The Village of Lincolnwood today approved a water supply agreement with the City of Evanston.
The village officials say they began searching for an alternative water supplier following a series of rate increases from the City of Chicago, the Village’s current supplier.
Alternative water supply options with the City of Evanston, the Village of Skokie, and the Village of Wilmette were evaluated and through this evaluation process it was ultimately determined that the most feasible alternative supplier, with the lowest long term cost would be the City of Evanston.
The approved agreement includes an initial term of 39 years and may be extended by additional 10-year terms.
Over the initial 39-year term of the agreement, the village is estimated to save approximately $57 million compared to purchasing water from the City of Chicago.
Following construction of a large transmission main to bring the water supply into the village it is anticipated that the City of Evanston will begin providing water to Lincolnwood in 2020.
The agreement provides wholesale rates for the years 2020 through 2022. The wholesale rate for 2020 is $1.60 per thousand gallons of water used, while the Village’s current wholesale rate with the City of Chicago is $3.94 per thousand gallons of water used.
After 2022, it is anticipated that the rate will increase 2 percent per year, however the agreement caps the increase at 4 percent annually.
The Village Board has endorsed an Infrastructure Plan which will allow the village to fund the costs to build the new transmission main to receive the new water supply as well as to fund the phased replacement of the village’s oldest water mains; some of which are 100 years old.
Lincolnwood’s President Barry Bass said, “The Village has worked hard over the last couple of years to find an alternative water supplier that will provide the same quality of water to the residents at a lower cost. We look forward to our partnership with the City of Evanston.”