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City of Danville, Virginia
Mayor Ruby B. Archie
Population: 53,472 City Contact:
DESCRIPTION
OF PARTNERSHIP ARRANGEMENT The City of Danville entered into a
10-year Partnership agreement with American Anglian Environmental Technologies,
Inc. (an American Water Works Company) to provide full service operation of the
City's 24-mgd wastewater treatment plant and 11 pump stations. The City decided
to explore Public-Private Partnership alternatives in order to improve
efficiencies and achieve cost savings.
ESTIMATED/ACTUAL
COST SAVINGS —
Capital Upgrades, Consumer Rates, and
Fees
The Partnership has made several capital upgrades. A $7.5 million biosolids
processing unit was constructed, reducing biosolids management costs and
enhancing the environment by reducing odors. A complete Preventive Maintenance
Plan featuring a Computerized Maintenance Management Program (MP2 System) was
installed, and through systemic maintenance and repairs it reduces the need for
costly replacement of equipment. Consumer rates will be positively impacted by the Partnership. The capital
improvements, along with American Anglian's ability to negotiate significant
savings in purchases of chemicals and related materials have resulted in over
$807,000 in cost savings for the first year of operation under the Partnership.
The savings were passed on to the consumers by the City in July 1998 when the
City Council eliminated a planned 8.5 percent increase in water and wastewater
rates. No concession fees were paid to the City as part of the Partnership
agreement.
LABOR
RELATIONS The City decided to transition its employees to American Anglian employees.
American Anglian hired all existing plant personnel, meeting, and in some cases
exceeding, salary and benefits offered by the City. The 26 employees are
currently not represented by a union. |
J. Thomas Cochran, Executive Director
1620 Eye Street, NW, Washington, DC 20006
Telephone (202) 293-7330, FAX (202) 293-2352
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