The Niles Board of Trustees unanimously approved a contract with two law firms to help with the negotiations with potential new water suppliers.
For the past several years, the village has been looking for alternatives to getting water from the city of Chicago. Most recently, Niles considered a proposal where the village would work with Morton Grove and Park Ridge to get water from either Evanston or Wilmette.
As Niles Village Manager Steve Vinezeano explained to the board, hiring Holland & Knight LLP, a global law firm, and WRB LLC, a management consulting and services firm, will help the village with contract negotiations related to the switch. Holland & Knight would provide legal expertise, while WRB would provide advice on infrastructure-related issues. While many details of the project haven’t been finalized, the village touted the contracts as an important step toward making the switch.
In May 2014, Gewalt Hamilton Associates, a Vernon Hills based engineering consulting firm, presented two potential alternatives to Chicago’s supplying water to Niles, Morton Grove and Park Ridge governments. Both proposals called for the three municipalities to purchase the water together and pay for the costs of the infrastructure necessary to deliver the water. Because the municipalities would issue bonds to cover the costs, it wouldn’t directly affect their budgets.
The first proposal called for the three municipalities to sign an agreement with Glenview, which would deliver the water it gets from Wilmette. The second proposal called for the three municipalities to get water directly from Evanston.
Hamilton recommended pursuing the Evanston option in which Niles would pay $40 million, Morton Grove would pay $25 million and Park Ridge would pay $50 million.
Because it would take the municipalities 20 years to pay off the bonds, the savings wouldn’t fully kick in right away. Gewald Hamilton Associates study estimates that, during the first year, Niles would save $1.4 million, while Morton Grove would save $1.5 million. Niles and Morton Grove would be able to save $118 million and $95 million over the next 30 years.
The study projects that Chicago and Evanston rates would increase by two percent over the next 30 years. As Vinezeano explained to the Village Board during the Feb 24 meeting, the estimates are deliberately conservative, and that savings could potentially be greater.
During the Feb. 24 meeting, the board voted to hire Holden & Knight and WRB to help the village negotiate with the supply agreement. Vinezeano explained that each attorney brings something unique to the table.
“The first agreement is for [Holden & Knight Senior Counsel] Barbara Adams, who brings legal expertise,” he said. “[WRB LLC Managing Director] Bill Balling brings an elite level of knowledge about regional water projects. He had the opportunity to consult on six regional water projects.”
Balling, who attended the meeting, gave the board more details about what his firm can do for Niles.
“Our role is to provide high level of tech analysis,” he said. “We will confirm that savings are real, that the project is feasible and produces the highest benefit for Niles.”
Trustee Chris Hanusiak asked Vinezeano about what path the new pipes would take.
“It’s still being researched,” Vinezeano explained. “[The research] is turning the corner. These two consultants are going allow us to turn the corner.”
Hanusiak also noted that the contracts with the law firms only mentioned Niles and Morton Grove. Vinezeano said that Rark Ridge’s participation in the project is “in flux” as city officials continue to discuss the project.
Balling told the board that discussions with Park Ridge are “ongoing,” and he was hopeful that the uncertainly will be resolved in a few weeks.
Trustee Joe LoVerde touted the vote as an important milestone for the village.
“This decision is monumental,” he said. “It will protect our residents and businesses from out-of-control rate increases.”
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Mayor Andrew Przybylo expressed similar sentiments.
“This is a tremendous project,” he said. “This is like when the pyramids were built, but it is about savings, and bringing those savings to the village of Niles and to, jointly, Morton Grove.”
Igor Studenkov is a freelance reporter for Pioneer Press.