HomeMy WebLinkAbout4. COW Agenda Item VI Renewal of IGA Sale of Water Mount Prospect
Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO: MAYOR IRVANA WILKS
BOARD OF TRUSTEES
FROM: MICHAEL E. JANONIS
DATE: DECEMBER 7, 2010
RE: RENEWAL OF INTERGOVERNMENTAL AGREEMENT (IGA) WITH THE
CITY OF PROSPECT HEIGHTS FOR THE SALE OF WATER
In 1994 the Village of Mount Prospect entered into an IGA with the City of Prospect Heights
providing for the sale of Village water to the City for the purpose of operating their Police
Station. The IGA contained an initial ten year term (until 2004) with an additional ten year
term (until 2014) to be exercised at the option of Prospect Heights. In 2007 water service
was extended to their rebuilt City Hall in the aftermath of a fire that destroyed the original,
unsprinkled structure.
It was recently discovered the 2004 option was never officially exercised. During the
ensuing time the Village has continued to provide water to Prospect Heights under the
terms of the agreement and the City has always remained current in their payments. On
advise of Counsel, staff is recommending that the IGA be officially amended to 1.)
Commence a new ten year term and 2.) Provide for an additional ten year option to be
exercised at the discretion of the City of Prospect Heights.
Staff has been in contact with counterparts at Prospect Heights and they are amenable to
the proposed changes. The Agreement is submitted for discussion purposes.
DRAFT
RESOLUTION NO.
A RESOLUTION AUTHORIZING A SECOND AMENDMENT AND
EXTENSION OF THE CONTRACT FOR SALE OF WATER BY THE VILLAGE
OF MOUNT PROSPECT TO THE CITY OF PROSPECT HEIGHTS
WHEREAS, pursuant to Resolution No. R- 94 -48, the Village of Mount Prospect
(hereinafter the "Village" or "Mount Prospect ") entered into a Contract for Sale of Water
by the Village of Mount Prospect to the City of Prospect Heights, dated August 15, 1994,
through which the Village agreed to sell water to the City of Prospect Heights
(hereinafter the "City" or "Prospect Heights ") for the City's governmental properties
along Camp McDonald Road, (hereinafter the "Contract ", attached hereto and
incorporated herein as Exhibit A "); and
WHEREAS, the Contract was amended on July 7, 1997, pursuant to Resolution No. 33-
97, to permit the continued sale of water to a City facility, whose ownership had changed,
according to the terms of that amendment, which is attached hereto and incorporated
herein as Exhibit B; and
WHEREAS, paragraph 20 of the Contract provides an initial term of ten (10) years from
the Contract's effective date, subject to the City's option to extend the Contract for an
additional ten (10) year period, and such other extensions and terms as the parties may
agree upon; and
WHEREAS, the Contract, as amended, expired on August 15, 2004, though the parties
have continued to perform under its terms; and
WHEREAS, the City requests that the Contract, as amended, be extended for the
optional ten (10) year period, as well as an additional ten (10) year period, and the
Village agrees to such extensions; and
WHEREAS, the City and the Village further agree that paragraph 20, Term of Contract,
of the Contract be amended to permit subsequent ten (10) year extension periods upon
their mutual approval and agreed upon terms and conditions; and
WHEREAS, the Mayor and Board of Trustees of the Village of Mount Prospect find that
it is in the best interests of the residents of the Village to extend the term of the Contract,
as amended, until August 15, 204, and to amend the Contract to provide for subsequent
ten (10) year extensions.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF
TRUSTEES OF THE VILLAGE MOUNT PROSPECT, COOK COUNTY,
ILLINOIS, PURSUANT TO ITS HOME RULE POWERS:
SECTION l: The recitals set forth above are incorporated herein as if fully set
forth.
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SECTION 2: That the Contract, as amended, shall be extended from August 16,
2004, to August 15, 2024, upon the terms and conditions set forth therein.
SECTION 3: That Paragraph 20 of the Contract be amended to be and read in its
entirety as follows:
20. Term of Contract. This Contract shall continue in full force and effect
for a period of ten (10) years from the date hereof. Prospect Heights shall
have the option to extend this Contract for an additional ten (10) year
period. The Contract may be renewed thereafter for successive ten (10)
year periods pursuant to the mutual written agreement of Prospect Heights
and Mount Prospect, upon such terms and conditions and rate adjustments,
if any, to which they may agree.
SECTION 4:
That the Mayor and Village Clerk are hereby authorized and directed to execute
the Second Amendment and Extension of Contract for Sale of Water by the Village of
Mount Prospect to the City of Prospect Heights, substantially in the form set forth and
incorporated herein as Exhibit C.
SECTION 5: 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 day of , 20_
Irvana K. Wilks
ATTEST: Village President
M. Lisa Angell
Village Clerk
APPROVED this day of . 20 .
2611112
EXHIBIT
CONTRACT FOR SALE OF WATER BY
THE VILLAGE OF MOUNT PROSPECT TO THE
CITY OF PROSPECT HEIGHTS
This Contract made and entered into this 15thday of August
1994 by and between the Village of Mount Prospect (hereinafter called "Mount
Prospect "), an Illinois municipal corporation and the City of Prospect Heights
(hereinafter called "Prospect Heights "), an Illinois municipal corporation.
WITNESSETH:
WHEREAS, in order to properly safeguard and promote the health, welfare
and well -being of its governmental properties Prospect Heights desires to
purchase water from Mount Prospect for distribution to its governmental
properties along Camp McDonald Road; and
WHEREAS, Mount Prospect is willing to furnish water to Prospect Heights,
and expects to have available water for the initial ten (10) year period of this
Contract as well as the ten (10) year option period as set forth in Section 20
hereof.
WHEREAS, Mount Prospect and Prospect Heights desire to enter into an
agreement for the sale of water.
NOW, THEREFORE, in consideration of the mutual covenants and
agreements herein contained, Mount Prospect agrees to furnish and sell, and
Prospect Heights agrees to receive, and pay for, water upon the terms and
conditions, and for the consideration as hereinafter set forth:
1. Quantity of Water. During the term of this Contract, Mount Prospect shall
provide and make available to Prospect Heights, for its use at a delivery point as
hereinafter specified, water in the volume required by Prospect Heights or which
the Prospect Heights water system may be capable of taking at a minimum
operating pressure (25 PSI) of the Mount Prospect water system at point of
delivery.
In the event that it becomes necessary for Mount Prospect to limit its
delivery of water to its customers, Prospect Heights shall be entitled to receive
during such a period of scarcity its pro rata,share of water available as determined
by the proportion which the volume of water used by Prospect Heights during the
last preceding twelve (12) month period bears to the volume of water used by the
other customers of Mount Prospect for the same period.
In the event that it becomes necessary for Mount Prospect to limit the use
of water by its water customers, by imposing lawn and sprinkling restrictions, or
otherwise, Prospect Heights shall, upon notification by Mount Prospect, impose
the same water use restrictions and limitations on water customers connected to
its system served by Mount Prospect water, and shall make every reasonable effort
to publicize and shall enforce such limitations and restrictions until notified by
Mount Prospect that said limitations and restrictions may be removed.
Restrictions may be imposed by water pressure zones at the discretion of Mount
Prospect.
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2. Quality of Water. Water to be delivered at the point of delivery by Mount
Prospect and received by Prospect Heights hereunder shall be of the same quality
as that provided to customers within the corporate limits of Mount Prospect from
the Mount Prospect system. Water quality after the point of delivery is the
responsibility of Prospect Heights. So long as Mount Prospect meets its
responsibility pursuant to this paragraph, Plaintiff shall make no claims
whatsoever against Mount Prospect for costs or damages caused by any failure
to meet EPA or other regulatory agency water quality or composition standards.
3. Point of Delivery. The point of delivery of water from the water supply
of Mount Prospect to Prospect Heights shall be at or near the intersection of Camp
McDonald Road and Route 83. The connection point shall be on the south side
of Camp McDonald west of the intersection of Route 83 to an existing 8" water
main owned and maintained by mount Prospect. Any future point of delivery or
service connection to the water supply system of Mount Prospect, whether the
connection is in Mount Prospect or Prospect Heights, shall be subject to the
following conditions, to -with:
a. The connection, the location of any such connection and the
method of effecting such connection to the Prospect Heights system shall be
subject to the approval of Mount Prospect and the work of effecting any such
connection shall not be started until any such approval has been granted in
writing, in a timely fashion, by the Corporate Authorities of Mount Prospect.
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b. Each connection, if permitted, shall be provided with a water
measuring device meeting Mount Prospect's specification and capable of remote
reading along with a water metering pit.
c. Each connection shall be provided with a back water check valve
to be mounted close to the water measuring device, as approved by Mount
Prospect, in such a manner as to prevent the flow of water from Prospect Heights
to Mount Prospect. In addition, a valve on each side of the meter shall be
provided.
d. Each water metering device and water metering pit shall be
situated at the site near the point of delivery or the connection to the water supply
of Mount Prospect.
4. Installation Route. The installation route, the size of the piping and the
necessity and location of other structures, shall be as described in Exhibit "1" as
attached hereto.
5. Cost of Im Prospect Heights shall be responsible for one
hundred percent (100 %) of any costs associated with the construction and
installation of any piping or structure required to fulfill this Contract, including, but
not limited to, all engineering and legal fees.
6. Drawin a nd Permits. The working engineering drawings for the entire
system shall be submitted to Mount Prospect for review, modification and
approval. Prospect Heights shall be responsible for obtaining such other the
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governmental approvals or permits as are necessary, including but not limited to,
Illinois EPA.
7. Ownership of Improvements. Any improvements constructed by Prospect
Heights for the water system located within the corporate limits of Mount Prospect
shall be conveyed along with necessary easements by Prospect Heights to Mount
Prospect. The cost and preparation for acquisition of easements shall be the
responsibility of Prospect Heights, but Mount Prospect shall provide such support
as may be necessary to legally accomplish such acquisition.
8. Notification and Cost of Repair. Prospect Heights shall notify Mount
Prospect immediately upon discovery of any break, defect, or other malfunction
in such improvements and shall follow -up notification in writing within twenty -four
(24) hours. In the event Mount Prospect shall detect such break, defect or other
malfunction.in such improvements and shall follow -up notification in writing within
twenty -four (24) hours. In the event Mount Prospect shall detect such break,
defect, or malfunction, it shall notify Prospect Heights immediately upon discovery
and shall follow up in writing within twenty -four (24) hours. Prospect Heights shall
use its best efforts to repair such breaks, defects or malfunctions within twelve
(12) hours after initial notification of such break, defect or malfunction and in any
event shall make necessary repairs as promptly as is practical. The cost of any
repair, including labor and materials to any improvements required on account of
this Contract shall be borne by Prospect Heights, whether occurring in Mount
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Prospect or Prospect Heights, or whether performed by Mount Prospect or
Prospect Heights.
9. Other Connections. No connection or extension to serve any property
other than those for governmental use shall be permitted without the joint consent
of Mount Prospect and Prospect Heights.
10. Measuring Equipment. Prospect Heights agrees to furnish, install and
replace as may be necessary, at its own expense, at each point of delivery
hereunder to Prospect Heights the necessary meter pits, valves and meters. All
such equipment shall be of a standard type approved by Mount Prospect and
capable of reading rate and quantity; with the capacity of accepting telemetering
equipment to permit remote reading, for measuring the quantity of water delivered
under this Contract. Meters will be tested and calibrated annually.
Prospect Heights shall be notified, in writing, of such calibration so
that it may be done in the presence of a representative of Prospect Heights and
so that the parties may jointly observe any adjustments which are made to the
meter or meters in case any adjustments shall be necessary. Maintenance and
testing shall be performed by a contractor or representative from Mount Prospect
and shall be paid for by Prospect Heights. .
11. Meter Reading Recordation. For the purpose of this Contract, the
original record or readings of the meter or meters shall be in the meter journal or
other record book of the Village of Mount Prospect. Upon request by Prospect
Heights, Mount Prospect shall furnish Prospect Heights with a copy of such
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records or permit Prospect Heights to have access thereof during reasonable
business hours.
12. Testing of Lines and Structures, Flushing. Testing of the water mains
and associated equipment and structures shall be done by Mount Prospect at least
once every two years at the sole expense of Prospect Heights. Additionally,
periodic flushing of hydrants may be necessary. All hydrant water use shall go
through a meter at a connection point and shall be paid for by Prospect Heights.
13. Unit of Measurement. The unit of measurement for determining
compensation for water delivered hereunder shall be in thousands of gallons and
all measuring devices shall be so calibrated.
14. Price and Terms. Prospect Heights shall pay Mount Prospect 1.25 times
the Mount Prospect residential water rate for each thousand gallons of water
delivered through the meter(s) at each point of delivery to Prospect Heights. In
addition, Prospect Heights shall pay a capital expenditure surcharge for each
thousand gallons of water delivered through the meter(s) at each point of delivery
to Prospect Heights equal to 1.25 times an amount calculated in the following
formula:
" Capital expenditure surcharge (Surcharge) for each 1,000 gallons equals Special
Service Area No. 5 property taxes (SSA No.. 5 Taxes) levied for the previous year
divided by the total 1,000 gallon units of water billed (1,000 gallons billed) to all
Mount Prospect water customers for the previous May 1 through April 30.
The Surcharge for 1993 SSA No. 5 Tax Lew
May 1, 1994 - April 30, 1995 1,000 Gallons billed May 1, 1993 - April 30, 1994 "
The Surcharge shall be calculated May 1 of each year. The Surcharge so
calculated shall be in effect from May 1 through April 30 of the next year.
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15. Billing. Mount Prospect shall bill Prospect Heights for all water furnished
under this agreement bimonthly and payments shall be due and payable by
Prospect Heights to Mount Prospect within thirty (30) days from the date of billing.
16. Commencement Liability for Payments. Liability for making payments as
above set forth shall commence on the date of the first tender of delivery and
acceptance of water by Prospect Heights after completion of the installation and
testing of the aforesaid water main.
17. Continuity of Service - Conditions. From the time that water is tendered
for delivery to Prospect Heights at the designated point of delivery, Mount
Prospect shall, subject to the terms and conditions of this Contract, continually
hold itself ready, willing and able to supply water to Prospect Heights to the extent
required by this Contract.
18. No Strict Liability. Mount Prospect shall not be liable for damages for
breach of contract or otherwise for failure, suspension, diminution or other
variation of service occasioned by any cause beyond the control and without the
fault or negligence of Mount Prospect or its operating personnel. such causes
include, but are not restricted to, acts of God or of the public enemy, acts of the
State or Federal government in either its sovereign or contractual capacity; fires,
flood, freezing, epidemics, quarantine restrictions, strikes, or failure or breakdown
of transmission or other facilities.
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19. No Resale. Prospect Heights agrees not to resell or otherwise provide
any water provided pursuant to the Contract to any other user, without prior
written approval of Mount Prospect. If requested by Mount Prospect, the City of
Prospect Heights will, at its own time and expense, apply to the appropriate State
agency for permission to convey to Mount Prospect a portion of Prospect Height's
Lake Michigan water allocation that is equal to the use, pursuant to this Contract.
20. Term of Contract This Contract shall continue in full force and effect for
a period of ten (10) years from the date hereof. Prospect Heights shall have the
option to extend this Contract for an additional ten (10) year period. The Contract
may be renewed for any additional term permitted by law upon such terms and
conditions and rate adjustments, if any, which may be then agreed by and between
Prospect Heights and Mount Prospect.
21. Modification. This Contract may be amended only in writing and with the
consent of the governing bodies of both Mount Prospect and Prospect Heights.
22 - Hold Harmless. Prospect Heights and Mount Prospect mutually agree to
hold and save each other harmless from any and all claims, damages, suits,
causes of action and the like based on the fault or negligence of the other which
may arise by virtue of this Agreement.
23 - Notices. All notices of communications as provided for herein shall be
in writing and shall be either delivered to Mount Prospect or Prospect Heights, or
to the office of the clerk of the respective municipality; or, if mailed, shall be sent
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by registered mail, postage prepaid, to the office of the respective clerk of each
respective municipality.
24. Severability. In the event that any part, term or provision or paragraph
of this Contract shall be found to be illegal or in conflict with any law by any court
of proper jurisdiction, the validity of the remaining portions of provisions of this
Contract shall not be affected thereby.
IN WITNESS WHEREOF, the parties hereto acting under the authority granted
by their respective governing bodies have caused this Contract to be duly
executed in several counterparts, each of which shall constitute an original, all as
of the date and year first above written.
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EXHIBIT "B"
AMENDMENT TO AGREEMENT
BETWEEN THE VILLAGE OF MOUNT PROSPECT
AND THE CITY OF PROSPECT HEIGHTS
It has been determined by the corporate authorities of the Village of Mount
Prospect and the City of Prospect Heights that the best interests of both communities
would be served by amending the "Contract. for Sale of Water by the Village of Mount
Prospect to the City of Prospect Heights ", dated August 15,1994.
The "Contract for Sale of Water by the Village of Mount Prospect to the City of
Prospect Height?, dated August 15,1994 is hereby amended as follows:
1. Section 9 is hereby amended in its entirety; so that hereafter Section 9 shall be
and read as follows:
" Section 9. Other Connections, Mount Prospect and Prospect Heights
consent to one commercial service connection at the northeast comer of Camp
McDonald Road and IL 83 for a 15,120 sq. ft. commercial building. Plans for
connection and internal plumbing plans will be submitted for review and approval
to Mount Prospect.
a. The connection shall be equipped with a water measuring device meeting
Mount Prospect's specifications.
b. The connection shall be equipped with a water check valve to be mounted
close to the water measuring device as approved by Mount Prospect, in a
such a manner as to prevent the flow of water from the commercial
building back into the water system. In addition, a valve on each side of
the meter shall be provided.
c. Prospect Heights will be responsible for annual testing of the back water
check valve by a certified cross - connection control device inspector. A
copy of the inspection report shall be submitted to Mount Prospect
annually.
d. No other connection or extension to service other properties shall be
permitted without the joint consent of Mount Prospect and Prospect
Heights.
2. Section 10 is hereby amended by replacing the first paragraph in its entirety; so
that hereafter the first paragraph of Section 10 shall be and read as follows:
•
" Section 10. Measuring Equipment. Prospect Heights agrees to furnish, install
and replace, as may be necessary, at its own expense, at each point of delivery
and/or service connection hereunder to Prospect Heights the necessary meter
pits, valves and meters. All such equipment shall be of a standard type
approved by Mount Prospect and capable of reading rate and quantity; with the
capacity of accepting telemetering equipment to permit remote reading, for
measuring the quantity of water delivered and/or consumed under this Contract.
Meters will be tested and calibrated annually. "
3. Section 14 is hereby amended by adding thereto the following; so that hereafter
Section 14 shall include the following:
" For water used by the commercial service connection as described in Section 9
of this Agreement, the minimum amount charged by City of Prospect Heights
shall be the rate established by the Village of Mount Prospect for non- resident
users plus the capital expenditure surcharge as outlined in this Section. "
4. Section 19 is hereby amended in its entirety; so that hereafter Section 19 shall
be and read as follows:
" Section 19. No Resale. Other than the service connection described in
Section 9, Prospect Heights agrees not to resell or otherwise provide any water
provided pursuant to this Contract to any other user, without prior written
approval of Mount Prospect. If requested by Mount Prospect, the City of
Prospect Heights will, at its own time and expense, apply to the appropriate
State agency for permission to convey to Mount Prospect a portion of Prospect
Height's Lake Michigan water allocation that is equal to the use, pursuant to this
Contract. "
The Village of Mount Prospect and the City of Prospect Heights, acting under
the authority granted by their respective governing bodies, have caused this
Amendment to be added to the Agreement attached hereto as Exhibit "A" and is duly
executed in the same manner as the original Agreement this i o‘ day of
1997.
EXHIBIT C
SECOND AMENDMENT AND EXTENSION OF CONTRACT
FOR SALE OF WATER BY THE VILLAGE OF MOUNT PROSPECT
TO THE CITY OF PROSPECT HEIGHTS
This Second Amendment and Extension of Contract for Sale of Water by the Village of
Mount Prospect to the City of Prospect Heights (the "Agreement ") is made and entered
into this day of , 201_, by and between the Village of Mount Prospect, an
Illinois home rule municipal corporation, and the City of Prospect Heights, an Illinois
municipal corporation.
WHEREAS, on August 15, 1994, the Village of Mount Prospect and the City of
Prospect Heights entered into a Contract for Sale of Water by the Village of Mount
Prospect to the City of Prospect Heights (the "Contract "), regarding the sale of water for
the City's governmental properties along Camp McDonald Road, and on July 7, 1997, the
Contract was amended regarding the sale of water to a certain non - governmental
property; and
WHEREAS, paragraph 20 of the Contract provides an initial term of ten (10)
years from the effective date, subject to the City of Prospect Heights' option to extend the
Contract for an additional ten (10) year period, and such other extension periods and
terms as the parties may agree upon; and
WHEREAS, the authorized term under paragraph 20 of the Contract expired on
August 15, 2004, though the parties continue to perform under its terms; and
WHEREAS, the City of Prospect Heights has requested an extension of the
Contract for that additional ten (10) year period, as well as an additional ten (10) year
period, and the Village of Mount Prospect agrees to such extension; and
WHEREAS, the Village of Mount Prospect and the City of Prospect Heights
further agree that paragraph 20 of the Contract be amended to permit subsequent ten (10)
year extension periods upon their mutual approval and agreed upon terms and conditions.
NOW THERFORE, in consideration of the mutual covenants contained herein,
and for valuable consideration received, the receipt and sufficiency of which is hereby
acknowledged, the Village of Mount Prospect and the City of Prospect Heights agree as
follows:
SECTION 1: That the recitals set forth above are incorporated herein as findings
of the Parties as if set fully forth.
261111_2
SECTION 2: That the Village of Mount Prospect and City of Prospect Heights
hereby agree to an extension of the Contract, as amended, from August 16, 2004, to
August 15, 2024, the terms of said Contract being continued as set forth therein.
SECTION 3: That Paragraph 20 of the Contract be amended to be and read as
follows in its entirety:
20. Term of Contract. This Contract shall continue in full force and effect
for a period of ten (10) years from the date hereof. Prospect Heights shall
have the option to extend this Contract for an additional ten (10) year
period. The Contract may be extended thereafter for successive ten (10)
year periods pursuant to the mutual written agreement of Prospect Heights
and Mount Prospect, upon such terms and conditions and rate adjustments,
if any, to which they may agree.
IN WITNESS WHEREOF, the Village of Mount Prospect and the City of
Prospect Heights, acting under the authority granted by their respective governing bodies,
have caused this Agreement to be duly executed in several counterparts, each of which
shall constitute an original, all as of the date and year first written above.
Village of Mount Prospect City of Prospect Heights
An Illinois home rule municipal corporation An Illinois municipal corporation
By: By:
Mayor Mayor
Attest: Attest:
M. Lisa Angell, Village Clerk , City Clerk
2611112
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