Oak Park council approves amendment to GLWA wholesale water contract, cites possible $150K–$200K savings

Oak Park — The City Council on April 20 approved Amendment No. 5 to the city's wholesale water contract with the Great Lakes Water Authority, a move staff said could reduce the city's wholesale costs if member communities agree to similar changes.

Deputy City Manager Dave DeCoster told the council the city's upgrades at its 8 Mile pump facility have lowered both the "max day" and "peak hour" figures that GLWA uses to calculate wholesale charges. "Because of that, we've been able to lower both those figures," DeCoster said, adding staff projects potential savings of about $150,000 to $200,000 annually depending on how GLWA negotiates final terms with member communities.

The amendment does not guarantee savings, DeCoster warned; he said actual results depend on whether other GLWA members reduce their peak figures in the same way. He also said GLWA continues to raise rates on a separate schedule and that this year's pass-through increases are about 4.2% on the sewage side and roughly 5.8% on the water side.

City Manager Eric Tungate told council members the administration will recommend a combined 6% water and sewer rate in the upcoming budget session, taking into account GLWA charges and other system needs. "These are the things we can do on our system to manage it to continue to bring those rates down," DeCoster said, while noting long-term increases from GLWA are likely to continue.

Council approved the contract amendment by roll-call vote. The amendment was presented as a cost-management measure tied to capital upgrades already completed on Oak Park's system; staff said the city will continue to monitor flows and work with GLWA and other members to realize anticipated savings.

Next steps: staff will finalize the amendment language with GLWA and report back to council as negotiations with member communities conclude.