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
Copyright © 1996-97, U.S. Conference of Mayors, All rights reserved.
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
In 1995, the City of Sioux City entered into a three year agreement with Wheelabrator EOS (now US Filter/EOS) to operate and maintain the City's 13 MGD wastewater treatment plant and lift stations. The agreement provides for an optional two year extension. Under the agreement EOS is also responsible for the industrial pretreatment program including monitoring fifteen industries with monthly billing. The City will continue to own all system components, retain rate setting authority and retain control and responsibility for capital investments.
ESTIMATED/ACTUAL COST SAVINGS -- IMPACT ON RATES
The three year contract provides for an annual payment to EOS of $2.2 million with a yearly adjustment of 75 percent of the Consumer Price Index. The City realized an annual savings of $600,000 over the previous contract operator. This cost savings resulted in a 14 percent decrease in user rates throughout the City. Operation of the facility has shown to be efficient and has met expectations. Under EOS, service has improved due to the exceptional operations staff.
LABOR RELATIONS
When EOS took over the contract in 1995, jobs were offered to all current employees. However, some employees opted to leave the facility. The current operational staffing level is lower than under the previous contract. Overall staff wages increased slightly with the new contract. EOS staff are members of the Local Union 811, Electrical workers.
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