1993-43RESOLUTION NO. 93-43
A RESOLUTION APPROVING INTERGOVERNMENTAL AGREEMENT
REGARDING CONSTRUCTION AND INSTALLATION OF
A BOOSTER PUMPING STATION FOR THE
NORTHWEST WATER COMMISSION
WHEREAS, the Village of Buffalo Grove is a Home Rule Unit
pursuant to the Illinois Constitution of 1970; and
WHEREAS, the Village of Buffalo Grove is a member of the
Northwest Water Commission, who in cooperation with the Village,
intends to construct and operate the Lake -Cook Road Booster
Station.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES,
ILLINOIS, as follows:
Section 1. The Corporate Authorities of the Village of
Buffalo Grove hereby approve the Intergovernmental Agreement
Regarding Construction and Installation of a Booster Pumping
Station for the Northwest Water Commission, which is a_-tached
hereto and made a part hereof as Exhibit A and further authorize
the Village Manager to execute same.
Section 2. This Resolution shall be in full force and effect
after its passage and approval.
AYES: 6 - Marienthal, REid, Kahn, Rubin, Braiman, iiendric�s
NAYES : 0 - None
ABSENT: 0 -
PASSED:
September
20
=993
APPROVED:
September
20
ATTEST:
APPROVED: -
Villa e President
7
EXECUTION COPY
INTERGOVERNMENTAL AGREEMENT
REGARDING CONSTRUCTION AND INSTALLATION OF
A BOOSTER PUMPING STATION FOR THE
NORTHWEST WATER COMMISSION
THIS AGREEMENT, made and entered into this 29th day of
September, 1993, by and between the NORTHWEST WATER COMMISSION, a
water commission created and existing under the provisions of
Section 11- 135 -1 et seq. of the Illinois Municipal Code, 65 ILCS
5/11 -135-1 et sec. (the "Commission "), and the VILLAGE OF BUFFALO
GROVE,- an Illinois home rule municipal corporation ( "Buffalo
Grove ") ,
W I T N E S S E T H•
WHEREAS, the Commission and Buffalo Grove are parties to an
agreement dated April 4, 1983, entitled "First Amended Water Supply
Contract Between the Northwest Water Commission and the village of
Arlington Heights, the Village of Buffalo Grove, the village of
Palatine, the Village of Wheeling," as amended by the First
Amendment thereto dated September 15, 1990 and as further amended
by the Second Amendment thereto dated September 20, 1993
(collectively the "First Amended Water Supply Contract "); and
WHEREAS, the Commission desires to improve and expand its
Water Supply System (as defined in the First Amended Water Supply
Contract) to provide enhanced service and reliability to all of its
customers and to that end.has commissioned engineering studies of
various possible improvements, including a booster pumping station
near Lake-Cook Road in Buffalo Grove, Illinois (the "Lake-Cook Road
Booster Station "); and
operate the Lake -Cook Road Booster Station; and
WHEREAS, the Commission and Buffalo Grove are authorized to
enter into this Agreement pursuant to Section 10 of Article VII of
the Illinois Constitution of 1970, the provisions of the
- 2 -
EXECUTION COPY
Intergovernmental Cooperation Act, 5 ILCS 220/1 et seq. (1992) and
other applicable authority;
NOW, THEREFORE, in consideration of the foregoing and the
mutual covenants and agreements hereinafter set forth, the
Commission and Buffalo Grove hereby agree as follows:
1. Recitals. The foregoing recitals are incorporated in
this Agreement by this reference.
2. Commission Agreement to Develop the Lake -Cook Road
Booster Station.
A. The .Work. The Commission hereby agrees to do all
things and take all acts necessary to diligently prosecute and
cause (i) the acquisition of an appropriate site for and /or any
additional easements necessary in connection with the Lake -Cook
Road Booster Station (the "Booster Station Site ") and (ii) the
Lake -Cook Road Booster Station to be designed, licensed or
permitted (as and to the extent applicable), constructed and
installed on the Booster Station Site, all in general accordance
with the Preliminary Design and Location (collectively the "Work ").
B. Assistance. The Commission may retain such services
as it deems necessary to perform, or assist it in performing, the
Work, including without limitation consulting engineers,
architects, attorneys, and contractors.
C. Supervision and Standards. The Commission shall
have sole responsibility for, and complete control and supervision
of, the work and shall be the sole judge of whether the work meets
the requirements of the Commission.
- 3 -
no event more than the lesser of $300,000 or the total actual costs
and expenses, incurred by the Commission pursuant to said
Subsections for (i) acquisition of the Booster Station Site and
- 4 -
EXECUTION COPY
engineering services related to the design (but not the
construction) of the Lake -Cook Road Booster Station. The costs that
Buffalo Grove is obligated to pay pursuant to this Subsection 3A
shall be referred to as the "Buffalo Grove Inducement Costs".
B. Financing. The Commission anticipates issuing bonds
within a reasonable time following the execution of this Agreement
to refund certain revenue bonds previously issued by the Commission
(the new bonds to be referred to as the "Refunding Bonds ") . In
order to obtain financing on behalf of Buffalo Grove for the
Buffalo Grove Inducement Costs, the Commission agrees to increase
the principal amount of the Refunding Bonds issued by $2.0 million
(the "Booster Station Principal "). Buffalo Grove agrees to repay
to the Commission the Booster Station Principal and the interest
attributable to the addition of the Booster Station Principal to
the Refunding Bonds, in the manner provided in Subsection 3D below.
C. Booster Station Construction Account. Immediately
after the sale of the Refunding Bonds, the Commission shall deposit
the Booster Station Principal in a separate escrow account (the
"Booster Station Construction Account ") , with the Commission as
escrow agent, for the sole purpose of paying the Buffalo Grove
Inducement Costs. The funds in the Booster Station Construction
Account shall earn interest, but at no time shall such funds earn
interest exceeding the amount permitted by the documents governing
the Refunding Bonds or by law. All Buffalo Grove Inducement Costs,
as and when incurred by the Commission, shall be paid by the
Commission from the Booster Station Construction Account. The
Commission shall provide to Buffalo Grove evidence of the amounts
- 5 -
calculated in the same manner and based on the interest rates
actually incurred in the issuance of the Refunding Bonds. Such
payments shall be separate from and in addition to all amounts that
Buffalo Grove is required to pay pursuant to the First Amended
- 6 -
• •
EXECUTION COPY
Water Supply Contract. Buffalo Grove shall pay the amounts
required by this Subsection 3D in the same manner and on the same
schedule as provided for the payment of Annual Charges in Section
.5.a of the First Amended Water Supply Contract; provided, however,
that the Commission shall notify Buffalo Grove of the amounts due
under this Subsection separately from the notice of Annual Charges.
Upon receipt, the Commission shall treat such payments as
Commission Receipts and apply them to Commission Expenses, as
defined in, and pursuant to, Section 5.a of the First Amended Water
Supply_ Contract. Except as provided in the last sentence of
Subsection 3C above, Buffalo Grove shall make all payments due on
the dates shown on the revised Payment Schedule.
4. Termination of the Work by Buffalo Grove.
A. Right to Terminate. Buffalo Grove may terminate the
Work if the projected total of the Buffalo Grove Inducement Costs
exceeds the amount of the Booster Station Principal by more than
ten percent (10 %) at any of the following stages:
i. Completion of preliminary engineering and the
engineer's estimate of construction costs for the Lake -
Cook Road Booster Station;
ii. Completion of final engineering and the
engineer's estimate of construction costs for the Lake -
Cook Road Booster Station; or
iii. opening of bids for the contract to construct
the Lake -Cook Road Booster Station.
The Commission shall notify Buffalo Grove in writing of the
projected total of -the Buffalo Grove Inducement Costs at each of
these stages.
- 7 -
- 8 -
EXECUTXON COPY
D. Application of Booster Station Principal and Payment
of Additional Interest After Termination of Work. Following
receipt by the Commission of a notice to terminate Work pursuant to
Subsections 4A and 4B above, the parties shall take the following
actions:
i. the Commission shall arrange for the
termination of the Work in any orderly manner as soon as
possible thereafter, and Buffalo Grove shall cooperate
with the Commission in taking such actions;
ii. the Commission may pay any costs for which it
is to be reimbursed by Buffalo Grove in the manner
provided in Section 4C above;
iii. the Commission shall provide for the placement
and investment of any remaining funds in the Booster
Station Construction Account in a special fund (to be
established under the provisions of the ordinance
authorizing the Refunding Bonds), such funds to be
applied to the principal and interest to be due on the
portion of the Refunding Bonds attributable to the
Booster Station Principal and to costs reimbursable to
the Commission under Subsection 4C above;
iv. the Commission shall provide for the
determination, by competent persons, of any changes in
the amount, and due date for payment, of funds necessary
to pay all principal and interest due on the portion of
the Refunding Bonds attributable to the Booster Station
Principal as a result of the termination of the Work by
Buffalo Grove; and
V. the Commission shall notify Buffalo Grove of
any such changes in amounts due from time to time to
provide for the regular and orderly payment of all
principal and interest required on such portion of the
Refunding Bonds. The parties agree to promptly
substitute a revised Payment Schedule as Exhibit A to
reflect such changed payments, and due dates thereof, as
may be necessary as a result of the termination of the
Work. All payments made by Buffalo Grove pursuant to the
revised Payment Schedule shall be deposited in the
aforesaid special fund.
- 9 -
D. Counterparts. This Agreement shall be executed in
duplicate original counterparts, each of which shall be deemed to
be an original.
- 10 -
EXECUTXON COPY
E. Governing Laws. This Agreement and the rights of
the parties hereunder shall be interpreted according to the laws of
the State of Illinois.
F. Binding Effect. This Agreement shall be binding
upon the parties and upon their respective successors.
WHEREFORE, the Commission and Buffalo Grove have caused this
Agreement to be executed by their respective chief administrative
officers, pursuant to proper authorization of their respective
governing bodies, on the date first stated above.
NORTHWEST WATER COMMISSION VILLAGE OF BUFFALO GROVE
Execut ve Direct r Village Manager
` - 11 -
EXHIBIT A
AORTIMST WATER CONNISSION
SERIES 1993A
PORTION FOR
BUFFALO GROVE PROJECT
We of Bandar
01- May -93
Principal
Ir�taruat
and
- T�iis --._.
Date
Principal
Rate
Interest
Interaat
Year
I ®sue
01- Nov -93
$49,313.15
$49,373.15
01- May -94
2.600
49,373.75
49,373.75
1994
98,747.1
01- Nov -94
49,373.75
49,373.75
01- May -06
3,20094
49,373.75
49.373,75
1995
98,747.5
01- Nov -96
49.373.75
49,373.75
01- May -06
3.800%
49,373.75
49,373.75
1996
98,747.5
01- Nov -96
49073.75
49,373.75
01-May -97
50.000
31900%
49,373.75
99,373.76
1997
148,747.5
01- Nov -97
48,398.75
.48,398.75
01- May-98
60,000-
4.100%
48,398.75
108,398,75
1998
156.797.5
01- Nov -98
47,168.75
47,163.75
01- May -99
65,000
4.250%
47,168.75
112,168.75
1999
159,331.5
01- NOV-99
45,787.50
45,787.50
01 -May -2000
70,000
4,400%
45,787.50
115,787.50
2000
161,575.0
01- Nov -2000
44,247.50
44,247.50
01 -]Say -2001
73,000
4.500%
44,247.60
119,247.50
2001
163,495.0
01- Nov -2001
42,560.00
42,560.00
01- May -2002
85,000
4.600%
42,560.00.
127,560.00
2002
170.120.0
01 -Nov -2002
40,605.00
40,605.00
01 -May -2003
90,000
4.7007,
40,605.00
130,604.00
2003
171,210.0
01- Nov -2003
38;490.00
38,490,00'`
01-MY-2004
1561 000
4.8505
38,490.00
193,490.00
2004
231,980.0
01 -N'ov -2004
34,731.25
34,731.25 .
01-MAY -2005
3001000
51000%
34,731.25
334,731.25
2005
.3.69,462.6
01 -Nov -2005
27,231.25
27,231.25
01-they -2006
325,000
5.100*
27,231 ►25 .
352.231.25
2006
379.462.61
01- Nov -2006
18,943.75
18,943.75
01 -May -2007
350,000
5.200%
18,943.75
368,943.75
2007
387,887.5
01-Nov -2007
9,843.75
9,893,75
01 -May -2008
375,000
5.250%
9,843.75
384,$43.75
2008
394,687,$1
01 -pov -2008
01- May -2009
56300%
2009
01- Nov -2009
01- May- 2/0y10
5.350%
2010
01- Nov -2Vx0
01 -May -2011
5.400%
2011
01 -nov -2011
01- May -2012
5.450%
2012
01- Nov -2013
01 -May -2013
5.500%
2013
01 -NOV -2013
Total
$2,000,000
$1,191,005.00
$3,291,005.00
$3,191.006.0(
Not Interest
Rate
6,025338%
Premium
Bou4 Years
23,700.000
Discount
Average Lute
11.050
13- ]day -93
Spear Financl 4l , Inc.