The Village purchases water via an intergovernmental agreement with Wheeling, Palatine, and Buffalo Grove. Together, the four communities make up the Northwest Water Commission (NWC). The NWC purchases water collectively from the City of Evanston. The NWC is close to finalizing a long-term extension for the purchase of water with Evanston which should be ready for approval this year. At this time, we believe this agreement will allow the Village to have a reliable water source through the year 2095 with minimal rate increases. However, we will need to make some relatively minor updates to the membership agreement prior to the adoption of the new agreement with Evanston.

The only notable change to the member agreement will give the NWC Board the authority to enter into agreements to sell water to non-member “customer” communities. A decision to add new NWC member communities will continue to require approval from each of the Village Boards of the existing four member municipalities. This arrangement is identical to the voting arrangement of Northwest Central Dispatch.

Wheeling has already approved this amended agreement and Palatine and Buffalo Grove plan to have it on their Village Board agendas in early February.

RECOMMENDATION

It is recommended that the Village Board approve the attached Resolution Approving an Amended and Restated Water Supply Contract between the Northwest Water Commission and Villages of Arlington Heights, Buffalo Grove, Palatine and Wheeling.