Council may vote Monday to hire company to run Water Department
by DAVID ATCHISON
Sep 12, 2009 | 1523 views | 7 7 comments | 18 18 recommendations | email to a friend | print
A private company could take over the operations of the Pell City Water Department after Monday night.
A private company could take over the operations of the Pell City Water Department after Monday night.
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PELL CITY — The City Council could vote Monday night to hire a company to take over and run the city’s Water Department at a cost of more than a half million dollars a year.

“We are not talking about selling our water system,” Councilman Donnie Todd said. “We’re talking about someone working for us. We will have complete control of our water system.”

Mayor Bill Hereford said city officials talked to four companies about managing the city’s Water Department and received three proposals.

“We looked pretty hard at all three companies,” Hereford said. “We looked harder at ClearWater Solutions.”

The council is expected to hire ClearWater Solutions of Opelika at its Monday meeting, which starts at 6 p.m.

Councilman Greg Gossett said there was no public discussion on the matter, with the exception of the limited discussion at Thursday’s work session.

No details of what the company was responsible for or how much it would cost the city was disclosed at the work session.

Gossett said Friday the city will pay the company about $53,000 a month to take over the operation of the Water Department.

Hereford said the council is holding a public hearing to hear from residents about the possible management of the city’s water system by a private company. The public hearing is slated prior to Monday night’s council meeting and will start at 5 p.m.

“How much public discussion can you have 1 hour before you’re going to vote on it,” Gossett said. “I think you need several town meetings to discuss this thoroughly. It’s the taxpayers who are paying this bill, not us.”

Hereford said the public is invited and encouraged to attend the public hearing, and residents will have the opportunity to voice any concerns about having a private company operate a city department.

The mayor and some council members said the company could save the city as much as $200,000 a year.

At Thursday’s work session, Gossett said he had a problem with a private company using public facilities and equipment.

“That bothers me,” he said.

Gossett also questions how the city could save $200,000, when it will have to pay the company more than $600,000 a year to manage the Water Department.

Gossett said the company will get paid $53,000 a month whether the company does anything or not.

“There’s no incentive for them to do anything special to make the Water Department better,” he said.

However, it appeared at Thursday’s work session that most council members were in favor of a private company taking over the troubled Water Department.

“I think they can increase our revenues,” Councilwoman Dot Wood said. “We have problems, but I believe good management will solve it.”

Councilman Donnie Guinn agreed.

“If we aren’t getting it done with what we have then it’s time to look elsewhere,” Guinn said.

Todd said the 14 employees currently working for the city’s Water Department would not have a job with the city but could end up working for ClearWater Solutions.

The mayor would not receive any more pay for managing the Water Department, as well, Todd said.

“The employees are aware of what’s going on,” he said.

Todd said Friday the company is charging $53,000 to run the Water Department, but it currently costs the city more than $60,000 in operating expenses each month.

“We can’t get it right,” Todd said. “This has to be a stand-alone revenue for the city. We have to quit supplementing the utility fund from the general fund.”

Hereford said he checked with entities that ClearWater Solutions has worked for, and in all three cases the company received great reviews.

“The Alabama Department of Corrections is very happy with ClearWater,” Hereford said.

He said the company appeared to work well with employees who were already in place.

“We want to come in and work with you,” said Rick Ailiff, president of ClearWater Solutions.

Todd said water rates will not increase with ClearWater Solutions taking over the operation of the Water Department.

Comments
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confederate american
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September 16, 2009
Get rid of the council and let the mayor hire a manager to run it like a business. Will save a lot more in the long run. Government always cost more than the free enterprise system both in freedoms and money due to the theft from those who have to give to those who refuse to work, etc.
pell city_zen
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September 16, 2009
I agree 100% with Dale Spradley. The water system owned by the city requires people who can come at anytime of the day or night to fix leaks. The city employees have always been prompt, on target, and arrived within a couple of hours to reapair the leaking main.

And Pell City has so many leaking mains from past installations of PVC as the source.

For the record, Electronics mud water = failure. The radio meters are a piece of crap!

The mayor and council are on the wrong side of this issue.
Dale Spradley
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September 15, 2009
Citizens of Pell City, open your eyes!! I was Utility Manager for the city for ten years. I worked in the utility construction field for more than thirty years. Clear Water Solutions cannot operate the water dept for $53,000 per month and make a profit. NO WAY!! Get ready for your water rates to double. You will be without watel for long periods of time because this company cannot afford to pay the overtime that is required to keep wour water flowing. Their employees will not be paid as well nor have the benefit package the city offers. Less incentive to perform to a high standard. The Mayor ,Todd, Wood and Guinn admit they cannot manage and perform as councilmen are elected to do. Why don't they step down and allow qualified people to take their seats? Why is the water dept. loosing money? RADIO READ METERS! This is one of the main reasons.They did not work right from the first day they were installed and have gone down hill to this day and will continue to do so. From the time I satrted as manager we replaced all of the old out dated meters with new manual read meters.This increased revenues greatly.I was not for the new meters nor was my staff. Electronics,water and mud does not work well together. The past Mayor Robinson and mr Todd were the leaders in getting the council to purchase the new meters.At a cost of over $4,000,000.00. Over $200,000.00 worth of excellent performing water meters were taken out of service pilled up at the city shop and sold for a few hundred dollars as salvage. Now the city is stuck with this,PIG IN THE POKE. I could go on and on with this type of management by past Mayors and Councils.If the Mayor and Council truely wan't to correct the problem ,drop the requirement that the utility manager must have a four year degree. The president of Clear Water Solutions does not have a four year degree. Appoint a knowledgeable Manager, appoint a five member water board and most of all the mayor and council needs to keep their noses out of the utility department.If you do not beleve me, just look where it is today! If the City council truely wan't to correct the problens at this department,they only need to look at the Senior Citizens building. Lisa Stewart knows this department inside and out and has a proven track record in this field. She has over sixteen years experience in this department.Mayor and Council, do the right thing for the citizens of Pell City.
pell city watchdog
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September 14, 2009
I like Donnie Guin's quote: "if we aren't getting it done with what we have then it's time to look elsewhere." Well it is time the citizens of Pell City look elsewhere for elected officials who can get the job done!
pell city watchdog
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September 14, 2009
Is ClearWater going to assume the utility debt? Costs to operate the water department are not going down because the city has borrowed too much money and debt payments are doubling and tripling in the next few years. So get ready for higher water and sewer rates!!! I heard this private company was going to use city equipment and property to conduct its businss. Not legal. Is this company responsible for buyng all materials and supplies or is the city buying these and giving them to ClearWater? If so, how can the city be sure that ClearWater is using the supplies for Pell City and not one of their other clients? I bet there is no current inventory of the supplies in that department right now. And... I thought the councilmen and women were elected to be "managers" not hire someone else to be managers. If he and she are not up to the job, maybe they should step aside and let competent individuals assume their position.
Concerned Citizen
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September 14, 2009
Privitizing huh? All they do is consume your resources, let the whole operation fall into dispare. Then when the city has had enough they bail. Is this what we really want. I don't thnk so. Wake up Mr. Mayor and City Council. I've seen this happen before in other small utilities.
Imnotbflat
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September 14, 2009
What is this going to cost the citizens of Pell City..Who will set the rates? Will they go up?



How would you like to be one of the 14 people that might lose their job in this economy..Employer loyality to its workers..LMAO..It may cost the city less by doing this but it's going to cost it's citizens more..

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