HomeMy WebLinkAboutRes 02-81 01/20/1981
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RESOLUTION NO.
2-81
A RESOLUTION AUTHORIZING A SETTLEMENT IN CASE
NO. 78CH 5555 (MSD)
WHEREAS, the Metropolitan Sanitary District of Greater
Chicago (hereafter "the District.") has filed in the Circuit
Court of Cook County an action entitled Metropolitan Sani-
tary District of Greater Chicago v. Village of Mount Prospect,
Cause No. 78 CH 5555, to recover a sum of money alleged to
have been withheld by the Village in breach of an express
written agreement; and
WHEREAS, the Village of Mount Prospect in the aforesaid
action has filed a counterclaim alleging that funds in the
possession of the District collected and held pursuant to
a bond ordinance adopted by the District on April 2, 1958,
have been unlawfully diverted contrary to the express terms
of the bond ordinance and the stqtutes of the State of Illinois
pursuant to which the said ordinance was adopted; and
WHEREAS, the duly authorized officials of the Village and the
District have conducted discussions looking toward a compro-
mise of the matters at issue between the Village and the Dis-
trict and have negotiated terms of agreement for submission
to and consideration and approval by the corporate authorities
of the District and the Village; and
WHEREAS, the President and Board of Trustees of the Village of
Mount Prospect have been advised that the Board of Trustees of
the District did, on January 8, 1981, approve a compromise and
settlement of the aforesaid litigation and other matters in
dispute between the District and the Village on the terms
hereinafter set out; and
WHEREAS, the President and Board of Trustees of the Village of
Mount Prospect have considered the proposed terms of compro-
mise, hereinafter set out, and have determined that compromise
of the matters at issue in the litigation, and other matters
of dispute between the District and the Village, hereafter
described, would be in the best interests of the residents
of the Village of Mount Prospect and, therefore, the President
and Board of Trustees desire to approve the same and authorize
the preparation of such documentation as may be necessary to
effectuate such compromise.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY,
ILLINOIS, AS FOLLOWS:
SECTION ONE: The President and Board of Trustees find as
facts the matters hereinabove set forth.
SECTION TWO: The President and Board of Trustees do by this
resolution approve the compromise and settlement of the matters
at issue in Metro olitan Sanitar District of Greater Chica 0
Village of Mount Prospect, Cause No. 78 CH 5555, pending on
appeal in the Illinois Appellate Court for the First District
as Docket No. 80-0667, and other outstanding differences and
disputes between the District and the Village on the follow-
ing terms and conditions:
1)
The Village of Mount Prospect will pay to
the District the sum of $192,500.87 claimed
by the District to be due to it and held by
the Village in escrow pursuant to order of
the Circuit Court of Cook County together
with the interest accrued thereon.
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2)
The District will reimburse the Village
for the cost and expense of maintenance
of the District's sanitary sewer system
in Mount Prospect in the amount of $74,665.45.
3)
The District will call all of the out-
standing revenue bonds issued for the
construction of the District's local
sanitary sewer system in Mount Prospect
on the next date that such bonds are
callable and will retire such bonds,
and pay the interest that may then be
due thereon from funds held by the
District in the Sewer Revenue Fund
(Mount Prospect Area).
4)
The District will convey its local
sanitary sewer system in Mount Prospect
to the Village for the sum of $1.00 by
a good and sufficient bill of sale and
will execute such other documents as
may be necessary to effectuate the con-
veyance.
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The District will pay over to the Village
any surplus remaining in the Sewer Revenue
Fund (Mount Prospect Area) after the pay-
ment of outstanding bonds and the interest
thereon and the deduction of such costs
and expenses as the responsible officials
of the District and the Village may agree
reasonably should be deducted, provided
that in no event shall the amount of such
surplus paid to the Village be less than
$350,000.
6)
From and after the conveyance of the said
local sewér system the Village will be
responsible for the operation, maintenance,
repair and rehabilitation of the said sewer
system. .
7)
The Village understands that the District
acknowledges that the said local sewer system
does not presently comply with the regula-
tions of the Environmental Protection Agency
and the District itself with respect to
inflow and infiltration and that the District
will allow the Village a reasonable time to
bring the said system into compliance with
such regulations.
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The retirement of the outstanding bonds,
the payment of the surplus remaining, and
the conveyance of the local sanitary sewer
system to the Village will take place on
or before April 1,1981.
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SECTION THREE: The Mayor, Village Engineer, and the General
Counsel to the Village be and they are hereby authorized and
directed to prepare and execute such documents as may be
necessary to effectuate settlement of the aforesaid litigation
on the terms hereinabove set forth and the General Counsel of
the Village be and he is hereby authorized and directed to
enter into such stipulations and consent to the entry of such
orders as may be necessary to postpone the briefing schedule
and further hearings in the above-entitled cause pending
implementation of the above terms of settlement.
SECTION FOUR: This resolution shall be in full force and
effect from and after its passage and approval in the manner
provided by law.
PASSED THIS
20th
DAY OF
January
,1981.
AYES:
Farley, Floros, Miller, Murauskis, Richardson, Krause
NAYS:
None
ABSENT: Wattenberg
APPROVED THIS
20th
DAY OF
January
,1981.
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Ca~.<'. . . ta...<.~
Villag ípresident
ATTEST:
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Village Clerk -