R-842 - 04/08/2003 - WATER - Resolutions2003 —DWC —R -842
RESOLUTION AFFIRMING THE PRINCIPLES OF THE WATER
COMMISSION ACT OF 1985 AND THE WATER PURCHASE AND
SALES CONTRACT OF JUNE 11, 1986
WHEREAS, the Village of Oak Brook, a municipal corporation, is a Charter
Member of the DuPage County Water Commission (hereinafter "Commission "); and
WHEREAS, the Commission was established by the Water Commission Act of
1985 (70 ILLS, 3720/1) hereinafter "the Act;" and
WHEREAS, the Act provides in part:
"the County Water Commission shall continue to be a body politic and
corporate, and shall bear the name of the home county, but shall be
independent from and not part of the county government and shall itself be
a political subdivision and unit of government...;" and
WHEREAS, in` addition to the Act, the Water Commission and Charter
Customers are bound by the covenants, terms and conditions of the DuPage Water
Commission Water Purchase and Sale Contract (hereinafter "Charter Contract "); a
WHEREAS, the purpose of the DuPage County Water Commission is to provide
water to those eligible to receive water under, and in conformance with, the Act and ;the
Charter Contract; and
WHEREAS, the Water Commission is not a home rule unit; and
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non -home rule unit the Water Commission is bound to conform
WHEREAS, as a ,
to the terms of the Act and the Charter Contract; and
WHEREAS, a portion of the DuPage County Water Commission's revenues Aare
provided by a sales tax which was approved by the voters of DuPage County solely to
provide financial resources for the Water Commission; and
WHEREAS, recent agenda items before the Water Commission suggest activities
inconsistent with the Act and Charter Contract; and
WHEREAS, the Charter Contract provides that the Commission has been
organized "to supply water within its territorial limits;" and
WHEREAS, the Act provides that the territory of the Water Commission includes
its home county except that territory located within the corporate limits of "excluded
units;" and
WHEREAS, under the Act, an "excluded unit" means a unit of local government
having a waterworks system and having within its corporate limits territory within the
home county and which, at the time any commission becomes a county Water
Commission, receives, or has contracted at such time for the receipt of, more than 25% of
the water distributed by such units water system from a source outside the home county;
and
WHEREAS, one of the proposals before the Water Commission suggests that
"excluded units" be provided commission water; and
WHEREAS, the provision of water to "excluded units," by the Commission,
would be an ultra vires act and is not authorized by the Act or the Charter Contract; and
WHEREAS, the Charter Contract provides that a "subsequent customer" under
the contract must have a "water allocation;" and
WHEREAS, some of the "excluded units" proposed as "subsequent customers" of
the commission do not have "water allocations;" and
WHEREAS, providing water to a "subsequent customer" without a "water
allocation" would be ultra vires under the terms of the Charter Contract; and
WHEREAS, the Charter Contract further provides in part:
"that the Commission shall not enter into contracts with Customers that
would cause the Commission to be obligated to lake water in excess of
(iii): an amount which would decrease the amount of lake water then
being supplied or to be supplied in the future to the Charter Customer ;"
and
WHEREAS, a report prepared by the Water Commission's engineer indicates that
providing water to the proposed "excluded units" has the impact of decreasing the
amount of the lake water then being supplied to the Charter Customers, and incurring
$52,000,000 in additional costs for transmission mains; and
WHEREAS, the Charter Contract provides in part:
"The Commission shall not supply lake water except pursuant to a written
contract. No subsequent contract shall provide rates, charges or terms
lower or more favorable to the subsequent customer than those provided in
this contract for the charter customers,"
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WHEREAS, proposals before the Water Commission suggest that subsequent
contracts not require "subsequent customers" to pay the missed fixed costs required to
be paid under the Charter Contract; and
WHEREAS, proposals before the Water Commission provide no payment for the
"excluded units" to pay for water to be transmitted from Chicago to DuPage which i
now funded by DuPage sales tax (missed transmission costs); and
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WHEREAS, any contract absolving a "subsequent customer" from paying the
missed fixed costs and missed transmission costs would be in contravention of the
Charter Contract; and
WHEREAS, the Village of Oak Brook, wishes to affirm the principles of the
Water Commission Act of 1985 and the Charter Contract so as to protect the water
supply provided pursuant to the Commission's charter and to maintain a source of '
affordable and clean water for the Charter Customers, the Subsequent Customers, and
those lawfully eligible to become subsequent customers pursuant to the Act and the
Charter Contract; and f
WHEREAS, Water Commission staff has established that the Commission is
capable, based upon the current financial status of the Water Commission, of
maintaining the $1.65 rate through the 2006 -2007 years; and
WHEREAS, rates of the DuPage Water Commission would increase by fifty
percent without the support of the sales tax approved by the voters of DuPage County;
and
WHEREAS, the Water Commission has the highest financial rating of any agency
of its kind in the country as a result of sound fiscal management; and
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WHEREAS, based upon the multitude of variables effecting the provision ofjLake
Michigan water, it is essential that the Water Commission maintain financial soundness
in order to be able to fulfill its Charter of providing clean water in sufficient quantity to
charter customers, subsequent customers, and those lawfully eligible to be subsequent
customers.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD
OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DUPAGE AND COOK 1
COUNTIES, ILLINOIS, as follows:that the Village of Oak Brook hereby affirms the
principles of the Act and the Charter Contract and encourages the Water Commission to
undertake and support those actions which also affirm the Act and the Charter Contract
as follows:
A. Refrain from expending Commission resources to investigate providing
water to "excluded units" which are not lawfully qualified to receive water
through the Commission; and
B. Undertake those acts necessary to confirm its ability to supply through
2024 charter customers, subsequent customers, and those eligible to be
subsequent customers, adequate water by continued implementation of
past proven Water Commission water supply policies and practices; and
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C. Continue to provide full water requirements of each existing charter
customer, subsequent customer or lawfully qualified subsequent customer
in conformance with the Charter Contract; and
D. Require a clear written statement of interest from the elected authority of
such lawfully qualified subsequent customer before seeking to market
water to such lawfully qualified subsequent customer; and
E. Eliminate consideration of impact or tap -on fees; and j
F. Insure that sales tax continues to be used to maintain low and reasonable
water rates in conformance with the vote of DuPage County residents'; and
G. Notify the Charter Customers of any activity directed at seeking any
legislative amendments to the Act and seek prior Charter Customer
approval for such Amendments; and
H. Continue the commitment of equitable participation in the water system by
requiring subsequent customers, in conformance with the Charter
Contract, to make full payment of missed fixed costs as has been required
of other subsequent customers; and
I. Require appointed members of the Water Commission with a personal
interest in proposed Water Commission projects to identify that interest
and recuse themselves from the decision making process; and I
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J. Provide full and open communication to all Charter Customers through
commission staff so that all representatives receive equal and unbiased
information; and
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K. Provide reports or other information commissioned by the Commission to
its representatives and members; and
L. Act in conformance with the Open Meetings Act including, but not limited
to, approval of contracts or amendments to contracts in open session;'and
M. Comply with all terms, conditions and covenants of the Charter Contract.
BE IT FURTHER RESOLVED that the Village Clerk of the Village of Oak
Brook is hereby directed to forward a certified copy of this Resolution to the Water
Commission, its Chairman, and all of its Board Members.
PASSED AND APPROVED this 8th day of April , 2003 by the,
President and Board of Trustees of the Village of Oak Brook, DuPagel
and Cook Counties, Illinois, according to a roll call vote as follows:
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Trustees Aktipis, Caleel, Craig,
Korin, Miologos and Savino
AYES
None
NAYES
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4V-' e President-p-&+A-