CITY OF NEWARK, NJ
Mayor Sharpe James

  • Population: 275,000
  • Service Area Population: 400,000

For additional information contact: Glenn A. Grant Business Administrator City of Newark 920 Broad Street, Room 205 Newark, NJ 07102 (201) 733-3780 FAX (201) 733-3769

DESCRIPTION OF PARTNERSHIP ARRANGEMENT

The City of Newark manages a drinking water system which includes a 36,000 acre watershed in northwest New Jersey, transmission and distribution systems and a $4.8 million treatment facility completed in 1993. The annual revenue from the operation is $40 million. In March 1993, the City of Newark and Professional Services Group, Inc. (PSG) of Houston, Texas entered into a five year contract for the daily operation, maintenance and management of the City's 80 MGD Pequannock Water Treatment Facility in West Milford Township. The City of Newark continues to own all system components, retains rate setting authority, and retains control and responsibility for capital investment.

ESTIMATED/ACTUAL COST SAVINGS -- IMPACT ON RATES

The City of Newark pays PSG a service fee for managing the water system. Over the term of the contract, the City expects to realize approximately $2.5 million in operational savings. PSG has also saved the City of Newark over $100,000 on matters related to the operation and upgrade of the treatment facility.

LABOR RELATIONS

At the start of the contract, PSG was required to retain all eight City employees working within the treatment facility. PSG has also agreed to an affirmative action plan to provide Newark residents with the opportunity to become employees of the company.