Atlanta City Council to vote on settlement with United Water

Council President Cathy Woolard, while admitting the buyout is a risk, proclaimed it was a good decision for Atlanta. She said she expected the council’s approval based on the council’s complaints about the water department when it was run by United Water Services Unlimited Atlanta.

City residents, Woolard said, should have confidence in the Franklin administration’s ability to achieve change without major problems.

“They did as good a job on the plan as anything I’ve seen in my six years at City Hall,” Woolard said.

Legislation will be needed to create the water department and the 346 positions Mayor Shirley Franklin wants. There’s also last week’s proposed settlement of legal issues between United Water and the city. The bylaw only becomes official after council approval.

“The new department has 346 positions,” said Greg Giornelli, policy director for Mayor Shirley Franklin. “It doesn’t happen overnight. We need to get on with it immediately.

The city of Atlanta and United Water agreed to part ways Friday. This agreement prevented the city from terminating the contract. City officials hope to have full control of the water system by mid-June.

Giornelli, City Attorney Linda DiSantis, Watershed Management Commissioner Jack Ravan and others met this week to develop a transition plan.

City officials still need to resolve issues such as how much to pay United Water and the timeline for transferring tasks to the new city department. City officials also need to hire consultants and others to help Atlanta through the transition.

The settlement submitted to the board nets Atlanta $5 million and resolves both parties’ claims. City officials had claimed that United Water owed the city more than $23 million for fees it failed to collect. And United Water wanted to be paid at least $40 million for work done beyond the scope of the contract.

In June of last year, after six months as mayor, Franklin cited United Water for failing to honor its contract with the city.

THE ATLANTA WATER SYSTEM AT A GLANCE

The city water department will ensure:

>2,500 miles of water mains

> 149,000 water meters

> 25,000 fire hydrants

> Serving more than 1.5 million people over an area of ​​650 square miles.

WATER SYSTEM FACTS

> First pipes installed by Atlanta Canal and Water Works in 1875.

> On average, Atlantans consume 125.54 million gallons per day

>The only source of raw water is the Chattahoochee River.

Source: Department of Watershed Management

PRICES COMPARISON

System: 1992 rate, 2002 rate

Washington: $15.06, $26.79

Atlanta: $22.88, $26.25

Louisville: $17.22, $23.31

Cincinnati: $16.37, $21.04

Dallas: $15.05, $20.14

Miami: $13.43, $18.29

Charlotte: $13.65, $17.30

Memphis: $9.87, $13.50

National average: $18.51, $25.05

*Figures for customers who use 1,500 cubic feet, or 11,220 gallons, of water per month. Figures are approximate. Figures do not include wastewater flow.

Source: Raftelis Financial Consulting, American Water Works Association