Peoria approves $300,000 infill housing project, 20 units amid water procurement conflict concerns
PEORIA, ARIZONA — October 9, 2018

Peoria approves $300,000 infill housing project, 20 units amid water procurement conflict concerns

Peoria City Council meeting featuring approval of infill housing development and body camera agreements, significant public testimony regarding Illinois American Water conflicts of interest and the unsolved Alexis Scott missing person case, and deferred action on dumpster screening ordinance pending language revisions.

Peoria Council Unanimously Approves Housing and Body Cameras as Public Speakers Level Conflicts-of-Interest Charges Against Mayor and Councilwoman Over Water System

The Peoria City Council on October 9, 2018 unanimously approved a $300,000 redevelopment agreement with Peoria Opportunities Foundation for scattered-site infill housing and three intergovernmental body camera agreements with county and municipal partners, but the routine administrative items were eclipsed by nine speakers—representing the League of Women Voters, a former city councilwoman, and concerned citizens—who outlined what they characterized as serious conflicts of interest involving Mayor Jim Ardis and Councilwoman Denise Moore in the city's deliberations over whether to pursue due diligence on acquiring the water system from Illinois American Water. Simultaneously, the council deferred action on a dumpster-screening ordinance to refine language on material standards and geographic exemptions, and received an update on the ongoing investigation into the disappearance of Alexis Scott.

Key Speeches

"Illinois American is listed as one of the top contributors to Peoria Promised a scholarship organization that Mayor Jim Ardis heads as chairman of the board. He helped found it and is touted it as one of his proudest achievements. The billion dollar-plus monopoly is recognized as a founder and one of the largest financial sponsors of WP Envy, a Southside radio station on the station's website council woman Moore is listed as the general manager and along with her husband Gary as the operator of the station. These financial interconnections raise serious questions of whether they are artists and more can objectively consider whether the city should conduct due diligence of the water system." — Bill O'Brien, public commenter

"The League of Women Voters has identified two individuals on the council who they believe have a conflict of interest with respect to the council's decision whether or not to pursue due diligence: Mayor artists and Councilwoman [Moore]. The city's lack of a definition of what constitutes a conflict of interest is not acceptable. It's common practice for boards to routinely define what they believe is a conflict of interest and to routinely ask their board or trustee members if they have such a conflict." — Gail Thetford, former Peoria City Councilwoman

"PAAG is shorthand for the Peoria Area advancement group and that's a couple of handfuls of business leaders who in 1998 came together to help the city. Their mission was to help the City study the feasibility of purchasing the water system and the benefits of its long term income stream to the citizens of Peoria. PAAG raised 1 million dollars and helped the city find appraisers expert witnesses and attorneys to help in the process." — Shelly Epstein, public commenter

"One of the cases that has been ongoing is the investigation into the Alexis Scott case. With the additional assistance of the FBI I want to assure the council in the citizens of Peoria that the Peoria Police Department is working diligently to investigate this case and will not stop the investigation until we do find her. The Peoria Police Department has spent a significant amount of time and resources in this investigation and we continue to do so." — Chief Marion, Peoria Police Department

Timeline

Opposition

Number of speakers: 9 public commenters; organized positions: League of Women Voters (Terrell Davies, Gail Thetford—former councilwoman), PAAG supporter/community member (Shelly Epstein), concerned citizens on Alexis Scott case and police protection.

Main concerns:

  1. Conflicts of interest regarding water system due diligence: Mayor Ardis chairs Peoria Promise, which lists Illinois American Water as a top donor ($100,000–$499,000 range); Councilwoman Moore is general manager and co-operator (with husband Gary) of WPJX radio station, which lists Illinois American as a founder and major financial sponsor. These financial interconnections create perception or appearance of conflict regarding objectivity on water-system acquisition decisions.

  2. Absence of conflict-of-interest policy: City lacks formal definition of what constitutes a conflict of interest; Peoria County Board and ICC Board of Trustees have such policies requiring board members to recuse from matters involving entities to which they are connected.

  3. Unresolved 15-year PAAG lawsuit: PAAG (Peoria Area Advancement Group) in 1998 raised $1 million to fund water-system due diligence (appraisal, expert witnesses, legal fees) under a signed contract with the city. City failed to complete due diligence beyond appraisal; Judge Kate Gorman in a recent ruling ordered the city to pay PAAG $2.1 million principal and interest, plus accumulating daily damages (hundreds of dollars per day) for breach of contract. No settlement negotiations documented; case wound through courts for 15 years without negotiating sessions (except one December meeting, per Epstein).

  4. Alexis Scott missing-person case stalled: Case unsolved for over one year. Public frustration over investigative progress, gang activity in neighborhoods, insufficient police protection, and perceived inaction by law enforcement. Speakers called for transparent proof of FBI involvement and demanded resolution.

  5. Public safety concerns tied to unsolved case: Speakers reported gang members threatening residents, jumping in their faces, threatening to run people over with cars; police absence during critical moments. Perception that gangs are controlling Peoria streets while Alexis Scott case remains unsolved.

  6. Due diligence study blocked despite contractual obligation: City Council in prior vote (6–5, led by Mayor Ardis) voted not to proceed with due diligence despite signed contract to do so. Due diligence did not commit city to purchase, only to study feasibility. Illinois American Water sued to challenge 1889 franchise agreement and five-year purchase option; courts ruled against IAW and upheld franchise. PAAG money funded successful legal defense.

  7. Misinformation campaign by Illinois American: Before spring council discussion, unsigned mailings and billboards appeared claiming false information (e.g., "$300 million price tag"), attributable to "Protect Peoria Water" campaign. IAW admitted to NPR involvement with this group alongside Chicago consultants.

Most compelling arguments:

Organized groups:

Support

Positive votes / items without opposition:

Support for water-system due diligence (separate from council conflicts):

Project Details

Item 18-278: Peoria Opportunities Foundation Infill Housing Development

Item 18-292: Solid Waste Program Outreach & Engagement Contract

Item 18-294: Body Worn Camera Intergovernmental Agreements

Item 18-275: Refuse Containers Ordinance (Deferred)

Item 18-290: Inactive Construction/Development Sites Ordinance

Item 18-173: Fire Station Tuckpointing Contract (Deferred)

Vote Breakdown

Consent Agenda (items 18-293, 18-295–18-297):

Item 18-292 (Solid Waste Program Outreach & Engagement, $89,000):

Item 18-294A (Body Worn Cameras—City of Peoria & Peoria County Sheriff/County):

Item 18-294B (Body Worn Cameras—City of Peoria & City of East Peoria):

Item 18-294C (Body Worn Cameras—City of Peoria & Peoria Park District):

Item 18-298 (2019 Budget Committee Report / Policy Session Minutes):

Item 18-275 (Refuse Containers Ordinance Amendment—Deferral Motion):

Item 18-290 (Inactive Construction/Development Sites Ordinance):

Item 18-173 (Fire Station Tuckpointing—Deferral):

Item 18-278 Part A (Peoria Opportunities Foundation Redevelopment Agreement):

Item 18-278 Part B (Budget Amendment for Redevelopment Agreement, $300,000):

Individual votes not named in transcript for most items; council communication read indicates unanimous passage without roll call breakdown where not explicitly stated.

Outcome & Next Steps

Approved items:

Deferred items:

Ongoing / No formal action:

Controversies & Context

Illinois American Water Conflict of Interest:

The October 9 meeting was dominated by public concern over potential conflicts of interest affecting the city's deliberations on whether to pursue due diligence (study and appraisal) toward acquiring the water distribution system from Illinois American Water—a matter with significant financial and governance implications for Peoria residents.

Bill O'Brien, speaking as a private citizen, outlined Illinois American's financial relationships with two city council members:

  1. Mayor Jim Ardis: Ardis chairs the board of Peoria Promise, a scholarship nonprofit he helped found. Illinois American is listed as one of Peoria Promise's five largest contributors, having donated between $100,000 and $499,000 over several years.
  2. Councilwoman Denise Moore: Moore serves as general manager and, along with her husband Gary, as operator of WPJX radio station. Illinois American is listed as a founder and one of the largest financial sponsors of WPJX.

O'Brien argued that these financial interconnections create a perception or appearance of a legal conflict of interest that should be disclosed and discussed publicly on the council floor. He called on the corporation counsel to seek an expedited opinion from the Illinois Attorney General.

Gail Thetford, a former Peoria City Councilwoman, expanded this analysis by noting that the city lacks a formal conflict-of-interest policy (common in most boards and county government). She cited Peoria County Board language requiring abstention when a board member is an officer of or sits on the governing body of any entity receiving direct or indirect financial benefit. Thetford noted that Councilwoman Moore's situation (direct receipt of funds by her radio station) constitutes a direct conflict, while Mayor Ardis's situation (indirect, through Peoria Promise) constitutes a strong appearance of conflict. She cited recent precedent: Cindy Luce, chair of the CEO Council (which offered the city $400,000 to pursue water due diligence), immediately recused herself from further involvement with the CEO Council's offer after her company received a contract from Illinois American Water.

No council member formally responded to or addressed these allegations during the meeting. No vote was called on seeking an Attorney General opinion. The matter was not explicitly placed on a future agenda.

15-Year PAAG Lawsuit and Water System Due Diligence:

Shelly Epstein, speaking as a community member with knowledge of Peoria Area Advancement Group (PAAG), provided historical context on a protracted legal dispute:

Epstein criticized the conflation of PAAG with CEO Council (a separate entity with separate governance and members), noting that media and council members have incorrectly suggested that PAAG is "run or manipulated" by CEO Council or vice versa.

Misinformation Campaign:

Bill O'Brien noted that in spring 2018 (just before the council was to discuss water system issues), unsigned mailings and billboards appeared in Peoria making false claims (e.g., "taxpayers' money going down the drain," "$300 million price tag"). O'Brien stated that Illinois American admitted to NPR that it is "Protect Peoria Water," the group behind this campaign, working with Chicago-based consultants. O'Brien argued that Illinois American cannot know the system's price until a formal appraisal is done, and questioned who else is behind the "Protect Peoria Water" effort.

Alexis Scott Missing-Person Case:

Police Chief Marion provided a brief update on the ongoing investigation into the disappearance of Alexis Scott (missing for over one year). He stated:

Multiple public speakers expressed frustration over lack of progress:

No formal action, timeline, or additional resources were allocated during the council meeting. Chief Marion indicated that regular updates would be provided, but no schedule was set.

Water System and Public Confidence:

Terrell Davies, speaking on behalf of the League of Women Voters of Greater Peoria, addressed public concern about the city's capacity to manage a public water system. She outlined three management models presented in educational forums:

  1. Independent Government Water Agency or Consolidation (e.g., with Greater Peoria Sanitary District): GPSD is a Municipal Corporation with usage-based rates; an independent agency could similarly have board members appointed by the city, transparent open-meeting compliance, and citizen participation.

  2. Municipally Owned and Managed Utility: Examples from Springfield and East Peoria show benefits including efficiency gains (equipment sharing, personnel pooling, GIS information sharing) and open-meeting compliance. Marilaine Felder (Springfield) advised: "We should always ask who benefits and is it for the public good."

  3. Public-Private Partnership (city-owned, privately operated): Example: Veolia operates systems in Streeter, Edwardsville, and Wood River in Illinois. Key benefits include performance-based contracts with penalties for underperformance, operational efficiencies, and cost competitiveness with municipal operations.

Davies emphasized transparency and accountability as essential to public confidence and noted that "currently [the city] do[es] not feel that there is enough of that." She called for the council to gather facts—not predetermined outcomes—to determine whether public water ownership is a wise investment.

Welcoming City Ordinance:

Multiple speakers advocated for adoption of a welcoming city ordinance to protect immigrant residents and prevent collaboration with ICE (Immigration and Customs Enforcement).

No council action or referral to committee was recorded.

Columbus Statue Removal:

Speaker Rachel O'Reilly called for removal of a