Politics & Government
Arnold Rejects Privitization of Sewer System
American Water, the buyer, could not promise to protect residents and city employees affected by the sewer purchase, City officials said.
About a year after American Water offered to buy Arnold's sanitary sewer system and hire related city employees, Arnold Mayor Ron Counts said the city rejected the company's unsolicited purchase offer.
"It was clear that not enough assurances could be provided to ensure the protection of the City's residents or the City employees who were proposed to join American Water," Counts said in a news release on Friday afternoon.
About one year ago, American Water approached the city with an offer to buy the Arnold sanitary sewer system, the related equipment and real estate. The company also offered to hire Arnold employees working on the city's sewer system.
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At the same time, the mayor and the City Council were evaluating needed repairs to the Arnold sanitary sewer which use older pipe materials have cracked after decades of use.
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Residents and the city are likely charged for processing the extra water, said Gene Fribis, a consultant hired by the city to investigate leaks into Arnold’s sanitary and from storm sewers.
If American Water purchased Arnold's sewer systems, the company would make all the needed repairs and manage system.
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After recieving the purchase offer, city councilmen unanimously paid $44,00 for assessors to estimate the value of the city's sewer sytems for comparison against the American Water's purchase price.
The standard investigation for any city that decided to sell property, said City Administrator Matt Unrein during a council meeting on Sept. 15, 2011.
The investigation and review of American Water caused Arnold to reject the offer, said the mayor's news release on Friday, Feb. 3.
The National Labor Relations Board issued a national complaint against American Water, in January, charging the company illegally cut healthcare and other benefits for hourly workers in fifteen states, said a separate news release dated Jan. 11. 2012.
Correction: The purchase was for Arnold's sanitary sewer. The writer erred.
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