CITY OF HOUSTON, TX
Mayor Bob Lanier 

• Population: 1,700,000
• Service Area Population: 700,000
  

For additional information, contact: Peter Dobrolski Chief Engineer Public Works and Engineering 1801 Main Street, 13th Floor Houston, TX 77002 (713) 754-0807 FAX (713) 754-0525

DESCRIPTION OF PARTNERSHIP ARRANGEMENT

The Southeast Water Purification Plant is a regional facility which serves 13 cities, utility districts or water authorities in the Houston area. The City of Houston is the managing partner. Prior to its initial start-up in 1991, the City and its partners sought proposals from private firms for the operation and maintenance of the facility. A five year operating contract (through August, 1996) was awarded. The City initiated a "managed competition" program in 1996, soliciting competitive sealed bids from pre-qualified private firms. In addition to the private bidders, City of Houston employees, for the first time, participated in a competitive sealed bid process. The winning proposer was JMM Operational Services, Inc. The City employees' bid was fourth and the previous operator's bid was third.

ESTIMATED/ACTUAL COST SAVINGS -- IMPACT ON RATES

The result of this managed competition program was a savings of 43 percent, approximately $12.7 million, over the previous contract.