City hires group to review sewer, water contracts

By Jessica Soule / The Citizen

Thursday, October 25, 2007 10:22 AM EDT

AUBURN - A review of the water and sewer contracts may help reform the process of accounting for and billing for the services.
The Auburn City Council unanimously agreed to hire Amawalk Consulting Group LLC, to review all the rates, services, meters and agreements.

The New York City-based consultant will look for ways of updating agreements and possibly renegotiating rates.

“I think the idea is to go to the town and say this is the burden we are carrying ... circumstances have changed,” Corporation Counsel John Rossi said.

The city had extended some agreements in the past to towns to promote economic growth or to be a good neighbor but they ended up being at taxpayers' expense, city manager Mark Palesh said. Hopefully, the rate consultant can prevent this, or even turn it around, he said.

A Department of Environmental Conservation provision states customers should pay their fair shares. This may help bring consistency in rates, said Edward Markus, president of Amawalk.

“We'll look at the services (the towns) are receiving as well as the services in the city,” Markus said.

The review is divided into two portions. The first will cost $7,500 and take eight to 10 weeks. Once the analysis is done, stage two can start.

There's not a timeline for the second part because that will depend on the results of the first segment, but it will cost $25,000. Palesh said he plans to apply for a grant to help fund this.

Many city employees will assist the company, which helped keep costs low, Palesh said.

However, the study will have more credibility with towns because it will carry the seal of an impartial consultant, he added. Also, Amawalk will bring equipment and experience that will make the process more effective.

The company aims to “optimize cash flow” from increasing revenue or even decreasing expenses, Markus said.

Workers will identify which properties are connected to utilities but not charged by examining property taxes, sewer records, interviews, site visits and other data to stop the flow of unaccounted for water.

“As things are automated, (people) don't look at the meters as much. We see a larger instance of theft,” Markus said.

In other news:

€ In preparation for getting a permit to build a fourth cell onto the landfill, the council voted to put out to bid construction contracts.

The city is waiting to get final approval from the Department of Environmental Conservation before it can proceed with the installation of the cell.

“We feel strongly that we'll have the permit, but we're running out of air space,” Palesh said.

Staff writer Jessica Soule can be reached at 253-5311, ext. 267 or

jessica.soule@lee.net

The Citizens' Say

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There are 1 comment(s)

I live here wrote on Oct 25, 2007 7:05 PM:

" Thank god for this one! Thank you Mr. Palesh for pushing this consultant vote forward. There is a serious problem if city residents are paying sewer fees of $4.78/100cf as compared to $1.35/100cf these surrounding towns and villages now pay. A huge differntial. The other services by contract should find unmetered properties and other locations getting water without paying a dime. Sure glad the Council and Mayor saw fit to approve this contract. It's about time someone did something about the lost revenue. I would welcome any reduction in my fees as well as increased service levels for infrastructure maintenance and reserves going forward. Thank you "

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