HomeMy WebLinkAbout2017-01-23 Agenda7i .'
MORTON GROVE
Incredibly Close !' Amazingly Open
VILLAGE BOARD OF TRUSTEES
REGULAR MEETING NOTICE/AGENDA
TO BE HELD AT THE RICHARD T. FLICKINGER MUNICIPAL CENTER
SCANLON CONFERENCE ROOM
JANUARY 23, 2017
6:00 pm
(The hour between 6:00 and 7.:00 pm is set aside for Executive Session
per 1-5-7A of the Village of Morton Grove Municipal Code.
If the Agenda does not include an Executive Session, the meeting will begin at 7:00 pm.)
1. Call to Order
2. Pledge of Allegiance
3. Executive Session
THE BALANCE OF THE MEETING SHALL COMMENCE AT 7:00 PM
IN THE COUNCIL CHAMBERS
OF THE RICHARD T. FLICKINGER MUNICIPAL CENTER
4. Reconvene Meeting
5. Pledge of Allegiance
6. Roll Call
7. Approval of Minutes — Regular Meeting — January 9, 2017
8. Special Reports
a. Update on Alternative Water Supply Agreement by Village Administrator Ralph Czerwinski
*To accommodate schedules of Evanston officials in attendance, leave is requested to allow
Resident Comments and Board Action on Resolution 17-03 during Special Reports.
Resolution 17-02 (Introduced January 23, 2017)
Authorizing the Approval and Execution of a Cost Sharing Agreement Regarding Morton Grove
and Niles Water Supply Matters
Resolution 17-03 (Introduced January 23, 2017)
Authorizing the Approval and Execution of a Water Supply Agreement Between the City of
Evanston and the Village of Morton Grove and the Village of Niles
Resolution 17-04 (Introduced January 23, 2017)
Authorizing the Approval and Execution of a Professional Services Agreement for Engineering
Services for Preparation of Water Supply Corridor and Water Route Study (Village of Morton
Grove, Village of Niles, and Stanley Consultants, Inc.)
b. Kate Paz from Mather Lifeway will present the results of the 2016 "Quality of Life" Survey.
c. Ginny Ching -Yin Lo of Identity Inc. and Clerk Connie Travis will introduce the 2017 Spring
Morton Grove Community Artist Performance scheduled for April 22, 2017.
9. Public Hearings
10. Residents' Comments (agenda items only)
11. President's Report —Administration, Northwest Municipal Conference, Council of Mayors, Strategic
Plan, Comprehensive Plan
a. Appointment of Nancy Murphy, Jenna Downing and BiJu John to Community Relations
Commission
12. Clerk's Report — Community Relations Commission
13. Staff Reports
a. Village Administrator
Miscellaneous Reports and Updates
b. Corporation Counsel
14. Reports by Trustees
a. Trustee Grear — Police Department, Community and Economic Development Department, Fire
and Police Commission, Police Facility Committee, NIPSTA, Lehigh/Ferris TIF, Prairie View
TIF, Special Events Commission (Trustee Witko)
b. Trustee Minx —Natural Resource Commission, Plan Commission/Zoning Board of Appeals,
Building Department (Trustee Pietron)
1) Ordinance 17-02 (Introduced January 9, 2017) (Second Reading)
Approving a Special Use Permit for a Massage Establishment at 9400 Waukegan Road
c. Trustee Pietron — Public Works Department, Condominium Association, Economic
Development Commission, Dempster Street Corridor Plan, Chamber of Commerce (Trustee
Minx)
d. Trustee Ramos — Legal, Finance Advisory Commission, Traffic Safety Commission, Waukegan
Road TIF, Capital Projects (Trustee Thill)
I) Ordinance 17-03 (Introduced January 9, 2017) (Second Reading)
Amending Title 5, Chapter 13, Article A, Section 1 Entitled "One -Way Stop
Intersections" and Title 5, Chapter 13, Article F, Section 1 Entitled "No Parking Streets"
of the Municipal Code of the Village
e. Trustee Thill — Fire Department, Emergency Management Agency, RED Center, Environmental
Health, Solid Waste Agency of Northern Cook County, Appearance Commission, Advisory
Commission on Aging (Trustee Ramos)
f. Trustee Witko — IT Communications, Strategic Plan Committee, Finance Department, Family
and Senior Services Department (Trustee Grear)
1) Resolution 17-05 (Introduced January 23, 2017)
Authorizing an Agreement Between the Village of Morton Grove and Mather Lifeways
for the Use of the Civic Center for Senior Programming
15. Other Business
16. Presentation of Warrants $826,377.18
17. Residents' Comments
18. Executive Session — Personnel Matters, Labor Negotiations, Pending Litigation, and Real Estate
19. Adjournment - To ensure full accessibility and equal participation for all interested citizens, individuals with disabilities
who plan to attend and who require certain accommodations in order to observe and/or participate in this meeting, or who
have questions regarding the accessibility of these facilities, are requested to contact Susan or Marlene (847/470-5220)
promptly to allow the Village to make reasonable accommodations.
MINUTES OF A REGULAR MEETING OF THE PRESIDENT
AND THE BOARD OF TRUSTEES OF THE VILLAGE OF MORTON GROVE
COOK COUNTY, ILLINOIS, HELD AT THE
RICHARD T. FLICKINGER MUNICIPAL CENTER
JANUARY 9, 2017
CALL TO ORDER
I — Village President Dan DiMaria called the meeting to order at 7:00 pm. in the Council
V. Chambers of Village Hall. He led the Board and assemblage in the Pledge of Allegiance.
VI. Village Clerk Connie Travis called the roll. Present were: Trustees Bill Grear, Rita Minx,
John Pietron, Ed Ramos, John Thill, and Janine Witko.
VII. APPROVAL OF MINUTES
Regarding the December 12, 2016 Regular Board Meeting, Trustee Thill moved to approve
the Minutes as presented, seconded by Trustee Minx. Motion passed unanimously via
voice vote.
VIII. SPECIAL REPORTS
1.
a.
b.
c.
d.
Fire Department Appointments
Fire and Police Commission Chairman Mike Simkins asked Mayor DiMaria, Fire Chief Frank
Rodgers, and Trustee Thill to join him at the podium for the swearing-in of two new firefighter/
paramedics and the promotion of three current fire department personnel.
Chief Rodgers welcomed the new hires, commenting that they worked hard to get here. He said
it's an overwhelming feeling when you finally make it. Chief Rodgers said the badge the new
hires would receive featured the Maltese Cross, and he gave a brief history of that symbolism.
Mr. Simkins called Scott Adamczyk to the podium and gave a brief background on him.
Scott began his employment with the Village today, and will start his firefighter training at the
Northern Illinois Public Safety Training Academy (NIPSTA) on January 16th. He was raised in
Park Ridge and attended Maine South High School. He graduated from the Carthage College
with a Bachelor's degree in Exercise & Sports Science. He earned his Illinois EMT -B license at
Oakton Community College, and in 2011, Scott achieved the rank of Eagle Scout.
Scott introduced his sisters and brothers, grandparents, and girlfriend. Mr. Simkins performed
the swearing-in, and Scott's girlfriend pinned on his new badge. The Board and assemblage
congratulated Scott with a round of applause.
Minutes of January 9, 2017 Board Meeting
VIII.
SPECIAL REPORTS (continued)
e. Next, Mr. Simkins called Robert Dentamaro to the podium. He said that Robert also began
his employment with the Village today, and will start his firefighter training at NIPSTA on
January 16th. He was raised in Arlington Heights and attended Buffalo Grove High School. He
graduated from DePaul University with a Bachelor of Science degree in Business Management.
After several years working in the corporate world, he attended classes for his EMT license, and
has recently been working as a part-time firefighter for another suburban department.
f.
Rob introduced his parents, grandmother, and girlfriend. Mr. Simkins performed the swearing-
in, and Rob's girlfriend pinned on his new badge. The Board and assemblage congratulated
Rob with a round of applause.
g. Chief Rodgers noted that two firefighters are being promoted tonight to Lieutenant. That badge
has a trumpet on it and each new Lieutenant will receive a red fire helmet so they are easily
distinguished on the fire grounds.
h.
Mr. Simkins invited Firefighter Sean Brink and his family to the podium. Sean introduced his
sons, parents, father-in-law, and wife. Mr. Simkins provided background on the new Lieutenant.
Sean began his career in the fire service with Morton Grove in 2001. He has since obtained
numerous certifications, including Advanced Technician Firefighter, Fire Apparatus Engineer,
Incident Safety Officer, Fire Officer 2, Instructor 2, and is technician -level training in all technical
rescue disciplines.
Mr. Simkins said that Sean is involved in many functions of the fire department. He is a member
of the department's technical rescue team, a CPR instructor, and a paramedic preceptor. He
also served for 8 years as president of Local 2178. In addition to his duties in the MGFD, Sean
works as a part-time instructor for NIPSTA.
J Mr. Simkins performed the swearing-in, and Sean's wife pinned on his new badge while the
Board and assemblage congratulated him with a round of applause.
k. Mr. Simkins then asked Firefighter Michael Littau and his family to come forward. Mike
introduced his son, daughters, sisters, parents, and his wife. Mr. Simkins provided background
on Mike: He began his career in the fire service in 1998 as a firefighter with the MGFD. In his
18 years of service, Mike has obtained numerous certifications, including Advanced Technician
Firefighter, Fire Apparatus Engineer, Incident Safety Officer, Fire Officer 2, and Instructor 2.
Mike has many responsibilities within the department. He is a fire investigator and represents
the department on the MABAS Division 3 communications team. He is also the treasurer for the
Morton Grove Firefighters Association, a position he has held for 15 years. Mike was born and
raised in Rogers Park and currently lives with his wife and children in Jefferson Park.
m. Mr. Simkins performed the swearing-in, and Mike's wife pinned on his new badge. The Board
and assemblage congratulated him with a round of applause.
o. Mr. Simkins then invited Lieutenant Dan Gallagher and his family to the podium. Dan is being
promoted to District Chief and will receive a white helmet, which signifies his leadership and is
easily distinguishable on the fire grounds. Dan introduced his brother and sister-in-law, his son,
daughter, granddaughter, and wife.
2
Minutes of January 9, 2017 Board Meeting
VIII.
SPECIAL REPORTS (continued)
p. Mr. Simkins gave a brief background on the MGFD's newest District Chief. Dan began his
career in the fire service in 1988 with the McHenry Country Fire Protection District, serving as a
paid -on-call firefighter. He served 28 years and retired in June 2016. In 1998, Dan was offered
and accepted the position of Firefighter/Paramedic with the Morton Grove Fire Department, and
in 2013, promoted to the rank of Lieutenant.
q. As a 29 -year veteran of the fire service, Dan has obtained numerous Fire and EMS
certifications, including Advanced Firefighter, Fire Officer 2, Fire Apparatus Engineer, Fire
Investigator, Fire Service Instructor 2, Incident Safety Officer, and Paramedic. He is involved
in various functions of the fire department, currently serving as the coordinator for the Fire
Investigation team, as co -coordinator of the Self -Contained Breathing Apparatus team, and as
Paramedic Preceptor. Dan also works as an instructor for NIPSTA.
r. Mr. Simkins performed the swearing-in, and Dan's wife pinned on his new badge. The Board
and assemblage congratulated District Chief Gallagher with a round of applause.
s. Mr. Simkins thanked Chief Rodgers and his fellow Commissioners for all their hard work, which
culminated in these choices of new hires and promotions.
2. Plan Commission Case PC 16-09, Requesting a Special Use Permit for a Massage
Establishment at the Address Commonly Known as 9400 Waukegan Road.
a. Community and Economic Development Director Nancy Radzevich presented this case to the
Board. She explained that the Applicant, Bob Xi and the property owner, James Sideris, filed an
application for a Special Use Permit to allow for a massage establishment at 9400 Waukegan
Road. Hours for the proposed establishment are 10:00 a.m. to 9:00 p.m. Mondays through
Saturdays and from noon to 8:00 p.m. on Sundays. The Village's Unified Development Code
requires a Special Use Permit for any massage establishment offering full-body massages.
b. Mr. Xi owns two other Chicago area massage establishments, one in Vernon Hills, and owns
other such establishments in Ohio and West Virginia. He estimated that 60% of his business is
foot massages and 40% is full-body massages.
c. Ms. Radzevich said the location has previously been granted two parking waivers due to the mix
and intensity of uses. The applicant submitted a new parking/traffic study from KLOA. The study
determined that the number of onsite parking spaces is sufficient for the hours and use of this
proposed establishment.
d. Ms. Radzevich said that review by the Appearance Commission was unnecessary, since this
case involves no changes to the building fagade, and that the Traffic Safety Commission
reviewed the case and waived a full Commission hearing. She added that, at the November 21st
Plan Commission hearing, no public comments were received, and the Plan Commission
unanimously recommended approval of this case, with one absent.
IX. PUBLIC HEARINGS
NONE
3
X.
XI.
Minutes of January 9, 2017 Board Meeting
RESIDENTS' COMMENTS (Agenda Items Only)
NONE
PRESIDENT'S REPORT
Mayor DiMaria had several announcements:
Residents can recycle Christmas trees between January 3 and January 14 by putting the tree
out with their regularly -scheduled garbage pickup. Groot will pick up the tree and recycle it.
2. Residents should be aware that the Morton Grove Fire Department will never call you and ask
for a donation over the phone. If anyone receives a call like that, it's a scam!
3. The Community Relations Commission's winter photo contest is now underway. More details can
be found on the Village's website.
4. The Village is pleased to offer the program "Senior Issues, Etc." on Comcast channel 6 and on
U -Verse channel 99. More programming information is available on the Village's website.
5. Mayor DiMaria said that today is National Law Enforcement Appreciation Day, and commented
that Morton Grove has wonderful men and women in blue. He led the Board and assemblage in
a round of applause for Police Chief Mike Simo and the members of the Morton Grove Police
Department.
6. Mayor DiMaria called everyone's attention to the new plaque above the dais, which features the
new Village logo and tagline. He felt it was vibrant and lively, and remarked that the new logo
and tagline are slowly getting worked into the Village's various print and online media. He
thanked everyone who worked on this initiative.
7. Mayor DiMaria wished one and all a happy new year and said he hoped everyone would achieve
their goals this year.
XII. CLERK'S REPORT
Clerk Travis noted that the Community Relations Commission will have its first meeting of the
year tomorrow night at 6:30 p.m. in the Scanlon Conference Room on the second floor of Village
Hall. The public is welcome and encouraged to attend.
4
XIII.
A. Village Administrator:
Village Administrator Czerwinski wished everyone a happy new year, filled with health and
bounty. He said he hoped everyone would enjoy their community and their families.
B. Corporation Counsel:
Corporation Counsel Liston had no report.
STAFF REPORTS
Minutes of January 9, 2017 Board Meeting
XIV.
A. Trustee Grear:
Trustee Grear had no report.
TRUSTEES' REPORTS
B. Trustee Minx:
1. Trustee Minx introduced for a first reading Ordinance 17-02, An Ordinance Approving a
Special Use Permit for a Massage Establishment at 9400 Waukegan Road, Morton Grove,
Illinois.
She explained that this Ordinance is pursuant to Pian Commission Case PC 16-09, reported out
earlier this evening.
As this is a first reading, no action will be taken this evening.
2. Trustee Minx wished everyone a happy, healthy, and safe New Year.
C. Trustee Pietron:
1. Trustee Pietron presented Ordinance 16-29, Amending Title 5, Chapter 13, Article F,
Section 4 Entitled "Restricted Parking Streets" of the Municipal Code of the Village of
Morton Grove.
a.
This is the second reading of this Ordinance.
Trustee Pietron explained that the Village has a long-standing policy of discouraging on -street
parking by train commuters and encouraging commuters to park at the train station.
Narragansett Avenue from Capulina Avenue to Hennings Court is very close to the train
station, but has no parking regulations to discourage commuters parking. The south side of
Capulina Avenue from Narragansett to Ferris Avenue also has no parking regulations to
discourage commuter parking, and commuters are parking on this segment.
5
Minutes of January 9, 2017 Board Meeting
XIV. TRUSTEES' REPORTS (continued)
C. Trustee Pietron: (continued)
b. Trustee Pietron said that the Police Chief enacted a temporary parking regulation in October of
2016 to prohibit parking for more than 3 hours except for vehicles displaying a Zone 5 special
parking permit. Village staff has not heard any complaints about the parking regulation.
c. Trustee Pietron said the Traffic Safety Commission reviewed a request from Village staff at its
December meeting to make these temporary parking regulations permanent. The Commission
recommended making the temporary parking regulations permanent, except the regulation
should only be in effect from Monday through Friday.
Trustee Pietron said the economic impact of this ordinance is about $300 to replace 8 signs.
Trustee Pietron moved to adopt Ordinance 16-29, seconded by Trustee Grear.
Motion passed: 6 ayes, 0 nays.
Tr. Grear
Tr. Ramos a�
Tr. Minx
Tr. Thill
2. Trustee Pietron wished a happy and prosperous New Year to all.
Tr. Pietron ay2
Tr. Witko ays
D. Trustee Ramos:
Trustee Ramos presented for a first reading Ordinance 17-03, Amending Title 5, Chapter 13,
Article A, Section 1 Entitled "One -Way Stop Intersections," and Title 5, Chapter 13,
Article F, Section 1 Entitled "No Parking Streets" Of the Municipal Code of the Village
of Morton Grove.
a. He explained that this ordinance would refine parking restrictions on the new configuration of
Theobald Road, Mango Avenue, and South Park Avenue near the location where these streets
previously intersected.
b. He said that Resolution 16-40 authorized improvements at the intersection of Theobald, Mango,
and South Park Avenue to improve vehicle movements and to shorten the crossing for
pedestrians. These improvements have created a need to consider whether to, and how to,
redefine parking regulations and traffic control near this location.
c. Trustee Ramos said that, at its December 2016 meeting, the Traffic Safety Commission
considered a request for parking restrictions and traffic control on Theobald Road between
Menard Avenue and Major Avenue and near the intersection of Mango Avenue and South Park
Avenue. There is a one-way stop sign on northbound Mango at South Park and on westbound
South Park at Theobald. There is an existing parking regulation on the south side of Theobald
from the centerline of Mango to a point 195 feet east of the centerline of Mango.
d. The Commission recommended eliminating the stop sign restriction at South Park and Mango,
and further recommended amending the existing parking restrictions to extend them on the
south side of Theobald to include the driveway west of the crosswalk, and to prohibit parking
6
Minutes of January 9, 2017 Board Meeting
XIV.
TRUSTEES' REPORTS (continued)
D. Trustee Ramos: (continued)
on the north side of Theobad between the driveways east and west of the crosswalks, as well
as on both sides of the curve where Mango Avenue meets South Park Avenue. This ordinance
is intended to codify the recommendations of the Traffic Safety Commission.
Trustee Ramos said that, as this is a first reading, no action will be taken this evening.
E. Trustee Thill:
1. Trustee Thill hadno formal report, but noted that the program "Senior Issues, Etc." found on
Comcast channel 6 and U -Verse channel 99, is not just for seniors only. Residents can watch
and be informed, so that they, in turn, can inform senior friends and neighbors who may not see
or have access to the programming.
2. Trustee Thill also noted that the Village's Advisory Commission on Aging needs more members.
He said the Commission is down to about five people now, and it's supposed to have seven
members. You don't have to be a senior to serve on this Commission!
F. Trustee Witko:
Trustee Witko presented Resolution 17-01, Authorizing the Execution of a Contract With
Lauterbach & Amen, LLP To Perform Auditing Services.
a. She explained that the Village issued a request for qualifications upon which to base the
selection process for auditng services. The Village received five proposals, which were
reviewed and evaluated by staff. Lauderbach & Amen, LLP was found to be the preferred
auditing firm to validate the integrity of the Village's financial statements. Their proposal is for
auditing services for a four-year period beginning December 31, 2016 through December 31,
2019. The total four year cost will be $137,460, which will be paid from the Village's General
Fund and the Water Fund.
b.
c.
d.
Trustee Witko moved, seconded by Trustee Thill, to approve Resolution 17-01.
Motion passed: 6 ayes, 0 nays.
Tr. Grear ays Tr. Minx Lys
Tr. Ramos aye Tr. Thill aye
Tr. Pietron ays
Tr. Witko ays
Trustee Pietron commented that it's a very good idea to change auditing firms every several
years.
Trustee Ramos asked why this would be paid from the General Fund and the Water Fund.
Mr. Czerwinski responded that those are the two major accounts being audited, so they each
pay their own. Finance Director Hanna Sullivan agreed that that's where most of the auditing
work is done.
Minutes of January 9, 2017 Board Meeting
XIV.
F. Trustee Witko: (continued)
TRUSTEES' REPORTS (continued)
e. Mr. Czerwinski added that it wouldn't be right to pay for the Water Fund audit out of the General
Fund or to pay for the General Fund audit from the Water Fund.
XV.
XVI.
OTHER BUSINESS
NONE
WARRANTS
Trustee Witko presented two Warrant Registers this evening. The first was the Warrant
Register for December 26, 2016, in the amount of $1,875,402.94. She moved that the Warrants
be approved as presented. Trustee Minx seconded the motion.
Motion passed: 6 ayes, 0 nays.
Tr. Grear Tr. Minx
Tr. Ramos Tr. ThiII
Tr. Pietron
Tr. Witko
Trustee Pietron commented that, included in that Warrant Register was $750,000 to pave roads
and $300,000 for one month of water from the City of Chicago. He said he felt the public should
be aware of this.
The second Warrant Register was for January 9, 2017, in the amount of $187,610.96. Trustee
Witko moved, seconded by Trustee Thill, to approve the Warrants as presented.
Motion passed: 6 ayes, 0 nays.
Tr. Grear An Tr. Minx
Tr. Ramos gyg Tr. Thill
kya
An
XVII. RESIDENTS' COMMENTS
1.
Tr. Pietron
Tr. Witko afire
Nancy Lanning thanked the residents for all the beautiful Christmas decorations they displayed
this year. She often takes fellow seniors out for a drive to see the Christmas lights and this year,
they were exceptionally beautiful.
XVIII. ADJOURNMENT
Trustee Minx moved to adjourn the meeting, seconded by Trustee Thill.
Motion passed: 6 ayes, 0 nays.
Tr. Grear Tr. Minx
Tr. Ramos Tr. Thill
The meeting adjourned at 7:48 p.m.
Lys
Tr. Pietron Rya
Tr. Witko aye
8
PASSED this 23rd day of January, 2017.
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED by me this 23rd day of January, 2017.
Daniel P. DiMaria, Village President
Board of Trustees, Morton Grove, Illinois
APPROVED and FILED in my office this 24th day of January, 2017.
Connie J. Travis, Village Clerk
Village of Morton Grove, Cook County, Illinois
Minutes of January 9 2017 Board Meeting
Minutes by: Teresa Cousar
9
Legislative Summary
Resolution 17-02
AUTHORIZING THE APPROVAL AND EXECUTION OF A COST SHARING AGREEMENT
REGARDING MORTON GROVE AND NILES WATER SUPPLY MATTERS
Introduced:
Synopsis:
Background:
Departs Affected:
Fiscal Impact:
Source of Funds:
Work Impact:
Admin
Recommend:
First Reading:
Special Consider
or Requirements:
January 23, 2017
This Resolution will authorize an Agreement between the Villages of Niles and Morton
Grove to share and allocate professional service costs to study, analyze and negotiate an
agreement to purchase water from the City of Evanston and for consulting and engineering
services to evaluate water delivery routes and systems and evaluate, identify, and
recommend options for the design, finance, and construction of a water delivery system
from the City of Evanston to Morton Grove and Niles.
The Villages of Morton Grove and Niles have worked together since 2013 to evaluate
alternative suppliers and delivery systems for the purchase of safe reliable Lake Michigan
water from a more cost effective source than the City of Chicago. This month the Villages
expect to enter into a water supply agreement with the City of Evanston which is estimated
to save the Villages over $200 million dollars during the next 40 years.
To date, the Villages have engaged the services, of engineers, project managers, special
legal counsel, financial advisers and other consultants to assist them in this project, and
shall continue to need and utilize such professional services until the project is completed.
This Resolution will authorize an Agreement whereby each Village shall pay for fifty
(50%) percent of the costs for these services until bonds are issued for this project. The
Villages shall be reimbursed for costs they have paid/advanced for this project from the
bonds. The debt service for the bonds as well as the costs to operate and maintain the
Village's joint water systems shall be paid from the sale of water to customers in Niles and
Morton Grove with each Village to pay a percentage of these costs based on its actual
water consumption, which shall be adjusted annually.
Legal, Administration, and Finance Departments
The Village expects to incur approximately $550,000 in preliminary engineering and
professional service fees until bonds are issued.
Enterprise Fund (to be reimbursed from bond proceeds)
The Village Administrator Finance Director and Corporation Counsel will oversee the
implementation of the Agreement.
Approval as presented.
Not required.
None
Respectf illy submitted: - c L • Prepared by:
Ral. E. Czerwins ' - illage Administrator Teresa Ho
Reviewed by:
DeMonte, Director of Public Works
Hanna Sullivan, Finance Director
RESOLUTION 17-02
AUTHORIZING THE APPROVAL AND EXECUTION OF A COST SHARING
AGREEMENT REGARDING MORTON GROVE AND NILES WATER SUPPLY MATTERS
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a home
rule unit of government under the provisions of Article 7 of the 1970 Constitution of the State of
Illinois, can exercise any power and perform any function pertaining to its government affairs,
including but not limited to the power to tax and incur debt; and
WHEREAS, the President and Board of Trustees of the Village of Morton Grove, a home rule
Illinois Municipal Corporation (Morton Grove), desire to approve and enter into an agreement entitled
"Cost Sharing Agreement Regarding Morton Grove and Niles Water Supply Matters" (the Agreement)
in substantially the same form as the Agreement attached hereto as Exhibit "A" and made a part
hereof; and
WHEREAS, the Agreement pertains to the allocation of costs between Morton Grove and the
Village of Niles with respect to the costs of studying, analyzing and negotiating agreements, regarding
certain water supply matters involving the Village of Morton Grove and the Village of Niles; and
WHEREAS, The President and Board of Trustees of the Village of Morton Grove have the
authority to enter into the Agreement pursuant to Morton Grove's home rule powers as provided by
Article VII, Section 10 of the 1970 Constitution of the state of Illinois, the Illinois Intergovernmental
Cooperation Act (5ILCS 220/1, et seq.) and the Illinois Municipal Code (65ILCS 5/1, et seq.), and find
that entering into the Agreement is in the best interests of the Village of Morton Grove.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS AS
FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing WHEREAS
clauses into this Resolution as though fully set forth therein thereby making the findings as
hereinabove set forth.
SECTION 2: The President and Board of Trustees of the Village of Morton Grove authorize
the approval of the economic terms and the attached form of an agreement entitled Cost Sharing
Agreement Regarding Morton Grove and Niles Water Supply Matters for the purposes set forth in the
Agreement, attached hereto as Exhibit A. The President and Board of Trustees of the Village of Morton
Grove authorize and direct the Village Administrator, or his designee, to execute the final version of
the Agreement, which may contain certain non -substantive and non-financial modifications that are
approved by the Village Attorney, and to execute and deliver all other instruments and documents and
pay all costs that are necessary to fulfill Morton Grove's obligations under the Agreement.
SECTION 3: This Resolution shall be in full force and effect upon its passage and approval.
PASSED this 23rd day of January 2017.
Trustee Grear
Trustee Pietron
Trustee Minx
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED by me this 23rd day of January 2017.
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
APPROVED and FILED in my office
this 24`h day of January 2017.
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
EXHIBIT "A"
COST SHARING AGREEMENT REGARDING
MORTON GROVE AND NILES WATER SUPPLY MATTERS
(attached)
COST SHARING AGREEMENT REGARDING
MORTON GROVE AND NILES WATER SUPPLY MATTERS
This COST SHARING AGREEMENT REGARDING MORTON GROVE AND NILES
WATER SUPPLY MATTERS is made and entered into this 23rd day of January 2017 (the
"Effective Date"), by and between the Village of Morton Grove, an Illinois municipal corporation
("Morton Grove") and the Village of Niles, an Illinois municipal corporation ("Niles") (collectively,
the "Villages"), (the "Agreement"), for the purpose of allocating and sharing the costs and
obligations relating to engineering, finance projections, legal, planning, water system operations
and other consultant costs provided to the Villages regarding certain water supply matters
involving the Villages. The Villages agree as follows:
RECTIALS:
WHEREAS, the Villages have determined that there is a need to jointly cooperate and
share the costs of studying, analyzing and negotiating agreements relating to the feasibility of
jointly establishing, acquiring, constructing and operating a common source of supply of water
and related waterworks system for the purpose of the delivery of potable drinkable water to their
respective residents, business owners, property owners, and governmental and institutional
properties, as more fully defined in Section 2(A) below, including but not limited to a proposed
water supply agreement with one or more Illinois municipalities, the possible creation of a joint
action water agency or municipal water commission by and among the Villages, including the
actual acquisition, construction and operation of some or all of a common source of supply of
water and related joint waterworks system, and other water supply issues related thereto (the
"Project"). The Villages are collectively referred to below at times as "MG -N", which describes
them acting together or as members of a proposed joint action water agency or a municipal
water commission or an entity created by an intergovernmental agreement; and
WHEREAS, Morton Grove and Niles have taken all necessary corporate actions to
authorize the Village Administrator of Morton Grove (Ralph Czerwinski, or his successor) and
the Village Manager of Niles (Steven Vinezeano, or his successor) (together the "Village
Management Staff') to approve and enter into this Agreement on behalf of the Villages. This
Agreement is authorized and entered into in accordance with applicable State laws, including
Article VII, Section 10 of the 1970 Constitution of the State of Illinois, the Illinois
Intergovernmental Cooperation Act (5 ILCS 220/1, et seq.) and the Illinois Municipal Code (65
ILCS 5/1, etseq.).
NOW, THEREFORE, in consideration of the mutual agreements, obligations and
covenants set forth in this Agreement, and upon the further consideration stated in the foregoing
Recitals, it is agreed by the Villages as follows:
Section 1. Incorporation. The above Recitals are incorporated by reference into this Section
1.
Section 2. Sharing of Costs and Obligations. The Villages agree to allocate and share the
following costs and obligations:
A. Scope of Project.
The Villages shall share the costs of the Project in accordance with the terms of this
370074_4 1
Agreement. The Villages shall share in all costs provided for under this Agreement
relating to the following categories of water supply matters:
1. The study, analysis, and negotiation of water supply agreements between the
Villages and one or more Illinois municipalities;
2. The study and analysis of options, projections and schedules for financing any
water system improvements associated with the Project;
3. The study, analysis, negotiation and creation of a joint action water agency or a
municipal water commission by and among Morton Grove and Niles, and
possibly other Illinois municipalities; and
4. The study, analysis, negotiation and completion of land acquisition, easement,
zoning or other land use matters regarding the Project.
The Village Management Staff, in their discretion, may by mutual agreement add
additional categories to the scope of the Project, by execution of an addendum to this
Agreement.
B. Engineering, Planning and Outside Consultant Project Costs.
The Villages agree to share the engineering, planning and outside consultant costs for
the Project, with Morton Grove being responsible for fifty percent (50%) and Niles being
responsible for fifty percent (50%), respectively, of the costs of engineering, planning
and outside consultant services for the Project, which consist of the categories of costs
set forth below (the "Project Costs"):
1. Any water system engineering and design matters;
2. Any water system operational and technical matters;
3. Special legal counsel retained by Morton Grove and Niles, including but not
limited to, Klein, Thorpe and Jenkins, Ltd. ("KTJ") and Schain Burney;
4. Consulting firms retained by Morton Grove and Niles, including but not limited to
WRB, LLC; and
5. Municipal finance firms retained by Morton Grove and Niles.
The Village Management Staff, in their discretion, may by mutual agreement add
additional categories of Project Costs, by execution of an addendum to this Agreement.
The Village Management Staff are authorized to execute any such addenda.
C. Payment Schedule for Project Costs.
Each of the Villages agrees to directly pay their respective share of the Project Costs
under this Agreement to the vendors issuing invoices to the Villages for the Project
Costs, as the Project Costs come due.
370074_4 2
D. Reimbursement for Project Costs.
In the event bonds, or other debt, are issued relative to the Project ("Project Bonds"),
and so long as the Project Costs are allowable uses of the proceeds of the Project
Bonds, Morton Grove and Niles shall each be reimbursed from the proceeds of the
Project Bonds for the Project Costs paid by each, respectively. In addition, to the extent
some or all of the proceeds of the Project Bonds are not eligible to or sufficient to repay
all of the Project Costs, upon creation of a joint action water agency or a municipal water
commission or an entity created by intergovernmental agreement and the acquisition,
construction and operation of a common source of supply of water and related joint
waterworks system, Morton Grove and Niles agree that a portion of the water revenues
from such joint waterworks system will be used to repay the Project Costs. If Morton
Grove and Niles decide not to pursue the Project to completion, then they agree to share
equally (fifty percent (50%) / fifty percent (50%) basis) all of the incurred Project Costs.
Section 3. Proiect Bonds Issuance and Repayment.
A. Cooperation.
The Villages shall cooperate and use their best efforts to determine whether the Project
Bonds should be issued, and if so, investigate, negotiate, draft and consider approval of
such agreements, covenants, ordinances, resolutions, and other undertakings as may
be necessary or advisable with respect to the Project Bonds.
B. Agreement to Purchase Water From Agreed Upon Supplier(s).
Except for water purchased through emergency water connections for temporary
emergency water needs (e.g., active firefighting or temporary restriction imposed by
water supplier due to an unforeseen condition or emergency), the Villages agree that
they shall purchase their full water requirements for their respective communities from
agreed upon water supplier(s) through their joint waterworks system to be operated by
the proposed joint action water agency or municipal water commission.
C. Allocation of Joint Water System Costs and Repayment of the Project Bonds.
If the Project Bonds are issued and the joint waterworks system is operational,
the Villages shall repay the Project Bonds and Joint Water System Costs as follows,
subject to amendment(s) to this Agreement, made in accordance with Section 4(D)
below, to make the terms of this Agreement consistent with any later agreement(s) of the
Villages regarding the repayment of the Project Bonds:
The total Annual Cost of Water System Operation, the Cost of Water from the
Water Supplier and the Annual Repayment Obligation for the Project Bonds, shall be
paid by Morton Grove and Niles based on an annually determined "MG -N Cost of Water
per 1,000 Gallons" for the joint water system calculated as follows and paid based on
actual water consumption through the joint water system:
a. First, by determining the MG -N Cost of Water per 1,000 gallons for the
calendar/fiscal year by dividing the cost components below by the Prior Year MG -N
Water Use in 1,000 of gallons (for water usage between November 1 and October 31)
and adding the Wholesale Water Rate (annual cost of water per 1,000 gallons from the
370074_4 3
water supplier).
System Operating Annual Budget shall mean the annual budget to
support MG -N water supply transmission main operation from the water
source.
ii. Annual Debt Service Payment shall mean the annual MG -N payment for
debt service.
Hi. MG -N Water Use in 1,000 gallons shall mean the total water received by
MG -N from Evanston or any other water supplier through the MG -N joint
waterworks system.
b. Second, at the conclusion of the fiscal year (January 1 to December 31)
each Village's actual total gallons of water obtained from the joint waterworks system will
be determined and a true -up will be calculated based on audited costs with any
outstanding balance or surplus of funds calculated as a debt or credit to Morton Grove
and Niles based on actual water usage of each Village during the subject fiscal year.
Attached as Exhibit "A" to this Agreement are "Example Formulas" relating to
the above calculations of this Section 3(C): the MG -N Cost of Water/1,000 Gallons
Calculation; and the End of Fiscal Year True -Up Calculation.
As part of the issuance of Project Bonds, the Villages agree to create and fund a
capitalized interest account using a portion of the Project Bond proceeds for purposes of
paying any preliminary Annual Debt Service Payments that may come due prior to the
completion of the Project. To the extent allowable in the authorizing and issuing
documents for the Project Bonds, the Villages further agree to provide for the
commencement of Annual Debt Service Payments after the completion of the Project so
that water revenue from the MG -N joint waterworks system can be used to pay the Debt
Service Payments. Each Village agrees to take and receive water in accordance with the
Water Supply Agreement entered into with Evanston.
Section 4. General Provisions.
A. Term. The term of this Agreement shall commence on its Effective Date and continue
until its mutual termination by the Villages, or termination by one or more of the Villages,
upon sending written notice of its/their withdrawal from the Agreement.
B. Termination. Upon the termination of this Agreement, the Villages shall pay their
respective portion of the Project Costs incurred during the term of this Agreement
through the date of termination. Termination of this Agreement shall not relieve either
Village from its obligation to repay any outstanding Project Bonds.
C. Notice. All notices and other communications required or permitted under this
Agreement shall be in writing and may be personally delivered, faxed, e-mailed or sent
by first class mail, postage prepaid, addressed to the Village Management Staff at their
business mailing address and electronic telecommunications contact information. All
notices and other communications required or permitted under this Agreement shall be
deemed to have been received on the day when personally delivered, faxed, e-mailed or
three (3) calendar days after being mailed, as the case may be.
370074_4 4
D. Complete Agreement. This Agreement contains the entire understanding between the
Villages and supersedes any prior understanding or written or oral agreements between
them with respect to the subject matter of this Agreement. There are no representations,
agreements, arrangements or understandings, oral or written, between and among the
Villages relating to the subject matter of this Agreement which are not fully expressed
herein. No oral modification, amendment or change shall be allowed to this Agreement.
Any modification, amendment or change to this Agreement shall be in writing and
approved and executed by the Village Management Staff.
E. Severability. If any provision of this Agreement or the application of any such provision
to either Village shall be determined by any court of competent jurisdiction to be invalid
and unenforceable to any extent, the remainder of this Agreement shall not be affected,
and each remaining provision of this Agreement shall be considered valid and shall be
enforced to the fullest extent permitted by law.
F. Consent to Waiver of Conflict of Interest. Before the Effective Date, the Villages have
consented to and agreed in writing that KTJ shall act as special legal counsel to, and
represent, both the Villages with regard to certain aspects of the Project, and KTJ that
shall handle legal matters pertaining to the Project.
IN WITNESS WHEREOF, the Corporate Authorities of the Village of Morton Grove and
the Corporate Authorities of the Village of Niles have approved this Agreement and directed that
this Agreement be signed on their behalf by their respective Village Management Staff, on the
days and year written below. The Effective Date of this Agreement shall be the date the last
signatory signs this Agreement, which date shall be entered on page 1 hereof.
SIGNATURE PAGE TO FOLLOW
370074_4 5
SIGNATURE PAGE
VILLAGE OF MORTON GROVE
By:
Ralph E. Czerwinski
Village Administrator
Connie Travis
Village Clerk
Date: January 23, 2017 Date: January 23, 2017
VILLAGE OF NILES
By:
Steven Vinezeano Marlene Victorine
Village Manager Village Clerk
Date: Date:
370074_4 6
Exhibit "A"
"Example Formulas" Relating to Section 3(C) Calculations:
MG -N Cost of Water/1,000 Gallons
and
End of Fiscal Year True -Up Calculation
(attached)
370074_4 7
co
CU
d
Y N
C
CU
0) •
a
ca
Q
m N
c 0)
C 4
r cO
0 G)
Ulot
o
Q
o >
0
Q•
c
X2
s cco
W
Et 4
g
m
g
g
y
MG -N Cost of Water/1,000 gallons = Wholesale Water Rate/1,000 gallons +
O
M
N
64
O
0
O
0
O
64
0
0
0
LO1!)
)n
N
0
O
0
in
Lf1
V)
MG -N Cost of Water/1,000 gallons = $0.91/1,000 gallons + $0.11/1,000 gallons + $2.29/1,000 gallons
1,000 gallons = $0.91/1,000 gallons + $0.11/1,000 gallons +$2.29/1,000 gallons
1
a 0
o
I.
1.1 o
§ Z b
tea m Al
N 0s. h
ro
AI b
rtsa
L
?o la c o to
tca ro 5 �v
y
k
ca
c•� °o
o
y a b to
c
cti tea o S 'fi ai N
iliCb ° ro
.
o ° N.
otU CZ
i.0 A �R o
Hu1
t t fi fi\\14
❑ °a ro C C i
o 0
0 0 k CU
m$ CnenO
° b� p cy o tat O O C
o y m V11 m ro \\a
C OV fi C! .2 fi. y A Z 0 0 0
ft ° V w, O O O
? y fi g v v 3 h a>O
• • o 0 pAi "' ro 0
oCro
Ca,4.41
a
4 2 ' t fi fi hh 01
Nt � o•°t ~mmo\1, a O �i ro� v m� �°'o 0%
o �o fih
tu„ 01S' o4 at•• co. C ,+"R. VMo.V
O Q O ` o V rcs o o
V O o u o o. to O b C Cfi)w ro
g h Q 4 w o° m
R fi I
o° ro V° h
t ofi C.
Q W gt
OR OR
1/40
N- 1st
II II
tts
C C
O
0
O O
0o
Ni‘ co
o cy
'1
�nro
c C
to en
tk13 1:14
0 0 N. b
,•-i 14 Nn
0 o 11 II
Coco Co co
N M o o
00
c4 ctl
yy n
CO co H
p O O
A ' Z
fi o o co
fi o o 'v' a
co - 1/46 N y
ro , Co o o
o o 000
ob
M1/40
0
NN k o:�
co nl
W Z N N m
Legislative Summary
Resolution 17-03
A RESOLUTION AUTHORIZING THE APPROVAL AND EXECUTION OF
A WATER SUPPLY AGREEMENT BETWEEN THE CITY OF EVANSTON AND
THE VILLAGE OF MORTON GROVE AND THE VILLAGE OF NILES
Introduced:
Synopsis:
Background:
Departs
Affected:
Fiscal Impact:
Source of
Funds:
Work Impact:
Admin
Recommend:
First Reading:
Special
Consider or
Requirements:
January 23, 2017
This Resolution will authorize a 40 year water supply agreement among the city of Evanston
and the Villages of Niles and Morton Grove
The Villages of Niles and Morton Grove currently purchase water from the City of Chicago.
Morton Grove's current 10 -year contract with Chicago expires in 2018 and Niles' contract
expires in 2019. The contract allows the City of Chicago to unilaterally determine the water
rate paid by the Village. Since 2008, the water rate charged by Chicago has risen by 114%.
Because of these large and unpredictable rate increases Niles and Morton Grove ("MG -N")
began working together in 2013 to evaluate alternative water supply options.
In 2014 MG -N received proposals for long-term water supply agreements from the City of
Evanston and the Villages of Wilmette and Glenview. Morton Grove also received an
individual proposal from Wilmette/Glenview. Each proposal offered a safe, high quality,
reliable supply of Lake Michigan water, but the proposal from Evanston offered the best long
term savings.
Evanston and MG -N have negotiated a 40 -year water supply agreement which includes two
ten-year extensions at the option of MG -N. The rate charged by Evanston is determined by a
fixed formula whereby MG -N will pay a percentage of the cost to operate, maintain and update
the Evanston water treatment facility plus an agreed rate of return. The initial 201 Evanston
water rate is expected to be $.81 per 1,000 gallons. By comparison, if Chicago rages its water
rate 2% per year, its 2019 rate will be $4.04 per thousand gallons. MG -N will need to construct
transmission mains and other infrastructure to transport the water from Evanston to Morton
Grove and Niles. The cost to design and construct this infrastructure is conservatively
estimated at approximately $90,000,000, which will be financed by bonds. After adding the
infrastructure construction and operations costs to the Evanston wholesale water rate, the total
Evanston rate is projected to be $3.47 in 2019. Over 40 year, Morton Grove is expected to
save over $98 million dollars from this agreement (assuming Chicago raises its rate by only
2% each year).
Legal, Administration, and Public Works, Finance Departments
A lower water rate will allow the Village to invest additional funds to upgrade and maintain its
local water infrastructure, as well as provide stable rates to residents and local businesses.
Enterprise Fund (sale of water to customers)
The Village Administrator Public Works Director, Village Engineer, Finance Director and
Corporation Counsel will oversee the implementation of the Agreement.
Approval as presented.
Not required.
None
Respectfully submitted: ��4.Z. Prepared by: _
Ralph E. Czerwinski ),age Administrator Teresa Hoffm
Reviewed by:
Reviewed by:
Corporation Counsel
RESOLUTION 17-03
A RESOLUTION AUTHORIZING THE APPROVAL AND EXECUTION OF
A WATER SUPPLY AGREEMENT BETWEEN THE CITY OF EVANSTON AND
THE VILLAGE OF MORTON GROVE AND THE VILLAGE OF NILES
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a home rule
government under the provision of Article 7 of the 1970 Constitution of the State of Illinois, can exercise
any power and perform any function pertaining to its govemment affairs, including but not limited to the
power to tax and incur debt; and
WHEREAS, the President and Board of Trustees of the Village of Morton Grove, a home rule
Illinois municipal corporation (Morton Grove) and the President and Board of Trustees of the Village of
Niles, a home rule Illinois municipal corporation (Niles), have undertaken studies and analyses of the
feasibility of jointly establishing, acquiring, constructing and operating a common source of supply of
water and related waterworks system for the purpose of the delivery of potable drinkable water to their
respective residents, business owners, property owners, and governmental and institutional properties, and
in furtherance thereof, approved and entered into an Agreement entitled "Cost Sharing Agreement
Regarding Morton Grove And Niles Water Supply Matters" (the Cost Sharing Agreement) on January 23,
2017, as approved by Morton Grove Resolution 17-02 on January 23, 2017, and as approved by Niles by
Resolution on January 24, 2017; and
WHEREAS, as set forth in the Cost Sharing Agreement, Morton Grove and Niles (collectively, the
Villages) determined there was a need to jointly cooperate and share the costs of studying, analyzing, and
negotiating agreements regarding certain water supply matters involving the Villages, including but not
limited to the assessment of options for entering into a proposed Water Supply Agreement with one or
more Illinois municipalities, and the creation of and participation in a Joint Action Water Agency or a
Municipal Water Commission by the Villages; and
WHEREAS, after studying and analyzing the costs and benefits associated with different options
for water supply agreements for the Villages with one or more Illinois municipality(ies), the Villages have
determined it is in their best interests to jointly enter into a Water Supply Agreement with the City of
Evanston ("Evanston"), in order that the Villages and their respective water customers receive an adequate
supply of water from Evanston; and
WHEREAS, Morton Grove desires to approve and enter into an Agreement entitled "Water Supply
Agreement between the City of Evanston and the Village of Morton Grove and the Village of Niles" (the
Agreement) for the purposes set forth in the Agreement in substantial conformity with Exhibit "A"
attached hereto and made a part hereof; and
374409_1
WHEREAS, Section 4 of the Agreement (Commencement of Obligation to Deliver and Receive
Water) sets forth the obligations of the Villages and Evanston with regard to the design and construction
work needed prior to commencement of the delivery of water from Evanston to the Villages under the
Agreement; and
WHEREAS, Section 5 of the Agreement (Rate) provides for the cost of the water sold by Evanston
and paid for by the Villages, and the means by which the rate for water sold under the Agreement is
calculated; and
WHEREAS, Section 7 of the Agreement (Water Supply; Allocation; Distribution) provides for
Evanston to sell and deliver water to the Villages, and for the Villages to purchase and receive water from
Evanston; and
WHEREAS, the Villages are still evaluating options for jointly acquiring and operating a common
source of supply of water and a related waterworks system, in order to connect their respective waterworks
systems to the waterworks system of Evanston, and the Villages may establish a Municipal Water
Commission together pursuant to Division 135 of Article 11 of the Illinois Municipal Code (65 ILCS 5/11-
135-1, et seq.) in furtherance thereof, to be known as the "MG -N Water Commission"; and
WHEREAS, in the event the Villages create the MG -N Water Commission, Section 15 of the
Agreement (MG -N Option to Create a JAWA or a Water Commission; Assignment) provides for the
automatic assignment of the Villages' rights and obligations under the Agreement to the MG -N Water
Commission, and the Villages shall have no further rights or obligations under the Agreement; and
WHEREAS, the President and Board of Trustees of the Village of Morton Grove have the authority
to enter into an Agreement pursuant to Morton Grove' home rule powers as provided by Article VII,
Section 10 of the 1970 Constitution of the State of Illinois, the Illinois Intergovernmental Cooperation Act
(5 ILCS 220/1, et seq.) and the Illinois Municipal Code (65 ILCS 5/1, et seq.), and find entering into the
Agreement is in the best interest of Morton Grove.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF MORTON GROVE, ILLINOIS, AS FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing whereas clauses into
this Resolution as though fully set forth therein thereby making the findings as hereinabove set forth.
SECTION 2: The President and Board of Trustees of the Village of Morton Grove authorize the
approval of the economic terms and the attached form of an agreement entitled Water Supply Agreement
Between The City Of Evanston And The Village Of Morton Grove And The Village Of Niles (the
"Agreement") for the purposes set forth in the Agreement, attached hereto as Exhibit "A". The President
374409_1 2
and Board of Trustees of the Village of Morton Grove authorize and direct the Village Administrator, or his
designee, to execute the final version of the Agreement, which may contain certain non -substantive and
non-financial modifications that are approved by the Village Attorney, and to execute and deliver all other
instruments and documents and pay all costs that are necessary to fulfill Morton Grove's obligations under
the Agreement.
SECTION 3: The President and Board of Trustees of the Village of Morton Grove authorize and
direct the Village Administrator, or his designee, to execute said Agreement, and to execute and deliver all
other instruments and documents and pay all costs necessary to fulfill Morton Grove's obligations under
the Agreement.
SECTION 4: This resolution shall be in full force and effect upon its passage and approval.
PASSED THIS 23rd day of January 2017.
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED by me this 23`d day of January 2017
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
APPROVED and FILED in my office this
24`h day of January 2017.
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Ilinois
374409_1 3
EXHIBIT "A"
WATER SUPPLY AGREEMENT BETWEEN THE CITY OF EVANSTON
AND THE VILLAGE OF MORTON GROVE AND THE VILLAGE OF NILES
(attached)
374409_1 4
DRAFT FOR DISCUSSION PURPOSES ONLY, SUBJECT TO FURTHER
NEGOTIATION AND MODIFICATION
WATER SUPPLY AGREEMENT BETWEEN
THE CITY OF EVANSTON AND
THE VILLAGE OF MORTON GROVE AND
THE VILLAGE OF NILES
Background 6
1. Parties 6
1.01 Parties 6
2. Initial Term of Agreement; Extended Term; Service Year; Fiscal Year 6
2.01 Initial Term 6
2.02 Extended Term 6
2.03 Service Year; Fiscal Year 7
3. Water Defined 7
3.01 Water Defined 7
4. Commencement of Obligation to Deliver and Receive Water 7
4.01 MG -N Notice to Evanston to Proceed with Preliminary Project Phase Work 7
4.02 MG -N Notice to Evanston to Proceed with Final Engineering Design 8
4.03 MG -N Notice to Evanston to Proceed with Construction 8
4.04 Delivery Date 8
4.05 MG -N Payment for Water; Water During Construction 8
4.06 Phased Water Delivery to Morton Grove and Niles 8
4.07 Water Rate Payable to Evanston in Service Years 2018, 2019, and 2020 9
4.08 Water Rate Payable to Evanston in Service Years 2021 and Thereafter 10
4.09 Rate Equity Parameters 10
5. Rate 10
5.01 General Ratemaking Principles and Policies 10
5.02 Billing and Payments 10
• Demand Charge 11
• Quantity Charge 11
5.03 Return on Rate Base 11
Original Cost Rate Base 12
Reproduction Cost New Rate Base 12
Fair Value Rate Base 12
Annual Return on Rate Base 13
374534_3 1
5.04 Depreciation Charge 13
5.05 Quantity Charge 13
Section 5.06 Demand Charge and Quantity Charge Smoothing 14
• Demand Charge Cap 14
• Quantity Charge Cap 15
5.07 MG -N Audit Rights 15
5.08 True -Up 15
6. Water System Definitions 16
6.01 Water System Definitions and Related Terms 16
7. Water Supply; Allocation; Distribution 17
7.01 Water Supply, Sale and Purchase; Allocation 17
7.02 Emergency Connections 18
7.03 Coefficient of Friction 18
7.04 Pressures 19
7.05 Supply and Service Agreement Only; Title to Water 19
7.06 Temporary Restriction 19
7.07 Maintenance 20
7.08 MG -N Option to Purchase Water from Other Suppliers 20
7.09 Surges and Back -Flows 21
7.10 MG -N Responsibility for Damage to Evanston's Water Utility 21
7.11 Evanston's Responsibility for Damage to MG -N's Water System 21
7.12 Operating Meetings and Plan 22
7.13 Continuity of Operations Plan 22
8. Existing and Future Customers of Evanston; MG -N Other Users 23
8.01 Existing and Other Water Customers Served by Evanston 23
8.02 Right of MG -N to Supply Water to Other Users 24
8.03 Liability for Unreasonable Delay by MG -N 24
8.04 Liability for Unreasonable Delay by Evanston 24
9. Facility Completion Schedule 25
9.01 Specifications and Sequence of Construction for the Project Improvements 25
9.02 IEPA and Other Approvals for the Project 25
9.03 Easements, Licenses, Permits, Fees and Approvals 25
10. Meters and Measurements; Meter Testing 26
10.01 Unit of Measurement 26
10.02 Supervisory Control and Data Acquisition ("SCADA") 26
10.03 Delivery Meters 27
10.04 Check Meters 27
10.05 Meter Calibration and Adjustment 28
10.06 Notification Concerning Meter Tests 28
10.07 Removal of Meters 29
10.08 Meters for Customers 29
11. Dispute Resolution 29
11.01 Negotiation 29
11.02 Remedies 30
11.03 Venue and Applicable Law 30
374534_3 2
12. Force Majeure 30
12.01 Excuse From Performance 30
12.02 Force Majeure Event 31
12.03 Notice 31
13. Preservation of Water Rights 31
14. Good Faith and Fair Dealing 32
15. MG-N Option to Create a JAWA or a Water Commission; Assignment 32
16. Financing Options for the Project 33
16.01 Cooperation with Project Financing 33
16.02 MG-N Project Financing Options 33
17. Disconnection, Removal Relocation of Connection Facilities or Transmission Mains 33
17.01 Termination of Agreement 34
17.02 Relocation 34
18. Termination; Default 34
18.01 Termination by Evanston 34
18.02 Termination by Mutual Agreement 34
18.03 Termination by MG-N 35
18.04 Default; Cure Period; Relief 36
19. General Conditions 37
19.01 Entire Agreement 37
19.02 Prompt Payment 37
19.03 Compliance With Laws 37
19.04 Regulatory Bodies 37
19.05 Illinois Freedom of Information Act 37
19.06 Interpretation; Headings 38
19.07 Waiver 38
19.08 No Individual or Personal Liability 38
19.09 No Third Party Beneficiaries 38
19.10 Amendments 39
19.11 Assignment 39
19.12 Notice 39
19.13 Severability 41
19.14 No Separate Legal Entity; No Joint Venture or Partnership or Agency 41
19.15 Independent Sovereign Status 41
19.16 Effective Date 42
19.17 Authorization 42
19.18 Counterparts 42
19.19 Exhibits 42
374534_3 3
Background
The City of Evanston ("Evanston") is the owner and operator of a water intake, filtration,
treatment and pumping plant (the "Water Plant") located at 555 Lincoln Street, Evanston,
Illinois. The Water Plant is on the shore of Lake Michigan and Evanston draws water from
Lake Michigan for Evanston's drinkable water, firefighting and fire protection needs for its
community, and for distribution and resale to its customers ("Evanston Water Utility"). The
Village of Morton Grove ("Morton Grove") and the Village of Niles ("Niles") (collectively,
"MG -N") want to purchase drinkable Lake Michigan water from the Evanston Water Utility for
the uses specifically allowed by this Agreement, including but not limited to, distribution and
sale to customers of the Morton Grove and Niles water systems, respectively.
1. Parties
1.01 Parties
The parties to this Water Supply Agreement ("Agreement") are Evanston, Morton Grove, and
Niles, who are at times referred to in this Agreement as a "Party" or collectively as the "Parties".
2. Initial Term of Agreement; Extended Term; Service Year; Fiscal Year
2.01 Initial Term
Because of the significant financial commitment and debt obligations that MG -N is making and
incurring to expand its respective water systems to connect to the Evanston Water Utility under
the trans of this Agreement, the Initial Term ("Initial Term") shall commence on the Effective
Date of this Agreement (as defined in Section 19.16 (Effective Date)) and shall end at 11:59 p.m.
on December 31, thirty nine (39) years after the Effective Date of this Agreement.
2.02 Extended Tenn
The Initial Term of this Agreement shall be extended for up to two (2) consecutive terms
(generally referred to as an "Extended Term" or specifically referred to as the "First Extended
Term" and the "Second Extended Term") in the sole discretion of MG -N, upon written notice by
MG -N delivered to Evanston in writing not less than five (5) years prior to the termination date
374534_3 4
of the then -existing Term. The First Extended Term and the Second Extended Term will each be
ten (10) years in length, unless MG -N delivers notice of its intention to not extend the Initial
Term or any Extended Term of this Agreement. If MG -N elects to extend this Agreement for the
Second Extended Term, then this Agreement shall renew automatically at the end of the Second
Extended Term at ten (10) year intervals thereafter, unless either Party conveys written notice of
its intention to terminate this Agreement not less than five (5) years prior to the termination date
of the then -existing Term.
2.03 Service Year; Fiscal Year
Each Service Year ("Service Year") under this Agreement will be the time period of January 1St
to December 31st. Each Fiscal Year ("Fiscal Year") under this Agreement will be the time period
of January 1st to December 31st.
3. Water Defined
3.01 Water Defined
In this Agreement, Water means Lake Michigan water that is safe for human consumption (i.e.
drinkable water) and that meets or exceeds the requirements of any current or successor federal,
state of Illinois, or local agency or governmental authority having jurisdiction over the operation
of public water supplies. Evanston shall supply water that is like kind and quality with that
supplied by Evanston to its other customers. Whether "water" is capitalized in this Agreement or
not, it shall have the meaning set forth in this Section.
4. Commencement of Obligation to Deliver and Receive Water
4.01 MGN Notice to Evanston to Proceed with Preliminary Project Phase Work
Not more than thirty (30) calendar days after MG -N awards the corridor and route study relative
to identifying the optimum MG -N water transmission route from the Point of Delivery (defined
in Section 6.01 (Water System Definitions and Related Terms)) between the Evanston
Connection Facilities and the MG -N Water System, MG -N shall deliver to Evanston in writing a
notice to proceed on preliminary design of the Evanston Connection Facilities.
374534_3 5
4.02 MG -N Notice to Evanston to Proceed with Final Engineering Design
Not more than thirty (30) calendar days after MG -N awards the final engineering design work
for the MG -N Water System, MG -N shall deliver to Evanston in writing a notice to proceed on
final engineering design of the Evanston Connection Facilities.
4.03 MG -N Notice to Evanston to Proceed with Construction
Not more than thirty (30) calendar days after MG -N awards the first construction contract
relative to the construction of the MG -N Water System, MG -N shall deliver to Evanston in
writing a notice to proceed on construction of the Evanston Connection Facilities.
4.04 Delivery Date
Evanston shall deliver water to MG -N, or to Morton Grove or to Niles on a date mutually agreed
by the Parties, but no later than one hundred and twenty (120) calendar days of receiving written
notice from MG -N (or Morton Grove or Niles) that MG -N (or Morton Grove or Niles) is ready
to receive water.
4.05 MG -N Payment for Water; Water During Construction
Except for water usage during construction and testing of the Project improvements, MG -N shall
not be responsible to pay for any water charges under this Agreement until the improvements
and construction at the Point of Delivery, are completed, and until Evanston delivers water to
MG -N or Morton Grove or Niles for resale to its customers. During the construction and testing
of the improvements at the Point of Delivery, Evanston will charge MG -N for its water usage at
the water rates and charges identified in Section 4.07 (Water Rate Payable to Evanston in Service
Years 2018, 2019, and 2020) of this Agreement.
4.06 Phased Water Delivery to Morton Grove and Niles
Due to separate, existing water supply contract obligations of Morton Grove and Niles with the
City of Chicago, Morton Grove may elect, by sending written notice pursuant to Section 4.04
(Delivery Date) to receive water under this Agreement before Niles receives water from
Evanston. If Morton Grove elects to receive water under this Agreement before Niles, all water
374534_3
charges incurred by Morton Grove shall be due and owing to Evanston solely from Morton
Grove, not Niles. If Niles elects to receive water from Evanston before Morton Grove, then the
notice and payment obligations set forth in the preceding sentences applicable to Morton Grove
shall apply to Niles. From and after the date that both Morton Grove and Niles are receiving
water under this Agreement, the water charges shall be the responsibility of MG -N.
4.07 Water Rate Payable to Evanston in Service Years 2018, 2019, and 2020
The Parties agree that the identification of the total equivalent water rate payable to Evanston per
1,000 gallons supplied to MG -N in Service Years 2018, 2019, and 2020 will be as follows:
Service Year
MG -N Not
to Exceed
Rate
Morton Grove Only
Not To Exceed Rate
Niles Only Not To
Exceed Rate
2018
$ 0.78
$ 0.84
$ 0.85
2019
$ 0.81
$ 0.86
$ 0.87
2020
$ 0.94
$ 1.01
$ 1.01
The above rates may be adjusted down based on final rate calculations as provided for in Section
5 (Rate). The rate charged to MG -N for water sold for construction and testing shall also use the
above table. No True Up will be calculated for water sold for construction and testing purposes.
Except for water sold to MGN for construction and testing, if the actual rate incurred at any time
during Service Years 2018, 2019, or 2020 is different than the scheduled rate set forth in this
Section, a "True -Up" calculation, in accordance with Section 5.08 (True -Up) will be completed
no later than thirty (30) days after the Evanston Comprehensive Annual Financial Report
("CAFR") applicable to that Service Year is completed. The Parties attached as Group Exhibit
"A" to this Agreement an illustrative example of the "True -Up" process, including an
identification of the formula and its components that will be used in performing the "True -Up"
calculation. Any credit due to MG -N or Morton Grove or Niles will be allocated to that Party
according to the process outlined in Section 5.08 (True -Up) of this Agreement. All water charges
otherwise required to be paid under Section 4.06 (Phased Water Delivery to Morton Grove and
Niles) will be payable by MG -N, or Niles, or Morton Grove, as the case may be.
374534_3 7
4.08 Water Rate Payable to Evanston in Service Years 2021 and Thereafter
The Parties agree that the identification of the total equivalent water rate payable to Evanston per
1,000 gallons supplied to MG -N in Service Years 2021 and thereafter will be calculated in
accordance with Section 5 (Rate) below.
4.09 Rate Equity Parameters
Unless otherwise agreed to by the Parties, the water rate charged to any new wholesale water
customers who have a total IDNR water allocation less than one hundred and fifty percent
(150%) of the total IDNR water allocation of MG -N shall be calculated based on terms that are
not more favorable than the water rate formula set forth in Section 5.03 (Return on Rate Base),
Section 5.04 (Depreciation Charge), and Section 5.05 (Quantity Charge).
5. Rate
5.01 General Principles and Policies
The Parties agree that the definitions, policies and principles described in the AWWA M-1, the
"Principles of Water Rates, Fees and Charges published by the American Water Works
Association, Sixth Edition", as amended, may be used as a reference guide for the Parties under
this Agreement. However, in the event of a conflict or inconsistency between any provision or
term of the AWWA M-1 and this Agreement, the provision or term of this Agreement shall
govern.
5.02 Billing and Payments
Evanston shall submit all water bills to MG -N on a monthly basis. MG -N shall pay all amounts
due to Evanston pursuant to this Agreement in accordance with the Local Government Prompt
Payment Act, 50 ILCS 505/1 et seq. ("LGPPA"). The water bills shall be itemized with sufficient
detail to inform MG -N that the charges and fees set forth in each monthly bill conform to the
agreed-upon rates and cost components set forth in this Agreement. If payment is not made
within the required thirty (30) calendar day period, Evanston will charge MG -N a penalty for late
payment of water bills in accordance with the interest penalty provision contained in Section 4 of
the LGPPA (50 ILCS 505/4). No other penalty can be assessed against MG -N for late payments
374534_3 8
of water bills, except for Evanston's optional right to terminate this Agreement for nonpayment
as provided for in Section 18.01 (Termination by Evanston). Evanston's termination option is
subject to the right of MG -N to resolve any late payment within the applicable cure period.
The billing structure will conform to the rates and components identified and defined below:
• Demand Charge: A fixed monthly payment consisting of (i) one -twelfth (1/12th) of the
Annual Return on the Fair Value Rate Base as determined in accordance with Section
5.03 (Return on Rate Base) and (ii) a Depreciation Charge determined in accordance with
Section 5.04 (Depreciation Charge).
• Quantity Charge: A payment based on the quantity of water delivered through the
metering point(s) to MGN's water system multiplied by the Quantity Rate determined in
accordance with the provisions of Section 5.05 (Quantity Charge).
5.03 Return on Rate Base
The "Rate Base" consists of those components of Evanston's Water Utility relating to assets in
the Source of Supply, Filtration, Pumping Plant, Treatment Plant, Water Plant and Transmission
locations (the "Evanston Water Utility Components"). These Water Utility Components in
service as of December 31, 2015, are identified in the "Evanston Water Utility Components
Sheet" which is part of attached Group Exhibit "B" (Example of Rate Calculation for MG -N
Water Rate for Service Year 2017 Based on Evanston Audited Information for Fiscal Year 2015)
to this Agreement. The Parties to this Agreement understand and acknowledge that these
Evanston Water Utility Components will adjust annually as of the end of each Fiscal Year to
reflect additions to, and retirements of, Evanston Water Utility Components. The Parties to this
Agreement understand and acknowledge that these Evanston Water Utility Components may
adjust between the Effective Date of this Agreement and the date of delivery of water. Evanston
shall be included as a component of the Evanston Water Utility for purposes of asset allocation
and rate making related to asset allocation only for MG -N.
• Original Cost Rate Base: The components of the Rate Base valued at the original cost to
Evanston of the acquisition, engineering, construction and installation of the assets of the
Water Utility as identified in the most recently available Evanston Comprehensive
374534_3 9
Annual Financial Report ("Evanston CAFR"), minus accrued depreciation as of the end
of the Fiscal Year used as a basis for determining Water Charges under this Agreement.
• Reproduction Cost New Rate Base: The components of Rate Base valued initially in the
most recently available Evanston CAFR prior to the commencement of delivery of water
under this Agreement. Reproduction Cost New Rate Base will be recalculated as of the
end of each succeeding fifth Fiscal Year, starting in 2020, reflecting components then
properly allocated to the Rate Base pursuant to this Agreement. The recalculation of the
Reproduction Cost New Rate Base will utilize the most current valuation of the Evanston
Water Utility, as identified by a reputable qualified consulting engineering firm
experienced in water works valuation hired by Evanston. Accrued depreciation identified
by the engineering firm's valuation study, plus accrued depreciation which occurred from
the date of the valuation to the end of the applicable Fiscal Year of the rate determination,
will be deducted from the reproduction cost new of the plant in service at the end of the
Fiscal Year.
• Fair Value Rate Base: This will be calculated initially in the most recently available
Evanston CAFR prior to the commencement of delivery of water under this Agreement.
The Fair Value Rate Base will be recalculated as of the end of each succeeding fifth
Fiscal Year, starting in 2020, and will consist of the sum of fifty percent (50%) of the
original Cost Rate plus fifty percent (50%) of the Reproduction Cost Rate Base as of
the calculation date. The Fair Value Rate Base will be subject to annual adjustment as of
the end of the Fiscal Year between Fair Value Rate Base recalculations to reflect
additions to and retirements of Water Utility assets contained in the Rate Base during the
Fiscal Year. The next verification of the elements of the Fair Value Rate Base will be
performed by Burns and MacDonnell in 2020 (or its successor entity selected by
Evanston, as the case may be), and then once every five (5) calendar years thereafter.
Additions will be valued at their original cost until recalculation of the Fair Value Rate
Base, at which time such additions will be valued in the same manner as the Fair Value
Rate Base. Retirements will be valued at their fair value as reflected in the last previous
Fair Value Rate Base computation.
374534_3
10
• Annual Return on Rate Base: The Annual Return on Rate Base will be multiplied nine
and one half percent (9.5%) on the MG -N share of the Fair Value Rate Base identified
in the most recently available Evanston CAFR, and otherwise conform to the cost of
service principles identified in Section 5.01 (Ratemaking Principles and Policies). The
MG -N share of the Fair Value Rate Base will be determined by allocating to MG -N a
portion of such Fair Value Rate Base, as adjusted and recalculated from time to time as
provided by this Agreement. This adjustment will be based upon the ratio of each
Evanston Water Utility customer allocation, which includes the City of Evanston's
allocation, compared to the total allocation of all Evanston Water Utility customers
established by order of the Illinois Department of Natural Resources ("IDNR") during the
Fiscal Year.
5.04 Depreciation Charge
These charges will be calculated as of the end of each Fiscal Year following commencement of
the delivery of water to MG -N and will consist of one -twelfth (1/12th) of an annual depreciation
charge, calculated by applying the depreciation rates utilized by Evanston identified in Group
Exhibit "C" (Depreciation Rates) to this Agreement, to the original cost of the depreciable
Water Utility asset defined in Section 5.03 (Return on Rate Base) in service contained in the Fair
Value Rate Base allocated to MG -N. As of the date when any depreciable Water Utility asset
will be placed in service or any depreciable Water Utility asset in the Fair Value Rate Base is
retired from service, charges of depreciation to MG -N will be correspondingly adjusted as of the
end of the Fiscal Year in which the addition or retirement took place.
5.05 Ouantity Charge
MG -N will pay Evanston a Quantity Charge based upon a Quantity Rate equal to MG -N's share
of the "Operating Costs" per 1,000 gallons of water delivered to the Point of Delivery. The
"Operating Costs" to be included in determining the Quantity Rate are the costs assigned to the
functions of Administration, Pumping, Filtration, and Distribution, identified in the Evanston
CAFR of the Evanston Water Fund described in Group Exhibit "B" attached to this Agreement.
The Operating Costs applicable to water deliveries during the Service Year will be determined
374534_3
11
based on the results of operation of the Evanston Water Utility, as audited by independent
certified public accountants selected by Evanston, as reviewed by MG -N. The total Quantity
Charge will be adjusted at the end of each Service Year to reflect the actual, total Quantity
Charge owed to Evanston based on the Fiscal Year Operating Costs finally determined by the
latest annual audit performed by the current Evanston independent certified public accountant as
defined in Section 5.08 (True Up). In determining the Quantity Rate, Operating Costs will be
allocated to MG -N based upon the ratio of its Average Day Demand identified in Section 7
(Water Supply; Allocation; Distribution) of this Agreement supplied by the Evanston Water
Utility, to the aggregate of the Average Day Demand of all Evanston Water Utility, MG -N and
other customers or users of the Evanston Water Utility system during the Fiscal Year. The
Quantity Rate will not include any portion of any costs included in computing the Fair Value
Rate Base, Annual Return on Rate Base or Depreciation Charge.
5.06 Demand Charge and Quantity Charge Smoothing
• Demand Charge Cap. Upon completion of the Clearwell Project immediately south of
the Evanston Water Utility, and upon completion of the Intake Replacement Project, but
not later than the end of year 2022, any increase and decrease in any Evanston Water
Utility Asset shall not increase the total rate charged to MGN by more than four percent
(4%) per year until the entire cost of the Evanston Water Utility Asset has been
recovered by either Party compared to the cost change that would have occurred if the
Evanston Water Utility Asset change was not smoothed. No cap or smoothing will be
calculated due to the change in total customers utilizing the Evanston Water Utility. Any
increased capital costs associated exclusively with the acquisition of new customers by
Evanston will not be included in the rate calculation for MG -N. MG -N's rate shall not be
increased as a result of the acquisition of new Evanston customers. Evanston may
accelerate the replacement of assets assigned to MGN, as needed, to add a new Evanston
customer or may add new assets beneficial to MGN, provided that the new rate for MG -N
is equal to or less than the then -current MGN rate.
• Quantity Charge Cap. The Parties agree to cap any annual increase to the labor costs
portion of the Operating Costs that are used to determine the Quantity Rate based on the
374534_3
12
actual, annual aggregate cost increase (if any), but not to exceed the greater of four
percent (4%) average of the annual percentage increases of labor costs for public works
employees of Evanston, Morton Grove and Niles (e.g., Evanston increase (4.4%) plus
Morton Grove increase (4.0%) plus Niles increase (4.14%) divided by three equals a
4.167% increase).
5.07 MG -N Audit Rights
Not more than once per year, MG -N shall have the right to audit all parts of the water charges,
and the components thereof, as well as any other fees, charges, or assessments provided for in
this Agreement. MG -N's right to audit includes, but is not limited to, the Demand Charge, the
Quantity Rate, the Quantity Charge, the Rate Base and the Depreciation Charge, as well as any
other components of the water charges. Evanston shall reasonably cooperate with requests by
MG -N and its auditors regarding reasonable requests for documents and information needed to
complete the audit related to the rights and obligations of the Parties under this Agreement. Each
Party is responsible for its respective costs of the audit.
5.08 True -Up
At the end of each Service Year and subject to Section 5.07 (MG -N Audit Rights), there will be a
fmal Quantity Charge or credit issued by Evanston to MG -N to adjust the total Quantity Rate
calculated by utilizing the latest available Fiscal Year audited Operating Costs. Any adjustments
to the water charges, and the components thereof, as well as any other fees, charges, or
assessments provided for in this Agreement, that require additional payment to Evanston by MG-
N or any credit to MG -N by Evanston shall be calculated as part of this annual True -Up process.
The Parties have attached as Group Exhibit "A" to this Agreement, illustrative examples of the
"True -Up" process. After the True -Up process and any dispute resolution process are completed,
this final charge or credit shall be paid by the responsible Party within thirty (30) calendar days
of the issuance of the invoice or credit by separate payment or as otherwise mutually agreed to in
writing by the Parties.
374534_3
13
6. Water System Definitions
6.01 Water System Definitions and Related Terms
In this Agreement, the following definitions apply:
• Evanston Clearwell Project: The replacement of the 5.0 MG treated water storage facility
located on the south side of Lincoln Street opposite the water treatment plant (See,
Group Exhibit "B", #203 of the Treatment Plant asset list).
• Evanston Connection Facility: Evanston control valve, delivery meter, piping and other
components necessary to supply water to MG -N that will be housed in an underground
vault near the intersection of McCormick Boulevard and Emerson Street and owned by
Evanston and included as a transmission component in the rate base.
• Evanston Facilities Adjustments: Modifications to the Evanston distribution system near
the intersection of McCormick Boulevard and Emerson Street necessary to construct the
Evanston Connection Facility and continue delivery of water to the Village of Skokie.
• Evanston Intake Replacement Project: The replacement of Evanston's 36" and 42"
diameter intake(s) and all appurtenances thereto (See Group Exhibit "B", #9 and #13 in
the Source of Supply asset list).
• Evanston Water Utility: The assets in the Source of Supply, Pumping Plant, Treatment
Plant, Water Plant and Transmission locations in service as of December 31, 2015, and
identified in Group Exhibit "B" to this Agreement, which components may adjust
annually as of the end of each Fiscal Year to reflect additions to, and retirements of,
Water Utility components.
• Morton Grove Water System: The infrastructure that makes up the Morton Grove Water
System, including but not limited to, the water treatment, pumping, storage, distribution
and delivery system, pump stations, transmission and distribution mains, valves, meters,
and connection facilities.
• Niles Water System: The infrastructure that makes up the Niles Water System, including
but not limited to, the water treatment, pumping, storage, distribution and delivery
system, pump stations, transmission and distribution mains, valves, meters, and
connection facilities.
374534_3
14
• MG -N Water System: The infrastructure that makes up a shared waterworks system that
extends from the Point of Delivery to the Morton Grove Water System and the Niles
Water System, including the MG -N connection facilities.
• Point of Delivery: The point of connection of the MG -N Water System and the Evanston
Connection Facility adjacent to the underground vault near the intersection of
McCormick Blvd. and Emerson Street.
• Project: The construction of the Evanston Connection Facilities, the Evanston Facilities
Adjustments, the MG -N Water System, and all related and necessary improvements made
to the Evanston Water Utility, the Morton Grove Water System, and the Niles Water
System, as provided for in this Agreement.
• To the extent a word or term is used in this Agreement that is not defined herein, the first
source of interpretation of the word or term shall be its definition in the AWWA M-1
Manual or other AWWA publication pertaining to water transmission and distribution
facilities (if defined therein), then any applicable federal or state laws (e.g., Clean Water
Act) and then the common definition found in the most recent edition of any mutually
agreed upon nationally published dictionary (e.g., Webster's Dictionary or Merriman's
Dictionary).
7. Water Supply; Allocation; Distribution
7.01 Water Supply, Sale and Purchase; Allocation
Evanston will sell and deliver to MG -N the full water requirements of the MG -N Water System,
except as otherwise set forth in this Agreement. MG -N will purchase all of the water it receives
from Evanston in accordance with this Agreement.
Morton Grove, Niles and MG -N, and their successor entities, are each responsible to obtain and
maintain a water allocation from the Illinois Department of Natural Resources ("IDNR"). In this
Agreement, Average Day Demand ("ADD") means the IDNR allocations established in
November 2011 for Morton Grove and Niles. In this Agreement, Maximum Flow Rate ("MFR")
means the rate of flow that Evanston is required to provide at the Point of Delivery.
374534_3
15
The Maximum Flow Rate to Morton Grove and Niles is based on the Year 2030 IDNR allocation
assigned to Morton Grove and Niles multiplied by a 1.65 peaking factor.
• Illustrative formula for calculating the MFR for Morton Grove and Niles: Morton Grove
Year 2030 IDNR allocation = 3.880 x 1.65 = 6.402 Million Gallons Per Day ("MGD")
MFR.
• Niles Year 2030 IDNR allocation = 5.146 x 1.65 = 8.491 MGD MFR.
• Total Maximum Flow Rate at Point of Delivery by Evanston to MG -N throughout the
Term of this Agreement shall be 14.893 MGD MFR.
7.02 Emergency Connections
This Agreement will not prohibit MG -N or Evanston from entering into any emergency water
service agreement with another municipality, water agency, or other source. Nothing in this
Section will prevent Evanston's right to collect all water charges provided for in this Agreement.
7.03 Coefficient of Friction
MG -N shall maintain its transmission mains to provide a coefficient of friction ("C -factor") to be
determined after the completion of the final design engineering for the MG -N Water System,
which C -factor will be incorporated into this Agreement by a jointly executed side -letter issued
prior to the delivery date of water. Unless otherwise agreed to by the Parties, the C -factor rating
of the MG -N Water System between the Point of Delivery and the MG -N booster station or MG-
N (referred to as the "Evanston Pressurized Zone" of the MG -N Water System) receiving
reservoir shall not be less than a C -factor rating of 90. If the C -factor falls below 90 within the
Evanston Pressurized Zone of the MG -N Water System, Evanston is not required to meet the
Maximum Flow Rate as indicated in Section 7.01 (Water Supply Sale and Purchase; Allocation).
The Maximum Flow Rate shall decrease directly on a one to one basis with the decrease in C -
factor rating (e.g., 80 C -factor = 80% maximum flow rate). The C -factor is identified in Cameron
Hydraulic Data, or equivalent successor statement of measure, and typically used for the design
of concrete pipes to reflect the roughness of the pipe after many years of operation. MG -N shall
test its transmission mains beginning in Year 2023, and every fifth year thereafter, to determine
the C -factor rating and promptly provide those results to Evanston to ensure adherence to this
374534_3
16
requirement. If the transmission main(s) of MG -N fail to meet the required C -factor rating as set
forth in this Section, then another C -factor test shall be conducted during the subsequent Service
Year.
7.04 Pressures
Evanston will supply water to MG -N by direct pressure from the Evanston Water Plant without
intermediate pumping from reservoirs. Evanston shall control operating pressures within its
water distribution system and adjust such pressures according to the water demands within its
water distribution system to ensure that the pressure at the Point of Delivery is at all times
between 40 and 50 pounds per square inch ("PSP").
7.05 Supply and Service Agreement Only; Title to Water
Nothing in this Agreement shall be construed as granting any proprietary or other interest in the
Evanston Water Utility to MG -N. Nothing in this Agreement shall be construed as granting any
proprietary or other interest in the MG -N Water System to Evanston. Evanston and MG -N agree
that this Agreement is solely an agreement for the sale and purchase of a supply of Water and
related services. Title to Water passes at the Point of Delivery from Evanston to MG -N.
Evanston agrees to deliver an adequate water supply on a regular basis to maintain MGN water
requirements as provided for in this Agreement. Evanston agrees to not utilize off-peak pumping
to meet the MG -N water requirements, unless requested by MG -N.
7.06 Temporary Restriction
Evanston has the right to restrict, on a temporary basis, the supply of water to MG -N in order to
ensure an adequate water supply to all customers of the Evanston Water Utility for basic water
services, and firefighting purposes, provided that the duration of the temporary water restriction
is limited to the minimum time period necessary to resolve the condition or unforeseen
emergency that caused the temporary restriction. Evanston shall take immediate, commercially
reasonable actions to fix, repair, employ a temporary solution until a permanent solution is
available or resolve the condition or unforeseen emergency that caused the temporary water
restriction. If there is an insufficient water supply available to serve MG -N and all other
374534_3
17
customers, MG -N will receive its pro -rata share of the amount of water based on the IDNR
Allocation(s) that is stored and available at the Evanston Water Utility as defined and identified
in the then current Group Exhibit `B" to this Agreement. If Evanston temporarily restricts the
supply of water to MG -N under this Section, it shall deliver immediate written notice to MG -N
that explains the reason(s) for the restriction, identifies the estimated reduction in the volume of
water to be supplied to MG -N and the anticipated duration of the reduction in water supply
service. During the first twenty-four (24) hour period of the temporary water restriction,
Evanston shall provide MG -N with status reports in subsequent eight (8) hour(s) intervals
relative to the progress in resolving the condition or unforeseen emergency that caused the
temporary water restriction. If the temporary water restriction extends or is anticipated to extend
beyond a twenty-four (24) hour period, the Parties agree to meet to discuss commercially
reasonable options and actions to fix, repair, employ a temporary solution until a permanent
solution is available or resolve the condition or unforeseen emergency that caused the temporary
water restriction.
7.07 Maintenance
Scheduled maintenance and repair to the Evanston Water Utility or the MG -N Water System that
may impact water supply and service to MG -N cannot be done except upon prior notice to the
other Parties of not less than five (5) days. Scheduled maintenance to water system infrastructure
during peak demand periods shall be avoided to the extent possible. Notice of emergency
maintenance or repair will be provided by the Party performing the maintenance and repair to the
other Party as soon as practicable under the circumstances. Each Party agrees to maintain their
respective water systems in accordance with the manufacturers' warranty and operational
specifications.
7.08 MG -N Option to Purchase Water from Other Suppliers
Notwithstanding any other provision in this Agreement, MG -N may purchase water from other
water suppliers under the following two (2) situations. First, MG -N may purchase water from
other water suppliers to the extent Evanston fails to deliver to MG -N the full water requirements
up to the total amount of the IDNR allocations as required by this Agreement. In the event of
374534_3
18
such failure by Evanston, but excluding temporary restriction(s) under Section 7.06 or
maintenance situations under Section 7.07 above, Evanston shall provide written notice to MG -N
of the service failure, which shall include a description of the operational or technical reasons for
the failure to deliver MG -N's full water requirements. Second, MG -N may purchase water from
the City of Chicago under non -emergency conditions in order to maintain an active, operational
water supply connection.
7.09 Surges and Back -Flows
No surges or back -flows into any Party's water system are allowable under this Agreement.
7.10 MG -N Responsibility for Damage to Evanston's Water Utility
MG -N is responsible for damage to the Evanston Water Utility or of any of its customers due to
surges and back -flows caused by malfunction or misuse of MG -N's Water System, including,
without limitation, valve operation or booster station operation, excluding damage where
Evanston is responsible for the operation of the MG -N Water System, including, without
limitation, its valve operation or booster station. MG -N shall install a flow control system and a
pressure recording system consisting of remotely operated flow control valve(s) at the MG -N
receiving reservoir(s). MG -N shall provide the necessary equipment to transmit pressures, rates
of flow and receiving reservoir(s) elevations prior to delivery of water by Evanston. All devices
necessary for the control and transmission of pressures, levels and rates of flow of water
furnished to MG -N that are part of the MG -N Water System shall be provided and maintained by
MG -N, and comply with the provisions of Section 10 (Meters and Measurements; Meter
Testing). Water pressure and rate of flow readings shall be transmitted to the Evanston Pumping
Station. All flow control valves within the Evanston Water Utility shall be controlled by
Evanston in accordance with the provisions of this Agreement.
7.11 Evanston's Responsibility for Damage to MG -N's Water System
Evanston is responsible for damage to the MG -N Water System or of the water systems any of
its customers due to surges and back -flows caused by malfunction or misuse of Evanston's
374534_3
19
Water Utility, including, without limitation, valve operation, booster station operation or pump
station operation.
7.12 Operating Meetings and Plan
Evanston shall provide to MG -N, at no cost to MG -N, with a copy of Evanston's most recently
prepared annual operating plan and capital plan related to the Evanston Water Utility
("Operating Plan") no less than thirty (30) calendar days before each operations meeting
provided for in this Section. Evanston shall convene an operations meeting with MG -N at least
two (2) times per year for every year this Agreement is in effect. Meetings may be in person or
may be convened through mutually acceptable electronic means. Evanston shall provide MG -N
with copies of all required State or Federal filings that Evanston is required to file regarding its
operation of its Water Utility and Water System. Evanston will provide MG -N with its then
applicable Operating Plan related to the Evanston Water System prior to the date of first delivery
of Water to MG -N.
7.13 Continuity of Operations Plan
Evanston agrees to provide a copy of the most recent WTP/Evanston Water Utility System
evaluation report, along with a status report on the actions taken on the recommendations made
in that report by March 1, 2017.
Evanston agrees to have a plant evaluation performed by a consultant in Year 2018 and every ten
(10) years thereafter. This evaluation shall review each system and component of the Evanston
Water Treatment Plant ("WTP"), and the portions of the Evanston Water Utility System that
serves MG -N, to determine their useful life and dependability in order to meet the needs of the
users of the WTP, and shall be summarized in a report. This report will be made available to
Evanston's wholesale water customers and MG -N. The Parties agree to meet and confer
regarding the scheduling and implementation of any recommendations provided in the report
during meetings convened under Section 7.12 (Operating Meetings and Plan) and Evanston
agrees to update its capital improvement plan annually to address the report recommendations
and share this information with MG -N.
374534_3
20
Evanston has a vulnerability assessment report for the WTP and the Evanston Water Utility
System and agrees to update the report on an as needed basis, and will be available for review by
MG -N. This report is currently an exempt public record under the Illinois Freedom of
Information Act.
8. Existing and Future Customers of Evanston; MGN Other Users
8.01 Existing and Other Water Customers Served by Evanston
Evanston agrees that it will continue to supply water to its existing customers without impairing
MG -N's right to Water service from Evanston under this Agreement, or impairing Evanston's
ability to deliver Water to MG -N under this Agreement. Nothing in this Agreement limits
Evanston executing new, modified or amended agreements with any other current or future
wholesale water customer served by Evanston. Evanston shall give MG -N at least six (6)
calendar months prior written notice before Evanston enters into a contract to serve a new
wholesale water customer or enters into an addendum to amend any water supply agreements
with existing wholesale water customers. Evanston shall provide MG -N with copies of the
contract and/or the addendum and the cost / benefit analysis report provided to the Evanston City
Council, prepared in regard to the addition of a new wholesale water customer or customer
whose IDNR allocation has been changed, and MG -N may provide Evanston with written
comments regarding this subject. MG -N agrees Evanston has the right to serve new wholesale
water customer(s) subject to its obligations to MG -N under this Agreement.
In the event of the loss of the Northwest Water Conunission ("NWC") between the years of
2034-2047, the change in the total rate increase shall be calculated, and MG -N shall be assessed,
not more than fifty percent (50%) of the rate increase incurred by the loss of NWC. Assuming
the loss of NWC between the years of 2034-2047, total MG -N rate increases shall be capped at
eight percent (8%) per annum. Evanston shall take all commercially reasonable actions to
reduce all assets in use at the WTP to reflect the new plant demand without NWC. After 2048,
MG -N rates shall be recalculated according to this Agreement.
374534_3
21
8.02 Right of MGN to Supply Water to Other Users
MG -N has the right to resell Water it owns under this Agreement to existing and future water
users of MG -N's Water System, provided that MG -N does not exceed its ADD under its then
current IDNR water allocation, as determined by the IDNR or its successor regulatory agency.
MG -N shall give Evanston at least six (6) calendar month prior written notice before MG -N
enters into a contract to service any new water customer(s), and MG -N shall provide Evanston
with copies of the contract and the cost / benefit analysis report in prepared in regard to the
addition of a new wholesale water customer. Evanston may provide MG -N with written
comments regarding this subject.
8.03 Liability for Unreasonable Delav by MGN
If MG -N fails or refuses to complete the MG -N Water System as required by this Agreement,
then MG -N shall pay to Evanston all reasonable, actual, documented costs incurred by Evanston
as listed in Section 18.03 (G, 11, or I) (Termination by MG -N), and in Sections 4.01 (MG -N
Notice to Evanston to Proceed With Preliminary Project Phase Work) through 4.07
(Commencement of Obligation to Deliver and Receive Water). If MG -N fails to complete the
MG -N Water System due to a Force Majeure Event(s) or any other delays that prevent the
completion of MG's Project Improvements until after the Delivery of Water (Section 4.04), MG-
N shall not be obligated to pay to Evanston any costs or penalty, provided that MG -N has taken
and continues to take all commercially reasonably actions to complete the MG -N Project
Improvements as soon as reasonably possible after the expected Delivery Date Of Water.
8.04 Liability for Unreasonable Delav by Evanston
If Evanston fails or refuses to complete the components at the Point of Delivery in a
commercially reasonable time frame as outlined in Section 4.01 (MG -N Notice to Evanston to
Proceed with Preliminary Project Phase Work) through Section 4.07 (Commencement of
Obligation to Deliver and Receive Water) and MG -N are unable to receive water from Evanston
by the anticipated initial delivery date of water, or such other alternate water delivery date, as
provided for in Section 4.01 (MG -N Notice to Evanston to Proceed with Preliminary Project
Phase Work) through Section 4.07 (Commencement of Obligation to Deliver and Receive
374534_3
22
Water) above, due to such failure or refusal by Evanston, then Evanston will pay to MG -N the
difference between the water rate that would have been charged by Evanston under this
Agreement, and the then -applicable Chicago water rate (or the water rate charged by an alternate
water supplier).
9. Facility Completion Schedule
9.01 Specifications and Sequence of Construction for the Project
Improvements
After the approval of this Agreement, and subject to the notice to proceed provisions set forth in
this Agreement, the Parties agree to work cooperatively together and to share relevant
information to develop their respective specifications for their own Project improvements and to
prepare construction schedules and operating procedures for the Project improvements, including
the joint review of preliminary design plans and final design plans for review comment purposes
and delivery of periodic status reports by each Party relative to the Evanston Connection
Facilities and the MG -N Water System.
9.02 IEPA and Other Approvals for the Project
The Parties agree to apply for, obtain and maintain all permits, licenses and other approvals
required by the federal, state, county and local governments and governmental regulatory
agencies with jurisdiction over the Project.
9.03 Easements, Licenses, Permits, Fees and Approvals
A. Evanston. Evanston shall take all necessary action to provide and grant to MG -N easements,
permits and licenses for the construction of the MG -N Water System on Evanston -owned or
controlled real property or easement premises and within Evanston's corporate boundaries.
Evanston agrees to waive all required permit fees, license fees and plan review fees that would
otherwise be paid by MG -N to Evanston related to this Project. However, Evanston will not be
responsible for any costs not on Evanston -owned or controlled real property or Evanston held
374534_3
23
easements but within Evanston's corporate boundaries. Construction of the MG -N Water
System within Evanston must be completed in accordance with all Evanston City Code
requirements governing construction and restoration applicable in Evanston.
13. MG -N. MG -N shall take all necessary action to acquire easements, permits and licenses for
the construction of the MG -N Water System Facilities within Evanston's corporate boundaries
and outside of Evanston's corporate boundaries. MG -N agrees to pay all required permit fees,
license fees and plan review fees to all governmental regulatory agencies with jurisdiction
over the Project, except for Evanston. Construction of the MG -N Water System shall conform
to all applicable laws, ordinances, codes, regulations and specifications.
10. Meters and Measurements; Meter Testing
10.01 Unit of Measurement
The unit of measurement for water delivered pursuant to this Agreement will be gallons of water,
U.S. Standard Liquid measure, and all meters installed pursuant to this Agreement must, unless
the Parties otherwise agree, be so calibrated, and must read at one thousand (1,000) gallons of
water.
10.02 Supervisory Control and Data Acquisition ("SCADA")
Evanston shall in real time provide to MG -N the following SCADA information, except during
SCADA failure:
a) total plant flow data;
b) flow through MG -N master meter data;
c) pressure at MG -N delivery meter facility data; and
d) Evanston control valve position.
MG -N shall in real time provide to Evanston incoming and outgoing flow data from each
receiving reservoir as well as the water level in each receiving reservoir, except during SCADA
failure. At all times, but with prior notice to MG -N unless there is an emergency situation,
374534_3
24
Evanston will operate and control the control valves at the booster station / receiving
reservoir(s) in Morton Grove or Niles through the use of the SCADA system, provided Evanston
has approved the design and construction of the pressure control devices, control valves and
related SCADA components that are designed and constructed to reasonable industry standards
(e.g., a hydraulic transient study). In regard to on-site visits and inspections of each Party's
respective water system facilities, the requesting Party shall request any on-site visits and
inspections in advance by written notice to the receiving Party and shall comply with all security
protocols and be accompanied by the receiving Party's staff during the on-site visit or inspection,
and the receiving Party shall cooperate in scheduling such on-site visits and inspections.
Evanston and MG -N agree to promptly repair any SCADA failures.
10.03 Delivery Meters
Water sold and delivered to MG -N pursuant to this Agreement must be measured through a
meter or meters furnished, installed, maintained, replaced and read by Evanston (the "Delivery
Meters"). Except as provided in this Agreement, all billing for Water sold and supplied pursuant
to this Agreement must be based upon Evanston's readings of the Delivery Meters, subject to
MG -N's right to audit Evanston's readings under Section 5.07 (MG -N Audit Rights) above. All
Delivery Meters shall be in good working order, shall at all times meet or exceed the standards of
the AWWA, or its successor entity, and shall be available for inspection, testing, and checking
by MG -N upon reasonable request to Evanston. Evanston shall at its cost maintain, inspect, test,
calibrate and adjust all Delivery Meters not more than two (2) times per year. Representatives
from MG -N shall have the right to witness all such maintenance, inspections, tests, calibrations
and adjustments. The cost of testing the Delivery Meters payable by MG -N shall be Two
Hundred Dollars ($200.00) per month. Copies of the results of all such maintenance, inspections,
tests, calibrations and adjustments must be furnished by Evanston to MG -N upon request.
10.04 Check Meters
MG -N may, at their option and expense, install and operate a check meter(s) (a "Check Meter")
to check each Delivery Meter, but the measurement of water for billing pursuant to this
374534_3
25
Agreement shall, except as hereinafter provided, be measured solely by the Delivery Meters. All
Check Meters shall meet or exceed the standards of the AWWA and shall be available for
inspection and checking by Evanston upon reasonable request to MG -N. The costs for
installation, maintenance, regulatory fees, reading, testing, calibration, and adjustment of all
Check Meters shall be performed by MG -N at MG -N's sole cost and expense.
10.05 Meter Calibration and Adiustment
If either Evanston or MG -N at any time observes a variation between a Delivery Meter and a
Check Meter or any other evidence of meter malfunction, such Party must promptly notify the
other Party, and Evanston and MG -N agree to cooperate to inspect and test the accuracy of such
meter(s). If upon any inspection or test, any meter is found to be out of service or the percentage
inaccuracy of any meter is found to be in excess of two percent (2%) slow or fast, then the
meter's registration, as well as charges for water based on incorrect metering, must be corrected
by agreement of Evanston and MG -N based on the best data available. The best data available is
defined as the registration of an installed Check Meter that is accurately registering in excess of
two percent (2%) slow or fast during the period extending back to the time when such
inaccuracy began. If it is impossible to determine the time period of inaccuracy, the correction
period will extend back one-half of the time elapsed since the last date of calibration. Otherwise,
the amount of water delivered during such period may be estimated by:
• correcting the error if the percentage of the error is ascertainable by calibration tests or
mathematical calculation; or
• if the error is not ascertainable by calibration tests or mathematical calculation, by
estimating the quantity of water delivered by reference to deliveries during the preceding
periods under similar conditions when the meter or meters were registering accurately.
10.06 Notification Concerning Meter Tests.
Evanston and MG -N shall deliver to the other Party written notice at least seventy-two (72)
hours in advance of the time of any planned maintenance, inspection, test, calibration,
adjustment or other work affecting any Delivery Meter or Check Meter so that the other Party
may arrange to have a representative present. If said representative is not present at the time set
374534_3 26
in such notice, the inspection, test, calibration, adjustment or other work will proceed in the
absence of said representative. Notices required under to this Section 10.06 shall be given to the
following persons at the following addresses, unless otherwise provided in writing by MG -N or
Morton Grove or Niles:
If for Evanston:
Director of Public Works Agency
555 Lincoln Street
Evanston, Illinois 60201
Phone: 847.448.4311
Email: current business email address
If for Morton Grove:
Director, Public Works
Village of Morton Grove
7840 Nagle Avenue
Morton Grove Illinois 60053
Phone: (847) 470-5235
Fax: (847) 965-9511
Email: current business email address
If for Niles:
Public Services Director
Village of Niles
6849 West Touhy Avenue
Niles, Illinois 60714
Phone: (847) 588-7900
Fax: (847) 588-7950
Email: current business email address
10.07 Removal of Meters
Delivery Meters and Check Meters may be removed upon termination of this Agreement only
upon mutual agreement of the Parties and upon the release of any easements related thereto.
10.08 Meters for Customers
Each Party is responsible for providing water meters to its own customers.
374534_3
27
11. Dispute Resolution
11.01 Negotiation
If a dispute arises between Evanston and MG -N concerning this Agreement, the Parties will first
attempt to resolve the dispute by negotiation. Each Party will designate persons to negotiate on
their behalf. The Party contending that a dispute exists must specifically identify in writing all
issues and present it to the other Parties. The Parties will meet and negotiate in an attempt to
resolve the matter. If the dispute is resolved as a result of such negotiation, there must be a
written determination of such resolution, and ratified by the corporate authorities of each Party,
which will be binding upon the Parties. If necessary, the Parties will execute an addendum to
this Agreement. Each Party will bear its own costs, including attorneys' fees, incurred in all
proceedings in this Section. If the Parties do not resolve the dispute through negotiation, any
Party to this Agreement may pursue other remedies under Section 11.02 (Remedies) below to
enforce the provisions of this Agreement.
11.02 Remedies
In any action with respect to this Agreement, the Parties are free to pursue any legal remedies at
law or in equity. Each and every one of the rights, remedies, and benefits provided by this
Agreement shall be cumulative and shall not be exclusive of any other rights, remedies, and
benefits allowed by law. Each Party will bear its own costs, expenses, experts' fees, and
attorneys' fees, incurred in all litigation arising under this Agreement.
11.03 Venue and Applicable Law
All questions of interpretation, construction and enforcement, and all controversies with respect
to this Agreement, will be governed by the applicable constitutional, statutory and common law
of the State of Illinois. The Parties agree that, for the purpose of any litigation relative to this
Agreement and its enforcement, venue will be in the Circuit Court of Cook County, Illinois or
the Northern District, Eastern Division of the United States District Court, Chicago, Illinois, and
the Parties consent to the in personam jurisdiction of said Courts for any such action or
proceeding.
374534_3
28
12. Force Majeure
12.01 Excuse From Performance
No Party will be liable in damages to any other Party for delay in performance of, or failure to
perform, its obligations under this Agreement, if such delay or failure is caused by a Force
Majeure Event as defined in Section 12.02 (Force Majeure Event) below. If a Party cannot
perform under this Agreement due to the occurrence of a Force Majeure Event, then the time
period for performance of the Party under this Agreement shall be extended by the duration of
the Force Majeure Event.
12.02 Force Majeure Event
A "Force Majeure Event" means an event not the fault of, and beyond the control of, the Party
claiming excuse which makes it impossible or extremely impracticable for such Party to perform
obligations imposed on it by this Agreement, by virtue of its effect on physical facilities and their
operation or employees essential to such performance. Force Majeure Events include:
• an "act of God" such as an earthquake, flood, fire, Lake Michigan seiche, tornado, earth
movement, or similar catastrophic event,
• an act of terrorism, sabotage, civil disturbance or similar event,
• a strike, work stoppage, picketing, or similar concerted labor action,
• delays in construction caused by unanticipated negligence or breach of contract by a
third party or inability to obtain essential materials after diligent and timely efforts; or
• an order or regulation issued by a Federal or State regulatory agency after the Effective
Date or a judgment or order entered by a Federal or State court after the Effective Date.
A Force Majeure Event does not include a change in economic or market conditions or a change
in the financial condition of a Party to this Agreement.
12.03 Notice
The Party claiming a Force Majeure Event excuse must deliver to the other Parties a written
notice of intent to claim excuse from performance under this Agreement by reason of a Force
Majeure Event. Notice required by this Section must be given promptly in light of the
circumstances. Such notice must describe the Force Majeure Event, the services impacted by the
374534_3 29
claimed event, the length of time that the Party expects to be prevented from performing, and the
steps which the Party intends to take to restore its ability to perform its obligations under this
Agreement.
13. Preservation of Water Rights
Evanston intends to preserve all of its water rights, irrespective of whether the water held under
such water rights is allocated under this Agreement. Nothing in this Agreement shall be
construed as an abandonment, or evidence of intent to abandon, any of the water rights that
Evanston presently possesses.
14. Good Faith and Fair Dealing
The Parties each acknowledge their obligation under Illinois law to act in good faith toward, and
deal fairly with, each other with respect to this Agreement.
15. MG -N Option to Create a JAWA or a Water Commission; Assignment
A. JAWA; Water Commission. If a Municipal Joint Action Water Agency ("JAWA") is created,
pursuant to 5 ILCS 220/3.1, as amended from time to time, or a municipal Water Commission is
created, pursuant to 65 ILCS 5/11-135-1, et seq., as amended from time to time, which has
jurisdiction over the MG -N Water System (the "MG -N Successor Entity"), all of MG -N's rights
and obligations under this Agreement shall be automatically assigned to, and assumed by, the
MG -N Successor Entity. MG -N shall have no further rights or obligations under this Agreement,
effective as of the date of the creation of the MG -N Successor Entity. MG -N shall give Evanston
prior written notice of the proposed creation of a MG -N Successor Entity at least ninety (90)
calendar days prior to the creation of the MG -N Successor Entity. Immediately after the creation
of the MG -N Successor Entity, signed copies of the corporate approval and formation documents
(i.e. approving ordinance, intergovernmental agreement and by-laws) of the MG -N Successor
Entity shall be sent to Evanston. Thereafter, the MG -N Successor Entity and Evanston agree to
enter into an addendum to this Agreement to formally recognize the automatic assignment set
forth herein and that MG -N has no further rights or obligations under this Agreement, provided
374534_3
30
however that MG -N is current in all required payments and charges owing to Evanston prior to
such assignment taking effect.
B. Assignment by MG -N or the MG -N Successor Entity. MG -N and any MG -N Successor Entity
shall have the right to assign this Agreement to a public water utility or another statutory water
agency, provided that MG -N or Morton Grove or Niles becomes a member of the new statutory
water agency, subject to prior written notice to Evanston and approval of the assignment by
Evanston, which approval shall not be unreasonably withheld so long as the Successor Entity
assumes all obligations of MG -N (or the obligations assumed by the MG -N Successor Entity) as
set forth in this Agreement or any addendum, and the Successor entity is authorized and
obligated to collect adequate revenue from its customers to pay the water rate charged by
Evanston. After the assignment, MG -N, Morton Grove, or Niles, or the MG -N Successor Entity,
shall have no further rights or obligations under this Agreement.
16. Financing Options for the Project
16.01 Cooperation with Project Financing
Evanston and MG -N will cooperate with each other to explore options for issuing water revenue
bonds, other debt obligations and/or applying for any grants or loans to assist with the financing
of the anticipated improvements to be made to their respective Water Systems in order to
complete and operate the Evanston Connection Facilities, the Evanston Facilities Adjustments,
the MG -N Water System and any other Water System improvements covered by this Agreement.
Evanston may, if necessary and advantageous for Evanston and as determined solely by
Evanston, issue debt to finance the Project, in part or in whole as the case may be, only if
necessary and advantageous for MG -N, as determined by MG -N, provided that Evanston is able
to earn an acceptable profit on the debt. To the extent that the Parties agree to issue bonds or
other debt instruments in the name of Evanston, alone, or in their own respective or collective
corporate names, the Parties agree to enter into such other additional intergovernmental
agreements as are necessary to provide the statutory authority to issue such bonds and other debt
instruments. As between Evanston and MG -N, each respective Party shall be responsible to
make payments on its own debt service for its own Project Improvements. Evanston shall not be
374534_3 31
obligated to pay any of the debt service payments for MG -N Project Improvements. MG -N shall
not be obligated to pay any of the debt service payments for Evanston Project Improvements.
16.02 MGN Project Financing Options
MG -N reserves the right to finance its own Project Improvements.
17. Disconnection, Removal Relocation of Connection Facilities or
Transmission Mains
17.01 Termination of Agreement
Upon termination of this Agreement, Evanston, in its discretion and at its cost, may disconnect or
remove the Evanston Connection Facilities and / or the MG -N Connection Facilities and / or
transmission mains located within Evanston's rights of way or utility easements, but only after
the Parties mutually approve and sign an agreement and a release of easements that pertain to
disconnection and/or removal of the Evanston Connection Facilities, the MG -N Connection
Facilities and / or the transmission mains.
17.02 Relocation
In the event that the Point of Delivery or any portion of the Evanston Connection Facilities and
the MG -N Connection Facilities or any transmission mains need to be relocated due to
unanticipated circumstances or at the request of either Party, the Parties may negotiate an
addendum to this Agreement that provides for the relocation, reconstruction, financing and cost
sharing of the relocation work. If this Agreement is terminated, within one (1) year of the
effective date of such termination, all connection facility assets, components, and equipment
within Evanston must be removed at MG -N's sole cost and expense, unless otherwise agreed
upon by the Parties.
18. Termination; Default
18.01 Termination by Evanston
This Agreement shall be subject to termination if a court of competent jurisdiction restricts or
limits any of Evanston's rights to obtain, sell, contract for, or distribute water to MG -N in a
374534_3 32
manner that prohibits Evanston from complying with its obligations to MG -N under this
Agreement. Evanston will have the right to terminate this Agreement if MG -N fails and defaults
with respect to its obligations under Section 5.02 (Billing and Payments) of this Agreement, and
otherwise fails and refuses to cure such default under Section 11.01 (Negotiation) and Section
18.04 (Default; Cure Period; Relief).
18.02 Termination by Mutual Agreement
Only upon mutual consent, the Parties may agree terminate this Agreement, in writing, after the
approval of a termination or wind -down agreement by their respective corporate authorities.
18.03 Termination by MGN
MG -N shall have the right to terminate this Agreement if it delivers written notice to Evanston of
its intention to terminate this Agreement not less than five (5) years prior to the termination date
of the then -existing Term. In addition, MG -N has the right to terminate this Agreement for the
following reason(s):
A. If MG -N is unable to obtain easements or title to real property to construct the MG -N
Connection Facilities and other necessary MG -N Project Improvements.
B. If the MG -N Engineering and Route Study determines that the MG -N Connection Facilities
and other necessary MG -N Project Improvements will not be feasible for any reason, including
but not limited to a lack of technical feasibility to complete the MG -N Project Improvements, or
a lack of relative financial feasibility to pay for the MG -N Project Improvements.
C. If the bid results for the MG -N Connection Facilities and other necessary MG -N Project
Improvements exceeds:
1) the MG -N Engineer's Estimate;
2) the approved MG -N Project Budget; or
3) the MG -N Project Financial / Debt Repayment schedule. MG -N shall provide all documents
and data to Evanston prior to MG -N cancelling the bid.
D. Evanston fails to deliver water in accordance with or otherwise fails to comply with the terms
of this Agreement,
374534_3
33
E. MG -N can terminate this Agreement at the end of the Initial Term, or as otherwise provided
during any Extended Term, subject to timely written notice to Evanston.
F. MG -N can terminate this Agreement prior to its issuance of written notice to proceed with
Evanston's Preliminary Project Phase Work as set forth in Section 4.01 above, for any reason,
without any liability to Evanston.
G. MG -N can terminate this Agreement after its issuance of written notice to proceed with
Evanston's Preliminary Project Phase Work as set forth in Section 4.01 above, provided MG -N
fully reimburses Evanston for all reasonable actual, documented costs incurred by Evanston
relating only to Project consultants and Project engineering fees and expenses that are incurred
by Evanston after the date of issuance of MG -N's Notice to Evanston to Proceed with
Preliminary Project Phase Work. Evanston or MG -N will not be reimbursed for staff time or
corporation counsel time or outside legal counsel fees and expenses.
H. MG -N can terminate this Agreement after its issuance of written notice to proceed with
Evanston's Final Engineering Design Work as set forth in Section 4.02 above, provided MG -N
fully reimburses Evanston for all reasonable actual, documented costs incurred by Evanston
relating only to Project consultants and Project engineering fees and expenses that are incurred
by Evanston after the date of issuance of MG -N's Notice to Evanston to Proceed with Final
Engineering Design Work. Evanston or MG -N will not be reimbursed by the other Party for staff
time or corporation counsel time or outside legal counsel fees and expenses.
I. MG -N can terminate this Agreement prior to acceptance of water from Evanston, provided
MG -N fully reimburses Evanston for all reasonable actual, documented costs incurred by
Evanston, relating only to Project consultants and Project engineering fees and expenses and
construction costs that are incurred by Evanston after the date of issuance of MG -N's Notice to
Evanston to Proceed with Construction as set forth in Section 4.03 above. Evanston or MG -N
will not be reimbursed by the other Party for staff time or corporation counsel time or outside
legal counsel fees and expenses.
18.04 Default; Cure Period; Relief
In the event any Party defaults in regard to any obligation under this Agreement, the non -
defaulting Party shall send written notice of the default, with a description of the default, and a
374534_3
34
request that the defaulting Party cure the default. Any Party deemed to be in default under this
Agreement by another Party shall have a thirty (30) calendar day cure period to resolve the
default to the other Party's satisfaction or to initiate and continue to take actions that are
designed to cure the default in a reasonable time period so that the Party in default is in
conformance with the terms of this Agreement. In the event that a default is not cured, the non -
defaulting Party and the defaulting Party shall participate in the "Dispute Resolution" process
contained in Section 11.01 (Negotiation) above. If the Dispute Resolution process is not
successful, then either Party may seek to enforce remedies in Section 11.02 (Remedies) to
enforce the provisions of this Agreement.
19. General Conditions
19.01 Entire Agreement
This Agreement constitutes the entire agreement of the Parties concerning all matters specifically
covered by this Agreement. There are no representations, covenants, promises or obligations not
contained in this Agreement that form any part of this Agreement or upon which any of the
Parties is relying upon in entering into this Agreement. There are no other commitments,
understandings, promises or condition among the Parties in any other contract or agreement,
whether oral or written, and this Agreement supersedes all prior written or oral agreements,
commitments and understandings among the Parties.
19.02 Prompt Payment
In regard to the payment of any fee, charge or assessment provided for under this Agreement, the
Parties are subject to and shall comply with the Local Government Prompt Payment Act (50
ILCS 505/1, et seq.).
19.03 Compliance With Laws
The Parties to this Agreement shall comply with all applicable Federal, State and local laws,
rules and regulations in carrying out the terms and conditions of this Agreement.
374534_3
35
19.04 Regulatory Bodies
This Agreement shall be subject to all valid rules, regulations, and laws applicable hereto passed
or promulgated by the United States of America, the State of Illinois, or any governmental body
or agency having lawful jurisdiction, or any authorized representative or agency of any of them;
provided, however, that this Section 19.04 shall not be construed as waiving the right of any
Party to challenge the validity of any such rule, regulation, or law on any basis, including
impairment of this Agreement.
19.05 Illinois Freedom of Information Act
The definition of a "public record" in the Freedom of Information Act (5 ILCS 140/1, et seq.)
("FOIA") includes a "public record that is not in the possession of a public body but is in the
possession of a party with whom the agency has contracted to perform a governmental function
on behalf of the public body and that directly relates to the governmental function and is not
otherwise exempt under this Act." (5 ILCS 140/7(2). Consequently, the Parties shall maintain
and make available to the other Parties, upon request, their public records relating to the
performance of this Agreement in compliance with the requirements of the Local Records Act
(50 ILCS 205/1, et seq.) and FOIA.
19.06 Interpretation; Headings
This Agreement shall be construed and interpreted so as to preserve its validity and
enforceability as a whole. No rule of construction that a document is to be construed against any
of the drafting Parties shall be applicable to this Agreement. Section headings and titles are
descriptive only and do not in any way limit or expand the scope of this Agreement.
19.07 Waiver
The failure of any Party to enforce any section, subsection, term, condition or covenant (collectively
referred to as "provision") of this Agreement shall not be deemed a waiver or limitation of that
Party's right to subsequently enforce and compel strict compliance with such provision and every
other provision of this Agreement. No provision of this Agreement shall be deemed waived by
374534_3
36
any Party, unless the provision to be waived and the circumstances giving rise to such waiver are
set forth specifically in a duly authorized and written waiver of the Party charged with such
waiver. No waiver by either Evanston or MG -N of any provision of this Agreement shall be
deemed or construed as a waiver of any other provision of this Agreement, nor shall any waiver
of any breach be deemed to constitute a waiver of any subsequent breach whether of the same or
a different provision of this Agreement.
19.08 No Individual or Personal Liability
The Parties agree that the actions taken in regard to and the representations made by each
respective Party in this Agreement and by their respective corporate authorities have not
been taken or made in anyone's individual capacity and no mayor/president, board member,
council member, official, officer, employee, volunteer or representative of any Party will
incur personal liability in conjunction with this Agreement.
19.09 No Third Party Beneficiaries
This Agreement is not intended to benefit any person, entity or municipality not a Party to
this Agreement, and no other person, entity or municipality shall be entitled to be treated as
beneficiary of this Agreement. This Agreement is not intended to nor does it create any third
party beneficiary or other rights in any third person or party, including, but not limited to,
any agent, contractor, subcontractor, consultant, volunteer or other representative of any Party
hereto. No agent, employee, contractor, subcontractor, consultant, volunteer or other
representative of the Parties hereto w i 11 be deemed an agent, employee, contractor,
subcontractor, consultant, volunteer or other representative of any other Party hereto.
19.10 Amendments
No amendment to this Agreement shall be effective until it is reduced to writing in an addendum and
approved by the corporate authorities of the Parties. All addenda shall be executed by an authorized
official of each Party. If any govemmental agency with regulatory authority enacts new rules or
regulations or new nationally recognized water system engineering requirements are adopted that
require the method of water production or any components of the infrastructure used for the delivery
374534_3 37
of water under this Agreement to be changed or modified, the Parties agree to negotiate an addendum
to this Agreement that addresses the construction and operation of the required water system
improvements to the Evanston Water Utility and/or the MG -N Water System, the cost allocation of
such improvements among the Parties and the financing of such improvements.
19.11 Assignment
Except as set forth in Section 15 (MG -N Option to Create a JAWA or a Water Commission;
Assignment), no Party shall assign, sublet, sell or transfer its interest in this Agreement or any of
its rights or obligations under this Agreement without the prior written, mutual consent of the
other Parties. The terms and conditions of this Agreement shall be binding upon and shall inure
to the benefit of the Parties hereto and their respective successors and assigns.
19.12 Notice
Except as otherwise provided in this Agreement, all notices and other communications in
connection with this Agreement shall be in writing and deemed to be given on the date of
mailing if sent by certified mail, return receipt requested and deposited in the U.S. Mail, postage
prepaid, or may be delivered by messenger delivery, or overnight express mail, or personal
delivery, or via facsimile, or via electronic interne mail ("e-mail") to the current mailing
address(es) or email address(es) of the Parties' principal administrative offices, addressed to the
Mayor/Village President or the City Administrator/City Manager/Village Manager. Facsimile
notices shall be deemed valid only to the extent that they are (a) actually received by the
individual to whom addressed and (b) followed by delivery of actual notice in the manner
described in either (i), (ii), or (iii) above within three (3) business days thereafter at the
appropriate address set forth below. E-mail notices shall be deemed valid only to the extent that
they are (a) opened by the recipient on a business day at the address set forth below, and (b)
followed by delivery of actual notice in the manner described in either (i), (ii), or (iii) above
within three (3) business days thereafter at the appropriate address set forth below. Unless
otherwise provided in this Agreement, notices shall be deemed received after the first to occur
of (a) the date of actual receipt; or (b) the date that is one (1) business day after deposit with an
374534_3
38
overnight courier as evidenced by a receipt], of deposit; or (b) the date that is three (3) business
days after deposit in the U.S. mail, as evidenced by a return receipt. By notice complying with
the requirements of this Section, each Party to this Agreement shall have the right to change
the address or the addressee, or both, for all future notices and communications to them, but no
notice of a change of addressee or address shall be effective until actually received.
Notices and communications shall be addressed to, and delivered at, the following addresses,
unless otherwise directed by the Parties:
If for City of Evanston: With copy to: Corporation Counsel (same address
as City Manager)
City Manager
Evanston Civic Center
2100 Ridge Avenue
Evanston, Illinois 60201
Phone:
Fax:
Email:
If for Village of Morton Grove:
Village Administrator
Richard T. Flickinger Municipal Center
Village of Morton Grove
6101 Capulina Avenue
Morton Grove Illinois 60053
Phone: (847) 663-3001
Fax: (847)370-1649
Email: business email address
If For Village of Niles:
Village Manager
Village of Niles
1000 Civic Center Drive
Niles, Illinois 60714
Phone: (847) 588-8010
Fax: (847) 588-8051
Email: business email address
Director
Public Works Agency
555 Lincoln Street
Evanston, Illinois 60201
Phone:
Fax:
Email:
With copy to:
Corporation Counsel (same
Administrator)
Director, Public Works
Village of Morton Grove
7840 Nagle Avenue
Morton Grove Illinois 60053
Phone: 847-470-5235
Fax: 847-965-9511
Email: business email address
address as Village
Corporation Counsel (same address as Village
Manager)
Public Services Director
Village of Niles
6849 West Touhy Avenue
Niles, Illinois 60714
Phone: 847-588-7900
Fax: 847-588-7950
Email: mja@vniles.com
374534_3 39
16
By notice with the foregoing requirements of this Section 19.12, the Parties shall have the right
to change the addresses for all future notices and communications to itself, but no notice of such
a change shall be effective until actually received.
19.13 Severability
In the event any term, provision or condition of this Agreement is held invalid by a court of
competent jurisdiction, such invalidity shall not affect other terms, p r o v i s i o n s or
conditions of this Agreement which can be given effect without the invalid term, provision or
condition. To this extent and purpose, the terms, provisions and conditions of this Agreement
are declared severable. If any part of this Agreement is adjudged invalid, such adjudication shall
not affect the validity of this Agreement as a whole or of any other part.
19.14 No Separate Legal Entity; No John Venture or Partnership or Agency
This Agreement establishes a cooperative intergovernmental undertaking, but the Parties do
not intend to create a new or separate legal entity by entering into this Agreement. This
Agreement does not establish or create a joint venture or partnership between the Parties, and
no Party shall be responsible for the liabilities and debts of the other Parties hereto. No Party
shall be deemed to be the agent, employee, or representative of any other Party.
19.15 Independent Sovereign Status
The Parties to this Agreement are independent, sovereign units of local government and no Party
shall exercise control over either the performance of any other Party or the employees of any
other Party.
19.16 Effective Date
The Effective Date of this Agreement shall be the date that the last authorized signatory signs
and dates this Agreement, which date shall be inserted on the first page of this Agreement. This
Agreement shall become effective only in the event the corporate authorities of each Party
approves this Agreement
374534_3
40
19.17 Authorization
In accordance with applicable state laws, this Agreement was approved by each Party as
follows:
A. The adoption of Ordinance -0-17 by the Mayor and City Council of Evanston on
the 13th day of February, 2017.
B. The passage of Resolution Number 17-03 by the Village President and Board of
Trustees of the Village of Morton Grove on the 23rd day of January 2017.
C. The passage of Resolution Number by the Village President and Board of
Trustees of the Village of Niles on the 24th day of January 2017.
19.18 Counterparts
This Agreement may be executed in counterparts (including facsimile signatures), each of which
shall be deemed to be an original and all of which shall constitute one and the same Agreement.
19.19 Exhibits
In the event of a conflict between any Exhibit attached hereto and the text of this
Agreement, the text of this Agreement shall control. The following Exhibits are attached to this
Agreement and made a part hereof:
A. Group Exhibit "A": Illustrative Example of "True -Up" Process comprised of Pages
A-1 through A-7 (Page A-1: Morton Grove Niles Water Supply Quantity Rate True Up
Calculation for Service Year 2016; Page A-2: Morton Grove - Niles Water Supply
Estimated Quantity Rate for Service Year 2016 Based on FY 2014 Audited Information;
Page A-3: 2014 Audited Information, City of Evanston, Illinois, Water Fund —
Operations and Maintenance Account, Schedule of Revenues, Expenditures, and Changes
in Unreserved Fund Balance — Budget and Actual for the FY ended December 31, 2014
with Comparative Totals for FY ended December 31, 2013 (Page 157); Page A-4:
Morton Grove -Niles Water Supply True Up Quantity Rate for Service Year 2016 Based
on FY 2015 Audited Information; Page A-5: 2015 Audited Information, City of
Evanston, Illinois, Water Fund — Schedule of Revenues, Expenditures, and Changes in
Net Position — Budget and Actual for the FY ended December 31, 2015 (Page 123); Page
374534_3
41
374534_3
A-6: Calculation of Distribution Expenses Allocated to MG -N; Page A-7: Annual
Pumpage (MG) (Water and Sewer 2015 Annual Report, Page 18).
B. Group Exhibit "B": Example of Rate Calculation for MG -N Water Rate for Service
Year 2017 Based on Evanston Audited Information for Fiscal Year 2015 comprised of
Pages B-1 through B-21 (Pages B-1 and B-2: Example of Rate Calculation for MG -N
Water Supply Prepared on 12/14/2016 by Dave Stoneback, Morton Grove - Niles Water
Supply Rate Calculation for Service Year 2017, Based on FY 2015 Actual Information;
Pages B-3 to B-12: Evanston Water Utility Component Sheets, Table B-1 dated
6/30/2016 (Reproduction Cost New Less Depreciation As Of December 31, 2015, Pages
1 through 10 of Burns & McDonnell Water Works Properties Valuation); Page B-13:
Table B-2 dated 6/30/2016 (Reproduction Cost New Less Depreciation As Of December
31, 2015, Burns & McDonnell Water Works Properties Valuation); B-14: Table B-3
dated 6/30/2016 (Original Cost New Less Depreciation As Of December 31, 2015, Burns
& McDonnell Water Works Properties Valuation); Page B-15: Table B-4 dated
6/30/2016 (OCLD and RCNLD At December 31, 2015, Burns & McDonnell Water
Works Properties Valuation); Page B-16: IDNR Allocations as of November 2011; Page
B-17: 2015 Audited Information, City of Evanston, Illinois, Notes to the Financial
Statements for the FY ended December 31, 2015 (Page 40); Page B-18: Evanston
Audited Information, City of Evanston, Schedule of Fixed Assets and Depreciation, Year
ended December 31, 2014; Page B-19: Annual Pumpage, 2015 Monthly Pumpage (MG)
and 2015 Average Day Pumpage (MGD)(Water and Sewer 2014 Annual Report)(Page
17); Page B-20: 2015 Audited Information, City of Evanston, Illinois, Water Fund —
Schedule of Revenues, Expenditures, and Changes in Net Position — Budget and Actual
for the FY ended December 31, 2015 (Page 123); Page B-21: Evanston Distribution
System, Calculation of Percent of System Allocated to MG -N, Calculation of
Depreciation Charges.
C. Group Exhibit "C": Depreciation Rates comprised of Page C-1: Depreciation Rates
(Classes of Plant included: Source of Supply, Pumping Plant, Treatment Plant, Water
Plant and Transmission)
42
D. Exhibit "D": City of Evanston Ordinance -0-17 (Approval of Water Supply
Agreement Between the City of Evanston, the Village of Morton Grove and the Village
of Niles)
E. Exhibit "E": Village of Morton Grove Resolution Number 17-03 (Approval of Water
Supply Agreement Between the City of Evanston, the Village of Morton Grove and the
Village of Niles)
F. Exhibit "F": Village of Niles Resolution Number _ (Approval of Water Supply
Agreement Between the City of Evanston, the Village of Morton Grove and the Village
of Niles)
IN WITNESS WHEREOF, this Agreement was executed on behalf of the Parties
through their authorized representatives, after all duly required corporate action was taken, as set
forth below on the signature pages.
374534_3
SIGNATURE PAGES TO FOLLOW
43
SIGNATURE PAGE FOR
CITY OF EVANSTON
IN WITNESS WHEREOF, the below authorized officials of the City of Evanston
signed this Agreement pursuant to legal authorization granted to him/her under Article VII,
Section 10 of the 1970 Illinois Constitution, the Intergovernmental Cooperation Act (5 ILCS
220/1 et seq.) and the corporate approval granted by passage of Ordinance -0-17 by the
Corporate Authorities of the City of Evanston.
Attest:
By:
Name: Rodney Greene
City Clerk, City of Evanston
Date: February , 2017
374534_3
44
City of Evanston
By:
Name: Elizabeth B. Tisdahl
Mayor, City of Evanston
Date: February 2017.
Approved as to form and legality:
By:
W. Grant Farrar, Corporation Counsel
SIGNATURE PAGE FOR
VILLAGE OF MORTON GROVE
IN WITNESS WHEREOF, the below authorized officials of the Village of Morton
Grove have signed this Agreement pursuant to legal authorization granted to him/her under
Article VII, Section 10 of the 1970 Illinois Constitution, the Intergovernmental Cooperation Act
(5 ILCS 220/1 et seq.) and the corporate approval granted by passage of a Resolution by the
Corporate Authorities of the Village of Morton Grove.
Attest:
By:
Name: Connie Travis
Village Clerk, Village of Morton Grove
Date: January 23, 2017
374534_3
45
Village of Morton Grove
By:
Name: Daniel P. DiMaria
Village President, Village of Morton Grove
Date: January 23, 2017.
Approved as to form and legality:
By:
Teresa Hoffman Liston, Village Attorney
SIGNATURE PAGE FOR
VILLAGE OF NILES
IN WITNESS WHEREOF, the below authorized officials of the Village of Niles have
signed this Agreement pursuant to legal authorization granted to him/her under Article VII,
Section 10 of the 1970 Illinois Constitution, the Intergovernmental Cooperation Act (5 ILCS
220/1 et seq.) and the corporate approval granted by passage of a Resolution by the Corporate
Authorities of the Village of Niles.
Attest:
By:
Name: Marlene Victorine
Village Clerk, Village of Niles
Date: , 2017
374534_3
46
Village of Niles
By:
Name: Andrew Przybylo
Mayor, Village of Niles
Date: , 2017.
Approved as to form and legality:
By:
Danielle Grcic, Village Attorney
Group Exhibit A
Illustrative Example of the "True -Up" Process
Pages A-1 through A-7
MORTON GROVE - NILES Water Supply
QUANTITY RATE TRUE UP CALCULATION
FOR SERVICE YEAR 2016
SY 2016 Estimated Quantity Rate $0.3509
SY 2016 True Up Quantity Rate $0.3542
PUMPAGE ORIGINAL ADJUSTED
(1,000 AMOUNT AMOUNT
MONTH YEAR GALLONS) BILLED BILLED DIFFERENCE
JANUARY 2016 192,500 $ 67,548.25 $ 68,183.50 $ 635.25
FEBRUARY 2016 153,242 $ 53,772.62 $ 54,278.32 $ 505.70
MARCH 2016 160,063 $ 56,166.11 $ 56,694.31 $ 528.21
APRIL 2016 150,254 $ 52,724.13 $ 53,219.97 $ 495.84
MAY 2016 153,280 $ 53,785.95 $ 54,291.78 $ 505.82
JUNE 2016 175,514 $ 61,587.86 $ 62,167.06 $ 579.20
JULY 2016 201,753 $ 70,795.13 $ 71,460.91 $ 665.78
AUGUST 2016 226,287 $ 79,404.11 $ 80,150.86 $ 746.75
SEPTEMBER 2016 198,463 $ 69,640.67 $ 70,295.59 $ 654.93
OCTOBER 2016 172,448 $ 60,512.00 $ 61,081.08 $ 569.08
NOVEMBER 2016 161,224 $ 56,573.50 $ 57,105.54 $ 532.04
DECEMBER 2016 145,559 $ 51,076.65 $ 51,557.00 $ 480.34
TOTALS 2,090,587 $ 733,586.98 $ 740,485.92 $ 6,898.94
TOTAL AMOUNT OWED $ 6,898.94
NOTE: Monthly Pumpage amount is not actual - quantitiy used for illustration purposes only
A-1
MORTON GROVE - NILES Water Supply
Estimated Quantity Rate for Service Year 2016
iNsed on FY 2014 Audited Information
Quantity Charge Calculation:
Water Treatment Plant
Actual usage In FY 2014 (San - Dec 2014)
FY 2014 expenses
Northwest Water Commission
MG -N
Evanston
Skokie
Administration
Pumping
Nitration
Water Treatment Quantity Rate = Total Plant Expenses /Total Pumpage (per 1,000gal)
Water Transmission System
Actual pumpage In FY 2015 (1000 pitons)
FY 2015 expenses
Evanston
Skokie
MG -N
Distribution
% allocated to MG -N
WaterTransmisslon Quantity Rate • Water Transmission Expenses / Total Pumpage (per 1,000 gal)
Estinuted Quantity Charge •
TOTAL
1000 Gallon
7,941,653
2.544,132
2,719,978
2,766,348
Total 15,972,111
51,099,395
52,023,601
52,331,616
Total 55,454,612
carnet 50.34
2,719,978
2,766,343
2,544,132
Total 8,030,458
51,444,158
5.23%
575,529
eubSW $0.01
Rate
50.3509 5892,771.27
A-2
2014 Audited Information
CITY OF EVANSTON, ILLINOIS
Water Fund - Operations and Maintenance Account
Schedule of Revenue, Expenditure, and Changes in Unreserved Fund Balance - Budget and Actual
For the Fiscal Year ended December 31, 2014
(With Comparative Totals for One Fiscal Year ended December 31, 2013)
Operating Revenue
Charges for service
Miscellaneous
•
Total Operating Revenues
Operating Expenses Excluding Depreciation
Adminisuadon
Operations
PCMB
Filtration
Distribution
Meter maintenance
Otter
Total Operating Expenses Excluding Depreciation
Operating Income Before Depreciation
Depreciation
Operating Income
Nonopaetng Revenues (Expense)
Interest Income
Change in unrealized depreciation on investments
Interest Expense
Amortization of bond discount and costs
Bond issuance and amortization costs
Net book value of food assets disposed
Total Nonopaating Revenues (Expenses)
Income Before Transfers
Transfers In (Out)
General Fund
Insurance Fund
Total Transfers In (Out)
Net Income
Other Changes ire Unreserved Net Position
Intrafund transfers in (out) - Net Position
reserved - restricted accounts
Increase (Decrease) in Unreserved Net Postterm
Unsaved Na Position
Beginning of year
End of year
-157-
Budget
Actual
Prior Period
Aetuol
S 13,913,400 S
411,316
14,379,362 S 13,903,482
672,370 754,266
14,324,716 15,051,732 14,657,748
933,989
2,355,718
2,740,856
1,425,352
300,760
491,700
1,099,395
2,023,601
2,331,616
1,444,158
280,083
759,985
960,028
2,226,781
2,435,092
1,389,136
249,474
915.196
8,248,375
7,938,838
8,175,707
6,076,341
7.112,894
1,569,014
6,482,041
1,449.757
6,076,341
5.543.880
5,032,284
2,500
17,552
(61,547)
(376,677)
1,129
1,624
(772,649)
12,256
(298,850)
1,129
(19,777)
(60,762)
2,500 (1,190,568)
(366,004)
6,078,841
4,353,312
4,666,280
(3.356,300) (3,369,559) (3,356,300)
(468,492) -
(3,356,300) (3.369,559) (3,356,300)
S��
983,753
1,309.980
6,267,672 (4,290,942)
7,251,425 (2,980,962)
55,120,773 58.101,735
S 62,372,198 $ 55,1204773
A-3
MORTON GROVE - NILES Water Supply
Tru. -up Quaintly Rate for SanteYear 2016
Bordon' , ., I4idltedlMernn.BodC-::.�'
Quantity Charge Calalatlon:
Water Treatment Plant
Actual usage In FY 2015 pan - Dec 2015)
FY 2015 expenses
1000 Gallons
Northwest Water Commission 7,846,900
MG -N 2,090,597
Evanston 2,790,010
Skokie 2,786,870
Total 15514,367
Administration 51,473,336
Pumping 51,752,932
FlItiadon 52,015,362
Total 55,242,632
Water Treatment Quantity Rate = Total Plant Expenses /Total Pumpage (per 1,000 gal) weear 50.34
Water Transmission System
Actual pumpage In FY 2015 )1000 gallons)
Evanston 2,790,010
Skokie 2,786,870
MG -N 2,090,587
Total 7,667,467
FY 2015 expenses Dlstbution 52,395,816
16 allocated to MG -N 5,237E
5125,301
Water Transmission Quantity Rate. Water Transmission Expenses /Total Pumpage (per 1,00D gal) su6mrd 50.02
Actual Quantity Charge a
TOTAL
Rate
503542 5740,482.96
A-4
2015 Audited Information
CITY OF EVANSTON, ILLINOIS
Water Fund
Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2015
Budget Actual
Operating Revenues
Charges for services 5 15,253,000 S 15,005,360
Miscellaneous 506,100 716,246
Total Operating Revenues 15,759,100 15,721,606
Operating Expenses Excluding Depreciation
Administration 1,528,130 (;473;338
Operations
Pumping 2,426,701 1;752,932,
Fihtatioa 2,612,781 2,015,362'"
Distribution 1,724,142 2,395,818
Meter maintenance 194,336 202,921
Other 19,349,100 420,562
Total Operating Expenses Excluding Depreciation 27,835,190 8,260,933
Operating Income (Loss) Before Depreciation (12,076,090) 7,460,673
Depreciation 2,096,633
Operating Income (Logs) (12,076,090) 5,364,040
Non -Operating Revenues (Expenses)
Invesmt nt income 10,000 5,981
Interest Expense (434,254) (390,461)
Net book value of fixed assets disposed 302,700
Total Non -Operating Revenues (Expenses) (424,254) (81,780)
Income (Loss) Before Transfers (12,500,344) 5,282,260
Transfers
Transfers (out) (3,194,053) (3,194,053)
Total Transfers In (Out) (3,194,053) (3,194,053)
Net Income S (15,694,397) 2,088,207
Net Position
Beginning of Year 66,279,631
Change in accounting principle (101,305)
Prior period adjustment (55,806)
Beginning of Year, Restated 66,122,520
End of Year
(See independent auditor's report.)
- 123 -
568,21®,727
A-5
Calculation of Distribution Expenses allocated to MG -N
Total Evanston Distribution System
pipe sixe Length
dia (In) (ft) (In4t)
3 608 1,824
4 6,621 26,484
6 387,032 2,322,192
8 152,754 1,222,032
10 67,658 676,580
12 93,238 1,118,856
14 1,950 27,300
16 33,076 529,216
18 4,389 79,002
20 2,960 59,200
24 45,430 1,090,320
30 8,912 267,360
36 17,405 626,580
42 186 7,812
48 3,568 171,264
825,787 8,226,022
Ponson of Evanston Distribution System Used by MG -N
pipe she Length
dia (In) (ft) (In -ft)
36 7,198 259,128
48 3,568 171,264
10,766 430,392
% In -ft used by M641 of Evanston Total
430,392 /8,226,022 = 5.23%
A-6
Pumping
Annual Pumpage (MG)
_ 75W PYrYha Pug, p. To
US Wale
Your Puree. w Pwpp4 Prpps EwrW.n 8MdJ. kW C. I 746-14
2015 13471433 300255 1362.108 13423635 2.700.010 2,70.000 7045000 aj69ase7
3014 13,415872 239 007 1368.410 13,427.878 2,719.075 2,70845 761.03 20 0941 132
2013 13,05102 24700 14.172.711 13,814.481 3.960271 3.757250 560627
2012 141117037 m 303 15.11040 /4027311 2139 417 9,00.004 8,51656
2011 13,139018 212425 14,152.042 13,6700 201.845 2,50.552 5,002067
2010 14,6840 210.251 14,306100 1468257 2,701.10 3,004054 8.472134
3009 1420367 19361 14.550800 14255333 3,140800 2,129.554 9,379813
2008 14072552 134 09 16,007.147 1003.71 3,142.515 2051,341 5,518720
207 10601391 192066 15,09780 16,771451 3,207422 316711 5.901 246
2005 15272551 18006 13,403 179 15,17461 2 350.558 3226.305 9,04 027
Water and Sewer 2015 Annual Report
18
A-7
Group Exhibit B
Example of Rate Calculation for MG -N Water Rate for Service Year 2017
Based on Evanston Audited Information for Fiscal Year 2015
Pages B-1 through B-21
EXAMPLE OF RATE CALCULATION FOR MG -N WATER SUPPLY
prepared 12/14/2016 by Dave Stoneback
MORTON GROVE - NILES WATER SUPPLY RATE CALULATION FOR
SERVICE YEAR 2017, based on FY 2015 actual information
Return on Rate Base Calculation:
Water Treatment Plant Assets
Original Cost New Less Depreciation
Reproduction Cost New Less Depredation
Total Fair Value Rate Base
Percent allocable to MG -N based on IDNR allocations
Fair Value Rate Base Allocated to MG -N - JAWA
Water Transmission System Assets - Evanston/Skolde/MG-N
Original Cost New Less Depredation
Reproduction Cost New Less Depreciation
Total Fair Value Rate Base
Percent allocable to MG -N based on IDNR allocations
Fair Value Rate Base Allocated to MG -N - JAWA
Water Transmission System Assets - Skokie/MGM only
Original Cost New Less Depredation
Reproduction Cost New Less Depredation
Total Fair Value Rate Base
Percent allocable to MG -N based on IDNR allocations
Fair Value Rate Base Allocated to MG -N - JAWA
Fair Value Rate Base Allocated to MG -N -Total Water Utility
Fair Value Rate Base Annual Return
Total Annual Fair Value Return on Rate Base Charge
Monthly Charge for Fah Value Return on Rate Base
Cost per 2,000pibns tar Falr Value Return on Rate Base
Depredation Cakuladon:
Depreclauon Expense Plant
MG -N percentage IDNR allocations
Amount of Annual Depredation allocated to MG -N
Deprecation Expense Transmission Assets- Evanston/Skokle/MG-N
Percent allocable to MG -N based on IDNR allocations
Amount of Annual Depreciation allocated to MGN
Depredadon Expense Transmission Assets- Skokie/MG-hi only
Percent allocable to MG -N based on IDNR allocations
Amount of Annual Depredation allocated to MG -N
Total Annual Depreckton Charge
Monthly Charge for Depreciation
Cost per tall gallons for Depredation Charge
Page 1 of 2
As of 12/31/2015
$26,511,026
$82,689,439
*332,994
$2,751,468
$58,300
$579,133
Multiplier
0.5
0.5
subtotal
$13,255,513
$41.344,720
554,800,233
13.13%
57,169,011
0.5 *166,497
0.5 $1,375,734
$1,542,231
29.88%
subtotal $460,819
0.5 $29,150
0.5 $289,567
*318,717
44.57%
subtotal $142,052
TOTAL 57,771,881
10.00%
*777,188
$64,766
50.37
51,411,291
13.13%
subtotal $185,303
subtotal
subtotal
$7,937
29.88%
$2,372
$1,476
44.57%
$658
TOTAL *188,332
$15,694
*0.09
B-1
MORTON GROVE - NILES WATER SUPPLY RATE CALULATION FOR
SERVICE YEAR 2017, based on FY 2015 actual Information Page 2 of 2
Quantity Charge Calculation:
Water Treatment Plant
Actual usage in FY 2015 (Jan - Dec 2015)
1000 Gallons
Northwest Water Commission 7,846,900
MG -N 2,090,587
Evanston 2,790,010
Skoke 2,786,870
Total 15,514,367
FY 2015 expenses Administration 51,473,338
Pumping 51,752,932
Filtration $2,015,362
Total 55,241,632
Water Treatment Quantity Rate = Total Plant Expenses /Total Pumpage (per 1,000 gal) subtotal $0.34
WaterTransmisslon System
Actual punpage in FY 2015 (1000 gallons)
Evanston 2,790,010
Skokie 2,788,870
MG -N 4090.587
Total 7,667,467
FY 2015 expenses Distribution $2,395,818
% allocated to MG -N 5.23%
$125,301
Water Transmission Quantity Rate = Water Transmission Expenses / Total Pumpage (per 1,01 subtotal $0.02
Rate
Estimated Quantity Charge It TOTAL $0.3542 $740,482.96
Cost per 1,000 gallons for Fair Value Return on Rate Base
Cost per 1,000 gallons for Deprecladon Charge
Estimated cost per 1,000 getMns for quantity Charge
Total Equlvakat Rate per 1,000 pitons (2017)
$0.37
$0.09
$0.35
MG -N shall not pay or contribute to any portion of the insurance cost relative to Evanston
or the Evanston Water Utility during any Term or Extended Term of this Agreement.
$0.82
B-2
9
a
tEr-
Evanston Water Utility Component Sheets
2E07.0'0
Vag
rt
EEE E
o0g0000000eo0000000oo000000000000o000000o
„P haEEE E
mz
E
Emeoo>„wa„aamemWmowooeomammoomm•aW•• __ •-
As— tilE2g2 err' nzds
re-
a00e
nE'l.'"os$kEo EREEEEEEERa3
n
MAIMIIMEMALIMUra
Mme m-=='GEEE-DEEEEEEEERREEE
000 EiERR EA -RE Eoxe000xEEEo04ARE RIERREREIB
t
e
i
8
ap
1
0
3
n4,4
�g
E "EEF.FOO s:�� EEEgEn.
'nRs[y >3gwEgemmA
;wwa ¢i.
$€A dpd Wpz sani Ka!z}n �Ziil YjY��j'.22 Yl
�£a,40 G611 00Z,.11 INN q;Eitii!dia5
#L inn uPl Gic kxF
vaaaaaasprgaaaasE" RRGSA7B:nGESGSBPPRN-Gss
-ENA4AS;2F,24:143:2SEMEa GGSSta mnnnwE�E s G G3
s
a IllEEERant
ERama�RER�aa
SSSSSaaafi r
9999929 9921 " 989998999999999999999
z = x:zz 9:9999999
Q5s6nCz5S FSF S6 ESS [ E gfi�Q FF F
R6��¢p66p!!!! �J 7� a.a. J!!! W !J!o3a 3
8-3
w
Evanston Water Utility Component Sheets
tn
Is . - a. as.
0
0
46
U6
Kw
nn
000e000000g0000a0000000000v0008eaev00000e
TiRRE.EUsRo8J12.21n1887
naaatjarMa„m^• a
EEria
50o8188===8RRRRaaR88888E8E8"s3=:3E-888--8
meso
0
nll000mTn„
Nmoo
nromulg
ikRFOREEVEWE
"s"MPEFF?EE1„„„«a?R28E1'a HE.8812
8221
s
x
s s
1 lin
a PE888ERmmmmmmmmm2mEEHEE 21R2s===as12R�oo1 -02
8 `a4
t
2
62
a
e�
E
IIS 2E
E 14
¢f eE
€L
`L 10
tgg
itga
3
os
n.5
11$&11
8 SS s O S S S lE
rt
p42` a_;,_Sc aaa__ --aa- a iIIEEi 1E12 `S [
gut
o` 6
L 1
g
9 ¢¢¢S¢SS¢¢SS¢Snnn SnS S -S¢nS
un a uu un o n n an'n 'nannn 22222222
LL
B-4
ol
8g
c
1
1
EHE
a„
€x
w
1
Evanston Water Utility Component Sheets
.n_ egnai
�gs tBYt�o.a
D000"o'oeoodo>6odo66edoo
VaREHEEIEIREEll
^ ^�^-�a�mmr66R
i�
2R�m6
'mg.8R8144M§.
HEHHEEHIEEHUniEEE
EMErIEMIEWRIEME
.2a_I QSn M EE6MtAwnllsriE
Rai
E1s`am^1"s§a"g
gagetimwggT
E'o wg
e =g F LO Pc
YBW�"�Eo EW W"LL
"I aa? ag‹mrr",7
9I9991199/1 99119 1119
9 zzzzzzzzz �ezzzzzizzzz�e
Imm2a aaa
B-5
ION AS OF DECEMBER
I- o0
EL
'3
rc
Evanston Water Utility Component Sheets
wy
EE
tali ..EEsn
oSSSPoiSsai
x 0000000000Q0000«ooeooeo=$
"EsEEEsaE`asm "EE
ei
. ............... .....
ssss��€a�osssss�s�=s�o=
11111111111111M-1110
REEEEEEEE$E"°O000OUO$
€IOWUJ€BUJ€W tglIWI= W`
E?EEEERP*Uakt8E-`E^a'
000EOq
itEE N0 bd
MdihEREHNIgiP
-kk
SsRRg?:ara�s841
'e ag
8
EtIEVEEEEEwwDEEES=rM6"e EEwE C
B-6
U
Evanston Water Utility Component Sheets
8nm:s3.krEkkEEm.E3
sn MAg.g.EEanAEEE
ffiRRUE.2 waX22Y.4 ail8,R,, n ct;ry b9
v000va000v000"ooeeOooas0000a$000vogooev000
mai msggiMEIVairafliKE
gngigHEU. ii: "1.2
m eR
rvnnn ry n ry NNNNNNrirv6riNNNNNN
FUFF asseesasEFFEEss PMEFEEPEF0WHEFA
tt tin:I, 6oa
0
mgrlgsr"
'm'E;R em
Rin,^btS
oaE?egrEIMMR
ngm£gaE
0 Oo Qy
S gE F0 ig z N 2.E2 F Q_m W
i"ea`pmne2n; FBG �+i 'a ee4§55m pb
Epie2b h eKa5R2 EgiV E' s2i ell eiio
se510 tRgt2it0M= § bxxi`9F ;iba og�F
020Ma�LLuBusx, � k'k' B G�x x x'-"gg gp5k
ligk
a$mmeRi22gb„28822Ett2TS CRRIZIRKRh222 RRRRR.'::3
EREasemasmmR�PamRRe$a"R�"s�"Rx
_ -- -
tai
Nun
666aa616666666616666666666aa66616n6661a
Bt:
B-7
wa
,14 ff
F 8
go
8
'X1
o"
PS 2
Evanston Water Utility Component Sheets
gi;'fl E:«g£SmB£ o
ER
$E
edad0000vooeoe0000degoe^e00000<000008d000000
`�£`smo_mano
Ng^^s'se amzg9n4
.- Sffi�^'^^ '�6
m6 _ 8mm,��
ryg8r4rninr4nNo«sXx£$«nidrv«ninid«n«c4e4nit4rycvdot rn
goo$a„smgsmoogsmmsoImgaaa£gmoo$$$$$$
2..22222220220-.0-2.2212."02121mo mmmomm
om�:A
aE
'EE^ssmsc
„ m 22
=s' sa£gongm o£Em W UZZE`Ukc E
s a3unul u�y-e'. �i9�� 0 3�Rsp
ogpp �EWLLR25i 8 �OiISou6~
segskE
ai g Hv°gp o3„._i� 7S'<Y iz�ggO
€�s+xo wm yi4 QZ SS eg �uE�u L" a¢z� RAS E P $
u'mi'420W1: `�„a§o11 swS!�mf gowu5^ 33 E'3 d }ry ce
4a 3:�i£E�m c ET, pp
$gammaRrvr££EEE a tel gs
l 6a
Ia€= S-
Emm
ra
m
rc
S g
Et
Q
X s e
z6
80 sk
ai
9E
L
6
mEEEm££EEEEEEEE s"EkEEE $
8
866g6j
3222323
EEEEEEE
$
C C BE
R S SS
y�I£gEgg$ msssBEIEE
sgsp.
33333333333muhmv!333333333���3 333333
WW
EEEEEEEEEEEEEEEEEEEEEEEE E EEEEEE
B-8
0
6
B
0
1
a
OEC$^3 E
$e
rs^
Evanston Water Utility Component Sheets
kiikEEcE
r
OCO000oe000'000o00000vooeovoooo0000e000000
nme " Fans
;;nnN;,n««NrMM$daomH°"d,m !A85P7IPME!&
PEssassaaogaE"seaEm"saaamnsseo EE0E "0esmE
"" r^" " d"r_ "
s
a a^
8p
4
0
S
0
0 03
EREWmawdEEFEEEEFFEEg="ss"sEE.
oE"aeosgoososoa
g 8 C 888 C
S S S SSS S S
imamsgw1gmmgOg$gggwggggFw`gsgggigses
4 4g S,gS,aaa'SSS ANI S5S.'aa?aa
waw Mw��8 �W���i WWII W�W�W�W�I���si
S�� q
AFF u i#.!-FArFS I FiZ F V X{ W EO
B-9
xms8s3 EAUR
Evanston Water Utility Component Sheets
sstodadoodcmo`000000`oom$'000g$00000
3^
troulian
OE 6EEER n n« 'somsoEEEEEEEE08E8
sasesLsssEsaoOOasasssmmseem
AFS
EIEEPEEIEEEEEEEEMEEEEEE
mmmnmKmmmnmmmnnnmmmmmnmm.mm
nim unEEEEEEE.ENCEEEsEEE EmaX
�FRa^ptasas8naaataail ormam
P.
n� hm
�'g'sam�' 4 Fs g
R yyg 5;05 s s rca
�NPI RAWAl"sooas6`ala
�s"si
3
66166aa6q666666a6666660
fi
B-10
0
0B
co
ak
1pn
Evanston Water Utility Component Sheets
EEEEEEER
fr gam
1
18'ddoe``da'!E5E- EIMEEMEEMEEF E”E!
mAn Eaom:€am r.Eg:SEaEEIEE
dgel �aooao"spsgaReim� mg.,,muu 4
sa�ssssogs�ossaosossss�oss��ssss�ss�
w n a o °°° o at-38E888E88 08.8n
o
3mf38v83.,vm33�$3.,IHEIEHELRAMAI gm„�85m3m�
8
P
A
we
of
4'€
og8ti
ippd
g §RE:p.gWB
m zm-
EillMagE
aREE
088„`+,cm3'yS$Sn83m'g8SREEEEEEPEEE m«A8:
m8$wmRRRaga&w
a,cc�ct',�.”"c
M4MMrnflflrnnflnMflM
REEREEREAREEREEEREEREAREEEREEREREEER
B-11
rcT
L
f
fi
1
.655
ACC
S80
I!!
8'
ERE
Evanston Water Utility Component Sheets
61
se
B-12
O
s
mn
Evanston Water Utility Component Sheets
TABLE B-2
REPRODUCTION COST NEW LESS DEPRECIATION DECEMBER 31, 2015
CITY OF EVANSTON
RCN Balance
Additions at Retirements at 12/31/2015
cost at RCN Adjusted for
RCN Balance 12/31/2014 12/31/2014 to Additions & Depreciation RCNLD at
at 12/31/2015 to12/31/2015 12/31/2015 Retirements at 12/31/2015 12/31/2015
($) ($) ($) ($) ($) ($)
RCNLD at 12/31/2015 Source of Supply 27367,429 0 785,326 26,582,103 12,503,431 14,078,673
with additions and Pumping Plant 39,293,559148,373 111,646 39,330,285 22,485,209 16,845,076
retirements Treatment Plant 92,558,317 1,285499 771,409 93,072,407 49,261,347 43,811,060
Water Plant 17,413,276 31324 0 17,444,599 9,489,970 7,954,630
Transmission 7,010,818 0 0 7,010,818 3,680,217 3,330,600
TOTAL 183,643,399 1,465,196 1,668,381 183,440,213 97,420,174 86,020,039
RCN Balance
Additions at Retirements at 12/31/2016
cost at RCN Adjusted for
RCN Balance 12/31/2015 12/31/2015 to Additions & Depreciation RCNLD at
at 12/31/2016 to12/31/2018 12/31/2016 Retirements at 12/31/2016 12/31/2016
($) ($) ($) ($) ($) ($)
RCNLD at 12/31/2016 Source of Supply 27,257,448 1,677,900 0 28,935,348 13,155,589 15,779,759
with additions and Pumping Plant 40,875,695 0 0 40,875,695 23,931,632 16,944,063
retirements Treatment Plant 95,784,139 636,064 168,800 96,251,404 52,052,500 44,198,904
Water Plant 17,887,797 0 0 17,887,797 9,967,487 7,920,310
Transmission 7,188,934 0 0 7,188,934 3,839,986 3,348,949
TOTAL 188,994,013 2,313,964 168,800 191,139,178 102,947,194 88,191,984
RCN Balance
Additions at Retirements at 12/31/2017
cost at RCN Adjusted for
RCN Balance 12/31/2016 12/31/2016 to Additions & Depreciation RCNLD at
at 12/31/2017 to12/31/2017 12/31/2017 Retirements at 12/31/2017 12/31/2017
($) ($) ($) ($) ($) ($)
RCNLD at 12/31/2017 Source of Supply 29,669,134 200,000 0 29,869,134 13,931,324 15,937,810
with additions and Pumping Plant 42,487,911 525,000 0 43,012,911 25,516,703 17,496,208
retirements Treatment Plant 99,079,806 1,335,000 0 100,414,806 54,972,941 45,441,866
Water Plant 18,341,422 0 0 18,341,422 10,455,496 7,885,926
Transmission 7,371,242 0 0 7,371,242 4,005,316 3,365,927
TOTAL 196,949,516 2,060,000 0 199,009,516 108,881,780 90,127,736
RCN Balance
Additions at Retirements at 12/31/2018
cost at RCN Adjusted for
RCN Balance 12/31/2017 12/31/2017 to Additions & Depreciation RCNLD at
at 12/31/2018 to12/31/2018 12/31/2018 Retirements at 12/31/2018 12/31/2018
($) (5) (5) (5) (5) (5)
RCNLD at 12/31/2018 Source of Supply 30,627,679 0 0 30,627,679 14,755,573 15,872,107
with additions and Pumping Plant 44,747,558 0 0 44,747,558 27,183,273 17,564,286
retirements Treatment Plant 103,315,263 20,000,000 7,581,883 115,733,380 52,455,234 63,278,146
Water Plant 18,807,214 0 0 18,807,214 10,961,959 7,845,255
Transmission 7,558,440 0 0 7,558,440 4,176,708 3,381,731
TOTAL 205,056,155 20,000,000 7,581,883 217,474,272 109,532,747 107,941,524
Bums McDonnell Engineering Company B-13
City of Evanston
Kansas City, Missouri 6/30/2016 Water Works Properties Valuation
Evanston Water Utility Component Sheets
TABLE63
ORIGINAL 005T 1E850EPPECIATIBN DECEMBER 31.2015
CITY06E065070N
(A) 00 (CI (5) (E) IF) (2) (H) 15 (n 04
AdOBm s Reunnx5F ABjted Depec0sn
OX%m1000 Original Cost 049I,.50o.1 p15ml Lee Depredation on pped.m on larool Sn on en (0) Depreciation
Balance el 2[33)20,56 2/29/2145 to Belmoe el 00 Barite (A12082005 to 19)20120E 1/14/150518 Mamest
228)2005111 1201/019 1241/2014 1251/014 2062805051 1251)2018 181231/2114 1051)2014 12933014
(5) 0) (S) (0) (5) (0) Idj (8) (5) (5)
0015X1231/4214 28.2w of 5.242 4.211400 1,200.677 75.70 5,4Zf,200 1,515.]51 457,233 70,488 44,8]0 1,D5,5]0
Pumping Plant 7,543,074 2542,5110 614,306 0272,100 3.000751 1.367004 201,456 390.514
Treatment PYM15.10,844 8. "4.560 tOT,mB 25,470,388 5,003,000 2.077,045 985,10 411,142 7,700.E6'/
TOTAL 26,864,217 12237810 1,827974 37.174340 595187 450,816 70,140 840.337 12,904,514
CCL0 a1
1231/2014
5.0.3.]18
14.712.018
Mlvw
Original Coin 9615854 )280001x07 097.1 Cog 0.pseo04n Depredation on Donation en MIm05)7' 065IRY TBA)
Banco et 1/1/01518 1)1/01518 5.8nce el Balsa el OC1/1=15toB rents Oeple5eWn Depredation on DeW4
g6n el 0010 01
2/31=14 12021
105 1210050 12/31/015 1201/2014 12014015 1/10015 on Addams R.8lemenb 12010015 1251/015
(5) 4 IA (5) 53) 0)) (1) 14 IS) (5) (5)
OCLD en 121312015 Seam e1565P85.22,200 1)505 5,CU5,781 3,00,5)0 55364 51377 0 2,3172
1,508,501 07,700
Pooping Plant 0173,100 145.321,55,161 005% 4.108.470 160314 10,677 1,X3 40 4545213 5,011547
Tram( 0800 25,478,305 1255,4409 254.170 15540,715 7,769397 401,05 47.072 10,01 2207 8111875 15800.890
81080e Plant 4540517 31,524 0 4,5]1,@1 1.157037 117,143 D 1,558 0 1,21,521 3,099.399
Transmission
Asset 0401 246,521 0 0 245.521 74341 2510 0 0 0 77,051 171.470
Asset 0524 13,00 0 0 13.800 5,51 173 0 0 0 5,025 7.877
6se1052005.09 0 30,06 01,020 1,040 0 0 0 04,015 211047
.45
TOTAL 42.073,744 1510 79030 42,819,104 1529,773 740,698 118,076 1428 509 15905,755 26,02921
Mlom
06p'a)Cost Adams Retirements 0,101,01 Cos Depredation Depacla8n on Cege0058 en Mln01g2 144 192 ye Total
Balm el 50ID108 1/10016 to Rada 41 Balance at OD 1/12010 to R0lemeo0s DepleWO'vn 0548010nen Oemc0bn et WM)al
(10)0015 12312016 12310010 12010010 11010010 12510016 1)1/016 nn anon. Mehemet 1201/016 12012016
OM 4) P) IS) m (51 IA (5) (0) (5) (5)
0E1541291/2015 5e0m M Supply 5.005741 18]]900 0 0,008,691 20`8,002 74.10 0 5311 20.7200
02555054 1885) S,%5,WJ 0 0,685300 430,312 169,514 0 0 0 4,515827 4.40573
Treatment Plant 9.E43,715 93004047,]70 5111.075 411217 15930 8,428 112 0%
85 15,500,92
Afar Pam 4,371,921 0 0 24271121 1272,59 117,143 0 0 0
Tammalon 0 1p0,865 x02015
Amen/ 400 240.521 0 0 245.521 77.501 2,510 0 75342 155.959
Amato 524 13,040 16600 .0
55 19 0 5
SW3704
N 0528 20066 0 0,0 0 x95,06 64,43 2,90 0 0 0 50
07,009 205.957
3,0
TOTAL 42,808,154 2214 0 45027,00 15,005,]06 772)% 1602/ 14,19 812 10,65o,45 25974,016
Mina
(MOW Ca MM3ure Repmm00 3101161064 Depreciation OepleA4n on 2.pretletion on MMus 10 ye Plus 1011 Tffi)
Balance at 1/100175. 331/01718 Belame el same et 00101/01701 80685001,5 Deproolata Madam, On 51Re0000 el 0010.)
12010010 231/2017 1201/015 125100/7 1291/2016 1231/017 1/10017 en Addams 8e8505.08 1201/017 12/41/017
(SI 14) (5) 15) dj) 19 13) If) (5) (SI 61
OCLO et12!1001)Puroof supply iW,IXG 0 6003,41 2072.09 75,40 0 1,110 4
2,1402 4,215,434
0u551)55 P8M 8,985.400 00,600,40' 4515,627 170016 0 0)51 0 4,40,01 0,203,64
Ta60ne06Pert 19,081,'/)9 1 335 MG e00,42.770 040 u7 454.044 0 11,414 0 0,822.170 18,01040
40145 Plant 4,471.501 0 0 4.371.821 1,]0,40 117.143 0 0 0 1,4009 2085,112
Tarembe00
04010400 248,521 0 0 248521 70,567 2,510 0 0 0 82772 14,010
08000524 188005 13.40 0,00 174 0 0 0 0,260 7,532
Asset 0526 20,40 0 0 24,508 07,009 2,005 0 0 0,p)0 20504
TOTAL 45727.48 2,04,000 0 %,5080 7,0 1540.84 815.307 0 17275 0 1710.40 20811]00
Mims
054nl Cast Additions 80Srem.ne 0516,40 cod Opletl.85 Depredation on 0. 0000n en Minus 12n 00010 y) Tam
Sara 1/1 /20181e 1901625 580001 5.0,c..( OD 140014 to Rmeme105 CepnWOm Retirements
85 CepM0m01M.
n.1 00
231/2017 02010015 12033016 1241/010 10310017 12/310018 1/1008 Bn0440nna .81455e548 12310018 12010010
Del 13) (5) (5) 181 (5) (5) 14) (5) (5) (0)
0010 al 12312013 Smoot 8Supply 6,49,41 0 8,!88,41 2,199.24 76,400 0 0 2234,47 4058015
02554I189 085 9190400 0 500,49 175015 0 4.000,14 5,071,262
Tallman( 080 25382,570 20000.023 11950 8,50523 8125.170 77492 11048 171.90 100 8.44,47 3584.578
We81 PAM 4271,121 0 0 4,571330 154,89 117,143 0 0 0 1,62503 2747.E
Transmission
Asset 044 248,521 0 248521 83733 2,510 0 0 0 84.42 163,059
540e10529 12,40 0 0 13.600 0,88 175 O 0 0 6,441 7,05
4300/528 30,040 0 0 2'046 09102,50 0 0 0 02,08 29076
TOTAL %7,0
878 20,C 0000 110,E 06057562 17,445,570 1,14243 11950 17140 1,022 10208,495 89,40,157
(1)09154) Cast tem prior Table 3 at 241/2005 tepre adjustment.
0)Fmm Evmeen Te8e4', Deprecation on CC Balance 248045.
Buns 01000558)1 Engineering Compan7
Kass C9y, Mewun
8/3011014
B-14
CXye5Evambn
Wllee Works Properties Velwbn
10
IX
LU
CO
Z
IL
0
!01 0-
\!
k) a)
| \0 \
w /cr ( CO
/ $R
§
Evanston Water Utility Component Sheets
0.1 CO
Ce
CO 0 ITC N
cn
aL
co
1.6
cdoo0.1
to
12
\ce
0
0
k�
)<
co(
cc
cc
CO CO 0
}\}§\
10 N Ca
o co o c0
ea m r- -
co
co
co
co\
To
CO
CC
CO
111
LLJ
CO
/
ce
o
0
�\(
• o
• 9.
CO 0
01 00
co
0 to
• ca
co cc
re
o
Cre
eci
Fair Value Rate Base
ES
OD
CNI
INDR Allocations as of Novemb
lion of gallons per day) !
E
vi
4
m
g
q
00
m
q
q
N
O
0
N
a
o
m
4
y
q
m
f
q
e
2
_nmmob,
Pim
id
m 20
00
N
w
0222
m
'q
?
ZEE'
20
co
ZIZ
00w
N
N
m
a
0
N
m
m
q
O
2
M
a
m
2
N
00
N
EEE
o
,K
Co
m
N
ofn
q
b
n
m
O
O
o
O
m
m
o
5T;EEET:'3
Nem
EU;
qmq
o
E
gotmm
Pi2m
xo
E
9
N
Ilmj
gmgm
g
m
E
'm
m
�;
$
mm
E
$
qo
!
a
S
9
N
m<
m
e
mEE'i
.,
EE
so
n
Et!
co
s
EI00:
2015 Audited Information
CITY OF EVANSTOt4, ILLINOIS
Neter pthe Randal Statements
For lbcFiscal Year ended Deeanber31,2015
NOTES, CAPITAL ASSETS-Csagnaed
A. 4aplbd Asset Mildly- Cea W 0ed
lkidaiaanypa
Capital mu, net being dewclaw&
Land
Commotion is pea
Antwan
'reed Capita Amen, nen being Dapredaled
Capital assets. being did:
Land bgmvenats
BdWinpaud improvements
LewLold Imprevmma
Plant
Trametada, mad ditmiutioa system
Sewer system and wdnpamd Baa
imenyjble amts
9001100/0
pi&sg maws
TOW Capitol Amts being DepmdaedAmadad
Lm seaowlaed damecidardiumbladon for
Land improvements
Buildiags and improvements
Lambdd impovmams
Thar
T ennebsiw end dba*imbnsystem
Sawa system sed nada00mtd ling
laungabla assets
Eqldrant
Prating soden
Tad Accumulated DepeecWlwJAmatmdoe
Tota Capita Amts bdng DepaimedIAmortb d, Nes
Govanmmal Activities rap1W Asea, Net S 335.03.351 S
Addirbats Mikan Ending
5 4,644,510 S - S S 4444410
2.463.973 4,741,009 1,667.201 3,537,601
359,752 - - 359,752
7,467,335 4,741.809 1467.281 10441,863
3.925,463
77,282,216
301,052
42,176,651
49,257,816
249.439,877
509.134
3,086,113
1.698,308
985.601
•
1,433,872
4,215369
1,295,207
750,424
17,284
160.720
•
924461
340,755
427,680,330
1,631,955
22,197412
302,753
15,311,894
6,934,574
49389.233
315,774
2.373535
616384
4,911.144
77.282.216
304.052
42,605,862
53,473,085
250,735454
120,258
2.837.642
1,859.021
8,928,457 1.265.416 435,343,371
141,290
2,462,535
1.411,291'
636,142
3,104,364
106,182
100,425
124,354
1.773.245
▪ 24,660,147
20.222 212,531
865,721 15.657,464
▪ 7,570.716
33,993497
421,956
314,421 2,159432
811331
99344314 8,386,583 1200,371 106530426
3E1336416 541874 65.045 321,812,845
5,283,683 8 1.732,326 5 339354,708
-40-
B-17
Evanston Audited Information
a �
888
511grg
1
5
B-18
Annual Pumage
2015 Monthly Pumpage (MG)
Lake Wash Net Finished
Water Water Raw Water Water I
Month Pumpege Recycled Mimpsge Pumpage Evanston
Jan -15 1,105.958 15.243 1,121.201 1,091.884 219.493
Feb -15 993.808 14.742 1,008.350 979.494 197.429
Mar -15 1,051.862 14.352 1,068.214 1,037.608 214.803
Apr -15 1,038.910 13.795 1,052.705 1,094.833 254.304
May -15 1,170.487 21.359 1,191.845 1,131.353 218.660
Jun -16 1,134.827 15.467 1,150.294 1,122.625 220.010
Jul -15 1,241.284 19.130 1,280.394 1,231.148 244.142
Aug -16 1,345.617 27.227 1,372844 1,328.781 244.260
Sep -15 1,201.943 21.155 1,229.098 1,187.660 235.267
Oct -15 1,122.857 15.050 1,137.907 1,113.129 224.288
Nov -15 1,026.820 16.823 1,043.843 1,013.838 275.273
Deo -15 1,037.870 5.942 1,043.812 1,093.855 244.083
Total 13,471.123 200.285 13/72.108 13,423.806 2,790.010
2015 Average Day Pumpage (MGD)
Lake Wald Net Finished
Water Water Raw Water Water I
Month Pwnpape• Recycled Pwnpage Pumpage Evanston
Jen -15 35.678 0.492 38.168 35.218 7.080
Feb -15 35.465 0.527 89.013 34.982 7.051
Mar -15 34.400 0.453 34.394 33471 6129
Apr -15 33.939 0.460 35.090 38.494 8.477
May -15 37.758. 0.445 33.958 38.495 6.989
Jun -15 37.828 0.518 38.343 37.421 7.334
Jul -15 40.041 0.817 40.658 39.714 7.878
Aug -15 43.407 0.878 44.285 42.799 7.679
X15 40.085 0.705 40.770 39.589 7.842
Oct -15 36.221 0.485 36.707 35.907 7235
Nov -15 34.227 0.561 34.788 33.788 9.176
Dec -15 33.473 0.192 33.685 35.288 7.874
Average 38.909 0.549 37.458 35.778 7.644
Pumpege To
Skokie
224.994
203.955
Pumping
N.W.C.
847.197
578.110
221.083
208.254
233.280
235.514
266.642
288.287
244.463
239.720
204.865
229.159
2786.896
601.740
832.275
681.413
Rampage To
667.101
731.484
798.234
707.930
649.123
533.700
820.813
7,845.900
Skokie N.W.C.
7.218 20.877
7.284 20.647
7.131 19.411
6.942 21.076
7.525 21.981
7.850 22.237
8.243 23.696
9.235 25.685
8.149 23.598
7.733 20.939
6.622 17.790
7.392 20.020
7.635 21.498
Note: "Pumpage to Evanston" includes process and domestic valor uses at the water treatment plant
Water and Sewer 2014 Annual Report
B-19
B1l
2015 Audited Information _
COY OF EVANSTON. ILLINOIS
Nater Fund
Schedule of Revenues, Expendinom, and Clumps in Net Position - Budget and Actual
For the Neal Year Ended December 31,2015
1366011 Aural
°pasting Revenues
Claps for services S 15,253,000 S 15.005,360
Mitoetaasus 506,100 716,246
Mai °pasting Ravewes 15,759,100 15,721,606
°pawing Expenses Excluding Depredation
Atm 1,528,130 1.473,331
Feat' 2,426,701
Mi ,7 32,932
Distribution 2,612,781 2,015,362
Metaaainteuna 1,724,142 2,393,811
Other 194,336 202,921
19,349,100 420,562
Total Operating Expenses Excluding Depalalon 27,135,190 1,260,933
Op nt Income (Loa) Before Dqueciadon (12,076,090) 7,460.673
Deprecation
2.096.633
Operating Income (Lass) (12.076.090) 5,364,040
Revenues (Eames)
Imvesrmat®ecme 10,1100 5,981
Waist &parse
(434,254) (390,461)
Net book value offixed eau disposed - 302,700
Toa) Nan43peretiag Revenues (Expenses) (424,254) (B1.710)
Income (Lan) Before Tauten (14500,344) 5,282,260
Transfers
Transfers (am)
Total Transfers In (Om)
Na Naos
Net Position
Beginning attar
(3,194.053) (3,194.053)
(3.194,053) (3,194,053)
S (15,694,397) 2,011,207
66,279,631
Camp In accounting principle
(101.305)
Prior period adjusmnms
(55,806)
Begbmkig of Year, Restated 66122 520
End of Yea
(See independentauditor's report.)
3 68,210,727
B-20
EVANSTON DISTRIBUTION SYSTEM
CALCULATON OF PERCENT OF SYSTEM ALLOCATED TO MG -N
CALCULATION OF DEPRECIATION CHARGES
Total Evanston Distribution System
pipe size Length
dia (in) (ft) (in -ft)
3 608 1,824
4 6,621 26,484
6 387,032 2,322,192
8 152,754 1,222,032
10 67,658 676,580
12 93,238 1,118,856
14 1,950 27,300
16 33,076 529,216
18 4,389 79,002
20 2,960 59,200
24 45,430 1,090,320
30 8,912 267,360
36 17,405 626,580
42 186 7,812
48 3,568 171,264
825,787 8,226,022
Portion of Evanston Distribution System Used by MG -N
pipe size Length
dia (in) (ft)
36 7,198
48 3,568
10,766
(in -ft)
259,128
171,264
430,392
asset It
528
524
498
Transmission
3,568' 48" dia 1961
2 48" BF valves 1961
7,198' 36" dia 1956
Evan/Skok/MG-N
3,568' 48" dia 1961
2 48" BF valves 1961
4,763' (66%) 36" dia
Total
Skokie / MG -N Only
% in -ft used by MG -N of Evanston Total 2,435' (34%) 36" dia
5.23%
Depreciation
$ 4,763
$ 309
$ 4,341
$ 9,413
Depreciaton
4,763
309
2,865
7,937
Depreciation
1,476
Confirm Total 9,413
B-21
Group Exhibit C
Depreciation Rates
Page C-1
DEPRECIATION RATES
The Depreciation Charge pursaunt to this Agreement shall be based on the
depreciation rates for the various classes of plant set forth below:
Class of Plant
Annual Rate of
Depreciation
Source of Supply 1.11%
Pumping Plant 1.81%
Treatment Plant 1.71%
Water Plant 2.68%
Transmission 1.02%
C-1
374534_3
Exhibit "D"
City of Evanston Ordinance -0-17 (Approval of Water Supply Agreement
Between the City of Evanston, the Village of Morton Grove and the Village of Niles)
(attached)
50
Exhibit "E"
Village of Morton Grove Resolution Number 17-03 (Approval of Water Supply Agreement
Between the City of Evanston, the Village of Morton Grove and the Village of Niles)
374534_3
(attached)
51
RESOLUTION 17-03
A RESOLUTION AUTHORIZING THE APPROVAL AND EXECUTION OF
A WATER SUPPLY AGREEMENT BETWEEN THE CITY OF EVANSTON AND
THE VILLAGE OF MORTON GROVE AND THE VILLAGE OF NILES
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a home rule
government under the provision of Article 7 of the 1970 Constitution of the State of Illinois, can exercise
any power and perform any function pertaining to its government affairs, including but not limited to the
power to tax and incur debt; and
WHEREAS, the President and Board of Trustees of the Village of Morton Grove, a home rule
Illinois municipal corporation (Morton Grove) and the President and Board of Trustees of the Village of
Niles, a home rule Illinois municipal corporation (Niles), have undertaken studies and analyses of the
feasibility of jointly establishing, acquiring, constructing and operating a common source of supply of
water and related waterworks system for the purpose of the delivery of potable drinkable water to their
respective residents, business owners, property owners, and governmental and institutional properties, and
in furtherance thereof, approved and entered into an Agreement entitled "Cost Sharing Agreement
Regarding Morton Grove And Niles Water Supply Matters" (the Cost Sharing Agreement) on January 23,
2017, as approved by Morton Grove Resolution 17-02 on January 23, 2017, and as approved by Niles by
Resolution on January 24, 2017; and
WHEREAS, as set forth in the Cost Sharing Agreement, Morton Grove and Niles (collectively, the
Villages) determined there was a need to jointly cooperate and share the costs of studying, analyzing, and
negotiating agreements regarding certain water supply matters involving the Villages, including but not
limited to the assessment of options for entering into a proposed Water Supply Agreement with one or
more Illinois municipalities, and the creation of and participation in a Joint Action Water Agency or a
Municipal Water Commission by the Villages; and
WHEREAS, after studying and analyzing the costs and benefits associated with different options
for water supply agreements for the Villages with one or more Illinois municipality(ies), the Villages have
determined it is in their best interests to jointly enter into a Water Supply Agreement with the City of
Evanston ("Evanston"), in order that the Villages and their respective water customers receive an adequate
supply of water from Evanston; and
WHEREAS, Morton Grove desires to approve and enter into an Agreement entitled "Water Supply
Agreement between the City of Evanston and the Village of Morton Grove and the Village of Niles" (the
Agreement) for the purposes set forth in the Agreement in substantial conformity with Exhibit "A"
attached hereto and made a part hereof; and
374409_1
WHEREAS, Section 4 of the Agreement (Commencement of Obligation to Deliver and Receive
Water) sets forth the obligations of the Villages and Evanston with regard to the design and construction
work needed prior to commencement of the delivery of water from Evanston to the Villages under the
Agreement; and
WHEREAS, Section 5 of the Agreement (Rate) provides for the cost of the water sold by Evanston
and paid for by the Villages, and the means by which the rate for water sold under the Agreement is
calculated; and
WHEREAS, Section 7 of the Agreement (Water Supply; Allocation; Distribution) provides for
Evanston to sell and deliver water to the Villages, and for the Villages to purchase and receive water from
Evanston; and
WHEREAS, the Villages are still evaluating options for jointly acquiring and operating a common
source of supply of water and a related waterworks system, in order to connect their respective waterworks
systems to the waterworks system of Evanston, and the Villages may establish a Municipal Water
Commission together pursuant to Division 135 of Article 11 of the Illinois Municipal Code (65 ILCS 5/11-
135-1, et seq.) in furtherance thereof, to be known as the "MG -N Water Commission"; and
WHEREAS, in the event the Villages create the MG -N Water Commission, Section 15 of the
Agreement (MG -N Option to Create a JAWA or a Water Commission; Assignment) provides for the
automatic assignment of the Villages' rights and obligations under the Agreement to the MG -N Water
Commission, and the Villages shall have no further rights or obligations under the Agreement; and
WHEREAS, the President and Board of Trustees of the Village of Morton Grove have the authority
to enter into an Agreement pursuant to Morton Grove' home rule powers as provided by Article VII,
Section 10 of the 1970 Constitution of the State of Illinois, the Illinois Intergovernmental Cooperation Act
(5 ILCS 220/1, et seq.) and the Illinois Municipal Code (65 ILCS 5/1, et seq.), and find entering into the
Agreement is in the best interest of Morton Grove.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF MORTON GROVE, ILLINOIS, AS FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing whereas clauses into
this Resolution as though fully set forth therein thereby making the findings as hereinabove set forth.
SECTION 2: The President and Board of Trustees of the Village of Morton Grove authorize the
approval of the economic terms and the attached form of an agreement entitled Water Supply Agreement
Between The City Of Evanston And The Village Of Morton Grove And The Village Of Niles (the
"Agreement") for the purposes set forth in the Agreement, attached hereto as Exhibit "A". The President
374409_1 2
and Board of Trustees of the Village of Morton Grove authorize and direct the Village Administrator, or his
designee, to execute the final version of the Agreement, which may contain certain non -substantive and
non-financial modifications that are approved by the Village Attorney, and to execute and deliver all other
instruments and documents and pay all costs that are necessary to fulfill Morton Grove's obligations under
the Agreement.
SECTION 3: The President and Board of Trustees of the Village of Morton Grove authorize and
direct the Village Administrator, or his designee, to execute said Agreement, and to execute and deliver all
other instruments and documents and pay allcosts necessary to fulfill Morton Grove's obligations under
the Agreement.
SECTION 4: This resolution shall be in full force and effect upon its passage and approval.
PASSED THIS 23`' day of January 2017.
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED by me this 23`d day of January 2017
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
APPROVED and FILED in my office this
24`h day of January 2017.
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Ilinois
374409_1 3
Exhibit "F"
Village of Niles Resolution Number _ (Approval of Water Supply Agreement
Between the City of Evanston, the Village of Morton Grove and the Village of Niles)
374534_3
(attached)
52
Legislative Summary
Resolution 17-04
AUTHORIZING THE APPROVAL AND EXECUTION OF A PROFESSIONAL SERVICES
AGREEMENT FOR ENGINEERING SERVICES FOR PREPARATION OF WATER SUPPLY
CORRIDOR AND WATER ROUTE STUDY (VILLAGE OF MORTON GROVE, VILLAGE OF
NILES, AND STANLEY CONSULTANTS, INC.)
Introduced:
Synopsis:
Background:
Departs Affected:
Fiscal Impact:
Source of Funds:
Work Impact:
Admin
Recommend:
First Reading:
Special Consider
or Requirements:
January 23, 2017
This Resolution will authorize an Agreement among the Villages of Niles and Morton
Grove and Stanley Consultants, Inc., to provide professional consulting and engineering
services in order to prepare a water supply corridor and a water route study to evaluate,
identify, and recommend options for the design, finance, and construction of water
transmission lines, pumping and storage, and other water delivery and receiving
infrastructure for the delivery of water from Evanston to Morton Grove and Niles.
On October 12, 2016, an RFP was issued to engineering firms to provide professional
consulting and engineering services for a water supply corridor and water route study to
evaluate, identify, and recommend water transmission route options as well as evaluate,
identify, and recommend options for the design, finance, and construction of water
transmission lines, pumping and storage, and other related water delivery and receiving
infrastructure extending from the City of Evanston's point of delivery to existing water
receiving points owned and operated by the Village of Morton Grove and the Village of
Niles. The Village's received four responses to the RFP. An interview team comprised of
the Village Administrator of Morton Grove, the Village Manager of Niles. The Public
Work Directors, Engineers, and Corporation Counsels from both Morton Grove and Niles
conducted extensive interviews of the applicants and have recommended that the Villages
engage the services of Stanley Consultants, Inc. for these services in large part due to the
firms knowledge of water systems in Morton Grove, Niles, Skokie and Evanston, and their
experience with projects of this size and scope.
Legal, Administration, and Finance Departments
Stanley Consultants, Inc.'s fees will be based on the actual amount of work performed.
The Village's share for services performed will not exceed $359,000. The total contract
costs will be paid equally by Morton Grove and Niles.
Enterprise Fund, to be reimbursed from bond proceeds
The Village Administrator, Public Works Director and Village Engineer will oversee the
implementation of the Agreement.
Approval as presented.
Not required.
The Exhibits are too voluminous to attach to the agenda documents, but will be
incorporated into the final contract documents and are available for review and inspection
in the Village Administrator's office.
Respectfully submitted:
Prepared by:
Teresa
Reviewed by:_
alp . ze inski, age Administrator Hanna Sullivan, Finance Director
I
offma
Corporation Counsel
Reviewed by:
An Monte, Public Works Director
RESOLUTION 17-04
A RESOLUTION AUTHORIZING THE APPROVAL AND EXECUTION
OF A PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING SERVICES FOR
PREPARATION OF WATER SUPPLY CORRIDOR AND WATER ROUTE STUDY
(VILLAGE OF MORTON GROVE, VILLAGE OF NILES
AND STANLEY CONSULTANTS, INC.)
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a home
rule government under the provision of Article 7 of the 1970 Constitution of the State of Illinois, can
exercise any power and perform any function pertaining to its government affairs, including but not
limited to the power to tax and incur debt; and
WHEREAS, the President and Board of Trustees of the Village of Morton Grove, a home rule
Illinois municipal corporation (Morton Grove), desire to approve and enter into an agreement entitled
"Professional Services Agreement for Engineering Services for Preparation of Water Supply Corridor
and Water Route Study (Village of Morton Grove, Village of Niles, and Stanley Consultants, Inc.)" in
substantially the same form as the Agreement is attached hereto as Exhibit "A" and made a part hereof;
(the Agreement); and
WHEREAS, on October 12, 2016, the Village of Morton Grove and the Village of Niles, an Illinois
home rule municipal corporation (Niles), issued a Request for Proposal, entitled "RFP Morton Grove and
Niles — Detailed Water Supply Corridor and Route Study, Issue Date: October 12, 2016" (the MGN RFP), to
engineering firms to provide professional consulting and engineering services to prepare a water supply
corridor and water route study to evaluate, identify, and recommend water transmission route options as
well as evaluate, identify, and recommend options for the design, finance, and construction of water
transmission lines, pumping and storage, and other related water delivery and receiving infrastructure that
will extend from the City of Evanston's (Evanston) point of delivery near the intersection of Emerson Street
and McCormick Boulevard, which is Evanston's westem border, to existing water receiving points (e.g.,
reservoirs and pumping facilities) owned and operated respectively by Morton Grove and Niles, and located
in Niles near the intersection of Harlem Avenue and Touhy Avenue, and located in Morton Grove near the
intersection of Caldwell Avenue and Oakton Street, for Morton Grove and Niles (the Services); and
WHEREAS, the construction of the water transmission lines, pumping and storage, and other related
water delivery and receiving infrastructure between Evanston's point of delivery to the existing water
receiving points of Niles and Morton Grove is referred to as the Project, as further defined and set forth in the
Agreement; and
374410_1
WHEREAS, Stanley Consultants, Inc. (Consultant) submitted a response to the MGN RFP, dated
November 2, 2016, to perform the Services relative to the Project, and Morton Grove, Niles, and the
Consultant further negotiated and refined the Services to be performed as set forth in the Agreement; and
WHEREAS, Morton Grove agrees to retain the Consultant to perform the Services with Niles, in
accordance with the terms of the Agreement; and
WHEREAS, the Consultant has agreed to perform the Services in accordance with the terms of
the Agreement; and
WHEREAS, the President and Board of Trustees of the Village of Morton Grove have the
authority to enter into the Agreement pursuant to Morton Grove's home rule powers as provided by
Article VII, Section 10 of the 1970 Constitution of the State of Illinois, the Illinois Intergovernmental
Cooperation Act (5 ILCS 220/1, et seq.) and the Illinois Municipal Code (65 ILCS 5/1, et seq.), and find
that entering into the Agreement is in the best interests of the Village of Morton Grove.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, ILLINOIS, AS FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing whereas clauses
into this Resolution as though fully set forth therein thereby making the findings as hereinabove set
forth.
SECTION 2: The President and Board of Trustees of the Village of Morton Grove authorize the
approval and execution of an Agreement entitled "Professional Services Agreement for Engineering
Services for Preparation of Water Supply Corridor and Water Route Study (Village of Morton Grove,
Village of Niles, and Stanley Consultants, Inc.)" for the purposes set forth in the Agreement, attached
hereto as Exhibit "A".
SECTION 3: The President and Board of Trustees of the Village of Morton Grove authorize and
direct the Village Administrator, or his designee, to execute the final version of the Agreement, which
may contain certain non -substantive and non-financial modifications that are approved by the Village
Attorney, and to execute and deliver all other instruments and documents and pay all costs that are
SECTION 4: This resolution shall be in full force and effect upon it passage and approval.
374410_1 2
PASSED THIS 23rd day of January 2017
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED by me this 23rd day of January 2017.
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
APPROVED and FILED in my office this
24th day of January 2017.
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
374410_1 3
EXHIBIT "A"
PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING SERVICES
FOR PREPARATION OF WATER SUPPLY CORRIDOR AND WATER ROUTE STUDY
(VILLAGE OF MORTON GROVE, VILLAGE OF NILES,
AND STANLEY CONSULTANTS, INC.)
(attached)
374410_1 4
PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING SERVICES
FOR PREPARATION OF WATER SUPPLY CORRIDOR AND WATER ROUTE STUDY
(Village of Morton Grove, Village of Niles and Stanley Consultants, Inc.)
This PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING SERVICES FOR PREPARATION OF WATER
SUPPLY CORRIDOR AND WATER ROUTE STUDY ("Agreement") is made by and between Stanley Consultants,
Inc., an Iowa corporation, authorized to conduct business in the State of Illinois, whose mailing address is 8501
West Higgins Road, Suite 730, Chicago, Illinois 60631 (the "Consultant") and the Village of Morton Grove, an
Illinois home rule municipal corporation, whose mailing address is 6101 Capulina Avenue, Morton Grove,
Illinois 60053 ("Morton Grove") and the Village of Niles, an Illinois home rule municipal corporation, whose
mailing address is 1000 Civic Center Drive, Niles, Illinois 60714 ("Niles"). The Consultant and the Villages are at
times referred to herein individually as a "Party" and collectively as the "Parties." Morton Grove and Niles are
at times referred to collectively as "MGN" or the "Villages".
RECITALS
WHEREAS, on October 12, 2016, MGN issued a Request for Proposals, entitled "RFP Morton Grove and
Niles — Detailed Water Supply Corridor and Route Study, Issue Date: October 12, 2016" (the "MGN RFP"), to
engineering firms to provide professional consulting and engineering services to prepare a water supply corridor
and water route study to evaluate, identify and recommend water transmission route options as well as evaluate,
identify and recommend options for the design, finance and construction of water transmission lines, pumping and
storage, and other related water delivery and receiving infrastructure that will extend from the City of Evanston's
point of delivery near the intersection of Emerson Street and McCormick Boulevard, which is Evanston's western
border, to existing water receiving points (e.g., reservoirs and pumping facilities) owned and operated respectively
by Morton Grove and Niles, and located in Niles near the intersection of Harlem Avenue and Touhy Avenue and in
Morton Grove near the intersection of Caldwell Avenue and Oakton Street for MGN (the "Services", as further
defined below). The construction of the water transmission lines, pumping and storage, and other related water
delivery and receiving infrastructure between the City of Evanston's point of delivery to the existing water receiving
points of Niles and Morton Grove is referred to as the "Project." A copy of the MGN RFP is incorporated by
reference as Exhibit "A" into this Agreement and made a part hereof; and
WHEREAS, the Consultant submitted a response to the RFP, dated, November 2, 2016, to perform the
Services (the "Proposal"). A copy of the Proposal is incorporated by reference into this Agreement as Group Exhibit
"B" and made a part hereof. MGN and the Consultant further negotiated and refined the Scope of Services that are
to be performed by the Consultant under this Agreement. A copy of the agreed-upon final version of the Scope of
Services dated January 4, 2017 is attached hereto as Group Exhibit "B" and made a part hereof, the terms of which
shall govern over any other Exhibit to or provision of this Agreement. In addition, a copy of the Projected Labor and
Budget dated December 12, 2016 is attached hereto as Group Exhibit "B" and made a part hereof; and
WHEREAS, MGN agrees to retain the Consultant to perform the Services in accordance with the terms
of this Agreement; and
WHEREAS, the Consultant agrees to perform the Services in accordance with the terms of this
Agreement.
NOW, THEREFORE, in consideration of the recitals, mutual covenants and representations set forth in
this Agreement, the Parties mutually agree that the Consultant shall perform the Services described below,
and MGN shall pay the Consultant for said performance, under the following terms and conditions:
374544_4
SECTION 1. INCORPORATION AND DEFINITIONS.
Each of the above Whereas paragraphs are incorporated into this Section 1 as materials provisions of this
Agreement.
Whenever used in this Agreement, the following terms shall have the meanings indicated and the singular shall
be read to include the plural and vice versa, and pronouns stated herein shall be construed to include all
genders.
A. The term "Agreement" includes the Recitals set forth above, which are incorporated into Section 1 of
this Agreement, and shall mean this Agreement and its attached Exhibits as entered into by the
Consultant and MGN setting forth the terms and conditions governing the Services.
B. The term "Morton Grove Affiliates" means Morton Grove's former, current and future appointed and
elected officials, officers, president and trustees, employees, engineers, attorneys, consultants,
authorized representatives and volunteers.
C. The term "Niles Affiliates" means Niles' former, current and future appointed and elected officials,
officers, president and trustees, employees, engineers, attorneys, consultants, authorized
representatives and volunteers.
D. The term "Services" means the professional consulting and engineering services that are listed in the Scope of
Services dated January 4, 2017 and attached hereto as Group Exhibit "B". The term "Work" has the same
meaning as the term "Services" as used in the MGN RFP and this Agreement.
E. The term "Scope of Work" is defined in the Scope of Services dated January 4, 2017 and attached hereto as
Group Exhibit "B". The term "Scope of Work" has the same meaning as the term "Scope of Services" as used
in the MGN RFP and this Agreement.
F. The terms "sub -consultant" and "sub -contractor" mean the person, independent contractor, partnership,
corporation, joint venture or other business entity (including its employees, agents or others performing or
supplying on its behalf, or at its direction) having a contract with the Consultant for the performance of any
portion of the Services.
G. The term "MGN Working Group" means the respective staff and consultants employed by Morton
Grove and Niles who are working on the Project.
SECTION 2. TERM OF AGREEMENT.
This Agreement shall be effective on the date that the last signatory executes this Agreement and shall terminate
upon the completion and acceptance of the Services by MGN and final payment to the Consultant by MGN, which
shall occur on or before June 3, 2017 (the "Completion Date"), as provided below (the "Term"), unless this
Agreement is terminated earlier by any Party, or by mutual agreement, or the Parties agree, in writing, to extend
the Term.
SECTION 3. SCOPE OF SERVICES
A. Services; Non -Exclusive Relationship. The Consultant agrees to perform the Services in order to complete
the Scope of Work in accordance with the terms and conditions of this Agreement. The Consultant shall
provide the Services on behalf of and at the direction of MGN, the MGN Representative (defined below)
and/or the MGN Working Group and understands that this Agreement is not an exclusive relationship in that
Morton Grove and Niles, in their collective discretion, are free to enter into other agreements with other
vendors or consultants to perform work on the Project, upon ten (10 ) calendar days written notice to the
Consultant's Primary Representative. Morton Grove and Niles MGN, in their collective discretion, are also
free to assign all or any portion of the Services to other vendors or consultants, upon ten (10) calendar days
374544_4
written notice to the Consultant's Primary Representative, and the Compensation of the Consultant shall be
reduced on an equitable basis. Unless otherwise indicated by MGN, the primary contact point for MGN and
the MGN Working Group ("MGN Representative") to provide direction to the Consultant under this
Agreement shall be:
Bill Balling
WRBLLC
Cellular Phone: (847) 863-7101
Office Phone: (847) 398-8399
Email: bill@wrbllc.com
NOTE: Copies of all correspondence and documents shall be sent via email to the Morton Grove
Administrator and the Morton Grove Village Manager at their Village business addresses at the same time
the originals are sent by the Consultant.
B. Mutual Cooperation. MGN agrees to cooperate with the Consultant in the performance of the
Services, including meeting with the Consultant on an as -needed basis and providing the Consultant
with such "Confidential Information" (as defined in Section 10 below) and non -confidential
information that MGN may have that may be relevant and helpful to the Consultant's performance of
the Services. These documents shall be furnished to the Consultant without cost or expense to the
Consultant. The Consultant agrees to cooperate with MGN in the performance and completion of the
Services, including meeting with MGN, the MGN Representative and/or the MGN Working Group on
an as -needed basis, and with any other consultants engaged by MGN. Within this Agreement, anytime
that MGN is referenced in terms of providing direction to, making requests of, or communicating with
the Consultant, that MGN reference shall also be read to include Morton Grove, Niles, the MGN
Representative and/or the MGN Working Group.
C. Consultant's Personnel and Representative.
(1) Primary Representative. T he C onsultant s hall designate Larry Thomas w ho shall be available
during normal business hours (Monday through Friday from 8:00 a.m. CST to 5:00 p.m. CST) and
who shall serve as the Consultants primary authorized representative throughout the Term of this
Agreement. This "Primary Representative" shall be readily available to respond to communications
from MGN and shall be primarily responsible for performing the Services as requested by MGN.
The Primary Representative shall receive requests from MGN to perform the Services and shall
have full authority to execute the directions of MGN, without delay, and promptly supply any
necessary labor, equipment or incidentals to do so. The Consultant also shall provide MGN with the
name and phone number of the Consultants Primary Representative who, in the case of an off -
hours emergency, shall be readily accessible and available for a quick response. The Consultant
shall immediately notify MGN in writing of any change in the identity and telephone number of the
Consultant's Primary Representative. The Primary Representative shall not be changed by the
Consultant without MGN's prior written approval. If the Primary Representative fails to perform
the Services to the satisfaction of MGN, then the Consultant s hall immediately replace the
Primary Representative with a new person with comparable experience and knowledge.
(2) Availability of Personnel. The Consultant shall provide adequate personnel necessary to complete
the Services. The Consultant shall notify MGN as soon as practicable prior to terminating the
employment of, reassigning or receiving notice of the resignation of any personnel assigned to
regularly perform the Services. The Consultant shall have no claim for damages and shall not bill
MGN for additional time and materials charges as the result of any portion of the Services which
must be duplicated or redone due to such termination or for any delay or extension of time in
performing the Services as a result of any such termination, reassignment or resignation.
(3) Approval and Use of Sub -consultants / Sub -contractors. The Consultant shall perform the
Services with its own personnel and under the management, supervision and control of its own
374544_4
organization, unless otherwise approved in advance and in writing by MGN. All sub -consultants and
sub -contractors used by the Consultant shall be acceptable to and approved in advance by MGN.
MGN's approval of any sub -consultant or sub -contractor shall not relieve the Consultant of full
responsibility and liability for the provision, performance and completion of the Services as required
by this Agreement, including the agreed upon compensation for the Services. All Services performed
under any sub -contract shall be subject to each of the terms of this Agreement, in the same manner
as if performed by employees of the Consultant. Every subcontract that the Consultant enters into
in regard to the performance of the Services under this Agreement shall include an express
provision binding the sub -consultant or sub -contractor to all of the terms of this Agreement, and
specifically noting the obligations in this Section 3.C(3). Upon execution of this Agreement, MGN
accepts the sub -consultants listed in Exhibit "C."
(4) Removal of Personnel and Sub -consultants / Sub -contractors. If any of Consultant's personnel
or any sub -consultant or sub -contractor fails to perform the Services in a manner satisfactory
to MGN and consistent with commonly accepted industry standards and professional
practices, the Consultant shall immediately, upon notice from MGN, remove and replace such
personnel or sub -consultant or sub -contractor. The Consultant shall have no claim for
damages, for compensation in excess of the amount contained in this Agreement, or for a
delay or extension of time of performance as a result of any such removal or replacement.
Financial Ability to Perform. The Consultant states that it is financially solvent, has the
financial resources necessary, has sufficient experience and competence, and has the
necessary capital, facilities, organization, and staff necessary to provide, perform, and
complete the Services set forth in this Agreement.
(5)
D. Notice to Proceed with Services. The Consultant shall commence the Services immediately upon
receipt of a written notice to proceed from MGN ("Commencement Date"). The Consultant shall
diligently and continuously work on the Services until the completion of the Services or upon the
termination of this Agreement, but in no event later than the Completion Date. The Parties may
mutually agree in writing to modify the Completion Date. Delays caused by MGN shall extend the
Completion Date in equal proportion to the delay caused by MGN. In the event that the Consultant
performs any Services and incurs any expenses in furtherance of the Project prior to receiving a
written notice to proceed from MGN in regard to the Project or any phase of the Project, the Services
are performed and the expenses are incurred at the Consultant's sole risk, and such Services and
expenses are not authorized for payment or reimbursement, unless and until a written notice to
proceed is issued by MGN. Those actual, documented Services performed prior to the issuance of the
MGN notice to proceed shall be paid by MGN as part of the "not to exceed" Fee provided by this
Agreement.
E. Suspension of Services. MGN, at any time and for any reason, may suspend work on any or all Services
by issuing a written work suspension notice to the Consultant. The Consultant must stop the
performance of all Services within the scope of the suspension notice until MGN directs the Consultant
in writing to resume performance of the Services.
F. Phasing of Scope of Work. The Consultant shall not commence performance of the Services on the
initial phase or any subsequent phase of the Scope of Work, unless it first receives a written Notice to
Proceed from the MGN Representative. In the event that MGN decides not to proceed with the Project
or any subsequent phase of the Project for any reason, this Agreement shall terminate upon written
notice to the Consultant issued by MGN advising of the termination of the Agreement. In such case,
MGN shall be liable to the Consultant only for payment of all actual, completed, documented Services
through the date of termination. The Consultant agrees to waive any and all claims and causes of
action for any other damages or losses of any kind that could be brought relative to the termination of
the Agreement by MGN based on MGN's decision not to proceed with the Project or any phase of the
374544_4
Scope of Work. For the purposes of this Agreement, each of the numbered paragraphs in Exhibit "D"
Compensation and Fee Schedule, shall be considered "a phase".
G. Reporting; Delivery Date of Final Report. The Consultant shall regularly, and no less than bi-weekly,
provide both written and verbal reports to the MGN Representative to the MGN Working Group and
to any other MGN staff or officials upon request regarding the progress of the Services. The MGN
Representative can require more frequent reporting by the Consultant at any time. Upon final
completion of the Services, the Consultant shall deliver a final written report addressed to the Village
Administrator of Morton Grove and the Village Manager of Niles and with copies delivered to the MGN
Representative and the other members of the MGN Working Group that confirms the completion of
the Services (the "Final Report"). The Final Report shall be completed and delivered to MGN on or
before the Completion Date.
H. Electronic Reporting. In addition to providing MGN with paper copies of all reports, data or results and the
Final Report, the Consultant (and the Primary Representative) shall, to the extent possible, submit
documentation regarding the Services to MGN electronically. The Parties agree to work together to
develop a procedure for electronic communication of data that is effective and efficient for all Parties.
Final Acceptance. The Services, or, if the Services are to be performed in separate phases, each phase
of the Services, shall be considered complete on the date of final written acceptance by the MGN
Representative of the Services or each phase of the Services, as the case may be, which acceptance
shall not be unreasonably withheld or delayed.
J. Sub-consultant/Sub-contractor List. The Consultant shall maintain an updated list of sub-consultant/sub-
contractors who are working on the Project and shall provide the list and any updates to the list to the
MGN Representative. A copy of the initial sub-consultant/sub-contractor list shall be attached hereto as
Exhibit "C" and made a part hereof; and any updated version(s) of the list shall be incorporated herein by
reference.
SECTION 4. EXHIBITS.
The following exhibits are either incorporated by reference or attached to and made part of this Agreement
as noted. In the event of a conflict between an Exhibit and the text of this Agreement, the text of the Agreement
shall control.
Exhibit "A" -
Group Exhibit "B" -
Request for Proposals entitled "RFP Morton Grove and Niles — Detailed Water
Supply Corridor and Route Study, Issue Date: October 12, 2016" (the "MGN RFP").
Consultant's Proposal for Services in regard to MGN RFP (incorporated by
reference); Final version of the Scope of Services dated January 4, 2017
(attached and made part of this Agreement); Projected Labor and Budget
dated December 12, 2016 (attached and made part of this Agreement).
Exhibit "C" - Sub-consultant/Sub-contractor List
Exhibit "D" - Compensation and Fee Schedule for Services in Regard to RFP Morton Grove and
Niles — Detailed Water Supply Corridor and Route Study ("Fee Schedule")
Exhibit "E" - Insurance Requirements for the Consultants, Sub -consultants and Sub -contractors
Exhibit "F" - Services Change Order (Form)
374544_4
SECTION 5. INDEPENDENT CONTRACTOR STATUS.
A. Relationship of the Parties. The Consultant's role, and the role of its employees and its sub -consultants
and sub -contractors, with respect to the performance of the Services is solely that of an independent
contractor. The following terms and conditions are operative and applicable to the Parties under this
Agreement:
(1) Non -Exclusive Contractual Arrangement. The Consultant and its employees and its sub -
consultants and sub -contractors are retained under a non-exclusive contractual arrangement
to perform the Services only for the limited purposes set forth in this Agreement. No
provision of this Agreement or subsequent conduct between the Parties shall be construed to
create a relationship between the Parties as that of "employer-employee," "principal and
agent," "partners" or "participants in a joint venture."
(2) No Authority to Bind. The Consultant and its employees and its sub -consultants and sub-
contractors shall have no authority or right to enter into any contract or incur any debt or
liability of any nature in the name of, or on behalf of, MGN or Morton Grove or Niles.
(3) Not Employees of MGN. The Consultant and its employees and its sub -consultants and sub-
contractors serve only as independent contractors of MGN, Morton Grove and Niles, and not
as employees of MGN, Morton Grove or Niles, for all purposes, including, but not limited to,
the application of the Fair Labors Standards Act minimum wage and overtime payments,
including any similar Illinois wage laws, the Federal Insurance Contribution Act, the Social
Security Act, the Federal Unemployment Tax Act, the Illinois Unemployment Insurance Act
(820 ILCS 405/1 et seq.) and the Illinois Worker's Compensation and Occupational Diseases
Act (820 ILCS 305/1, et seq.). Therefore, neither federal nor state nor local income tax nor
payroll tax of any kind, nor any other withholding, shall be withheld or paid by MGN, Morton
Grove or Niles on behalf of the Consultant, and its employees and its sub -consultants and
sub -contractors. Nothing in this Agreement shall be construed as MGN, Morton Grove or Niles
requiring or acquiring or incurring any liability for Worker's Compensation, FICA, withholding
tax, unemployment compensation or any other payment which would be required to be paid by
MGN, Morton Grove or Niles if MGN and the Consultant, and its employees and its sub -
consultants and sub -contractors, were engaged in an "employer-employee" relationship.
(4) Payment of Taxes. The Consultant and its employees and its sub -consultants and sub-
contractors are responsible, pursuant to applicable law, for payment of any income and
employment taxes or any other taxes of any kind arising from their receipt of compensation
under this Agreement.
(5)
Ineligible for MGN Employment Benefits. The Consultant and its employees and its sub -
consultants and sub -contractors agree that they shall not be entitled to receive or to
participate in any employee benefits or health, life or professional liability insurance
programs or other employee benefit programs or pension plans or retirement plans available
to part-time or full-time Village employees, and agree that they are ineligible to file a claim
for unemployment compensation benefits or for Worker's Compensation benefits against
Morton Grove or Niles. The Consultant and its employees and its sub -consultants and sub-
contractors agree not to file any such claims in the event this Agreement is terminated or if
they are injured or become ill as a result of performing any Services under this Agreement.
(6) Autonomy. The Consultant and its employees and its sub -consultants and sub -contractors
are free to use their time, energy and skill when they are not performing the Services for
MGN on other endeavors, as they deem appropriate and advisable.
374544_4
(7)
Discretion Over Performance and Delivery of Services. MGN shall have no control over the
timing, means and manner in which the Services are to be performed by the Consultant, and
its employees or its sub -consultants and sub -contractors. The Consultant is responsible for
directing and controlling the performance and completion of the Services in a timely manner
that meets MGN's requested schedule and the Completion Date.
(8) Certification, Training and Licensing. The Consultant represents that its employees, sub -
consultants and sub -contractors (a) are fully qualified, licensed, registered, trained and
capable within their respective disciplines in accordance with applicable laws, regulations
and industry standards, and (b) currently hold, and shall maintain throughout the Term of
this Agreement, all required licenses, registrations, permits and certificates applicable to the
their performance of the Services. To the extent that equipment is being utilized in the
providing of the Services, the Consultant and its employees and its sub -consultants and sub-
contractors shall use their own equipment and tools of the trade, and be qualified and
authorized to operate same.
(9)
Applicable Regulations. The Consultant, and its employees and its sub -consultants and sub-
contractors, shall be familiar with and comply with the applicable Federal, State, County and
local codes, ordinances and regulations, and shall use, apply and enforce the same when
performing the Services.
(10) Injury to Reputation. The Consultant, and its employees and its sub -consultants and sub-
contractors, shall not act in a manner that might injure the reputation of Morton Grove and
the Morton Grove Affiliates or Niles and the Niles Affiliates.
SECTION 6. COMPENSATION AND METHOD OF PAYMENT.
A. Fee Amount.
(1)
Fee Schedule. MGN agrees to pay for any requested, fully completed and accepted Services
rendered by the Consultant in accordance with and not to exceed the Compensation and Fee
Schedule (Exhibit "D") attached to this Agreement. The "not to exceed" Fee for the Basic
Services (Exhibit "D" Items 1 and 2) shall be Seven Hundred and Seventeen Thousand Seven
Hundred and Thirty and No/100 Dollars ($717,730.00) (the "Not -To -Exceed Fee").
(2) Out -of -Pocket Costs. The Consultant, at its sole cost, shall pay all other expenses related to
the performance of this Agreement including, and not limited to, travel, printing,
reproduction, mailing, insurance premiums, licensing fees, fuel, overhead, administrative
costs, delivery charges, and all costs associated with the acquisition and maintenance of
vehicles and equipment. The Consultant may request reimbursement of these out-of-pocket
costs, including the Reimbursable Costs shown in attached Exhibit "D" upon proper
documentation, but such reimbursement shall be paid as part of the payment of and within
the dollar amount of the Not -To -Exceed Fee.
(3)
374544_4
Scope of Fees. The amounts set forth in the Fee Schedule include all applicable Federal, State and
Village taxes of every kind and nature applicable to the Services, as well as all taxes, contributions
and premiums for unemployment insurance, old age or retirement benefits, pensions, annuities
or similar benefits, and all costs, royalties and fees arising from the use on, or the incorporation
into, the Services, of patented or copyrighted equipment, materials, supplies, tools,
appliances, devices, processes or inventions. All claims or rights to claim additional
compensation by reason of the payment by the Consultant of any such tax, contribution,
premium, cost, royalty or fee are the sole responsibility of the Consultant, and any claim or
demand from any person that MGN or Morton Grove or Niles pay such taxes, contributions,
premiums, costs, royalties or fees are waived and released and shall be indemnified by the
Consultant.
B. Invoices and Payment.
374544_4
(1) Frequency and Content. The Consultant shall submit invoices to MGN, allocated to Morton
Grove and Niles on an equal share basis (50% share / 50% share), on a monthly basis. Each
invoice shall be addressed and delivered to both the Village Administrator of Morton Grove
and the Village Manager of Niles at their respective business addresses set forth in Section
13(D) below and a copy delivered to the MGN Representative. MGN may specify the specific
day of the month on or before which invoices must be filed. Each invoice must be
accompanied by receipts, vouchers, and other documents as necessary to reasonably
establish the Consultant's right to payment of the Compensation stated in the invoice. In
addition, each invoice must include employee classifications and employee designations
(initials), rates per hour, and hours worked by each employee classification. If the Services
are to be performed in separate phases, then for each phase, the invoice must also include:
the total amount billed in the current phase(s), the total amount billed to date including each
completed phase and any current phase(s), and the estimated percent completion of the
Services for each phase and on an overall basis.
(2) Invoice Payment. MGN agrees to make payments to Consultant within thirty (30) calendar
days of receipt of the invoice, unless there is a dispute in regard to the invoice, and to pay
interest on unpaid balances under the provisions of the Local Government Prompt Payment
Act (50 ILCS 505/1, etseq.), unless the Parties mutually agree to waive the interest payment.
If there is a dispute in regard to any invoice, MGN shall make payment for that portion of the
invoice not in dispute and the Parties shall cooperate to resolve the dispute as soon as
possible in accordance with Subsection 6(G) below, but any such dispute shall not cause the
Consultant to stop performing Services or delay in its completion of the Scope of Work.
MGN's failure to object to any monthly invoices and payment by MGN for Services related to
any monthly invoice or other periodic progress payment shall not be an acceptance by MGN
of such Services that are incomplete and in progress.
Final Payment. The Services will be considered complete on the date of final written
acceptance by MGN after completion of all of the Services for the entire Scope of Work or
acceptance of the relevant phase of the Services for a portion of the Scope of Work. After
delivery of the Final Report and completion of the Services, the Consultant shall request in
writing a confirmation of acceptance of the Services by MGN and shall also deliver an invoice
for final acceptance and payment. MGN will make final payment to the Consultant within
thirty (30) calendar days after final written acceptance of the Services to be delivered under
this Agreement, after deducting therefrom charges, if any, as provided in this Agreement
("Final Payment"). The acceptance by the Consultant of Final Payment will operate as a full
and complete release of MGN by the Consultant of and from any and all lawsuits, claims, or
demands for further payment of any kind for the Services encompassed by the Final
Payment.
(3)
(4) Deductions. Notwithstanding any other provision of this Agreement, MGN may deduct and
withhold from any payment or from Final Payment such amounts as may reasonably appear
necessary to compensate MGN for any loss due to (1) Services that are defective,
nonconforming, or incomplete, (2) liens or claims of lien, (3) claims against the Consultant or
MGN made by any of the Consultant's sub -consultants or suppliers or by other persons about
the Services, (4) delay by the Consultant in the completion of the Services, (5) the cost to
MGN, including without limitation reasonable attorneys' fees, of correcting any of the
matters stated in this Section or exercising any one or more of MGN's remedies set forth in
Section 6(G)(Informal Dispute Resolution) or Section 13 (0)(Cumulative Rights and Remedies)
below. MGN will notify the Consultant in writing given in accordance with Section 13(D)
below of MGN's determination to deduct and withhold funds, which notice will state with
specificity the amount of, and reason or reasons for, such deduction and withholding.
(5)
Use of Deducted Funds. MGN will be entitled to retain any and all amounts withheld pursuant
to Section 6(B)(4)(Deductions) above until the Consultant either has performed the obligations
in question or has furnished security for that performance satisfactory to MGN. MGN will be
entitled to apply any money withheld or any other money due to the Consultant to reimburse
itself for any and all costs, expenses, losses, damages, liabilities, suits, judgments, awards, and
reasonable attorneys' fees (collectively "Costs") incurred, suffered, or sustained by MGN and
chargeable to the Consultant under this Agreement.
C. Records; Audit. The Consultant shall maintain records showing the Services performed and a record
of additional services performed, and shall permit MGN to inspect and audit all data and records of
the Consultant for Services performed pursuant to this Agreement. The records shall include all
billable charges and costs, descriptions and time entries by personnel (in minutes/hours increments)
incurred in performing the Services in accordance with generally accepted accounting practices,
consistently applied, and in such manner as to permit verification of all entries. Upon written request
by MGN, the records shall promptly be made available to MGN or its auditors during normal business
hours during the Term of this Agreement, and for three (3) consecutive calendar years after the
termination of this Agreement. Copies of such records shall be promptly furnished by the Consultant
to MGN at a reasonable per page photocopy expense or in an electronic or digital format at no
charge.
D. Claim In Addition To Agreement Amount.
(1)
The Consultant shall provide written notice to MGN of any claim for additional Compensation
as a result of action taken by MGN, within fifteen (15) calendar days after the occurrence of
such action.
(2) The Consultant acknowledges and agrees that written notice pursuant to this Section shall not be
deemed or interpreted as entitling the Consultant to any additional compensation; and that any
changes in the Agreement Amount shall be valid only upon written amendment signed by all
Parties pursuant to Section 6(9 (Service Change Orders) below.
Regardless of the decision of MGN relative to a claim submitted by the Consultant, the
Consultant shall proceed with all of the Services required to complete the Services under this
Agreement, as determined by MGN, without interruption.
E. Additional Services. The Consultant acknowledges and agrees that in no event shall MGN or Morton
Grove or Niles be liable for any additional Compensation or fees or costs incurred by the Consultant or
any sub -consultant or sub -contractor in connection with any Services provided by the Consultant or any
sub -consultant or sub -contractor that are outside of, or exceed, the scope of this Agreement ("Additional
Services"), regardless of whether such Additional Services are requested or directed by MGN or Morton
Grove or Niles, except upon the prior written consent of both Morton Grove and Niles provided under
Section 6(9 (Service Change Orders) below.
(3)
F. Services Change Orders; Delays.
(1) Services Change Orders. MGN, from time to time, may issue a written order modifying or
otherwise changing the scope of the Services included in a Services Change Order (a
"Services Change Order"). Any one or more Services Change Order which increases the
original contract not to exceed price amount (individual or in the aggregate) by more than
Twenty Thousand and No/100 Dollars ($20,000.00) must be approved by Resolution of the
corporate authorities of MGN. For Services Change Orders below the Twenty Thousand and
No/100 Dollars ($20,000.00) threshold, the MGN Representative is authorized to execute the
Services Change Order after review and approval by the Village Administrator of Morton
Grove and the Village Manager of Niles. The Services Change Order will be generally in the
374544_4
form attached to and by this reference incorporated into this Agreement as Exhibit "F". MGN
or the Consultant may request a Services Change Order based on new or different
information or changes in conditions or circumstances that were not known or not
anticipated at the time of approval of this Agreement that results in change in the scope of
any Services to be performed under this Agreement. A Services Change Order may include
additions to and deletions from the Services and will include any equitable increases or
decreases to the Compensation as mutually agreed to by the Parties.
(2) Revision Notices. Within five (5) calendar days of receipt of a MGN -approved Services
Change Order, the Consultant must notify MGN in writing if the Consultant desires a revision
to the Services Change Order (a "Revision Notice"). The Revision Notice must clearly state
the Consultant's requested revisions and the reasons for the revisions. If MGN agrees to any
revision, then MGN will issue a revised Services Change Order in a form acceptable to the
Parties. If the Consultant does not submit a Revision Notice within the 5 -day period, then the
Consultant will be deemed to have accepted the Services Change Order and the Services
Change Order will be final.
(3)
Disagreements over Services Change Order Terms. If MGN and the Consultant cannot agree
on the proposed revisions to the Compensation or Project Schedule terms of a Services Change
Order, then the Parties will apply the dispute resolution provisions of this Agreement in order
to reach agreement. In that event, the Consultant must proceed diligently with the revised
Services as directed by MGN pending resolution of the disagreement. The Consultant will be
compensated equitably for the work the Consultant undertakes during the informal dispute
resolution process.
(4) No Change in Absence of Services Change Order. No claim for an adjustment in Compensation
or Project Schedule will be made or allowed unless it is embodied in a Services Change Order
signed by the MGN Representative and the Consultant. If the Consultant believes it is entitled
to an adjustment in the Compensation or Project Schedule terms that has not been included,
or fully included, in a Services Change Order, then the Consultant may submit to MGN a
written request for the issuance of, or revision of, a Services Change Order including the
desired adjustment. The Consultant's request must be submitted before the Consultant
proceeds with any Services for which an adjustment is desired.
Delays. If a delay in providing Services results from one or more causes that could not be
avoided or controlled by the Consultant, then the Consultant may be entitled to an extension
of the Project Schedule for a period of time equal to that delay, or an adjustment in
Compensation for extra costs related to the delay, or both. The Consultant must notify MGN in
writing within ten (10) calendar days after the start of the delay and again in writing within ten
(10) calendar days after the delay has ended (the "Delay Period"). The first notice must state
the cause or causes of the delay and the impact of the delay on providing Services. The second
notice must state the cause or causes of the delay, the length of the day, the reasons why the
delay disrupted performance of the Services and the Consultant's request, if any, for a change
in Compensation or Project Schedule. If the Consultant fails to submit notices as provided in
this Section, then the Consultant will be deemed to have waived any right to an adjustment in
Compensation for the Services.
(5)
G. Informal Dispute Resolution.
(1) Dispute Resolution. If a dispute arises between any of the Parties concerning this Agreement,
the Parties will first attempt to resolve the dispute by negotiation. Each Party will designate
persons to negotiate on their behalf. The Party contending that a dispute exists must
specifically identify in writing all issues and present it to the other Parties. The Parties will
374544_4
meet and negotiate in an attempt to resolve the matter. If the dispute is resolved as a result of
such negotiation, there must be a written determination of such resolution, and ratified by the
corporate authorities of each Party, which will be binding upon the Parties. If necessary, the
Parties will execute an addendum to this Agreement. Each Party will bear its own costs,
including attorneys' fees, incurred in all proceedings in this Section. If the Parties do not
resolve the dispute through negotiation, any Party to this Agreement may pursue other
remedies under Section 13(0) (Cumulative Rights and Remedies) below to enforce the
provisions of this Agreement.
(2) Performance of Services. During the dispute resolution process, the Consultant must proceed
diligently with the performance of Services.
SECTION 7. PERFORMANCE AND STANDARD OF SERVICES.
A. Consultant Responsibilities. The Consultant, at its sole cost, agrees as follows:
(1)
Standard of Performance. The Consultant shall perform the Services in a manner consistent
with the degree of care and skill ordinarily exercised by members of the same profession
currently practicing under similar circumstances in the Chicago Metropolitan Region (the
"Standard of Performance"). All Services must be free from defects and flaws, must conform
to the requirements of this Agreement, and must be performed in accordance with the
Standard of Performance. The Consultant is fully and solely responsible for the quality,
technical accuracy, completeness, and coordination of all Services. Such performance shall
be to the satisfaction of MGN. All Services shall be performed in a reasonably prompt
manner.
(2) Corrections of Defects, Errors and Omissions. If any errors, omissions or acts, intentional or
negligent, are made by the Consultant and/or its employees, its sub -consultants and sub-
contractors in providing the Services, the correction of which requires additional Services,
the Consultant shall be required to perform such additional Services as may be necessary to
remedy same without undue delay and without any charge or cost to MGN. The Consultant
must provide, for no additional Compensation and at no separate expense to MGN, all work
required to correct any defects or deficiencies in the performance of Services, regardless of
whether the defect or deficiency relates to the work of the Consultant or of the Consultant's
sub -consultants or suppliers.
(3)
Risk of Loss. The Consultant bears the risk of loss in providing all Services. The Consultant is
responsible for any and all damages to property or persons arising from any Consultant
negligent or intentional error, omission, or act and for any losses or costs to repair or remedy
any work undertaken by MGN based on the Services as a result of any such error, omission, or
act. Notwithstanding any other provision of this Agreement, the Consultant's obligations
under this Section 7 exist without regard to, and may not be construed to be waived by, the
availability or unavailability of any insurance, either of MGN or the Consultant, to indemnify,
hold harmless, or reimburse the Consultant for damages, losses, or costs.
(4) Opinions of Probable Cost. The Parties recognize that neither the Consultant nor MGN has
control over the costs of labor, materials, equipment, nor services furnished by others nor over
competitive bidding, market nor negotiating conditions, nor construction contractors'
methods of determining their prices Accordingly, any opinions of probable costs provided
under this Agreement are considered to be estimates only, made on the basis of the
Consultant's experience and qualifications, and those opinions represent the Consultant's best
judgment as an experienced and qualified professional, familiar with the industry. The
374544_4
Consultant does not guaranty that proposals, bids, or actual costs will not vary from the
opinions prepared by the Consultant.
(5) Communications with Regulators. The Consultant must comply with all statutes, ordinances,
codes, and regulations applicable to the Services. Except to the extent expressly set forth in
this Agreement, the Consultant may not communicate directly with applicable governmental
regulatory agencies with regard to Services without prior express authorization from MGN.
The Consultant must either direct inquiries from governmental regulatory agencies to MGN for
appropriate response or respond on behalf of MGN as directed by the MGN Representative.
To the extent that the Consultant communicates directly with applicable governmental
regulatory agencies with regard to Services, it shall promptly (same day or within twenty (24)
hours) inform MGN of such communications, provide copies to MGN of any such written
communications (e.g., letters, emails, etc.) and shall copy the MGN Representative or the MGN
Working Group on its own communications to the governmental regulatory agencies, as
requested by MGN. In those cases that MGN will be either responding directly to the
regulatory agencies, or providing information to the Consultant to allow the Consultant to
respond, the response must be made within five (5) calendar days so as not to delay the
Project.
(6) Consultant Payments; Waivers of Liens. The Consultant must pay promptly for all services,
labor, materials, and equipment used or employed by the Consultant in the performance of
any Services and must not cause any materials, equipment, structures, buildings, premises,
and property of MGN to be impressed with any mechanic's lien or other liens. The Consultant,
if requested, must provide MGN with reasonable evidence that all services, labor, materials,
and equipment have been paid in full and with waivers of lien as appropriate.
Permits and Licenses. The Consultant, and its sub -consultants and sub -contractors, will assist
MGN in obtaining all permits and licenses, registrations, qualifications, and other
governmental authorizations required by all applicable laws and regulations that relate to the
performance of the Services. MGN retains responsibility to pay for all permits and licenses,
registrations, qualifications, and other governmental authorizations. If the Consultant pays for
any permits and licenses, registrations, qualifications, and other governmental authorizations
on behalf of MGN, the cost will be paid as an Additional Service (Subsection 6(E) in addition to
the Agreement not to exceed fee.
(7)
(8) Safety; Hazardous Materials.
Protection of Health Environment. The Consultant's personnel must be experienced
and properly trained to perform the Services and must take adequate precautions to
protect human health and the environment in the performance of Services.
ii. Notice of Hazardous Conditions. If the Consultant observes a potentially hazardous
condition relating to the Services, the Consultant must immediately bring that
condition to the attention of MGN.
Hazardous Materials. The Consultant acknowledges that there may be hazardous
substances, wastes, or materials as defined by applicable Law ("Hazardous Materials")
within the proposed Project area or otherwise associated with Services, and the
Consultant under those circumstances must take appropriate precautions to protect
its employees, sub -consultants, and suppliers, and shall advise in wriitng MGN of the
presence or suspected presence and location of such Hazardous Materials.
374544_4
B. MGN Responsibilities. Morton Grove and Niles, at their collective cost, agree as follows:
(1) To designate in writing a person with authority to act on behalf of MGN with respect to the
Services. The MGN Representative will have the authority to act on behalf of MGN, except on
matters that require approval of the respective corporate authorities of Morton Grove and
Niles or the MGN Working Group.
(2) To provide to the Consultant all criteria and information about the requirements for the
Services, including, as relevant, MGN's objectives and constraints, schedule, space, capacity
and performance requirements, and budgetary limitations.
(3) To provide to the Consultant existing studies, reports, and other available data relevant to the
Services.
(4) To arrange for access to, and make provisions for the Consultant (and its employees, sub -
consultants and sub -contractors) to enter on, public and private property as reasonably
required for the Services.
(5)
To provide, as relevant, existing surveys and GIS data describing physical characteristics, legal
limitations, and utility locations in Niles, Morton Grove, and Skokie for the Services and the
services of other consultants when the services of other consultants are requested by the
Consultant and are necessary for the performance of the Services. Note: Under the Scope of
Services, the Consultant is responsible for preparing or obtaining new surveys of the land and
utility locations under consideration for the Project.
(6) To provide structural, mechanical, chemical, air and water tests, tests for hazardous materials,
and other laboratory and environmental tests, inspections, and reports required by law to be
provided by MGN in connection with the Services, except the extent such tests, inspections, or
reports are part of the Services.
(7)
To review reports, documents, data, and all other information presented by the Consultant as
appropriate in a timely manner and to provide responses within five (5) calendar days of
receipt.
(8) To provide approvals from all governmental authorities having jurisdiction over the Services
when requested by the Consultant, except the extent such approvals are part of the Services.
(9) To attend meetings related to the Services.
(10) To give prompt written notice to the Consultant whenever MGN observes or otherwise
becomes aware of any development that affects the scope or timing of Services, except that
the inability or failure of MGN to give any such a notice will not relieve the Consultant of any
of its responsibilities under this Agreement.
SECTION 8. INDEMNIFICATION
A. Indemnification by Consultant.
(1) Morton Grove. To the fullest extent permitted by law, the Consultant shall defend, hold
harmless and indemnify the Village of Morton Grove and Morton Grove Affiliates from and
against any and all injury, death, loss, property damage, judgments, liens, claims, suits, liabilities,
actions, causes of action, demands, expenses, costs or other liabilities of any character (including
reasonable attorney fees and litigation costs) to the extent arising in whole or in part, relating to
374544-4
(3)
or resulting from the performance under this Agreement by the Consultant, and/or its
employees and its sub -consultants and sub -contractors, or others performing or furnishing any
Services directly or indirectly on the Consultant's behalf, including but not limited to: (a) failure
to comply with, or violation of, any federal, state or local law, statute, regulation, rule,
ordinance, order or governmental directive; (b) negligent acts, omissions or willful misconduct;
and (c) failure to comply with the terms, conditions, representations or warranties contained in
this Agreement. In connection with any such liabilities, the Village of Morton Grove and the
Morton Grove Affiliates shall have the right to defense counsel of their choice and the
Consultant shall be solely liable for all reasonable costs, fees and expenses of such defense. Any
insurance policies required to be maintained pursuant to this Agreement shall in no way limit
the extent of the Consultant's responsibility to indemnify as herein provided. The terms of this
indemnity shall survive the suspension, expiration or termination of this Agreement.
(2) Niles. To the fullest extent permitted by law, the Consultant shall defend, hold harmless and
indemnify the Village of Niles and Niles Affiliates from and against any and all injury, death,
loss, property damage, judgments, liens, claims, suits, liabilities, actions, causes of action,
demands, expenses, costs or other liabilities of any character (including reasonable attorney
fees and litigation costs) to the extent arising in whole or in part, relating to or resulting from
the performance under this Agreement by the Consultant, and/or its employees and its sub -
consultants and subscontractors-, or others performing or furnishing any Services directly or
indirectly on the Consultant's behalf, including but not limited to: (a) failure to comply with,
or violation of, any federal, state or local law, statute, regulation, rule, ordinance, order or
governmental directive; (b) intentional or negligent errors, acts, omissions or willful
misconduct; and (c) failure to comply with the terms, conditions, representations or
warranties contained in this Agreement. In connection with any such liabilities, the Village of
Niles and the Niles Affiliates shall have the right to defense counsel of their choice and the
Consultant shall be solely liable for all reasonable costs, fees and expenses of such defense.
Any insurance policies required to be maintained pursuant to this Agreement shall in no way
limit the extent of the Consultant's responsibility to indemnify as herein provided. The terms
of this indemnity shall survive the suspension, expiration or termination of this Agreement.
Kotecki Waiver. The Consultant (and all sub -consultants and sub -contractors into whose
subcontract this clause is incorporated) agrees to assume the entire liability for all personal injury
claims suffered by its own employees and waives any limitation of liability defense based upon the
Worker's Compensation Act and cases decided thereunder. The Consultant agrees to indemnify
and defend the Village of Morton Grove and the Morton Grove Affiliates and the Village of Niles
and the Niles Affiliates from and against all such loss, expense, damage or injury, including
reasonable attorney fees, which the Village of Morton Grove and the Morton Grove Affiliates and
the Village of Niles and the Niles Affiliates may sustain as a result of personal injury claims by the
Consultant's employees and by the sub -consultants and sub -contractors and their respective
employees, except to the extent those claims arise as a result of the Village of Morton
Grove's and the Morton Grove Affiliates' own negligence and the Village of Niles' and the
Niles Affiliates' own negligence.
C. No Personal Liability. No elected or appointed official or employee of the Village of Morton Grove
and the Morton Grove Affiliates and the Village of Niles and the Niles Affiliates shall be personally
liable, in law or in contract, to the Consultant as the result of the execution of this Agreement. No
employee of the Consultant, Sub -consultants, and Sub -contractors shall be personally liable, in law or
in contract, to MGN as the result of the execution of this Agreement.
SECTION 9. INSURANCE.
A. During the Term of this Agreement, or any extended term, the Consultant shall procure and maintain
the following insurance coverages: See Exhibit "E" attached to this Agreement.
374544_4
SECTION 10. CONFIDENTIAL INFORMATION; OWNERSHIP OF DOCUMENTS.
A. No Disclosure of Confidential Information. The Consultant acknowledges that it shall, in performing the
Services for MGN under this Agreement, have access, or be directly or indirectly exposed, to Confidential
Information, as defined below. The Consultant shall hold confidential all Confidential Information of
MGN, Morton Grove and Niles and shall not disclose or use such Confidential Information without the
express prior written consent of MGN, Morton Grove or Niles, depending on whose Confidential
Information is at issue. The Consultant shall use reasonable measures at least as strict as those the
Consultant uses to protect its own confidential information. Such measures shall include, without
limitation, requiring its employees and sub -consultants and sub -contractors of the Consultant to
execute a non -disclosure agreement (in a format approved by MGN) before obtaining access to
Confidential Information.
(1) Confidential Information. All confidential information and data disclosed by MGN and
developed or obtained from MGN under this Agreement must be treated by the Consultant as
proprietary and confidential information ("Confidential Information"). Based on whose
Confidential Information is at issue, the Consultant must not disclose Confidential Information
without MGN's or Morton Grove's or Niles' prior written consent. No person may use
Confidential Information for any purpose other than for the proper performance of the
Services. The obligations under this Section do not apply to Confidential Information that is (i)
in the public domain without breach of this Agreement, (ii) developed by the Consultant
independently from this Agreement, (iii) received by the Consultant on a non -confidential
basis from others who had a right to disclose the information, or (iv) required by law to be
disclosed, but only after prior written notice has been received by MGN or Morton Grove or
Niles and MGN or Morton Grove or Niles has had a reasonable opportunity to protect
disclosure of the Confidential Information. The Consultant must ensure that the foregoing
obligations of confidentiality and use extend to and bind the Consultant's employees, sub -
consultants and sub -contractors.
B. Ownership of Data and Documents. The Parties expressly agree that all data, documents, records, studies
or other information (collectively "Data") provided by MGN to the Consultant or generated, created,
found or otherwise completed by the Consultant, and its employees, sub -consultants and sub -contractors,
in the performance of Consultant's Services under the terms of this Agreement shall at all times remain
the proprietary information of and under the ownership of MGN and shall be provided to MGN by the
Consultant upon request of MGN, or at the termination of this Agreement. All Data, regardless of its
format, developed or obtained under this Agreement, other than the Consultant's confidential
information, will be and remain the sole property of MGN, unless Morton Grove and Niles agree that
certain portions of the Data is the sole property of either Morton Grove or Niles. The Consultant must
promptly deliver all Data to MGN at MGN's request. The Consultant is responsible for the care and
protection of the Data until that delivery. The Consultant may retain one or more copies of the Data.
Notwithstanding the foregoing, upon request of MGN at any time, or at the termination of this
Agreement, the Consultant shall promptly return to MGN all documents provided to the Consultant by
MGN during the Term of this Agreement.
C. Intellectual Property. The Consultant may not infringe on any intellectual property (including but not
limited to patents, trademarks, or copyrights) (collectively "Intellectual Property") in the performance
of Services. If ever the Consultant is alleged to have infringed on any Intellectual Property, then, in
addition to the Consultant's obligations to indemnify Morton Grove and Niles under this Agreement,
the Consultant also, at the sole discretion of MGN and at the Consultant's sole expense (a) procure for
MGN the right to continue using the infringing subject matter, or (b) replace or modify the infringing
subject matter so that it becomes non -infringing but still complies with the requirements of this
Agreement, or (c) reimburse MGN for all payments made to the Consultant relating to or impacted by
the infringing material and all costs incurred by MGN resulting from such infringement.
374544_4
D. Copyrights and Patents. The Consultant agrees not to assert, or to allow persons performing under the
Consultant's control to assert, any rights to Data or establish any claim under design, patent, or
copyright laws. It is expressly agreed that all copyrightable or patentable Data produced as part of
Services has been specifically commissioned by MGN and is considered "work for hire," and that all
copyrightable and other proprietary rights in that Data will vest solely in MGN. Further, the Consultant
agrees that all rights under copyright and patent laws under this Agreement belong to MGN. The
Consultant assigns any and all rights, title, and interests under copyright, trademark, and patent law to
MGN and agrees to assist MGN in perfecting the same at MGN's expense.
E. Advertisements. Media / New s Releases; Use of Letterhead or Logo. The Consultant, and its
employees, sub -consultants and sub -contractors, shall not issue any media news releases,
advertisements, promotional materials or other public statements regarding the Services without the
prior written consent of the MGN Working Group. The Consultant shall not use the letterhead or logo
or any servicemark or trademark of Morton Grove without the prior written consent of the Village
Administrator of Morton Grove and shall not use the letterhead or logo or any servicemark or
trademark of Niles without the prior written consent of the Village Manager of Niles.
SECTION 11. COMPLIANCE WITH LAWS.
A. Compliance with Laws. The Consultant, and its employees, sub -consultants and sub -contractors,
shall comply with any and all applicable laws, regulations and rules promulgated by any Federal,
State, County, local, or other governmental authority or regulatory body pertaining to all aspects of
the Services, now in effect, or which may become in effect during the performance of the Services.
The scope of the laws, regulations and rules referred to in this paragraph includes, but is in no way
limited to, the Occupational Safety and Health Act standards, the Illinois Human Rights Act, the
Illinois Equal Pay Act of 2003, along with the standards and regulations promulgated pursuant
thereto (including but not limited to those safety requirements involving work on elevated
platforms), all forms of traffic regulations, public utility, Interstate and Intrastate Commerce
Commission regulations, Workers' Compensation Laws, the Substance Abuse Prevention on Public
Works Projects Act, Prevailing Wage Laws, the Smoke Free Illinois Act, the USA Security Act, the
Federal Social Security Act (and any of its titles), and any other law, rule or regulation of the Illinois
Department of Labor, Illinois Department of Transportation, Illinois Environmental Protection Act,
Illinois Department of Human Rights, Human Rights Commission, EEOC, Metropolitan Water
Reclamation District of Greater Chicago, the Village of Morton Grove and the Village of Niles. In the
event that the Consultant, or its employees, sub -consultants and sub -contractors, in performing the
Services are found to have not complied with any of the applicable laws and regulations as required
by this Agreement, then the Consultant shall indemnify and hold MGN harmless, and pay all amounts
determined to be due from MGN for such non-compliance the Consultant, including, but not limited
to fines, costs, attorneys' fees and penalties.
(1) Employment of Illinois Workers on Public Works Act Compliance. To the extent required by
law, the Consultant agree to comply with the provisions of the Employment of Illinois Workers
on Public Works Act (30 ILCS 570/0.01 et seq.).
(2) Preference To Veterans Act Compliance. The Consultant will comply with the Preference to
Veterans Act (330 ILCS 55).
(3)
374544_4
Patriot Act Compliance. The Consultant represents and warrants to the Villages that neither it
nor any of its principals, shareholders, members, partners, or affiliates, as applicable, is a
person or entity named as a Specially Designated National and Blocked Person (as defined in
Presidential Executive Order 13224) and that it is not acting, directly or indirectly, for or on
behalf of a Specially Designated National and Blocked Person. The Consultant further
represents and warrants to the Villages that the Consultant and its principals, shareholders,
members, partners, or affiliates, as applicable, are not, directly or indirectly, engaged in, and
are not facilitating, the transactions contemplated by this Agreement on behalf of any person
or entity named as a Specially Designated National and Blocked Person. The Consultant hereby
agrees to defend, indemnify and hold harmless the Villages, their respective corporate
authorities, and all of each Village's elected or appointed officials, officers, employees, agents,
representatives, engineers, and attorneys, from and against any and all claims, damages,
losses, risks, liabilities, and expenses (including reasonable attorneys' fees and costs) arising
from or related to any breach of the representations and warranties in this subsection.
B. The Parties to this Agreement shall further comply with all applicable federal, state and local laws,
rules and regulations in carrying out the t erms and conditions of this Agreement, including the
following:
(1) Certification. Each Party and its officers, corporate authorities, employees and agents certify
that they are not barred from entering into this Agreement as a result of a violation of either
720 ILCS 5/33E-3 or 5/33E-4 (bid rigging or bid rotating) or 5/33E-6 (interference with contract
submission and award by public official) or as a result of a violation of 820 ILCS 130/1 et seq.
(the Illinois Prevailing Wage Act) or as a result of: (1) a delinquency in the payment of any tax
administered by the Illinois Department of Revenue or any fee required by any unit of local
government or the State, unless the Party is contesting, in accordance with the procedures
established by the appropriate revenue act, its liability for the tax or the amount of the tax or the
fee, as set forth in Section 11-42.1-1 et seq. of the Illinois Municipal Code, 65 ILCS 5/11-42.1-1 et seq.
Each Party and its officers, corporate authorities, employees and agents further certify by
signing this Agreement that the Party and its officers, corporate authorities, employees and
agents have not been convicted of, or are not barred for attempting to rig bids, price-fixing or
attempting to fix prices as defined in the Sherman Anti -Trust Act and Clayton Act. 15 U.S.C. § 1
et seq.; and has not been convicted of or barred for bribery or attempting to bribe an officer or
employee of a unit of state or local government or school district in the State of Illinois in that
officer's or employee's official capacity. Nor has any of the Parties and their officers, corporate
authorities, employees and agents made admission of guilt of such conduct which is a matter
of record, nor has any official, officer, agent or employee of the Parties been so convicted nor
made such an admission.
(2) Non -Discrimination. Each Party and its officers, corporate authorities, employees and agents
agree not to commit unlawful discrimination and agree to comply with all applicable provisions
of the Illinois Human Rights Act, Title VII of the Civil Rights Act of 1964, as amended, the
Americans with Disabilities Act, the Age Discrimination in Employment Act, Section 504 of the
Federal Rehabilitation Act, and all applicable rules and regulations. Each Party maintains a
written Sexual Harassment Policy in compliance with Section 2-105 of the Illinois Human Rights
Act (775 ILCS 5/2-105(A)(4)). Each Party certifies that it is an "Equal Opportunity Employer" as
defined by federal and State laws and regulations, and agrees to comply with the Illinois
Department of Human Rights ("IDHR") Equal Opportunity Employment clause as required by
the IDHR's Regulations (44 III. Adm. Code, Part 750, Appendix A). As required by Illinois law
and IDHR Regulation, the Equal Opportunity Employment clause is incorporated by reference
in its entirety as though fully set forth herein. Each Party certifies that it agrees to comply with
the Prohibition of Segregated Facilities clause, which is incorporated by reference in its
entirety as though fully set forth herein. See, Illinois Human Rights Act (775 ILCS 5/2-105). See
also, Illinois Department of Human Rights Rules and Regulations, Title 44, Part 750.
Administrative Code, Title 44: Government Contracts, Procurement and Property Management,
Subtitle 8: Supplemental Procurement Rules, Chapter X: Department of Human Rights, Part
750: Procedures Applicable to All Agencies, Section 750.160: Segregated Facilities (44 Ill. Adm.
Code 750.160)
374544_4
(3) Illinois Freedom of Information Act. The definition of a public record in the Freedom of
Information Act (5 ILCS 140/1 et seq.) ("FOIA") includes a "public record that is not in the
possession of a public body but is in the possession of a party with whom the agency has
contracted to perform a governmental function on behalf of the public body and that directly
relates to the governmental function and is not otherwise exempt under this Act." (5 ILCS
140/7(2). Consequently, the Parties must maintain and make available to the other Parties,
upon request, their public records relating to the performance of this Agreement in
compliance with the requirements of the Local Records Act (50 ILCS 205/1 et seq.) and FOIA.
To facilitate a response by MGN to any FOIA request, the Consultant agrees to provide all
requested public records within five (5) business days of a request being made by MGN. The
Consultant agrees to defend, indemnify and hold harmless Morton Grove and Morton Grove
Affiliates and Niles and Niles Affiliates, and agrees to pay all reasonable costs connected therewith
(including, but not limited to, reasonable attorney and witness fees, filing fees and any other
expenses) for Morton Grove and/or Niles to defend any and all causes, actions, causes of action,
disputes, prosecutions or conflicts arising from the Consultant's actual or alleged violation of the
FOIA or the Consultant's failure to furnish all public records as requested by MGN. Furthermore,
should the Consultant request that Morton Grove or Niles utilize a lawful exemption under FOIA in
relation to any FOIA request thereby denying that request, the Consultant agrees to pay all costs
connected therewith (such as reasonable attorney and witness fees, filing fees and any other
expenses) to defend the denial of the request. The defense shall include, but not be limited to,
challenged or appealed denials of FOIA requests to either the Illinois Attorney General or a court of
competent jurisdiction. The Consultant agrees to defend, indemnify and hold harmless Morton
Grove and Morton Grove Affiliates and Niles and Niles Affiliates, and agrees to pay all costs
incurred by Morton Grove and/or Niles connected therewith (such as reasonable attorney and
witness fees, filing fees, penalties, fines, and any other expenses) to defend any denial of a FOIA
request pursuant to the Consultant's request to utilize a lawful exemption.
D. Consultant Representations.
(1) No Collusion. The Consultant represents and certifies that the Consultant is not barred from
contracting with a unit of State or local government as a result of: (1) a delinquency in the
payment of any tax administered by the Illinois Department of Revenue or any fee required by the
Village of Morton Grove and the Village of Niles, unless the Consultant is contesting, in accordance
with the procedures established by the appropriate revenue act, its liability for the tax or the
amount of the tax or the fee, as set forth in Section 11-42.1-1 et seq. of the Illinois Municipal Code,
65 ILCS 5/11-42.1-1 et seq.; or (2) a violation of either Section 33E-3 or Section 33E-4 of Article 33E
of the Criminal Code of 1961, 720 ILCS 5/33E-1 et seq. The Consultant represents that the only
persons, firms or corporations interested in this Agreement as principals are those disclosed to
MGN prior to the execution of this Agreement, and that this Agreement is made without collusion
with any other person, firm or corporation. If at any time it shall be found that the Consultant has,
in procuring this Agreement, colluded with any other person, firm or corporation, then the
Consultant shall be liable to the Village of Morton Grove and/or the Village of Niles for any
loss or damage that the Village of Morton Grove and/or the Village of Niles may suffer, and
this Agreement shall, at MGN's option, be null and void.
(2) Conflict of Interest.
(a) The Consultant represents and certifies that, to the best of its knowledge: (1) no
Morton Grove or Niles employee or agent is interested in the business of the Consultant
or this Agreement; (2) as of the date of this Agreement, neither the Consultant nor any
person employed or associated with the Consultant has any interest that would conflict
in any manner or degree with the performance of the obligations under this Agreement;
374544_4
(3)
and (3) neither the Consultant nor any person employed by or associated with the
Consultant shall at any time during the Term of this Agreement obtain or acquire any
interest that would conflict in any manner or degree with the performance of the
obligations under this Agreement.
(b) The Consultant a grees to perform no professional services during the Term of this
Agreement for any person, firm or corporation, for any project or work that may be
subject to review/inspection by Morton Grove or Niles, to occur or occurring within the
corporate limits of Morton Grove or Niles without notification to Morton Grove and/or
Niles prior to rendering services. The Consultant agrees to provide Morton Grove and
Niles with written notification whenever the Services provided under this Agreement
shall require the Consultant to review a project, business or work performed by any
other firm or corporation for whom the Consultant is or has within the previous twelve
(12) months provided professional services, or with any of the Consultant's partners or
principals that have a financial interest.
Compliance with Laws, Grant Regulations. All Services must be provided, performed, and
completed in accordance with all required governmental permits, licenses, or other approvals
and authorizations, and with applicable statutes, ordinances, rules, and regulations. The
Consultant also must comply with applicable conditions of any federal, state, or local grant
received by MGN with respect to this Agreement. The Consultant will be solely responsible for
any fines or penalties that may be imposed or incurred by a governmental agency with
jurisdiction over the Services as a result of the Consultant's improper performance of, or
failure to properly perform, any Services.
SECTION 12. DEFAULT AND TERMINATION OF SERVICES.
This Agreement is at -will and may be terminated by MGN at any time at MGN's convenience, without reason
or cause. If MGN terminates this Agreement without reason or cause, then MGN will liable to the Consultant
only for payment of all actual, completed, documented Services through the date of termination. The
Consultant shall not be entitled to Compensation of any kind, including without limitation for lost profit, for
any Services not performed by the Consultant.
B. Termination by Village for Breach. MGN at any time, by written notice, may terminate this Agreement
on account of breach by the Consultant and failure of the Consultant to cure the breach within ten (10)
calendar days after that written notice or such further time as MGN ma y agree, in MGN's sole
discretion, in response to a written notice from the Consultant seeking additional time to cure.
"Breach" by the Consultant includes (a) failure of the Consultant to adhere to any terms or conditions
of this Agreement, (b) failure of the Consultant to properly perform Services, (c) failure of the
Consultant to maintain progress in the performance of Services so as to endanger proper performance
of the Services within the Project Schedule, or (d) failure of the Consultant to have or maintain
adequate financial or legal capacity to properly complete any Services.
C. Village Remedies. If MGN terminates this Agreement for Breach by the Consultant, then MGN will
have the right, at its election and without prejudice to any other remedies provided by law or equity,
to pursue any one or more of the following remedies:
(1) MGN may recover from the Consultant any and all costs, including without limitation
reasonable attorneys' fees, incurred by MGN as the result of any Breach or as a result of
actions taken by MGN in response to any Breach.
(2) MGN may withhold any or all outstanding Compensation to reimburse itself or pay for any and
all costs, including without limitation reasonable attorneys' fees, incurred by MGN as the
result of any Breach or as a result of actions taken by MGN in response to any Breach. In that
374544_4
event, MGN will pay any excess funds to the Consultant, if any, after all of MGN's costs are
reimbursed or paid. If the Compensation withheld by MGN is insufficient to reimburse MGN
for, or pay, all costs, then MGN will has the right to recover directly from the Consultant a sum
of money sufficient to reimburse itself, or pay, all remaining costs.
D. Termination for Convenience. If, after termination of this Agreement by MGN for breach, it is
determined that the Consultant was not in breach or that the termination otherwise was irregular or
improper, then the termination shall be deemed to have been made for the convenience of MGN
under this Section 12.
E. Termination by Consultant for Breach. The Consultant at any time, by written notice, terminate this
Agreement on account of a failure by MGN to adhere to any terms or conditions of this Agreement and
a failure of MGN to cure the breach within ten (10) calendar days after that written notice or such
further time as the Consultant may agree, in the Consultant's sole discretion, in response to a written
notice from MGN seeking additional time to cure.
F. Termination by Consultant without Cause. The Consultant shall not terminate this Agreement without
cause.
SECTION 13. GENERAL PROVISIONS.
A. Amendment. No amendment or modification to this Agreement shall be effective until it is reduced to
writing and approved and executed by Morton Grove, Niles and the Consultant.
B. Assignment. The Consultant shall not assign this Agreement or any portion thereof without the prior
written approval of Morton Grove and Niles, which shall not be unreasonably withheld. The merger,
consolidation or liquidation of the Consultant or any change in the ownership of or power to vote equal
to twenty percent (20%) or more of the Consultant's capital stock, as held as of the date of execution of
this Agreement, shall be deemed an assignment; provided, however, that the transfer of ownership of
shares of capital stock between persons who, on the date of this Agreement, are owners of the
Consultant's capital stock or who are employees of Consultant, shall not constitute an assignment. In the
event that Morton Grove and Niles establish a water commission in accordance with applicable Illinois law in
order to further pursue this Project, then at the option of the water commission and upon written notice to
the Consultant, this Agreement shall be automatically assigned to the water commission without any further
action by the corporate authorities of the water commission or the Consultant. As part of the written notice
of assignment sent to the Consultant, an addendum to this Agreement that memorializes the assignment
shall be prepared and sent to the Consultant for execution.
C. Binding Effect. The terms of this Agreement shall bind and inure to the benefit of Morton Grove,
Niles and the Consultant, and their agents, successors and assigns.
D. Notice. All notices required or permitted to be given under this Agreement shall be in writing and shall
be delivered: (1) by personal delivery; (2) by a reputable overnight courier; (3) by certified mail, return
receipt requested, and deposited in the U.S. Mail, postage prepaid; or (4) by email delivery to the Party's
business email address set forth below. Unless otherwise expressly provided in this Agreement, notices
shall be deemed received upon the earlier of: (a) actual receipt; (b) one (1) business day after deposit
with an overnight courier, as evidenced by a receipt of deposit; (c) four (4) business days following
deposit in the U.S. mail, as evidenced by a return receipt; or (d) date of delivery of the email. By notice
complying with the requirements of this Section 13.D., each Party shall have the right to change the
address or the addressee, or both, for all future notices and communications to the other Party, but no
notice of a change of addressee or address shall be effective until actually received.
Notices and communications to Morton Grove and Niles shall be addressed to, and delivered at, the
following addresses:
374544_4
Attn: Village Administrator
Richard T. Flickinger Municipal Center
Village of Morton Grove
6101 Capulina Avenue
Morton Grove Illinois 60053
Phone: (847) 663-3001
Fax: (847) 370-1649
Email: rczerwinski@mortongroveil.org
With a copy to:
Corporation Counsel (same address as Village Administrator)
Email: tliston@mortongroveil.org
Attn: Village Manager
Village of Niles
1000 Civic Center Drive
Niles, Illinois 60714
Phone: (847) 588-8010
Fax: (847) 588-8051
Email: scv@niles.com
With a copy to:
Corporation Counsel (same address as Village Manager)
Email: dg@niles.com
Notices and communications to the Consultant shall be addressed delivered to the following address:
Attn: Larry Thomas, P.E.
Stanley Consultants, Inc.
8501 West Higgins Road
Suite 730
Chicago, Illinois 60631
Phone: (773) 714-2015 and Cellular Phone: (815) 355-0923
Fax: (773) 693-7690
Email: thomaslarry@stanleygroup.cpm
With a copy to:
Kale Knisley
Legal Department
Stanley Consultants, Inc.
225 Iowa Avenue
Muscatine, IA 52761
Phone: (563) 264-6507
Email: knisleykale@stanleygroup.com
E. Third Party Beneficiary. No claim as a third party beneficiary under this Agreement by any person, firm
or corporation shall be made or be valid against Morton Grove and Morton Grove's Affiliates and Niles
and Niles' Affiliates.
F. Provisions Severable. If any term, covenant, condition or provision of this Agreement is held by a
court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions
shall remain in full force and effect and shall in no way be affected, impaired or invalidated.
374544_4
G. Time. Time is of the essence in the performance of all terms and provisions of this Agreement.
H. Calendar Days and Time. Unless otherwise provided in this Agreement, any reference in this
Agreement to "day" or "days" shall mean calendar days and not business days. If the date for giving
of any notice required to be given, or the performance of any obligation, under this Agreement falls
on a Saturday, Sunday or federal holiday, then the notice or obligation may be given or performed on
the next business day after that Saturday, Sunday or federal holiday.
Venue and Governing Law. All questions of interpretation, construction and enforcement, and all
controversies with respect to this Agreement, shall be governed by the applicable constitutional,
statutory and common law of the State of Illinois. The Parties agree that, for the purpose of any
litigation relative to this Agreement and its enforcement, venue shall be in the Circuit Court of Cook
County, Illinois or the Northern District of the United States District Court, Chicago, Illinois, and the
Parties consent to the jurisdiction of said Courts for any such action or proceeding.
J. Authority to Execute.
(1) Morton Grove and Niles or MGN Water Commission. The Village of Morton Grove warrants and
represents to the Consultant and to Niles that the persons executing this Agreement on its behalf
have been properly authorized to do so by its corporate authorities. The Village of Niles warrants
and represents to the Consultant and to Morton Grove that the persons executing this Agreement
on its behalf have been properly authorized to do so by its corporate authorities. In the event that
Morton Grove and Niles establish a water commission in accordance with applicable Illinois law in
order to further pursue this Project, the corporate authorities of the water commission shall be
authorized to approve and execute this Agreement instead of the corporate authorities of Morton
Grove and Niles.
(2) The Consultant. The Consultant warrants and represents to MGN that
the persons executing this Agreement on its behalf have the full and complete right, power and
authority to enter into this Agreement and to agree to the terms, provisions and conditions set
forth in this Agreement, and that all legal actions needed to authorize the execution, delivery
and performance of this Agreement have been taken.
K. Entire Agreement. This Agreement constitutes the entire agreement between the Parties to this
Agreement and supersedes all prior agreements and negotiations between the Parties, whether
written or oral, relating to the subject matter of this Agreement.
L. Waiver. The failure of either Party to enforce any term, condition or covenant (herein referred to as
"provision") of this Agreement shall not be deemed a waiver or limitation of that Party's right to
subsequently enforce and compel strict compliance with such provision and every other provision of this
Agreement. No provision of this Agreement shall be deemed to have been waived by either Party unless
such waiver is in writing by said Party.
M. Survival. The aforesaid covenants, agreements, representations and warranties shall survive the
expiration or termination of this Agreement.
N. Counterpart Execution. This Agreement may be executed in counterparts, each of which, when
executed, shall be deemed to be an original, but all of which together shall constitute one and the
same instrument.
0. Cumulative Rights and Remedies. Unless expressly provided to the contrary in this Agreement, each
and every one of the rights, remedies, and benefits provided by this Agreement shall be cumulative
and shall not be exclusive of any other rights, remedies, and benefits allowed by law.
374544_4
P. Effective Date. This Agreement shall become effective on the date the last signatory signs this
Agreement.
IN WITNESS WHEREOF, t his Agreement was exe cuted on behalf of the Parties through their authorized
representatives, after all duly required corporate action was taken, as set forth below on the signature pages.
SIGNATURE PAGES AND EXHIBITS TO FOLLOW
374544_4
SIGNATURE PAGE FOR
CONSULTANT
IN WITNESS WHEREOF, the below authorized corporate officer of Stanley Consultants, Inc. signed this
Agreement pursuant to legal authority and direction granted to him/her by the required corporate action.
Stanley Consultants, Inc.
By:
Name:
Title:
Date: 2017
Attest:
By:
Name:
Title:
Date: 2017
374544_4
SIGNATURE PAGE FOR
VILLAGE OF MORTON GROVE
IN WITNESS WHEREOF, the below authorized officials of the Village of Morton Grove have signed this
Agreement pursuant to legal authorization granted to him/her under Article VII, Section 10 of the 1970 Illinois
Constitution, the Intergovernmental Cooperation Act (5 ILCS 220/1 et seq.) and the corporate approval granted
by passage of a Resolution by the Corporate Authorities of the Village of Morton Grove.
Village of Morton Grove
By:
Name: Daniel DiMaria
Village President, Village of Morton Grove
Date: , 2017.
Attest:
By:
Name: Connie Travis
Village Clerk, Village of Morton Grove
Date: 2017
Approved as to form and legality:
By:
Teresa Liston, Village Attorney
374544_4
SIGNATURE PAGE FOR
VILLAGE OF NILES
IN WITNESS WHEREOF, the below authorized officials of the Village of Niles have signed this
Agreement pursuant to legal authorization granted to him/her under Article VII, Section 10 of the 1970 Illinois
Constitution, the Intergovernmental Cooperation Act (5 ILCS 220/1 et seq.) and the corporate approval granted
by passage of a Resolution by the Corporate Authorities of the Village of Niles.
Village of Niles
By:
Name: Andrew Przybylo
Mayor, Village of Niles
Date: , 2017.
Attest:
By:
Name: Marlene Victorine
Village Clerk, Village of Niles
Date: , 2017
Approved as to form and legality:
By:
Danielle Grcic, Village Attorney
374544_4
Exhibit "A"
Request for Proposals
RFP Morton Grove and Niles — Detailed Water Supply Corridor and Route Study
Issue Date: October 12, 2016
(attached)
374544_4
Group Exhibit "B"
Consultant's Proposal for Services in regard to MGN RFP dated November 2, 2016
(incorporated by reference)
Final version of the Scope of Services dated January 4, 2017
(attached)
Projected Labor and Budget dated December 12, 2016
(attached)
374544_4
Exhibit "C"
Sub-consultant/Sub-contractor List
As of the execution of this Agreement, the Consultant will organize and manage a Project team inclusive of the
following sub-consultants/sub-contractors:
Robinson Engineering, LTD.
Strand Associates, Inc
Ciorba Group, Inc.
Merryman Excavation, Inc.
Santacruz Land Acquisitions
374544_4
Exhibit "D"
Compensation and Fee Schedule for Services in Regard to
RFP Morton Grove and Niles — Detailed Water Supply Corridor and Route Study
("Fee Schedule")
The Consultant's fees will be based on the total hours worked on the Project, including travel, plus expenses.
The Consultant's current schedule of Hourly Fees and Charges follows on the next page. The actual hourly
rates charged for individual employees will be based on their individual billing rates. The Consultant is
responsible and has the discretion for the allocation of costs to individual work items based on needed work
effort within the limits of the approved not to exceed values.
1. The Consultant's Fee for the Basic Services associated with the Water Supply Corridor and Route Study
and the IEPA Project Plan and Loan Application Preparation as described in Exhibit B Part 1, Sections A,
B, C, D, E, F, G.1 (Level A survey), and including labor and expenses will not exceed $660,486.
2. The Consultant's fee for the Basic Services associated with the Skokie Distribution System Repurposing
Study as described in Exhibit "B",Part 1, Section H including labor and expenses will not exceed
$57,244.
3. The Consultant's Fee for additional Authorization Level B survey field services and survey related
drafting services as may be required to complete the detailed survey of one water transmission main
route including labor and expenses as described in Exhibit "B",Part 1, Section 6.2 will not exceed
$93,118. NOTE: Before the Consultant commences Item 3 work, the corporate authorities of each
Village must approve the Item 3 work and the expenditure of funds to pay for the work.
4. The Consultant's Fee for additional Authorization Level C survey field services and survey related
drafting services as may be required to complete the detailed survey of a second water transmission
main route including labor and expenses as described in Exhibit "B",Part 1, Section G.3 will not exceed
$83,558. NOTE: Before the Consultant commences Item 4 work, the corporate authorities of each
Village must approve the Item 4 work and the expenditure of funds to pay for the work.
5. Compensation for Additional Services is not included in the Basic Services described in Exhibit B Part 1.
Additional Services agreed to by MGN, in writing, shall be compensated on an Hourly basis for labor
plus reimbursable expenses, in accordance with the Hourly Fees and Charges included with this exhibit
unless other compensation is agreed upon prior to performance of the services.
(Informational Note: The total Fee for Items 1 and 2 is $717,730.00)
374544_4
VILLAGE OF MORTON GROVE, ILLINOIS
VILLAGE OF NILES, ILLINOIS
WATER SUPPLY CORRIDOR & ROUTE STUDY
EXHIBIT D — COMPENSATION
HOURLY FEES AND CHARGES
CATEGORY HOURLY FEES
Principals $175 - $300
Project Managers $155 - $250
Lead Civil & Mechanical Engineers $120 - $220
Sr. Civil & Mechanical Engineers $120 - $170
Hydraulic Engineers $100 - $130
Civil & Mechanical Engineers & Architects $ 90 - $130
Structural & Electrical Engineers $120 - $170
I&C Engineers $120 - $160
Surveyors $ 90 - $140
Permit Engineers $120 - $160
Constructability Reviewer & Cost Estimator $140 - $250
Administrative Assistants $ 80 - $120
Designers $ 90 - $130
System Operations Engineer $130 - $160
Quality Assurance/Quality Compliance Engineers $160 - $250
Land Appraiser 5140 - $250
Reimbursable Costs*:
Travel: Cost + 10%
Filing Fees, Permits, Title Company Charges, &
Government Review Fees: Cost + 10%
Reproductions: Cost + 10%
Delivery Charges: Cost + 10%
Outside Consultants: Cost
*The Consultant may request reimbursement of these Reimbursable Costs, upon proper documentation, but
such reimbursement shall be paid as part of the payment of and within the dollar amount of the Not -To -Exceed
Fee. See, Section 6(A) above.
374544_4
Exhibit "E"
Insurance Requirements for the Consultant
A. Worker's Compensation as required by the Workers' Compensation Act of the State of Illinois with limits not
less than:
(1) Worker's Compensation: Statutory;
(2) Employer's Liability:
$500,000 injury -per occurrence
$500,000 disease -per employee
$500,000 disease -policy limit
Such insurance shall evidence that coverage applies in the State of Illinois.
B. Comprehensive Motor Vehicle Liability with a combined single limit of liability for bodily injury and property
damage of not less than $1,000,000 for vehicles owned, non -owned, or rented. All Consultant employees shall
be included as insureds.
C. Comprehensive General Liability with coverage written on an "occurrence" basis and with limits no less
than:
$2,000,000 Bodily Injury and Property Damage Combined Single Limit Coverage.
Coverages shall include:
- Broad Form Property Damage Endorsement
- Blanket Contractual Liability (must expressly cover the indemnity provisions of the Contract)
D. Professional Liability Insurance. With a limit of liability of not less than $5,000,000 per occurrence and
$5,000,000 in the aggregate and covering Consultant against all sums that Consultant may be obligated to pay
on account of any liability arising out of the Contract. The policy shall be written on an "occurrence" basis,
unless the policy that covers these Services is already in existence. If the existing policy is written on a
claims -made form, the retroactive date must be equal to or preceding the Effective Date of this Agreement
to cover the actual commencement date of any work and services that the Consultant or any sub -consultant
has performed in regard to this Project. If the policy is cancelled, non -renewed, or switched to an occurrence
form, then the Consultant must purchase supplemental extending reporting period coverage for a period of
not less than five (5) years after the Completion Date.
E. Umbrella Policy. The required coverages may be in any combination of primary, excess, and umbrella
policies. Any excess or umbrella policy must provide excess coverage over underlying insurance on a following -
form basis such that when any loss covered by the primary policy exceeds the limits under the primary policy,
the excess or umbrella policy becomes effective to cover such loss.
F. Village of Morton Grove, Village of Niles and the Morton Grove — Niles Water Commission as Additional
Insureds. Village of Morton Grove, Village of Niles and the Morton Grove — Niles Water Commission shall be
named as an Additional Insureds on all policies except for: Worker's Compensation and Professional Liability.
Additional Insured endorsement shall identify the Additional Insureds as follows: Village of Morton Grove,
including its former, current and future appointed and elected officials, officers, village president and trustees,
employees, agents, engineers, attorneys and representatives ("Morton Grove Affiliates") and Village of Niles,
including its former, current and future appointed and elected officials, officers, village president and trustees,
employees, agents, engineers, attorneys and representatives ("Niles Affiliates") and the Morton Grove — Niles
Water Commission, including its Board members and appointed officials, its officers, employees, agents,
engineers, attorneys, and representatives ("MG -N Commission Affiliates") (if created by Morton Grove and
Niles).
374544_4
G. Primary Coverage. The insurance coverage must be primary with respect to the Village of Morton Grove
and the Morton Grove Affiliates, the Village of Niles and the Niles Affiliates and the Morton Grove — Niles
Water Commission and the MG -N Commission Affiliates. Any insurance or self-insurance maintained by Village
of Morton Grove, Village of Niles and Morton Grove — Niles Water Commission will be excess of the
Consultant's insurance and will not contribute with it.
H. Reporting Failures. Any failure to comply with reporting provisions of any policy must not affect coverage
provided to the Village of Morton Grove and the Morton Grove Affiliates, the Village of Niles and the Niles
Affiliates and the Morton Grove — Niles Water Commission and the MG -N Commission Affiliates.
I. Severability of Interests/Cross Liability. The insurance must contain a Severability of Interests/Cross Liability
clause or language stating that the insurance will apply separately to each insured against whom claim is made
or suit is brought, except with respect to the limits of the insurer's ability.
J. Acceptability of Insurers. Insurance is to be placed with insurers with a Best's rating of no less than A-, VII
and licensed to do business in the State of Illinois.
K. Verification of Coverage. The Consultant must furnish Village of Morton Grove, Village of Niles and Morton
Grove — Niles Water Commission with certificates of insurance naming the Village of Morton Grove and the
Morton Grove Affiliates, the Village of Niles and the Niles Affiliates and the Morton Grove — Niles Water
Commission and the MG -N Commission Affiliates as additional insureds and with original endorsements
affecting coverage. The certificates and endorsements for each insurance policy must be signed by a person
authorized by that insurer to bind coverage on its behalf. The certificates and endorsements may be on forms
provided by Village of Morton Grove, Village of Niles and Morton Grove — Niles Water Commission and in any
event must be received and approved by Village of Morton Grove, Village of Niles and Morton Grove — Niles
Water Commission before any work commences. Other additional -insured endorsements may be utilized, if
they provide a scope of coverage at least as broad as the coverage stated on the ISO Additional Insured
Endorsements CG 2010 or CG 2026. MGN reserves the right to request a full certified copy of each insurance
policy and endorsement.
L. Sub -Consultants and Suppliers. The Consultant must include all sub-consultants/sub-contractors as insureds
under its policies or must furnish separate certificates and endorsements for each sub-consultant/sub-
contractor. All coverage for sub-consultant/sub-contractors are subject to all of the requirements stated in this
Agreement.
NOTE #1: Upon execution of this Agreement, the Consultant shall furnish to Village of Morton Grove, Village of
Niles and Morton Grove — Niles Water Commission satisfactory proof of coverage of the above insurance
requirements. Such proof shall consist of certificates executed by the respective insurance companies together
with executed copies of an "Additional Insured Endorsement" in a form acceptable to Village of Morton Grove,
Village of Niles and Morton Grove — Niles Water Commission. Said certificates shall expressly provide that, for
the duration of this Agreement, the insurance policy shall not be suspended, cancelled or reduced in coverage
or amount, except after thirty (30) calendar days prior notice by certified mail, return receipt requested, has
been addressed and provided to the Village Administrator of Morton Grove and the Village Manager of Niles at
their business addresses listed in Section 13 of the Agreement.
374544_4
Exhibit "F"
SERVICES CHANGE ORDER FORM
SERVICES CHANGE ORDER NUMBER
In accordance with Section _ of the Agreement dated 2017 between the MGN and the
Consultant, the Parties agree to the following Services Change Order:
1. Change in Services:
2. Change in Project Schedule (attach schedule if appropriate):
3. Change in Completion Date: All Services must be completed on or before: , 20
4. Change in Compensation:
ALL OTHER TERMS AND CONDITIONS OF THE AGREEMENT REMAIN UNCHANGED.
MGN CONSULTANT
MGN Representative Signature
Name (Printed or Typed)
Date Date
If compensation change is greater than $20,000 (individual request or in the aggregate) then Morton Grove's
and Niles' Board of Trustees approval and Village Presidents signatures are required.
Village President
Village President
174544_4
Date
Date
,20 .
,20 .
Legislative Summary
Ordinance 17-02
AN ORDINANCE APPROVING A SPECIAL USE PERMIT FOR A MASSAGE ESTABLISHMENT
AT 9400 WAUKEGAN ROAD, MORTON GROVE, ILLINOIS
Introduction:
Purpose:
Background:
Programs, Departs
or Groups Affected
Fiscal Impact:
Source of Funds:
Workload Impact:
Admin Recommend:
Second Reading:
Special Consider o
Requirements:
Submitted by:
Prepared by:
January 9, 2017
To approve a special use permit for a Massage Establishment that offers full-body massages at
9400 Waukegan Road.
Mr. Bob Xi, the prospective business owner and tenant ("Applicant"), and Mr. James Sideris,
("the Property Owner") of 9400 Waukegan Road ("the Property), filed an application for a
special use permit to allow for a Massage Establishment that offers full body and foot massages,
by licensed massage therapists, at the Property per Section 12-4-3:D of the Unified
Development Code. The establishment would occupy approximately 1,000 sq. ft. of tenant space
within the 9400-9416 Waukegan Road shopping center and is proposed to be open from
10:OOAM-9:OOPM Monday -Saturday and from 12:OOPM-8:OOPM on Sunday. The Applicant
owns and operates six similar facilities including "Feet First Reflexology Center" in Vernon
Hills and "Refresh Spa" in Calumet City Illinois. In accordance with Section 12-7-3:B, the
Applicant hired Kenig, Lindgren, O'Hara, Aboona, Inc. (KLOA) to complete a traffic and
parking impact statement for the proposed massage establishment ("Traffic and Parking Impact
Statement", prepared by KLOA, dated August 10, 2016, and updated on November 15, 2016).
KLOA concluded the parking demand for this project can be accommodated by the shared use
of the existing 33 space shopping center parking lot. The Traffic Safety Commission Chair
concurred with this conclusion, and pursuant to Section 12-16-4:A.2, waived the full review of
this application by the TSC. The Appearance Commission review was also not required since
there are no proposed changes to the building facade. Based on the application, supporting
documents and testimony presented at the November 21, 2016 Public Hearing, the Plan
Commission voted 6-0 (Khan absent) to recommend approval of this application with
conditions.
The operation of this establishment will be governed by Title 4 Chapter 6J which was approved
by the Village Board on December 12, 2016 pursuant to Ordinance 16-26 , which imposes
minimum standards and requirements for the operation of massage establishment. These
regulations require all massage establishments to be licensed and regularly inspected. This will
be the first massage establishment licensed under these new and more stringent regulation.
Community and Economic Development
N/A
N/A
Community and Economic Development in the normal course of business.
Approval as presented
January 23, 2017
R
illage Administrator
Reviewed by
Teresa Hoffman List on/iC rporation Counsel
' . zev h, immunity . anomic Development Director
ORDINANCE 17-02
AN ORDINANCE APPROVING A SPECIAL USE PERMIT FOR A MASSAGE
ESTABLISHMENT AT 9400 WAUKEGAN ROAD, MORTON GROVE, IL
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a
home rule unit of government under the provisions of Article 7 of the 1970 Constitution of the State
of Illinois, can exercise any power and perform any function pertaining to its government affairs,
including but not limited to the power to tax and incur debt; and
WHEREAS, 9400 Waukegan Road is an approximately 1,000 sq. ft. tenant space, within an
existing multi -tenant shopping center, commonly known as 9400-9416 Waukegan Road, Morton
Grove, Illinois; and
WHEREAS, the property is located in the Cl General Commercial District; and
WHEREAS, Section 12-4-3:D of the Unified Development Code requires a Special Use
Permit for any Massage Establishment that offers full-body massages; and
WHEREAS, Bob Xi, the owner and operator of the proposed massage establishment
("Applicant"), and James Sideris, the owner of the subject property ("Property Owner"), filed
proper application to the Plan Commission in the Village of Morton Grove under case number
PC16-09 requesting a special use permit for a massage establishment at the property commonly
known as 9400 Waukegan Road, Morton Grove, Illinois 60053 to allow for a Massage
Establishment that offers full body and foot massages; and
WHEREAS, the Applicant currently owns and operates six (6) existing massage
establishments, including two within the Chicago metropolitan area, and has stated that the
proposed Massage Establishment at 9400 Waukegan Road will be operated in a similar manner to
his existing establishments; and
WHEREAS, upon receipt of the Special Use application, the Village staff advised the
Applicant and Property Owner that the Village was in the process of modifying the Village Code
relating to Massage Establishments and Massage Therapists and the Applicant and Property Owner
acknowledged and agreed that if their Special Use application was approved they would be required
to comply with the new regulations, as adopted; and
WHEREAS, pursuant to the applicable provisions of the Municipal Code, notice of the
public hearing was duly published in the Pioneer Press, a newspaper of general circulation in the
Village of Morton Grove, on September 1, 2016 and signs were duly posted on the property and
written notification sent to property owners within 250 feet of the subject property on September 9,
2016; and
WHEREAS, the proposed Massage Establishment will offer foot and full body massages by
licensed massage therapists, primarily on a walk-in basis; and
WHEREAS, in 2013 the Board of Trustees reviewed and approved an application for a
Special Use for a parking waiver in excess of 35% for the 9400-9416 Waukegan Road granting a 21
stall waiver for the shopping center in association with the establishment of a restaurant within the
same 9400 Waukegan Road tenant space (Ord. 13-02); and
WHEREAS, the proposed Massage Establishment will have shared access to the 33 parking
spaces that currently exist at the 9400-9416 Waukegan Road shopping center; and
WHEREAS, in accordance with Section 12-7-3:B of the Village Code, the applicant
submitted a traffic and parking study by Kenig, Lindgren, O'Hara, Aboona, Inc. (KLOA) that stated
the proposed Massage Establishment would have a projected parking demand of four (4) -to five (5)
spaces, which KLOA believe can be accommodated by the shared parking within the existing 33
stall lot ("Traffic and Impact Parking Statement Proposed Massage Parlor," prepared by KLOA,
dated August 10, 2016; REV: November 15, 2016); and
WHEREAS, based on the parking requirements established in the Village Code and
KLOA's analysis, the proposed massage establishment use is expected to be less intense than the
previous restaurant use that occupied the 9400 Waukegan Road tenant space and as such no
additional parking waivers are required in association with this Special Use application; and
WHEREAS, in accordance with Section 12-16-4:A.2, the chairperson of the Traffic Safety
Commissions (TSC) reviewed the application and traffic and parking study, concurred with the
KLOA determination that the proposed use would have an insignificant negative impact, and
waived the full TSC review; and
WHEREAS, as required by ordinance, the Morton Grove Plan Commission held a public
hearing relative to the above referenced case, which was originally scheduled for September 19,
2016 and, as requested by the Applicant and Property Owner, was continued to October 17, 2016
and again to November 21, 2016. At the November 21, 2016 public hearing all concerned parties
were given the opportunity to be present and express their views for the consideration by the Plan
Commission; and
WHEREAS, as a result of said public hearing, the Plan Commission made certain
recommendations and conditions through a report dated January 3, 2017, a copy of which is
attached hereto and made a part hereof and marked as Exhibit "A"; and
WHEREAS, subsequent to the close of the Plan Commission public hearing the Village
Board adopted Ordinance 16-26, "Massage Establishments and Massage Therapists," and in order
to ensure compliance with the new regulations, the Applicant make slight modifications to the
previously submitted interior building plan and filed such updated plan with the Village on
December 15, 2016; and
WHEREAS, such modification to the interior building plan did not alter the intent or
intensity of the proposed message establishments and was modified plan was reviewed by the
Chairperson of the Plan the Commission and deemed to be in substantial compliance with the plans
and Special Use application recommended for approval by the Commission; and
WHEREAS, the Corporate Authorities have considered this matter at a Public Meeting and
find pursuant to the relevant provisions of the Village of Morton Grove Unified Development Code,
this Special Use to establish a massage establishment at 9400 Waukegan Road shall be issued
subject to the conditions and restrictions as set herein.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS, AS
FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing WHEREAS
clauses into this Ordinance, as though fully set forth herein, thereby making the findings as
hereinabove set forth:
SECTION 2: The property located at 9400 Waukegan Road, Morton Grove, Illinois 60053,
is hereby granted a special use permit to allow a Massage Establishment with full body and foot
massages, and such special use shall be located and operated at that address subject to the following
conditions and restrictions which shall be binding on the owners/lessees, occupants and users of this
property, their successors and assigns for the duration of the special use:
1. The building shall be developed and operated consistent with the plans and supporting
documents in the application, identified in this report and/or presented at the Public Hearing,
including the following:
A. Proposed Floor Plan, prepared by Bob Xiang, dated September 1, 2016; REV:
December 15, 2016; and
B. Traffic study " Traffic and Impact Statement Proposed Massage Parlor", prepared by
KLOA, dated August 10, 2016; REV: November 15, 2016
2. The applicant shall advise the Director of Community and Economic Development of any of
the following:
A. any proposed change in ownership of the subject property and/or principal business;
B. any change in hours of operation,
C. any alterations to or changes in uses or configuration of any of the interior spaces;
D. any increases in staffing levels above those projected in the KLOA traffic study
"Traffic and Impact Statement Proposed Massage Parlor", dated August 10 , 2016;
REV: November 15, 2016; and
E. any other changes to the massage establishment use that could increase the intensity
and/or increase the parking demand.
Such changes may require the owners, lessees, and users of 9400 Waukegan Road to
submit an updated parking analysis, and may subject the owners, lessees, and users
of 9400 Waukegan Road to additional conditions and may serve as the basis for
further amendment to the special use permit.
3. Prior to the issuance of any certificates of, the applicant shall provide a statement as to
whether the funding source for the opening of the massage establishment is the Applicant, or
a State or federally regulated financial institution or some other person or entity. If the
funding source is other than the Applicant or a State or federally regulated financial
institution, the name, current address, and current telephone number of the funding source
shall be supplied; and
4. Prior to the issuance of any certificates of occupancy or annual renewal of the Business
Compliance Certificate, the Applicant shall provide written statement with the current
name(s), address(es), and telephone number(s) of all licensed massage therapist(s) at this
establishment. In addition, Applicant shall provide a certified copy of each of such massage
therapist(s) license(s) as regulated by the Illinois Department of Professional Regulation.
5. If the Applicant hires any new massage therapists at any point after issuance of the
certificates of occupancy or annual renewal of the Business Compliance Certificate, the
Applicant shall provide the Village all the information and documents listed in 4., above,
prior to any such new massage therapists starting work at this Establishment.
6. If the Applicant wants to modify the design of individual massage rooms to install doors
instead of curtains, as currently proposed on the approved Plans, the Applicant shall notify
the Director of Community and Economic Development of such proposed change and
provide updated floor plans for review. In no event shall any such future doors be equipped
with locking devices and shall not be blocked or obstructed from either side. Such a
proposed modification may result in the need for an amendment to the approved special use.
7. The Applicant shall ensure that all managers and staff who are employed at this
Establishment are aware of the conditions for this Special Use.
SECTION 3: The owners, lessees, occupants, and users of 9400 Waukegan Road, their
successors and assigns allow employees and authorized agents of the Village of Morton Grove
access to the premise at all reasonable times for the purpose of inspecting said premise to verify all
terms and conditions of this special use permit have been met.
SECTION 4: The special use is granted so long as the owner, occupant and users of this
property utilize the area for the purposes as herein designated.
SECTION 5: The Village Clerk is hereby authorized and directed to amend all pertinent
records of the Village of Morton Grove to show and designate the special use as granted and
amended hereunder.
SECTION 6: The Applicant/Owner shall comply with all requirements of the Village of
Morton Grove Ordinances and Codes that are applicable.
SECTION 7: This Ordinance shall be in full force and effect from and after its passage,
approval and publication in pamphlet form according to law.
PASSED this 23`d day of January 2017.
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED by me this 23`d day of January 2017.
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
APPROVED and FILED in my office this
23`d day of January
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
Community & Economic Development Department MORTON GROVE
Incredibly Close =( Amazingly Open
To: Village President and Board of Trustees
From: Steven Blonz, Chairperson, Plan Commission
Nancy Radzevich, AICP, Community and Economic Development Director
Dominick A. Argumedo, AICP, Zoning Administrator/Land-Use Planner
Date: January 3, 2017
Re: Plan Commission Case PC16-09: Request for a Special Use Permit for a
Massage Establishment, in accordance with Section 12-4-3:D. of the
Unified Development Code (Ordinance 07-07) at 9400 Waukegan Road
Commission Report
Public Notice
The Village of Morton Grove provided Public Notice for the September 19, 2016 Plan
Commission public hearing for PC 16-09 in accordance with the Unified Development Code. The
Pioneer Press published the public notice on September 1, 2016, and the Village notified
surrounding property owners via mail on September 2, 2016 and placed a public notice sign on
the subject property on September 9, 2016.
After notification of the public hearing, staff noted that some site improvements that had
previously been approved for the 9400 Waukegan Road location were not yet complete. The
applicants requested to continue the case until those could be finalized. At their September 19,
2016 and again October 17, 2016 meetings, the Plan Commission voted unanimously to support
the request to continue the public hearing to a date certain, with the final continuance to
November 21, 2016. In the interim the site improvements were completed.
Property Background
The subject property is improved with a 9,300 sq. ft. multi -tenant commercial building and a 33
space parking lot, and is zoned C1 General Commercial District.
Overview of the Application
Mr. Bob Xi, the prospective tenant ("Applicant"), and James Sideris, the property owner
("Property Owner"), filed an application for a special use permit to allow for a Massage
Establishment at 9400 Waukegan Road. The Applicant, who operates similar facilities in Vernon
Hills (Feet First/Reflexology Center) and in Calumet City (Refresh Spa), proposes to offer full
body and foot massages. The establishment is proposed to be open from 10:OOAM-9:OOPM
Monday -Saturday and from 12:OOPM-8:OOPM on Sunday.
Section 12-4-3:D of the Unified Development Code requires a Special Use Permit for any
Massage Establishment that offers full-body massages.
Per Section 12-7-3:B of the Unified Development Code, proposed parking standards identified in
the code as "Required Spaces By Use" shall be advisory only for Special Use applications as the
required parking will be reviewed and established as part of the Special Use Permit. The final
number of required parking spaces for Special Use Permits is set by the Village Board based on
the submitted independent traffic and parking study and any traffic and parking
recommendations by the Traffic Safety and Plan Commissions and/or staff.
November 21, 2016 Public Hearing
Mr. Dominick Argumedo, Zoning Administrator/Land-Use Planner, introduced the case and
summarized the Plan Commission staff report dated November 15, 2016, which was entered, in
its entirety, into the public record. (Attachment 1)
Mr. Bob Xi was sworn in and provided an overview of the proposed facility's operations. Mr. Xi
noted that this would be his 7th location. In addition to the two Chicago area locations, he has
establishments in Ohio and West Virginia. Mr. Xi expects that 60% of his business would be
from foot massages and the remaining 40% from full body massages.
Commissioner Gabriel asked if the proposed establishment would operate mainly on
appointments — Mr. Xi responded that his business works mainly on walk-in customers. Mr.
Gabriel asked Mr. Xi has what the typical wait times are under his business model — particularly
at busy times. Mr. Xi responded that customers do typically have to wait, but on those rare
occasions when they do, patrons have not waited longer than 20 minutes.
Chairperson Bionz confirmed with Mr. Xi that curtains will be used on the individual rooms.
Commissioner Dorgan asked if the Unified Development Code included any regulations about
the distance from the proposed establishment to Golf Junior High School across Waukegan
Road. Mr. Argumedo confirmed that the Unified Development Code does not include any
distance requirements between massage establishments and schools.
Mr. Shimanski made a motion to recommend approval of Case #PC16-09, a request for a
Special Use Permit for a Massage Establishment, in accordance with Section 12-4-3:D, at 9400
Waukegan Road, Morton Grove, IL, with the following conditions:
1. The building shall be developed and operated consistent with the plans and supporting
documents in the application, identified in this report and/or presented at the Public
Hearing, including the following:
A. Proposed Floor Plan, prepared by Bob Xiang, dated September 1, 2016
B. Traffic study "Parking evaluation North Shore Faucets Expansion", prepared by KLOA,
dated August 10, 2016; REV: November 15, 2016
2. The applicant shall advise the Director of Community and Economic Development of any of
the following:
A. any proposed change in ownership of the subject property and/or principal business;
B. any change in hours of operation;
C. any alterations to or changes in uses or configuration of any of the interior spaces;
D. any increases staffing levels above those projected in the KLOA traffic study "Traffic
and Impact Statement Proposed Massage Parlor", dated August 10, 2016, REV:
November 15 , 2016; and
E. any other changes to the massage establishment use that could increase the intensity
and/or increase the parking demand.
Such changes may require the owners, lessees, and users of 9400 Waukegan Road to
submit an updated parking analysis, and may subject the owners, lessees, and users of
2
9400 Waukegan Road to additional conditions and may serve as the basis for further
amendment to the special use permit.
3. The applicant shall provide a statement as to whether the funding source for the opening of
the massage establishment is the Applicant, or a State or federally regulated financial
institution or some other person or entity. If the funding source is other than the Applicant
or a State or federally regulated financial institution, the name, current address, and current
telephone number of the funding source shall be supplied.
4. Prior to the issuance of any certificates of occupancy and/or the Business Compliance
Certificates, the Applicant shall provide the current name(s), address(es), and telephone
number(s) of all licensed massage therapist(s) at this establishment. In addition, Applicant
shall provide a certified copy of each of such massage therapist(s) license(s) as regulated by
the Illinois Department of Professional Regulation.
5. The Applicant shall provide the Village all the information and documents listed in 4., above,
prior to any new massage therapists beginning to work at this Establishment.
6. If the operator of the massage establishment desires to modify the individual massage
rooms by switching from curtains to doors, the Director of Community and Economic
Development shall be notified and updated plans shall be submitted for review. In no event
shall any such future doors be equipped with any locking device and shall not be blocked or
obstructed from either side. Such a proposed modification may result in the need for an
amendment to any approved special use.
7. The Applicant shall ensure that all managers and staff who are employed at this
Establishment are aware of the conditions for this Special Use.
The motion passed unanimously 6-0 (Khan absent).
Subsequent to the close of the public hearing and action taken by the Plan Commission, the
applicant made a minor revision to the submitted floor plan to comply with Ordinance 16-26
"Massage Establishments and Massage Therapists," approved by the Village Board on December
9, 2016. Specifically, on the original plans, the applicant proposed to convert the existing
second restroom into a laundry area. The revised buildings plan, dated December 15, 2016,
shows both restrooms to remain to ensure the business will have dedicated restrooms for each
gender and the laundry area relocated to an area previously identified for use as storage.
On December 28, 2016, the Chairperson of the Plan Commission reviewed the modification to
the building floor plan and concluded that such modification did not change the intent or
intensity of the proposed Massage Establishment use or the special use permit and did not
warrant any further review by the Plan Commission.
3
Legislative Summary
Ordinance 17-03
AMENDING TITLE 5, CHAPTER 13, ARTICLE A, SECTION 1 ENTITLED "ONE-WAY STOP
INTERSECTIONS" AND TITLE 5, CHAPTER 13, ARTICLE F, SECTION 1 ENTITLED "NO PARKING
STREETS" OF THE MUNICIPAL CODE OF THE VILLAGE OF MORTON GROVE
Introduced:
Purpose:
Background:
Programs, Departs
or Groups Affected
Fiscal Impact:
Source of Funds:
Workload Impact:
Admin Recommend:
Second Reading:
Special Consideration
or Requirements:
January 9, 2017
To refine parking restrictions on the new configuration of Theobald Road, Mango Avenue and
South Park Avenue near the location where these streets previously intersected.
Resolution 16-40 authorized improvements at the intersection of Theobald Road, Mango
Avenue and South Park Avenue to improve the movements of vehicles and make a shorter
crossing for pedestrians along marked mid -block crosswalks. These improvements have created
a need to reconsider whether and how to redefine parking regulations and traffic control.
Village staff initiated a public review of recommended parking restrictions and traffic control
near this location. The Traffic Safety Commission (TSC) received a request for a proposal for
parking restrictions and traffic control on Theobald Road between Menard Avenue and Major
Avenue, and near the intersection of Mango Avenue with South Park Avenue. TSC reviewed
this request at their December 2016 meeting. There is one-way stop control on northbound
Mango Avenue at South Park Avenue and on westbound South Park Avenue at Theobald Road.
There is an existing parking regulation on the south side of Theobald Road from the centerline
of Mango Avenue to a point 195 feet east of the centerline of Mango Avenue. The Traffic
Safety Commission recommended deleting the stop sign restrictions at South Park Avenue and
Mango Avenue from Municipal Code Section 5-13A-1. They also recommended amending
Section 5-13F-1 to: (1) extend the existing parking restrictions on the south side of Theobald to
include the driveway west of the crosswalk; and (2) prohibit parking on the north side of
Theobald Road between the driveways east and west of the crosswalks as well as on both sides
of the curve where Mango Avenue meets South Park Avenue. The limits of the recommended
restrictions are illustrated in the attached Exhibit "A". This ordinance is intended to codify the
recommendations of the Traffic Safety Commission.
Public Works Department
Approximately $800 to install 16 signs
General Fund Account Number 025017-563130
The Public Works Department will replace the signs as part of their normal work day.
Approval as presented.
Required — Code Book Change — January 23, 2017
None
Respectfully submitted: / i ! Reviewed by:
Ralp E. Czerwinski, illage Administrator
Prepared by: �� Reviewed by:
Chris Tomich, Village Engineer
e, irector of Publ
Teresa lief
c Works
on, Corporation Counsel
ORDINANCE 17-03
AMENDING TITLE 5, CHAPTER 13, ARTICLE A, SECTION 1 ENTITLED "ONE-WAY STOP
INTERSECTIONS" AND TITLE 5, CHAPTER 13, ARTICLE F, SECTION 1 ENTITLED "NO
PARKING STREETS" OF THE MUNICIPAL CODE OF THE VILLAGE OF MORTON GROVE
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a home
rule unit of government under the provisions of Article 7 of the 1970 Constitution of the State of Illinois,
can exercise any power and perform any function pertaining to its government affairs, including but not
limited to the power to tax and incur debt; and
WHEREAS, Resolution 16-40 authorized improvements at the intersection of Theobald Road,
Mango Avenue and South Park Avenue to improve the movements of vehicles and make a shorter
crossing for pedestrians; and
WHEREAS, the improvements manifest a practical need to refine parking restrictions in this
vicinity; and
WHEREAS, the decision of whether and what parking restrictions and traffic control would be
needed was postponed until the improvements were finalized; and
WHEREAS, those improvements are now complete; and
WHEREAS, Village staff initiated a public review of recommended parking restrictions and
traffic control on Theobald Road, Mango Avenue and South Park Avenue; and
WHEREAS, the Village established the Traffic Safety Commission to receive, review, and present
recommendations to the President and Board of Trustees regarding requests or inquiries on matters
involving traffic safety, including requests for installation of traffic control devices; and
WHEREAS, the Traffic Safety Commission received a request to review a proposal for parking
restrictions and traffic control on Theobald Road between Menard Avenue and Major Avenue, and near
the intersection of Mango Avenue with South Park Avenue; and
WHEREAS, the Traffic Safety Commission, at its regularly scheduled meeting at 7:00 pm on
December 1, 2016, at the Richard T. Flickinger Municipal Center, considered the above referenced
request; and
WHEREAS, notifications of the meetings were sent to residents in the area and Muslim Education
Center; and
WHEREAS, the Municipal Code includes one-way stop control on northbound Mango Avenue at
South Park Avenue and on westbound South Park Avenue at Theobald Road; and
WHEREAS, the Municipal Code includes a parking regulation on the south side of Theobald
Road from the centerline of Mango Avenue to a point 195 feet east of the centerline of Mango Avenue;
and
WHEREAS, the Traffic Safety Commission recommended enacting parking regulations consistent
with limits shown in Exhibit "A" and also that stop signs at South Park Avenue and Mango Avenue be
removed.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS AS FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing WHEREAS clauses
into this Ordinance as though fully set forth therein thereby making the findings as hereinabove set forth.
SECTION 2: Title 5, Chapter 13, Article A, Section 1 entitled "One -Way Stop Intersections" of
the Municipal Code is hereby amended to delete the following restriction:
5-13A-1: ONE-WAY STOP INTERSECTIONS: The following intersections are hereby
designated as one-way stop intersections; and the superintendent of public works shall post
appropriate signs at all such intersections:
Street
Mango Avenue
South Park Avenue
Direction
Northbound
Westbound
At Its Intersection With
South Park Avenue
Theobald Road
SECTION 3: Title 5, Chapter 13, Article F, Section 1 entitled "No Parking Streets" of the
Municipal Code is hereby amended to delete the following restriction:
5-13F-1: NO PARKING STREETS: There shall be no parking at the times listed below on any of
the following streets; and the Director of Public Works or his designee shall place "no
parking" signs in or at suitable places within the no parking zones herein established which specify the
parking restrictions herein established:
Street
Between
Theobald Road From the centerline of Mango Avenue to a point along the
south side of Theobald Road 195 feet northeast of the
centerline of Mango Avenue
Side of Street
South
SECTION 4: Title 5, Chapter 13, Article F, Section 1 entitled "No Parking Streets" of the
Municipal Code is hereby amended to add the following restriction:
5-13F-1: NO PARKING STREETS: There shall be no parking at the times listed below on any of
the following streets; and the Director of Public Works or his designee shall place "no
parking" signs in or at suitable places within the no parking zones herein established which specify the
parking restrictions herein established:
Street Between Side of Street
Mango Avenue Midpoint of centerline curve with South Park Avenue Both
through curve to a point 55 feet south of the centerline
of South Park Avenue
South Park Avenue Midpoint of centerline curve with Mango Avenue Both
through curve to a point 55 feet east of the centerline
of Mango Avenue
Theobald Road A point 235 feet northeast of centerline of Menard South
Avenue to a point 195 feet northeast of the extended
centerline of Mango Avenue
Theobald Road A point 210 feet northeast of centerline of Menard North
Avenue to a point 235 feet northeast of the extended
centerline of Mango Avenue
SECTION 5: The Director of Public Works and/or his designee is hereby authorized and directed
to remove any conflicting signs and erect such signs as detailed in this Ordinance.
SECTION 6: This Ordinance shall be communicated to residents adjacent to the parking
restrictions via a letter, which shall be received as evidence of the passage and legal publication of this
Ordinance.
SECTION 7: This Ordinance shall be in full force and effect upon its approval and publication.
PASSED THIS 23`d DAY OF JANUARY 2017
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED BY ME THIS 23`d DAY OF JANUARY 2017
ATTESTED and FILED in my office
This 24th DAY OF JANUARY 2017
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
EXHIBIT "A"
RECOMMENDED LIMITS OF PARKING
Legislative Summary
Resolution 17-05
AUTHORIZING AN AGREEMENT BETWEEN THE VILLAGE OF MORTON GROVE AND
MATHER LIFEWAYS FOR THE USE OF THE CIVIC CENTER FOR SENIOR PROGRAMMING
Introduced:
Purpose:
Background:
Programs, Departs
or Groups Affected
Fiscal Impact:
Source of Funds:
Workload Impact:
Admin Recommend:
First Reading:
Special Consider or
Requirements:
Respectfully submitted:
Reviewed by:
Teresa Hoffbt L' to', Corporation Counsel
January 23, 2017
To authorize the Village of Morton Grove to enter into an agreement with Mather LifeWays, to
provide and coordinate a wide array of senior programming for Morton Grove residents,
especially for those over the age of 50, at the American Legion Memorial Civic Center.
Mather LifeWays, a non -denominational, not-for-profit organization based in Evanston Illinois
has contracted with the Village to operate programing for older residents at the American
Legion Memorial Civic Center since 2014. In a survey recently conducted by Mather LifeWays,
92% of participants believed Mather LifeWays provided good services to older adults and 92%
believed their expectations of the services offered at the Civic Center met or exceeded their
expectations.
This resolution will approve an additional one year non-exclusive license for Mather LifeWays
to operate programs at the Civic Center. Participation in these programs is open to all adults,
but the programs focus on activities and services desired by adults over the age of 50. Programs
provided directly by Mather LifeWays include lunch programs, I -pad and computer classes,
Boost your Brain and memory courses as well as Telephone Topics and other programs. Mather
LifeWays will maintain the Civic Center's status as a Senior Health Insurance Program (SHIP)
site and an AARP tax site. Mather LifeWays will also nurture/encourage/continue self -led
programs; coordinate Civic Center programs provided by community partners and other
organizations and conduct community outreach to fill programs and create lifelong learning
opportunities, and intergenerational programming for Village residents.
Administration
Mather LifeWays will not charge the Village to provide these programs, but may charge
participants a nominal fee. The Village will provide space, equipment, telephone, and internet
services as well as janitorial services and basic set-up services to Mather LifeWays.
Not applicable
The oversight of Mather LifeWays will be performed by Village staff during the normal course
of business.
Approval as presented.
Not required.
None.
ki,�iflage Administrator
1r
Prepared by.
Thomas J. Friel,
Administra
stant to the Village
RESOLUTION 17-05
AUTHORIZING AN AGREEMENT BETWEEN THE VILLAGE OF MORTON GROVE AND
MATHER LIFEWAYS FOR THE USE OF THE CIVIC CENTER
FOR SENIOR PROGRAMMING
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a home
rule unit of government under the provisions of Article 7 of the 1970 Constitution of the State of
Illinois, can exercise any power and perform any function pertaining to its government affairs,
including but not limited to the power to tax and incur debt; and
WHEREAS, the Village owns property located at 6140 Dempster Street, Morton Grove,
Illinois, commonly known as the American Legion Memorial Civic Center hereinafter referred to as
the "Civic Center"; and
WHEREAS, a portion of that building consists of space leased by and used exclusively by the
American Legion Post #134; and
WHEREAS, the remaining space has been used for the provision of Village services,
particularly senior and social services which provides various services and programs, along with the
rental of certain portions of the building for varied functions; and
WHEREAS, since 2001 the Village has provided programs for older residents at the American
Legion Memorial Civic Center; and
WHEREAS, in 2014 Mather LifeWays entered into an agreement with the Village to provide
senior programming at the Civic Center, and in 2016 the Village entered into a one-year extension of
that agreement with Mather LifeWays, a non -denominational not-for-profit organization, based in
Evanston, Illinois to operate senior programming at the Civic Center; and
WHEREAS, Mather LifeWays has made a proposal for 2017 to the Village to continue to
operate programs for all adults, but concentrating on activities and services desired by adults over the
age of 50; and
WHEREAS, pursuant to this proposal, Mather LifeWays will be granted a one year non-
exclusive license to use parts of the Civic Center in order to coordinate all programming, work with
community partners as directed by the Village to bring their programs onsite, nurture/encourage/
continue self -led programs, directly provide lunch programs, provide i -pad and computer classes,
Boost your Brain and memory courses, maintain status as a Senior Health Insurance Program (SHIP)
site, utilize current and generate new volunteers to support operations at the Civic Center, remain an
AARP tax assistance site, provide Telephone Topics, create lifelong learning opportunities, and work
with other organizations to create intergenerational programming, conduct community outreach to fill
programs and conduct other programs as agreed; and
WHEREAS, Village staff has negotiated an agreement with Mather LifeWays consistent with
its proposal, a copy of which is attached hereto; and
WHEREAS, it is in the best interest of the Village to approve this Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS AS
FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing WHEREAS
clauses into this Resolution as though fully set forth therein thereby making the findings as
hereinabove set forth.
SECTION 2: The Village President is hereby authorized to execute, and the Village Clerk is
hereby authorized to attest to an Agreement in substantial conformity with Exhibit "A" which is
attached hereto to provide specialized programs and services at the Civic Center for a term beginning
January 1, 2017 and running until December 31, 2017.
SECTION 3: The Village Administrator and/or his designee is hereby authorized to take all
steps necessary to implement the aforementioned Agreement with Mather LifeWays.
SECTION 4: This Resolution shall be in full force and effect upon its passage and approval.
PASSED this 23rd day of January 2017.
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED by me this 23`d day of January 2017.
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
APPROVED and FILED in my office
this 23`d day of January 2017.
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
EXHIBIT "A"
AGREEMENT BETWEEN
THE VILLAGE OF MORTON GROVE
AND
MATHER LIFEWAYS COMMUNITY INITATIVES, LLC
This document constitutes an agreement, herein "the Agreement," between the Village of Morton
Grove (VMG) located at 6101 Capulina Avenue, Morton Grove, IL 60053 and Mather LifeWays
Community Initiatives, LLC (MLCI), located at 1603 Orrington Avenue, Suite 1800, Evanston, IL
60201. VMG and MLCI shall be collectively referred to herein as the "Parties" or individually as a
"Party."
The Village of Morton Grove is a near north suburb of Chicago located 13 miles north of "The Loop,"
8 miles northeast of O'Hare Airport, and 6 miles west of Lake Michigan. Although primarily
residential, the Village has significant commercial and industrial areas. Approximately 20% of the land
in the community is owned by the Cook County Forest Preserve District and is set aside for open space
and recreation. The Community is the home of award-winning parks and schools.
Based in Evanston, Illinois, Mather LifeWays is a unique, non -denominational not-for-profit
organization founded more than 70 years ago. Dedicated to developing and implementing Ways to Age
Well, it creates programs, places, and residences for today's young -at -heart older adults. These include
making neighborhoods better places for older adults to live, work, learn, contribute, and play; and
identifying, implementing, and sharing best practices for wellness, and workplace programs.
The Village of Morton Grove aims to provide programs for its residents, including adults over the age
of 50 years at the American Legion Memorial Civic Center. Mather LifeWays is one of the Village of
Morton Grove's partners who can provide such programs for the Village of Morton Grove's residents
including adults over the age of 50 years. In addition, Mather LifeWays is able to coordinate and
facilitate programming at the American Legion Memorial Civic Center offered by other partners of the
Village of Morton Grove such as the Morton Grove Park District and the Morton Grove Library.
Term: The term of this Agreement shall be from January 1, 2017 through December 31, 2017.
Nature of Services: MLCI, an affiliated entity of Mather LifeWays, will create and provide engaging
experiences for the Village of Morton Grove's residents over the age of 50 years at the American
Legion Memorial Civic Center located at 6140 Dempster Street, Morton Grove, IL 60053. The Village
of Morton Grove understands and accepts that MLCI's programming will be offered to residents of
other near north suburbs including the Village of Skokie and the Village of Niles. MLCI will
coordinate programs with other organizations such as the Morton Grove Park District and the Morton
Grove Library. All parties will work to create and maintain an environment of trust and support.
MLCI will:
• Provide monthly "MORE Than a Lunch" experiences
• Provide technology offerings such as, iPad and computer classes
• Nurture/encourage/support self -led programs
• Offer Boost your Brain and Memory Program. Enrollment of 10 individuals is required for
Boost your Brain and Memory courses to occur.
• Based on demand, become a Senior Health Insurance Program (SHIP) site
1 1 t' <<
• Collaborate with the Morton Grove Park District and the Morton Grove Library so they bring
their programs onsite to the American Legion Memorial Civic Center
• Utilize current, and generate new volunteers to support operations at the Civic Center
• Support the Village of Morton Grove's initiatives for the Civic Center to become an AARP tax
site
• Based on demand and interest from residents, provide Telephone Topics
• Create lifelong learning opportunities and provide classes on a variety of topics, including but
not limited to the Arts, History, and Nature
• Collaborate with other organizations to create intergenerational programming
• Conduct community outreach to assist in generating attendance
• Provide other programs as mutually agreed upon
• Notify staff of the Village of Morton Grove of the need for replacement or repairs to the
American Legion Memorial Civic Center building
• Keep the three office spaces provided by the Village of Morton Grove clean and safe
VMG will:
• Maintain the American Legion Memorial Civic Center building and ensure compliance with all
building codes
• Make all repairs and conduct other necessary activities to put and keep the premises of the
American Legion Memorial Civic Center building in a habitable condition
• Keep all common areas of the premises of the American Legion Memorial Civic Center
building in safe condition. Common areas include but are not limited to the parking lot, entry
ways, hallways, and community spaces.
• Maintain in good and safe working order all facilities, including but not limited to the
electrical, plumbing, restrooms, heating, air conditioning of the American Legion Memorial
Civic Center building
• Provide and maintain operable smoke detectors and ensure compliance with all laws and
regulations pertaining to fire safety and other environmental hazards
• Maintain in good working order all existing equipment such as telephones, fax machine/copier,
computers, etc.
• As agreed by the Parties from time -to -time, provide set-up/break-down assistance for specified
programs. At the conclusion or within a reasonable period of time following the end of
programs and events, ensure the space used for programs and events is clean and free of debris.
Provide parking spaces.
• Provide secure storage space for program equipment (iPads, laptop computers, chafing dishes,
coffee carafes, etc.)
• Provide three office spaces and three dedicated telephone lines for the exclusive use of MLCI
during the term of this Agreement. Pay for the fees and expenses associated with the three
telephone lines.
• Provide Wi-Fi connectivity through the Village's network
• Provide front desk coverage to greet people, take reservations, answer phones, and direct to
programs and/or services
• Cooperate with MLCI to provide marketing support through existing media outlets (Village
Exchange, website, e -blasts, etc.)
• Coordinate programs presented by the Village of Morton Grove's social worker, and other
Village departments, such as the Police Department.
21
• Encourage Village Officials (elected or appointed) and staff to attend "MORE Than a Lunch"
or "Music and MORE" experiences
MLCI and VMG jointly will:
• Maintain open lines of communication among all parties
• Host a one-time social event or open house to invite Village residents and create a welcoming
environment. Marketing and press releases for said open house will be mutually agreed upon
by both parties and approved by both parties prior to use and distribution.
• Establish mutually agreed upon goals for daily(50), monthly(233), and yearly(2800)
attendance
• Establish mutually agreed upon hours of operation which are convenient for both Parties and
conducive to providing the nature of services contemplated by this Agreement
• Conduct regular meetings jointly with all involved parties including other partners of the
Village of Morton Grove, such as the Morton Grove Park District and the Morton Grove
Library. Frequency of these meetings will be mutually agreed upon but will initially occur on a
weekly basis in order to establish clear communication and foster team work.
• Engage in dialogue regarding the prospect of an ongoing relationship between MLW and VMG
No Creation of a Landlord Tenant Relationship: This Agreement does not create a landlord
tenant relationship between VMG & MLCI, and except as specifically agreed in writing by the Parties,
MLCI's right to the use of the Civic Center shall be non-exclusive and shall be for the sole purpose of
providing programs and services as contemplated by this Agreement.
Confidential Information and Confidentiality: VMG and MLCI agree the information
disclosed by the respective parties during the duration of the Agreement is Confidential Information
and proprietary to the respective parties. Confidential Information may include but is not limited to the
content, design, and development of MLCI's programs such as Boost your Brain and Memory and
Telephone Topics. Except where disclosure is required by law including the Illinois Open Meetings
Act, MLCI and VMG shall hold the same in confidence, shall not use the Confidential Information
other than for the purposes of business related to this Agreement and will not disclose, publish, or
otherwise reveal any of the Confidential Information to any other party whatsoever except with
specific prior written authorization.
VMG and MLCI agree use of corporate and identifying marks, and "logo(s)" may not be used
without the express written consent of the respective Party. Press releases and material referencing any
partnership or support between VMG and MLCI will be approved by both parties prior to use. VMG
and MLCI will agree in writing upon language to describe the general relationship and support.
Non -Disparagement:. During the term of this Agreement and thereafter, both Parties mutually
agree not to disparage either party. Disparage shall mean any negative statements, reviews, comments,
or feedback, whether written, oral, or electronic about either Party its employees, agents and or board
members.
Termination: This Agreement may be terminated by either Party without cause upon no less
than sixty (60) calendar days' notice, unless a lesser time is mutually agreed upon by both Parties in
writing. Said notice shall be delivered by certified mail, return receipt requested; in person with proof
of delivery; or, by facsimile machine to the addresses given below.
31
Disclaimer, Limits of Liability: Neither Party to this Agreement shall be liable for any
negligent or wrongful acts, either of commission or omission, chargeable to the other, unless such
liability is imposed by law. Both Parties shall indemnify and hold the other harmless for any claims,
damages or losses including attorneys fees relating to the alleged negligent or wrongful acts or
omissions of the other This Agreement shall not be construed as seeking to either enlarge or diminish
any obligation or duty owed by one Party against the other or against a third party.
Default, Disputes and Claims: All defaults by either Party regarding any obligation under this
Agreement shall be remedied by the defaulting Party in a reasonable manner and time period.
Disputes regarding such defaults will be resolved by non-binding voluntary arbitration according to
terms mutually acceptable to both Parties. Should a resolution not be reached through arbitration, then
the Party injured by the default must notify the defaulting Party in writing and bring legal proceeding
within one year of discovering the problem causing the default or waive the right to complain. The
non -prevailing Party shall, in addition to any other damages assessed, shall reimburse the prevailing
Party for all its costs associated with the arbitration and other legal action taken including reasonable
court costs and attorneys fees.
Insurance Requirements: MLCI Insurance: MLCI agrees to maintain professional and general
liability insurance, or self-insurance, in the minimum amount of $1,000,000 per claim or occurrence,
$3,000,000 aggregate, for its employees, agents, and servants (termed collectively MLW) with an
insurance carrier rated A- or better by AM Best Company. MLCI shall furnish VMG with a certificate
of insurance or other written document reasonably satisfactory to VMG as evidence of its insurance
coverage within thirty (30) days of the signing of this Agreement, and at least annually thereafter.
VMG Insurance: VMG is self-insured through the Intergovemmental Risk Management
Association (IRMA) which maintains, in the minimum amount of $1,000,000 per claim or occurrence,
$3,000,000 aggregate, for its employees, agents, and servants (termed collectively VMG). VMG shall
furnish MLW with a certificate of insurance or other written document reasonably satisfactory to
MLW as evidence of its insurance coverage within thirty (30) days of the signing of this Agreement,
and at least annually thereafter.
Force Majeure: Except for obligations to pay money where the other Party has performed the
service to which payment relates, neither Party shall be responsible for failure to fulfill its obligations
under this Agreement due to causes beyond its reasonable control, including but not limited to failure
by subcontractors or suppliers to furnish equipment, software, parts or labor; war, sabotage,
insurrections, riots, civil disobedience and the like, acts of governments and agencies thereof, labor
disputes, accidents, fires or acts of God. So long as any such delay or default continues, the Party
affected by the conditions beyond its control shall keep the other Party at all times fully informed
concerning the matters causing the delay or default and the prospects of their ending. In such event, the
delayed Party shall perform its obligations hereunder within a reasonable time after the cause of the
failure has been remedied, and the other Party shall be obligated to accept such delayed performance.
Assignment: This Agreement may not be assigned, in whole or in part, by either Party without
the prior written approval of the other Party.
4pi' a
Governing Law: This Agreement is to be governed and construed in accordance with the laws
of the State of Illinois. For venue purposes, it is deemed that all obligations of the Parties created
hereunder are performed in the State of Illinois.
Acceptance: This Agreement shall not be binding until signed by both Parties and approved by
the Board of Trustees of the Village of Morton Grove. The persons signing this Agreement represent
and warrant all articles including certifications are true and correct and that they have authority to bind
their respective Parties.
By:
Daniel P. DiMaria, Village President
Village of Morton Grove
6101 Capulina Ave., Morton Grove, IL 60053
Phone: 847.965.4100 Fax: 847.965.4162
Date
ddimaria@mortongroveil.org
Motion for Approval of this Agreement was made at the January 23, 2017, Village Board Meeting of
the Village of Morton Grove
Final Approval was given by the Village Board of Trustees of Village of Morton Grove on January 23,
2017.
Kate Paz, Director Program without Walls, Community Initiatives Date
Mather LifeWays
1603 Orrington Avenue, Ste 1800, Evanston, IL 60201
Phone: 847.663.3073 Fax: 847.965.3075 kpaz@matherlifeways.com
5IPa c.