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Marengo City Council approves amendments to water main installation agreement

Amendments to a 2016 agreement to install a water main along Railroad Street and Ritz Road in Marengo Township – which were approved Monday – will add securities to ensure the project is completed in a timely manner, according to the city.

About three years before the original agreement was reached, the Illinois Attorney General’s Office filed a complaint against 300 West LLC and Arnold Engineering Co. for alleged groundwater and soil contamination on the site at 300 N. West St., where Arnold Magnetic Technologies Corp. operates.

In response, the companies entered into an agreement to construct a water main extension from the city’s public water system to the affected off-site properties. However, construction timetables for Segment 1A, which would loop the system and improve water circulation, were missed.

One problem with the agreement was that it never had collateral for guaranteeing Segment 1A would be secured, according to the city.

To resolve this, the amendment will include a letter of credit that 300 West and Arnold Engineering have agreed to sign and put up for the cost of the roughly 2,000 feet of water main the section requires.

Arnold Engineering and 300 West agreed to provide the letter of credit for the improvements but as a compromise, the judge reduced it to 100 percent of the total value instead of the standard 125 percent.

The letter of credit will be for no less than $675,000, translating to about $250 per foot of 12-inch water main to be installed as part of Segment 1A.

The city also has been advised by 300 West that all necessary easement agreements have been signed.

Construction of Segment 1A is set to begin Nov. 1, 2020, according to the agreement.

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