After making a pitch to provide water and wastewater services to the Great Lakes Naval Training Center, North Chicago officials predicted Monday the arrangement could save money for residents and the military.
Mayor Bette Thomas was optimistic about the city’s chances of winning the contract, which she said could generate up to $3 million a year in revenue for the community.
“We have a crew that’s ready and standing by, ready to get to work,” Thomas said. “We feel very confident that we will be able to handle this, and we’re excited about it.”
The base’s water plant was built in 1910 and is deteriorating, making it increasingly expensive to serve the more than 20,000 sailors stationed there. Like many bases across the country, Great Lakes is interested in outsourcing some of its non-military services to save money.
Dan Jackson, managing director of the Texas-based consulting firm Economists.com, helped develop the city’s proposal. The Navy is expected to make a decision within 60 days, he said.
Lt. Cmdr. John Wallach, the base spokesman, would not comment on that timetable or on whether the Navy had received other bids for water services. The Navy requested proposals for the contract nearly two years ago, city officials said.
It would cost the Navy $15 million to upgrade its aging water plant, Jackson said. But expanding the capacity of North Chicago’s plant to serve the base would cost about $2 million, he said.
“If the Navy were to plug into the city’s system, then suddenly the city would virtually double the water it sells overnight,” Jackson said. “That would lead to a substantial reduction in rates for everybody.”
City officials said it is too soon to estimate how much rates might drop. The current water rate is $2.36 per 1,000 gallons. The city’s plant, which pumps about 10 million gallons of water a day, would have to be expanded to provide an additional 10 million to 15 million gallons daily for the base.
John Patterson, the city’s water superintendent, said such an expansion would cost $1.5 million to $2 million. Linking the city’s plant to the base’s water system would not be difficult or costly, he said.
Costs associated with expanding North Chicago’s water plant would be worked into Great Lakes’ monthly water rate, so the expansion would be paid off over the life of the 50-year contract, Jackson said.
Thomas said the agreement would create 10 to 15 jobs at the city water plant.
“It’s a great thing for the city of North Chicago,” Thomas said. “I feel that the city will really be able to move forward with this. It’s been a long haul; it’s been a lot of work involved. But we’re ready.”
