TO: Mayor and City Council
FROM: Allison Swisher, Director of Public Utilities
SUBJECT:
title
Resolution Approving Acceptance of Donation of Land for Water Tower Site and Authorizing Approval and Execution of an Easement Agreement with TCIH Holdings, LLC (Northpoint) for the Alternative Water Source Program
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BACKGROUND:
The City of Joliet is working with five other communities on the Alternative Water Source Program to design and construct a pipeline to provide Lake Michigan water purchased from the City of Chicago to the region. The Water Supply Agreement between the City of Chicago and the City of Joliet, and the Water Supply Agreement between Grand Prairie Water Commission and its member municipalities, including the City of Joliet, each require the City of Joliet to provide water storage capacity in an amount not less than two times the City’s Lake Michigan water allocation amount granted by the State of Illinois no later than the year 2040. The City’s existing water storage capacity does not meet this requirement. Therefore, design and construction of new water storage tanks will be required to accept delivery of Lake Michigan water.
Computerized hydraulic modeling performed by the engineering firm retained by the City for the design of new water storage tank capacity showed that the existing customers in the southeast area of the City will benefit from adding elevated storage in the area. Based on the hydraulic modeling, both a radius of land area and the necessary elevation for a new site were identified for placement of a new water storage tank that will provide the necessary operating pressures to deliver water service to existing Joliet customers in the southeast area of the City. Review and analysis of available real estate within the identified hydraulic radius and at the required elevation resulted in a determination that a 1.317-acre parcel within the land acquired by TCIH Holdings LLC for the Compass Business Park, located east of Illinois Route 53 and south of West Breen Road, will provide an appropriate location for this tank. TCIH Holdings LLC is one of the land holding entities utilized by Northpoint for its developments.
In 2021, the City entered into an Amended and Restated Annexation and Development Agreement for the Compass Business Park which includes the dedication of up to 20 acres of land for water and wastewater system purposes, as well as provision of permanent easements and temporary construction easements to the City for installation of infrastructure needed for the City’s Alternative Water Source Program. Per this agreement the owner has agreed to donate the property identified for the water tank to the City and provide areas for easements for (1) water transmission mains, (2) other necessary supporting utility facilities and appurtenances for the water storage tank and water transmission mains and (3) access to and from the water tank property.
This new elevated water storage tank will not benefit the Compass Business Park. The developer of Compass Business Park will need to construct an additional elevated water storage tank further south and east of the tank being constructed on the donated land in order to service the Business Park. The Annexation Agreement requires the developer to be responsible for all expenses pertaining to design, permitting and construction of the tank.
The Public Service Committee will review this matter.
CONCLUSION:
It is in the best interests of the City and the public health, safety and welfare to accept the donation of the property for the water tank and to approve the donation of the easements to enable the necessary improvements in support of the Alternative Water Source Program.
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council take the following actions:
1. Approve and accept the donation by TCIH Holdings, LLC of the water tank property, subject to the terms of a warranty deed and other necessary closing documents approved by the City Manager.
2. Approve and accept the easements subject to the terms and conditions of the easement agreement.
3. Authorize the City Manager and City Clerk to execute and seal the easement agreement in form and substance substantially conforming to Exhibit 2 of the Resolution.
4. Authorize the City Manager or her designee to take such actions and execute such documents as may be necessary for the City to complete the acceptance and acquisition of the water tank property and the easements and obtain a title insurance policy for the water tank property and the easements as appropriate, including payment of necessary ancillary fees and costs.
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