Water Services to Move In-House?

With the multi-year contract for the operation and maintenance of the Millbrook Water and Wastewater Treatment System up for renewal, staff released a Request for Proposal in July seeking a supplier for another five-year contract.  After reviewing the options and their associated price tags in the proposals received, all in the neighbourhood of $450K per year, staff decided to investigate bringing this service in-house to determine the feasibility and potential cost-savings of such a move.   Efforts are currently underway to establish water and wastewater rates for next year, with a focus on identifying ways to reduce costs to address ongoing complaints about local water rates. Moving the work in-house service may provide such an opportunity.

After speaking to several neighbouring municipalities who have taken this route, staff determined that this option warrants further action.  While a request to extend the existing maintenance contract with PUG for six months to buy time to complete the investigation was declined, the City of Peterborough agreed to provide backup assistance to manage the facilities.  This provided the security to cancel the proposal process and explore the possibility of an in-house option.  A full report will be submitted upon the completion of the investigation.  KG

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