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PERFORMANCE PROFILE,
Cape Girardeau, Missouri
1: INITIAL OPERATIONS CHALLENGES
1: Initial Operations Challenges
The City of Cape Girardeau did not exercise
control of its public water system, which was owned by
a
large private power utility.- The power utility had elected to offer the water system for sale and rate increases on the order of 35-50% were anticipated if the system were acquired by another private utility company.
- The water system needed major infrastructure improvements, including the prgggojected expansion of an aging surface water treatment plant and the replacement of undersized and deteriorating galvanized water mains.
- Additional rate increases would be necessary to fund major capital requirements.
- Lacking a water department, the City was faced with the complex task of forming a complete new utility, including professional and technical staff, all management and administrative resources, and policies and procedures.
2: Project Background
Following years of on again, off again
discussions, Cape Girardeau entered into earnest negotiation
with Union Electric Company in 1991 with an eye toward acquisition
of the water system serving city residents.
The City asked Alliance to provide the necessary professional, business, and financial expertise needed for contract negotiations, possible formation of a complete new water utility department, and, if successful, management, operations, and maintenance of the new water system.
On June 2, 1992, with Alliance's assistance, the City successfully acquired its water system and began providing municipal water service to its 35,000-plus citizens. Well in advance of the startup, Alliance recruited and trained a complete new water staff to replace the departing Union Electric staff.
Under a cost effective long-term agreement with the City of Cape Girardeau, Alliance provides complete water system operation and maintenance services, including operations of a 7.25 mgd lime softning treatment plant and a 2.8 mgd alluvial groundwater plant, distribution system maintenance, meter reading, and full customer service.
Alliance has also provided substantial assistance to the City and its consulting engineers with the upgrade and expansion of their existing surface water plant to a 7.25 mgd lime softning plant and conversion of the raw water source to alluvial wells. This ambitious improvement program will allow the plant to achieve full compliance with future drinking water regulations and provide higher quality water to City customers.
- Alliance represented the City as a professional, technical, and financial consultant in negotiations with the water system owner, enabling the City to acquire the water system at a substantial discount off of book price.
- Under a contract O&M services agreement, Alliance recruited and trained a completely new staff, and achieved a seamless startup and transition to City ownership and management.
- Alliance assisted City staff with the development of policies, procedures, and business practices necessary for the formation of the new water department.
- In the first year of operation, Alliance reduced operating and maintenance costs to more than 25% below established levels. In the first five years of contract O&M services, Alliance produced operational and capital cost savings of more than $1.75 million.
- Alliance has replaced over 40 miles of corroding two-inch galvanized mains in the City distribution system.
- Despite an aging water plant, Alliance staff has dramatically improved water quality, achieving full compliance with drinking water regulations, and routinely producing finished water at turbidity levels below 0.1 NTU.
- In the "Great Flood" of 1993, the City's raw water intake on the banks of the Mississippi River was inundated and unserviceable. Anticipating the loss, Alliance secured and installed three large diesel powered, portable pumps to temporarily replace the permanent intake with no interruption of service.
- Local media praised the Alliance/Cape Girardeau partnership for "a job well done."
- Water line replacement normally requires extensive excavation and inconvenience for citizens. But Alliance worked hand-in-hand with the public works and engineering departments to accomplish replacement work in conjunction with the CityÕs street overlay program to minimize excavation of resurfaced streets.
- Alliance has worked with the City to institute geographic information system (GIS) mapping and database modeling of the water system. Hydrant locations, pressure and flow data and maintenance records are now easily accessed and more efficiently utilized.