AFSCME Privatization Update

Source: Akron Beacon Journal (OH), Saturday, Mar 29, 2008

......... In his annual State of the City address on Feb. 7, Mayor Don Plusquellic proposed selling the city's sewer system to pay for scholarships for Akron's public high school graduates to the University of Akron or to trade schools.

....... The American Federation of State, County and Municipal Employees, a union whose members could lose jobs under concession agreements, says pretty much the same thing. ''Investors will make their money from future users paying higher tolls and fees over the life of the agreements,'' the union said in January in an assessment of the Chicago and Indiana deals.

...... The local chapter of AFSCME, which represents Akron's sewer workers, has said it would fight Plusquellic's proposal, and other Akron residents have raised concerns.

Posted by Info Center at 2:33 PM in Asset Sale/Lease | Water & Sewer | Permalink
Tags: Ohio

Source: By Daniel Barbarisi, Providence Journal (RI), Tuesday, March 25, 2008

The city is considering selling the Providence Water Supply Board and the network of reservoirs and treatment plants it controls in order to pay down the huge debt in the city's pension system.

...... The money from a sale would be used to pay off the debt to the city's pension system, which is owed roughly $700 million.

Posted by Info Center at 11:16 AM in Asset Sale/Lease | Water & Sewer | Permalink
Tags: Rhode Island

Source: By Bob Downing, Akron Beacon Journal (OH), Friday, Feb 08, 2008

One national wastewater organization Thursday voiced concern about Akron's proposal to sell off its sewage system.

The National Association of Clean Water Agencies in Washington, D.C., is firmly opposed to privatizing public utilities, said Susan Bruninga, director of public and legislative affairs.

........The fear is that the prices paid by consumers for water or sewer will soar because private companies must make enough money to operate the utility plus satisfy their shareholders, Bruninga said.

Posted by Info Center at 10:39 AM in Water & Sewer | Permalink
Tags: Ohio

Source: Centre Daily Times, Wednesday, Jan. 30, 2008

United Water announced today that the company has been awarded a new contract to operate the City of Jersey City, New Jersey's water system for the next 10 years. Under the terms of the agreement, United Water will manage the treatment plant, watershed, aqueduct, and distribution system and provide customer service, meter reading and billing services. The final contract terms have been submitted to the New Jersey Board of Public Utilities, the New Jersey Department of Environmental Protection and the New Jersey Local Finance Board for review and approval.

United Water, whose current contract ends January 31, 2008, has operated the Jersey City facilities through a public-private partnership since 1996.

Posted by Info Center at 1:35 PM in Water & Sewer | Permalink
Tags: New Jersey

Source: By Dave Flessner and Michael Davis, Chattanooga Times Free Press (TN), Wednesday, January 09, 2008

The city of Chattanooga has dumped at least $15 million in the past seven years into a sludge treatment process that was improperly designed and has yet to work, according to a new internal audit. (.pdf)

Mayor Ron Littlefield said Tuesday he wants the contractor hired in 2001 to develop the system -- US Filter, now owned by Siemens Water Technologies Corp. -- to fix the problem at the Moccasin Bend Wastewater Treatment Plant as soon as possible. He said he will be meeting with a company official to discuss possible solutions within the next week.

Posted by Info Center at 11:15 AM in Horror Stories | Water & Sewer | Permalink
Tags: Tennessee

Source: By David Siders, The Record/Public Services International (CA), November 30, 2007

STOCKTON - A city panel Thursday endorsed a plan for the transfer of Stockton's water and sewer utilities from private to municipal control, promising in the transition's oversight to involve activists who sued the city to undo its privatization deal.

If approved next month by the City Council, the plan would establish an oversight group including labor groups, activists and the council's water panel, the body that recommended the plan Thursday.

Posted by Info Center at 11:55 AM in Publicization | Water & Sewer | Permalink

Source: By DON BEHM, Journal Sentinel (WI), Nov. 20, 2007

The Milwaukee Metropolitan Sewerage District could save its customers in 28 communities about $5 million next year by hiring Veolia Water North America to operate the district's wastewater treatment system rather than giving the job to itself, district officials said.

The district and its employee unions cannot fully close such a gap by trimming labor costs, the one expense unions could help control, said Executive Director Kevin Shafer. The gap takes into account a savings of $800,000 gained by shutting down a contract compliance office if a private company no longer operates MMSD's treatment facilities.

Posted by Info Center at 11:12 AM in Water & Sewer | Permalink
Tags: Wisconsin

Source: Peter Schnitzler, Indianapolis Business Journal, Thu. November 15 - 2007

The city of Indianapolis has signed a new contract with United Water Services, which has managed the city's wastewater-treatment facilities and sewage-collection system since 1994. The new nine-year contract, which takes affect Jan. 1, includes an option for renewal in 2017 and 2023.

United Water will earn $28.5 million in annual revenue for its services, plus an opportunity to earn another $7 million in yearly incentives if it reaches goals for operating efficiency and service enhancements.

Posted by Info Center at 10:55 AM in Water & Sewer | Permalink
Tags: Indiana

Source: BY ZACHARY GORCHOW, Detroit FREE PRESS (MI), October 9, 2007

Union leaders and some residents of southwest Detroit denounced Monday a proposal to build a privately run facility that would reprocess into fertilizer the sludge that's left after the water is wrung from sewage. But at a Detroit City Council hearing on the issue, a number of residents also said they support the proposal because it would bring jobs, save taxpayer money and reduce pollution.

...... The proposal angers union leaders fearing displacement of city workers -- even though the contract calls for such workers to be retrained for other duties in the department. John Riehl, president of AFSCME Local 207, which represents water and sewerage workers, said he doubts the city's commitment to retrain.

Posted by Info Center at 3:28 PM in Water & Sewer | Permalink

Source: District Council 37 Public Employee Press, October 2007

Earlier this year, professionals at the Dept. of Environmental Protection were concerned about reports that the city would farm out the design work for a major section of its $6 billion water tunnel project.

...... Local 375 demanded a meeting with management to press the department to keep the work in-house. At the July 2 session with 1st Deputy Commissioner Steven Lawitts, Fort was accompanied by Chapter 13 President Vincent Moorehead, Chapter 8 President Steve Awad and Business Rep Karl Toth.

Fort underscored the local's position that the in-house staff would bring in the project at a lower cost than consultants, thanks to their expertise and institutional knowledge. He pointed out that in-house design work on the Manhattan section, including thousands of drawings and other documentation, had saved at least $40 million and was competed two years ahead of schedule.

The local estimates that keeping the Kensico work in-house will save the city $57.2 million in design costs alone. The design, construction and construction management budget for the project is $1.3 billion.

Posted by Info Center at 2:31 PM in Victories | Water & Sewer | Permalink

Source: By DON BEHM, Journal Sentinel (WI), Sept. 23, 2007

The next 10-year contract to operate the Milwaukee Metropolitan Sewerage District's regional sewers, deep tunnels, wastewater treatment plants and Milorganite production facility - worth several hundred million dollars to the company hired to do the work - is up for grabs.

....... One union representing United Water employees does not expect the next private contract to provide any savings to local ratepayers. For that reason, Local 366 of the American Federation of State, County and Municipal Employees forecasts a return to MMSD operations, said Rich Abelson, executive director of AFSCMA [sic] District Council 48.

Posted by Info Center at 1:44 PM in Water & Sewer | Permalink

Source: By JAIME GATTON, Mooresville Tribune (NC), Wednesday, August 29, 2007

CH2M Hill said this week it needs nine additional months to complete the design of the town's wastewater treatment plant expansion.

The firm also said it's going to need more money.

.......More specifically, CH2M Hill stated that the delay is due to the state setting limits on phosphorous discharges into Lake Norman. Now, said Wimberly, the design plans that CH2M Hill has developed the past year will have to be "tweaked" to accommodate the changes.

Osborne said CH2M Hill wasn't aware of the potential phosphorous limits until a meeting that the firm and town had with the state in April.

..... CH2M Hill's local experience has been a point of contention since October 2004, when the town's engineering and utilities departments unanimously recommended Black & Veatch to negotiate the scope and fee of Mooresville's treatment plant expansion.

Posted by Info Center at 10:13 AM in Horror Stories | Water & Sewer | Permalink

Source: By JAIME GATTON, Mooresville Tribune (NC), Wednesday, August 22, 2007

While Mooresville taxpayers wrestle with rising utility bills, largely to pay for the expansion of the town’s wastewater treatment plant, the company hired to design the project has been paid more than $150,000 for expenses ranging from airline tickets and $176 hotel rooms to chewing gum and $4.65 Starbucks coffees.

Many of the expenses turned in by the company, CH2M Hill, had no receipts and non-itemized receipts, but the town reimbursed them anyway, a Tribune examination shows.

Posted by Info Center at 1:11 PM in Horror Stories | Water & Sewer | Permalink

Source: By Alan Snitow and Deborah Kaufman, USA Today, August 21, 2007

....... In July, the Stockton City Council voted unanimously to roll back the largest water privatization in the West. After four years, the $600 million showcase deal with a multinational consortium, OMI-Thames Water, has been scrapped in favor of a return to public control.

The decision came after repeated court rulings determined that the deal violated California's environmental law, but the legal issue was only the last straw. Noxious odors drifted regularly from the sewage treatment plant. There were sewage spills, fish kills, increased leakage from underground pipes, staff turnover and increases in water rates after years of rate stability.

........ Now, doubts about corporate water privatization are spreading from small towns such as Lee, Mass., to midsize cities such as Stockton and metropolises such as Atlanta, where water privatization failed miserably in 2003.

Even so, whenever a bridge falls, a levee breaks or a steam pipe bursts, we invariably hear renewed calls to privatize. Let Stockton's experience testify that privatization is not the solution.

Posted by Info Center at 10:35 AM in Publicization | Water & Sewer | Permalink

Source: By DAVID REID, The Republican (MA), Wednesday, July 25, 2007

The New Jersey-based United Water Inc. has bought the AOS Operating Company, which has been upgrading and running the city's wastewater treatment plant since fall 2005.

In a statement on its Web site on Monday, United Water announced it has paid $6.55 million to buy AOS - formerly the Aquarion Operating Services Company - of Bridgeport, Conn., from The Kelda Group of London.

Posted by Info Center at 10:33 AM in Water & Sewer | Permalink

Source: By Sharon Woods Harris, Pekin Times (IL), Tuesday, August 14, 2007 2:33 PM CDT

City Council member Tom Blanchard says he cannot support any increase in the wastewater fee in the future because the city has saved a lot of money by operating the wastewater plant on its own.

Previously, the wastewater plant was operated by United Water. The city took over operations of the plant in April 2005 while under the administration of former Mayor Lyn Howard, when bids increased significantly.

United Water's bid was $949,568 for one year in 2005. The city estimated it would save $221,355 in the first year if the contract was not renewed and it operated its own wastewater facility.

Posted by Info Center at 10:31 AM in Publicization | Water & Sewer | Permalink

Source: By ERIC SCOTT CAMPBELL, News & Tribune (IN), August 8, 2007

A divided New Albany City Council on Monday night directed its attorney to challenge recent contracts signed by the sewer utility and drainage utility, on the grounds that no bidding competition was allowed.

The resolution authorizes council attorney Jerry Ulrich to lodge a complaint in Floyd County Circuit Court. That court’s judge, J. Terrence Cody, already is presiding over a similar challenge — he granted drainage-workers union American Federation of State, County and Municipal Employees a temporary restraining order to block the drainage deal until a hearing Friday morning.

Posted by Info Center at 11:37 AM in Laws/Legislation | Water & Sewer | Permalink

Source: By Megan Tady, In These Times, August 1, 2007

Bill Lokyo never expected to find himself embroiled in a six-year battle over water with a multinational corporation and city officials in Stockton, Calif. .

....... But Lokyo and the group Concerned Citizens Coalition of Stockton (CCOS) felt compelled to challenge a rushed deal that turned the city’s publicly owned water system into a for-profit venture. This month, their perseverance paid off when the city finally sent privatization packing.

........ “It’s both symbolic for the anti-water privatization movement, and it’s a real victory for the citizens’ groups of Stockton—it means that the ordeal of water privatization is over for the city of 270,000 people,” says Wenonah Hauter, executive director of Food and Water Watch.

Posted by Info Center at 11:26 AM in Victories | Water & Sewer | Permalink

Source: By Dick Kaukas, The Courier-Journal (KY), Sunday, July 29, 2007

The New Albany City Council took a first step yesterday toward restricting the powers of the city's storm water board, which recently agreed to a $507,000 no-bid contract with a private company to manage the city's drainage system. Technically, the council voted 5-1 at a special meeting to repeal the ordinance that created the board a year ago. But council members, including Beverly Crump and Kevin Zurschmiede, made it clear that what they really want to do is amend the ordinance. They propose to limit the no-bid contracts that the board can enter into and require regular consultation with the council about budget and operations.

…..….. Before yesterday's vote, 10 people addressed the council, including Mickey Thompson, head of Local 1861 of the American Federation of State, County and Municipal Employees, which represents city workers. He asked the council to "do something about this board."

Posted by Info Center at 3:05 PM in Laws/Legislation | Water & Sewer | Permalink

Source: By David Siders, The Record (CA), July 18, 2007

The City Council abandoned the city's landmark, $600 million water privatization deal late Tuesday, dropping its appeal of a court's ruling that the deal was illegal and promising to retake control of water and sewer facilities by March 1.

The decision, reached 5-0 in a private meeting, cheered the Concerned Citizens Coalition of Stockton, which has sought to dismantle the 20-year deal with water giant OMI-Thames Water since the council approved it in 2003.

......... In a separate agreement with OMI-Thames, the two sides struck a partial settlement in which the company will finish upgrading the city's sewer plant and will pay the city about $2.1 million to settle outstanding issues before leaving Stockton next year, officials said.

Related article from Canadian Union of Public Employees (CUPE): Stockton California water stays public

Posted by Info Center at 10:54 AM in Laws/Legislation | Publicization | Water & Sewer | Permalink

Source: Alix Stuart, CFO, Vol. 23 no. 1, February 2007

When most CFOs think about liquidity, they're calculating how fast they can turn assets into cash. But Aqua America finance chief David Smeltzer is just as likely to be concerned about how smoothly water is flowing through the 10,000 miles of pipes his company owns. As the largest among a handful of publicly traded companies in America that are in the business of purifying and delivering tap water, Aqua America has operations in 13 states from Maine to Texas. Having kept up a steady pace of acquisitions — 25 to 30 per year for the past five years — Smeltzer says his company will continue its aggressive expansion. "There are unlimited targets out there," he says.
….Cash-strapped municipalities need help in updating and operating their aging waterworks, and deep-pocketed companies like Aqua America are offering their services. Most of the pipes and other infrastructure in this country are in dire need of replacement, requiring an investment of around $500 billion from 2000 through 2019, according to Environmental Protection Agency (EPA) estimates….

Posted by Info Center at 10:32 AM in Water & Sewer | Permalink

Source: Pete Millard, Milwaukee Business Journal (WI) (subscription req.), March 19, 2007 Monday

A committee of the Milwaukee Metropolitan Sewerage District board has overturned a staff recommendation to consider only two of the three national companies vying for the right to win the lucrative MMSD operations and management contract this fall. The MMSD staff recommended only seeking proposals from United Water Services Milwaukee L.L.C. and Veolia Water North America, Houston. The decision was based on the criteria established in the request for qualifications process, said Kevin Shafer, MMSD's executive director.

…… As part of its bid, EMC is forming a partnership with AFSCME Milwaukee District Council 48 that includes a proposal to return rank-and-file MMSD workers to the district-employee ranks like they were 10 years ago. United Water and Veolia propose keeping the employees under private, not public management.

Posted by Info Center at 10:32 AM in Water & Sewer | Permalink

Source: Earl Morgan, Jersey Journal (NJ), Tuesday, March 06, 2007

...... Meanwhile, United Water won the contract to run the system and problems cropped up almost immediately. Homeowners complained to The Jersey Journal about excessive billing, such as the retired school teacher who was twice hit with $9,000 water bills for just one quarter. Surprise surprise, it turns out she didn't use a lake's worth of water over those few months, but rather it was a billing error. It wasn't the only one, either.

It remains to be seen if United Water will win the next contract or if another firm will get the job. But there have been suggestions from some city officials that restoring the Jersey City Water Department might be the best solution. At least it would mean no longer paying $20 million a year to United Water.

Posted by Info Center at 11:16 AM in Water & Sewer | Permalink

Source: By EDWARD SIEGER, The Express-Times (PA), Tuesday, February 06, 207

EASTON | Weeks after relinquishing control of its water operations, Easton is planning to bring management of its sewer plant back under city control. Public Services Director David Hopkins asked city council to consider hiring four new employees and ending a contract with Miller Environmental. Despite adding new employees, Hopkins said the proposal should save Easton at least $90,000 a year.

…… Miller Environmental will remove a no-competition clause from the transition contract allowing Miller employees to apply for the new positions, Hopkins said. A secretary will be the only new union position and can be bid for by members of AFSCME Local 447.

Posted by Info Center at 10:54 AM in Publicization | Water & Sewer | Permalink

Source: By Rachael Jackson, The News Journal (DE), January 30, 2007

WILMINGTON, Del. — The Milton Town Council violated the Freedom of Information Act during its effort to privatize the town's wastewater treatment system and enter into contract negotiations with a utility provider, the Attorney General's Office concluded. The ruling means the council will have to vote again on two measures that led to the privatization.

Posted by Info Center at 11:32 AM in Water & Sewer | Permalink

Source: Emad Mekay, Inter Press Service News Agency, December 14, 2006

MAHALA EL-KOBRA, Egypt, (IPS) - More than 20,000 Egyptian textile workers have scored a rare win over plans to privatise their publicly-owned company, with a massive strike that forced the company's management and the pro-free market government to back down. Union leaders say the triumph has breathed life into the country's ailing labour movement, weakened by repeated hits from the government of President Hosni Mubarak. The last strike in this city was in 1988.

Posted by Info Center at 10:53 AM in Water & Sewer | Permalink

Source: By Tracy Jordan, The Morning Call (PA), December 5, 2006

Easton Mayor Phil Mitman has promoted the lease of the city's water system as a way to generate a minimum $2million in annual revenues and eliminate the need to borrow $20 million for a water plant upgrade. But a closer look at the arrangement with Easton Suburban Water Authority whittles down those numbers significantly. …….. Skeptics of the plan, mostly city employees who don't want to see the labor union downsized, criticize the lease agreement as an easy solution to balance the budget and question whether the city has considered all the consequences. ''It's like the city is pushing this through without looking at other alternatives,'' said Missy Corrado, president of American Federation of State, County and Municipal Employees Local 447. ''We don't believe that the city will receive all that money they are talking about.''

Posted by Info Center at 2:59 PM in Asset Sale/Lease | Water & Sewer | Permalink

Source: By MARK McDONALD, Philadelphia News (PA), Thu, Nov. 30, 2006

Drive across the Platt Bridge and you can smell the problem issuing from the tons and tons of composting sewage sludge at the city's Biosolids Recycling Center. To solve its odor problem and to save money, arguably millions of dollars over a 20-year time frame, the Street administration is proposing the biggest privatization of a city function in a decade. …… But AFSCME District Council 33, which represents the city employees, has engaged in a vigorous lobbying campaign against the outsourcing plan. The Street administration had hoped to have Synagro in place by July 1, but instead the union has kept the package of bills bottled up in City Council.

Posted by Info Center at 2:22 PM in Water & Sewer | Permalink

Source: By KAREN RICHARDSON, Wall Street Journal (subscription req.), October 21, 2006

........ Using his knowledge as a public official, he helped companies bid for municipal contracts. Two big-name clients were M.R. Beal & Co., a minority-owned New York investment bank, and Waste Management Inc., a giant garbage-hauling company based in Houston.

Municipal contracting has expanded rapidly in recent years as cities turned to private companies to provide basic services. Last year municipalities issued $408 billion in bonds to pay for filling potholes, laying sewers, wiring street lights and picking up trash -- nearly double the sum of a decade earlier. It is a business notorious for corruption, in part because of the clubby nature of city governments.

Posted by Info Center at 11:33 AM in Transportation | Waste Management | Water & Sewer | Permalink

Source: By EVAN McLAUGHLIN, Voice of San Diego, October 19, 2006

For a clue of how Mayor Jerry Sanders' proposal to allow private businesses to compete for city jobs might work, look to Indianapolis. About 2,000 miles away and with a population about half the size of San Diego, Indianapolis is being held up as a shining example of why voters should -- or shouldn't -- vote for Proposition C in the Nov. 7.

...... Indianapolis now contracts out its information technology, golf courses, wastewater treatment, some of its trash collection and snow-plowing services, and its airport operations.

In addition, some city employees in the heartland city beat out their private-sector competitors when it came time to put the services to bid, downsizing their own operations in the process.

Posted by Info Center at 11:12 AM in Information Technology | Parks & Recreation | Waste Management | Water & Sewer | Permalink

Source: MidHudsonNews.com (NY), Oct 14-15, 2006

Middletown – As the city works through the early stages of building a new water treatment plant at a cost of roughly $15 million, one alderman Friday called for the city to sell all of its water assets.

Alderman Raymond DePew said Middletown could make hundreds of millions of dollars if it sold everything – its reservoirs, water treatment plant, pipes – to a private company to operate.

Posted by Info Center at 10:00 AM in Asset Sale/Lease | Water & Sewer | Permalink

Source: BY JOHN WISELY, Detroit FREE PRESS (MI), October 13, 2006

After decades of squabbling between Detroit and its suburbs over water rates, a court-appointed lawyer has been looking into a possible solution that is sure to stir controversy: the prospect of the city selling off the third-largest water system in the country. …… No formal recommendations are expected until spring. But any talk of selling off the system, privatizing it or putting it under the control of a regional authority is certain to generate heated debate.

Posted by Info Center at 11:51 AM in Water & Sewer | Permalink

Source: By EDWARD SIEGER, The Express-Times (PA), Wednesday, October 11, 206

EASTON | The city will settle a lawsuit with its former water plant operator over disputed fees because the city for eight years never challenged those costs, according to the city solicitor. City council is expected to approve a settlement tonight with United Water Contract Services LLC that pays the firm $171,250.

...... Public Works Director David Hopkins said the city argued it did not owe United Water as much as the company claimed. While United sought payment for overages, it did not credit the city for expenses that came in under budget, he said.

Posted by Info Center at 3:12 PM in Water & Sewer | Permalink

Source: By William J. Ford, The Morning Call (PA), August 23, 2006

Raymond Kline of Easton isn't convinced a lease proposal between the city and Easton Suburban Water Authority would decrease water rates. …… Before the hearing, three members of the American Federation of State, County and Municipal Employees Local 447 stood outside City Hall, holding signs and handing out cards that read, ''No to water privatization.''

Posted by Info Center at 2:07 PM in Water & Sewer | Permalink

Source: Michael P. Fleck, Morning Call (PA), August 7, 2006

"Privatization has not worked for Easton. Privatization has not worked for most municipalities in Pennsylvania.''

There is an old expression, ''If it sounds too good to be true, it probably is.'' Currently, Easton is considering a 25-year lease of the city-owned water plant to Easton Suburban Water Authority. On the surface this looks like a great idea. The city gets a short term cash infusion, residents save on rates, and a private water expert is running the plant. But, doesn't this sound all too familiar?

It was a little over a decade ago that Easton residents were told how great private garbage collection was going to be. The city would receive a cash infusion, the residents would save money, and a private hauler would do a much better job. City leaders, at that time, sold off trucks and spent the proceeds. Now, that we do not have any trucks and the collection company has us over the barrel, or in this case over the dump truck, rates could go up as much as 300 percent. This is one example of city privatization gone poorly.

Posted by Info Center at 11:03 AM in Asset Sale/Lease | Waste Management | Water & Sewer | Permalink

Source: By Mike Hudson, Special to The Los Angeles Times, May 29, 2006

INDIANAPOLIS — In recent years, cities across the U.S. have turned over a vital public service — providing safe drinking water — to private enterprise. Driving the trend was the idea that for-profit companies, mainly European conglomerates, could operate water and sewer systems efficiently, keeping water quality high and costs low. In some places, private-sector management helped trim bureaucracies and replace decaying infrastructure, local officials say. But in Indianapolis, New Orleans, Atlanta and other cities, privatization has been accompanied by corruption scandals, environmental violations and a torrent of customer complaints.

Posted by Info Center at 11:17 AM in Horror Stories | Water & Sewer | Permalink

Source: By MARIE ROHDE, Journal Sentinel (WI), May 9, 2006

Although Milwaukee Metropolitan Sewerage District officials blamed contractors Monday for the accidental dumping of 822,000 gallons of partially treated sewage during dry weather in March, the commission that oversees the district is not satisfied and will meet in closed session to determine if the district staff should be reprimanded. The contractors - Staff Electric and Ruekert & Mielke, a Pewaukee engineering firm - received letters of reprimand for the dumping March 29. The contractors would have to pay any fines if the state Department of Natural Resources decides to take legal action, officials said.

........John Cheslik, the general manager for United Water Service, the private firm that operates the sewage system, and John Jankowski, the MMSD official who oversees the private firm's compliance to its contract, had told the commission earlier that the incidents were the result of malfunctioning equipment.

Posted by Info Center at 9:40 AM in Water & Sewer | Permalink

Source: BY MOLLY BLOOM AND MIKE KARSNAK, Star-Ledger (NJ), Wednesday, May 03, 2006

Faced with rising fees for sewage treatment, the Rahway Valley Sewerage Authority, which provides wastewater treatment for 11 Union and Middlesex county towns, is considering privatizing its operations. Proponents of privatization on the authority's board of commissioners say they are trying to cap rapidly rising costs before the sewerage fees really hurt the taxpayers. But some commissioners fear that privatization will lead to even higher sewerage rates as well as a lack of attention to maintenance, environmental and safety concerns. ..... In a typical privatization arrangement, an agency or town retains ownership of the water or sewerage system and signs a contract to cover the operation and maintenance of its distribution pipes and possibly its billing system. The private company takes over the system's day-to-day operations.

Posted by Info Center at 3:40 PM in Water & Sewer | Permalink

Source: By Dave Kucifer, Navasota Examiner & Grimes County Review (TX), Wednesday, April 12, 2006

The Navasota City Council voted Monday to begin legal action against Johnson Controls to recover funds the city says it is due. Basis of the action is the non-compliance with the terms of a contract signed in April 2003. The City agreed to the installation of new water meters, which Johnson Controls representatives said would improve the accuracy of meter readings and would generate more water and sewer revenue. “The city has met with Johnson Controls representatives a number of times in the past year but have not been able to reach an agreement. We know there are tens of thousands of dollars involved, but have no idea just how much,” city manager Brad Stafford said. Stafford did not go into details because of pending litigation.

Posted by Info Center at 11:19 AM in Horror Stories | Water & Sewer | Permalink

Source: by Jenna Portnoy, City Paper (Philadelphia), March 30, 2006

…… While the city boasts that outsourcing would save millions, quell environmental concerns and eliminate noxious odors, employees counter that it would cost taxpayers more money, hurt the environment and address a harmless odor. Most of plant's 100 workers would also have to learn new jobs somewhere else within the city, but "it's not just about our jobs," says one of several longtime employees who did not want their names printed for fear of retribution. "It's about a waste of millions and millions of taxpayer dollars." ….. Underlying this debate is workers' concern that they have been excluded from plans. In a February letter to Councilwoman Jannie Blackwell, Andrew Bond, the AFSCME District Council 33 agent who represents most BRC employees, declared, "We are confident that there are viable alternatives that will help the Philadelphia Water Department reach its goals of cost and odor control."

Posted by Info Center at 11:36 AM in Water & Sewer | Permalink

Source: By Monte Reel, Washington Post, Monday, March 27, 2006

....... Like many of their neighbors in this working-class suburb of Buenos Aires, the Grossis are convinced that their water is contaminated -- and they now use bottled water to make soup and tea. They blame the problem on the French company that has provided water and sewer service since the federal government privatized the utility in 1993. Across Latin America, a growing number of people say the privatization of public services, a movement that swept the region in the 1980s and 1990s, has failed. Protests have erupted over the issue in several countries, and some governments are beginning to reverse these policies. Last week Argentina announced it was rescinding its 30-year contract with the French company Suez and reinstating government control of the water supply.

Posted by Info Center at 9:50 AM in Water & Sewer | Permalink

Source: By MARK McDONALD, Philadelphia News (PA), Mon, Feb. 27, 2006

Responding to changes in technology and warnings that the city is violating its own air-quality laws, the Street administration is proposing to privatize the water department's biosolids recycling center in southwest Philadelphia. If Street convinces City Council to approve the contracts, the privatization will be the city's first major outsourcing in a decade. The city wants to sign a long-term agreement with Synagro, a Houston-based company that operates in 23 states, to build a $66 million plant on the city's current biosolids operation on Penrose Avenue near the airport. For the roughly 100 city employees who treat and compost the sludge into a dry substance that is either landfilled or turned into a compost known as "EarthMate," the city will offer jobs elsewhere in the government. Or, they can apply for jobs with the company. ...... But Herman "Pete" Matthews, president of AFSCME District Council 33, said he will ask City Council to hold the proposed contracts until the union can mount its own counter-offer. The bills were introduced Feb. 16 by Majority Leader Jannie Blackwell on behalf of the administration.

Posted by Info Center at 1:58 PM in Water & Sewer | Permalink

Source: Terence J. Downing, ENTERPRISE (MA), Jan 24, 2006

TAUNTON — The city is planning to privatize its sewer system by hiring a company to operate and maintain nearly 100 miles of sewer mains and 2,050 manholes. Mayor Robert G. Nunes said the city does not have the manpower or resources to maintain the troubled system and the state has recommended privatization. The move toward privatization is necessary for the city to comply with a Department of Environmental Protection's order that the city repair, upgrade and maintain its aging and leaking system.

Posted by Info Center at 1:06 PM in Water & Sewer | Permalink