Server: Netscape-Enterprise/2.01 Date: Thu, 18 Dec 1997 22:07:25 GMT Accept-ranges: bytes Last-modified: Thu, 18 Dec 1997 17:14:59 GMT Content-length: 11406 Content-type: text/html United Water: Municipal Info -Indianapolis, IN

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In 1993, United Water Services (formerly JMM Operational Services), Suez Lyonnaise des Eaux and IWC Resources Corp. formed the White River Environmental Partnership (WREP). Following a competitive bid process, the partnership was awarded the contract to operate Indianapolis' two wastewater plants. These facilities process 250 million gallons a day (mgd) of city sewerage and stormwater. Two years later, the partnership won a second contract to operate the wastewater collection system. The Harvard Business Review recently cited the project as a successful example of private industry doing business with government.


Indianapolis had enjoyed relatively low sewer rates, averaging $7.71/monthly for homeowners, and had not increased rates since 1985. However, the aging collection system and necessary plant maintenance items were forcing a potential 33 percent increase in 1993. Savings from the operations and maintenance contract assured the city that a rate increase would not be necessary.

WREP's operation of the city's advanced wastewater treatment plants was projected to save $65 million over the life of the contract, as compared to the city's former annual budget of $30 million. To date, the savings in the first three years are ahead of original projections and total $46 million, roughly 40 percent less cost than former city operations. The second contract for the collection system saved the city $2.6 million for the first year of performance.

In October 1997, the city signed a letter of intent to extend both contracts for an additional 10 years. Savings over the life of the contracts are projected to reach about $250 million.


The WREP/Indianapolis employee transition program has been lauded by the American Federation of State, County and Municipal Employees (AFSCME) as a model of union relations within the public-private partnership framework. In fact, during the first year of the contract, union grievances dropped from 38 to one. AFSCME, WREP and city representatives have been invited to speak on the success of the project at state, national and international forums.

Under the city's management, 322 employees operated the plants. The United Water team interviewed 317 of these, hired 196, and assisted the remaining 126 in finding new employment. The majority were hired by the city into comparable positions. The remainder were placed through a city Safety Net program and an Outplacement Assistance Program.

Current plant employees are cross-trained and developed within the partner companies to cultivate high-quality job performance. To this end, the team established both intensive plant-wide safety programs and the International Center for Training and Development where employees of any of the WREP partner companies can learn more about management issues, technology, and industry developments.


The United Water team actively contributes to the Indianapolis community. Larger government contracts were broken down into smaller components with prompt payments. This allowed smaller local businesses to participate in the new project. More than 20 percent of the Indianapolis project's goods and services have been purchased through women-owned and/or minority-owned businesses. This is nearly twice the target rate of the contract agreement.

The partnership also provides educational and employment opportunities for students at Arlington High School. WREP has also initiated a school-wide career development program. Other community activities include participation with environmental and civic groups such as Friends of the White River, Project Insite, United Way, Indiana Environmental Institute, Indiana Black Expo, Youthlinks, and joint sponsorship of an auto racing team with AFSCME Local 725. Environmentalists and local union leaders, who originally opposed the transition to private management, are now among the project's strongest supporters.

"The taxpayers have clearly won," says Indianapolis Mayor Stephen Goldsmith, who plans to invest the savings into the city's massive infrastructure renewal program. "The water quality has been equivalent or better than we enjoyed historically - and all at 40 percent less than the city was spending before."


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