HomeMy WebLinkAboutRes 05-65 03/02/1965
RESOLUTION NO.1 l "
A RESOLUTION AUTHOR IZlliG A PURCHASE AGREEMENT
BETW8EN THE VILLAGE OF MOUNT PROSPECT AND THE
CITIZENS. UTILITIES COMPANY OF ILLlliOIS FOR THE
PURCHASE OF THE PROPffiTIES OF THE CITIZENS -
BLUETT WATER SYSTEM.
NOW, THEREFCRE, BE IT RESOLVED by the President and
Board of Trustees of the Village of Mount Prospect, Cook
County, Illinois:
Section l.That the President and Village Clerk be
and are hereby authorized and directed to sign a purchase
agreement between the Village of Mount Prospect, a Municipal
Corporation and the Citizens Utilities Company of Illinois,
an Illinois CorporationL for the purohase of the properties
of the Citizens-Bluett water system owned and operated by
said utility company, dated the 1st day of March, 1965, a
copy of which purchase agreement is marked Exhibit 1 attached
hereto and incorporated by reference.
Section 2. The Village President, Village Clerk,
Village Finance Director, Village Manager and Village Attorney
are fUrther directed to do any and all things necessary to
carry out the provisions of said Purchase Agreement.
Section 3. This resolution shall be in full force and
effect from and after its passage and approval according to
law.
PASSED and APPROVED this 2 ,vlday of March, 1965
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V-tvti.IY\..UL&j~J '~.~ A"...
President :::::----
Att est:
!\_ccC./' (/ Lv .,/,.. .C' \--
Village Clerk
(I ,. /'.
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PURCHASE AGREEMEWI'
/.
THIS AGREEMENT, made and entered into this 1st day
of March, 1965, by and between the Citizens utilities
Company of Illinois, an Illinois Corporation (hereinafter
called "the Company") and the Village of Mount Prospect,
a Municipal Corporation lo~ated in CooY.. County ann the
State of I11inoi.s, (hereinafter called "the Vi11e,ge"):
WIT N E SSE T H:
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WHEREAS, the Company prese~t1y owns and operates
a water system which Rervices an area YJlown as the Citizens
Bluett Service Area, whi-::h area is bounded on the north
by Gregory Street, bas a westerly boundary between ~l.m
and Maple Streets, a southerly boundary of Thayer street
and. an easterly boundary of Louis street and ~and Road
(see location plan in Greeley and Hansen's report -
January, 1964), which area is a part of the Village of
Mount Prospect; and
WHEREAS, the Village haR heretofore innicated its
intention to condemn the water p:roperties of the Oompany
as afored.escribed.; and
WHEREAS, the Company has indicated its agreement
to sell said water properties in lieu of condemnation by
the Village; and
WHEREAS, all parties have engaged. in negotiations
for the acquisition of said water system by the Village
and have arrived at a satisfactory agreement as to price,
based upon reconstruction cost new less depreciation, and
terms of acquisition~ which are fully reflected and in-.
corporated herein;
NCM, THEREFORE, for and in consideration of the
mutual covenants hereinafter contained, the parties hereto
agree as follows:
1. Agreement to Purcha.se and Sell. The Village
agrees to purchase the said water system from the Company
upon the terms and conditions hereinafter set forth and
the Company, upon these te~3 and conditions, agrees to
sell the said water system to the Village.
2. Description of the Water System. The water
system to be purchased by the Village and sold by the
Company shall consist of aJ]. the properties, real, personal
and mixed, which comprise or form a part of the Citizens
Bluett water system owned and operated by the Company
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as of date hereof and described in a report and appraisal
of Water Supply Facilities Citizens Bluett Company, dated
January, 1964, prepared by Greeley and Hansen, engineers
Chicago, Illinois, and as may exist in the service area
described in the location plan which is a part of said
report as of date hereof (which report shall hereinafter
be described as the Village Engineer's Report), together
with all additions and improvements made and. contracted
for after date hereof and prior to the closing date (in-
clud.ing any work in progress as of the closing date) and
including, but not limited to, all it ems of property
referred to in the report of Greeley and Hansen made
to the Village in January, 1964, and referred to as
the Village Engineer's Report heretofore, and. all other
property or assets which form a part of the aforesaid.
water system. Included in the assets of the Citizens
Bluett water system hereby purchased. by Village are
accounts receivable from customers as of March
1965.
The following property or assets are not being purchased.
by Village: cash on hand or in the banks, vehicles,
,.,
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portable equipment, office equipment., t;ool~;, m:d,erials and
supplies, evidences of indebtednesH or other securities and
prepaid insurance. Without limiting the generality of the
foregoing, su~h water syst-,€m shall include:
(a) Lot 1 in Block 1 in Bluet.t's Snbdivision
of part of the North 1/2 of the South East
1/4 of Section 34, Township 42 North, Range
"
11 East of the Third Principal Meridian in
Cook County, Illinois, together with all
buildings structures and improvements
thereon.
(b) The right, title and interest of the Company
in and to any and all easements occupied or
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used by the Company in connection with the
Bluett Service Area, and particularly all
right to title and interest of' the Company
in and to the easements located on property
legally described as follO'tis:
The North five (5) feet of lots two (2)
and twenty-seven (27) of Block ten (10)
and the South five (5) feet of lots
one (1) and twenty-eight (28) of Block
ten (10), all in Bluett's Subdivision
of Part of the North half (N 1/2) of
the Southeast quarter (SE 1/4) of Section
thirty-four (34), Township forty-two
(42) North, Range eleven (11), East
of the Third (3rd) Principal Meridian
in Cook County, Illinois, according to
plat filed in the Office of the Registrar
of Titles of Cook County, Illinois,
Document No. 1464233.
(c) All wells, reservoirs, tanks, treatment plants,
mains, pipes, installed. meters, service connec-
tions, valves, fire hydrants, pumps, machinery,
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equipment, chlorinating equipment, chemicals,
and any and all property and appurtenances
which are attached to and used in connection
with the water system described above.
(d) All rights, privileges, franchises, permits,
grants, consents, licenses, right-of-way
grants, and other property rights not
hereinbefore specifically mentioned, and
all renewal:.;, extensions, enlargements and
modifications thereof, and any and all
customer's lists, meter books, maps, sur~
veys, title reports, charts, plans, con-
sumers I record.s, meters (installed) ,~and
other things of value belonging to or com-
prising part or any part of the water system
or used and useful in connection therewith
not specifically excepted therefrom.
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3. Closing Date and Place of Closing. The purchase
and the sale herein provided shall be consumated on March
1965.
4. Purchase Price. The purchase price to be paid by
the Village to the Company for the water system described
herein shall be the sum of Seventy-Six Thousand One Hundred
Seventy-Five ($76,175.00) Dollars plus an amount equal to
the Company's billing, including arrearages if any, for
March , 1965, which amounts shall be paid. by a cashier's
or certified check payable to the Company on the closing
date.
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5. Taxes. The Company shall prorate and pay into
an escrow fund all taxes applicable to the water system or
the operation t.hereof of any nature whatsoever through the
Closing Date. Current renl cDtntp tnXPR relnting to the
water system Wlt due or p'1yable on or before the Closinr;
Date shall be prorated from January 1 of the year subsequent
to the last year for vlhich such taxes have been billed through
the Closing Date. Such proration shall be computed on the
basis of the most recently available taxes; provided, however,
that at such time as the taxes for the year or years included
in such prorations become available, either party agrees to
remit to the other the difference, if any, bet~een the amount
so paid by the Company on the Closing Date and the amount
that would have been paid by the Company had such tat:es
been computed on the basis of the actual taxes levied for
such year or years.
6. Electric Power Bills. The Village 8hall ask
the Utility Company to make a final meter reading as of
March 1 and bill the Company direct; thereafter the Village
shall be responsible for the power bills.
7. Debts and Accounts Payable. It is mutually
understood and agreed that the Village does not assume any
liability of any nature for the payment of the Company's
debts and accounts payable, and that the liability and
responsibility for said debts and the accounts payable
and the payment thereof shall remain with the Company.
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8. Representation, Warranties and Agreements by the
Company. The Company represents, warrants and agrees to and.
with the Village as follows:
(a) That it is and on the Closing Date will be a
corporation duly organized and existing and
in good standing under the laws of the State
of Illinois.
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(b) That it has taken all necessary corporate and
legal action to l3.uthorl:3e tile execution, delivery
and performance on Us part of thi2 Purchase
Agreement and the performance hereof by it will
not be in contravention of its1\rticles of
Incorporation or By-Laws or any contract or
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agreement to which it is a party or subject.
(c) That it will operate and. maintain the water system
as a going concern, making such repairs and better-
ments as may be necessary in the usual and regular
course of business until the Closing Date, and.
that it will not sell or otherwise d.ispose of
any part of the water system except such part
or parts as may be retired from service in the
ordinary course of business prior to the Closing
Date.
(d) That it has, in the case of additional assets
acquired between the date hereof and the Closing
Date, good and marketable title to the water
system, and it will have such title on the Closing
Date; and. its title to the water system on the
Closing Date will be unencumbered or proper pro-
vision will have been made for payment and.
release of any existing encumbrance.
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(e) That tl1ere is not now any litigatiol1l, suits
or governmental proceedings pending or to its
knowledge threatened which might adversely
affect its title to, right to possession of,
or right to vse the water system, or which
might interfere with the ~a.le and purchase
contemplated herp.by, and it will promptly
notify the Village in writing if any litigation,
suits or governmental proceedjngs shall be
instUuted or threatened prior to the Closing
Date.
(f) That it has rights of way and. easements (either
by grant or by ded.ication) and that thef{ are
sufficient to authorize maintenance of all of
its water pipes over private lands and public
highways and. it has good and sufficient rights
to keep and maintain the water system in the
manner in which the same is now maintained and
kept.
(g) That there will be on the Closing Date no trust
deeds, mortgages or indentures for which pro-
vision for payment and release has not been made
which affect the water system and all the rights,
contracts a.nd other property of the water system
are transferable and. assignable by the Company
as herein contemplated..
9. Documents to be Delivered by the Company on the
Closing Date. The Company shall prepare or cause to be prepared
for delivery to the Village on the Closing Date the following:
(a) Good and sufficient deeds, Torrens Certificates,
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if any, bills of sale, assigmnents and other
instruments of conveyance and transfer with
sufficient revenue stamps either affiKed thereto
or attR.ched thereto for subsequent affixing as
shall be necesrary to convey to and vest in the
Village good and merchantable title to all of
the properties uE;scribed in Paragraph 2 and
the various subparagraphs thereof free and clear
of any and all liens and other en~umbrances,
except for current taxes not paYR.ble prior to
the Closing Dat~ and matters acceptable to the
Village.
(b) Torrens Certifi~ates of Title shall serve as
evidence of title to the real estate refe:t'red
to in Paragraph 2 (a) hereof ann described in
Exhibit B hereto attached showing record title
to the said real estate to be in the Company,
subject only to the matters to which this
Purchase Agreement is subject by the terms
hereof, and to such other matters as shall be
acceptable to the Village.
(c) Affidavit of t.itle of the Company to the real
estate described in Paragraph 2 (a) hereof
covering the period from the date hereof to
the Closing Date.
(d.) Maps containing legal descriptions of the real
estate described in Paragraph 2 (a) hereof
showing the location of all buildings and
improvements located th~reon.
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(e) A chattel mortgage, judgment and federal
lien search covering a date not later than
seven (7) days prior to the Closing Date
showing no chattel mortgages, ,judgments or
other liens outstanding against the Company.
(f) Articles of Incorporation of the Company and
all amendments ;thereto certified by the Secretary
of State of the State of Illinois.
V (g) Certificate of good standing of the Company
issued by the Secretary of State of the State
of Illinois dated not more than thirty (30)
days prior to the Closing Date.
(h) Certifi~ate of the Secretary of the Company
v
dated. as of the Closing Date, with respe~t to
corporate standing, ~y-laws, incumbency of
officers, and corporate director and shareholder
resolutions authorizing the performance of the
Purchase Agreement.
(i) The opinion of the Company's lawyer addressed
to the Village dated as of Closing Date to the
effect
(1) that all necessary and appropriate corporate
action by the Company has been taken to
authorize the execution and delivery of
this Purchase Agreement.
(2) that the instruments d.elivered by the
Company to the Village are valid in accordance
with their terms and effective to transfer
to the Village merchantable title to the
water system, as defined in Paragraph 2
hereof, free and. clear of all defects, liens
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and encumbrances other than matters
acceptable to the Village.
(3) that the Company does have merchantable
title to all property which it seeks to
transfer.
(4) that the Company does have merchantable
title to rights of way and easements,
either by grant or dedication, that are
sufficient to authorize maintenance of
all its water pipes over private lands
and public h~ghways, and that it has good
and sufficient rights to keep and maintain
the water system in the manner in which
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the same is now maintained and kept, and
that the documents of transfer do in fact
convey merchantable title and ri'ght to said
easements and right of way to the Village.
10. Additional Documents. If at any time after the
Closing Date it shall appear that additional bills of sale,
d.eeds, assignments or other papers are reasonably necessary
to complete or perfect the transfer of any part of the water
system to the Village, the Company agrees to execute such
additional bills of sale, deeds, assignments or other papers
upon the written request of the Village.
11. Ind.emnity. The Company agrees to indemnify the
Village and. hold it harmless against any and all losses, claims,
damages, expenses and liabilities, including but not limited
to tax liabilities, arising out of or in connection with the
assets comprising and the operation of the water system prior
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to noon of the Closing Date. The Company further agrees
to indemnify the Village for any and all losGes occasioned
to it which are covered by the warranties of the Company
contained in this aGreement. Village agrees that if any
liability subject to this indRmnity spall be asserted
against it, it. shall proITlptly notify Company and afford
Company the right and opport'linity to def8nd the same at
its own expense.
12. Notices. All notices in connection with the
Purchase Agreement shall he given when mailed by registered
mail, postage prepaid, to the Company, care of Ishier
Jacobson, Vice President, Citizens utilities Company of
Illinois, Ridgeway Center, Stamford, Connecticut. ..~
13. Assignment and Applicable Law. This Purchase
Agreement shall inure to the benefit of and be'binding upon
the successors and. assigns of the Company and upon the
successors of the Village and shall be determined to be
an Illinois contract and any matters concerning this
Purchase Agreement shall be determined by Illinois law.
14. Invalidity. If any term or provision of this
Purchase Agreement or the application thereof to any person
or substance shall to any extent be invalid. or unen~orceable
as finally determined by any court of competent jurisdiction,
this Purchase Agreement may, at the option of either party,
be cancelled. and terminated, and all obligations, und.er-
takings, and liabilities of the parties hereto shall
thereupon automatically be terminated., released. and
discharged.
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15. Conditions to Final Consunnnation of Purchase
Agreement. It is mutuaJly understood and agreed that final
consunnnation of this Purchase Agreement is contingent upon,
and subject to, the fulfillment of all of the terms of this
Purchase Agreement on cr prior to the Closing Date or such
extended period. as may be agreeJ upon by the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused
this Purchase Agreement to bl-' executed in th'2ir respective
corporate names by their respective officers thereunto d.uly
authorized and their resrectjve (~0rporate seals to be hereunto
affixed and attested by their n'spec';ive officprs having
custody thereof the day and yea!: first above written.
VILLAGE OF MO~~ PROSfECT,
bY~~~~
ATTEST:
12 " i .7 L. r!.../. ~tj -' Ll~'''-V
Village Clerk
(SEAL)
by
ATTEST:
'/ ~-Il
~ iJl. '-<-..~
Assistant Secretary
(SEAL)