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.
Given the approaching end date of the existing water supply service agreement, the five communities have proposed an 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 reta...
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