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City of Camden, New Jersey Mayor Milton Milan
Population: 84,844 City Contact:
DESCRIPTION
OF PARTNERSHIP ARRANGEMENT
The City of Camden and Camden Water
L.L.C., a US Water company, began a 20-year Partnership agreement on January 30,
1999. While the City will maintain ownership status, the agreement calls for
Camden Water to operate and maintain the City's groundwater supply wells, water
treatment plants and distribution system with combined capacity of 21.5 mgd, and
a wastewater collection system of over 150 miles and 8 pump stations. The
agreement includes rehabilitation of 2 groundwater wells per year, locating
abandoned wells, and managing the water and sewer utility billing and
collection. The City was required by a consent order to privatize their water
systems. ESTIMATED/ACTUAL COST SAVINGS
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Capital Upgrades, Consumer Rates, and
Fees
The City has responsibility for financing and implementing the capital
improvement plan, with planning assistance from Camden Water, who also is
developing a Comprehensive Asset Management Plan for future capital
improvements. Camden Water will implement approximately $900,000 of capital
improvements to the system during the Partnership. The City sets customer water and sewer rates in the Camden Water service
area. Camden Water estimates operational cost savings of over $2 million
annually due to private operation and maintenance. Camden Water's installation
of proprietary software has improved billing accuracy, financial reporting and
utility revenue collections. Camden Water is working with the City to find ways to fund the $20 million
concession fee earmarked for specific system capital improvements. An annual
concession fee of $500,000 will be paid to the City. Camden Water also paid $1.3
million for employee transition, and $600,000 for procurement expense
reimbursement. LABOR RELATIONS Camden Water offered
jobs with comparable or better benefits to all 76 City employees, of which 31
chose to accept the severance package and did not transfer, or decided to take
retirement. Camden County Council #10, a public employee union, represents the
employees. A new labor agreement will be negotiated in 2000, and the current
labor contract will be honored until then. Camden Water agreed to a "no economic
layoff" policy for the term of the Partnership. Employee transition costs of
$1.3 million were funded by Camden Water. |
J. Thomas Cochran, Executive Director
1620 Eye Street, NW, Washington, DC 20006
Telephone (202) 293-7330, FAX (202) 293-2352
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