ACTION REQUESTED:
Title
Communication from the City Manager and Director of Public Works with a Request for a Policy Session on the WATER COMPANY BUYOUT, with a Request for Direction.
Body
BACKGROUND: In 1889, the City of Peoria entered into an agreement to sell its water utility to a private company, which is now Illinois American Water Company (IAWC). That agreement was amended in 1904. The Agreement provides an option that allows the City to repurchase the utility once every five years. This option will be before the City Council again in 2019; the deadline for final decision is May 3, 2019. Per the agreement, the City must give IAWC notice of its intent to consider purchasing the utility no later than six months prior to the anniversary of the agreement, or November 2, 2018.
The attached memorandum includes the history of the water buyout in Peoria, an overview of the 2002 Appellate Court decision upholding the right to purchase the water company, and several policy considerations for the Council to consider:
• Should the water supply, and its distribution system be controlled by the public?
• Should the City perform some due diligence up front prior to notifying the water company of the intent to purchase?
• What is the status of the PAAG lawsuit?
• How does the Council want to include the public in these discussions?
Staff looks forward to the discussion with Council.
FINANCIAL IMPACT: In 2005 the City came closest to purchasing the water company. The valuation settled on by the appraisal commission was $220 million.
NEIGHBORHOOD CONCERNS:
IMPACT IF APPROVED: N/A
IMPACT IF DENIED: N/A
ALTERNATIVES: Alternatives will be discussed at the policy session.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Grow Peoria: Businesses, Jobs, and Population
3. Vibrant Downtown: Riverfront/ Central Business District/ Warehouse District
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Invest in our infrastructure and transportation.
DEPARTMENT: City Manager's Office