With Chicago water prices rising and suburbs looking for cheaper sources of water to fill residents’ taps, Niles and Morton Grove had hoped to combine their buying power and purchase water from a Wilmette-Glenview consortium. The Lake Michigan water would have been purified in Wilmette and pipelined through Glenview.
That option tanked this week as Glenview said its deadline had passed and it withdrew its offer to supply Niles’ water. A joint Niles and Morton Grove water-buying partnership still has at least one other viable source of water — Evanston. There is also the possibility of bringing Park Ridge on board, potentially as a customer of a Niles-Morton Grove pact.
Whether the water originates in Wilmette or Evanston, it will be cheaper than water from Chicago, which has raised its rates 114 percent since 2008, according to the villages.
The Wilmette-Glenview option would have had lower upfront costs for Niles and Morton Grove because it would have used the existing Wilmette-Glenview water transmission system and necessitated building only a new water main down Harlem Avenue. Though Glenview has withdrawn its offer for Niles, it is still offering to build a pipeline with enough capacity to serve the water needs of Morton Grove alone.
Morton Grove’s contract for Chicago water expires in 2018, while Niles’ water contract with Chicago does not expire until 2019, putting Niles under less pressure to act immediately.
“I understand that Glenview has a timetable, but for Niles to make a fair decision, they have to analyze data,” said Morton Grove Mayor Dan DiMaria. “This is not something you rush into. This is a monumental decision for a village, and it needs due diligence.”
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Niles Village Manager Steve Vinezeano says notwithstanding Glenview’s pulling back its offer, his village is looking to continue the partnership with Morton Grove.
“The Morton Grove and Niles group will continue to move forward,” he said.
If the two villages decide as buying partners to purchase water from Evanston, there would be higher upfront capital costs because they would need to build a longer length of pipeline. Evanston has offered to let the villages buy water directly from its water treatment plant, but digging up streets to lay pipes is an expensive proposition.
“All options at this point will be a financial undertaking,” Vinezeano said. “There is no cheap option.”
He noted there would still be significant savings over continuing to buy water from Chicago, though.
Morton Grove’s DiMaria suggested it is almost a rent vs. own situation—with renting being buying water from Wilmette/Glenview, and owning meaning building a pipeline from Evanston.
“We would own the pipeline, and Park Ridge may come on board,” DiMaria said.
“Maybe 30 years down the road Des Plaines comes on board. We have customers versus being a customer.”
He stressed that the villages have to look at what’s good for their residents, and for return on investment, in the short, medium and long terms.
“You can’t be afraid to put in more money up front if the return is great,” he said.
“With Niles, more capital is required to lay the groundwork to get water from Evanston. The people of the future will reap benefit but it’s good for people of today too, because the cost savings over Chicago is huge. Even with the debt you’re going to pay in the long run, you’re still way ahead.”
Asked if Chicago might consider lowering its rates, DiMaria conceded that it was unlikely, since Morton Grove and Niles combined only count for 2.25 percent of Chicago’s water customer base.
DiMaria and Niles Mayor Andrew Przybylo formed committees to review the water options, and have also retained attorney Barbara Adams of Holland and Knight, LLC, and consultant William Balling to advise them on engineering, legal and other aspects of any water agreement.
The villages have to consider engineering feasibility studies of building a pipeline from Evanston, as well as financing options.
They said in a March 16 joint press release they hope to reach a decision within 60 days.
Pam DeFiglio is a freelance reporter for Pioneer Press.