In order to develop a healthy local economy, San Benito County
needs to enter into a series of public-private partnerships that
will address critical infrastructure needs such as improved roads,
functional water and wastewater treatment and conveyance systems
and to educate the present and future workforce who will compete
for higher skilled and better paying jobs.
In order to develop a healthy local economy, San Benito County needs to enter into a series of public-private partnerships that will address critical infrastructure needs such as improved roads, functional water and wastewater treatment and conveyance systems and to educate the present and future workforce who will compete for higher skilled and better paying jobs.
With the advent of the new Gavilan College campus in Hollister, higher education is within reach of everyone in the community. But even with a new college and educated work force, the county still needs to develop roads and water systems that will attract new businesses and industries to create new jobs.
At this point, I will put in a plug for the private water utility industry within which I am employed. Private water companies, like other private utilities such as Pacific Gas and Electric, provide water and wastewater service to communities throughout the nation and the world. In most cases, these communities lack the capital and expertise to operate water/wastewater systems as a public utility. Cities like San Jose, Salinas, Bakersfield, Stockton and many others throughout California rely on private water companies to provide tap water service to its citizens. In Gilroy, the Santa Clara County Water District partners with a private wastewater firm to operate the South County sewer treatment plant. So, why not here in San Benito County?
Well, in the past the county, Hollister and San Juan Bautista have contracted with a private firm to operate water and wastewater systems. Unfortunately, the private contractor operating the Hollister sewer treatment plant was cited as partially responsible for the 15 million gallon treated sewage spill into the San Benito River that triggered the building moratorium imposed by the State Water Resources Control Board.
But there are other arrangements that allow private companies with access to large amounts of capital and technical expertise to invest in water systems and recover the investment over the life of a lease agreement, typically 20 to 30 years. In this scenario, money is invested up front with payments made to the municipal partner for contracting out the operation and the lessee assumes responsibility for the system. In addition, franchise fees are paid annually to the municipality as part of the agreement. Increasingly, cities that are cash poor and unable to invest into capital improvement programs to meet water quality standards and improve wastewater treatment plants are turning to the private water industry sector for solutions to infrastructure problems.
The Hollister City Council would be well served in exploring contractual agreements with private companies that could expedite the finance and operation of its wastewater treatment plant. Because once the wastewater plant is online, the city can petition for relief of the building moratorium that has devastated the local economy. Other agencies and special districts throughout the county could piggyback with that private firm to provide water treatment and wastewater treatment operations. Costs to provide these services are driven down through economies of scale and consolidation of resources.
As part of my research on local job creation, I ventured upon the 2003 Tri-County Community Asset Investment Portfolio Final Report for San Benito County prepared by Social Policy Research Associates (www.sbcjobs.org/pdf/SB_Portfolio_Final_Report.pdf) The report, though needlessly redundant, underscores the need for a better educated workforce, vocational skills training programs and improved public transportation.
The future looks bright for San Benito County. But our leaders need to work together to make bold moves to improve our infrastructure, build the new college campus and attract new businesses that will improve the local economy. These are the steps that must be taken to provide economic opportunity for future generations and improve the foundation of our society.
Mike Smith lives in Hollister, and is interested in public policy, music and the arts. He works in the water utility industry in Salinas.
