HomeMy WebLinkAboutRESOLUTION - 66-81 - 11/24/1981 - AGRMT AMENDMENT BENSENVILLE RESOLUTION NO. 66-81
A RESOLUTION AUTHORIZING THE EXECUTION OF A MEMORANDUM OF AGREEMENT
BETWEEN THE VILLAGE OF ELK GROVE VILLAGE AND THE VILLAGE OF 3ENSENVILLE
NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees
of the Village of Elk Grove Village, Counties of Cook and DuPage, State of
Illinois:
Section 1 . . That the President and Board of Trustees do hereby authorize
the Village Manager of the Village of Elk Grove Village, to execute a
Memorandum of Agreement, dated September 18, 1981 , between the Village
of Elk Grove Village and the Village of Bensenville, a copy of which is
attached hereto and made a part hereof as if fully set forth. Said agreement
amends and modifies the water services contract between said municipalitie;
dated February 10, 1976.
Section 2. That this resolution shall be in full force and effect
from and after its passage and approval according to law.
PASSED this 24th day of November 1981 .
APPROVED this 24th day of November 1981 .
Village P� i de#
ATTEST:
Vill4§e Clerk
RD
OPT 1 9 1981
R E S 0 L U T 1 0 N r
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BE IT RESOLVED by the President and Board of Trustees
of the Village of Bensenville, Counties of DuPage and. Cook, Illinois ,
that the Memorandum of Agreement dated September 18 , 1991, between
the Village of Bensenville and Elk Grove Village amending and modify-
ina the water services contract between said municipalities dated
February 10 , 1976 is hereby approved, ratified and confirmed,
and the execution thereof by the Village Administrator on behalf of
the Village of Bensenville is hereby approved, and the Agreement is
adopted as a valid and binding undertaking of the Village of
Bensenville .
AYES: DaCcardo, Jakubowski, Kiszka, Warizung, Wojcik
NAYS: None ABSENT: White
PASSFD AND APPROVED by the President and Board of Trustees
of the Village of Bensenville, Illinois , this 16th day of October,
1981 .
APPROVED: 11�A7
"rence C ieneman, "President of
of Bensenville, DuPage and
Vth Villag r
Cook Counties , Illinois
ATTEST:
Village Clerk
(SFAL OF THE VILLAGE)
2S
c
Ec-y'
MEMORANDUM OF AGREEMENT
MEMORANDUM OF AGREEMENT made this day of Si.-Fra-mriEre-
1981, between:
VILLAGE OF BENSENVILLE, an
Illinois Municipal Corporation
("Bensenville")
and
ELK GROVE VILLAGE, an Illinois
Municipal Corporation
("Elk Grove Village")
PREAMBLES:
1 . On February 10, 1976, Bensenville and Elk Grove Village entered
into a Waste Water Service Contract in which Bensenville agreed to provide waste
water treatment at its Sewage Treatment Plants for users in defined areas of
Elk Grove Village, pursuant to rates the:-ein agreed upon and subject to change
under a formula set forth in the Agreement.
2. Elk Grove Village users in the defined areas have been provided waste
water treatment service since the date of this Agreement, which service continues
to today.
3. Disagreements have arisen between Bensenville and Elk Grove Village
concerning the proper rate charged, or to be charged, for waste water treatment
service under the Agreement.
4. This Memorandum of Agreement is in settlement and compromise of
the outstanding disagreements between the respective municipalities, all as fully
set forth herein.
NOW, THEREFORE, in consideration of the respective undertakings and
agreements herein contained, and other good and valuable consideration,
IT IS AGREED AS FOLLOWS:
1 . The original rate to be charged as provided in the February 10, 1976
Waste Water Service Contract to Elk Grove Village users was 29. 61� per
thousand gallons of normal waste water conveyed and treated at the Bensenville
North Treatment Plant. Since on or about August, 1977, Bensenville has billed
Elk Grove Village for services provided to Elk Grove Village users at a rate of
65� per thousand gallons. On or about December, 1979, Elk Grove Village
refused to pay, and continues to refuse to pay for services from that date, con-
tending that Elk Grove Village and its users were overcharged from August, 1977
through December, 1979. Bensenville disagrees with Ell, Grove Village's
position. In settlement and compromise of all disputes for services billed af the
rate of 650, per thousand gallons from Augubt, 1977 to date, IT 19 AGREED AS
FOLLOWS:
(a) Bensenville and Elk Grove Village hereby accept and agree to a
rate for waste water treatment servic, to Ell, Grove Village user-
from the time that a rate of 65� Per thousand gallons was imposed to
April 30, 1931, of 45. O� per thousand gallons;
(b) An adjustment will be made to the amounts charged by Bensenville
and the amounts paid by Elk Grove Village for services rendered to
Elk Grove Village users during said period. For purposes of deter-
mining any amounts due and owing, the monthly Elk Grove Village
statements of sewage charges billed to Elk Grove Village users shall
be accepted as true and correct. As soon as practicable, any monies
due and owing for services rendered to Elk Grove Village users
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without penalty shall be paid by Elk Grove Village to Bensenville.
2. From May 1, 1931 to April 30, 1982, the rate to be charged for service
provided to Elk Grove Villa"e users under the Waste Water Service Contract shall
be 55. 5� per thousand gallons, as determined by the following formula and subject
to the conditions hereafter in this section provided.
The formula used in determining the said rate is as follows:
(a) Elk Grove Village's share for the operation and maintenance
of 1. 7 miles of the Bensenville sewer conveyance system jointly
used by Ell, Grove Village users and Bensenville users at an average
cost per mile of $2, 700 is agreed to be acceptable for the purposes
of determining the rate at this time, with a resalt to Elk Grove
Village of 2.3� per thousand gallons; -
(b) Elk Grove Village's share is based on its pro rata use of the
Sewage Treatment Plants of the cost of operath-P and maintaining
the Waste Water Treatment Plants (see Section 5. 3 (c) of the Waste
Water Service Contract). In calculating operation arid maintenance
expenses from Bensenville's audited Financial Reports as of April
30, 1981, prepared by Bensenville's independent Auditors, Elk Grove
Village has arrived at an actual operation arid maintenance expense
of 50. 6� per thousand gallons. Bensenville disputes the elimination
of certain items as improper operating and maintenance expenses.
The parties agree to review the audited operation and maintenance
expenses, and endeavor to arrive at an agreement oil the exclusion
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of certain items. If the municipalities continue to differ thereon,
the parties agree to submit the question to the Administrative Staff
of the Federal EPA to determine if certain expenses are legitimate
operation and maintenance expenses that should be included in
arriving at the rate for the interim period. If so submitted to the
Administrative Staff of the Federal EPA, the parties agree to abide
by that Agency's decision on proper items includable in the cost of
operating and maintaining the Bensenville Sewer Treatment Plants;
and
(c) An amount for administrative and billing expenses incurred by
Bensenville which is agreed to be 5% of the charges determined
under 2 (a) and 2 (b) above, which in this case is 2.6� per thousand
gallons.
(d) For the period from May 1, 1081 to April 30, 1982, an adjust-
ment will be made in the amounts charged by Bensenville to date to
reflect the agreed rate. For purposes of determining amounts due
and owing, the monthly Elk Grove Village statements of sewage
charges billed to Elk Grove Village users shall be accepted as true
and correct. As soon as practicable, monies due and owing for
services already rendered shall be paid without penalty by Elk Grove
Village to Bensenville.
3. Under the current Bensenville accounting system, costs of operating
the Bensenville conveyance system and the Sewage Treatment Plants are not
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segregated. Bensenville agrees to amend its accounting procedures imme-
diately for use in determining rates effective May 1, 1982, so that from this
time forward the costs for each of the following may be determined:
(a) The cost of operating and maintaining that portion of the
Bensenville conveyance system jointly used by Bensenville and
Elk Grove Village;
(b) The cost of operating and maintaining the North Treatment
Plant;
(c) The cost of operating and maintaining the South Treatment
Plant;
(6) All other costs required to be segregated for rate making
purposes under the February 10, 1976 Waste Water Service
Contract.
Bensenville will, from time to time, report to Elk Grove Village on the
progress ut altering its accounting system. The alterations in the accounting
system will be accomplished no later than January 31, 1082, and will be
effective for the period from May 1, 1981 to April 330, 1982, so that audited
data may be accumulated for rate maldng purposes effective May 1, 1982.
Based upon the audit by Bensenville's independent Auditors of waste
water service data as described in the preceding section, Bensenville will
submit to Elk Grove Village a proposed new rate effective as of May 1, 1982,
as soon as audited data for the fiscal year ended April 30, 1982 is available
for both municipalities. A new rate shall be established, based upon said data
and in accordance with the formula set out in Section 3 of the Waste Water
Service Contract, provided that said formula and rate determined thereby
for facilities used by Elk Grove Village is in conformity with all laws applicable
thereto and all regulations promulgated thereunder by the United States
Environmental Protection Agency, or any other Administrative Body having
jurisdiction in the premises.
4. On or prior to May 1, 1982, Elk Grove Village and Bensenville
shall attempt to redraft the Waste Water Service Contract to eliminate any
ambiguities or resolve any provisions over which the parties have a different
interpretation and amend the Contract to eliminate any inconsistencies with
any laws or reguL.itions applicable thereto.
.his Agreement is executed by the Village Administrator of
Bensenville 2.nd the Village Manager of Elk Grove Village as evidence, of the
agreements of the respective Administrative Staffs of the Villages. The Agree-
ment will not e binding on either Village until appropriate action approving
the terms thereof have been adopted by the respective Boards of Trustees of
the municipalities.
IN WITNESS WHEREOF, this Agreement has been executed in the
manner hereinabove stated on the day and year first written.
VILLAGE OF BENSENVILLE
WILMA B.'U=NEK, Village Administrator
ELK GROVE VILLAGE
By
CHARLES A. WILLIS, Village Manager