The company that agreed to pay a nearly $1 million fine for water problems in Hugo earlier this week could soon get a new contract. The Oklahoma City Water Utilities Trust Authority unanimously approved the proposed contract with Severn Trent Services on Tuesday.
The Journal Record’s Sarah Terry-Cobo reports Councilman Pete White, who sits on both bodies, said he’s convinced the problems in Hugo were an aberration, not a pattern:
White said during a trustee meeting Tuesday that it is a step of faith to recommend Severn Trent. He told The Journal Record he knew Severn Trent would soon be fined for the Hugo situation, but he wanted to let trustees know he examined the company and it would do the job right in Oklahoma City. He said Hugo’s situation wouldn’t happen in Oklahoma City, in part because his municipality has more staff and oversight than the rural town of about 5,500 people. He said he isn’t criticizing Hugo’s leaders, but Oklahoma City has more resources. In addition, Oklahoma City’s utility billing system gives the financial means to address infrastructure problems as they arise. The city fixes the issue right away and can raise utility bills to cover capital costs, he said.
Veolia has operated wastewater facilities in Oklahoma City for 33 years. But Severn Trent says it can do the job for $2 million less per year.
From Terry-Cobo:
“It was quite a devastating blow to Veolia to be in this situation,” [Veolia Vice President of Operations Bill] Roach said. “We hope that our goodwill with the city will carry us through the year.” He said his company has done a good job as the city’s contractors and has never had a compliance issue that resulted in a fine. . . . The contract is worth $13 million a year. “I understand the economic situation the city is in, and I understand the low bidder carries some weight,” Roach said. “I hope (Severn Trent) can perform better than in some other places.”
Severn Trent says it closely examined its quality assurance and compliance processes after the issues at Hugo’s drinking water plant, Senior Vice President William Mertes wrote in a November memo to Oklahoma City:
“We understand that the most important promise that we make to our clients is that we will operate in compliance, protecting the health of the environment and community we serve,” according to the memo. The company changed its staff structure to increase accountability and reduce the number of managers to whom staff members report. Its employees will attend comprehensive training classes, including ethics, compliance reporting and sampling procedures. Oklahoma City’s utility staff will have access to read Severn Trent’s operational data at any time, according to the memo.
The Oklahoma City Council could vote March 22 to let UK-based Severn Trent Services take over its wastewater treatment plants.
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