Title
Consulting Services - Renewal of Water Contract with the Village of Oak Lawn
History
The Water Supply Service Agreement between the Village of Orland Park and the Village of Oak Lawn is set to expire on October 1, 2011. Other major users of the system, including Tinley Park, Oak Forest, Mokena and New Lenox - users accounting for over 80% of the usage - also have contracts with Oak Lawn expiring on this date. As part of the renewal process, Oak Lawn completed an engineering study that identified a number of long term infrastructure improvements The total cost of these improvements ranged from approximately $123,682,000 to $186,984,000 depending on where the 2nd supply line ends.
The various municipalities previously mentioned met and determined that it would be in our best interest if we collectively approached Oak Lawn when renegotiating our contracts and offered Oak Lawn the following contract renewal options:
• Perform a cost/benefit analysis to determine the viability of converting the system to a Water Commission with group governance
• Enter into a water purchase group/authority separate from Oak Lawn
• Require a variety of changes to the current contract to establish performance standards, oversight of operations and participation in the design and construction of improvements.
If necessary, we will request a short extension of our contracts with Oak Lawn to provide additional negotiation time.
To assist with the decision making and negotiations, as well as to provide independent opinions and advice, it was determined by the collective group that an independent consultant should be hired. Each of the municipalities would share in the cost of this consultant on a pro-rata share basis; a municipality’s pro rata share would be based on the 2030 water allocation amounts. Orland Park’s pro rate share is 33%.
It was recommended that William Balling of WRB, LLC be retained to provide these services. Please see attached for a brief description of WRB, LLC related projects. Mr. Balling will submit to us a detailed scope of work outlining the services he will be providing. As Tinley Park is the largest user (when Mokena and New Lenox are included in Tinley Park usage figures), it was agreed that the contract would be administered by Tinley Park. Upon approval by each municipal Board, a written agreement would be signed by each municipality agreeing to this cost sharing scenario. At this time, and assuming negotiations run smoothly and timely, staff is estimating that that Orland Park’s share will not exceed $20,000 (approximately 33% of $60,000).
Financial Impact
Sufficient funds are available in the Water & Sewer Fund to pay the fees incurred. A budget adjustment in the amount of $20,000 is required.
On June 22, 2009, this item was reviewed and approved by the Finance Committee and referred to the Board for approval.
Recommended Action/Motion
I move to approve entering into a cost sharing agreement with the Villages of Tinley Park, Mokena and New Lenox and the City of Oak Forest, to pay Orland Park’s proportionate share of consulting services fees to WRB, LLC.
And
To authorize the Village Manager to execute the agreement.