The City of Kewanee is evaluating three distinct proposals for its water and sewer treatment plant management. Current operator Bock, Inc., is vying to retain the contract, while ION Environmental Solutions presents an alternative operational plan. Furthermore, Illinois American Water has proposed a $34 million acquisition accompanied by substantial infrastructure upgrades, aimed at enhancing service delivery. Each option presents unique benefits and challenges, prompting a thorough review by the City Council. Residents and stakeholders eagerly await the decision, which could profoundly impact the city’s future water service quality and efficiency.
“The City Council will have three proposals to choose from, each of which has their own merits,” said City Manager Gary Bradley. Bock, Inc., the firm that operates the systems today, was among the three proposals. “The City has worked with Bock for several years, so there’s familiarity with them, we know how they work and what to expect,” Bradley added. ION Environmental Solutions, of Muscatine, Iowa, provided proposal, as well. “We haven’t worked with them before, but they’ve operated plants that are similar to Kewanee’s systems, and their proposed fee is significantly lower than the proposal provided by Bock, Inc.”
Rumblings on social media have highlighted concerns over Kewanee’s City Council potentially relinquishing control of water rates. The debate centers around balancing current affordability with future system upgrades. Bradley emphasized that while local control can maintain low rates, it often neglects necessary improvements. Any future rate changes would need approval from the Illinois Commerce Commission. “Control is a big thing for a lot of people. In several communities, that local control has led to keeping rates as low as possible without setting aside funds for future improvements to the system, the proverbial ‘kicking the can down the road.’ That helps current ratepayers, but it hampers the customers in the future, and that’s kind of where we find ourselves today.”
Kewanee’s water and sewer systems are suffering from long-term deferred maintenance, and operating costs are covered but rates are not high enough to cover system improvements that are needed. “It’s not just about raising rates,” Bradley said, “They can lower operating costs because they have economies of scale in purchasing. They pay a lot less for the same things we’re buying, because they’re buying them in bulk.”
Speculation has surged regarding Illinois American Water’s proposal to acquire and operate a city’s water system for approximately $34 million. Illinois American Water would operate the water and wastewater treatment plants for up to one year to ensure the market value is fair, providing clarity for both parties. Alongside the purchase, Illinois American Water plans to invest about $30 million over five years in system improvements. This proposal potentially revolutionizes local infrastructure maintenance, offering the city financial flexibility for streets and stormwater management. Such changes could empower the city to handle street work independently, significantly enhancing infrastructure quality across the region.
“We were talking about doing $8 million in improvements at a meeting recently, and we knew that would barely touch what needs to be done to the system.” As for the proceeds from the sale, “How those funds would be spent would be up to the City Council to decide, but it would certainly be enough that the City could take a drastically different approach to how it maintains streets and stormwater.” It would be enough for the city to acquire pavement reclamation and laydown equipment, or its own small asphalt plant if reclamation wasn’t the preferred option, to be able to perform its own street work going forward. “We could resurface the streets on our own,” Bradley said, “and we could do it in such a way that we could leverage our newly found resources with the resources provided by Illinois American, ultimately giving Kewanee some of the best maintained infrastructure in the region.”
“We just got the proposals last Friday afternoon,” Bradley said, “we need a chance to sift through them to evaluate the advantages and disadvantages of each. When we’ve done that and have made a recommendation to the City Council and they’ve chosen a course of action, then we’ll be in a better place to comment on the specifics of each proposal. Right now, there’s a lot of disinformation being circulated and statements being made that are just false. We’re going to take the time to ensure that the City Council has all of the relevant information they need to make the best decision for Kewanee based on facts, not fearmongering and fiction.”