City of Danville, Virginia

Mayor Ruby B. Archie

Population: 53,472
Service Area Population: 53,472

City Contact:
Fred Horne
General Manager
Department of Utilities, City of Danville
1040 Monument St.
Danville, VA 24541
804-797-8963

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.

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