Pittsburgh, Pa –The Pittsburgh Water and Sewer Authority (PWSA) Board of Directors voted today to extend the PWSA-Veolia partnership from January 1, 2015, through December 31, 2015, with provision for up to two six-month extensions. The scope of services under the new Agreement is similar to that under the existing agreement and includes management of specific operations projects.
As part of the management services agreement, Jim Good will continue leading PWSA as the Interim Executive Director. Veolia will assist in the recruitment and transition of an Executive Director, a Finance Director, and a Chief Operating Officer. The PWSA Board believes that the contemplated twelve-month term of the new Agreement will allow for the accomplishment of such services and goals.
Under the new Agreement, Veolia’s annual base compensation is reduced by nearly 25%. Compensation for all Key Performance Indicators implemented through the term of the Agreement will not exceed $400,000, and during each additional term, if any, will not exceed $250,000. Generally, after 2016, all savings from approved initiatives are solely for the benefit of the Authority.
"Our partnership with Veolia has improved the day to day operations of the utility resulting in significant cost efficiencies and improved customer service," said Alex Thomson, PWSA Board Chairman. "Veolia has provided stable leadership to PWSA and is helping us develop a plan to prepare the utility for the difficult challenges it faces in the future. We appreciate Veolia's continued assistance to the utility in addressing these challenges."
The Veolia management team will continue reporting to a Steering Committee comprised of three PWSA Board members and two senior Veolia managers. The group meets monthly to review Veolia’s performance under the contract.
“The PWSA-Veolia partnership’s mission was to give a new direction to the Authority based on a strong foundation of industry best practices,” according to Rob Nicholas, Veolia Water North America Vice President of Development. “Through aligned interests and a collaborative approach, PWSA and Veolia have successfully improved safety, enhanced customer service, produced cost savings and created overall workplace stability in the past two years. The crucial last steps of this process remain as we prepare for a smooth transition returning management back to the Authority.”
The Pittsburgh Water and Sewer Authority (PWSA) provides water and sewer services to more than 300,000 consumers throughout the City of Pittsburgh and surrounding areas.