Town of Phillipsburg, New Jersey

Mayor Harry Wyant

Population: 15,800
Service Area Population: 33,500

City Contact: Mayor Harry Wyant
675 Corliss Avenue
Phillipsburg, New Jersey 08865
(908)-454-5500

DESCRIPTION OF PROFESSIONAL SERVICES AGREEMENT

The Town of Phillipsburg was concerned about escalating operational costs and intermittent odor problems at its wastewater treatment facility. To address these issues they considered professional contract operation and maintenance of the facilities. In April 1995, the Town entered into an operation and maintenance agreement with US Water to manage their 3.5-mgd wastewater treatment plant and associated pump stations. The Town retained responsibility for the sanitary sewer collection system. Ownership of all wastewater facilities remained with the Town. US Water also undertook management of the Industrial Pretreatment Program. US Water assumes the risk of compliance and operational costs. The professional services agreement was tailored to the Town's needs and best interests.

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

Currently the Town is planning an upgrade/expansion of the treatment facility to accommodate growth in the surrounding municipalities served by the plant.

The cost savings from the professional services agreement were passed along to the residents of Phillipsburg in a reduced sewer charge. During the first year of operations, US Water saved the Town almost $550,000. In addition, US Water implemented cost effective operational changes/improvements to mitigate odor problems and virtually eliminated odor complaints.

No concession fees were paid to the Town as part of the professional services agreement.

LABOR RELATIONS

US Water hired six of the existing plant personnel at equal salary packages. The employees who transferred to US Water decided not to remain unionized. The current operation incorporates a staff of five with additional support services in areas of maintenance, laboratory along health and safety from the US Water team.

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