Waste Treatment Plant management contract change of ownership should not impact Lincoln

 

[July 18, 2018] 

LINCOLN 

At The Monday evening voting session of the Lincoln City Council, Waste Treatment Plant Manager Tim Ferguson was asked by Alderman Ron Keller to explain the change of ownership with American Water Company and possible impact on the city’s management contract.

For the last several years American Water has been the firm responsible for the staffing and management of the city’s sewerage treatment plant. On Tuesday, July 10th, Lincoln Daily News ran a press release from the new contract owner Veolia North America.

At the Lincoln Committee of the Whole that evening, constituent Wanda Lee Rohlfs asked why the change of ownership had not been discussed in the council.

Alderwoman Michelle Bauer said that the city knew nothing more than what had been reported in the press release, and that they had learned about the change at the same time as Rohlfs. Bauer said that Waste Treatment Plant Manager Tim Ferguson had said there wouldn’t be any changes in the services to the city. Ferguson was not on hand for that Tuesday meeting, so he was unable to address the change.

This week, at Keller’s prompting, Ferguson shared what he knew about the change of ownership, saying first that there were no anticipated personnel changes as a result of the sale. He will continue to be the manager at the plant, and the support staff that is provided by American Water will now work for Veolia.

Ferguson reviewed the scenario that brought about the change. Ferguson explained that American Water owns some treatment facilities, and for others, they have only service and management agreements.

In reviewing its structure the company had determined that it would eliminate the management contracts and keep only the self-owned treatment facilities. Therefore, they sold their contract agreements to Veolia.

The change in management at the waste treatment facility will have no impact on the service provided to constituents.

Ron Fleshman asked if the change would have an impact on the large sewer upgrade the city is currently working on. Ferguson said it would not. He went on to say that the sewer upgrade Fleshman was referring to, the Long-term Control Plan, was a mandated project by the Environmental Protection Agency and that upgrade must continue, regardless of who is managing the city’s sewer department.

Keller asked Ferguson to give a little bit of history on the management of the treatment facility.

Ferguson explained that this is not the first time the ownership of the service agreement has changed. In the1990’s, the city contracted management of the facility to EMC – Environmental Management Corporation. EMC provided key personnel and management of the facility until 2010 when the contract was sold to American Water.

At one point, the local manager was David Kitzmiller. Under the American Water ownership, Kitzmiller was promoted to a regional position. Ferguson said Monday night that Kitzmiller had left American Water prior to the sale, and at the moment, Ferguson does not know what changes will occur in the upper level management.

Post script: It should be noted that the city has a renewable contract for the management of the waste treatment facility, but owns the sewerage treatment plant and all the equipment utilized at the plant. The city has the option to seek out another service provider if it so chooses at the end of the current contract.

[Nila Smith]