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98-297 a • , Resolution No. 98-297 RESOLUTION AUTHORIZING EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT WITH THE VILLAGE OF SOUTH ELGIN BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Kevin Kelly, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an Intergovernmental Agreement on behalf of the City of Elgin with the Village of South Elgin relating to payment and collection of development impact fees and recapture fees for the BRIS IB and BRIS II sanitary interceptor sewers , a copy of which is attached hereto and made a part hereof by reference . s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: December 2 , 1998 Adopted: December 2 , 1998 Vote: Yeas 4 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk DRAFT 11/25/98 RAGREE/SESEWER INTERGOVERNMENTAL AGREEMENT t. THIS AGREEMENT made and entered into this 2nd day of December , 1998, by and between the City of Elgin, a municipal corporation, organized and existing under the constitution and the statutes of the State of Illinois (hereinafter referred to as the "City of Elgin" ) and the Village of South Elgin, a municipal corporation, organized and existing under the constitution and the statutes of the State of Illinois (hereinafter referred to as "South Elgin" ) ; WITNESSETH WHEREAS, Article 7 , Section 10 of the constitution of the State of Illinois, 1970, authorizes units of local government, including municipalities, to enter into contracts to exercise, combine or transfer any power or function not prohibited to them by law or ordinance; and WHEREAS, Illinois Compiled Statutes, Chapter 5, Sec. 220/1 et seq. , known as the Intergovernmental Cooperation Act, authorizes units of local government in Illinois to exercise jointly with any public agency within the state, including other units of local government, any power, privilege, or authority which may be exercised by a unit of local government individually and to enter into contracts for the performance of governmental services, activities and undertakings; and WHEREAS, the City of Elgin has previously provided for the construction of and is the owner of the Bowes Road Interceptor Sewer from South McLean Boulevard to Randall Road (hereinafter referred to as "BRIS II" ) ; and WHEREAS, the City of Elgin intends to construct an additional parallel sanitary sewer interceptor from South McLean Boulevard to the Fox River Water Reclamation District (FRWRD) West Plant (hereinafter referred to as "BRIS IB" ) ; and WHEREAS, pursuant to a September 1990 intergovernmental agreement between the City of Elgin and the Fox River Water Reclamation District (then the Sanitary District of Elgin) the City is the owner of the BRIS II and the future BRIS IB sanitary sewer lines and any connection to these sewer lines is subject to advance approval of the City of Elgin subject to such conditions and costs as may be determined by the City of Elgin; and WHEREAS, South Elgin has previously connected a thirty ( 30) inch sewer line into the City of Elgin' s BRIS II sanitary sewer interceptor which provides service to an area within South Elgin of approximately 220 acres for which no City of Elgin development impact fees or recapture fees were ever paid (hereinafter referred to as the "Existing Service Area" ) ; and WHEREAS, South Elgin is now requesting additional service through said thirty (30) inch sanitary sewer line for properties within the area identified by South Elgin as the Southwest Sanitary Sewer Area which contains a total of 1,438 acres (hereinafter referred to as the "SWSSA" ) which includes the property known as the Thornwood Development; and -2- WHEREAS, the City of Elgin and South Elgin have determined that it is necessary and desirable to enter into an intergovernmental agreement to provide for the City of Elgin' s consent for additional service through the existing BRIS II and the future BRIS IB sanitary sewer interceptor lines and for the payment of appropriate recapture fees and development impact fees to the City of Elgin for such connections and service through such lines; and WHEREAS, the City of Elgin is a home rule unit which may exercise any power or function relating to its government and affairs; and WHEREAS, the City of Elgin' s agreement to allow connection to and use of the BRIS II and the future BRIS IB sanitary sewer interceptor lines pursuant to the terms of this intergovernmental agreement relate to the government and affairs of the City of Elgin. NOW, THEREFORE, for and in consideration of the mutual promises and undertakings set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows : 1 . That the foregoing recitals are incorporated into this agreement in their entirety. 2 . That conditioned upon receipt of the development impact fees and recapture fees provided for in this agreement the City of Elgin shall authorize connection to and service through the BRIS II sanitary sewer interceptor line and future BRIS IB sanitary sewer interceptor line for the properties in -3- the South Elgin Southwest Sanitary Sewer Area (SWSSA) and the Existing Service Area. The SWSSA and the Existing Service Area are depicted on Exhibit A attached hereto. 3 . That all properties within the SWSSA and the Existing Service Area shall pay BRIS IB development impact fees currently calculated to be in the amount of $738. 91 per acre and the BRIS II recapture fees currently calculated to be in the amount of $161.49 per acre. The City of Elgin and South Elgin acknowledge and agree that such development impact fees and recapture fees are updated by the City of Elgin annually and are subject to change on that basis . The City of Elgin shall annually recalculate in its sole and exclusive discretion BRIS IB and the BRIS II development impact fees and recapture fees and shall notify South Elgin in writing of such recalculated fees on an annual basis no less than thirty (30) days prior to the effective date of said increases . Prior to the expiration of any such thirty ( 30) day notice South Elgin shall have the right to pre-pay or cause to be prepaid the BRIS IB and BRIS II development impact fees and recapture fees for any properties within the SWSSA which have not yet paid such fees . Commencing thirty ( 30) days after receipt of each such notice from the City of Elgin, South Elgin shall charge the effected properties the updated BRIS IB and BRIS II development impact fees and recapture fees . The City of Elgin further agrees that the formula utilized by the City of Elgin to calculate increases in the development impact fees and recapture fees will be similar to the formula utilized by the City of Elgin in calculating increases in such fees, if any, -4- • for properties located within the City of Elgin. The calculation of gross acreage and land area exceptions for development impact fees shall be as provided in Elgin Municipal Code Section 17 . 04 . 060, as amended. The calculation for gross acreage and land area exceptions for recapture fees shall be as provided in Elgin Municipal Code Section 22 . 08 . 010, as amended. 4 . That concurrently with the execution of this agreement South Elgin shall pay or cause to be paid to the City of Elgin all development impact fees and recapture fees for the Existing Service Area in the amount of $156,650.'53 5 . That upon execution of this agreement and receipt of the payments provided for in the preceding paragraph 4, the City of Elgin agrees to execute the necessary permit applications to authorize extensions of off-site sanitary sewer service for the Thornwood Development property. Thereafter, conditioned upon receipt of the development impact fees and recapture fees provided for in this agreement, the City shall from time to time execute such further permit applications necessary to authorize the connection to and service through the BRIS II and BRIS IB sanitary sewer lines for the remaining properties in the SWSSA. The City Manager of the City of Elgin is authorized to execute such permit documents on behalf of the City of Elgin. 6 . That the BRIS IB and the BRIS II development impact fees and recapture fees due and payable to the City of Elgin for all properties within the SWSSA shall be collected for the City of Elgin by South Elgin prior to final approval -5- a . and recording of any final plat of subdivision, and if no subdivision issuance of an initial building permit, approval of a site plan or approval of a planned unit development. No property located within the SWSSA shall receive final approval of a final plat of subdivision, and if no subdivision issuance of an initial building permit, approval of a site plan or approval of a planned development, or be permitted to connect to or otherwise use the sanitary sewer system until such time as payment is made of all of the development impact fees and recapture fees as required by this agreement. Any building site held in common ownership or unified control with other adjoining property subject to the provisions of this agreement on the effective date of this agreement which is proposed to be developed without a final plat of subdivision shall be subject to payment based upon the entire amount established for the entire parcel as provided by this agreement prior to the issuance of an initial building permit, approval of site plan or approval of a planned development. 7 . That South Elgin shall remit the funds collected for all of the development impact fees and recapture fees collected pursuant to this agreement to the City of Elgin on a monthly basis and prepare a quarterly reconciliation between the funds remitted and the subdivisions or other developments within the SWSSA and the gross developable acres which are subject to development impact fees and recapture fees within the SWSSA. South Elgin shall require that each plat of subdivision, or if no subdivision the initial building permit application, site plan or planned unit development, for -6- properties within the SWSSA shall include on the face of the plat of subdivision, or if no subdivision the initial building permit application, the site plan or planned unit development, the calculation of gross acreage and an itemization of all land area exceptions . South Elgin hereby agrees to make available to the City of Elgin for inspection and review all of South Elgin' s books and records which pertain to the calculation, documentation or collection of the development impact fees and recapture fees required pursuant to this agreement. All such records shall be made available to the City of Elgin upon reasonable notice to South Elgin. 8 . That in the event South Elgin fails to completely and correctly collect any development impact fees or recapture fees required pursuant to this agreement from a property owner within the SWSSA, upon notice from the City of Elgin, South Elgin agrees to be responsible for and to pay to the City of Elgin any such development impact fees and recapture fees . 9 . That it is further expressly understood and agreed by the parties hereto that the City of Elgin' s agreement to allow connection to and service through the BRIS II and BRIS IB sanitary sewer lines is limited to allowing connection and conveyance through such lines and in no way constitutes the City of Elgin' s agreement or obligation to provide treatment or disposal of materials conveyed through such sanitary sewer lines . 10 . That within thirty ( 30) days following the execution of this intergovernmental agreement the Village of -7- • South Elgin shall adopt any and all necessary or appropriate ordinances to require payment of the development impact fees and recapture fees as provided in this intergovernmental agreement. 11 . That notwithstanding anything to the contrary provided herein it is agreed and understood that after the completion of the construction of the BRIS IB sanitary sewer interceptor sewer line fees paid for such improvement by properties within the SWSSA shall be recapture fees rather than development impact fees . Such recapture fees shall be calculated by the City of Elgin pursuant to Title 22 of the Elgin Municipal Code, as amended. 12 . That words or phrases used in this agreement shall be defined as provided in Title 17 and Title 22 of the Elgin Municipal Code, as amended. 13 . That all notices required or permitted under this agreement shall be in writing and shall be deemed delivered in person or deposit in the United States mail, postage prepaid, addressed as follows : City of Elgin: City of Elgin Attn: City Manager 150 Dexter Court Elgin, IL 60120 with a copy to: Corporation Counsel City of Elgin 150 Dexter Court Elgin, IL 60120 Village of South Elgin Village of South Elgin Attn: Village Administrator 10 N. Water Street South Elgin, IL 60177 -8- with a copy to: Hervas, Sotos, Condon, and Bersani, P.C. 333 Pierce Road #195 Itasca, IL 60143-4109 14 . That this agreement contains the entire agreement of the parties hereto and there are no other promises or conditions or any other agreement whether oral or written. This agreement supersedes any prior written or oral agreements or negotiations between the parties. 15 . That this agreement may be modified or amended but only through a written amendment executed by both parties hereto. 16 . That the failure of either party to enforce any provision of this agreement shall not be construed as a waiver or limitation of that party' s right to subsequently enforce and compel strict compliance with every provision of this agreement. 17 . That this agreement shall be governed by the laws of the State of Illinois . Any action brought pursuant to this agreement shall be brought in the Circuit Court of Kane County, Illinois . IN WITNESS WHEREOF, the parties hereto have executed this agreement at Elgin, Illinois, on the date and year first written above. VILLAGE OF SOUTH ELGIN CITY OF ELGIN By By ;erls ;24 error (la9e Mayor OF Sp,T Attest: ¢ c'oRpoy 'y Attest: `1'.- k( kiL c TO*4-iue /k6o4A,-- Vi lage ClerkW X897 City Clerk co p� -9- \s ('r I Lv-\\'\ -0I- V ZISIHXZ . e 000' o m R0•. 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SUNBURY , .s pr , � � ,„ - i,_ sa / , 1 14 _ tsp.- AYET?E; ,tt�x•�,2� �'....•' 0.t ,Siik. 1:Q ;Z. •�.. O '- ' 7 ,• to� ® 4,3 � r � ` � o a” .f . sr s�.•r:..•+ ,' HPC' It} NORTE4iARVAREDIR •e a= =___ CCT V, - , i` s.,".1,,/ cJ x, 75 G I I L..........................■ ■■■■■■■■■■■■■■■■■■■■y L ' r • • ii • • r • t r r Z ♦♦♦ • • i I I ,3 ♦♦ • r • r i1� — o , _ . ♦♦♦ ♦� ♦♦♦ ♦� ♦♦♦ ■■■■ ■■■■■t■■■as■ . . . . - _ - - ------- - -- -- - - - -- G) X n0 ; v, I CA 5o � o v� y � m "0 KI ril rpm y ,* A 4 :. ,,) .,.••••••••".....rli 5 • • 44 , y z> • I• z • 7D ' • 4 1 1 7 i I'TI ifigiS..•.,. . • AMI:NIP M -111 ��11. - • suit /4cLdb V v �K OF E(Qi • 4„!.tib City •of Elgin Agenda Item No. O tLd d _���., °?dreoF�� December 1, 1998 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT : Proposed Intergovernmental Agreement with the Village of South Elgin to Provide for Payment and Collection of BRIS IB and BRIS II Sanitary Intercep- tor Sewer Development Impact and Recapture Fees PURPOSE To present for City Council consideration a proposed intergovernmental agreement with the Village of South Elgin to provide for the payment and collection of BRIS IB and BRIS II sanitary interceptor sewer development impact and recap- ture fees . BACKGROUND The City and FRWRD previously entered into an intergovernmental agreement in September of 1990 . The intergovernmental agreement provides that the City is the owner of the Bowes Road Interceptor Sewer from South McLean Boulevard to Randall Road (BRIS II) . The intergovernmental agreement further provides that the City is to construct an additional parallel sanitary interceptor from South McLean Boulevard to the FRWRD west plant (BRIS IB) . The intergovernmental agreement with FRWRD further provides that the City is the owner of the BRIS II and the future BRIS IB sanitary sewer lines and any connection to the sewer lines be subject to advance approval by the City subject to such conditions and costs as may be determined by the City. With respect to the BRIS II sewer Section 16 of the intergovernmental agreement with FRWRD specifically provides that upon payment to the City of Elgin by South Elgin of its proportionate share of costs incurred South Elgin may use the BRIS II sewer line . The City has now discovered that the Village of South Elgin has previously connected a 30 inch sewer line into the City' s 66 inch BRIS II sanitary sewer interceptor. Such connection was apparently approved by FRWRD without the knowledge and consent of the City and without any payment to the City of the proper recapture or impact fees . The Village of South Elgin is now requesting an additional connection to said 30 inch sanitary sewer line for the Thornwood development . Such further connection requires the City' s execution of the IEPA sewer permits . Intergovernmental Agreement with South Elgin December 1, 1998 Page 2 eft. Attached is a proposed intergovernmental agreement between the City and the Village of South Elgin. The agreement may be summarized as follows : 1 . Conditioned upon receipt of development impact fees and recapture fees provided for in the agreement the City agrees to authorize connection to and service through the BRIS II and BRIS IB sanitary sewer interceptor lines for the properties in the South Elgin Southwest Sanitary Sewer Area (SWSSA) . The SWSSA contains a total of approximately 1, 438 acres . The existing service area served by the 30 inch sewer connected without the city' s knowledge contains approximately 220 acres (existing service area) . Exhibit A to the subject agreement includes maps depicting the SWSSA and the existing service area. 2 . All properties within the SWSSA and the existing service area shall pay to the City of Elgin BRIS IB development impact fees currently calculated to be in the amount of $738 . 91 per acre and BRIS II recapture fees currently calculated to be in the amount of $161 . 49 per acre . 3 . Concurrently with the execution of the agreement South Elgin shall pay or cause to be paid to the City all development impact fees and recapture fees for the existing service area. The precise amount of such fees for the existing service area is still being calculated as of the preparation of this memorandum. Such fees total in the range of $156 , 000 to $198 , 000 . 4 . The BRIS IB and BRIS II development impact fees and recapture fees to be paid pursuant to the intergovernmental agreement shall be collected for the City by South Elgin prior to final approval and record- ing of any plat of subdivision, and if no subdivision issuance of an initial building permit, approval of a site plan or approval of a planned development . No property located within the SWSSA shall receive final approval and final plat of subdivision, and if no subdi- vision issuance of an initial building permit, approval of a site plan or approval of a planned development, or be permitted to connect to or otherwise use the sanitary sewer system until such time as payment is made of all the development impact fees and recapture fees as re- quired by the agreement . 5 . South Elgin is to remit the funds collected for all of the development impacts fees and recapture fees collect- ed pursuant to the intergovernmental agreement to the City on a monthly basis and prepare a quarterly reconcil- iation. All records of South Elgin regarding these Intergovernmental Agreement with South Elgin December 1, 1998 Page 3 elik matters must be made available to the City upon reason- able notice to South Elgin. 6 . Upon execution of the agreement and receipt of the payments for the existing service area the City agrees to execute the necessary permit applications to author- ize extensions of off-site sanitary sewer service for the Thornwood development property. Thereafter, condi- tioned upon receipt of the fees provided for in the intergovernmental agreement the City agrees to from time to time execute such further permit applications neces- sary to authorize the connection to and service through the BRIS II and BRIS IB sanitary sewer lines for the remaining properties in the SWSSA. 7 . In the event South Elgin fails to completely and correct- ly collect any fees required pursuant to the intergovernmental agreement South Elgin is responsible for and must pay to the City any such fees . The Village Board of the Village of South Elgin approved the proposed intergovernmental agreement on November 30, 1998 . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED rThe Village of South Elgin. � � FINANCIAL IMPACT 1 The City will receive approximately $900 . 40 per acre for the subject development impact fees and recapture fees . Should the existing service area remain at 220 acres, the City will receive $198 , 000 upon execution of the intergovernmental agree- ment . The final figure depends upon the calculation of land area exceptions as set forth in Elgin Municipal Code Section 17 . 04 . 060 and 22 . 08 . 010 and will be determined as part of the intergovernmental agreement . The City will also be receiving upon execution of the intergovernmental agreement the development impact fees and recapture fees for Phase I , II and III of the Thornwood development . All of these fees will be calculated and col- lected before execution of the intergovernmental agreement and execution of the IEPA sewer permits . The per acre fees for all remaining properties in the SWSSA will be collected as properties are subdivided or developed. Fees for the remaining 1, 438 acres (less land area exceptions) will generate revenues to help offset both current and future debt issued for sewer construction purposes . çISLEGAL IMPACT None . intergovernmental Agreement with South Elgin December 1, 1998 Page 4 eft ALTERNATIVES 1 . Approval of the intergovernmental agreement . 2 . Rejection of the intergovernmental agreement . RECOMMENDATION It is recommended that the city council approve the proposed intergovernmental agreement . Respectfully submi ted, Jp ce iC . Parker City Manager WAC/nr Attachment r r a 1 o 11 Y d OAD i, iii fir{{ tl 1 II n �, � i.;7 FXI 4."..NoRTHO wl:s•oN GT.. t- -a.t1„,?....-, s %. . vE rTip,psor .:,.. in ,,�TT��nn •'G OFT `v'vl"' i a{ L j �{ i 5g. '4\4:cPT.. .ti) 0. , „,,,,,,, , 4. a i,„,--__ .,,, . x......-.,111,, ,..,..„.„. , I 1 • 1 . .. .. ,:c, . ,.7).... . • --:: .,11:17:77 t „ I �� FAIR c> ){ ,�ti•:I: i • t fir` 1--_� \..?..4: a C j (j `1.____ t _. �r.• c / '} -: t '. ,(r { . 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