R-1018 - 05/27/2008 - AGREEMENT-WATER - Resolutions Supporting Documentsr( }}Y
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ITEM 9,B,2i
AGENDA ITEM
Regular Board of Trustees Meeting
of
May 27, 2008
SUBJECT: Yorkfield Area Water System Purchase Agreement
FROM: David J. Niemeyer, Village Manager
BUDGET SOURCE /BUDGET IMPACT: N/A
RECOMMENDED MOTION: A Resolution R -1018 approving the Yorkfield Area Water
System Purchase Agreement by and between the City of Elmhurst and the Village of Oak
Brook.
Backi!round/History:
A number of years ago, Oak Brook and Elmhurst began discussions on the sale of the Yorkfield
portion of the Village of Oak Brook water system to the City of Elmhurst. Elmhurst Hospital is
in need of tying into this system as a result of their expansion. The area is generally an
unincorporated area north of Roosevelt Road, south of Butterfield Road, east of Euclid Avenue,
and west of Caldwell Avenue adjacent to Elmhurst.
In 2004 the Village engaged Alvord, Burdick, and Howson to come up with a valuation for the
area. The report outlined a low value of $110,000 based on an economic value to the City of
Elmhurst to a high of $889,000 based on reproduction cost for a new system less depreciation.
The two communities Board's eventually agreed on a sale price of $350,000. According to
previous staff memos, this represented seven years of net revenue to the area. Over the past
several months Attorney Sterk, Mike Meranda, Dale Durfey and I have been working on a
purchase agreement for the sale of this part of the system to Elmhurst. Attached is final draft of
the agreement that was approved by the Elmhurst City Council last week. The sale closing is
scheduled for May 28, 2008.
It should be noted that if the Village decided not to sell the system we would have to spend
upwards of $4.5 million between 2016 and 2018 for water main and hydrant replacement.
Last saved by Default J \Agenda ItemsWorkfield Area Water Purchase doc
Last pnnted 5/22/2008 4 08 PM
Recommendation:
That the Board of Trustees approve the Resolution R -1018, approving the
System Purchase Agreement by and between the City of Elmhurst and th e
Brook.
Last saved by Default J \Agenda Items \Yorkfield Area Water Purchase doc
Last punted 5/22/2008 4 08 PM
Yorkfield Area Water
Village of Oak
RESOLUTION 2008- AG- WA -EX1 -R -1018
A RESOLUTION APPROVING THE YORKFIELD AREA WATER SYSTEM
PURCHASE AGREEMENT BY AND BETWEEN THE CITY OF ELMHURST
AND THE VILLAGE OF OAK BROOK
WHEREAS, the Village of Oak Brook ( "Oak Brook ") owns and operates a water system known as
the Yorkfield Area Water System as described in the Purchase Agreement attached hereto as Exhibit A;
and
WHEREAS, the City of Elmhurst ( "Elmhurst') desires to purchase the Water System from Oak
Brook substantially in conformance with the Purchase Agreement; and
WHEREAS, Oak Brook will sell the Water System to Elmhurst substantially in conformance with
the Purchase Agreement.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS, as follows -
Section 1: The foregoing preambles are restated and incorporated herein by reference as though
fully set forth herein.
Section 2: The Purchase Agreement in the form attached hereto as Exhibit A is hereby approved
subject to review and approval of the Village Attorney.
Section 3: Upon approval of the Village Attorney, the President and the Village Clerk are
authorized to execute and attest the Purchase Agreement and such other documents as may be
necessary to effectuate the sale of the Water System to Elmhurst.
Section 3. If any section, paragraph, clause or provision of this resolution shall be held invalid, the
invalidity thereof shall not affect any of the other provisions of this resolution.
Section 4: All resolutions in conflict herewith are hereby repealed to the extent of such conflict.
Section 5: This resolution shall be in full force and effect from and after its passage, approval and
publication as required by law.
APPROVED THIS day of May, 2008.
PASSED THIS day of May, 2008.
Ayes:
Nays:
Absent:
John W. Craig
Village President
ATTEST:
Charlotte Pruss
Village Clerk