OF WILMINGTON, DE
DESCRIPTION OF PARTNERSHIP ARRANGEMENT
Originally proposed as a sale transaction, the City of Wilmington is close to executing a long-term contract for the operations, maintenance and improvement of its 90 million gallon per day (MGD) wastewater treatment plant. Under the 20 year agreement, the City will retain ownership of the facility, assess and collect user charges, maintain the collection system and administer and enforce the industrial pretreatment program. The City's private partner, EOS, a US Filter company, will maintain and operate the facility and three pump stations and implement specified capital improvements to the facility (to improve operational efficiencies, comply with applicable law and repair/replace damage to the facility). All improvements to the facility will immediately become property of the City. Facility capacity is currently being expanded to 105 MGD. The City will continue to be responsible for this project.
ESTIMATED/ACTUAL COST SAVINGS -- IMPACT ON RATES
The City will pay a service fee which covers all EOS obligations under the Professional Services Agreement, including capital improvements. Additional costs can only result from City requested expansions of the facility or as the result of unforeseen circumstances (e.g. a change in law). The service fee is expected to provide annual cost savings to the City and other users of the facility (New Castle County contributes approximately 70 percent of the flow to the facility) of approximately three million dollars ($60 million over the contract term). EOS will compensate the City for the "right to access" granted under the Site Access Agreement.
EOS is required to offer employment to all City employees at the facility who satisfy
pre-employment physical and drug screening tests. The total compensation package (ie.
wages plus benefits) must be comparable to current City employees. Benefits can not lapse.
City employees accepting employment may not be dismissed without cause. AFSCME will
maintain its role as bargaining unit for the employees at the facility.
The United States Conference of Mayors
J. Thomas Cochran, Executive Director
Copyright © 1996-97, U.S. Conference of Mayors, All rights reserved.