TO: Mayor and City Council
FROM: Beth Beatty, City Manager
SUBJECT:
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Resolution Stating the City of Joliet’s Intent to Effectuate Assignment of the Chicago Water Supply Agreement and Related Easements, Permits, and Approvals
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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.
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. In order to initiate the process of assignment of the Chicago Water Supply Agreement, easements, permits and approvals to the Commission, the City must submit a notice of assignment to Chicago. It is necessary for the City to assign to the Commission the Chicago Water Supply Agreement as well as the easements, permits and approvals 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 includes the provision of Lake Michigan Water to the City. The Public Service Committee will review this matter.
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council approve a resolution (1) stating Joliet’s intent to begin the process of, and to effectuate, the assignment of the Chicago Water Supply Agreement and the easements, permits and approvals by the City to the Commission and to proceed to submit the necessary notice to Chicago to commence the assignment process and (2) authorizing the City Manager and City Clerk to submit the necessary notice to Chicago and to sign such documents as may be necessary to commence the process of the assignment of the Chicago Water Supply Agreement, easements, permits and approvals.
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