Illinois American Water will not purchase the City of Pekin's wastewater collection and treatment system.
Within two minutes Monday, the Pekin City Council discussed and unanimously rejected a resolution for City Manager John Dossey to enter into negotiations with the water company.
Dossey had prepared a 33-page memo listing the benefits and drawbacks of the proposed $112 million sale that included about $40 million for infrastructure improvements.
Among the pros were paying down police and fire pensions and getting the city off the hook for repairs and improvements of the wastewater system.
The main drawback was the city losing control of the system, which would have impacted future rate increases for residents and job security for current city employees.
The Illinois Commerce Commission, not the council, would have decided on rate hikes.
About 20 residents attended an open house earlier this month at City Hall hosted by Illinois American Water. Most attendees opposed the sale.
Council members had a variety of reasons for their "no" vote on Dossey entering into negotiations with the utility company. Dave Nutter said the council's unanimous rejection told Mayor Mary Burress, who did not attend the meeting, that the cons of the sale outweighed the pros.
"The 'no' vote was a confirmation of our due diligence," said Nutter. "The city would have lost all control of one of our main assets. Included in the loss was an estimated $14 increase in residents' monthly bills after Illinois American Water owned the assets.
"Plus, residents' input during the Illinois American Water open house didn't support the sale."
Karen Hohimer also expressed concerns about losing an important city service.
"This is an asset the city owns. Once we sell it and get the money for it, the money is gone and the asset is gone as well, and we can never get it back," she said.
Jake Fletcher said there was too big of a price increase in the first month after the sale for residents, and that the company did not provide him with the figures he requested about the its previous wastewater system purchases.
"I asked Illinois American Water for information on what residents in other cities were paying per month after their wastewater system was purchased," he said. "I wanted the breakdown per year for three to five years. The company never provided that information for me.
"That made me skeptical. Illinois American Water bought Alton's wastewater system four or five years ago, so I know that information is available."
Peg Phillips said she listened to the will of the people and experts' views.
"The experts and residents I spoke with all agreed that it would not be a good idea to proceed," she said.
Dossey said the city appreciates Illinois American Water's interest in Pekin "and the professional manner in which it approached this opportunity."
The council carefully evaluated the sale proposal, including the potential benefits and concerns identified through the review process, Dossey said, and ultimately determined that retaining local ownership of the wastewater system was the best decision.
"We thank Illinois American Water for their partnership [the company provides the city with water services] and we look forward maintaining a positive working relationship and exploring future opportunities that benefit Pekin residents," he said.
Dossey praised council members for their careful review of his lengthy memo and supporting documentation that helped them make their decision.
This was not the first time Illinois American Water made an effort to buy Pekin's wastewater system; it happened at least twice previously. The company first reached out last year regarding this purchase attempt.
