Sunday, January 10 2010
The city of Evansville says controlling its own water and sewer systems is expected to save approximately $14 million over the next five years. Evansville Water and Sewer Utility will take over the systems from private companies. Mayor Jonathan Weinzapfel says "private management has not fulfilled expectations nor provided the necessary level of industry expertise."
(EVANSVILLE, IN) – Mayor Jonathan Weinzapfel today announced that the Evansville Water and Sewer Utility will take over the operation and management of the City’s water and sewer systems, leading to an estimated savings of approximately $14 million over the next five years compared to current costs under the existing contracts.
“We will be able to better control costs, direct staff more effectively, and put a management team in place that will allow the Utility to run the water and sewer systems more efficiently than a private company,” said Mayor Jonathan Weinzapfel. “It’s the Utility’s experience that private management has not fulfilled expectations nor provided the necessary level of industry expertise. The savings we will realize under City control will go toward operations and capital improvements and allow the Utility to hire and retain expertise required to run a first-rate operation.”
The wastewater system is currently managed by Environmental Management Corporation (EMC) whose contract with the City was initiated in 1992. The drinking water system is managed by American Water.
A Request for Proposals (RFP) was issued in August 2009 as contracts with EMC and American Water neared the end of their terms. A review committee evaluated proposals submitted by EMC, American Water, United Water and Veolia, and decided that the operation and management of the Utility should be brought in-house.
The City will evaluate all positions at the Utility to determine appropriate management staffing levels. Most of the Utility’s front line workers are already City employees and the anticipation is that many of the current managers will be retained.
The Utility Board will formally ratify the decision made by the review committee during its January 12th meeting. The Utility will take over the operation and management in March 2010. American Water, which has purchased EMC, has pledged its cooperation through the transition. Residents should see no disruption in service.
Source: City of Evansville & Inside INdiana Business http://www.insideindianabusiness.com/newsitem.asp?ID=39521