revenue account 3095.43780.101.441462 and then transferred to the FY26 Capital Improvement Fund, Public Works - Engineering, Capital Improvements, Streetscaping expense account no. 3095-43780-101-570959 to fund the costs associated with the resurfacing of North Boulevard as part of the current streetscape project.
It is anticipated that this additional resurfacing work will be able to be completed within the originally awarded contract amount to A Lamp Concrete Contractors for the streetscape project due to savings on various items on the project. However, if a contract amendment is required to increase the contract with A Lamp for this resurfacing work, a future Board item would be presented to increase the contract using these $70,000 in revenues to fund the extra work.
Operations Impact
There is no operating impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Adopt the Resolution, which will allow for the full-width resurfacing of North Boulevard from Kenilworth to Oak Park Avenue instead of just patching areas impacted by Nicor’s work, while at almost no cost to the Village.
Advantages:
• This agreement will allow for the Village to receive revenues to offset costs for resurfacing the roadway.
Disadvantages:
• There are no disadvantages to this recommendation.
Alternatives
Alternative 1:
The Board can delay action to gain additional information.
Advantages:
• Board Members would be presented with the additional information they requested.
Disadvantages:
• The timing of the eventual Board action could impact the desired implementation schedule.
Alternative 2:
The Board can vote down the Resolution.
Advantages:
• There are no advantages to this alternative.
Disadvantages:
• North Boulevard would remain patched instead of resurfaced. The Village would need to fund the future resurfacing work on North Boulevard, which would likely be in the next 2-4 years.
Anticipated Future Actions
There are no anticipated future actions in relation to this item.
Prepared By: Bill McKenna, Village Engineer/Assistant Public Works Director
Reviewed By: Rob Sproule, Public Works Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Nicor Agreement