City of Camden, New Jersey

Mayor Milton Milan

Population: 84,844
Service Area Population: Water 55,000
Wastewater 84,844

City Contact:
Preston Taylor, Business Administrator
City Hall, 520 Market Street
Camden, New Jersey 08101
856-757-7150

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 — 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.

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