Skokie To Pay Evanston Over $4.2 Million In Unpaid Water Bills

SKOKIE, IL — More than four years after expiration of the last wholesale water contract between Skokie and Evanston, village trustees are set to approval a new agreement Monday.

As part of a mediated settlement to end state and federal litigation — started in September 2017 by Evanston's former City Manager Wally Bobkiewicz and Corporation Counsel Grant Farrar — Skokie has agreed to pay over $4,236,542 to Evanston for unpaid water and services over the past two years.

Skokie Village Manager John Lockerby and Corporation Counsel Michael Lorge revealed village officials had been keeping the millions in escrow "in anticipation of an ultimate resolution."

In a memo to trustees, they said the money includes an interest payment that had been calculated based on the return the village had been able to recoup from by withholding water payments.

The previous water contract expired in 2017 at a rate of $1.09 per 1,000 gallons.

Evanston city officials took the neighboring town to court in an effort to unilaterally impose a price hike to $2.06 per 1,000 gallons.

Skokie village officials responded by unilaterally lowering the price it paid Evanston while increasing the price it charged its own residents and filing a since-dismissed federal civil rights lawsuit.

"The unique Federal Court litigation filed by Skokie, was also our path to bring the dispute to a mediation process," Lockerby and Lorge said. "Along the way Skokie colleagues have built relationships with new Evanston personnel that have opened constructive communication and dialogue."

They described the negotiated rate as "an extremely good outcome for our residents and businesses."

Under the new contract, Skokie will pay $1.26 per 1,000 gallons in 2021, $1.40 per 1,000 gallons in 2022 and $1.43 per 1,000 gallons in 2023.

After that, the rate can increase, but not more than 4 percent a year under most circumstances.

An Evanston spokesperson said the back payment covers the period from October 2017 to January 2021, representing a rate fluctuating between $1.19 and $1.36 per 1,000 gallons, as the city added new municipal water customers and completed capital projects.

A Skokie spokesperson said the interest amounted to just over $95,000 of the total payment, which is due upon signing of the contract, which was approved by the outgoing Skokie Village Board at its final meeting Monday.

Patch has requested records showing the total legal fees accrued by both towns and will publish them when received.

READ MORE: Liquid Litigation: Evanston, Skokie Cut Deal On Water Contract