City to contract for management of sewer, water services

The city of Bethany will make a major change in the way the water and sewer systems are managed when the council finalizes a contract with the Omaha-based People Service to take over maintenance of the system.

The Board of Aldermen Monday night reviewed a proposed contract with People Service Inc., a water and wastewater management company, during Monday night’s board meeting at City Hall.

City Attorney Cristine Stallings suggested a few changes in the contract before it comes up for final approval at the May 18 board meeting.

The contract has been under discussion at previous closed meetings of the city council. The first public discussion came on Monday night in the council chamber packed with city employees.

Chris Gutschow, director of business development for People Service, said all seven current employees of the water and sewer departments will be invited to apply for jobs with the company. Most of those employees in attendance indicated that they favored the change in management.

Gutschow emphasized that the city will maintain ownership of the water and sewer facilities while People Service will provide the manpower to operate the system.

“We won’t own it; we operate it,” Gutschow said.

Will help city in dealing with EPA

City officials said the contract with People Service will allow the city to meet the regulations that the EPA and DNR are imposing on local municipalities.

Kenny Groves, chief operator of the water plant since 1995, said the staff involved in water treatment “has proven themselves time after time.” But, he added, “I think it is inevitable that EPA will push municipalities to go to professional companies” for their expertise in operating systems.

Mayor Patrick Miller added, “We have a great staff, but they (People Service) have the knowledge base of working with other communities.”

Westward Alderman Randy Mann told the employees attending the meeting that the contract with People “isn’t about whether you are doing a good job. It is about doing the best thing for the city.”

People Service was founded 25 years ago and has 150 employees, according to Gutschow. The company presently operates systems in Gallatin, Maryville, Country Club Village and Chariton, Iowa, just to name a few of its clients.

The city council had approved a $1.56 million budget to operate the water and wastewater treatment departments for the current fiscal year, which began on April 1. The city will pay People Service about $600,000 a year to maintain those services.

Miller said the city already had made about $150,000 in budget savings compared to the previous year’s budget. The contract with People will enable the city to realize another $18,000 in savings.

The city already has made drastic reductions in the work force in recent years. The city’s staff has been reduced from 40 to 29 employees in the past five years.

“We have cut as much out of the budget as we possibly can,” Miller said.

City employees moving to People Service are expected to be offered similar wages and benefits. Gutschow said, “Nobody’s pay will go backwards. What we offer is similar.”

Officials say they expect that People will pick up most of the water and sewer department employees. Room would be found in other departments for anyone not offered a job.

Bethany resident Truman Doolittle questioned whether the city will have to pay more for the services in the future. Miller said the current contract terms will be “locked in” for the next 21 months. Any future increases during the five-year life of the contract will be pegged to the consumer price index currently running at 1.7% per annum.

Doolittle expressed concern about the impact of the city’s recent $25-a-meter increase in water rates on elderly residents. This charge will partially pay for the cost of building the new wastewater treatment plant which will meet new EPA standards.

Discussing the costly federal regulations, Doolittle said, “When are we going to say enough?”

Eastward Alderman Todd Williams agreed that the rate increase was “terrible timing for everyone.” The city already had raised electric rates and will be adding a half-cent sales tax for street improvements in the fall.

Miller said the $25 a month charge “is part of the loan document” signed by the city more than two years ago to gain financing for the wastewater treatment plant.

In other business, City Administrator Jan Hagler said a dog vaccination clinic will be held from 5 to 7 p.m. on Friday, May 8, at the Pet Vet Care Clinic on Friday, May 8. The rabies vaccination and city registration will be offered at a discounted price of $16. Microchips also will be available for dogs.

Hagler said the parks department will begin filling the pool for the upcoming swimming season this week.

Casey Guernsey, who is handling economic development for the city, said he plans to join State Senator Dan Hegeman and Representative J. Eggleston in a meeting with MoDOT officials in St. Joseph to discuss local transportation issues. He also said he has been working with two companies that have shown an interest in the community.