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PROPOSED INTERGOVERNMENTAL AGREEMENT
Department: Department of Planning and Development
Other Part(ies): Grand Prairie Water Commission
Request: To enter into an Intergovernmental License Agreement (“IGA”)
Goods or Services: License to allow use of Forest Preserves of Cook County (“Forest Preserves”) property for a new water transmission pipeline and related facilities.
Agreement Number(s): IGA #26-0334
Agreement Period: Fifty (50) years from date of execution followed by five (5) 10-year renewal terms, for a total period not to exceed one hundred (100) years.
Fiscal Impact: Revenue generating.
License Fee: $899,040.00 for initial 50-year term plus payment of license fees in effect at the beginning of each 10-year renewal term.
License Application and Review Fee: $3,500.00 (including $500 application fee already paid).
YELAR Fee: $7,200.00.
Additional Fees: GPWC has agreed to additional one-time payments:
Ecological Restoration: $3,000,000.00, and
Trail and Trailhead Parking Restoration: $3,000,000.00.
In addition, GPWC will directly pay the costs of a Construction Inspector/Owner’s Representative selected by the Forest Preserves during the construction period.
Total one-time upfront fee of $6,909,240.00 for the initial 50-year term of the license excluding application fee (already paid) and tree mitigation fees.
Tree Mitigation Fees: $697,612.52.
Accounts: NA
District(s): 17
Summary: The Grand Prairie Water Commission (“GPWC”) requests approval of an IGA to place a 66-inch-diameter water transmission pipeline and related facilities on Forest Preserves’ property for the purpose of bringing Lake Michigan water to its member municipalities of Joliet, Channahon, Crest Hill, Minooka, Romeoville and Shorewood.
This request stems from the urgent need for a sustainable water source, as the deep sandstone aquifer serving these municipalities is projected to be insufficient by 2030. In response, they formed the GPWC under the Regional Water Commissions Act (65 ILCS 5/11-135.5-1), which has entered a 100-year agreement with the City of Chicago for Lake Michigan water, and plans to construct a 65-mile pipeline serving more than 250,000 residents. The Forest Preserves recommends approval of GPWC’s request because the lack of alternative means of accessing Lake Michigan water poses unique risks to public health, safety and welfare.
To minimize the effects of the pipeline, the parties conducted an extensive multi-year review of route alternatives and impact-reduction strategies. The parties identified an alignment in the Palos Preserves south of the Cal-Sag Channel that places nearly all the facilities within existing road rights-of-way. Approximately 5.12 linear miles of pipeline, totaling 9.365 acres of license area, would cross Forest Preserves’ property. Of this, roughly 9 acres (96 percent) lie within existing rights-of-way, with less than 0.4 acres outside them. In addition, temporary construction work areas totaling approximately 0.88 acres will be required at various locations. The resulting corridor generally follows a 15-foot-wide alignment from Cal-Sag Road south along 86th Avenue to 119th Street, then west to LaGrange Road (IL 45), south to 123rd Street (McCarthy Road), and west to Bell Road.
Most of the water main will be installed by open trench method. However, underground boring will be used to direct it under sensitive water areas and major roadways. An estimated 145 trees would be impacted and require payment of mitigation fees. GPWC has agreed to supplemental one-time payments for ecological restoration and trail restoration due to the high quality and popularity of the impacted areas. The proposed project has been reviewed for compliance with various state and federal environmental and historic preservation laws. Soil, wetland, and roadway work would be subject to permit review and requirements by other agencies.
GPWC requests an initial license term of 50 years to match the term of the project financing, along with five (5) 10-year renewals to align with its 100-year water supply agreement with Chicago. The IGA establishes a formal amendment process that may be initiated by either party five (5) years before the end of the initial term or eighteen (18) months before the end of any renewal term. If no proposed amendment is submitted within those timeframes, the Agreement automatically renews for the next 10-year period without further approval by Board (up to the 100-year maximum). If an amendment is proposed, the parties must engage in good-faith negotiations, and the next renewal is subject to approval by the Board of Commissioners for both parties. If the parties ultimately cannot reach agreement, the IGA will expire at the end of the then-current term.
GPWC will maintain contractors to provide emergency response throughout the life of the IGA. If it is unable to make needed repairs, the IGA provides financial assurances for the Forest Preserves to complete the work and recover costs. Finally, GPWC is required to maintain insurance throughout the term with coverage levels to be reviewed and adjusted every 10 years. Authority to modify or amend insurance requirements is delegated to the General Superintendent. All other amendments to the IGA are subject to Board Approval.
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