Loading...
Resolution 2024-24Resolution No. 2024-24 RESOLUTION AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT PROVIDING FOR THE SHARING OF COSTS AND FUNDING FOR THE CONSTRUCTION OF FACILITIES TO TRANSPORT LAKE MICHIGAN WATER TO THE VILLAGE OF OSWEGO, KENDALL AND WILL COUNTIES, ILLINOIS, THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS, AND THE VILLAGE OF MONTGOMERY, KANE AND KENDALL COUNTIES, ILLINOIS WHEREAS, the United City of Yorkville, Kendall County, Illinois, the Village of Oswego and the Village of Montgomery are duly organized units of government of the State of Illinois within the meaning of Article VII, Section 10 of the 1970 Illinois Constitution (collectively, the "Municipalities"); and WHEREAS, the Constitution of the State of Illinois of 1970, Article VII, Section 10, and the Intergovernmental Cooperation Act, 5 ILCS 220/1 et seq., authorize units of local government to contract or otherwise associate among themselves to obtain or share services and to exercise, combine, or transfer any power or function in any manner not prohibited by law; and WHEREAS, the Intergovernmental Cooperation Act (5 ILCS 220/1 et seq.) provides that any power or powers, privileges, functions, or authority exercised, or which may be exercised by a public agency may be exercised, combined, transferred, and enjoyed jointly with another public agency;and WHEREAS, in December of 2021, following public comment, the corporate authorities of the Municipalities each approved the joint pursuit of Lake Michigan water supply from the DuPage Water Commission (the "DWC"); and WHEREAS, after good faith negotiation and careful consideration and deliberation, the Municipalities desire to enter into an Intergovernmental Agreement to share in the costs of financing the design, land acquisition, permitting, and construction of the infrastructure needed for the transmission of Lake Michigan water from the DWC to the Municipalities. NOW, THEREFORE, BE IT RESOLVED by the Mayor and the City Council of the United City of Yorkville, Kendall County, Illinois, as follows: Section 1. The recitals set forth above are incorporated into this Resolution as if fully restated herein. Section 2. That the Intergovernmental Agreement between the Municipalities, attached hereto as Exhibit "I", is hereby approved and its execution is hereby authorized. Resolution No. 2024-24 Page 1 Section 3. All Resolutions or parts of Resolutions in conflict with any of the provisions of this Resolution shall be, and the same hereby repealed to the extent of the conflict. Section 4. This Resolution and every provision thereof shall be considered severable. If any section, paragraph, clause or provision of this Resolution is declared by a court of law to be invalid or unconstitutional, the invalidity or unconstitutionality thereof shall not affect the validity of any other provisions of this Resolution. Section 5. This Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this 141h day of May, A.D. 2024. 4CfCLERIK KEN KOCH AYE DAN TRANSIER AYE ARDEN JOE PLOCHER AYE CRAIG SOLING AYE CHRIS FUNKHOUSER AYE MATT MAREK AYE SEAVER TARULIS AYE RUSTY CORNEILS AYE APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois this day of ��(� , A.D. 2024. 1 MAYOR Resolution No. 2024-24 Page 2 EXHIBIT 1 EVMGOVERNM[ENTALAGREEMENTFROVIDING FOR THE SHARING OF COSTS AND FUNDING FOR THE CONSTRUCTION OF FACILITIES TO TRANSPORT LAKE MICH[GAN WATER TO THE VILLAGE OF OSWEGO, ]KENDALL AND WILL COUNTIES, ILLINOIS, THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS, AND THE VILLAGE OF MONTGOMERY, KANE AND ]KENDALL COUNTIES, ILLINOIS THIS INTERGOVERNMENTAL AGREEMENT (the "Agreement') by and among 1) the Village of Oswego, Kendall and Will Counties, Illinois ("Oswego') a home rule municipal corporation of the State of Illinois, 2) the United City of Yorkville, Kendall County, Illinois ("Yorkville') a non -home rule municipal corporation of the State of Illinois, and 3) the Village of Montgomery, Kane and Kendall Counties, Illinois ("Montgomery'), a non -home rule municipal corporation of the State of Illinois, (individually the "Municipality ", collectively, the Municipalities) entered into this 14ffi day of May, 2024, provides for sharing of the costs for the goods and services related to the construction of facilities to transport Lake Michigan Water to the Municipalities and to jointly select and approve architects, engineers, consultants, professional service providers, financial advisors, real estate advisors and consultants, construction and trades, and other related firms ("Vendors') to design, acquire land, permit, and construct the infrastructure needed for the transmission of Lake Michigan water from the DuPage Water Commission to the Municipalities ("Facilities") and other related costs, including, but not limited to loans and other financing options. In addition, this Agreement provides for the sharing of grants, loan forgiveness, or other financial benefits the Municipalities receive individually or collectively in the furtherance of the design and construction of the Facilities as agreed to by the Municipalities. RECITALS WHEREAS, the Constitution of the State of Illinois of 1970, Article VII, Section 10, provides that units of local government may contract or otherwise associate among themselves to obtain or share goods and services and to exercise, combine, or transfer any power or function in any manner not prohibited by law or by ordinance and may use their credit, revenues, and other resources to pay costs related to intergovernmental activities; and WHEREAS, the Municipalities are units of local government within the meaning of Article VII, Section 1 of the Illinois Constitution of 1970 who are authorized to enter into intergovernmental agreements pursuant to the Intergovernmental Cooperation Act, 5 ILCS 220/1 et seq; and WHEREAS, the Intergovernmental Cooperation Act (5 ILCS 220/1 et seq.) provides that any power or powers, privileges, functions, or authority exercised, or which may be exercised by a public agency may be exercised, combined, transferred, and enjoyed jointly with another public agency; and WHEREAS, the Municipalities studied available alternative water sources ("Study" or "Studies') based upon population growth and water demand projections; and WHEREAS, each Municipality's Study concluded that to minimize costs and for the mutual benefit of each municipality and the region it is mutually beneficial for the Municipalities to work together to obtain Lake Michigan water from the DuPage Water Commission ("DWC"); and WHEREAS, each Municipality's Study considered the full water demand or needs when the three Municipalities are fully developed and upon each Municipality's evaluation to meet the 2050 water demands of Montgomery, Oswego, and Yorkville. Further, the alternative water sources were inclusive of the improvements and facilities required to meet 2050 water demands; and WHEREAS, in December of 2021, following public comment, the corporate authority of each Municipality approved the joint pursuit of Lake Michigan water supply from the DWC; and WHEREAS, the Municipalities have each obtained an Illinois Department of Natural Resources ("IDNR") Lake Michigan Water Allocation Permit; and WHEREAS, the Illinois General Assembly passed legislation amending the 1985 Water Supply Act, authorizing a 7th District to the DuPage Water Commission; and WHEREAS, the Municipalities have obtained federal grant monies to conduct a corrosion control study; and WHEREAS, the Municipalities continue to seek opportunities individually and collectively for additional federal, state, and local grant monies; and WHEREAS, the DWC is finalizing the route for the pipeline from the DuPage Water Commission for the transmission of Lake Michigan water ("Facilities") Facilities as described in Exhibit 1, incorporated herein by reference; and WHEREAS, the Municipalities are engaged in negotiations with the DWC for the cost of construction; and WHEREAS, the Municipalities are engaged in negotiations with the DWC for long-term water supply agreements, including their role as members of District Seven; and WHEREAS, the Municipalities have previously entered into two escrow agreements with the DWC for the initiation of engineering design services while the Municipalities finalized this Agreement; and WHEREAS, the first escrow agreement entered into in 2023 provided for the cost -sharing to be equally divided among the three Municipalities; and WHEREAS, according to the March 2024 escrow agreement, the Municipalities agreed to recalculate and reallocate the costs based on the percentages identified in Exhibit 2 after the execution of this Agreement; and WHEREAS, the Municipalities are committed to share in the costs of the Facilities, 3 including any change orders, so that membership in the DuPage Water Commission continues, to be an efficient and cost-effective option for all the Municipalities; and WHEREAS, the Municipalities, after review and deliberation recognize the need to construct seven (7) metering stations and seven (7) receiving stations to bring Lake Michigan Water to the Municipalities. The Municipalities as part of this Agreement have agreed to share in the cost of the seven (7) metering stations and to consider the seven (7) receiving stations as Internal System Improvements to be absorbed by the applicable Municipality; and WHEREAS, as part of their decision -making, the Municipalities took into consideration various cost allocation methodologies including use, distance, and other more nuanced and complex means to allocate the shared costs among the Municipalities; and WHEREAS, the Municipalities desire to have a fully operational connection to Lake Michigan water supply on or about July 2, 2028; and WHEREAS, Montgomery may elect to receive water from DWC at a later time, but no sooner than December 31, 2030; and WHEREAS, each Municipality, at its costs, will make internal system improvements within its system to accommodate the receipt of Lake Michigan water and in compliance with the IDNR laws, rules, and regulations ("Internal System Improvements")'; and WHEREAS, the Municipalities acknowledge and recognize that this Agreement is for the mutual benefit of each Municipality and the region. Further, acting together creates economies of scale and minimizes costs associated with the design and construction of the Facilities; and WHEREAS, the Municipalities may enter into individual agreements, with the intent to ' Internal System Improvement costs include the costs to design, permit, and construct the improvements needed within each Municipality's water system to effectively move Lake Michigan water within its distribution system once received from DWC. 4 share in the costs (including change orders) to design and construct Facilities for the transmission of Lake Michigan water and all other related costs from the DWC within each Municipality; and WHEREAS, the Municipalities may enter into individual agreements with the intent not to share in the costs (including change orders) to design and construct Facilities for the transmission of Lake Michigan water and all other related costs from the DWC within each Municipality; and WHEREAS, the Municipalities seek to enter into this Agreement to share in agreed -to costs for the goods and services of Vendors necessary to design and construct the Facilities, including, but not limited to, engineering and architecture, professional services, land acquisition, financing, surveys, construction, studies related to permitting, and other activities related to the design and construction of the Facilities that will transport and distribute Lake Michigan water from the DWC to each Municipality; and WHEREAS, unless otherwise agreed, the cost to construct a Municipality's Internal System Improvements that are not a part of the Facilities, will be borne by each respective Municipality; and WHEREAS, unless otherwise agreed, the Municipalities seek to enter into agreements to share in the costs of financing, funding, or other forms of financing including but not limited to grants, public and private loan funds, bonds, and other similar forms and finance structures; and WHEREAS, unless otherwise agreed, the Municipalities seek to enter into this Agreement to share in the costs and proceeds from grants, loan forgiveness, or other types of financial benefits the Municipalities receive individually or collectively in the furtherance of the design and construction of the Facilities and all other related costs; and WHEREAS, the division of financial responsibilities of each of the Municipalities are 5 described in Exhibit 2, incorporated herein by reference. The Municipalities recognize certain parts of the Facilities will only serve one or two of the Municipalities and will not be shared by the third Municipality; NOW, THEREFORE, in consideration of the mutual promises, obligations, and undertakings hereafter set forth, the Municipalities agree as follows: Section 1. The foregoing recitals are incorporated into this Agreement as if fully restated in this Section 1. Section 2. The Municipalities agree to continue to work with DWC on the final transmission main route of the Facilities from DWC to the Municipalities that is efficient and cost-effective; and Section 3. The Municipalities agree to cooperate with DWC in value engineering the project to construct the Facilities; and Section 3. The Municipalities agree to coordinate and cooperate to jointly select and approve Vendors necessary to construct the Facilities, it being understood that the selection process must be or have been in accordance with all applicable ordinances and laws of the United States and the State of Illinois, as applicable, and will be by unanimous consent of the Municipalities. Section 3. Prior to the selection of any Vendor for the Facilities, the Municipalities will work together to determine the scopes of work or assignment, the deliverables, and the estimated costs. It is understood that all contracts or agreements with an estimated cost in excess of $25,000 to any one Municipality must be approved by the corporate authorities of each of the respective Municipalities prior to the commencement of work. Section 4. After careful consideration and deliberation, the Municipalities, upon 2 execution of a construction agreement(s) with DWC for the construction of the Facilities and all other costs, excluding each Municipality's Internal System Improvement costs, agree to the cost - sharing allocation percentages as described in Exhibit 2. Section 5. The Municipalities agree to review all invoices for goods and services rendered and to distinguish those costs which serve any single Municipality over the other Municipality, which cost will be paid by the benefitted Municipalities. Payment of all invoices must follow the Illinois Prompt Payment Act. It is further acknowledged that there are certain parts of the Facilities that will only serve one or two of the Municipalities and will not be shared by the third Municipality. The division of financial responsibilities of each of the Municipalities are described in Exhibit 2, incorporated herein by reference. Section 6. This Agreement and the rights of the Municipalities hereunder may not be assigned without consent (except by operation of law), and the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties hereto. Nothing in this Agreement, express or implied, is intended to confer upon any party, other than the Municipalities and their respective successors; and Section 7. This Agreement shall be interpreted and enforced under the laws of the State of Illinois. Any legal proceeding related to enforcement of this Agreement must be brought in the Circuit Court of Kendall County, Illinois. In case any provision of this Agreement is declared and/or found invalid, illegal or unenforceable by a court of competent jurisdiction, that provision shall, to the extent possible, be modified by the court in such manner as to be valid, legal and enforceable so as to most nearly retain the intent of the Municipalities, and, if such modification is not possible, the provision should be severed from this Agreement, and in either case the validity, legality, and enforceability of the remaining provisions of this Agreement will not be affected or impaired thereby. Section 8. All notices required or permitted by this Agreement must be in writing and may be given by (a) depositing the same in the United States mail, addressed to the party to be notified, postage prepaid and certified with the return receipt requested, (b) delivering the same in person, or (c) telecopying the same with electronic confirmation of receipt. If to the Village of Oswego: With a copy to: If to the City of Yorkville: With a copy to: If to the Village of Montgomery: Village Administrator Village of Oswego 100 Parkers Mill Oswego, Illinois 60543 David Silverman Mahoney, Silverman & Cross, LLC 822 Infantry Drive, Suite 100 Joliet, Illinois 60435 City Administrator United City of Yorkville 651 Prairie Pointe Drive Yorkville, Illinois 60560 Kathleen Field Orr 2024 Hickory Road, Suite 205 Homewood, Illinois 60430 Village Administrator Village of Montgomery 200 North River Street Montgomery, Illinois 60538 With a copy to: Laura M. Julien Mickey, Wilson, Weiler, Renzi & Andersson 140 South Municipal Drive Sugar Grove, Illinois 60542 Or any such other person, counsel or address as any Municipality specifies pursuant to this Section. Section 9. This Agreement may be executed in counterparts, each of which will be 8 deemed to be an original. Section 10. This Agreement represents the entire agreement among the Municipalities pertaining to sharing the costs of designing, constructing, funding, and financing the Facilities and there are no other promises or conditions in any other agreement whether oral or written. Section]]. This Agreement shall be in full force and effect upon approval by resolution adopted by the corporate authorities of their respective Municipalities; provided, however, any Municipality may terminate this Agreement by providing sixty (60) calendar days' advance written notice to the other Municipalities. In the event a Municipality terminates participation in this joint undertaking, that Municipality will be responsible for its share of all costs incurred and costs to be incurred due to written contracts or commitments. If a Municipality terminates its participation in this Agreement, this Agreement will remain in full force and effect between the remaining two Municipalities. hereto. Section 12. This Agreement may be amended only with written consent of all Parties [SIGNATURE PAGE TO FOLLOW] IN WITNESS WHEREOF, this Agreement, among the Village of Oswego, Kendall and Will Counties, Illinois, the United City of Yorkville, Kendall County, Illinois, and the Village of Montgomery, Kane and Kendall Counties, Illinois have executed this Agreement as dated below by each Mayor: United City of Yorkville, Kendall County, Illinois, a municipal oration By: _ Mayor Attest:Corp te • { SV�� ity Jerk ••••Village of Oswego, Kendall and Will Counties, Illinois, a Tunicipal corporation OF O's ■ pOR4� Attest: - a ' V-09 �� Village Clerk "',,4�[ .coUN•�`t f,�►►►I rl! 1! n it n1HH���', Village of Montgomery, Kane and Kendall Counties, Illinois, a municipal corporation By: /%%%� 8 President // to EXHIBIT 1 FACILITIES' ROUTE MAP DuPage Water Commission Transmission Main Route DRAFT-Aprl12024 11 EXHIBIT 2 DIVISION OF FINANCIAL RESPONSIBILITIES/ ALLOCATION OF COSTS The Village of Oswego, the Village of Montgomery, and the United City of Yorkville after careful consideration and deliberation agree to the following cost -sharing percentages for the Construction Agreement with DWC for the construction of the Facilities and all other agreed to costs, excluding each Municipality's Internal System Improvement costs: The Village of Oswego commits and agrees to pay 35.36% The Village of Montgomery commits and agrees to pay 24.42% The United City of Yorkville commits and agrees to pay 40.22% [THE REMAINDER OF THIS PAGE IS BLANK] 12