The City of Watseka and ERH Enterprises will part ways next spring. The city will take over the water and waste-water system ending a 23-year relationship with the Vermilion County company.

Westville-based E.R.H. Enterprises has contractually managed the system, maintaining and operating the water works and meeting EPA requirements. The E.R.H. contract expires April 30, 2020. The city will take over with the new fiscal year.
Alderman Mark Garfield’s motion to bring the system back in-house was supported with a 7-0 vote. Newly-seated alderman Donnie Miller abstained.

The Council also voted 8-0 to pursue a $3-million general obligation bond to financially support the transition. A business plan will be in place to specifically outline the operation.

Alderman Garfield called for the mayor to begin the process of making sure funding is in place to cover start-up costs, capital needs and necessary upgrades to maintain the water system.

Mayor John Allhands has expressed reservations about whether the city was in a position to take over such an operation. He said he respects the Council’s decision and will move forward.

“I’ve worked on this for two years. Alderman (Dennis) Cahoe has studied this two years prior. I’m confident we can do this and will be a good endeavor for the citizens of Watseka,” Garfield said.

The city contract with E.R.H. is for $534,000 annually. E.R.H. owner John McBride and his son, Sean, offered an extended 3-year contract at the same price with a request that the city add $50,000 per year toward capital improvements. Sean McBride suggested if the city refused that route, then the contract would include a three-percent increase annually.

The Council chose to go it alone.

John McBride added, there’s costs and guarantees – under the contact—that the city may find a real burden. He told the Council there’s employee benefits, chemical costs and other factors E.R.H. covers that again may be a financial burden for the city.

94.1 WGFA