R-748 - 05/23/2000 - AGREEMENT - Resolutions ExhibitsAN INTERGOVERNMENTAL AGREEMENT
BETWEEN THE CITY OF OAKBROOK TERRACE,
THE VILLAGE OF OAK BROOK AND LINCOLN
WHEREAS, the City of Oakbrook Terrace ( "City ") has recently begun receiving water from
the DuPage Water Commission ( "Commission "), and distributing it to its residents in a portion of
the City; and
WHEREAS, Lincoln - Oakbrook Terrace I, LLC and Lincoln - Oakbrook Terrace II, LLC
( "Lincoln ") is the owner of land within the City and is currently involved in the construction of two
office buildings, and other facilities, and is required by ordinance to purchase water from the City;
and
WHEREAS, the City has determined that the most expedient manner of serving Lincoln is
to construct a Second Connection to the transmission system of the DuPage Water Commission, at
a location near the junction of Trans Am Plaza Drive and Illinois Route 56; and
WHEREAS, the buildings under construction by Lincoln require a source for construction
water, fire flow and regular water usage until such time as the City can complete and make
operational the construction of the Second Connection point, pressure adjusting station, and feeder
mains ( "Second Connection ") to furnish water to the City's system; and
WHEREAS, the Village of Oak Brook ( "Village ") is also a member of the DuPage Water
Commission and owns a water transmission line adjacent to Lincoln, which is adequate in size to
provide, on a temporary basis, enough water to allow the City to supply Lincoln; and
WHEREAS, the Village and the City have previously entered into an intergovernmental
agreement for the installation of an interconnect between the City's water supply system and the
Village's water supply system, pursuant to an agreement dated July 15, 1998, and the First
Interconnection ( "First Interconnection ") has been completed and approved by the City and the
Village and is operational, and the City and the Village are agreeable to the installation of a Second
Interconnection ( "Second Interconnection ") to be used to temporarily furnish Lincoln's domestic
water and fire protection water; and
WHEREAS, the existing water system installed by the City possesses adequate capacity to
temporarily and as requested by the Village, through the First Interconnection, provide water to the
Village's water system equal to the full water requirement of Lincoln; and
WHEREAS, based upon the promise by the City to provide, upon request, supplementary
water to the system of the Village, through the First Interconnection, the Village is willing to provide
water temporarily to Lincoln through the Second Interconnection; and
WHEREAS, the parties agree that, upon the completion of the City's Second Connection,
Lincoln will receive its water supply only by means of the Second Connection, pursuant to the City's
ordinance, and the Second Interconnection shall continue only pursuant to an agreement, typical
between adjoining communities providing for emergency interconnection; and
WHEREAS, the City is willing to provide water into the Village's water system, through the
First Interconnection, so long as its ability to do so shall not require the addition or expansion of its
existing system and so long as it is able to provide adequate water supplies to all of its own
customers, including Lincoln, subject to the termination provisions and other conditions set forth
in this Agreement; and
WHEREAS, units of local government and private entities are permitted under the
Constitution and statutes of the State of Illinois to enter intergovernmental agreements in any manner
not prohibited by law or by ordinance;
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NOW, THEREFORE, is it agreed among the City of Oakbrook Terrace, the Village of Oak
Brook and Lincoln in accordance with the authority established within the Constitution and statutes
of the State of Illinois, and in consideration of the mutual promises set forth in this Agreement, as
follows:
1. The provisions of the whereas clauses are added to and made a part of this
Agreement.
2. The Village will temporarily provide potable Lake Michigan water to the City's water
system abutting Lincoln's properties legally described in Exhibit A and made a part of this
Agreement through the Second Interconnection. The quantity of water to be provided shall be the
full water needs of Lincoln, but shall be strictly subject to such other conditions and limitations as
are set forth in this Agreement.
3. Lincoln will pay the construction cost of the Second Interconnection, subject to any
recapture agreement with the City. The Second Interconnection shall be designed to conform to the
ordinances of the City and the Village, and shall serve as the Second Interconnection between the
water systems of the two municipalities and shall be subject to whatever emergency interconnect
agreement shall be in place from time -to -time, and the regulations of the Commission. Once the
Second Interconnection is constructed, the City shall sell water to Lincoln and shall bill Lincoln at
the rate charged its other commercial customers. The water shall be metered and Lincoln shall
comply with all the rules and regulations governing entities which receive water from the City. The
parties shall cooperate to take action aimed at expediting the construction process.
4. Immediately upon the execution of this Agreement, the City shall proceed in a
reasonably timely manner and in accordance with another written agreement with Lincoln to cause
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the construction of and to place into service a Second Connection to the Commission transmission
system in the vicinity of Lincoln, which, upon its completion, shall be adequate in size to fully
service Lincoln and other nearby undeveloped properties. When the Second Connection is
completed and Lincoln is receiving water by means of the Second Connection, the Village's
obligation to allow its system to serve as a conduit for water to be served to Lincoln shall henceforth
cease and Lincoln shall purchase all of its water needs by means of the Second Connection from the
City.
5. Lincoln specifically acknowledges that the delivery of water to the City's Water
System by the Village is granted as an accommodation and the Village does not intend nor shall it
be obligated to provide water to the City's Water System or the City's customers, including Lincoln,
other than under the terms of this Agreement. The use of the Village's system as a conduit for water,
or its decision to allow the City to serve Lincoln by drawing water from the Village's system shall
be strictly conditioned upon the Village's ability to receive into its system through the First
Interconnection, and at its request, an amount of water at least equal to that being delivered to the
City's Water System through the Second Interconnection. The parties acknowledge that there are
alternative water sources, including well water, available to Lincoln. In the event that the City is
unable for any reason or is unwilling to deliver into the Village's water system through the First
Interconnection an amount of water which is at least equal to the amount of water which is being
delivered into the City's Water System at the Second Interconnection, the Village may, upon 30
days' written notice to Lincoln and the City, cease to continue delivery of water to the City's system
through the Second Interconnection; in such event Lincoln and the City hereby waive any claim for
damages of any kind against the Village and its officers, employees and independent contractors
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associated with the partial or full water shut off by the Village. The City and Lincoln, and each of
them, shall, and do hereby agree to pay all expenses, including legal fees and administrative
expenses, incurred by the Village in defending itself with regard to any and all of the matters
mentioned in this paragraph 5. As an additional inducement to the Village to enter into this
Agreement, Lincoln and the City, and each of them, hereby release the Village from, agrees that the
Village shall not be liable for, and agrees to indemnify and hold the Village harmless from: (a) any
damages resulting from either the failure to supply water to the City's system through the Second
Interconnection or for any interruptions of, limitation on, or delay in, the delivery of water to the
City's water system through the Second Interconnection, resulting from the City's cessation of,
interruption(s) of, limitation on, or delay in the delivery of, water to the Village's system through
the First Interconnection; and (b) any claims, litigation, and liabilities for any loss or damage to
property or any injury to, or death of, any person that may be occasioned by, connected with, or in
any way attributable to, any failure by the Village either to comply with any of the terms or
conditions of this Agreement or to provide water to the City's water system through the Second
Interconnection, resulting from the City's cessation of, interruption(s) of, limitation on, or delay in
the delivery of, water to the Village's system through the First Interconnection.
6. During such time as the City is providing water to Lincoln by means of the Second
Interconnection, the City shall use its best efforts to provide, upon the request of the Village, water
in at least that equal amount to the Village through the First Interconnection; provided, however, that
the City shall not be required to install any new equipment necessary to allow it to provide water to
the Village. It is the belief of the parties that the First Interconnection is adequate to permit, on a
regular basis, excess City water capacity to be delivered, on request, to the Village. If any equipment
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is necessary to allow the City to serve the Village, in amounts required by Lincoln, the installation
and cost of that equipment shall be the responsibility of Lincoln. The cost of such equipment shall
not exceed $10,000. The City shall at all times operate its existing system in a proper and efficient
manner so as to provide as it may be requested, at least as much water into the Village system as the
City's system shall receive by means of the Second Interconnection. The water being furnished to
the Village through the First Interconnection shall be metered and the Village shall pay the
Commission for such water used the same amount it pays per thousand gallons to the Commission.
7. This Agreement should be understood and interpreted in light of the parties'
expectation that the Second Connection will be installed and operational within approximately one
(1) year from the date of this Agreement. However, the parties acknowledge that unforeseen
conditions, labor or material shortages, strikes, or construction difficulties may delay the completion
of this connection and Lincoln shall be entitled to obtain Lincoln's water requirements through the
Second Interconnection during any time as the City is able to supply at least that quantity of water
to the Village through the First Interconnection.
8. The parties acknowledge that they have received a copy of, read and approved, a
certain agreement entitled "Intergovernmental Agreement Concerning the Construction and
Operation of Joint Facility and Interim and Emergency Water Deliveries" ( "DWC Agreement ") by
and between the DuPage Water Commission, the City and the Village, which was approved by the
DuPage Water Commission by Ordinance No. 0 -2 -00 on March 9, 2000. Notwithstanding the fact
that Lincoln is not a party to the DWC Agreement, if there is any conflict or inconsistency between
the terms of this Agreement and the terms of the DWC Agreement, the parties agree that the terms
of the DWC Agreement shall control. The parties agree and acknowledge that to the best of their
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belief and opinion, this Agreement is consistent with and is not in conflict with, the provisions of
the DWC Agreement. If, however, a determination is made that the provisions of this Agreement
are in conflict or inconsistent with the terms of the DWC Agreement, then the parties to this
Agreement shall use their best efforts to undertake all such actions, including such amendments,
modifications or revisions of this Agreement as may be necessary to continue this Agreement in full
force and effect and to effectuate the intent of the parties in the execution of this Agreement.
9. Mutual Assistance. The parties agree to take such actions, including execution and
delivery of such documents, instruments, petitions and certifications, and in the case of each
municipality, the adoption of such ordinances and resolutions, as may be necessary or appropriate,
from time to time, to carry out the terms, provisions and intent of this Agreement and to aid and
assist each other in carrying out said terms, provisions and intent, including undertaking such actions
or refraining from taking such actions as may be consistent with law to assure and to effectuate the
purposes and intents of this Agreement, the DWC Agreement, and any agreement between the City
and Lincoln.
DATED: June 13 , 2000
CITY OF OAKBROO TE E,
a muni i L c por ti n
lu
t.
Atte t:
City Clerk
VILLAGE OF OAK BROOK,
a municipal corporation
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LINCOLN - OAKBROOK TERRACE II -LLC,
a Delaware limited liability company
By: LINCOLN MANAGING MEMBER I, Inc.
a Texas Corporation, its Managing Member
By:
Name: John Gri ssim
Title: E.V.P.
H \Shannon \Lincoln igag revised page 8 6 9 00 doc
g
LINCOLN OAKBROOK TERRACE I -LLC,
a Delaware limited liability company
By: LINCOLN MANAGING MEMBER I, Inc.
a Texas Corporation, its Managing Member
By:
Name: John Grissim
Title: E.Y.P.
EXHIBIT A
LOTS 1 AND 4 IN LINCOLN CENTRE UNIT NO. 1, BEING A
SUBDIVISION IN A PART OF THE SOUTHEAST QUARTER OF
SECTION 21 AND A PART OF THE NORTHEAST QUARTER
OF SECTION 28 BOTH IN TOWNSHIP 39 NORTH, RANGE 11,
EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING
TO THE PLAT THEREOF RECORDED MAY 192 1986 AS
DOCUMENT R86 -47717 IN DUPAGE COUNTY, ILLINOIS.