City of Milwaukee, Wisconsin

Mayor John O. Norquist

Population: 620,000
Service Area Population: 1.2 million

City Contact:
Anne Spray Kinney
Executive Director
Milwaukee Metropolitan Sewerage District
260 West Seeboth St.
Milwaukee, WI 53204
414-225-2088

DESCRIPTION OF PARTNERSHIP ARRANGEMENT

The Milwaukee Metropolitan Sewerage District (MMSD) entered into a 10-year Partnership with United Water Services (UWS) beginning March 1, 1998. The service agreement calls for United Water to operate, maintain and manage two large wastewater treatment plants, with a combined throughput of 392-mgd. The plants serve the City of Milwaukee and 27 other municipalities. United Water is responsible for managing the Milorganite production and other biosolids handling, the sewer interceptor system and deep tunnel storage network, maintenance of specific watercourses, and a 30-Megawatt cogeneration plant. UWS guarantees that the plants will operate to achieve an effluent quality that is more stringent than the permit standards.

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

The District remains responsible for capital improvements. The Partnership is estimated to achieve $140 million in savings over the life of the service agreement. The capital value of the existing facility was estimated between $800 million and $1 billion when the Partnership began. The overall agreement over the 10 years was estimated at $320 million. A first year rate decrease of 16 percent will result from the operating agreement. Rate setting is the responsibility of the Milwaukee Metropolitan Sewerage District.

No concession fees were paid by UWS to the MMSD.

LABOR RELATIONS

All 233 employees at the two plants are employed by United Water Services. Every employee retained by UWS receives equal pay and enhanced benefits and training programs. The employees are represented by one of the following unions: the public employee's union Local 366 of AFSCME—Council 48, and the Milwaukee Building and Construction Trades Council, District 10 of the International Association of Machinists and Aerospace Workers of the AFL-CIO, and the International Union of Operating Engineers—Local 317.

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