City of Gary, Indiana

Mayor Scott King

Population: 116,000
Service Area Population: 179,000

City Contact:
Lucy Horton
Executive Director, Gary Sanitary District
3600 W. Third Avenue
Gary, IN 46404
219-944-0595

DESCRIPTION OF PARTNERSHIP ARRANGEMENT

The Gary Sanitation District (GSD) entered into a 10-year contract with White River Environmental Partnership (WREP—a partnership comprising United Water Services, Suez Lyonnaise des Eaux and IWC Resources Corporation) to operate, maintain and manage the 60-mgd wastewater treatment and collection system. WREP also will be responsible for managing the 28 pump stations. The contract term began June 1, 1998. United Water Services took over as operator of the wastewater plant and pumps, and GSD remains responsible for customer service activities.

ESTIMATED/ACTUAL COST SAVINGS— Capital Upgrades, Consumer Rates, and Fees

WREP plans to make $840,000 in capital improvements to the plant. This investment includes installation of new computerized controls, software systems and an energy management system. The Partnership savings over the life of the contract are estimated to be $20 million.

GSD will retain responsibility for setting consumer rates and all policy-making.

WREP agreed to pay the City an up-front $10 million concession fee. The City will commit $5 million from the concession fee toward capital improvements recommended by WREP.

LABOR RELATIONS

All 144 GSD employees were offered jobs with WREP. They were guaranteed benefits and compensation comparable to or better than what the City offered. The employees are represented by AFSCME Local 3491 and have received additional training and career development opportunities.

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