Excerpt from:
Public/Private Partnerships in Municipal Water and Wastewater Systems
Case Studies of Selected Cities
The Urban Water Council - A Program of the U.S. Conterence of Mayors

CITY OF HOUSTON, TX

• Mayor Bob Lanier
• Population: 1,700,000
• Service Area Population: 700,000
• For additional information, contact:
  Peter Dobrolski
  Chief Engineer
  Public Works and Engineering
  1801 Main Street, 13th Floor
  Houston, TX 77002
  (713) 754-0807 FAX (713) 754-0525
  

DESCRIPTION OF PARTNERSHIP ARRANGEMENT

The Southeast Water Purification Plant is a regional facility which serves 13 cities, utility districts or water authorities in the Houston area. The City of Houston is the managing partner. Prior to its initial start-up in 1991, the City and its partners sought proposals from private firms for the operation and maintenance of the facility. A five year operating contract (through August, 1996) was awarded. The City initiated a "managed competition" program in 1996, soliciting competitive sealed bids from pre-qualified private firms. In addition to the private bidders, City of Houston employees, for the first time, participated in a competitive sealed bid process. The winning proposer was JMM Operational Services, Inc. The City employees' bid was fourth and the previous operator's bid was third.

ESTIMATED/ACTUAL COST SAVINGS -- IMPACT ON RATES

The result of this managed competition program was a savings of 43 percent, approximately $12.7 million, over the previous contract.

The United States Conference of Mayors

J. Thomas Cochran, Executive Director
1620 Eye Street, NW, Washington, DC 20006
Telephone (202) 293-7330, FAX (202) 293-2352

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