HomeMy WebLinkAboutORDINANCES-2018-083-O-187/23/2018
83-0-18
AN ORDINANCE
Authorizing the City Manager to Execute an Agreement to Sell Water
to a New Wholesale Water Customer,
the Village of Lincolnwood, Illinois
NOW BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
EVANSTON, COOK COUNTY, ILLINOIS, THAT:
SECTION 1: Legislative Statement. The City of Evanston is the owner
and operator of a water intake, filtration, treatment and pumping plant located at 555
Lincoln Street, Evanston, Illinois. Evanston draws water from Lake Michigan for
Evanston's drinkable water, firefighting and fire protection needs for its community, and
for distribution and resale to its customers. The Village of Lincolnwood wants to
purchase drinkable Lake Michigan water from Evanston for distribution and sale to its
customers of its water system. The initial term of the Agreement will be for 39 years,
and may be renewed as provided for in the terms of the Agreement.
SECTION 2: The City Manager is authorized and directed to further
negotiate and execute with the Village of Lincolnwood, Illinois, an Agreement to sell
water, in substantial conformance with the terms and conditions of the Water Supply
Agreement described in Exhibit A. The Corporation Counsel is authorized to approve
the Agreement as to form and legality prior to its execution by the City Manager.
SECTION 3: If any provision of this ordinance or application thereof to
any person or circumstance is ruled unconstitutional or otherwise invalid, such invalidity
shall not affect other provisions or applications of this ordinance that can be given effect
c 9MF-*1
without the invalid application or provision, and each invalid provision or invalid
application of this ordinance is severable.
SECTION 4: The Legislative Statement in Section 1 is declared to be
prima facie evidence of the law of the City and shall be received in evidence as
provided by the Illinois Compiled Statutes and the courts of the State of Illinois.
SECTION 5: This Ordinance 83-0-18 shall be in full force and effect from
and after its passage, approval, and publication in the manner provided by law.
Introduced:
Adopted:
Attest:
Devon Reid, City Clerk
, 2'018 Approved:
12018 �a�� 12018
B
Steph n H Hagerty, a
Approved as to form:
lt4� ,p
, pwat'�k
Michelle L. Masoncu , Corporation
Counsel
-2-
EXHIBIT A
WATER SUPPLY AGREEMENT
-3~
WATER SUPPLY AGREEMENT BETWEEN
THE CITY OF EVANSTON AND,
THE VILLAGE OF LINCOLNWOOD
Contents
7/20/18
Background..................................................................................................................................... 5
1. Parties...................................................................................................................................... 5
1.01 Parties.............................................................................................................................. 5
2. Initial Term of Agreement; Extended Term; Service Year; Fiscal Year ................................ 5
2.1. Initial Term................................................................................................................... 5
2.2 Extended Term................................................................................................................ 5
2.3 Service Year; Fiscal Year................................................................................................ 6
3. Water Defined......................................................................................................................... 6
3.01 Water Defined.................................................................................................................. 6
4. Commencement of Obligation to Deliver and Receive Water ................................................ 6
4.1 Intentionally Left Blank....................................................................:.............................. 6
4.2 LINCOLNWOOD Notice to Evanston to Proceed with Final Engineering Design........ 6
4.3 LINCOLNWOOD Notice to Evanston to Proceed with Construction ............................ 6
4.4 Delivery Date................................................................................................................... 7
4.5 LINCOLNWOOD Payment for Water; Water During Construction .............................. 7
4.6 Water Rate Payable to Evanston in Service Year 2018 and Beyond .............................. 7
4.7 Water Rate Payable to Evanston in Service Years 2023 and Thereafter ......................... 7
5. Rate.......................................................................................................................................... 8
5.1 Ratemaking Principles and Policies................................................................................. 8
5.2 Billing and Payments....................................................................................................... 8
5.3 Return on Rate Base........................................................................................................ 9
5.4 Depreciation Charge..................................................................................................:... 11
5.5 Quantity Charge............................................................................................................. 11
5.6 Demand Charge and Quantity Charge Smoothing........................................................ 12
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5.7 LINCOLNWOOD Audit Rights....................................................................................
13
5.8 True-Up.........................................................................................................................
13
6. Water System Definitions.....................................................................................................
13
6.01 Water System Definitions and Related Terms...............................................................
13
7. Water Supply; Allocation; Distribution................................................................................
15
7.1 Water Supply, Sale and Purchase; Allocation............................................................
15
7.2 Emergency Connections................................................................................................
15
7.3 Coefficient of Friction...................................................................................................
15
7.4 Pressures........................................................................................................................
16
7.5 Supply and Service Agreement Only; Title to Water ....................................................
16
7.6 Temporary Restriction...................................................................................................
17
7.7 Maintenance...................................................................................................................17
7.8 Lincolnwood Option to Purchase Water from Other Suppliers ....................................
18
7.9 Surges and Back-Flows.................................................................................................
18
7.10 LINCOLNWOOD Responsibility for Damage to Evanston's Water Utility ................
18
7.11 Evanston's Responsibility for Damage to LINCOLNWOOD's Water System ............
19
8. Existing and Future Customers of Evanston; LINCOLNWOOD Other Users ....................
19
8.1 Existing and Other Water Customers Served by Evanston ...........................................
19
8.2 Northwest Water Commission..........................................................................................
19
8.3 Liability for Unreasonable Delay by LINCOLNWOOD..............................................
19
8.4 Liability for Unreasonable Delay by Evanston..............................................................
20
9. Facility Completion Schedule............................................................................................
20
9.1 Specifications and Sequence of Construction for the Project Improvements ...............
20
9.2 IEPA and Other Approvals for the Project..............................................................
21
9.3 Easements, Licenses, Permits, Fees and Approvals.....................................................
21
10. Meters and Measurements; Meter Testing..........................................................................
21
10.1 Unit of Measurement..................................................................................................
21
10.2 Supervisory Control and Data Acquisition ("SCADA")........................................
21
10.3 Delivery Meters..........................................................................................................
22
10.4 Check Meters .................................................. :...........................................................
22
10.5 Meter Calibration and Adjustment.............................................................................
23
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10.6
Notification Concerning Meter Tests.........................................................................
23
10.7
Removal of Meters....................................................................................................................
24
10.8
Meters for Customers................................................................................................................
24
11. Dispute Resolution............................................................................................................................
24
11.1
Negotiation................................................................................................................................24
11.2
Remedies.............................................................................................................................25
11.3
Venue and Applicable Law.................................................................................................
25
12. Force Majeure..................................................................................................................................25
12.1
Excuse From Performance........................................................................................................
25
12.2
Force Majeure Event................................................................................................................
25
12.3
Notice.......................................................................................................................................26
13. Preservation of Water Rights.............................................................................................................
26
14. Good Faith and Fair Dealing.............................................................................................................
26
15. Disconnection, Removal Relocation of Connection Facilities or Transmission Mains ....................
27
15.1
Termination of Agreement.........................................................................................................
27
15.2
Relocation.................................................................................................................................
27
16. Termination; Default.........................................................................................................................
27
16.1
Termination by Evanston..........................................................................................................
27
16.2
Termination by Mutual Agreement...........................................................................................
27
16.3
Termination by LINCOLNWOOD...........................................................................................
28
16.4
Default; Cure Period; Relief .....................................................................................................
29
17. General
Conditions...........................................................................................................................
30
17.1
Entire Agreement......................................................................................................................
30
17.2
Prompt Payment........................................................................................................................
30
17.3
Compliance With Laws.............................................................................................................
30
17.4
Regulatory Bodies.....................................................................................................................
30
17.5
Illinois Freedom of Information Act.........................................................................................
30
17.6
Interpretation; Headings...........................................................................................................
31
17.7
Waiver.......................................................................................................................................31
17.8
No Individual or Personal Liability..........................................................................................
31
17.9
No Third Party Beneficiaries.....................................................................................................
31
17.10 Amendments.............................................................................................................................
32
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17.11 Assignment................................................................................................................................
32
17.12 Notice........................................................................................................................................
32
17.13 Severability................................................................................................................................
34
17.14 No Separate Legal Entity; No Joint Venture or Partnership or Agency ....................................
34
17.15 Independent Sovereign Status...................................................................................................
34
17.16 Effective Date...........................................................................................................................
35
17.17 Authorization............................................................................................................................
35
17.18 Counterparts..............................................................................................................................35
17.19 Exhibits.....................................................................................................................................
35
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Background
The City of Evanston ("Evanston") is the owner and operator of a water intake, filtration,
treatment and pumping plant (the "Water Plant") located at 555 Lincoln Street, Evanston,
Illinois. The Water Plant is on the shore of Lake Michigan and Evanston draws water from
Lake Michigan for Evanston's drinkable water, firefighting and fire protection needs for its
community, and for distribution and resale to its customers ("Evanston Water Utility"). The
Village of Lincolnwood ("Lincolnwood") wants to purchase drinkable Lake Michigan water
from the Evanston Water Utility for the uses specifically allowed by this Agreement, including
but not limited to, distribution and sale to customers of the Lincolnwood water system.
1. Parties
1.1 Parties
The parties to this Water Supply Agreement ("Agreement") are Evanston and Lincolnwood, who
are at times referred to in this Agreement as a "Party" or collectively as the "Parties".
2. Initial Term of Agreement: Extended Term: Service Year: Fiscal Year
2.01. Initial Term
The Initial Term ("Initial Term") shall commence on the Effective Date of this Agreement (as
defined in Section 17.16 (Effective Date)) and shall end at 11:59 p.m. on December 31, thirty
nine (39) years after the Effective Date of this Agreement.
2_2 Extended Term
The Initial Term of this Agreement may be extended for up to two (2) consecutive terms
(generally referred to as an "Extended Term" or specifically referred to as the "First Extended
Term" and the "Second Extended Term"). The First Extended Term and the Second Extended
Term will each be ten (10) years in length, unless Lincolnwood delivers written notice of its
intention to not extend the Initial Term or any Extended Term of this Agreement. Any such
written notice must be delivered to Evanston not less than five (5) years prior to the termination
date of the then -existing Term. If this Agreement is extended for the Second Extended Term,
then this Agreement shall renew automatically at the end of the Second Extended Term at ten
(10) year intervals thereafter, unless either Party conveys written notice of its intention to
terminate this Agreement not less than five (5) years prior to the termination date of the then -
existing Term.
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2.3 Service Year; Fiscal Year
Each Service Year ("Service Year") under this Agreement will be the time period of January l st
to December 31st. Each Fiscal Year ("Fiscal Year") under this Agreement will be the time period
of January 1 st to December 31 st.
3. Water Defined
3_1 Water Defined
In this Agreement, Water means Lake Michigan water that is safe for human consumption (i.e.
drinkable water) and that meets or exceeds the requirements of any current or successor federal,
state of Illinois, or local agency or governmental authority having jurisdiction over the operation
of public water supplies. Evanston shall supply water that is like kind and quality with that
supplied by Evanston to its other customers. Whether "water" is capitalized in this Agreement or
not, it shall have the meaning set forth in this Section.
4. Commencement of Obligation to Deliver and Receive Water
4.01 Intentionallv Left Blank
4.2 LINCOLNWOOD Notice to Evanston to Proceed with Final Engineering Design
Not more than thirty (30) calendar days after LINCOLNWOOD awards the final engineering
design work for the LINCOLNWOOD Water System, LINCOLNWOOD shall deliver to
Evanston in writing a notice to proceed on final engineering design of the Evanston Connection
Facilities.
4.3 LINCOLNWOOD Notice to Evanston to Proceed with Construction
Not more than thirty (30) calendar days after LINCOLNWOOD awards the first construction
contract relative to the construction of the LINCOLNWOOD Water System, LINCOLNWOOD
shall deliver to Evanston in writing a notice to proceed on construction of the Evanston
Connection Facilities.
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4.4 Delivery Date
Evanston shall deliver water to LINCOLNWOOD, on a date mutually agreed by the Parties, but
no later than one hundred and twenty (120) calendar days of receiving written notice from
LINCOLNWOOD that LINCOLNWOOD is ready to receive water.
4.5 LINCOLNWOOD Payment for Water; Water Durin$ Construction
Except for water usage during construction and testing of the Project improvements,
LINCOLNWOOD shall not be responsible to pay for any water charges under this Agreement
until the improvements and construction at the Point of Delivery, are completed, and until
Evanston delivers water to LINCOLNWOOD for resale to its customers. During the construction
and testing of the improvements at the Point of Delivery, Evanston will charge
LINCOLNWOOD for its water usage at the water rates and charges identified in Section 4.06
(Water Rate Payable to Evanston in Service Year 2018 and Beyond) of this Agreement.
4.6 Water Rate Pavable to Evanston in Service Year 2018 and Bevond
The Parties agree that the identification of the total equivalent water rate payable to Evanston per
1,000 gallons supplied to LINCOLNWOOD in the Service Years identified below will be as
follows:
Service Year LINCOLNWOOD
2018
$ 1.53 Not to Exceed Rate
2019
$ 1.44 Not to Exceed Rate
2020
$ 1.60 Not to Exceed Rate
2021
$1.63 Projected, conforming
to Section 5 below
2022
$1.82 Projected, conforming
to Section 5 below
4.7 Water Rate Pavable to Evanston in Service Years 2023 and Thereafter
The Parties agree that the identification of the total equivalent water rate payable to Evanston per
1,000 gallons supplied to LINCOLNWOOD in Service Years 2023 and thereafter will be
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calculated in accordance with Section 5 (Rate) below. The above rates may be adjusted down
based . on final rate calculations as provided for in Section 5 (Rate). The rate charged to
Lincolnwood for water sold for construction and testing shall also use the above table. No True
Up will be calculated for water sold for construction and testing purposes. Except for water sold
to Lincolnwood for construction and testing, if the actual rate incurred at any time during Service
Years 2018, 2019, 2020, 2021, or 2022 is different than the scheduled rate set forth in this
Section, a "True -Up" calculation, in accordance with Section 5.08 (True -Up) will be completed
no later than thirty (30) days after the Evanston Comprehensive Annual Financial Report
("CAFR") applicable to that Service Year is completed. The Parties attached as Group Exhibit
"A" to this Agreement an illustrative example of the "True -Up" process, including an
identification of the formula and its components that will be used in performing the "True -Up"
calculation. Any credit due to Lincolnwood will be allocated to that Party according to the
process outlined in Section 5.08 (True -Up) of this Agreement. All water charges otherwise
required to be paid under Section 4.06 (Phased Water Delivery to LINCOLNWOOD) will be
payable by LINCOLNWOOD.
5. Rate
5.1 Ratemakin2 Principles and Policies
The Parties agree that the definitions, policies and principles described in the AWWA M-1, the
"Principles of Water Rates, Fees and Charges published by the American Water Works
Association, Sixth Edition", as amended, may be used as a reference guide for the Parties under
this Agreement. However, in the event of a conflict or inconsistency between any provision or
term of the AWWA M-1 and this Agreement, the provision or term of this Agreement shall
govern.
5.2 Billing and Payments
Evanston shall submit all water bills to LINCOLNWOOD on a monthly basis.
LINCOLNWOOD shall pay all amounts due to Evanston pursuant to this Agreement in
accordance with the Local Government Prompt Payment Act, 50 ILCS 505/1 et seq. ("LGPPA").
The water bills shall be itemized with sufficient detail to inform LINCOLNWOOD that the
charges and fees set forth in each monthly bill conform to the agreed -upon rates and cost
components set forth in this Agreement. If payment is not made within the required thirty (30)
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calendar day period, Evanston will charge LINCOLNWOOD a penalty for late payment of water
bills in accordance with the interest penalty provision contained in Section 4 of the LGPPA (50
ILCS 505/4). No other penalty can be assessed against LINCOLNWOOD for late payments of
water bills, except for Evanston's optional right to terminate this Agreement for nonpayment as
provided for in Section 16.01 (Termination by Evanston). Evanston's termination option is
subject to the right of LINCOLNWOOD to resolve any late payment within the applicable cure
period. The billing structure will conform to the rates and components identified and defined
below:
• Demand Charge: A fixed monthly payment consisting of (i) one -twelfth (1/12th)
of the Annual Return on the Fair Value Rate Base as determined in accordance with Section 5.03
(Return on Rate Base) and (ii) a Depreciation Charge determined in accordance with Section
5.4 (Depreciation Charge).
• Quantity Charge: A payment based on the quantity of water delivered through the
metering point(s) to Lincolnwood's water system multiplied by the Quantity Rate determined in
accordance with the provisions of Section 5.05 (Quantity Charge).
5.3 Return on Rate Base
The "Rate Base" consists of those components of Evanston's Water Utility relating to assets in
the Source of Supply, Pumping Plant, Treatment Plant, Water Plant and Transmission locations
(the "Evanston Water Utility Components"). These Water Utility Components in service as of
December 31, 2015, are identified in the "Evanston Water Utility Components Sheet" which is
part of attached Group Exhibit "B" (Example of Rate Calculation for LINCOLNWOOD Water
Rate for Service Year 2017 Based on Evanston Audited Information for Fiscal Year 2015) to this
Agreement. The Parties to this Agreement understand and acknowledge that these Evanston
Water Utility Components will adjust annually as of the end of each Fiscal Year to reflect
additions to, and retirements of, Evanston Water Utility Components. The Parties to this
Agreement understand and acknowledge that these Evanston Water Utility Components may
adjust between the Effective Date of this Agreement and the date of delivery of water. Evanston
shall be included as a component of the Evanston Water Utility for purposes of asset allocation
and rate making related to asset allocation only for LINCOLNWOOD.
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• Original Cost Rate Base: The components of the Rate Base valued at the original
cost to Evanston of the acquisition, engineering, construction and installation of the assets of the
Water Utility as identified in the most recently available Evanston Comprehensive Annual
Financial Report ("Evanston CAFR"), minus accrued depreciation as of the end of the Fiscal
Year used as a basis for determining Water Charges under this Agreement.
• Reproduction Cost New Rate Base: The components of Rate Base valued initially
in the most recently available Evanston CAFR prior to the commencement of delivery of water
under this Agreement. Reproduction Cost New Rate Base will be recalculated as of the end of
each succeeding fifth Fiscal Year, starting in 2020, reflecting components then properly allocated
to the Rate Base pursuant to this Agreement. The recalculation of the Reproduction Cost New
Rate Base will utilize the most current valuation of the Evanston Water Utility, as identified by a
reputable qualified consulting engineering firm experienced in water works valuation hired by
Evanston. Accrued depreciation identified by the engineering firm's valuation study, plus
accrued depreciation which occurred from the date of the valuation to the end of the applicable
Fiscal Year of the rate determination, will be deducted from the reproduction cost new of the
plant in service at the end of the Fiscal Year.
Fair Value Rate Base: This will be calculated initially in the most recently
available Evanston CAFR prior to the commencement of delivery of water under this
Agreement. The Fair Value Rate Base will be recalculated as of the end of each succeeding fifth
Fiscal Year, starting in 2020, and will consist of the sum of fifty percent (50%) of the original
Cost Rate plus fifty percent (50%) of the Reproduction Cost Rate Base as of the calculation
date. The Fair Value Rate Base will be subject to annual adjustment as of the end of the Fiscal
Year between Fair Value Rate Base recalculations to reflect additions to and retirements of
Water Utility assets contained in the Rate Base during the Fiscal Year. The next verification of
the elements of the Fair Value Rate Base will be performed by Burns and McDonnell in 2020 (or
its successor entity selected by Evanston, as the case may be), and then once every five (5)
calendar years thereafter. Additions will be valued at their original cost until recalculation of the
Fair Value Rate Base, at which time such additions will be valued in the same manner as the Fair
Value Rate Base. Retirements will be valued at their fair value as reflected in the last previous
Fair Value Rate Base computation.
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• Annual Return on Rate Base: The Annual Return on Rate Base will be multiplied
ten percent (10.0%) on the LINCOLNWOOD share of the Fair Value Rate Base identified in the
most recently available Evanston CAFR, and otherwise conform to the cost of service principles
identified in Section 5.01 (General Principles and Policies). The LINCOLNWOOD share of the
Fair Value Rate Base will be determined by allocating to LINCOLNWOOD a portion of such
Fair Value Rate Base, as adjusted and recalculated from time to time as provided by this
Agreement. This adjustment will be based upon the ratio of each Evanston Water Utility
customer allocation, which includes the City of Evanston's allocation, compared to the total
allocation of all Evanston Water Utility customers established by order of the Illinois
Department of Natural Resources ("IDNR") during the Fiscal Year.
5.4 Depreciation Charge
These charges will be calculated as of the end of each Fiscal Year following commencement of
the delivery of water to LINCOLNWOOD and will consist of one -twelfth (1/12th) of an annual
depreciation charge, calculated by applying the depreciation rates utilized by Evanston identified
in Group Exhibit "C" (Depreciation Rates) to this Agreement, to the original cost of the
depreciable Water Utility asset defined in Section 5.03 (Return on Rate Base) in service
contained in the Fair Value Rate Base allocated to LINCOLNWOOD. As of the date when any
depreciable Water Utility asset will be placed in service or any depreciable Water Utility asset in
the Fair Value Rate Base is retired from service, charges of depreciation to LINCOLNWOOD
will be correspondingly adjusted as of the end of the Fiscal Year in which the addition or
retirement took place.
5.5 Ouantity Charge
LINCOLNWOOD will pay Evanston a Quantity Charge based upon a Quantity Rate equal to
LINCOLNWOOD's share of the "Operating Costs" per 1,000 gallons of water delivered to the
Point of Delivery. The "Operating Costs" to be included in determining the Quantity Rate are the
costs assigned to the functions of Administration, Pumping, Filtration, and Distribution,
identified in the Evanston CAFR of the Evanston Water Fund described in Group Exhibit "B"
attached to this Agreement. The Operating Costs applicable to water deliveries during the
Service Year will be determined based on the results of operation of the Evanston Water Utility,
as audited by independent certified public accountants selected by Evanston, as reviewed by
LINCOLNWOOD. The total Quantity Charge will be adjusted at the end of each Service Year
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to reflect the actual, total Quantity Charge owed to Evanston based on the Fiscal Year Operating
Costs finally determined by the latest annual audit performed by the current Evanston
independent certified public accountant as defined in Section 5.08 (True Up). In determining the
Quantity Rate, Operating Costs will be allocated to LINCOLNWOOD based upon the ratio of its
Average Day Demand identified in Section 7 (Water Supply; Allocation; Distribution) of this
Agreement supplied by the Evanston Water Utility, to the aggregate of the Average Day Demand
of all Evanston Water Utility, LINCOLNWOOD and other customers or users of the Evanston
Water Utility system during the Fiscal Year. The Quantity Rate will not include any portion of
any costs included in computing the Fair Value Rate Base, Annual Return on Rate Base or
Depreciation Charge.
5.6 Demand Charge and Ouantitv Charge Smoothing
Demand Charge Cap. Upon completion of the Clearwell Project immediately south of
the Evanston Water Utility, and upon completion of the Intake Replacement Project, but not later
than the end of year 2022, any increase and decrease in any Evanston Water Utility Asset shall
not increase the total rate charged to LINCOLNWOOD by more than four percent (4%) per
year until the entire cost of the Evanston Water Utility Asset has been recovered by either Party
compared to the cost change that would have occurred if the Evanston Water Utility Asset
change was not smoothed. No cap or smoothing will be calculated due to the change in total
customers utilizing the Evanston Water Utility. Any increased capital costs associated
exclusively with the acquisition of new customers by Evanston will not be included in the rate
calculation for LINCOLNWOOD. LINCOLNWOOD's rate shall not be increased as a result of
the acquisition of new Evanston customers. Evanston may accelerate the replacement of assets
assigned to LINCOLNWOOD, as needed, to add a new Evanston customer or may add new
assets beneficial to LINCOLNWOOD, provided that the new rate for LINCOLNWOOD is equal
to or less than the then -current LINCOLNWOOD rate.
Quantity Charge Cap. The Parties agree to cap the annual increase of the labor costs
portion of the Operating Costs that are used to determine the Quantity Rate based on the actual,
annual aggregate cost increase (if any), if Evanston labor costs increase more than 4% in any
given year. When Evanston labor costs increase by more than 4% any given year, the labor
costs portion of the Operating Costs shall be capped based on the average of the annual
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percentage increases of labor costs for public works employees of Evanston and Lincolnwood
(e.g., Evanston increase (4.4%) plus Lincolnwood Increase (4.0%) divided by two equals a 4.2%
capped increase).
5.7 LINCOLNWOOD Audit Rights
Not more than once per year, LINCOLNWOOD shall have the right to audit all parts of the
water charges, and the components thereof, as well as any other fees, charges, or assessments
provided for in this Agreement. LINCOLNWOOD's right to audit includes, but is not limited to,
the Demand Charge, the Quantity Rate, the Quantity Charge, the Rate Base and the Depreciation
Charge, as well as any other components of the water charges. Evanston shall reasonably
cooperate with requests by LINCOLNWOOD and its auditors regarding reasonable requests for
documents and information needed to complete the audit related to the rights and obligations of
the Parties under this Agreement. Each Party is responsible for its respective costs of the audit.
5.8 True-UD
At the end of each Service Year and subject to Section 5.07 (LINCOLNWOOD Audit Rights),
there will be a final Quantity Charge or credit issued by Evanston to LINCOLNWOOD to adjust
the total Quantity Rate calculated by utilizing the latest available Fiscal Year audited Operating
Costs. Any adjustments to the water charges, and the components thereof, as well as any other
fees, charges, or assessments provided for in this Agreement, that require additional payment to
Evanston by LINCOLNWOOD or any credit to LINCOLNWOOD by Evanston shall be
calculated as part of this annual True -Up process. The Parties have attached as Group Exhibit
"A" to this Agreement, illustrative examples of the "True -Up" process. After the True -Up
process and any dispute resolution process are completed, this final charge or credit shall be paid
by the responsible Party within thirty (30) calendar days of the issuance of the invoice or credit
by separate payment or as otherwise mutually agreed to in writing by the Parties.
6. Water Svstem Definitions
6.1 Water Svstem Definitions and Related Terms
In this Agreement, the following definitions apply:
• Evanston Clearwell Project: The replacement of the 5.0 MG treated water storage
facility located on the south side of Lincoln Street opposite the water treatment plant (See,
Group Exhibit "B", #203 of the Treatment Plant asset list).
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• Evanston Connection Facility: Evanston control valve, delivery meter, piping and
other components necessary to supply water to LINCOLNWOOD that will be housed in an
underground vault near the intersection of Oakton Avenue and the North Shore Channel, owned
by Evanston and included as a transmission component in the rate base.
• Evanston Intake Replacement Project: The replacement of Evanston's 36" and
42" diameter intake(s) and all appurtenances thereto (See Group Exhibit "B", #9 and #13 in the
Source of Supply asset list).
Evanston Water Utility: The assets in the Source of Supply, Pumping Plant,
Treatment Plant, Water Plant and Transmission locations in service as of December 31, 2015,
and identified in Group Exhibit "B" to this Agreement, which components may adjust annually
as of the end of each Fiscal Year to reflect additions to, and retirements of, Water Utility
components.
• Lincolnwood Water System: The infrastructure that makes up the Lincolnwood
Water System, including but not limited to, the water treatment, pumping, storage, distribution
and delivery system, pump stations, transmission and distribution mains, valves, meters, and
connection facilities.
• Point of Delivery: The point of connection of the LINCOLNWOOD Water
System and the Evanston Connection Facility adjacent to the underground vault at Evanston
border on the East side of the North Shore Channel.
• Project: The construction of the Evanston Connection Facilities, the Evanston
Facilities Adjustments, the LINCOLNWOOD Water System, and all related and necessary
improvements made to the Evanston Water Utility, and the Lincolnwood Water System, as
provided for in this Agreement.
To the extent a word or term is used in this Agreement that is not defined herein,
the first source of interpretation of the word or term shall be its definition in the AWWA M-1
Manual or other AWWA publication pertaining to water transmission and distribution facilities
(if defined therein), then any applicable federal or state laws (e.g., Clean Water Act) and then the
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common definition found in the most recent edition of any mutually agreed upon nationally
published dictionary (e.g., Webster's Dictionary or Merriman's Dictionary).
7. Water Supuly; Allocation. Distribution
7.1 Water Suvvly. Sale and Purchase: Allocation
Evanston will sell and deliver to LINCOLNWOOD the full water requirements of the
LINCOLNWOOD Water System, except as otherwise set forth in this Agreement.
LINCOLNWOOD will purchase all of the water it receives from Evanston in accordance with
this Agreement.
LINCOLNWOOD is responsible to obtain and maintain a water allocation from the Illinois
Department of Natural Resources ("IDNR"). In this Agreement, Average Day Demand
("ADD") means the IDNR water allocations established in November 2011 for Lincolnwood. In
this Agreement, Maximum Flow Rate ("MFR") means the rate of flow that Evanston is required
to provide at the Point of Delivery.
The MFR to Lincolnwood is based on the Year 2030 IDNR water allocation assigned to
Lincolnwood multiplied by a 1.65 peaking factor.
• Illustrative formula for calculating the MFR for Lincolnwood: Lincolnwood
Year 2030 IDNR water allocation = 2.429 x 1.65 = 4.0079 Million Gallons Per Day
("MGD") MFR.
7.2 Emergency Connections
This Agreement will not prohibit LINCOLNWOOD or Evanston from entering into any
emergency water service agreement with another municipality, water agency, or other source.
Nothing in this Section will prevent Evanston's right to collect all water charges provided for in
this Agreement.
7.3 Coefficient of Friction
LINCOLNWOOD shall maintain its transmission main to provide a coefficient of friction ("C-
factor") to be determined after the completion of the final design engineering for the
LINCOLNWOOD Water System, which C-factor will be incorporated into this Agreement by a
jointly executed side -letter issued prior to the delivery date of water. Unless otherwise agreed to
by the Parties, the C-factor rating of the LINCOLNWOOD Water System between the Point of
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Delivery and the LINCOLNWOOD booster station or LINCOLNWOOD (referred to as the
"Evanston Pressurized Zone" of the LINCOLNWOOD Water System) receiving reservoir shall
not be less than a C-factor rating of 90. If the C-factor falls below 90 within the Evanston
Pressurized Zone of the LINCOLNWOOD Water System, Evanston is not required to meet the
Maximum Flow Rate as indicated in Section 7.01 (Water Supply Sale and Purchase; Allocation).
The Maximum Flow Rate shall decrease directly on a one to one basis with the decrease in C-
factor rating (e.g., each one (1) point loss or gain of C-factor equals a 1.11% change in the
maximum flow rate: 80 C-factor = 88.90% maximum flow rate). The C-factor is identified in
Cameron Hydraulic Data, or equivalent successor statement of measure, and typically used for
the design of concrete pipes to reflect the roughness of the pipe after many years of operation.
LINCOLNWOOD shall test its transmission main beginning in Year 2023, and every fifth year
thereafter, to determine the C-factor rating and promptly provide those results to Evanston to
ensure adherence to this requirement. If the LINCOLNWOOD's transmission main fails to meet
the required C-factor rating as set forth in this Section, then another C-factor test shall be
conducted during the subsequent Service Year.
7_4 Pressures
Evanston will supply water to LINCOLNWOOD by direct pressure from the Evanston Water
Plant without intermediate pumping from reservoirs. Evanston shall control operating pressures
within its water distribution system and adjust such pressures according to the water demands
within its water distribution system to ensure that the pressure at the Point of Delivery is at all
times between 40 and 50 pounds per square inch ("PSI").
7.5 Supply and Service Agreement Only. Title to Water
Nothing in this Agreement shall be construed as granting any proprietary or other interest in the
Evanston Water Utility to LINCOLNWOOD. Nothing in this Agreement shall be construed as
granting any proprietary or other -interest in the LINCOLNWOOD Water System to Evanston.
Evanston and LINCOLNWOOD agree that this Agreement is solely an agreement for the sale
and purchase of a supply of Water and related services. Title to Water passes at the Point of
Delivery from Evanston to LINCOLNWOOD. Evanston agrees to deliver an adequate water
supply on a regular basis to maintain LINCOLNWOOD water requirements as provided for in
this Agreement. Evanston agrees to not utilize off-peak pumping to meet the LINCOLNWOOD
water requirements, unless requested by LINCOLNWOOD.
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7.6 Temporary Restriction
Evanston has the right to restrict, on a temporary basis, the supply of water to LINCOLNWOOD
in order to ensure an adequate water supply to all customers of the Evanston Water Utility for
basic water services, and firefighting purposes, provided that the duration of the temporary water
restriction is limited to the minimum time period necessary to resolve the condition or
unforeseen emergency that caused the temporary restriction. Evanston shall take immediate,
commercially reasonable actions to fix, repair, employ a temporary solution until a permanent
solution is available or resolve the condition or unforeseen emergency that caused the temporary
water restriction. If there is an insufficient water supply available to serve LINCOLNWOOD and
all other customers, LINCOLNWOOD will receive its pro-rata share of the amount of water that
is stored and available at the Evanston Water Utility based on the IDNR water allocation(s) as
defined and identified in Group Exhibit "B" to this Agreement. If Evanston temporarily
restricts the supply of water to LINCOLNWOOD under this Section, it shall deliver immediate
written notice to LINCOLNWOOD that explains the reason(s) for the restriction, identifies the
estimated reduction in the volume of water to be supplied to LINCOLNWOOD and the
anticipated duration of the reduction in water supply service. During the first twenty-four (24)
hour period of the temporary water restriction, Evanston shall provide LINCOLNWOOD with
status reports in subsequent eight (8) hour intervals relative to the progress in resolving the
condition or unforeseen emergency that caused the temporary water restriction. If the temporary
water restriction extends or is anticipated to extend beyond a twenty-four (24) hour period, the
Parties agree to meet to discuss commercially reasonable options and actions to fix, repair,
employ a temporary solution until a permanent solution is available or resolve the condition or
unforeseen emergency that caused the temporary water restriction.
7.7 Maintenance
Scheduled maintenance and repair to the Evanston Water Utility or the LINCOLNWOOD Water
System that may impact water supply and service to LINCOLNWOOD cannot be done except
upon prior notice to the other Parties of not less than five (5) days. Scheduled maintenance to
water system infrastructure during peak demand periods shall be avoided to the extent possible.
Notice of emergency maintenance or repair will be provided by the Party performing the
maintenance and repair to the other Party as soon as practicable under the circumstances. Each
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Party agrees to maintain their respective water systems in accordance with the manufacturers'
warranty and operational specifications.
7.8 Lincolnwood Option to Purchase Water from Other Sunuliers
Notwithstanding any other provision in this Agreement, Lincolnwood may purchase water from
other water suppliers under the following two (2) situations. First, Lincolnwood may purchase
water from other water suppliers to the extent Evanston fails to deliver to Lincolnwood the full
water requirements up to the total amount of the IDNR water allocations as required by this
Agreement. In the event of such failure by Evanston, but excluding temporary restriction(s)
under Section 7.06 or maintenance situations under Section 7.07 above, Evanston shall provide
written notice to Lincolnwood of the service failure, which shall include a description of the
operational or technical reasons for the failure to deliver Lincolnwood's full water requirements.
Second, Lincolnwood may purchase water from the City of Chicago under non -emergency
conditions in order to maintain an active, operational water supply connection.
7.9 Surges and Back -Flows
No surges or back -flows into any Party's water system are allowable under this Agreement.
7.10 LINCOLNWOOD Responsibility for Damage to Evanston's Water Utility
LINCOLNWOOD is responsible for damage to the Evanston Water Utility or of any of its
customers due to surges and back -flows caused by malfunction or misuse of LINCOLNWOOD's
Water System, including, without limitation, valve operation or booster station operation,
excluding damage where Evanston is responsible for the operation of the LINCOLNWOOD
Water System, including, without limitation, its valve operation or booster station.
LINCOLNWOOD shall install a flow control system and a pressure recording system consisting
of remotely operated flow control valve(s) at the LINCOLNWOOD receiving reservoir(s).
LINCOLNWOOD shall provide the necessary equipment to transmit pressures, rates of flow and
receiving reservoir(s) elevations prior to delivery of water by Evanston. All devices necessary for
the control and transmission of pressures, levels and rates of flow of water furnished to
LINCOLNWOOD that are part of the LINCOLNWOOD Water System shall be provided and
maintained by LINCOLNWOOD, and comply with the provisions of Section 10 (Meters and
Measurements; Meter Testing). Water pressure and rate of flow readings shall be transmitted to
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the Evanston Pumping Station. All flow control valves within the Evanston Water Utility shall
be controlled by Evanston in accordance with the provisions of this Agreement.
7.11 Evanston's Resnonsibilitv for Damage to LINCOLNWOOD's Water Svstem
Evanston is responsible for damage to the LINCOLNWOOD Water System or of the water
systems any of its customers due to surges and back -flows caused by malfunction or misuse of
Evanston's Water Utility, including, without limitation, valve operation, booster station
operation or pump station operation.
8. Existing and Future Customers of Evanston; LINCOLNWOOD Other Users
8.01 Existing and Other Water Customers Served by Evanston
Evanston agrees that it will continue to supply water to its existing customers without impairing
LINCOLNWOOD's right to Water service from Evanston under this Agreement, or impairing
Evanston's ability to deliver Water to LINCOLNWOOD under this Agreement. Nothing in this
Agreement limits Evanston executing new, modified or amended agreements with any other
current or future wholesale water customer served by Evanston. LINCOLNWOOD agrees
Evanston has the right to serve new wholesale water customer(s) subject to its obligations to
LINCOLNWOOD under this Agreement.
8.2 Northwest Water Commission
In the event of the loss of the Northwest Water Commission ("NWC") between the years of
2034-2047, the change in the total rate increase shall be calculated, and Lincolnwood shall be
assessed, not more than fifty percent (50%) of the rate increase incurred by the loss of NWC.
Assuming the loss of NWC between the years of 2034-2047, total Lincolnwood rate increases
shall be capped at eight percent (8%) per annum. Evanston shall take all commercially
reasonable actions to reduce all assets in use at the WTP to reflect the new plant demand without
NWC. After 2048, LINCOLNWOOD rates shall be recalculated according to this Agreement.
8.3 Liability for Unreasonable Delav by LINCOLNWOOD
If LINCOLNWOOD fails or refuses to complete the LINCOLNWOOD Water System as
required by this Agreement, then LINCOLNWOOD shall pay to Evanston all reasonable, actual,
documented costs incurred by Evanston as listed in Section 16.03 (G, H, or I) (Termination by
LINCOLNWOOD), and in Sections 4.01 (LINCOLNWOOD Notice to Evanston to Proceed
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With Preliminary Project Phase Work) through Section 4.07 (Commencement of Obligation to
Deliver and Receive Water). If LINCOLNWOOD fails to complete the LINCOLNWOOD
Water System due to a Force Majeure Event(s) or any other delays that prevent the completion of
LINCOLNWOOD's Project Improvements until after the delivery of water (Section 4.04),
LINCOLNWOOD shall not be obligated to pay to Evanston any costs or penalty, provided that
LINCOLNWOOD has taken and continues to take all commercially reasonably actions to
complete the LINCOLNWOOD Project Improvements as soon as reasonably possible after the
expected delivery date of water.
8.4 Liability for Unreasonable Delav by Evanston
If Evanston fails or refuses to complete the components at the Point of Delivery in a
commercially reasonable time frame as outlined in Section 4.01 (LINCOLNWOOD Notice to
Evanston to Proceed with Preliminary Project Phase Work) through Section 4.07
(Commencement of Obligation to Deliver and Receive Water) and LINCOLNWOOD are unable
to receive water from Evanston by the anticipated initial delivery date of water, or such other
alternate water delivery date, as provided for in Section 4.01 (LINCOLNWOOD Notice to
Evanston to Proceed with Preliminary Project Phase Work) through Section 4.07
(Commencement of Obligation to Deliver and Receive Water) above, due to such failure or
refusal by Evanston, then Evanston will pay to LINCOLNWOOD the difference between the
water rate that would have been charged by Evanston under this Agreement, and the then -
applicable Chicago water rate (or the water rate charged by an alternate water supplier).
9. Facility Completion Schedule
9.1 Specifications and Seauence of Construction for the ProiectImprovements
After the approval of this Agreement, and subject to the notice to proceed provisions set forth in
this Agreement, the Parties agree to work cooperatively together and to share relevant
information to develop their respective specifications for their own Project improvements and to
prepare construction schedules and operating procedures for the Project improvements, including
the joint review of preliminary design plans and final design plans for review comment purposes
and delivery of periodic status reports by each Party relative to the Evanston Connection
Facilities and the LINCOLNWOOD Water System.
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9_2 IEPA and Other ADDrovals for the Proiect
The Parties agree to apply for, obtain and maintain all permits, licenses and other approvals
required by the federal, state, county and local governments and governmental regulatory
agencies with jurisdiction over the Project.
9_3 Easements. Licenses. Permits. Fees and ADDrovals
LINCOLNWOOD shall take all necessary action to acquire easements, permits and licenses for
the construction of the LINCOLNWOOD Water System Facilities within Evanston's corporate
boundaries and outside of Evanston's corporate boundaries. LINCOLNWOOD agrees to pay all
required permit fees, license fees and plan review fees to all governmental regulatory agencies
with jurisdiction over the Project, except for Evanston. Construction of the LINCOLNWOOD
Water System shall conform to all applicable laws, ordinances, codes, regulations and
specifications.
10. Meters and Measurements: Meter Testing
10.1 Unit of Measurement
The unit of measurement for water delivered pursuant to this Agreement will be gallons of water,
U.S. Standard Liquid measure, and all meters installed pursuant to this Agreement must, unless
the Parties otherwise agree, be so calibrated, and must read at one thousand (1,000) gallons of
water.
10.2 Sunervisory Control and Data Acquisition f"SCADA" I
Evanston shall in real time provide to LINCOLNWOOD the following SCADA information,
except during SCADA failure:
a) total plant flow data;
b) flow through LINCOLNWOOD master meter data;
c) pressure at LINCOLNWOOD delivery meter facility data; and
d) Evanston control valve position.
LINCOLNWOOD shall in real time provide to Evanston incoming and outgoing flow data from
each receiving reservoir as well as the water level in each receiving reservoir, except during
SCADA failure. In regard to on -site visits and inspections of each Party's respective water
system facilities, the requesting Party shall request any on -site visits and inspections in advance
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by written notice to the receiving Party and shall comply with all security protocols and be
accompanied by the receiving Party's staff during the on -site visit or inspection, and the
receiving Party shall cooperate in scheduling such on -site visits and inspections. Evanston and
LINCOLNWOOD agree to promptly repair any SCADA failures.
10.3 Delivery Meters
Water sold and delivered to LINCOLNWOOD pursuant to this Agreement must be measured
through a meter or meters furnished, installed, maintained, replaced and read by Evanston (the
"Delivery. Meters"). Except as provided in this Agreement, all billing for Water sold and
supplied pursuant to this Agreement must be based upon Evanston's readings of the Delivery
Meters, subject to LINCOLNWOOD's right to audit Evanston's readings under Section 5.07
(LINCOLNWOOD Audit Rights) above. All Delivery Meters shall be in good working order,
shall at all times meet or exceed the standards of the AWWA, or its successor entity, and shall be
available for inspection, testing, and checking by LINCOLNWOOD upon reasonable request to
Evanston. Evanston shall at its cost maintain, inspect, test, calibrate and adjust all Delivery
Meters not more than two (2) times per year. Representatives from LINCOLNWOOD shall have
the right to witness all such maintenance, inspections, tests, calibrations and adjustments.
Lincolnwood shall pay to Evanston the actual cost incurred by Evanston in maintaining, testing,
calibrating and adjusting the Delivery Meters, which cost shall be included as part of the
Quantity Charge. Copies of the results of all such maintenance, inspections, tests, calibrations
and adjustments must be furnished by Evanston to LINCOLNWOOD upon request.
10.4 Check Meters
LINCOLNWOOD may, at their option and expense, install and operate a check meter(s) (a
"Check Meter") to check each Delivery Meter, but the measurement of water for billing pursuant
to this Agreement shall, except as hereinafter provided, be measured solely by the Delivery
Meters. All Check Meters shall meet or exceed the standards of the AWWA and shall be
available for inspection and checking by Evanston upon reasonable request to
LINCOLNWOOD. The costs for installation, maintenance, regulatory fees, reading, testing,
calibration, and adjustment of all Check Meters shall be performed by LINCOLNWOOD at
LINCOLNWOOD's sole cost and expense.
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10.5 Meter Calibration and Adiustment
If either Evanston or LINCOLNWOOD at any time observes a variation between a Delivery
Meter and a Check Meter or any other evidence of meter malfunction, such Party must promptly
notify the other Party, and Evanston and LINCOLNWOOD agree to cooperate to inspect and test
the accuracy of such meter(s). If upon any inspection or test, any meter is found to be out of
service or the percentage inaccuracy of any meter is found to be in excess of two percent (2%)
slow or fast, then the meter's registration, as well as charges for water based on incorrect
metering, must be corrected by agreement of Evanston and LINCOLNWOOD based on the best
data available. The best data available is defined as the registration of an installed Check Meter
that is accurately registering equal to or less than two percent (2%) slow or fast during the
period extending back to the time when such inaccuracy began. If it is impossible to determine
the time period of inaccuracy, the correction period will extend back one-half of the time elapsed
since the last date of calibration. Otherwise, the amount of water delivered during such period
may be estimated by:
• correcting the error if the percentage of the error is ascertainable by calibration
tests or mathematical calculation; or
• if the error is not ascertainable by calibration tests or mathematical calculation, by
estimating the quantity of water delivered by reference to deliveries during the preceding periods
under similar conditions when the meter or meters were registering accurately.
10.6 Notification Concernins Meter Tests
Evanston and LINCOLNWOOD shall deliver to the other Party written notice at least seventy-
two (72) hours in advance of the time of any planned maintenance, inspection, test, calibration,
adjustment or other work affecting any Delivery Meter or Check Meter so that the other Party
may arrange to have a representative present. If said representative is not present at the time set
in such notice, the inspection, test, calibration, adjustment or other work will proceed in the
absence of said representative. Notices required under this Section 10.06 shall be given to the
following persons at the following addresses, unless otherwise provided in writing by
LINCOLNWOOD:
If for Evanston:
Director of Public Works Agency
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555 Lincoln Street
Evanston, Illinois 60201
Phone: 847.448.4311
Email: current business email address
If for Lincolnwood:
Director of Public Works
Village of Lincolnwood
7001 N. Lawndale Avenue
Lincolnwood, IL 60712
Phone: 847-675-0888
Fax: 847-675-4432
Email: current business email address
10.7 Removal of Meters
Delivery Meters and Check Meters may be removed upon termination of this Agreement only
upon mutual agreement of the Parties and upon the release of any easements related thereto.
10.8 Meters for Customers
Each Party is responsible for providing water meters to its own customers.
11. Dispute Resolution
11.01 Nesotiation
If a dispute arises between Evanston and LINCOLNWOOD concerning this Agreement, the
Parties will first attempt to resolve the dispute by negotiation. Each Party will designate persons
to negotiate on their behalf. The Party contending that a dispute exists must specifically identify
in writing all issues and present it to the other Parties. The Parties will meet and negotiate in an
attempt to resolve the matter. If the dispute is resolved as a result of such negotiation, there must
be a written determination of such resolution, and ratified by the corporate authorities of each
Party, which will be binding upon the Parties. If necessary, the Parties will execute an
addendum to this Agreement. Each Party will bear its own costs, including attorneys' fees,
incurred in all proceedings in this Section. If the Parties do not resolve the dispute through
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negotiation, any Party to this Agreement may pursue other remedies under Section 11.02
(Remedies) below to enforce the provisions of this Agreement.
11.2 Remedies
In any action with respect to this Agreement, the Parties are free to pursue any legal remedies at
law or in equity. Each and every one of the rights, remedies, and benefits provided by this
Agreement shall be cumulative and shall not be exclusive of any other rights, remedies, and
benefits allowed by law. Each Party will bear its own costs, expenses, experts' fees, and
attorneys' fees, incurred in all litigation arising under this Agreement.
11.3 Venue and Anulicable Law
All questions of interpretation, construction and enforcement, and all controversies with respect
to this Agreement, will be governed by the applicable constitutional, statutory and common law
of the State of Illinois. The Parties agree that, for the purpose of any litigation relative to this
Agreement and its enforcement, venue will be in the Circuit Court of Cook County, Illinois or
the Northern District, Eastern Division of the United States District Court, Chicago, Illinois, and
the Parties consent to the in personam jurisdiction of said Courts for any such action or
proceeding.
12. Force Maieure
12.1 Excuse From Performance
No Party will be liable in damages to any other Party for delay in performance of, or failure to
perform, its obligations under this Agreement, if such delay or failure is caused by a Force
Majeure Event as defined in Section 12.02 (Force Majeure Event) below. If a Party cannot
perform under this Agreement due to the occurrence of a Force Majeure Event, then the time
period for performance of the Party under this Agreement shall be extended by the duration of
the Force Majeure Event.
12.2 Force Maieure Event
A "Force Majeure Event" means an event not the fault of, and beyond the control of, the Party
claiming excuse which makes it impossible or extremely impracticable for such Party to perform
obligations imposed on it by this Agreement, by virtue of its effect on physical facilities and their
operation or employees essential to such performance. Force Majeure Events include:
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• an "act of God" such as an earthquake, flood, fire, Lake Michigan seiche, tornado,
earth movement, or similar catastrophic event,
• an act of terrorism, sabotage, civil disturbance or similar event,
• a strike, work stoppage, picketing, or similar concerted labor action,
• delays in construction caused by unanticipated negligence or breach of contract
by a third party or inability to obtain essential materials after diligent and timely efforts, or
• an order or regulation issued by a Federal or State regulatory agency after the
Effective Date or a judgment or order entered by a Federal or State court after the Effective Date.
A Force Majeure Event does not include a change in economic or market conditions or a change
in the financial condition of a Party to this Agreement.
12.3 Notice
The Party claiming a Force Majeure Event excuse must deliver to the other Parties a written
notice of intent to claim excuse from performance under this Agreement by reason of a Force
Majeure Event. Notice required by this Section must be given promptly in light of the
circumstances. Such notice must describe the Force Majeure Event, the services impacted by the
claimed event, the length of time that the Party expects to be prevented from performing, and the
steps which the Party intends to take to restore its ability to perform its obligations under this
Agreement.
13. Preservation of Water Rights
Evanston intends to preserve all of its water rights, irrespective of whether the water held under
such water rights is allocated under this Agreement. Nothing in this Agreement shall be
construed as an abandonment, or evidence of intent to abandon, any of the water rights that
Evanston presently possesses.
14. Good Faith and Fair Dealing
The Parties each acknowledge their obligation under Illinois law to act in good faith toward, and
deal fairly with, each other with respect to this Agreement.
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15. Disconnection. Removal Relocation of Connection Facilities or Transmission Mains
15.01 Termination of Agreement
Upon termination of this Agreement, Evanston, in its discretion and at its cost, may disconnect or
remove the Evanston Connection Facilities and / or the LINCOLNWOOD Connection Facilities
and / or transmission mains located within Evanston's rights of way or utility easements, but
only after the Parties mutually approve and sign an agreement and a release of easements that
pertain to disconnection and / or removal of the Evanston Connection Facilities, the
LINCOLNWOOD Connection Facilities and /or the transmission mains.
15.02 Relocation
In the event that the Point of Delivery or any portion of the Evanston Connection Facilities and
the LINCOLNWOOD Connection Facilities or any transmission mains need to be relocated due
to unanticipated circumstances or at the request of either Party, the Parties may negotiate an
addendum to this Agreement that provides for the relocation, reconstruction, financing and cost
sharing of the relocation work. If this Agreement is terminated, within one (1) year of the
effective date of such termination, all connection facility assets, components, and equipment
within Evanston must be removed at LINCOLNWOOD's sole cost and expense, unless
otherwise agreed upon by the Parties.
16. Termination; Default
16.1 Termination by Evanston
This Agreement shall be subject to termination if a court of competent jurisdiction restricts or
limits any of Evanston's rights to obtain, sell, contract for, or distribute water to
LINCOLNWOOD in a manner that prohibits Evanston from complying with its obligations to
LINCOLNWOOD under this Agreement. Evanston will have the right to terminate this
Agreement if LINCOLNWOOD fails and defaults with respect to its obligations under Section
5.02 (Billing and Payments) of this Agreement, and otherwise fails and refuses to cure such
default under Section 11.01 (Negotiation) and Section 16.04 (Default; Cure Period; Relief).
16.2 Termination by Mutual Agreement
Only upon mutual consent, the Parties may agree to terminate this Agreement, in writing, after
the approval of a termination or wind -down agreement by their respective corporate authorities.
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16.3 Termination by LINCOLNWOOD
LINCOLNWOOD shall have the right to terminate this Agreement if it delivers written notice to
Evanston of its intention to terminate this Agreement not less than five (5) years prior to the
termination date of the then -existing Term. In addition, LINCOLNWOOD has the right to
terminate this Agreement for the following reason(s):
A. If LINCOLNWOOD is unable to obtain easements or title to real property to construct the
LINCOLNWOOD Connection Facilities and other necessary LINCOLNWOOD Project
Improvements.
B. If the LINCOLNWOOD Engineering and Route Study determines that the LINCOLNWOOD
Connection Facilities and other necessary LINCOLNWOOD Project Improvements will not be
feasible for any reason, including but not limited to a lack of technical feasibility to complete the
LINCOLNWOOD Project Improvements, or a lack of relative financial feasibility to pay for the
LINCOLNWOOD Project Improvements.
C. If the bid results for the LINCOLNWOOD Connection Facilities and other necessary
LINCOLNWOOD Project Improvements exceeds:
1) the LINCOLNWOOD Engineer's Estimate;
2) the approved LINCOLNWOOD Project Budget; or
3) the LINCOLNWOOD Project Financial / Debt Repayment schedule.
LINCOLNWOOD shall provide all documents and data to Evanston prior to LINCOLNWOOD
cancelling the bid.
D. Evanston fails to deliver water in accordance with or otherwise fails to comply with the terms
of this Agreement.
E. LINCOLNWOOD can terminate this Agreement at the end of the Initial Term, or as
otherwise provided during any Extended Term, subject to timely written notice to Evanston.
F. LINCOLNWOOD can terminate this Agreement on or before December 31, 2018, if
Lincolnwood is unable to negotiate with the City of Chicago a renewal of its existing
agreement with Chicago, which renewal must include, at a minimum, Chicago's provision to
Lincolnwood of an acceptable emergency water supply and otherwise be consistent with
Lincolnwood's purchase of water from Evanston as contemplated in this Agreement.
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G.LINCOLNWOOD can terminate this Agreement after its issuance of written notice to
proceed with Evanston's Preliminary Project Phase Work as set forth in Section 4.01 above, provided
LINCOLNWOOD fully reimburses Evanston for all reasonable actual, documented costs incurred by
Evanston relating only to Project consultants and Project engineering fees and expenses that are incurred
by Evanston after the date of issuance of LINCOLNWOOD's Notice to Evanston to Proceed with
Preliminary Project Phase Work. Evanston or LINCOLNWOOD will not be reimbursed for staff time or
corporation counsel time or outside legal counsel fees and expenses.
H. LINCOLNWOOD can terminate this Agreement after its issuance of written notice to
proceed with Evanston's Final Engineering Design Work as set forth in Section 4.02 above,
provided LINCOLNWOOD fully reimburses Evanston for all reasonable actual, documented
costs incurred by Evanston relating only to Project consultants and Project engineering fees and
expenses that are incurred by Evanston after the date of issuance of LINCOLNWOOD's Notice
to Evanston to Proceed with Final Engineering Design Work. Evanston or LINCOLNWOOD
will not be reimbursed by the other Party for staff time or corporation counsel time or outside
legal counsel fees and expenses.
I. LINCOLNWOOD can terminate this Agreement prior to acceptance of water from Evanston,
provided LINCOLNWOOD fully reimburses Evanston for all reasonable actual, documented
costs incurred by Evanston, relating only to Project consultants and Project engineering fees and
expenses and construction costs that are incurred by Evanston after the date of issuance of
LINCOLNWOOD's Notice to Evanston to Proceed with Construction as set forth in Section 4.03
above. Evanston or LINCOLNWOOD will not be reimbursed by the other Party for staff time or
corporation counsel time or outside legal counsel fees and expenses.
16.4 Default; Cure Period; Relief
In the event any Party defaults in regard to any obligation under this Agreement, the non -
defaulting Party shall send written notice of the default, with a description of the default, and a
request that the defaulting Party cure the default. Any Party deemed to be in default under this
Agreement by another Party shall have a thirty (30) calendar day cure period to resolve the
default to the other Party's satisfaction or to initiate and continue to take actions that are
designed to cure the default in a reasonable time period so that the Party in default is in
conformance with the terms of this Agreement. In the event that a default is not cured, the non -
defaulting Party and the defaulting Party shall participate in the "Dispute Resolution" process
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contained in Section 11.01 (Negotiation) above. If the Dispute Resolution process is not
successful, then either Party may seek to enforce remedies in Section 11.02 (Remedies) to
enforce the provisions of this Agreement.
17. General Conditions
17.1 Entire Agreement
This Agreement constitutes the entire agreement of the Parties concerning all matters specifically
covered by this Agreement. There are no representations, covenants, promises or obligations not
contained in this Agreement that form any part of this Agreement or upon which any of the
Parties is relying upon in entering into this Agreement. There are no other commitments,
understandings, promises or conditions among the Parties in any other contract or agreement,
whether oral or written, and this Agreement supersedes all prior written or oral agreements,
commitments and understandings among the Parties.
17.2 Prompt Pavment
In regard to the payment of any fee, charge or assessment provided for under this Agreement, the
Parties are subject to and shall comply with the Local Government Prompt Payment Act (50
ILCS 50511, et seq.).
17.3 Compliance With Laws
The Parties to this Agreement shall comply with all applicable Federal, State and local laws,
rules and regulations in carrying out the terms and conditions of this Agreement.
17.4 Regulatory Bodies
This Agreement shall be subject to all valid rules, regulations, and laws applicable hereto passed
or promulgated by the United States of America, the State of Illinois, or any governmental body
or agency having lawful jurisdiction, or any authorized representative or agency of any of them;
provided, however, that this Section 17.04 shall not be construed as waiving the right of any
Party to challenge the validity of any such rule, regulation, or law on any basis, including
impairment of this Agreement.
17.5 Illinois Freedom of Information Act
The definition of a "public record" in the Freedom of Information Act (5 ILCS 140/1, et seq.)
("FOIA") includes a "public record that is not in the possession of a public body but is in the
possession of a party with whom the agency has contracted to perform a governmental function
30
7/20/18
on behalf of the public body and that directly relates to the governmental function and is not
otherwise exempt under this Act." (5 ILCS 140/7(2). Consequently, the Parties shall maintain
and make available to the other Parties, upon request, their public records relating to the
performance of this Agreement in compliance with the requirements of the Local Records Act
(50 ILCS 205/1, et seq.) and FOIA.
17.6 Interpretation; Headings
This Agreement shall be construed and interpreted so as to preserve its validity and
enforceability as a whole. No rule of construction that a document is to be construed against any
of the drafting Parties shall be applicable to this Agreement. Section headings and titles are
descriptive only and do not in any way limit or expand the scope of this Agreement
17.7 Waiver
The failure of any Party to enforce any section, subsection, term, condition or covenant
(collectively referred to as "provision") of this Agreement shall not be deemed a waiver or
limitation of that Parry's right to subsequently enforce and compel strict compliance with such
provision and every other provision of this Agreement. No provision of this Agreement shall be
deemed waived by any Party, unless the provision to be waived and the circumstances giving rise
to such waiver are set forth specifically in a duly authorized and written waiver of the Party
charged with such waiver. No waiver by either Evanston or LINCOLNWOOD of any provision
of this Agreement shall be deemed or construed as a waiver of any other provision of this
Agreement, nor shall any waiver of any breach be deemed to constitute a waiver of any
subsequent breach whether of the same or a different provision of this Agreement.
17.8 No Individual or Personal Liabilitv
The Parties agree that the actions taken in regard to and the representations made by each
respective Party in this Agreement and by their respective corporate authorities have not been
taken or made in anyone's individual capacity and no mayor/president, board member, council
member, official, officer, employee, volunteer or representative of any Party will incur personal
liability in conjunction with this Agreement.
17.9 No Third Partv Beneficiaries
This Agreement is not intended to benefit any person, entity or municipality not a Party to this
Agreement, and no other person, entity or municipality shall be entitled to be treated as
31
7/20/18
beneficiary of this Agreement. This Agreement is not intended to nor does it create any third
party beneficiary or other rights in any third person or party, including, but not limited to, any
agent, contractor, subcontractor, consultant, volunteer or other representative of any Party hereto.
No agent, employee, contractor, subcontractor, consultant, volunteer or other representative of
the Parties hereto will be deemed an agent, employee, contractor, subcontractor, consultant,
volunteer or other representative of any other Party hereto.
17.10 Amendments
No amendment to this Agreement shall be effective until it is reduced to writing in an addendum
and approved by the corporate authorities of the Parties. All addenda shall be executed by an
authorized official of each Party. If any governmental agency with regulatory authority enacts
new rules or regulations or new nationally recognized water system engineering requirements are
adopted that require the method of water production or any components of the infrastructure used
for the delivery of water under this Agreement to be changed or modified, the Parties agree to
negotiate an addendum to this Agreement that addresses the construction and operation of the
required water system improvements to the Evanston Water Utility and/or the LINCOLNWOOD
Water System, the cost allocation of such improvements among the Parties and the financing of
such improvements.
17.11 Assignment
No Party shall assign, sublet, sell or transfer its interest in this Agreement or any of its rights or
obligations under this Agreement without the prior written, mutual consent of the other Parties.
The terms and conditions of this Agreement shall be binding upon and shall inure to the benefit
of the Parties hereto and their respective successors and assigns.
17.12 Notice
Except as otherwise provided in this Agreement, all notices and other communications in
connection with this Agreement shall be in writing and deemed to be given on the date of
mailing if sent by certified mail, return receipt requested and deposited in the U.S. Mail, postage
prepaid, or may be delivered by messenger delivery, or overnight express mail, or personal
delivery, or via facsimile, or via electronic internet mail ("e-mail") to the current mailing
address(es) or email address(es) of the Parties' principal administrative offices, addressed to the
Mayor/Village President or the City Manager/Village Manager. Facsimile notices shall be
32
7/20/18
deemed valid only to the extent that they are (a) actually received by the individual to whom
addressed and (b) followed by delivery of actual notice in the manner described in either (i), (ii),
or (iii) above within three (3) business days thereafter at the appropriate address set forth below.
E-mail notices shall be deemed valid only to the extent that they are (a) opened by the recipient
on a business day at the address set forth below, and (b) followed by delivery of actual notice in
the manner described in either (i), (ii), or (iii) above within three (3) business days thereafter at
the appropriate address set forth below. Unless otherwise provided in this Agreement, notices
shall be deemed received after the first to occur of (a) the date of actual receipt; or (b) the date
that is one (1) business day after deposit with an overnight courier as evidenced by a receipt of
deposit; or (b) the date that is three (3) business days after deposit in the U.S. mail, as evidenced
by a return receipt. By notice complying with the requirements of this Section, each Party to this
Agreement shall have the right to change the address or the addressee, or both, for all future
notices and communications to them, but no notice of a change of addressee or address shall be
effective until actually received.
Notices and communications shall be addressed to, and delivered at, the following addresses,
unless otherwise directed by the Parties:
If for Citv of Evanston:
With copy to: Corporation Counsel (same address as City Manager)
City Manager
Lorraine Morton Civic Center
2100 Ridge Avenue
Evanston, Illinois 60201
Phone: 847.866.2936
Email:
citvmanauersofficena,citvofevanston.ors
If for Village of Lincolnwood:
Village Manager
Village of Lincolnwood
6900 N. Lincoln Avenue
Lincolnwood, IL 60712
Director
Public Works Agency
555 Lincoln Street
Evanston, Illinois 60201
Phone: 847.448.4311
Email: publicworks@cityofevanston.org
Director of Public Works
Village of Lincolnwood
7001 N. Lawndale Avenue
Lincolnwood, IL 60712
33
7/20/18
Phone: 847-745-4717 Phone: 847-675-0888
Fax: 847-673-9382 Fax: 847-675-4432
Email: current business email address Email: current business email address
With a copy to:
Holland & Knight LLP
131 S. Dearborn Street, 30a' Floor
Chicago, IL 60603
Attention: Steven M. Elrod, Corporation Counsel
By notice with the foregoing requirements of this Section 17.12, the Parties shall have the right
to change the addresses for all future notices and communications to itself, but no notice of such
a change shall be effective until actually received.
17.13 Severabilitv
In the event any term, provision or condition of this Agreement is held invalid by a court of
competent jurisdiction, such invalidity shall not affect other terms, provisions or conditions of
this Agreement which can be given effect without the invalid term, provision or condition. To
this extent and purpose, the terms, provisions and conditions of this Agreement are declared
severable. If any part of this Agreement is adjudged invalid, such adjudication shall not affect the
validity of this Agreement as a whole or of any other part.
17.14 No Separate Legal Entity: No Joint Venture or Partnership or Aaencv
This Agreement establishes a cooperative intergovernmental undertaking, but the Parties do not
intend to create a new or separate legal entity by entering into this Agreement. This Agreement
does not establish or create a joint venture or partnership between the Parties, and no Party shall
be responsible for the liabilities and debts of the other Parties hereto. No Party shall be deemed
to be the agent, employee, or representative of any other Party.
17.15 Independent Sovereisn Status
The Parties to this Agreement are independent, sovereign units of local government and no Party
shall exercise control over either the performance of any other Party or the employees of any
other Party.
34
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17.16 Effective Date
The Effective Date of this Agreement shall be the date that the last authorized signatory signs
and dates this Agreement, which date shall be inserted on the first page of this Agreement. This
Agreement shall become effective only in the event the corporate authorities of each Party
approves this Agreement.
17.17 Authorization
In accordance with applicable state laws, this Agreement was approved by each Party as follows:
A. The adoption of Ordinance -0-18 by the Mayor and City Council of Evanston on
the , 2018.
Zo07o
B. The passage of Resolution 18-_by the Village President and Board of Trustees of the
Village of Lincolnwood on the - 3 .2018.
17.18 Counterparts
This Agreement may be executed in counterparts (including facsimile signatures), each of which
shall be deemed to be an original and all of which shall constitute one and the same Agreement.
17.19 Exhibits
In the event of a conflict between any Exhibit attached hereto and the text of this Agreement, the
text of this Agreement shall control. The following Exhibits are attached to this Agreement and
made a part hereof:
A. Group Exhibit "A": Illustrative Example of "True -Up" Process comprised of Pages A-1
through A-7 (Page A-1: Morton Grove - Niles Water Supply Quantity Rate True Up
Calculation for Service Year 2016; Page A-2: Morton Grove - Niles Water Supply
Estimated Quantity Rate for Service Year 2016 Based on FY 2014 Audited Information;
Page A-3: 2014 Audited Information, City of Evanston, Illinois, Water Fund - Operations
and Maintenance Account, Schedule of Revenues, Expenditures, and Changes in Unreserved
Fund Balance - Budget and Actual for the FY ended December 31, 2014 with
Comparative Totals for FY ended December 31, 2013 (Page 157); Page A-4: Morton Grove -
Niles Water Supply True Up Quantity Rate for Service Year 2016 Based on FY 2015 Audited
Information; Page A-5: 2015 Audited Information, City of Evanston, Illinois, Water Fund -
Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual for the
FY ended December 31, 2015 (Page 123); Page A-6: Calculation of Distribution Expenses
35
7/20/18
Allocated to LINCOLNWOOD; Page A-7: Annual Pumpage (MG) (Water and Sewer 2015
Annual Report, Page 18).
B. Group Exhibit "B": Example of Rate Calculation for LINCOLNWOOD Water Rate
for Service Year 2017 Based on Evanston Audited Information for Fiscal Year 2015
comprised of Pages B-1 through B-21 (Pages B-1 and B-2: Example of Rate Calculation for
LINCOLNWOOD Water Supply Prepared on 12/14/2016 by Dave Stoneback, Morton
Grove - Niles Water Supply Rate Calculation for Service Year 2017, Based on FY 2015 Actual
Information; Pages B-3 to B-12: Evanston Water Utility Component Sheets, Table B-1 dated
6/30/2016 (Reproduction Cost New Less Depreciation As Of December 31, 2015, Pages 1
through 10 of Burns & McDonnell Water Works Properties Valuation); Page B-13: Table B-2
dated 6/30/2016 (Reproduction Cost New Less Depreciation As Of December 31, 2015, Burns &
McDonnell Water Works Properties Valuation); B-14: Table B-3 dated 6/30/2016 (Original Cost
New Less Depreciation As Of December 31, 2015, Burns & McDonnell Water Works
Properties Valuation); Page B-15: Table B-4 dated 6/30/2016 (OCLD and RCNLD At
December 31, 2015, Burns & McDonnell Water
Works Properties Valuation); Page B-16: IDNR Water Allocations as of November 2011; Page
B-17: 2015 Audited Information, City of Evanston, Illinois, Notes to the Financial Statements for
the FY ended December 31, 2015 (Page 40); Page B-18: Evanston Audited Information, City of
Evanston, Schedule of Fixed Assets and Depreciation, Year ended December 31, 2014; Page B-
19: Annual Pumpage, 2015 Monthly Pumpage (MG) and 2015 Average Day Pumpage
(MGD)(Water and Sewer 2014 Annual Report)(Page 17); Page B-20: 2015 Audited Information,
City of Evanston, Illinois, Water Fund — Schedule of Revenues, Expenditures, and Changes in
Net Position — Budget and Actual for the FY ended December 31, 2015 (Page 123); Page B-21:
Evanston Distribution System, Calculation of Percent of System Allocated to LINCOLNWOOD,
Calculation of Depreciation Charges.
C. Group Exhibit "C": Depreciation Rates comprised of Page C-1: Depreciation Rates
(Classes of Plant included: Source of Supply, Pumping Plant, Treatment Plant, Water Plant and
Transmission)
D. Exhibit "D": City of Evanston Ordinance 45-0-18 (Approval of Water Supply Agreement
Between the City of Evanston and the Village of Lincolnwood)
36
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E. Exhibit "E": Village of Lincolnwood Resolution 18- (Approval of Water Supply
Agreement Between the City of Evanston and the Village of Lincolnwood)
IN WITNESS WHEREOF, this Agreement was executed on behalf of the Parties through their
authorized representatives, after all duly required corporate action was taken, as set forth below
on the signature pages.
SIGNATURE PAGES TO FOLLOW
37
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SIGNATURE PAGE FOR
CITY OF EVANSTON
IN WITNESS WHEREOF, the below authorized officials of the City of Evanston signed this
Agreement pursuant to legal authorization granted to him/her under Article VII, Section 10 of
the 1970 Illinois Constitution, the Intergovernmental Cooperation Act (5 ILCS 220/1 et seq.) and
the corporate approval granted by passage of Ordinance 45-0-18 by the Corporate Authorities of
the City of Evanston.
Attest:
By:
Name: De*ent i� t�ArclO 6 ar'xeZ
De—FV ty City Clerk, City of Evanston
Date, 2018
City of Evanston
By: YlAklv`
Name: Wally Vobkiewicz
City Manager, City of
Evanston Date: 8104
2018.
Approved as to form and legality:
Michelle L. Masoncup, Corporat_on
Counsel
38
7/20/18
SIGNATURE PACE FOR
VILLAGE OF LINCOLNWOOD
IN WITNESS WHEREOF, the below authorized officials of the Village of Lincolnwood have
signed this Agreement pursuant to legal authorisation granted to him/her under Article V11,
Section 10 of the 1970 Illinois Constitution, the Intergovernmental Cooperation Act (S ILCS
220/1 et seq.) and the corporate approval granted by passage of Resolution Uclf'Z0*y the
Corporate Authorities of the Village of Lincolnwood.
Attest:/
By: {
Name: Beryl Herman
Village Clerk, Village of Lincolnwood
Date: / , 2018
39
Village o olnwood
By: ,
Name: any I. B s
Village Presiden illage of Lincolnwood
Date: ' 2018.
Approveds to fo d gality:
y: 4 //r
ww'uA
Village Attorney
7/20/18
Group Exhibit "A" — True Up
Illustrative Example of "True -Up" Process comprised of Pages A-1 through A-7 (Page A-1:
Morton Grove -Niles Water Supply Quantity Rate True Up Calculation for Service Year 2016;
Page A-2: Morton Grove -Niles Water Supply Estimated Quantity Rate for Service Year 2016
Based on FY 2014 Audited Information; Page A-3: 2014 Audited Information, City of Evanston,
Illinois, Water Fund — Operations and Maintenance Account, Schedule of Revenues,
Expenditures, and Changes in Unreserved Fund Balance — Budget and Actual for the FY ended
December 31, 2014 with Comparative Totals for FY ended December 31, 2013 (Page 157); Page
A-4: Morton Grove - Niles Water Supply True Up Quantity Rate for Service Year 2016 Based
on FY 2015 Audited Information; Page A-5: 2015 Audited Information, City of Evanston,
Illinois, Water Fund — Schedule of Revenues, Expenditures, and Changes in Net Position —
Budget and Actual for the FY ended December 31, 2015 (Page 123); Page A-6: Calculation of
Distribution Expenses Allocated to LINCOLNWOOD; Page A-7: Annual Pumpage (MG)
(Water and Sewer 2015 Annual Report, Page 18).
(attached)
40
Group Exhibit A
Illustrative Example of the "True -Up" Process
Pages A-1 through A-7
LINCOLNWOOD WATER SUPPLY
QUANTITY -RATE TURF -UP CALCULATION -
FOR SERVICE YEAR 2016
SY 2016 Estimated Quantity Rate (based on FY2014 actuais)
SY 2016 True Up Quantity Rate (based on FY2015 actuais)
MONTH
JAN UARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
TOTALS
YEAR
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
PUMPAGE
ORIGINAL
ADJUSTED
(1,000
AMOUNT
AMOUNT
GALLONS)
BILLED
BILLED
43,250
$
15,306.18
$
15,773.28
43,988
$
15,567.35
$
16,042.42
44,937
$
15,903.20
$
16,388.52
44,527
$
15,758.11
$
16,239.00
44,921
$
15,897.54
$
16,382.69
44,988
$
15,921.25
$
16,407.12
45,203
$
15,997.34
$
16,485.53
47,155
$
16,688.15
$
17,197.43
46,156
$
16, 334.61
$
16, 833.09
43,579
$
15,422.61
$
15,893.26
43,284
$
15,318.21
$
15,785.67
40,758
$
14,424.26
$
14,864.44
$0.3539
$0.3647
DIFFERENCE
$ 467.10
$ 475.07
$ 485.32
$ 480.89
$ 485.15
$ 485.87
$ 488.19
$ 509.27
$ 498.48
$ 470.65
$ 467.47
$ 440.19
532,746 $ 188,538.81 $ 194,292.47 $
TOTAL AMOUNT OWED TO EVANSTON $
NOTE: Monthly Pumpage amount is not actual - quantity used for illustration purposes only
5,753.66
5,753.66
A— I
Lincolnwood Water Supply
Estimated Quanity Rate for Service Year 2016
Based on FY 2014 Actuals
Quantity Charge Calculation:
Water Treatment Plant
Actual usage in FY 2014 (Jan - Dec 2014) Northwest Water Commission
FY 2015 expenses
Evanston
Skokie
MG-N
Lincolnwood
Administration
Pumping
Filtration
Water Treatment Quantity Rate = Total Plant Expenses /Total Pumpage (per 1,000 gal)
Water Transmission System
Actual pumpage in FY 2014 (1000 gallons)
FY 2015 expenses
Evanston
Skokie
M G-N
Lincolnwood
Distribution
% allocated to Lincolnwood
1000 Gallons
7,941,653
2,719.978
2,766,348
2,544,132
539,247
Total 16,511.358
$1,473,338
$1,752,932
$2,015,362
Total $5,241,632
subtotal $0.32
Total
Water Transmission Quantity Rate = Water Transmission Expenses / Total Pumpage (per 1,O1 subtotal
Estimated Quantity Charge =
2,719,978
2,766,348
2,544,132
539,247
8,569,705
$2,395,818
13.04%
$312.415
$0,04
Rate
TOTAL $0.3539 $190,845.90
A-2
CITY OF EVANSTON, ELLINOIS
2014 Audited information
Water Fund - Operations and Maintenance Account
— — Schedule of Revenues; ExpendiUues, and Changes in Uareser`ved
Fund Balance - Budget and Actual
For the Fiscal Year ended December 31, 2014
(With Comparative Totals for the Fiscal Year ended December 31, 2013)
Prior Period
Budget
Actual
Actual
Operating Revenues
Charges for services
S 13,913,400 S
14,379,362 S
13.903,482
Miscellaneous
41I,316
672,370
754,266
Total Operating Revenues
14,324,716
15,051,732
14,657,749
Operating Expenses Excluding Depreciation
Administration
933,999
1,099,395
960,029
Operations
Ping
2,355,718
2,023,601
2,226,781
Filtration
2,740,956
2,331,616
2,435,092
Distribution
1,425,352
1,444,159
1,389,136
Meta maintenance
300,760
280,083
249,474
Other
491,700
759,995
915,196
Total Operating Expenses Excluding Depreciation
9,248,375
7,938,938
8,I75,707
Operating income Before Depreciation
6.076,341
7,112,894
6,482,041
Depreciation
-
1,569,014
1,449,757
Operating income
6,076,341
5,543,890
5.032,284
Nonoperating Revenues (Expenses)
Interest Income
2,300
17,552
12,256
Change in unrealized depreciation on urvestments
-
(61,547)
-
Interest Expanse
-
(376,677)
(298,850)
Amortization of bond discount and costs
-
1,129
1,129
Bond issuance and amortization costs
-
1,624
(19,777)
Net book value of fixed assets disposed
(772,649)
(60,762)
Total Nonoperativg Revenues (Expenses)
2,500
(1,190,568)
(366,004)
Income Before Transfers
6,078,841
4,353,312
4,666.280
Transfers In (Out)
General Fund
(3,356,300)
(3,369,559)
(3,356,300)
Insurance Fund
(469,492)
-
-
Total Transfers In (Out)
(3,356,300)
(3,369,559)
(3,356,300).
Net Income
$ 2,722,541_
983,753
1.309,980
Other Changes in Unreserved Net Position
Intrsfund transfers in (out) - Net Position
reserved - restricted accounts
6,267,672
(4,290,942)
Increase (Dom -case) in Unreserved Net Position
1,251,425
(2,980,%2)
Unreserved Net Position
Beginning of year
55,120,773
59,101,735
End of year
S
62,372,198
$ 55,120,773
A-3
-157-
Lincolnwood Water Supply
True -up Quanity Rate for Service Year 2016
Based on FY 2015 Actuals
Quantity Charge Calculation:
Water Treatment Plant
Actual usage in FY 2015 (Jan - Dec 2015)
Northwest Water Commission
Evanston
Skokie
MG-N
Lincolnwood
FY 2015 expenses Administration
Pumping
Filtration
Water Treatment Quantity Rate = Total Plant Expenses frotal Pumpage (per 1,000 gal)
Water Transmission System
Actual pumpage in FY 2015 (1000 gallons) Evanston
Skokie
MG-N
Lincolnwood
1000 Gallons
7,846,900
2,790,010
2,786.870
2,090.587
532.746
Total 16,047,113
$1,473.338
$1,752.932
$2,015,362
Total $5.241.632
subtotal $0.33
2,790,010
2,786,870
2,090.587
532,746
Total 8,200,213
FY 2015 expenses Distribution $2,395.818
% allocated to Lincolnwood 13.04%
$312,415
Water Transmission Quantity Rate = Water Transmission Expenses / Total Pumpage (per 1,04 subtotal $0.04
Rate
Estimated Quantity Charge = TOTAL $0.3647 $194,313.00
A-4
CITY OF EVANSTON, ILLINOIS
Water Fund 2015 Audired. information
Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2015
Budget
Actual
Operating Revenues
Charges for services S
15,253,000 S
15,005,360
Miscellaneous
506,100
716,246
Total Operating Revenues
15,759,100
15,721,606
Operating Expenses Excluding Depreciation
Administration
1,528,130
1,473,339
Operations
Pumping
2,426.701
1,752,932
Filtration
2,612,781
2,015,362
Distribution
1,724,142
2,395,819
Meter maintenance
194,336
202,921
Othr
19,349,100
420,562
Total Operating Expanses Excluding Depreciation
27,835,190
8,260,933
Operating Income (Loss) Before Depreciation
(12,076,090)
7,460,673
Depreciation
-
2,096,633
Operating income (Loss)
(12,076,090)
5,364,040
Non -Operating Revenues (Expenses)
Investment income
10,000
5,981
Interest Expense
(434,254)
(390,461)
Net book value of fixed assets disposed
-
302,700
Total Non -Operating Revenues (Expenses)
(424,254)
(81,780)
Income (Loss) Before Transfers
(12,500,344)
5,292,260
Transfers
Transfers (out)
(3,194,053)
(3,194,053)
Total Transfers In (Out)
(3,194,053)
(3,194,053)
Net Income S
(15,694,397)
2,098,207
Net Position
Beginning of Year
66,279,631
Change in accounting principle
(101,305)
Prior period adjustment
(55,806)
Beginning of Year, Restated
66,122,520
End of Year
S
68,210,727
(See independent auditor's report.)
-123 - A-5
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41
Annual Pumpage (MG)
TOW
F1nb11od
Pumpaoe To
Lake Water
Wash Water
Raw Water
WOW
_
-- - —Year "'! Pumpa9a —
— Raevded `
' Pumpape
' Pumpape �
Evanston
Skokie
N.W C 111G•N
2015 15.911434
200285
16,111.719
18.647.139
2.790.010
2.785.896
7,846.900 2,080.587
m. 2014 13,416.872
239.547
13,658.419
13,427.979
2,719.078
2.766.348
7.941.653
2013 13.M.102
247,W9
14,172.711
13,814.461
2.930.270
2,787.256
8.006,927
2012 14.617.037
322.302
15,110.485
14.627.115
2.939.417
3.W8,004
8.610694
2011 13.939.618
212,426
14,152-042
13.941.167
2.091848
2,668.652
0.082.667
2010 14,087.849
218251
14,308.10D
14.268.257
2.701,509
3.094.554
8,472.134
2009 t4163.047
193,841
14.556888
14.350.335
3.140 898
2.829 824
8,379 613
2008 14.872.652
134,595
15,007A47
14,03.0"
3.142.816
2,961341
8,W9.720
2007 15.905.38i
192.086
16,097,480
15,771,451
3.207.422
3.564,781
8.999.248
200E 15.332651
160,528
15,493.179
16.174631
2,950.699
3.329.305
0,894.627
Water aad Sewer 2015 Amua1 Raper
1✓I
Pumping
Uneolnvrodd
532 746
A-7
3/28/18
Group Exhibit "B"
Example of Rate Calculation for LINCOLNWOOD Water Rate Commission for Service Year
2017 Based on Evanston Audited Information for Fiscal Year 2015 comprised of Pages B-1
through B-21 (Pages B-1 and B-2: Example of Rate Calculation for LINCOLNWOOD Water
Supply Prepared on 12/14/2016 by Dave Stoneback, Morton Grove - Niles Water Supply Rate
Calculation for Service Year 2017, Based on FY 2015 Actual Information; Pages B-3 to B-12:
Evanston Water Utility Component Sheets, Table B-1 dated 6/30/2016 (Reproduction Cost New
Less Depreciation As Of December 31, 2015, Pages 1 through 10 of Burns & McDonnell Water
Works Properties Valuation); Page B-13: Table B-2 dated 6/30/2016 (Reproduction Cost New
Less Depreciation As Of December 31, 2015, Burns & McDonnell Water Works Properties
Valuation); B-14: Table B-3 dated 6/30/2016 (Original Cost New Less Depreciation As Of
December 31, 2015, Burns & McDonnell Water Works Properties Valuation); Page B-15: Table
B-4 dated 6/30/2016 (OCLD and RCNLD At December 31, 2015, Burns & McDonnell Water
Works Properties Valuation); Page B-16: IDNR Water Allocations as of November 2011; Page
B-17: 2015 Audited Information, City of Evanston, Illinois, Notes to the Financial Statements for
the FY ended December 31, 2015 (Page 40); Page B-18: Evanston Audited Information, City of
Evanston, Schedule of Fixed Assets and Depreciation, Year ended December 31, 2014; Page B-
19: Annual Pumpage, 2015 Monthly Pumpage (MG) and 2015 Average Day Pumpage
(MGD)(Water and Sewer 2014 Annual Report)(Page 17); Page B-20: 2015 Audited Information,
City of Evanston, Illinois, Water Fund — Schedule of Revenues, Expenditures, and Changes in
Net Position — Budget and Actual for the FY ended December 31, 2015 (Page 123); Page B-21:
Evanston Distribution System, Calculation of Percent of System Allocated to LINCOLNWOOD,.
Calculation of Depreciation Charges.
(attached)
41
Group Exhibit B
Exampfe of Rate Calculation for UiTcolnwood'Water Rate for Service Year 2017
Based on Evanston Audited Information for Fiscal Year 2015
Pages B-1 through B-21
EItAMPLE OF RATE CALCULATION FOR LINCOLNWOOD WATER SUPPLY
LINCOLNWOOD RATE CALULATION FOR
SERVICE YEAR 2019, with select Transmission
BASEo ON FY 2017 PROJECTED YEAR END DATA
Return on Rate Base Calculation:
Water Treatment Plant Assets
Original Cost New
Reproduction Cost New Less Depreciation
Total Fair Value Rate Base
Percent allocable to Lincolnwood based on IDNR allocations
Fair Value Rate Base of Plant Assets Allocated to Lincolnwood
Water Transmission System Assets - Evanston & Skokie & LW
Original Cost New
Reproduction Cost New Less Depreciation
Total Fair Value Rate base
Percent allocable to Uncolnwood based on IDNR allocations
Fair Value Rate Base of Transmission Assets Allocated to Lincolnwood
Water Transmission System Assets - Lincolnwood Only
Original Cost New
Reproduction Cost New Less Depreciation
Total Falr Value Rate Base
Percent allocable to Lincolnwood based an IDNR allocations
Fair Value state Base of Transmission Assets Allocated to Uncolnwood
Fair Value Rate Base Total All Assets Allocated to Lincolnwood
Fair Value Rate Base Annual Return
Total Annual Fair Value Return on Rate Base Charge
Monthly Charge for Fair Value Return on Rate Base
Cost per 1,000 gallons for Fair Value Return on Rate Base,
Depredation Calculation:
Depreciation Expense Plant
Lincolnwood percentage IONR allocations
Amount of Annual Depreciation allocated to Uncolnwood
Depreciation Expense Transmission Assets - Evanston & Skokie & LW
Percent of Transmission Main to all distribution and transmission mains
Depredation on Transmission Mains only
Percent allocable to Lincolnwood based on IDNR allocations
Amount of Annual Depreciation allocated to Lincolnwood
Depredation Expense Transmission Assets - Lincolnwood Only
Depreciation on Lincolnwood Transmission Main
Total Annual Depreciation Charge
Monthly Charge for Depreciation
Cost per 1,000 gallons for Depreciation Charge
Page 2 of 2
Multiplier
As of 22/31/2017
$29,262,444 0.5 $24,630,722
$86,761,810 0.5 $43,380,905
$58,011,627
3.47%
subtotal $2,025,425
$5,667,729 0.5 $2,833,864
$18,498,826 0.5 $9,249,413
$22,083,277
10A7%
subtotal $1,264,748
$1,775,399 O.S $887,699
$1,810,987 0.5 $905,493
$1,793,193
100%
subtotal $1,793,193
TOTAL $5,073,366
10.00%
$ 507,337
$ 42,278
$0.93
subtotal
subtotal
subtotal
TOTAL
$1.499,468
3.47%
$52,094
$638,664
13.04%
$83,285
20.47%
$8,717
$1,806
$62,618
$5,218
$0.11
B-1
LINCOLNWOOD RATE CALULATiON FOR
T SERVICE YEAR 2019, based on 2017_ year end projected data
Quantity Charge Calculation:
Water Treatment Plant
Actual usage In FY 2015 (Jan - Dec 2015)
-----Page 2 of 2 ___ _
Northwest Water Commission
Evanston
Skokie
MG-N
Lincolnwood
FY 2015 expenses
Administration
Pumping
Filtration
Water Treatment Quantity Rate = Total Plant Expenses /Total Pumpage (per 1,000 gal)
Water Transmission System
Actual pumpage in FY 2015 (1000 gallons)
Evanston
Skokie
MG-N
Lincolnwood
FY 2015 expenses Distribution
% allocated to Lincolnwood
Water Transmission Quantity Rate = Water Transmission Expenses / Total Pumpage (per 1,000 gal)
Estimated Quantity Charge = TOTAL
Cost per 1,000 gallons for Fair Value Return on Rate Base
Cost per 1,000 gallons for Depreciation Charge
Estimated cost per 1,000 gallons for Quantity Charge
Total Equivalent Rate per 2,000 gallons (2029)
Lincolnwood shall not pay or contribute to any portion of the insurance cost relative to Evanston
or the Evanston Water Utility during any Term or Extended Term of this Agreement.
1000 Gallons
7,807,715
2,776,077
2,772,952
2,379,800
546,131
Total 16,282,675
$1,532,861
$2,020,429
$2,322,906
Total $5,876,197
subrow $0.36
2,776,077
2,772,952
2,379,800
S46,131
Total 8,474,962
$2,492,609
13.04%
$325,049
sunrota $0.04
Rate
$0.3992
$218,037.71
$0.93
$0.11
$0.40
$1.44
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TABLE B-2
REPRODUCTION COST NEW LESS DEPRECIATION DECEMBER 31, 2015
CITY OF EVANSTON
MIN balance
Additions at
Retirements at 12/31/2015
cost
at RCN
Adjusted for
RCN Balance
12131*014 1201/2014 to
Additions &
Depreciation
RCNLD at
at 120112015 to12131120%
12/31/2015
Retirements of 1213112015
12/312015
(S)
($)
($)
($)
($)
(5)
RCNLD at 12/3l/2015
Source Of Supply
27,367,429
0
785.326
26,582,103
12,503.431
14.078,673
YAM additions and
Pumping Plant
39.293.559
148,373
111,646
39,330.285
22,485,209
15.845.076
mftments
Treatment Plard
92.558,317
1,286.499
771,400
93.072,407
49.261.347
43,611.050
Water Plant
17,413,276
31,324
0
17.444.599
9,489.970
7.954,630
Transmission
7.010.818
0
0
7.010.818
3.680.217
3�330.6W
TOTAL
183,643,399
1,465,196
1,668,381
183A40,213
97,420,174
65,020.039
rcL,n wownce
Additions at
Retlnemenis
at 12/31/2016
cost
at RCN
Adjusted for
RCN Balance
12/312015
12/31/2015 to
Additions &
Depreciation
RCNLD at
at 12/31/2016
tol2/3112015
12/31/2016
Retirements
at 12/31/2016
12/312D16
($)
($)
(S)
($)
(S)
(5)
RCNLD at 1213112016
Source of Supply
27,257.448
1,677,9W
0
28.935,348
13.155,589
15,779,759
with addlUons and
Pumping Plant
40,875,695
0
0
40,875.695
23.931,632
16,944,0W
relirements
Treatment Plant
95,784,139
630.064
168,800
96.251,404
52,052,5W
44.198.904
Water Plant
17,887,797
0
0
17.887,797
9,967,487
7,920,310
Transmission
7.186.934
0
0
7.188.934
3,839.9W
3.348,949
TOTAL
188,994,013
2,313,964
168.800
191.139,178
102.947.194
88,101.984
Additions at
Retirements
at 12/31/2D17
cost
at RCN
Adjusted for
RCN Balance
12131/2016
12/3112016 to
Additions &
Depredation
RCNLD at
at 12/31/2017
102/31/2017
12/31/2017
Ret4enw.M
at 12/3112017
1201/2017
(S)
(3)
(S)
($)
($)
($)
RCNLD at 12/3112017
Source of Supply
29,669„ 134
200.000
0
29,869,134
13,931.324
15,937,810
with additions and
Pumping Plant
42.487,911
526.000
0
43.012,911
25,516.703
17,496.208
retirements
Treatment Plant
99,079,806
1,335,000
0
100.414,805
54.972,941
46.441.866
Water Plant
16,341,422
0
0
16.341.422
10,455,496
7.865,926
Transmission
7.371.242
0
0
7.371.242
4.OD5,316
3.365.927
TOTAL
196,949,516
2,060,0W
0
199.009,515
108.881,780
9D,127,736
n%.Iv 06"c"=
Additions at
Relkements
at 12/3112018
cost
at RCN
Adjusted for
RCN Balance
12/312017
12/31/2017 to
Additions &
Depredation
RCNLD at
at 1213120f8
to12/312016
12131/2018
Retirements
at 121311MIS
1213112018
(S)
(5)
(5)
($)
(5)
($)
RCNLD at 12/312018
Source of Supply
30,627.679
0
0
30.627,679
14.755,673
15.872,107
with additions and
Pumping Plant
44,747,558
0
0
44,747,658
27,183.273
17,564,266
retirements
Treatment Plant
103,315,263
20,000,000
7,581.883
115,733.380
52.456.234
63,278.146
Water Plant
18,807,214
0
0
18,807.214
10,961,959
7,845.255
Transmission
7.558,440
0
0
7.556,440
4.176.708
3.381.731
TOTAL
205,056,155
20.000,000
7,581,853
217,474,272
109,532,747
107,941.524
Burns McDonnell Engineering Company City of Evanston
Kansas City, Missouri 1/6/2017 Water Ww*s Properties Valuation
5-13
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TABLE 8.4
OCLD AND RCNLD AT DECEMBER 31, 2015
CITY OF EVANSTON
ORIGINAL COST LESS DEPRECIATION AT DECEMBER 31, 2015
OC
Acc. Depr.
OCLD j
Source of Supply
5,005,781
2,000,082
2,997.700 i
Pumping Plant
9,365,400
4.346,313
5,019,087
Treatment Plant
23,506,715
8,111.875
15,394,840
Water Plant
4,371,921
1,272,523
3,099,399
Transmission
558,287
166.994
391.293
Total
42,W8,104
i5,905,786
26.902,319
REPRODUCTION COST NEW LESS DEPRECIATION AT DECEMBER 31, 2015
RCN
Acc. Depr.
RCNLD
($)
($)
($)
source of Supply
26,582,103
12.503.431
14,078.673
Pumping Plant
39,330.285
22,485,209
16.845,076
Treatment Plant
93,072,407
49,261,347
43.811.060
Water Plant
17.444.599
9,489,970
7,954,630
Transmission
7,010.818
3,6W.217
3,330.600
Total
183.440.213
97,420.174
86,020,039
FAIR VALUE RATE BASE DECEMBER 31.2015
($)
M
t$)
OCLD Rate Base
26,902,319
50
13,451,160
RCNLD Rate Base
86,020;039
50
43.010,019
Fair Value Rate Base
5b,4b'1,1 /V
Bums McDonnell Engineering Company
Kansas City, Missouri 116/2017
1
City of Evanston
Water Works Properties Valuation
INOR Allocations as of November 2011
Lake Michigan Water Allocations InMo is of gallons per day)
5YSTi:'M NAME
2014
2016
2016
2017
2018
2012
2020
2021
2022
2023
2024
2026
2926
28V
2028
2029 ;
2030
ArImMon HNphts
9.715
9 745
9.775
9.805
9.835
9-065
9.095
9,925
9.955
9.965
10-015
10.045
10.074
10.102
10.131
t
10.160
10188
tiuOaloGrove
4.857
4.875
4.893
4912
4.930
4.948
4.9W
4.965
5.003
5-021
5040
5058
5076
5-094
5112
51301
5140
Pauline
7.933
7964
7995
6.027
8058
9090
8.121
8.152
6-184
0.213
8,246
8.278
9309
8.341
8372
6.4031
8.435
WhWn9
5607
5720
5.785
5850
5-915
5980
6,045
6.091
6,137
6.182
6.228
6274
6.292
6.311
329
6.346
6.366
Oe$Plaines
7.982
7996
8.009
6023
6.037
8.050
6064
0.077
8.091
9.705
8118
8,132
8.143
8.154
:166
0.1771
8-189
W
Totalas,093
36.309
36.458
36.617
38.775
36.033 f
37.091
37-M
37-VO
37.309
37.648
37.707
VMS
3L002
38.110
38.216,
38.326
Morton fxove
3.497
3.521
3.546
3.570
3.595
3 519 1
3.644
3.60
3.692
3.717
3.742
3.766
3.789 `i
3.812
3.035
3.0571
3.880
Noes I
4.977
4.988
4.999
5.010
5022
5033
5.044
5.055
5.066
5.078
5.089
5-100
5.109
5118
5.126
51371
5.146
Total
A473
8.509
LS45
as" I
8.616
6,652 (
6.666
L723
&759
am
go"
U"
am I
6.930
1962
am
9.026
tirnroknwaod
2344
2.349
2,355
2.360
2365
2.371
2.376
2.361 I
2.367
2.392
2.390
2.403
2.408
2414
2.419
2.4241
2.429
Evanston
(
a
I
�
SkoW
10.55
0.560
10.616
0.671
10-721
1002
oan
I�
10.838
838
OB8
10838
tO.d38
6
i0838
I
.3
i.83B
819.677
f088
0.838
C3
PLANT TOTAL
66.827
67147
67.418
67.690l
67 961
60.233
68.505
68.7021
66-M
69A95
69.292
69 489
69.6511
69 612
69.974
70135,
70.297
;0
%NWCofPlant
54.01%
54.06%
5408%
54.09%1
54.111
5413%
5414%
S1.19%1
54.24%
5429%1
54.33%
5430%
54.41%1
54.44%
54-46%
5449%1
54.52%
y
% Evanston of Plant
14.08%
14.04%1
14.01%
13.98%+
13.95%1
13.92%
13.60%
13 87%1
13.65%
13.84%1
13.82%
13 81 %
13.80%l
13.1`9%
13 78%
13.77%�
13.77%
~
%Skokie of Plant
15.72%
15.73%'
15.75%
15.76%l
15.7E%1
1580%1
15.82%
15.7s%
15.73%f
t5.69%Ij
15,64%
1560%
15.56%
15.52%
15.49%
1545%Ij
15.42%
O
% MCaN of Plant
12.68%
12.67%1
12.67%
12.68%'
12.68%1
12 68%1
12.60%
1270%�
12-71%1
12.73%I
12.74%
1278%
12.78%j
12 79%
12B1%
12.82%f
12.84%
0
03
%Lkreotrnsaod of Plant
3.51%
3-50%1
3.499i
3A9%�
348%�
34T%
3.47%
3.47%i
348%l
3.46%1
3.46%
34M
346%I
3.46%
3-46%
3.46%1
345%
w
O
Lake Michigan Water Al'3caUws (rWXons of gallons
per daYl
SYSTEM NAME
2014
2015
2016
2017
2016
2019
MCI
2021
20n
2023
2024
2026
2026
2027
2928
2029
2030
Lkcohmimod
2.344
2349
2355
2360
2.365
2.371
2.376
2381
2387
2.392
2.398
2.403
�
2.408
2.414
2.419
2,424
2.429
Evanston
9,411
9.426
9.445
9.461
9470
9.495
9.512
R528
9545
9.50
9.578
9.595
9.612
9.628
9.644
9.661
9-677
Skokie
10505
f0.560
10.616
10671
10.727
10-782
10838
1&9"
10.838
10.838
10.036
10.035
10.838
10.838
10.838
10.838
10.830
TOTAL
22.260
22.337
22415
22493
22.570
22,648
22.725
72-746
22770
22792
22.9141
22636
22.658
22.Wo
22.901
22.923
22.945
% Evanston 6f Pipe
42.28%
42.21%
42,14%
42.06%
41.99% -
4192%
4185%
41,89%
41.92%
41.95%
41.98%
42.02%
42.05%
42001%
421 rib
42.14%
42.18%
% Skokie ofPipe
4719%
47.28%
47.36%
47.44%
47.53%
47.61%
47.69%
47.64%
47.60%
47.S5%
4751%
47,48%
47.41%
47-37%
47.32%
47.28%
4724%
% La1COIr000d 01 pipe
10.53%
1052%
10.50%
10.49%
10.4a%
t0.47%
10.45%
10.47%
1040%
1050%
10.51%
1052%
1054%
10.55%
10.56%
10.55%
1059%
2015 Audited Iriforttiatidd
CITY OF EVANSTON, ILLINOIS
Notes to the Financial Statements
For the Fiscal Year ended December 31, 2015
NOTE 5. CAPITAL ASSETS - Continued
A. Capital Asset Activity - Continued
Beginning Additions Deletions Ending
Business -type activities:
Capitol assets, not being depreciated:
Land
S 4.644,510 $
-
S -
S 4,644,510
Construction in progress
2,463,073
4,741,909
1,667,281
5,537,601
Artwork
359,752
-
-
359.752
Total Capital Assets, not being Depreciated
7,467,335
4.741,909
1,667,281
10.541.863
Capital assets, being depreciated/amortized:
Land improvemeats
3,925,463
995,681
-
4,911,144
Buildings and improvements
77,282.216
-
-
77,282,216
Leasehold improvements
304,052
-
304,052
plant
42,176,651
1,433,872
924,661
47,695,862
Transmission and distribution system
49,257,816
4,215,269
-
53,473,095
Sewer system and underground lines
249,439,877
1,295,207
-
250.735,084
Intangible assets
509,834
750,424
-
1,260,258
Equipment
3,086,113
87,284
340,755
2,932,642
Parking meters
1,698,308
160,720
-
1,859.029
Total Capital Assets being Depreciated/Amortized
427,690,330
9,928.457
1,265,416
435.343,371
Lean accumulated deprociation/amortization for.
Land improvements
1,631,955
141,290
-
1,773,245
Buildings and improvements
22,197,612
2,462,535
-
24,660,147
Leasehold improvements
302,753
-
20,222
282,531
plant
15,311,994
1,411,291
865,721
15,857,464
Transmission and distribution systan
6.934,574
636,142
-
7,570,716
Sewer system and underground lines
49,589.233
3,404,364
-
52,993,597
Intangible assets
315,774
106,182
-
421,956
Equipment
2,373,535
100,425
314,428
2,159,532
Parking meters
686,984
124.354
-
911,339
Total Accumulated Dep=istion/Amortization
99,344,314
8,386,583
1,200,371
106,530.526
Total Capital Assets being Depreciated/Amortized, Net
329,336,016
541,874
65,045
328.912,945
Governmental Activities Capital Assets, Net
S 335,803L351 S
5,283,693
S 1.732,326
S 339,354.709
-40-
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Pumping
Annual Pumpage
2615 Monthiy Pumpage (MG)
Lake
Wash
Net
Finished
Pumpage To
Water
Water
Raw Water
Water
I
I
Month
Pumpage
Recycled
Pumpage
Pumpage
Evanston
Skokie
N.W.C.
Jan-15
1,105.958
15.243
1,121.201
1,091.684
219.493
224.994
647.197
Feb-15
993.608
14.742
1,008.350
979.494
197.429
203.955
578.110
Mar-15
1, 051.862
14.352
1.066.214
1,037.606
214.803
221.063
601.740
Apr-15
1,038.910
13.795
1,052.705
1,094.833
254.304
208.254
_ 632.275
May-15
1,170.487
21.359
1,191.846
1,131.353
216.660 -
_ 233,280
681.413 _
Jun-15
1,134.827
15.467
1,150.294
1,122.625
220.010
235.514
667.101
Jul-15
1,241.264
19.130
1,260.394
1,231.148
244.142
255.542
731.464
Aug-15
1,345.617
27.227
1,372.844
1,326.781
244.260
286.287
796.234
Sep-15
1,201.943
21.155
1,223.098
1,187,660
235.267
_ 244.463
707.930 _
Oct-15
1,122.857
15.050
1,137.907
1,113,129
224.286
239.720
649.123
Nov-15
1,026.820
16,823
1,043.643
1,013.638
275.273
204.665
533.700
Dec-i5
1,037.670
5.942
1,043.612
1,093.855
244.083
229.159
620.613
Total
13,471.823
200.286
13,672.108
13,423.806
2,790.010
2,786.896
7,846.900
2015 Average Day Pumpage
(MGD)
Lake
Wash
Net
Finished
Pumpage To
Water
Water
Raw Water
Water
I
'
Month
Pumpage"
Recycled
Pumpage
Pumpage
Evanston
Skokie
N.W.C.
Jan-i 5
35.676
0.492
36,168
35.216
7.080
7,258
20.877
Feb-15
35.486
0,527
36,013
34.982
7.051
7.284
20.647
Mar-15
34.400
0.463
34.394
33.471
6.929
7.131
19.411
Apr-15
33.939
0.460
35.090
36,494
8.477
6.942
21.076
May-15
37.758
0.445
33.958
_ 36,495
6.989 _
7.525
21.981 -
Jun-15
37.828
0.516
38.343
37.421
7.334
7.850
22.237
Jul-15
40.041
0.617
40.658
39,714
7.876
8,243
23.596
Aug-15
43.407
0.878
44.285
42.799
7.879
9.235
25.685
Sep-15
40.065
0.705
40,770
39.589
7.842
8.149
23.598
Oct-15
36.221
0,485
36,707
35.907
7.235
7.733
20.939
' Nov-15
34.227
0,561
34.788
33.788
9.176
6.822
17.790
Dec-15
33.473
0,192
33.665
35.286
7.874
7.392
20.020
Average
36.909
0.549
37.458
36.778
7.644
7.635
21.498
Note: "Pumpage to Evanston' includes process and domestic water uses at the water treatment plant.
B-l9
Water and Sewer 2015 Annual Report
2015 Audited Information`
CITY OF RVANSTON, ILLI NOIS
Water Fund
Schedule of Revenues, Expeaditura, and Changes in Net Position = Budget and Actual —
For the Fiscal Year Ended December 31, 2015
Budget
Actual
Operating Revenues
Charges for services
S 15,2531000 S
15,005,360
Miscellaneous
506,100
716,246
Total Operating Revenues
15,759,100
15,721,606
Operating Expenses Excluding Depreciation
Administration
028,130
1,473,338
Operations
Pumping
2,426,701
1,752,932
Filtration
2,612,791
2,015,362
Distribution
11724,142
2,395,918
Meter maintenance
I94,336
202,921
Other
19,349,100
420,562
Total Operating Expenses Excluding Depreciation
27,835,190
8,260,933
Operating Income (Loss) Before Depreciation
(12,076,090)
7,460,673
Depreciation
-
2,096,633
Operating Income (Low)
(12.076,090)
5,364,040
Non -Operating Revenues (Expenses)
Investment income
10,000
5,981
Interest Expense
(434,254)
(390,461)
Net book value of fixed assets disposed
-
302,700
Total Non -Operating Revenues (Expenses)
(424,254)
(81,780)
Income (Loss) Before Transfers
(12,500,344)
5,292,260
Transfers
Transfers (out)
(3,194.053)
(3,194,053)
Total Transfers In (Out)
(3,194,053)
(3,194,053)
Not Income
S �15,694,397Z
2,089,207
Net Position
Beginning of Year
66,279,631
Change in accounting principle
(101,305)
Prior period adjustment
(55,806)
Beginning of Year, Restated
66,122,520
End of Year
S
68,210J27
(See independent auditor's report.)
-123 - i3�20
S
H12
nt
FID
als�s"s,9. ._...: �
������` �37iAR_� d��� YYI6• Y
3/28/18
Group Exhibit "C"
Depreciation Rates comprised of Page C-1: Depreciation Rates (Classes of Plant included:
Source of Supply, Pumping Plant, Treatment Plant, Water Plant and Transmission)
(attached)
42
Group Exhibit C
Depreciation Rates
Page C-1
--DEPRECIATION-RATES-- -
The Depreciation Charge pursaunt to this Agreement shall be based on the
depreciation rates for the various classes of plant set forth below:
Annual Rate of
Class of Plant Depreciation
Source of Supply 1.11%
Pumping Plant 1.81%
Treatment Plant 1.71%
Water Plant 2.68%
Transmission 1.02%
G1
3/28/18
Exhibit "D"
City of Evanston Ordinance_- 18 (Approval of Water Supply Agreement
Between the City of Evanston and the Village Lincolnwood)
(attached)
43
3/28/18
Exhibit "E"
Village of Lincolnwood Resolution (Approval of Water Supply Agreement
Between the City of Evanston and Lincolnwood)
(attached)
44