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Water pipeline move begins; costs $73 million

Relocating part of a pipeline carrying water to more than 500,000 customers in the Northwest suburbs is moving forward, although how to pay for it is still an open question.

Six miles of the Northwest Suburban Municipal Joint Action Water Agency's pipeline near the Jane Addams Tollway (I-90) are in the way of a widening project.

A 30-year-old easement agreement holds the agency responsible for relocation costs. The 1984 caveat caught mayors of local towns in the water agency by surprise when they learned of it, but no one is disputing the legalities, which put the agency on the hook for about $73 million.

This week, overnight crews will be connecting new pipe with existing line between Arlington Heights and Elmhurst roads, Executive Director Joe Fennell said.

“We are working with all different communities to see this occurs without interruption,” Fennell said. “We're taking every precaution we can.”

Moving the pipe is complex, but so is the financing.

The tollway is funding the project upfront and is not charging any interest through 2020. Interest payments of 3 percent go into effect in January 2021. The entire amount is due Jan. 1, 2024, or higher interest rates will go into effect.

Water agency officials intend to use reserves to pay $1 million a year until 2021, when the interest rate kicks in. Asked if a rate increase is inevitable, Fennell said “not necessarily.” The agency is expecting to retire an existing loan around 2021.

“It's conceivable we'd be in a position to take on that new responsibility without a large change in the finances,” he said. “We're still paying off bonds for earlier construction; once those are retired it will free up space.”

Illinois tollway board directors Thursday approved several pipeline contracts, including $18.5 million to Benchmark Construction Co. of Bartlett for pipe relocation and $8 million to TDW Services Inc. of Romeoville for “hot tap” work.

A hot tap is a connection to existing piping without interrupting or emptying that section of pipe. It keeps service continuous and offers the lowest risk of problems. TDW is the only company qualified to do the technical work, Chief Engineer Paul Kovacs said in explaining why the contract was a no-bid one.

“We could not find anyone else who had done this before and had experience with this size of pipe, this pressure of pipe and this type of pipe,” Kovacs said. The tollway is cooperating with the water agency to do the work before its peak use season in the summer.

The water agency represents Elk Grove Village, Schaumburg, Rolling Meadows, Hoffman Estates, Hanover Park, Streamwood and Mount Prospect.

Water pipe relocation will cost residents up to $73 million

Negotiations with tollway whittled cost from moving pipeline

Lawmakers differ on big bill to relocate I-90 water pipe

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