TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 7, 2023
COMMITTEE ON STORMWATER MANAGEMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to terminate an existing Intergovernmental Agreement and negotiate and enter into a new Intergovernmental Agreement with and make payment to the Village of Glenwood for the design, construction, operation, and maintenance of a Levee along Thorn Creek at Arquilla Park in Glenwood (15-IGA-14), in an amount not to exceed $3,483,000.00
Body
Dear Sir:
Authorization is requested to terminate an existing Intergovernmental Agreement (IGA) and negotiate and enter into a new IGA with and make payment to the Village of Glenwood (Village) for the design, construction, operation, and maintenance of a Levee along Thorn Creek at Arquilla Park in an amount not to exceed $3,483,000.00.
On January 21, 2016, the Board of Commissioners authorized the District to enter into an IGA with the Village of Glenwood for the above captioned project. The IGA between the District and the Village was fully executed on June 13, 2016. The IGA’s scope of work included the design, construction, and maintenance of an earthen levee along Thorn Creek, and the acquisition of several properties needed to construct the levee. The levee will protect 29 structures. Under the 2016 IGA, the Village was responsible for preparing the construction drawings and specifications, securing necessary land rights, permitting and constructing the project, and the District agreed to reimburse the Village up to $3,870,000.00 towards the cost of the project. The District has already reimbursed the Village $200,000.00 towards the acquisition of nine properties required to construct the levee and $187,000.00 towards design of the project, under the terms of the 2016 IGA. The remaining reimbursement payments are for the construction of the levee.
Due to the extended timeline for this project, termination of this IGA is required. Article 2.12 of the original IGA states the District will reimburse the Village for construction of the project with proceeds from the sale of tax-exempt bonds. The previously identified bond funds are no longer available and the funding source for this project must be changed. After consultation with the District’s Law Department, it is believed to be in the best interest of both the Village and the District to draft a new “clean” IGA rather than amend the existing IGA.
On June 9, 2023, the District received a written confirmation from the Village agreeing to terminate the existing IGA and is willing to work with the District to draft and execute a new IGA for the construction of the subject project. The terms of the new IGA will delineate the roles and responsibilities of each party, including payment by the District towards construction costs in an amount not to exceed $3,483,000.00. The total project cost, including design, property acquisitions, and permitting is $5,196,993.32. Partial payments to the Village, to be set forth in the IGA, will be made at predefined intervals during construction, which is anticipated to commence in 2024. The Village has contributed to engineering and other design-related costs of the project and will assume responsibility for construction, operation, and maintenance of the project. The Village will also be solely responsible for any change orders. The IGA will contain provisions that allow the District to review the project’s design and perform inspections after construction. The IGA will also require the Village to advertise and award the construction contracts in conformance with the District’s Purchasing Act, Multi-Project Labor Agreement, and Affirmative Action Requirements.
The Affirmative Action goals to be applied will conform with the current requirements of the District’s Appendix D upon execution of this IGA. After construction, the Affirmative Action utilization on this project will be provided in an annual report summarizing goal attainment on stormwater partnerships.
Based on the foregoing, it is requested that the Board of Commissioners grant authority for the District to mutually terminate an existing IGA and negotiate and enter into a new IGA with and make payment to the Village in an amount not to exceed $3,483,000.00. It is further requested that the Chairman of the Committee on Finance, Executive Director, and Clerk be authorized to execute said agreement on behalf of the District, as well as any documents necessary to effectuate the transaction and conveyance, upon approval by the Director of Engineering as to technical matters and by the General Counsel as to form and legality.
Funds from Account 501-50000-612400 requested in 2024 are contingent on the Board of Commissioners’ approval of the District’s budget for that year.
Requested, Catherine A. O’Connor, Director of Engineering, KMF:JK
Recommended, Brian A. Perkovich, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 7, 2023