NEWPORT, RI, Oct. 26, 2000 (The Providence Journal)—A multi-year, multi-million dollar proposal to privatize the city's sewer system was to go before the Newport City Council.
It culminates a four-year investigation into the matter. Council members are to vote whether to award Earth Tech, a California company, one of six companies to bid on the project, a contract to operate the Newport Water Pollution Control System.
The contract would run from 2001 through 2020, with a base annual service fee of $2.9 million. Over the life of the contract, the city's operating costs would exceed revenues every year, according to City Manager Michael D. Mallinoff. But Earth Tech's annual costs, which are 17- to 33-percent lower than the city's, would exceed revenues in only two of those years. The result, Mallinoff said, is no expected rate increases under Earth Tech management vs. significant and frequent rate increases under city management.
Overall, this contract will result in guaranteed levels of service for a guaranteed price and saving, with no rate increase, Mallinoff said.
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