Lake in the Hills won't sell unincorporated water system
Lake in the Hills village officials have decided not sell a water main system serving an unincorporated area south of Algonquin and Pyott roads after residents there protested the move.
The village board voted 5-1 Thursday not to transfer ownership of that portion of the water system to Central States Water Resources, a private water and wastewater utility company.
Officials had sought to eliminate the village's liability of replacing the aging water system and fire hydrants - expected to cost roughly $1.8 million. The pipe is made of obsolete asbestos-composite material so fragile that basic flushing maintenance causes water main breaks - 45 percent of all water main breaks occur in this area, documents show.
The village sent letters Feb. 12 informing area residents about its intention to transfer ownership of that portion of the water system. The issue was tabled twice after unincorporated residents complained of not having enough time to fully review the matter and explore alternatives.
Village officials agreed last week to work with those residents to find a solution for upgrading the system.
Village President Russ Ruzanski said it was the right thing to do as residents feared their water fees would increase 10-fold under the new company.
"We were leaving them in tough shape ... there's an awful lot of work there (with the system)," Ruzanski said. "The company that was going to buy it was going to pay for that, but it would be put on the residents' backs. We would put too much of a financial burden on those folks."
The water main serving the area was installed in the 1950s by the original Lake in the Hills Water Co. before being purchased by the village. The system serves 71 customers, of whom four are village residents, and generates roughly $30,000 yearly from water sales, village documents show.
Unincorporated residents have been paying a quarterly $6 water main replacement fee, which officials say is barely enough to cover service calls.
"That's why not a lot of infrastructure has been replaced unless it is necessary," Ruzanski said.
Ruzanski said the plan going forward is uncertain. A committee will review options for fixing the area's water problems.
"They will pursue the county and township to help out," Ruzanski said. "There's always the potential for annexation. The sticking point that most of us had along the way was we don't want to increase rates for everybody in the village. We may look into (creating) a special service area. That would need incorporating into the village. Something like that might have to go to a referendum."
Fees also likely will need to be increased and the residents might have to form a homeowners' association, he added.