Wachs Proposes Hiring Private Firm to Operate Sewer System

Los Angeles City Councilman Joel Wachs on Thursday proposed looking to private firms to cut the cost of operating the city’s vast sewer system, a move he claimed could save up to $45 million annually and lead to lower costs for residents and businesses.

Wachs’ proposal, which he said aims to “reduce the outrageously high sewer service fees which the city now charges to the taxpayers,” calls for private companies to bid to take over operation of the city’s entire waste-water system. The city’s Bureau of Sanitation could also submit a bid but, to hang onto its duties, must be “willing to cut the fat from its bloated operations,” Wachs said.

Wachs based his savings estimate on the experiences of several other cities.

Some of the many provisions Wachs would require from would-be contractors, however, may cut into the attractiveness of getting such a huge chunk of city business.

They include:

* Guarantee a savings cost of at least 15%.

* Offer to provide city access to private capital for improvement or expansion projects.

* Guarantee full compliance with environmental regulations.