ACTION REQUESTED:
Title
Communication from the City Manager and Public Works Director with a Request to RECEIVE and FILE a LETTER Pertaining to the Offer by the CEO COUNCIL to Fund $400,000.00 for DUE DILIGENCE Activities Related to the WATER COMPANY BUYOUT.
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.
According to the 1889 Agreement and subsequent amendments and confirmed in the case Illinois-American Water Co. versus the City of Peoria 332 Ill. App. 3d 1098 (3d Dist. 2002), the City has the option to purchase the waterworks in Peoria. Section 17 of the Agreement outlined the terms and conditions for the exercise of the purchase option and provides for the appointment of a three member commission to determine the fair market value of the property to be acquired.
As part of this process, the City and IAWC agreed to terms and conditions, the "Rules of Order for the Commission", which would be followed in the execution of the valuation procedure set forth in Section 17 of the Agreement. The Rules of Order were last executed in 2003 (attached). These Rules of Order are outlined in the following manner:
1. Amendments - Amendments or additional rules can be made by a majority of the Commissioners, with the mutual consent of the City and IAWC.
2. Commissioners - The City and the IAWC would appoint a Commissioner each, and mutually select the 3rd qualified Commissioner.
3. Issues to be determined ...
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