G-1182 - 03/23/2021 - WATER - Ordinances Supporting Documents ITEM 9.A.3
BOARD OF TRUSTEES MEETING
VILLA(,f 01 SAMUEL E. DEAN BOARD ROOM
OAK BR , ,K BUTLER GOVERNMENT CENTER
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
March 23, 2021
SUBJECT: Authorization to Approve an Asset Purchase Agreement, for the Sale of
Non-Resident Portions of the Villages Water System
FROM: Doug Patchin, Director of Public Works P 0
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: I move the Village Board Approve Passage of
Ordinance G-1182,An Ordinance to authorize and approve an Asset Purchase Agreement,
for the sale of Non-Resident Portions of the Villages Water System,which extends outside
the Village Corporate Limits.
Backp-round/History: In 2017, the Village Board authorized staff to investigate the
potential interest in purchasing the non-resident portions of the Village's water system,
which extends outside the Village's corporate limits. Staff started the discussions with the
surrounding adjacent communities. After over a year of discussions, the surrounding
communities informed staff that they were not interested in acquiring the water systems in
these areas.We then looked at potential interest from the private business sector,businesses
that purchase and maintain potable water systems. We found that there was an interest in
purchasing these portions on the village's water system.
Staff then worked with American Infrastructure Technologies, LLC (AIT) to develop and
write the specifications for a Request for Proposals (RFP). Staff also discussed the
Village's intention with the DuPage Water Commission (DWC), who supplies Lake
Michigan water to the Village.
In August of 2019,the Board authorized staff to conduct the Request for Proposals process
and on August 14, 2019, staff posted the RFP on the Village website and sent to two (2)
companies.
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The Village received sealed proposals from the two (2) companies and opened them on
September 4, 2019:
• Aqua Illinois, Inc., Kankakee, Illinois,proposed 12.5 Million
• Illinois American Water, Belleville, Illinois, proposed 5.5 Million or 8.5 Million
depending on an appraisal
Since then, staff has been meeting and working with the DuPage Water Commission
(DWC) and Aqua Illinois, Inc. (Aqua) on a cost estimate for the DWC Buy-In for Aqua,
who requires this cost before continuing with the Asset Purchase Agreement. The
Attorneys for both Aqua and the Village have finalized the Asset Purchase Agreement and
are now drafting a Wheeling Agreement. The Wheeling Agreement will be between DWC,
Aqua, and the Village.
The Wheeling Agreement is an Agreement for the Village to supply DWC water through
our infrastructure to Aqua until they can connect their system directly to DWC's system.
At that time, the Village's connections to the Aqua system will be through metered
Emergency Interconnects.
Recommendation: Staff recommends the Village Board Approve Passage of Ordinance
G-1182,An Ordinance to authorize and approve an Asset Purchase Agreement, for the sale
of Non-Resident Portions of the Villages Water System,which extends outside the Village
Corporate Limits.
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