1985-11-04 - Resolution 1985-60 - ACCEPTING THE NORTHWEST WATER COMMISSION AGREEMENT CONCERNING THE USE OF SETTLEMENT FUNDSRESOLUTION I!O. 85- 60
WIIEREAS, the Vlllage of Buffalo Grove is a Home-Rule Unit pursuant
to the Illlnols Constitution of 1970; and
WiEREAS, the Northwest l{ater Comrission has achleved a settlement
regarding certaln damage relatlve to the failure of the Division A
reservolr, that occurring on Sept€nber 4, 1984; and
WHEREAS, the Northwest Water Comission and member coununlties and
PRC Consoer Townsend, Inc. have formallzed an agreement on ho!, settlement
proceeds shal1 be used ln the restoratlon of the Dlvlsion A reservolr,
along with other resultant damages.
NOhI, TflERE}'ORE BE IT RESOLVED BY TIIE PRESIDEM A]SD BOARN OF TRUSTEES
OF TIIE VI1LAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS thAt:
SECTION 1 The Agreenent Regardin g The Settlement Fund attached to
this Resolution shall be executed by the Village President and
Vl11age Clerk as acceptance of the settlenent negotlated on behalf
of the llorthwest Water Commission and its members.
SECTIoN 2. The ordinance Authorizing An obligatlon to the l'lorthwest
llater Comnission for a ?roportlonate Share of Development, Constructlon
and Operating Costs, referenced as Exhibtt A in the Agreement shall be
fo'rmally considered by the President and Board of Trustees of the
Vtllage of Buffalo Grove as part of adopting thls Resolutlon and
Agreement.
AYES: 5 - Marienthal, OrReilly, Glover, Reid, Kowalskl
NAYES: 0 - None
ABSENT:
PASSED:
1- Shields
November 4,
A IIXSO1UTION ACCEPTIN/:] ]':HE NORTI{WEST WATER COMMISSION AEREEMENT
CONCERNIN4 THE USE OT' SETTIE},IENT FUNDS.
1985 .
1985 ,APPRoVED: November 4,
Village Pres ident
ATTEST:
7]t. K,-9;*
Vil1ag lerk
I
AGREEMENT REGARDING USE
OF SETTLEMENT FUNDS
THIS ACREEMENT, made and enLered inLo this
4rh day of Noverober , 1985, by and among the
Northwest l{ater Commission, an fllinois public corporation
and unit of local government duly organized and existing
pursuanL to the provisions of Division I35 of Article Il of
the rllinois Municipar code, as aoended (hereinafter referred
to as the rrConnission" ), and the Village of Arlington Heights,
the Village of Buffalo Crove, the Vitlage of palatine, and
the ViIlage of Wheeling, menbers..of the Commission and
municipal corporations in Cook and Lake Counties acting
pursuant to the Constitution and Laws of the State of IIIinois
(hereinafter colrectivery referred to as the ,,Municipalities,r),
I{HEREAS, the Conuission has undertaken the con_
struction of a water supply system (the rsystem" ) to provide
the Municipalities with a conmon source of supply of Lake
Michigan water; and
WHEREAS, the Comnission retained pn0 Consoer
Townsend, fnc. ("pRC") to provide engineering services in
connection with the Systetr, including specifically the
design Lhereof and inspection of its construction; and
!II!E!!!IT
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V r-/
IIHEREAS,. a- c_ritical and essential portion of
System, a reservoie,3l4-pumping _station Iocated at Wolf
Kensington Roads in., Des -p1aines, IlJ.inois (rDivision
was under construction when on Septeober 4, 19g4, a
naJor failure- (the. r'FaiLure" ) of, Lhe Division A reservoir
occurred, or otherwise becane Eanifest; and
: WHEREAS,. in addiLion to the direct structural
damaSl to the Division A reservoir, certain consequential
danages were incurred by the Conmission and each of the
Municipalities as a result of the Failure; and
WHEREAS,. in settlement of its share of potential
ll?!ili!v f?,r th: 1fo:":.i9,d.r?s""t. pRC has asreed ro pay
t',!99,000,i1 ca:l ,and:::Ii":: "!d ro provide an inreresr-
free loan of additional funds (.the upRC settlement fundsr,);
the
and
Ar )
and
WHEREAS, pursuant to the seLtleoent agreement
among PRC, the Comnissi* .nO the Municipalities, pRC has
transferred $2,225,000 in cash to the co,mission, and the
Commission has been holding said portion of the pRC settle_
oent funds in trust in a separate account for the benefit
of itself and the Municipalities; and
, WHEREAS, the Cgomlssion a1rd .th: Municipalities
"{?.e:t in the future r? lecoygl-1ddili-qnar suns frou The
George Sollitt Construction Conpany, various insurance
companies and others (the ,,other liable parLiestr) in conpen_
sation for damages resulting froo the Failure; and
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WHEREAS,
Commi ss i on
data
Lheto Commi ss ion
sums, the
to -prompt l y
deJ. ivery of
the actual amount o
the MunicipaliLies
pending the receipt of such additional
and the Municipalities desire to use
the PRC settleoent funds, on an interim basis, to finance
the repair, restoration and conpleLion of Division A so as:.-
place it in full operation for use in the
water to the Municipalities; and| :_-
I{HEREAS, to allow said interim use of the pRC:. .-settlenent funds, the Municipalities, and each of them, are::'willing to use other sources of funds to finance the
danages they have suffered in lheir individual capacities
and to advance Lheir shares of the pRC settleoenL funds to
the Commission; and
WHEREAS,Lhe entire needed to determine
t.'
and each ofid amage s
noL yet ava i lable; and
I{HEREAS, the Commission and the Municipalities:.:-have agreed upon an allocaIion of the pRC settleoent funds
based upon prelioinary estimat'es of the minimum amount of
damages suffered by each of them, so that the pRc settrenent
funds are Lo be allocated one_ha]f to the Commission and
one-half to the Municipalities, the Municipalities to share
.their one-hal f- equal ly; and -
STHEREAS, IIl. Rev. Siar. ch.24, f rl_135_I,:-:authorizes Lhe Municipalities lo obligite themselves for aproport,ionate share of SysLem developnenL, construction and
operating costs and provides that no prior appropriation
shall be required to incur such obligations; and
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suffered by each of them as a percentage of the actual
damages suffered by all of theE due to the Faiture. The
Comnission and l.iunicipalities agree that, in the event a
deterninaLion of EhETF-u I t ioate shares is made for valuing.:: :a credit to be given to other liable parties, said deter_
mination will have no inpact on the allocation of the
settleEent funds aEong themselves. Nothing in this Agreenent
will have any effect upon the detertrination of alrocations
atrong the Coomission and Municipalities j.n the event a
judgnent is entered against the Conmission relating to the
FaiIure.
3 Holdine of SeLLlem enL Funds. Based upon
:.4:.. -:.-: :::::1.the tentative atiocaiion t ""einaUove agreed upon, and in
order to comply wi fE _SeEt-fon -1o.-06 of- commission Ordinance
tii-,1 (tl,",alnato"ain"n"li), -the:commission
sna:.t deposit
$925,000 oi tne pnc sittieoent iunds in the Construction
Fund established pursuant io the Bond Orclinance as monies
received by it from a third party for damages to the
System, and said monies shalt be used in accordance with
the terms of this Agreement. (The balance of the Commission
share of the pRC seLtlemenL funds shall be received by it
in the form of the free """rio"" to be provided bo it by
FRC.
nonles coeprising Lhe
separate account for
be used or disbursed
Agreement.
PRC -settlement funds in trust in a
the benefii of the MunicipaLities to
in accordance rrith the teros of this
)The CommisSion shalf continue Lo hotd tfre remaining
lf Use of SetLlement Funds. The Commission
agrees to use the PRC settlement funds for the repair, re_
st.oration and completion of Division A. Each of Lhe Munici_
pafities hereby consents to the use of its tentative alroca-
tio.n -and ultiBate share of the pRC settlement funds for
such purposes, .but only_;.nhen and if other funds available
to th_e Comnission .for such purposes have been exhausted.
5. MunicipaJ.it y Advances.Each of the
MunicipaliLies I tentative allocations and/o
of _the PRC settlement funds which are usecl
restoration and completion of Division A sh
r ultimate shares
for the repair,
all be deemed to
tion and operaL-be advances of System develo 0enL,_ .constrxc
ing costs, advanced- gu_nsuant -to.III. Rev. Stat. ch. 24, $
I:l'-1-35-1. - Each o.f- the .lfuni.c i pa l i t i es agrees to adopt an
Ordinance, in substantia.Ily the form attached hereto as
Exhi bi t A, declar:ing the.ir.:.i nt ent_i on to nake such advances
in accordance with .this_ Agreement.
6.Additional Punds.The Commission and the
Municipalities hereby acknowledge and agree that, even
after the agre-ement of the Municipalities to advance their
fil II share of the pRC s_ettlenent funds to the Commission,
t}le .PBC seltleoent fuftds are no.t alone sufficient Lo pay
for the repatr., r:estoration and completion of Division A,
but are intended, along with other fund.s currently available
to.Lhe Comnission for such purposes, only Lo finance the
repair, restoration and conpl_.:LLon of Djvision A through
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the anticipated tine, of the receipt of the aforesaid additional
suns fron the other IiabLe parties for danages due to the
laiIure. Th: Comnission and the Municipalities agree to
use their rgspective best efforts to recover a1I amounts
9::, t!:, ll?T, !h: glher tiabte parties responsibte for the
Fai lure.
7 Re pa yment of Advance ;CondiLions of Repayment.
Subject
aSrees
liabIe
each of
pursuant
to the conditions hereinafter set forth, the
to use any additional. funds col.LecLed from Lhe
Conoission
other
parties for damages due to the Failure to repay
Lhe Municipalities the aoounts advanced by then
Lo !hi3,fs1""gEn!:,,r!"repayments provided for in
this paragraph shall be made only to the extent that excess
funds,-9r""=?ld 1boyg.th", total cost of the repair, restora_
!i31 ana complgtion of Division A, are collected froo the
other IiabL:_!::9i9" responsible for the Fai]ure. Even in
the_event that the Comoission collects excess funds fron
the other liable parties responsible for the Failure, the
Connission and le Municipalities agree tha! the Municipali_
tiesr rights to repayment under this paragraph shal. l be
subordinate to the Connission rs obligation to acquire and
operate a connon soufge of.supply,of lake Michigan water
and its prior obligations under the Bond ordinance. Accordingly,
iL is expressly agreed by the parties that the Comnissionrs
rgpayEent obligation under this paragraph shall be suspended
if and to the full extent necessary from time Lo time to
avoid a default on any of the Coamissionrs other obligaLions
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"no .""ron"(r1irr." as they co.e due i("r.-uains,
limitation, the naking of all deposits required
under the Bond 0rdinance.
wi thouL
to be nade
8.No Assignments. No right or interest in
this Agreenent shall be assigned, in nhole or in part, by
any party without the prior uritten consent of the other
parties hereto.
v.Entire ASreeoent.This Agreement sets
forth the entire understanding of the parties with respect
to the use of the PnC settleEent funds and supercedes aII
prior agreeEents on understandings pertaining thereto.
I0. Atrendtrents.I'Io anendment, change, nodifi-
cation or alteration of this Agreenent shall be effective
unless reduced to writing and duly approved and executed by
all of the parties hereto.
IN WITNESS WHEREOF, the parties hereto, acting
under the authority of their respective governing bodies,
have caused this Agreenent to be executed in five counter-
parts, each of which shall constitute an original, all as
of the day and year first written above.
NORTHWEST WATER COMMISSION
By:
ha i rman
ATTEST:
x cuLive lr Uor
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((_
ATTEST:
VILLAGE OF ARLINGTON HEIGHTS
By:
a8e resident
By:
Vi a8e res ident
VILLAGE OF PALATINE
Ia
( Sea l )
e k
&.e2*;^
A 1 1 EJ I :
I
AlTEJ1:
a8e erk(Seal)
/? - >'/*"2.---By:
a8e res enL
I
(
a8e er
Sea I )
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I
VILLACE OF BUFFALO GROVE
(
ATTEST:
% QA-1
Ii 1lage Cler(Seal)
VILLAGE OF WHEELING
By:
i I lage Pres i d ent
LLZ
-'t0-
v (
CExhibit A
AN ORDINANCE AUTHORIZING AN
NORTHWEST WATER COMMISSION FON
OBLIGATION TO THE
A PROPORTIONATE SHANE
AND OPERATING COSTSOF DEVELOPMENT CONSTRUCTION
I,IHEREAS, the Vi I lage of
(the "Villa8e") is a oember of the Northwest tlater Conmission
(the ."coomissionr ) ; and
WHEREAS, the Coouission is eonstructing a water
supply system (the nSystemn ) to provide the Village and
other Conmission nenbers and custoEers with a comoon source
of supply of Lake Michigan waterl and
ITHEREAS, the reservoir and puEping station
portion of the Systen (nDivislon Ar) experienced a EaJor
failure (the "Failurer ) xhile under construction; and
WHEREAS, the Failure has caused not only direct
structural danage to Division A, but also consequential
damages to the Village, the Conmission and other Comnission
membersl and
WHEREAS, the Coonission and its Eenbers have
reeeived certain funds in settleoent of liability for a
portion of the above-nentioned danages; and
WHEREAS, The Comoission and its Eembers have
entered into an Agreement regarding the use of said settle_
nent funds, which Agreenent requires the adoption of this
0rdinance.
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(
NOII, THEREF0RE, BE IT ORDAINED by the President
and Board of Trustees of the Village of
County ICounties], Illinois, as
follows:
SECTION ONE: Pursuant to I1l. Rev. SLat. ch.
24, t11-'135-1, and in the exercise of its houae rule powers
and its porrers and authority under the Int e rgovernmental
Coopelation provisions of'Article VII, Section l0 of the
1970 Illinois Constitution and the Illinois In te rgovernmen La I
C6operation Act (I11. Rev. Stat. ch. L27, tr74l et seq.),
the Village is hereby obligated to advance its tentatj.ve
a.lloaa,tion and/or- ul..tina.te. ahape of the- PRC settlement
funds, a1l as provided for in that certain nAgreement
Regarding Use of Settlement Funds,n dated
1985, as its proportionate share of Connission development,
construction and operating costs. The Village Manager is
hereby authorized and directed to Lake all actions necessary
to effectuate said advance in accordanee xith the terns of
the aforesaid Agreement.
. SECTI0N TWo: This ordinance shall be in full
force and effect froo and after its passage and approval in
the Danner providect by - IAw. ...'
((
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(._(.-
this _ day ofPASSED
AYES:
i NAYS:
.-, - ABSENT
ATTEST:
r985.
APPROVED Lhis _ day of r985.
l-, - - r' -
ViIlage Pres idenL
viI laSe . Clerk
3
.t,- ii,. Fi r,.-,,-