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HomeMy WebLinkAbout9.1 MOTION TO FURTHER CONTINUE CONSIDERATION OF A RESOLUTION AUTHORIZING THE VILLAGE MANAGER TO SIGN AN INTERGOVERNMENTAL AGREEMENT WITH THE NORTHWEST WATER COMMISSION AND THE NORTHWEST SUBURBAN MUNICIPAL JOINT ACTION WATER AGENCY FOR THE CONSTRUCTION ANDMr�GauC �'d'+rt;�iect Subject MOTION TO FURTHER CONTINUE CONSIDERATION OF A RESOLUTION AUTHORIZING THE VILLAGE MANAGER TO SIGN AN INTERGOVERNMENTAL AGREEMENT WITH THE NORTHWEST WATER COMMISSION NORTHWEST SUBURBAN MUNICIPAL WATER AGENCY FOR THE CONSTRUCTION AND OPERATION OF INTERCONNECTION UNTIL OCTOBER BOARD AGENDA Meeting September PROSPECT VILLAGE BOARD Fiscal Impact true Dollar Amount $3,641,52.00 Budget Source American Rescue Plan Act of 2021 Category VILLAGEMANAGER'S REPORT Type Action Item This memorandum transmits an intergovernmental agreement (IGA) between the Northwest Water Commission (NWC), the Northwest Suburban Municipal Joint Action Water Agency (NSMJAWA), and the Village of Mount Prospect (the Village) regarding the construction and operation of an emergency water system interconnection. The proposed interconnection will be constructed on Elmhurst Avenue between Kensington Road and Highland Street. A NWC transmission main in the Kensington Road right-of-way will be tapped and connected to existing NSMJAWA transmission mains located in the Elmhurst Avenue and Highland Street rights-of-way. Exhibit A presents this concept in greater detail. By operating valves installed along the interconnection piping, NWC can deliver up to 7 million gallons of water per day (MGD) to the Village and NSMJAWA can deliver a like amount to NWC should the need arise. This rate of delivery will satisfy the Village's maximum day requirements and provide approximately one-third of NWC's average daily demand. 1 Due to substantial differences in operating pressures, NWC cannot deliver water to the NSMJAWA system. Therefore, NSMJAWA will not be participating in the cost of the interconnection. Although they receive no benefit from the interconnection, they are party to the agreement because they are allowing existing NSMJAWA infrastructure to be utilized for the improvements and they have agreed to provide NWC with an emergency source of water should their normal connection to the City of Evanston fail. The distribution of costs is delineated in Exhibit E. The total estimated cost to construct the interconnection is $6,205,250. This estimate includes construction engineering and a contingency allowance. The Village will be responsible for $3,641,652 and NWC will be responsible for $1,839,652. Both entities will share equally in the construction costs except for the booster pumping station. The Village will be the sole payer for the booster pumping station improvements because the increased pumping capacity is necessary to effectively convey water throughout the Village -owned water distribution system. NWC realizes no benefit from the pumping improvements. Staff proposes to fund the Village's share of proposed improvements utilizing American Rescue Plan Act of 2021 (ABPA) funds allocated for this purpose. Presently, $5.5 million of ARPA grant proceeds have been escrowed to pay for this project. The NSMJAWA Executive Committee, comprised of member village managers, has already approved this IGA. The NSMJAWA Board of Directors, comprised of member mayors and elected officials, considered and approved this agreement on August 24, 2022. The NWC plans to discuss the IGA at the regularly scheduled September meeting of the agency's Executive Board. Attached please find a resolution that authorizes the Village Manager to sign the IGA on the Village's behalf once it has reached final form and provided it substantially resembles the transmitted document. Although staff from each participating agency have recommended execution of the IGA in its current iteration, minor modifications to form and function are anticipated since the document must be approved by governing boards of three (3) distinct organizations. For this reason, staff recommends that the Village Manager be granted some leeway to sanction minor changes as the document moves through the disparate approval processes. Once fully executed, staff anticipates that final design engineering will be completed this fall, bids will be let in the winter, construction will start next spring, and final completion expected in late summer 2023. Alternatives 1. Approve a motion to further continue consideration of a resolution authorizing the Village Manager to sign an intergovernmental agreement with the Northwest Water Commission and the Northwest Suburban Municipal Joint Action Water Agency for the 2 construction and operation of an emergency water system interconnection until the October 4th agenda. 2. Action at the discretion of the Village Board. Staff Recommendation Staff recommends that the Village Board approve a motion to further continue consideration of a resolution authorizing the Village Manager to sign an intergovernmental agreement with the Northwest Water Commission and the Northwest Suburban Municipal Joint Action Water Agency for the construction and operation of emergency water system interconnection until the October 4th Village Board agenda. ATTACHMENTS: NWC NWSMJAWA VOMP IGA FOR EMERGENCY WATER INTERCONNECTION DRAFT 8 08- 01-2022.pdf Exhibit A - Process Flow Diagram. pdf Exhibit B - Village System Map.pdf Exhibit C - NWC Customers and Interconnects -Summary Figure.pdf Exhibit D - Interconnection Ownership Diagram.pdf Exhibit E - Allocation of Construction Costs.pdf Resolution iga nwatercom mission and jawa.pdf 3 INTERGOVERNMENTAL AGREEMENT This Intergovernmental Agreement (the "Agreement") is made and entered into by and between the Northwest Water Commission ("NWC"), the Northwest Suburban Municipal Joint Action Water Agency ("NSMJAWA) and the Village of Mount Prospect, an Illinois municipal corporation (the "Village") (collectively "Parties"). RECITALS WHEREAS, the 1970 Constitution of the State of Illinois, Article VII, Section 10, authorizes units of local government to contract or otherwise associate among themselves in any manner not prohibited by law or ordinance; and WHEREAS, the provisions of the Intergovernmental Cooperation Act, 5 ILCS 220/1 et seg., authorizes and encourages intergovernmental cooperation; and WHEREAS, the NWC, NSMJAWA, and the Village are units of government, or instrumentalities and/or agencies of local government, within the meaning of the 1970 Constitution of the State of Illinois, Article VII, Section 10, having the power and authority to enter into an intergovernmental agreement; and WHEREAS, the NWC operates a waterworks System to transport Lake Michigan water purchased from the City of Evanston to the water systems of its members and customers; and WHEREAS, NSNIJAWA operates a waterworks System to transport Lake Michigan water purchased from the City of Chicago to the water systems of its members and customers; and WHEREAS, the Village owns and operates a waterworks system that normally and customarily receives its drinking water supply from NSNIJAWA; and WHEREAS, the NWC and the Village jointly conducted engineering and feasibility studies regarding an emergency water system interconnection by and between the NWC and the Village that could supply either Party with water in an emergency situation; and WHEREAS, the NWC, NSNIJAWA, and the Village collectively agree that the most effective and beneficial emergency water system interconnection design utilizes existing NSMJA'WT A piping as depicted in Exhibit A to transfer water between NWC and the Village; and WHEREAS, the NWC and the Village entered into an intergovernmental agreement to prepare final design engineering plans and specifications for construction of a `eater system interconnection by and between the NWC and the Village utilizing existing NSMJAWA piping that could supply either the NWC or the Village 11 with water in an emergency situation; and WHEREAS, the NWC, NSNIJAWA, and the Village now believe it would benefit their mutual interests to construct and operate an emergency water interconnection between NWC and the Village, using existing NSMJAWA piping; and 4 WHEREAS, the NWC, NSMJAWA, and the Village also find it is in their interests to enter into an agreement setting forth their understanding for sharing the costs, expenses, and other obligations related to the 'Work and to the operation of the emergency water system interconnection. WHEREAS, by the execution of this agreement, the NWC, NSMJAWA, and the Village retain rights to ownership and operation of their respective water system, except as expressly provided for, and only to the limited extent so provided for in this Agreement; NOW, THEREFORE, in consideration of the promises, covenants, terms and conditions set forth in this Agreement, the NWC, NSMJAWA, and the Village hereto agree as follows: Section 1. Incor2oration of Recitals. The above recitals are incorporated into this Agreement as if fully set forth herein. Section 2. Definitions. The following words and phrases shall have the following meanings when used in this agreement: A. "Agreement" means this emergency interconnection agreement. B. "NWC Rate" means the applicable retail customer rate as established from time to time by NWC. This is the rate paid by the Village of Mount Prospect to the NWC when the former receives water through the emergency water system interconnection. The current rate is $1.99 per 1,000 gallons (May 2022), subject to annual amendment by NWC based on a pro -rata increase of NWC's cost of water or reasonable operation costs. Written notice of any annual amendment shall be provided to the Village along with all documentation justifying the increase. This rate is based on a (1) capital charge based on current capacity which is presently $0.69/1000 gallons; (2) operation and maintenance costs of the NWC based upon actual usage which is presently $1.30/1000 gallons; and (3) cost charged by the City of Evanston, that are not included in the operation and maintenance costs charged pursuant to item (2) above (collectively the "rate formula"). The adjustment to the rate will be examined by the NWC and subject to adjustment by the NWC pursuant to the rate formula set forth Herein. The unit of measure for potable water delivered shall be gallons of water, U.S. standard liquid measure, and all measuring devices shall be so calibrated unless the NWC and the Village agree otherwise in writing. Should it become necessary or desirable to use other units of measure, the basis of conversion shall be that 7.48 gallons is equivalent to one cubic foot. C. "NSMJAWA Rate" means the applicable average monthly retail customer rate charged by NSMJAWA. This is the average rate paid by NSMJAWA member communities during the time period the NWC receives water through the emergency water system interconnection. The rate for May 2022 was $5.93 per 1,000 gallons. D "Customer System" means the waterworks system that receives potable water from an Emergency Supplier. For the purposes of this agreement, both NWC and the Village can act as customer systems. That is, both systems can receive water through the emergency water system interconnection. The Village's customer system is described in Exhibit B. The NWC's customer system is described in Exhibit C. NSMJAWA is not considered a customer system. 2 5 E. "Connection Facilities" means those portions of the customer system between the point of delivery and influent side of the customer's existing waterworks, which facilities are depicted as Exhibit D to this Agreement. Upon completion of the emergency water system interconnection improvements, NWC will own and maintain its customer connection facilities and the Village will own and maintain its customer connection facilities. F. "Emergency Use of Water". Upon completion of the emergency water system interconnection improvements, NWC and the Village shall be authorized to utilize the emergency water system interconnection improvements to supplement their respective potable water supply during emergency use of water events by drawing upon the potable w ater supply made available to each via the emergency water system interconnection improvements and subject to the terms set forth herein. Specifically, the NWC can receive emergency service from NSMJAWA via the emergency water service interconnection improvements. The Village can also receive emergency service from NWC via the emergency `eater service interconnection improvements. For the purposes of this agreement, NSMJAWA is not an intended recipient of emergency service For the purposes of this agreement, an "Emergency Use of Water" event shall be defined as a temporary period of time, not to exceed 30 days, during which either the NWC or the Village anticipates not being able to meet operating needs without the use of such emergency interconnect. G. "Emergency Service" means all water supplied to a customer system, either NWC or the Village, pursuant to this Agreement. H. "Emergency Water System Interconnection Improvements" includes the connection facilities owned and maintained by NWC, the connection facilities owned and maintained by the Village, and the connection facilities jointly owned by both the NWC and the Village. It also includes all of the tasks delineated in Section 3 (scope of the work). L "Emergency Water system Interconnection Improvements Cost" means (a) the full actual cost incurred by the all reasonable legal, engineering, consulting and administrative fees, costs and expenses associated therewith, and the full actual cost incurred in connection with the final design, bidding, contracting, managing and actual construction of the emergency water system interconnection improvements, including without limitation equipment required for the operation of the reasonable administrative, supervisory, inspection, engineering, surveying and legal fees, costs and expenses associated therewith; (b) the acquisition of lands, easements and rights of way over lands and waters necessary for the Interconnection Facilities, and all reasonable administrative, title, surveying and legal fees, costs and expenses associated therewith; and (c) mutually agreed reasonable costs for the review and processing of plans and agreements for the emergency water system interconnection improvements, including without limitation all legal, engineering, consulting and administrative fees, costs and expenses associated therewith. "Lake Water" means potable, filtered water drawn from Lake Michigan. K. Point of Delivery" means the point at which the lake water delivered to customer pursuant to this Agreement enters the customer connection facilities. The point of delivery shall be at a point 10 feet south of the outside wall of the vault containing the water meter. 6 L. "Source or Emergency Supplier" means the party that is supplying water to customer water systems pursuant to the terms of this agreement. If NSMJAWA is supplying water to NWC via the emergency water system interconnection improvements, then NSMJAWA is the source. If NWC is supplying water to the Village via the emergency water system interconnection improvements, then NWC is the source. M. "Source Contract" can refer to either the water supply contract, dated March 4, 1981, between the NWC and the City of Evanston, as amended or supplemented from time to time if NWC is the source. It can also refer to the water supply contract between NSMJAWA and the City of Chicago as amended or supplemented from time to time if NSMJAWA is the source N. Unit of Measurement. The unit of measurement for lake water delivered hereunder shall be gallons of water, U.S. standard liquid measure, and all measuring devices shall be so calibrated unless the NWC, NSMJAWA, and the Village otherwise agree. Section 3. Scope of the Work. The Parties agree that the general purpose of the Work shall be to construct and make operational an emergency water system interconnection between the NWC and the Village that uses existing NSMJAWA infrastructure. The Work will be constructed in a manner that generally complies with the water system interconnection concept depicted in the Process Flow Diagram enclosed as Exhibit A. Specific tasks for the Work shall include: A. Preparation of bid documents necessary to secure competitive public bids for the construction of the emergency water system interconnection. B. Bid evaluations and award recommendation. C. Acquisition of requisite permanent or temporary property. D. Obtain requisite permits and/or regulatory agency authorizations. E. Construction engineering and inspection. F. Project management. G. Construction of the Work. H. Public relations and public information including press releases, project website development, social media, and public meetings. I. Commissioning, operation, maintenance of emergency water system interconnection. Section 4. Measuring Equipment. A. Flow Meter. As part and parcel of the emergency water system interconnection improvements, a bi-directional water meter shall be furnished and installed at the meter vault prior to the commencement of any flow through the improvements. The flow meter shall meet the standards of the American Waterworks Association for measuring properly the quantity of lake water delivered under this agreement. NWC, NSMJAWA, and the Village shall have access to the flow meter for examination, inspection, calibration, and adjustment at reasonable times, but the reading for billing purposes shall be collected by the Village and sent to NWC and NSMJAWA, as appropriate, each month. The Village shall keep an official record of the readings taken from the flow meter; a copy of which record shall be provided to NWC or NSMJAWA upon request. At least once in each calendar year, the Village shall test and calibrate the flow meter measuring the lake water delivered to the Village system as well as the quantity of lake water delivered to NWC by NSMJAWA. NWC and NSMJAWA, if they choose, along with the Village, shall jointly observe any adjustments that are made to the flow meter in case any adjustments shall be necessary. Page 4 of 15 7 If any backflow prevention devices have been installed, then such backflow prevention devises shall be tested at least every 12 months by the Village in the presence of a representative of either NWC or NSMJAWA representatives, if they choose, and the Village will make any repairs and replacements of the backflow prevention devises in case any adjustments shall be necessary. The Village will submit all backflow test results to NWC and NSMJAWA as appropriate. NWC and the Village shall share equally in the cost of testing, calibration, repairs, maintenance, and of meters. B. Meter Malfunctions. If the NWC, NSNfJAWA, or the Village, at any time observe evidence of flow meter malfunction, such party shall promptly notify the other parties, and all parties, collectively, shall then cooperate to procure an immediate calibration test and such adjustment, replacement or other work necessary to return the flow meter to accuracy. The party who discovers such variation or malfunction shall give the other parties notice not less than 48 hours prior to the time of any test of any meter (which tests shall be conducted during normal working hours) so that the other parties may conveniently have a representative present. If such representative is not present after the required notification at the time set in such notice, calibration and adjustment may proceed in the absence of said representative notwithstanding any other provision of this subsection. If the percentage of inaccuracy of the flow meter is found to be in excess of two percent, registration thereof shall be corrected by agreement of NWC, NSMJAWA, and the Village, collectively, and based upon the best data available, for a period extending back to the time when such inaccuracy began if such time is ascertainable, or for a period extending back one-half of the time elapsed since the last date of calibration (but in no event further back than a period of six months) if such time is not ascertainable. If for any reason the flow meter is out of service or out of repair so that the amount of lake water delivered cannot be ascertained or computed from the reading thereof, then the lake water delivered during the period the flow meter is out of service or out of repair shall be estimated: 1. By correcting the error if the percentage* of the error is ascertainable by calibration tests or mathematical calculations; or 2. If the error is not ascertainable by calibration tests or mathematical calculation, by estimating the quantity of delivery by considering the quantity consumed by the receiving party's own customers as measured by the meters located on their premises as well as level changes in the receiving party's water storage facilities. Section 5. Sharing of the costs, fees, and expenses of the Work. The NWC and the Village will each pay one half of the actual costs, fees, and expenses for the emergency water system interconnection costs (the Work). Estimates of these expenditures are set forth in the Engineer's Opinion of Probable Construction Cost prepared by Burns & McDonnell consulting engineers and enclosed as Exhibit E. The NWC and the Village agree the Party that contracts for the Work shall pay for it and the non -contracting Party shall reimburse the contracting Party for one half of the cost within ten (10) days after receipt of written notice the reimbursement is required. Furthermore, all Parties agree that NSMJAWA is a party to this Agreement, but shall not be responsible for the cost, fees, and expenses of the Work. NWC and the Village further agree to hold NSMJAWA harmless from any and all claims for personal injury or property damage arising out of or related to the Work, including any damage to the NSMJAWA system. Page 5 of 15 Section 6. Operation of the Interconnection Facilities. A. Connection of the Emergencv Water System Interconnection Improvements. Flows of emergency service from NSMJAWA to NWC shall be delivered through pressure reducing valve(s) at pressure and flow rates mutually agreed upon by NWC and NSMJAWA. Flows of emergency service from NWC to the Village shall be provided with air gap protection or backflow prevention. The supplier shall not be responsible for any damage to the customer's waterworks system caused by the design, operation, or maintenance of the customer's waterworks system. The customer shall be solely responsible for delivering potable water to its customers at pressures required or necessary to make such delivery. B. Conditions. The emergency water system interconnection improvements shall be utilized as specified in this agreement unless otherwise approved, in writing, by the supplier(s), pursuant to the sequence of operations set forth herein. C. Notice of Emergency Use of Water Event. Customer shall give telephonic notice to the supplier of the need to declare an emergency use of water event, the expected duration of emergency use of water event and the amount of lake water needed during the emergency use of water event prior to the operation of the emergency water system interconnection improvements. The emergency water system interconnection improvements shall not be operated unless and until customer shall have given said notice to the supplier. Supplier may discontinue or limit emergency service pursuant to Section 6 E below. D. Notices During Emergency Use of Water Event. Customer shall provide daily telephonic notice to the supplier for so long as emergency service continues during an emergency use of water event and shall provide telephonic notice to the supplier before final shut-off of emergency service for each such emergency use of water event. E. Record of Use During Emergency Use of Water Event. The supplier shall create a record of each occurrence of emergency service, a copy of which shall be provided to customer upon request and along with the invoice for the occurrence of emergency service. The customer will collect and report the meter reading daily to the supplier when emergency service continues for more than two consecutive days. F. Limited Emergence Supph1. The supplier shall use its best efforts to supply customer with lake water. Customer acknowledges that the supplier may have other emergency service customers. There shall be no liability to the supplier should they be unable to supply water to a customer during a water emergency or at any other time. G. Manner of Operation and Maintenance. The emergency water system interconnection improvements shall be operated and maintained by customer in such a manner as at no time to place or threaten to place supplier or waterworks system in jeopardy of failing to meet the regulations of any agency or governmental authority having jurisdiction over the operation of a public water supply. In addition, the emergency water system interconnection improvements shall be operated and maintained in such a manner as at no time to place or threaten to place the supplier, or the customer, in jeopardy of failing Page 6 of 15 0 to meet the terms of their respective source contracts. H. Operation of Emergency Water System Interconnection Improvements. The emergency water system interconnection improvements shall be placed into operation on a routine basis to maintain the integrity of the improvements. All parties reserve the right to suspend or terminate any service in the event it determines there is a pressure or water quality threat to waterworks system. All parties shall be notified at least one week prior to any planned non -emergency use. I. Duration of Emergency Service; Limits on Emergency Conditions. Emergency service for each such qualified emergency use of water event shall be provided by the supplier for only so long as the qualified emergency use of water event exists, and the supplier is able to meet those needs, but in no event longer than 30 days for each such qualifying emergency use of water event, except as otherwise allowed by this agreement or agreed by the parties. Provided, however, the flow rate from N`B'C to the Village shall not exceed 7.0 MGD and the flow rate from NSMJAWA to NWC shall not exceed 7.0 MGD. If the customer's failure or refusal to maintain the customer system as required by subsection 6F of this agreement results in repeated or excessive emergency service, as determined by the supplier in its reasonable discretion, the supplier may, (i) upon 60 days written notice, reduce or discontinue delivery of lake water to customer until the customer system is repaired or (ii) terminate this agreement on 90 days advance written notice to customer unless the parties agree in writing to an alternative remediation plan. In the event a customer has repeated or excessive emergency service hereunder, as determined by the supplier in its reasonable discretion, the supplier shall have the right to demand customer submit and follow, a reasonable written remediation plan. Failure to follow the remediation plan may result in termination of this agreement on 60 days advance written notice to customer. Upon delivery, of any such notice of termination, all amounts to be paid by customer to the supplier under this agreement, shall be immediately due and payable to the supplier. The supplier may, in its discretion, provide emergency service beyond the limitations set forth in this subsection. Section 7. Special Conditions and Covenants. A. Construction of Interconnection Facilities. All parties will make a diligent effort to have the emergency water system interconnection improvements completed by the dates specified in Section 3 of this Agreement, but none of the parties do, in any way, hereby guaranty completion by such times. B. Lake Water Only. Except with the prior approval of customer, the supplier shall not deliver any water to the customer system other than lake water. C. Title to Lake Water. Title to all lake water supplied hereunder shall remain with the supplier to the point of delivery and thereupon shall pass to customer. Page 7 of 15 iF D. Water Oualit�T. The Supplier shall, to the extent reasonably practicable, provide the emergency water o f a quality commensurate to that furnished to its non -emergency customers. The supplier bears no responsibility for the contamination of lake water or deterioration of water quality occurring beyond the point of delivery, to customer. Customer shall be responsible for water treatment after the point of delivery. E. Maintenance and Operation of Customer System. Customer shall operate their water system and the emergency water system interconnection improvements to meet regulatory requirements. Customer shall be responsible for the continuity, care, conservation, preservation, operation and maintenance of their internal water system and the emergency `eater system interconnection improvements. Customer shall perform such maintenance, repair, preservation, and replacement of any and all parts or portions thereof necessary to restore or preserve the emergency water system interconnection improvements to deliver water and function reliably as originally designed. The supplier and customer shall notify- each other of known issues that are likely to impact service under this agreement. Customer shall own and maintain their internal water system and the emergency water system interconnection improvement, in good repair and working order. In the event of any deterioration, injury, damage or other loss to the customer's internal water system or the emergency water system interconnection, repairs shall commence promptly. The supplier shall have the right to terminate service at any time and for any reason. In the event of a discontinuance, the supplier shall use best efforts to provide the customer with 24 hours' notice in advance of the discontinuance. F. Maintenance and Operation of Supplier Connection Facilities. NWC shall at its sole cost and expense maintain its supplier connection facilities and the emergency water system interconnection improvements in accordance with the same conditions as in paragraph E above. In addition, and if applicable, the backflow preventer shall be inspected once a year by a certified cross connection control device inspector. A copy of the inspection report shall be delivered to NSMJAWA within thirty (30) days of the inspection. The Village shall at its sole cost and expense maintain its supplier connection facilities and the emergency water system interconnection improvements in accordance with the same conditions as in paragraph E above. In addition, and if applicable, the backflow preventer shall be inspected once a year by a certified cross connection control device inspector. A copy of the inspection report shall be delivered to NWC within thirty (30) days of the inspection. G. Access. In the event that either party fails to maintain any of the interconnection facilities pursuant to the terms of this Section 7, then in addition to any and all other remedies pursuant to this Agreement each party- shall be provided reasonable access to the other's interconnection facilities in order to perform said maintenance at the cost Page 8 of 15 11 of the non -maintaining party. Section 8. Insurance. The NWC and the Village each shall procure and maintain, at their sole cost and expense, during the Work, a policy or policies of insurance with a company or companies authorized to do business in Illinois that insure each party against general liability fire, casualty, theft and property damage caused by the entity, retained to do the work, along with its employees and contractors. The coverage amounts for the insurance policy or policies for each party shall be $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate. The NWC and the Village shall be named as a primary insured on the insurance policies. NSMJAWA shall be listed as additional insured on the insurance policies. The NWC and the Village will provide Certificates of Insurance to all parties, if requested. Once the Work, i.e., the construction is completed, this Insurance requirement terminates. Section 9. Release. NWC hereby releases the Village and all of their elected and appointed officials, officers, employees, agents, representatives, engineers and attorneys, from: (i) any liabilities for any loss or damage to property or any injury to, or death of, any person that may be occasioned by or related to any cause whatsoever pertaining to the construction, maintenance, use or operation of the customer system or the emergency water system interconnection improvements; or (ii) any liabilities, losses or damages, or claims therefor, arising out of the failure, or claimed failure, of customer to comply with its covenants or obligations contained in this agreement; or (iii) any liabilities, losses or damages, or claims therefor, arising out of the delay, or claimed delay, in the commencement of, or the failure to provide, emergency service to customer in the event of an emergency condition, including, in each such case, attorneys' fees and administrative expenses, except in each case to the extent caused by supplier's negligence. NWC agrees to indemnify and hold the Village harmless to the fullest extent permitted by law from any losses, costs, charges, expenses (including attorneys' fees and administrative expenses), judgments and liabilities incurred by the Village in connection with any action, suit or proceeding instituted or threatened by any third party in connection with this agreement or the matters mentioned in this Subsection 6H, except in each case to the extent caused by the Village's negligence. If any such claim is asserted, the Village shall give prompt notice to NWC, and NWC, if requested by the Village, shall assume the defense thereof, it being understood, however, that NWC shall not settle or consent to the settlement of any such claim without the written consent of the Village. Nothing contained in this agreement shall constitute a waiver by the Village of any right, privilege or defense available to the Village under statutory or common law, including, but not limited to, the Illinois Local Governmental and Governmental Employees Tort Immunity Act, 745 ILCS 10/1-101 et seq., as amended. Likewise, the Village hereby releases the NWC from, agree that same shall not be liable or responsible for, and agrees to indemnify and Bold the same, and all of its elected and appointed officials, officers, employees, agents, representatives, engineers and attorneys, harmless from: (i) any liabilities for any loss or damage to property, or any injury to, or death of, any person that may be occasioned by or related to any cause whatsoever pertaining to the Page 9 of 15 12 construction, maintenance, use or operation of the customer system or the emergency water system interconnection improvements; or (ii) any liabilities, losses or damages, or claims therefor, arising out of the failure, or claimed failure, of customer to comply with its covenants or obligations contained in this agreement; or (iii) any liabilities, losses or damages, or claims therefor, arising out of the delay, or claimed delay, in the commencement of, or the failure to provide, emergency service to customer in the event of an emergency condition, including, in each such case, attorneys' fees and administrative expenses, except in each case to the extent caused by supplier's negligence. The Village agrees to indemnify and hold the NWC harmless to the fullest extent permitted by law from any losses, costs, charges, expenses (including attorneys' fees and administrative expenses), judgments and liabilities incurred by NWC in connection with any action, suit or proceeding instituted or threatened by any third party in connection with this agreement or the matters mentioned in this Subsection 6H, except in each case to the extent caused by NWC's negligence. If any such claim is asserted, the NWC shall give prompt notice to the Village, and the Village, if requested by NWC, shall assume the defense thereof, it being understood, however, that the Village shall not settle or consent to the settlement of any such claim without the written consent of NWC. Nothing contained in this agreement shall constitute a waiver by NWC of any right, privilege or defense available to NWC under statutory, or common law, including, but not limited to, the Illinois Local Governmental and Governmental Employees Tort Immunity Act, 745 ILCS 10/1-101 et seq., as amended. Section 10. Prices and Terms of Pa3Lment. A. Cost of Water Supplied. When the Village receives emergency service from NWC, the Village shall pay to NWC, at the time specified in Subsection 7B below, for the cost of lake water supplied at a water rate stated as dollars or cents per 1,000 gallons that is equal to the NWC Rate per 1,000 Gallons. When NWC receives emergency service from NSNIJAW'A, NWC shall pay to NSNIJAW'A, at the time specified in Subsection 7B below, for the cost of lake water supplied at a water rate stated as dollars or cents per 1,000 gallons that is equal to the NSNIJAW'A Rate per 1,000 Gallons then in effect at the time of delivery. B. Bills and Due Date. The supplier shall notify customer of the total amount due from customer under this agreement for each month on or before the 20th day of the following month. Payment shall be due within 30 days after the date of notification. C. Disputed Payments. If customer desires to dispute any payment, or part thereof, due or claimed to be due under this agreement, customer shall nevertheless pay the full amount of any such payment when due and include with such payment written notification to the supplier that charges are disputed, the grounds for dispute and the amount in dispute. No adjustment or relief on account of any disputed charges shall be made unless disputed charges are the subject of such notice within the time herein specified, or within a reasonable period from the time customer knew or should have known of the facts giving rise to the dispute. It is expressly understood and agreed that no dispute over payments due or claimed to be due under this agreement shall be referred to Page 10 of 15 i K3 arbitration f or review or settlement. Upon receipt of a notification of dispute, representatives of the supplier shall meet promptly with representatives of customer to resolve such dispute. If the supplier and customer determine that all or a portion of the disputed payment should be refunded to customer, then such sum shall be refunded. D. Interest on Overdue Payments. If customer shall fail to make any payment required under this agreement on or before its due date, customer shall be in default, and interest on the amount of such payment shall accrue at 6% annual interest. If a customer is more than 60 days delinquent, the supplier may reduce or discontinue delivery of lake water to the customer system upon 10 days advance written notice until the amount due, including interest, is paid in full. If the supplier reduces or discontinues the delivery of lake water under such circumstances, customer shall nevertheless continue to be liable to pay all charges provided for herein. The rights specified in this agreement shall be in addition to all other rights and remedies available to the supplier under this agreement, at law, or in equity for breach of any of the provisions of this agreement. Section 11. Assignability A. No party to this agreement shall assign or transfer this agreement or any rights or interests herein without the advance written consent of all of the other parties to this agreement, except as provided in section B. below. B. The right to receive all payments that are required to be made by customer to the supplier in accordance with the provisions of this agreement may be assigned by the supplier to any trustee as provided in any bond ordinance to secure the payment of the principal of and the premium, if any, and interest on the bonds as those amounts come due, subject to the application of those payments as may be provided in any bond ordinance. Customer, upon notice of assignment to any such trustee, shall make all payments directly to such trustee. Further, the rights of the supplier to enforce the provisions of this agreement may be assigned to any such trustee and, in such event, such trustee shall have the right to enforce this agreement at law or in equity with or without the further consent or participation of the supplier. The supplier also may retain the right to enforce this agreement. Section 12. Regulatory Bodies A. All parties to this agreement seek to exercise and maintain all sovereign rights granted to it under and through the Constitution' and laws of the State of Illinois. This agreement shall be subject to all valid rules, regulations and laws applicable hereto passed or promulgated by the United States of America, the State of Illinois, any governmental body or agency having lawful jurisdiction, and any authorized representative or agent of any of them; provided, however, that this clause shall not be construed as waiving the right of any party to challenge the validity of such rule, regulation or law on any basis, including the impairment of this agreement. Section 13. General Provisions. Page 11 of 15 14 A. Governing Law and Venue. This Agreement shall be interpreted under, and governed by, the laws of the State of Illinois. Any claim, suit, action or proceeding brought in connection with this Agreement shall be in the Circuit Court of Cook County, Illinois, and the NWC, NSMJAWA, and the Village consent to the personal and subject matter Jurisdiction of said Circuit Court and waive any claim that venue therein is not proper. B. Modification of the Agreement. This Agreement shall not be modified, altered, or amended in any way except in writing agreed upon by the NWC, NSMJAWA, and the Village. C. Notices. All written notices made pursuant to this Agreement shall be directed to the specified individuals at the addresses set forth below by any of the following means: personal service, overnight courier or first class mail, postage pre -paid. D. No Waiver of Immunity. Nothing contained in this Agreement shall constitute a waiver by the any party of any right, privilege or defense available to the any party under statutory or common law, including, but not limited to, the Illinois Local Governmental and Governmental Employees Tort Immunity Act, 745 ILCS 10/1-101 et seq., as amended. TO THE NORTHWEST WATER COMMISSION: Executive Director Northwest Water Commission 1525 North Wolf Road, Des Plaines, Illinois TO THE VILLAGE OF MOUNT PROSPECT: Village Manager Village of Mount Prospect 50 South Emerson Street, Mount Prospect, Illinois 6005 TO THE NORTHWEST SUBURBAN MUNICIPAL JOINT ACTION WATER AGENCY: Executive Director Northwest Suburban Municipal Joint Action Water Agency 901 Wellington Avenue, Elk Grove Village, Illinois 60007 Section 14. Effective Date, Term, and Termination. A. Effective Date. This Agreement shall be effective upon authorization and execution by all parties hereto. B. Term. After taking effect, this agreement shall continue in force and effect for a term of twenty (20) years, plus two (2) 10 -year extensions unless extended upon prior written approval of all parties. Each supplier has the right to terminate this agreement upon Page 12 of 15 15 one-year written notice to the customer. If a supplier is not reasonably able to provide said one-year written notice, supplier shall give written notice as soon as reasonably possible. C. Termination. This agreement may be sooner terminated by any party, in its reasonable discretion, (i) at any time when the terms, conditions and limitations of this agreement are not satisfied and one or more of the other parties fail to cure such breach within ninety (90) days after a written notice, or (ii) as otherwise provided in this agreement. In the event of any such termination, all parties shall have the right, but not the obligation, to disconnect at the disconnecting party's sole cost and expense from the emergency water system interconnection improvements. All payment obligations and all representations, warranties, releases, and indemnities shall survive any such termination. The rights specified in this agreement shall be in addition to all other rights or remedies available under this agreement, at law or in equity for breach of any provision of this agreement. Section 15. Exhibits Incorporated. A. Exhibits A, B, C. D and E to this agreement are hereby fully incorporated into this agreement as substantive provisions of this agreement. Section 16. Entire Agreement. A. This Agreement constitutes the entire agreement between the NWC, NSMJAWA, and the Village and supersedes and replaces any and every other prior or contemporaneous agreement, negotiation, understanding, commitments and/or other writings with respect to the subject matter herein. Page 13 of 15 i [ IN WITNESS WHEREOF, the Northwest Water Commission, the Northwest Suburban Municipal joint Action Water Agency, and the Village of Mount Prospect have caused this Agreement to be executed by their respective officials on the dates indicated. VILLAGE OF MOUNT PROSPECT NORTHWEST WATER COMMISSION Mayor Executive Director This day of 12022 Thisdayof )2022 ATTEST: Mount Prospect Village Clerk ATTEST: NORTHWEST SUBURBAN JOINT ACTION WATER AGENCY Executive Director This—dav of , 2022 ATTEST: Ilds dnfi (//6) hxfwu bcc� �u �v6knvcd ot apj"�-ovcd by d'lc go\'crfiuIig-),)arids, ofdw \X'a�cr Suburh"u'l- 'VhPjlicip"11 joiryt 1fic6ma or flle hospcd T 1wtH-orc, it ryla\- be stibcc�o d-)(' Is 'app rc.� cd �md Page 14 of 15 17 This page is intentionally blank. 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PaN IS @Ulld t E CL (u 0 E 0 u fts C ................... r . . . . ........ > 0 = N 0 .- 0 ai S m mw n 0 < E 13 t CL 0 CL azo V) 0 m 0 0 2 , P Q rL CL Z 0 0 - 3: Z a nu ua\/ s nu N uu 0 C C omC CIO Q) X 0 m Lu .2 c _��_ 'S a < E 2 > < '0 Z Lu 22 3 -Sun -22 Village of Mount Prospect & Northwest Water Commission Emergency Water System Interconnection Engineer's Opinion of Probable Construction Costs 31 Pre Engineered Pum. Station 100% Lnm Sum 1 $1,700,000 51,700,000 32 150% Equal Share of All Othcr Constntction Costs L—P Sum 1 $1,735.521 51,735,521 villug,o Mourifl'ros ecr sub-ywal, I I I I 53,435,521 33 1 Conlinacncv 6% LLImP Sum I 1 1 $206,131.00 1 $206,131.00 TotalVillage Costs; $3.641,652 IF, 4 50% E ual Share of Construction Costs Other than Pre -Engineered Pum Station ILSum 1 $1,735.521 51,735.521 35 Contin e 6% Lump Sum 1 $206,131.00 $104,131.26 'Dotal N WC Costs: $1,839,652 RESOLUTION NO. A RESOLUTION AUTHORIZING THE VILLAGE MANAGER TO SIGN AN INTERGOVERNMENTAL AGREEMENT WITH THE NORTHWEST WATER COMMISSION AND THE NORTHWEST SUBURBAN MUNICIPAL JOINT ACTION WATER AGENCY FOR THE CONSTRUCTION AND OPERATION OF AN EMERGENCY WATER SYSTEM INTERCONNECTION WHEREAS, both the 1970 Illinois Constitution (Article VII, Section 10) and the Intergovernmental Cooperation Act (5 ILCS 220/1 et seq.) authorize and encourage intergovernmental cooperation; and WHEREAS, the Northwest Water Commission (NWC), Northwest Suburban Municipal Joint Action Water Agency (NSMJAWA), and the Village are units of government, or instrumentalities and/or agencies of local government, within the meaning of the 1970 Constitution of the State of Illinois, Article VII, Section 10, having the power and authority to enter into an intergovernmental agreement; and WHEREAS, the NWC operates a waterworks System to transport Lake Michigan water purchased from the City of Evanston to the water systems of its members and customers; and WHEREAS, NSMJAWA operates a waterworks System to transport Lake Michigan water purchased from the City of Chicago to the water systems of its members and customers; and WHEREAS, the Village owns and operates a waterworks system that normally and customarily receives its drinking water supply from NSMJAWA; and WHEREAS, the NWC and the Village jointly conducted engineering and feasibility studies regarding an emergency water system interconnection by and between the NWC and the Village that could supply either Party with water in an emergency situation; and WHEREAS, the NWC, NSMJAWA, and the Village collectively agree that the most effective and beneficial emergency water system interconnection design utilizes existing NSMJAWA piping as depicted in Exhibit A to transfer water between NWC and the Village; and WHEREAS, the NWC and the Village entered into an intergovernmental agreement to prepare final design engineering plans and specifications for construction of a water system interconnection by and between the NWC and the Village utilizing existing NSMJAWA piping that could supply either the NWC or the Village with water in an emergency situation; and WHEREAS, the NWC, NSMJAWA, and the Village find it is in their interests to enter into an agreement setting forth their understanding for sharing the costs, expenses, and other obligations related to the Work and to the operation of the emergency water system interconnection. NOW THEREFORE BE IT ORDAINED/ RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Board of Trustees do hereby authorize the Village of Mount Prospect to enter into an Intergovernmental Agreement with the Northwest Water Commission and the Northwest Suburban Municipal Joint Action Water Agency for the construction and operation of an emergency water system interconnection attached hereto and made part of this Resolution as Exhibit A. Res NWC/NSMJAWA/VOMP Pg lof 2 24 SECTION TWO: That the Village Manager is authorized to sign the agreement and the Village Clerk to attest. SECTION THREE: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this 6t" day of September 2022. Paul Wm. Hoefert Mayor ATTEST: Karen M. Agoranos, Village Clerk Res NWC/NSMJAWA/VOMP Pg 2 of 2 25