Title
Oak Lawn Regional Water System - Changes to the Conforming Agreement, Third Amendment
History
In 1985, Village moved from well water to Lake Michigan water through a 36-inch water main from Oak Lawn that serves Village of Orland Park and twelve other communities. As referred to as “Spur 1”, this water main reduced cost, improved reliability, improved quality, increased quantity, and eliminated water softeners in the Village.
In 2012, the Regional Water System initiated the design and award of a redundant water pump station in Oak Lawn and water main to the twelve communities to provide a complete and parallel redundant water system. Referred as “Spur 2”, the water main is a separate route to the Village’s Main Pump Station versus Spur 1.
In order to commence the Spur 2 project, all member communities entered into a Regional Water System Water Sale, Purchase and Service Agreement between the Village of Oak Lawn and Certain of Municipal Customers (Conforming Agreement) that spelled out the obligations for the Oak Lawn Regional Water System (RWS). The RWS has recommended approval of the Third Amendment to the Conforming Agreement. A comprehensive listing of the proposed changes are attached to this item. The main impetus for this Third Amendment involves the addition of three new member communities.
Throughout the Summer of 2023, the Village of Oak Lawn has been negotiating with the Southeast Customers (Matteson, Country Club Hills, and Olympia Fields) to become members of the Conforming Agreement. As a result of these negotiations, the Village of Oak Lawn and the Southeast Customers have tentatively agreed to conditions to have them join the Conforming Agreement.
Other changes include:
· Due to the higher than expected construction cost bid for BP5, the maximum principal on bonds directly related to the construction of project is increased by $20,000,000. All series bonds for the 2013 RWS Improvement Project overall is going up $10,000,000. Finally, t...
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