Monday, November 15, 1999
Ideas flow for water system
Newport trying to cut costs, raise revenue
BY TERRY FLYNN
The Cincinnati Enquirer
NEWPORT — A five-year master plan for the city's water system to try to reduce costs and increase revenues will be considered for the first time by city commissioners tonight.
Voters on Nov. 2 turned down a bid from the Northern Kentucky Water Service District, recommended by the city administration, to buy the system for $16 million.
In the wake of that mandate from residents to retain control of the system, City Manager Phil Ciafardini wants to draw up a five-year master plan and have it in place by the end of January.
“I expect a lot of healthy, lively discussion from the commissioners and the mayor on this issue,” Mr. Ciafardini said. “We need to map our strategy for the water system through 2005, and we can't afford to wait.”
In a memo to Frank Peluso, the city clerk and waterworks director, Mr. Ciafardini said he wanted to look at areas where the city can reduce the water works budget, including:
• Optimum staffing levels for administrative, production and distribution.
• Estimates of how the new Acti-flow treatment system, scheduled to go on line soon, will affect operation costs. It is thought that the system, considered the most up-to-date in the country, will reduce overall operating costs.
• A detailed listing of capital improvements for fiscal year 2000, including replacement of meters and mains, an update of fire hydrant flows, and mandatory improvements required by federal or state regulations.
• Revenue alternatives to increase water sales, such as water haulers and bottled water, as well as other wholesale water opportunities.
• Negotiation of a new wholesale water rate, which must be approved by the state Public Service Commission, and then possible retail rate increases which would be considered by the city commission.
Mayor Tom Guidugli said he thinks there is a need to assemble a committee of people from across the city to discuss the water system issues and offer some ideas.
“I think we should talk to the people who showed the most interest when we held the public meetings prior to the vote,” he said. “I think this could help our residents understand what will come from the board in the future regarding the water system.”
Mr. Guidugli said he thought there would almost certainly be infrastructure changes for the water system, including repairs and improvements in the distribution system and the treatment plant.
Commissioner Jerry Peluso, who opposed the sale of the water system, said the two primary issues he thinks commissioners must consider are operations costs and creative ways to increase revenues.
“We can't just come out and say our rates are going up 40-60 percent,” he said. “In looking at capital improvements, the board must discuss and put in order the things that need to be done now. Some items may be spread out over several years.”
Figures released prior to the election showed that the average daily amount of water treated by the system had dropped 42 percent since 1990. In the same period, average daily wholesale sales fell 52 percent, retail sales dropped 26 percent, operating costs went up 20 percent, and retail water rates rose 63 percent.
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