PELL CITY — Mayor Bill Hereford said no decision about hiring a private company to manage the city’s water department was made, but the hiring process is moving forward.

Currently the city received proposals from four private utility companies which want to manage the city’s water department.

Private utility companies to submit proposals/bids include ClearWater Solutions, Artesian Utilities Systems Management, ESG Operations Inc., and SouthWest Water Company.

It appeared SouthWest Water Company submitted the low bid for the job, offering to manage the city’s water department for $50,000 per month without the use of city facilities and equipment, or $55,000 per month with the use of city facilities and equipment.

Apparently the council will not award the contract to the low bidder, but instead narrow the selection down to two companies.

“I’ve picked my two,” Councilwoman Dot Wood said at Wednesday night’s public hearing, which only attracted about 20 people, mostly city employees.

Wood said Wednesday she supported hiring a private company to manage the city’s water department. Hereford and Councilmen Donnie Todd and Donnie Guinn also supported the move of hiring a private company to manage the city’s water department.

“I still have questions that need answers,” Guinn said. “I’m leaning toward doing this.”

He said there are 38 government agencies across the state that have hired private companies to manage their utilities, and all those agencies are making money.

Guinn pointed out money has to come out of the city’s general fund to subsidize the utility department.

However, Councilman Greg Gossett questioned City Clerk Jennifer Brown at last night’s public hearing about the money coming out of the general fund to support the utility department.

Brown said the utility department always pays back the money it borrows from the general fund. It’s money used to pay off bond debt and sometimes interest.

“Me personally, I’ve been against this,” Gossett said, adding that he believes much of the revenue loss in the utility department is from faulty meters.

He also said there were personnel issues in the utility department that need fixing.

“I personally think it can be managed with a person in charge,” Gossett said.

At one point, the council considered hiring a professional manager to run the water department, but the council failed to hire anyone after the interview process.

Todd is the most vocal supporter of hiring a private company to manage the city’s water department.

“I have favored this for some time,” Todd said. “I really wish we didn’t have to do it, but we have come to a crossroad and we owe it to our residents…I am convince anyone of these companies can do it (run the water department) cheaper than we can,” he said.

An official with the national Food &Water Watch, a non-profit consumer advocacy organization in Washington, D.C., said it will cost Pell City by hiring a company to manage the city’s water department.

Jorge Aguilar, Southeast regional organizer for Food & Water Watch, said Tuesday private utility companies will increase rates while implementing cost-cutting measures which may include using shoddy construction materials, deferring maintenance, backlogging service requests and downsizing of the workforce, which affects customer service.

Hereford said the city will maintain control of the rates, and the company the city hires will only manage the water department.

Pell City resident Curtis Capps expressed concerns about the city hiring a private firm to run city business.

He recalled hiring two consultants.

“If I had followed their advice, I would have been bankrupt,” Capps said. “I would hate for us to step into something, and a year from now we find ourselves in worse shape than we were in.”

The local businessman questioned why city officials couldn’t manage the city’s business.

“I don’t know a thing about city government, but if you come down the street, I can teach you to make a pound of sausage,” Capps said. “Let’s make sure we’re getting what we’re asking for.”

Hereford said the council will decide what direction to take at this afternoon’s work session.