2019-15 Ordinance Granting Permanent Easement to Ameren Illinois Company for the Installation of a Gas Regulator Station

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Item Coversheet 3/28/2019 1:45:08 PM � Public Works DATE: 3/21/2019 MEMO: 2019-17 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Scot Wrighton,City Manager Matt Newell,P.E.,Public Works Director SUBJECT: Ordinance Granting Permanent Easement to Ameren Illinois Company for the Installation of a Gas Pipeline SUMMARY RECOMMENDATION: It is recommended that the City Council approve the following ordinances authorizing the Mayor to sign and the City Clerk to attest to the conveyance of permanent easements on City property to Ameren Illinois Company. 1. Ordinance granting a permanent easement for the installation of a gas pipeline. 2. Ordinance granting a permanent easement for the installation of a gas regulator station. BACKGROUND: The subject property and easements are located on Lincoln Park Drive, west of Lake Decatur Dam,north and south of the Sangamon River as shown on the attached location map. The property north of the river was the original water treatment plant site and the properties south of the river were the original lime sludge lagoons. The properties have an existing easement for the gas pipeline and regulator station that was constructed in the 1930's. The City does not currently use the properties for operations. Ameren Illinois approached the City with their plan to replace the existing 10" gas main with a new 10"gas main and requested that their existing easements on the City's properties be expanded to accommodate the installation of the new gas main and to expand an existing regulator station. Ameren obtained an appraisal for the proposed easements from Webster and Associates, Inc. which recommended a compensation of$2,700 for the pipeline easement and$900 for the regulator station easement. The City is currently under contract with Stinger Professional Services, Inc. for an independent appraisal as per City policies. The appraisal is scheduled to be completed by March 31, 2019. Ameren has agreed to pay the higher appraisal including the cost of the second appraisal up to a maximum of$25,000. If the higher appraisal exceeds $25,000 the City will renegotiate with Ameren. LEGAL REVIEW: The Legal Department was given the easements for review and they were approved by Corporation Counsel on March 1, 2019. PRIOR COUNCIL ACTION: There have been no prior Council actions regarding these proposed easements. POTENTIAL OBJECTIONS: None. INPUT FROM OTHER SOURCES: Ameren Illinois Company Page 1 of 2