A thorough analysis by Hollister officials of firms competing to
handle the city’s wastewater plant operations has resulted in
savings
– through permanent privatization – of more than $200,000 each
year over the current provider.
A thorough analysis by Hollister officials of firms competing to handle the city’s wastewater plant operations has resulted in savings – through permanent privatization – of more than $200,000 each year over the current provider.
Hollister council members and staff officials have taken laudable steps toward permanently privatizing operations at the wastewater plant. On Monday, they were all but certain to hire Veolia Water for $688,000 annually for at least the next decade, with a cost-of-living-adjustment that should gradually escalate the tab. Since opening the wastewater plant two years ago, Hollister has contracted with HydroScience to oversee day-to-day plant operations for around $900,000 annually.
It is a welcome sign, seeking a more permanent wastewater plant handler from the private sector, and city officials should continue to examine other departments where they can accomplish a similar agreement with businesses to save money.
In the wastewater plant’s case, the city will save significant funds compared with performing the same duties in house. Those personnel costs, if the city employed Hollister workers, would equal about $225,000 more than the estimate from Veolia. Part of it has to do with additional overhead, while it also is related to the city’s need to over-hire in a sense. A private company can merely shift someone into a role when it is temporarily vacant; whereas, the city must have those additional bodies on hand, explained City Manager Clint Quilter.
It underscores the difference between the public and private sector and the ability for larger efficiencies through such partnerships. It also provides an opportunity for a logical next step, to scrutinize where the city can continue on this path toward privatization. Eventually, with the dire state of finances in the city, it might be more of a necessity than an option.
