TO: Mayor and City Council
FROM: James V. Capparelli, City Manager
SUBJECT:
title
Ordinance Approving a Water Supply Agreement with the City of Chicago and Agreements for Easements and Rights of Access with the City of Chicago and the Chicago Park District for the Placement of the Chicago Connection Facilities at the Southwest Pumping Station and Durkin Park Sites and Payments and Other Actions for the Implementation of the Agreements
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BACKGROUND:
The City of Joliet’s existing water source, the deep groundwater aquifer, will be depleted to the point of not being able to meet the City’s maximum day water demands by the year 2030. This is a regional problem. Groundwater modeling conducted by the Illinois State Water Survey indicates that the deep groundwater wells in Joliet and neighboring communities will someday be depleted to the point of no longer being able to supply the region’s future water needs. Knowing this, the City of Joliet conducted an Alternative Water Source Study to determine alternative water sources which could be used by not only the City of Joliet, but possibly the region as a long-term, sustainable, reliable water source.
The Alternative Water Source Study began in July of 2018 and was completed in two phases. Fourteen alternatives were evaluated in the Phase I Study. These fourteen alternatives covered the full range of possible water sources including groundwater, rivers and Lake Michigan. The Phase I Study was completed in January 2019 and recommended five alternatives for further evaluation as feasible alternative water sources. The Phase II Study took a more in depth look at the five alternatives in order to determine the improvements that would be required to implement each alternative. The Phase II alternatives included Illinois River, Kankakee River, Lake Michigan Water - Chicago Department of Water Management, Lake Michigan Water - DuPage Water Commission and Lake Michigan Water - New Indiana Intake. The Phase II Study evaluated the alternatives based on cost, raw water quality, sustainability/water quantity, implementation risk, operation & maintenance, and control (governance).
On January 7, 2020, the City Council approved Resolution No. 7489 which selected Lake Michigan as the City’s alternative source of water and directed staff to simultaneously investigate further both the Lake Michigan - Chicago Department of Water Management and Lake Michigan - New Indiana Intake alternatives in 2020.
On January 28, 2021, the City Council selected the Chicago DWM alternative and approved Resolution No. 18184, approving a “Preliminary Agreement with Respect to an Anticipated Water Supply Agreement Between The City Of Chicago and The City Of Joliet,” which was also approved by the Chicago City Council (“Preliminary Agreement”), which provided a basis for an ongoing, long-term agreement between the City of Chicago and Joliet that would facilitate the provision of a new, safe, clean and reliable source of Lake Michigan water supply to Joliet.
Over the past two years, staff and the consulting team have engaged in negotiations to establish a comprehensive, ongoing, long-term water supply agreement between the City of Chicago and the City of Joliet for a Lake Michigan water supply, resulting in a more complete and advanced set of key terms, which are contained in a proposed Water Supply Agreement between the City of Chicago and the City of Joliet.
The Water Supply Agreement provides that Chicago and Joliet agree to work together in a coordinated approach to meet the long-term water supply needs of Joliet and the surrounding southwest suburban region. Key terms of the agreement are as follows:
• Cooperation between the City of Joliet and the City of Chicago in a coordinated approach to the design, financing and construction of the required new water supply infrastructure in order to enable Chicago to provide a supply of Water to Joliet by January 1, 2030
• Cooperation in developing a coordinated approach to the operation and maintenance of the portions of the new water supply infrastructure located in Chicago
• The cost of water to be charged by Chicago to Joliet will be based on the cost of providing water service by Chicago to Joliet pursuant to the then-generally recognized principles and practices in the American Water Works Association Manual of Water Supply Practices M1, Principles of Water Rates, Fees, and Charges
• Commitment to a transparent and collaborative long-term relationship for a supply of water to Joliet and a deepening regional cooperation and collaboration via the Advisory Council which has been established by Chicago
• Establishment of a process by which Joliet will be able to assign the Water Supply Agreement to the regional water commission after the commission’s formation
Concurrent with the negotiation of the Water Supply Agreement, staff and the consulting team have engaged in negotiations for necessary permanent and temporary easements for the construction and permanent placement of certain elements of the new water supply infrastructure on the site of the Southwest Pumping Station and portions of Durkin Park, as follows:
• for permanent and temporary easements and continued rights-of-access on the site of the Southwest Pumping Station, which site is owned by the City of Chicago, resulting in a proposed “Easement Agreement for Two Permanent Easements and Seven Temporary Easements at the City of Chicago Southwest Pumping Station Property” between the City of Chicago and the City of Joliet
• for permanent easements and continued rights-of-access on a two-acre portion of Durkin Park, which is located immediately to the west of and adjacent to the site of the Southwest Pumping Station, which portion of the Park will be owned by the City of Chicago and leased to the Chicago Park District for continued use of the surface of the two acres as a public park, resulting in a proposed “Easement Agreement for Durkin Park Between the City of Chicago and the City of Joliet”
• for three temporary easements during periods of initial construction and major future maintenance and repair on portions of Durkin Park owned by the Chicago Park District and continued rights-of-access during periods of construction, resulting in a proposed “Agreement for Construction Easements for Durkin Park” Between the Chicago Park District and the City of Joliet
Pursuant to these easement agreements, the City of Joliet will make payments to the City of Chicago and the Chicago Park District for the agreed-upon value of the easements, and an additional payment to the Chicago Park District in recognition of the disruption of the use of the southern portion of Durkin Park, in particular the two-acre parcel and the construction easements, which amount the Chicago Park District will use to construct improvements at other District locations in the area (which may include other portions of Durkin Park that are not part of the two-acre parcel and the construction easement areas) to accommodate increased demand due to the unavailability of the affected portions of Durkin Park.
CONCLUSION:
Entering into the Water Supply Agreement with the City of Chicago and the easements with the City of Chicago and the Chicago Park District will protect the public health, safety and welfare, and provide a sustainable, reliable, high-quality water supply for the City of Joliet that can be ready to deliver Lake Michigan water to the Joliet water system by the year 2030. It has been determined that acquiring the easements and entering into the easement agreements and any additional permits and agreements for rights-of-access are necessary in order to deliver Lake Michigan water from Chicago DWM to the City of Joliet. Payments for the easements are as follows:
• to the City of Chicago pursuant to Exhibit B: $430,275
• to the City of Chicago pursuant to Exhibit C: $549,425
• to the Chicago Park District pursuant to Exhibit D: $1,862,617
Section 2-438 of the City of Joliet Code of Ordinance states that purchases over $25,000.00 may be awarded without written specifications under certain circumstances. One (1) of these circumstances apply:
(f) Purchases when authorized by a concurring vote of two-thirds (2/3) of the Mayor and City Council
Funds will be charged to the Alternative Water Source Program Fund - Regional Water Commission (Org 53180000, Object 557100, $2,842,317.00).
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the City Council approve the attached ordinance and take the following actions:
1) Approve the proposed Water Supply Agreement Between the City of Chicago and the City of Joliet, in a form substantially similar to Exhibit A, and authorize and direct the Mayor and City Clerk to sign and seal the Water Supply Agreement.
2) Approve the proposed easement agreements listed below and authorize and direct the Mayor and City Clerk to sign and seal the agreements:
a. “Easement Agreement for Two Permanent Easements and Seven Temporary Easements at the City of Chicago Southwest Pumping Station Property” between the City of Chicago and the City of Joliet, in a form substantially similar to Exhibit B
b. “Easement Agreement for Durkin Park” between the City of Chicago and the City of Joliet, in a form substantially similar to Exhibit C
c. “Agreement for Construction Easements for Durkin Park” between the Chicago Park District and the City of Joliet, in a form substantially similar to Exhibit D
3) Authorize the City Manager to obtain and enter into right-of-access permits and/or agreements with the Chicago Park District in connection with the easements on Durkin Park.
4) Authorize and approve payments required to be paid by Joliet pursuant to the easements as provided by the terms of the easements.
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