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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. BOT AGENDA Page 1 I �C 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. i I BOT AGENDA Page 2