What Happened?
Shaker Heights, Ohio, has decided to outsource its sewer maintenance to Cuyahoga County Public Works, a move that will eliminate four positions and obviate the immediate need for $400,000 in equipment. The cost: $525,000 per year.
Why?
Shaker Heights was already having trouble managing and maintaining its sewers, and was in need of a $400,000 sewer-cleaning Vactor truck. The city will now have 24x7 coverage for its residents, as well as GIS mapping and video imaging within its sewers. Overall, services will increase and costs will decrease.
Implementation
Shaker Heights had already experimented with outsourcing. For example, the Mayor had previously decided to let the city of Cleveland handle its water works, which helped alleviate financial pressures. The sewer outsourcing decision may have been easier. That’s because Cuyahoga County already employed 70 sewer-service workers, had 13 jet trucks, had access to better technology, and had additional tools and service vehicles. So outsourcing not only made economic sense, but it appeared that Cuyahoga could provide better service as well.
To ensure that all services—such as sewer line cleaning, sanitary and storm drain cleaning, and construction of catch basins—are being provided in a suitable manner, the new contract calls for monthly meetings for review by both parties.
Other Examples
The city of Richmond, Calif., outsourced its water and sewer needs to a private company, Veolia, in a 20-year, $100 million contract. A recent Wall Street Journal article details the ups and downs of that public-private partnership.
Bailey, North Carolina, also outsourced its public works operations to Envirolink this past spring. It will pay $204,220 annually for water, sewer and public works operations. It’s current annual budget is $456,000, so savings should be significant. The relationships included operations such as tree and limb pickup, meter reading, water-system flushing, cemetery maintenance, storm-drain cleaning, pot-hole patching, well monitoring, and hydrant flushing. Additional coverage of the Shaker Heights example can be found here.