Strains After Cities Outsource Water Services
Shift Brings Expertise to Aging Systems,
but Complaints Over Service Follow;
'Complex Relationship' in Richmond
http://online.wsj.com/article/SB1000142405274870358090457513233079530936...
By BOBBY WHITE
RICHMOND—Over the last decade, many Bay Area cities have outsourced management of their water or sewer systems to private companies. In some communities, unanticipated strains of that shift are surfacing.
The difficulties, say city leaders, homeowners and environmental groups, are encapsulated here in Richmond. In 2004, this city handed over the management of its wastewater and storm-drain systems to French company Veolia Environnement SA.
The 20-year, $100 million contract was hailed by city leaders as one that would bring advanced treatment techniques and professional management to a nearly 100-year-old sewer system that was falling apart.
But in 2006, Richmond officials accused Veolia of not responding swiftly enough to residential calls over leaks and flooding. City officials also raised questions over how much they were billed for sewer-system damage assessments. In December, Veolia agreed to pay the city roughly $2 million to settle the matter.
