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 Contract for waste treatment plant management with
EMC/American Water
City Administrator Clay Johnson said that there was a proposal for a
four-year contract with Environmental Management Services, a
division of American Water for the management of the waste treatment
facility in the city. The city is currently contracted with EMC and
has been for the past several years.
The firm provides the management and oversight of the waste
treatment facility, the sewer lines within the city, and the various
lift stations throughout the city. The contract pays the salaries of
all the department personnel including waste treatment manager Tim
Ferguson. The contract does not cover the material costs of any
repairs or replacements at the facility or other locations around
town.
Johnson said that the proposed contract for the next four years
would equate to some significant dollar savings for the city. EMC,
he said, was going to drop its fee by a total of $57,000 per year,
from the current $1,358,748 to $1,301,748 annually for the first
two years of the contract. In years three and four, the company
would seek a one-and-one-half percent increase annually. Johnson
said over the four-year period this would save the city a total of
$166,000.
The contract offers administrative assistance to the city street
department. Johnson said this included services such as assisting in
establishing a work order process for the street department and
offering a fleet management system for street department vehicles.
There is also an option in the contract to move the responsibility
of sewerage billing from the city to EMC/American Water, and base
the billing on water consumption instead of the flat rate being
charged now by the city.
The contract also contains an escape for both parties, where the
contract can be terminated by either the city or EMC with a 90-day
notice.
Jonie Tibbs asked confirmation that consumption billing would be
based on water consumption, and was told yes it would. She asked how
long it would take to make the transition to consumption billing.
Johnson and Ferguson agreed that the setup process for the billing
could take six to nine months. In theory, water consumption for a
family of four will be considerably more than that for a family of
two. The monthly water bill would provide the basis for the sewer
fee, with families more than likely paying a larger fee than singles
or couples.
Michelle Bauer asked if the plan to change billing was a part of the
new contract or something that is optional. Johnson said there were
two contract proposals, one with the transition to consumption
billing and one without.
The city is facing a multi-million dollar project that has been
forced upon them by the Illinois Environmental Protection Agency.
Over the next few years, extensive work must be done to control
wastewater and stormwater quality before it enters into public
waterways. The city will have to foot the bill for the mandated work
without assistance from the state. Therefore, the best choice for
paying the bill is going to be through sewerage fees collected.
Bauer said that she felt like, under the circumstances, the aldermen
do need to look at how they can make that money, and that could
involve switching to consumption billing. However, she said she
didn’t want to make that decision quickly; it needed more
investigation and the careful consideration of the Council.
Bauer also posed the question, was this a situation where the city
should review other companies that could offer the services EMC is
offering. She emphasized she was not opposed to EMC providing the
service, she just wanted to know if the city should look at other
providers.
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Marty Neitzel gave an emphatic “no” and Tibbs supported her. Neitzel served as
the sewer department committee chair for several years prior to the elimination
of individual committees. She said that EMC had always been great to work with.
Tibbs said in her 13 years of experience with EMC; she had found their people to
be professional and knowledgeable, and had made the job of city alderman much
easier. She also commented that the EMC managers had always treated the city
leaders with much respect. In her mind, Tibbs said there was no question that
EMC should continue to provide waste treatment management to the city of
Lincoln.
The contract to be voted upon will include the cost reduction and assistance for
the street department, but will not include switching to consumption based
billing.
However, it is expected that the Council will investigate consumption based
billing at a later date.
To retain Blinn Bates, Woods & Bates as city attorney
Johnson said that the contract for the new fiscal year would hold steady at
$84,000, the same dollar amount as in the past year. What is being requested by
the firm is that Bates be required to attend only two city council meetings per
month.
For the 2014-15 fiscal year, Bates had also held his fee at the previous year
amount but had requested that he be required to attend only three meetings per
month.
Johnson said that Bates was needed at the council meetings only to offer legal
guidance on issues that would arise during the council’s discussion. He said
that this does not occur every meeting, so Bates attendance is not necessarily
needed every week. He also noted that if the council had an item on the agenda
that they felt would require Bate’s input, the attorney would attend extra
meetings upon request.
Johnson also reminded the council that the lion share of the work the attorney
does for the city does not take place during council meetings.
There was no discussion on this issue.
Contract with Logan County Animal Control
Johnson said that the Logan County Animal Control is going to hold its fee at
the same level as in the previous year. The contract amount is $40,190.52. He
said there were roughly 300 calls placed last year for animal control services.
At the going rate of $200 per call for those who are not under contract, the
cost of 300 calls would be $60,000. He felt that the contract amount requested
by the agency was fair.
There was no discussion on this issue.
The renewal of these three contracts will be on the voting agenda for Monday,
May 18th.
[Nila Smith] |
