TO: Mayor and City Council
FROM: Allison Swisher, Director of Public Utilities
SUBJECT:
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Ordinance Authorizing the Assignment of the Chicago Water Supply Agreement, Related Easements, and Ancillary Permits and Approvals to the Grand Prairie Water Commission
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BACKGROUND:
The City of Joliet approved and executed (1) an Intergovernmental Agreement to Establish the Grand Prairie Water Commission dated June 28, 2024, pursuant to which the City has become a member of the Grand Prairie Water Commission (Commission) and (2) the Grand Prairie Water Commission Water Supply Agreement dated July 2, 2024 pursuant to which the City will purchase Lake Michigan water from the Commission. As part of the initial development of the Commission and its waterworks system the City of Joliet entered into a Water Supply Agreement with the City of Chicago dated May 1, 2023 pursuant to which the City of Chicago has agreed to supply an amount of water sufficient to meet the maximum day demands of not only the City of Joliet but also members of the Grand Prairie Water Commission. The City has also entered into easement agreements with the City of Chicago and obtained certain permits and approvals from Chicago that are required to enable the construction, installation and operation of the facilities to connect the Commission’s waterworks system to the City of Chicago water system. In addition, to further enable this development, the City has also entered into an easement agreement for construction easements with the Chicago Park District.
The Chicago Water Supply Agreement provides that it is assignable by the City to the Commission and that the City may also assign some or all of the easements, permits and approvals to the Commission. On October 15, 2024, the Mayor and City Council approved Resolution No. 8078 which determined that it is necessary and appropriate for the City to initiate the process of assignment of the Chicago Water Supply Agreement, easements and ancillaries to the Commission, and directed that the City commence the process of effectuating such an assignment. On October 3, 2024, the Board of Commissioners of the Commission approved Resolution No. 2024-8 which determined that it is necessary and appropriate for the Commission to initiate the process of accepting assignment of the Chicago Water Supply Agreement, easements and ancillaries from the City, and directed that the Commission commence the process of effectuating such an assignment.
This matter will be reviewed by the Public Service Committee.
CONCLUSION:
The City, the Commission and Chicago have engaged in discussions regarding the process for completing the assignment of the Chicago Water Supply Agreement, easements and ancillaries by the City to the Commission, and the City, the Commission and the Chicago Park District have engaged in discussions regarding the assignment of the Park District easement, and negotiated the terms and conditions of the agreements necessary to complete the assignment process. The City is a party to the first one of those agreements, which is the Assignment and Amendment of Water Supply Agreement - City of Chicago, City of Joliet and Grand Prairie Water Commission (Assignment Agreement), pursuant to which the City will assign to the Commission the Chicago Water Supply Agreement as well as the easements and ancillaries, and all rights duties, obligations, claims and liabilities under these documents, in order to enable the Commission to accomplish its purposes and meet its obligations to the members of the Commission under the Commission Water Supply Agreement, which include the provision of Lake Michigan Water to the City. The City will also sign an assignment of the Park District construction easements to the Commission.
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council approve an ordinance (1) approving the Assignment Agreement in substantially the form attached to the Ordinance as Exhibit 1, (2) approving the assignment of the Park District construction easements in substantially the form attached to the Ordinance as Exhibit 2, and (3) authorizing the Mayor and City Clerk to execute the Assignment Agreement and an assignment of the Park District construction easements, and authorizing the Mayor, City Clerk, and City Manager to take such additional actions as are necessary, to complete the process of the assignment of the Chicago Water Supply Agreement and the easements and ancillaries by the City to the Commission.
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