beyond privatization restructuring water systems to improve performance n.
Download
Skip this Video
Download Presentation
Beyond Privatization: Restructuring Water Systems to Improve Performance

Loading in 2 Seconds...

play fullscreen
1 / 9

Beyond Privatization: Restructuring Water Systems to Improve Performance - PowerPoint PPT Presentation


  • 100 Views
  • Uploaded on

Beyond Privatization: Restructuring Water Systems to Improve Performance. Gary Wolff , P.E., Ph.D. Principal Economist & Engineer Pacific Institute Oakland, California www.pacinst.org. The Problem. Cities Face Many Challenges, Including: Chronic Under-Investment Tighter Regulations

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Beyond Privatization: Restructuring Water Systems to Improve Performance' - paulos


Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
beyond privatization restructuring water systems to improve performance

Beyond Privatization: Restructuring Water Systems to Improve Performance

Gary Wolff , P.E., Ph.D.

Principal Economist & Engineer

Pacific Institute

Oakland, California

www.pacinst.org

the problem
The Problem
  • Cities Face Many Challenges, Including:
  • Chronic Under-Investment
  • Tighter Regulations
  • Security Concerns
  • Limited Financial Resources
is privatization a silver bullet
Is Privatization A Silver Bullet?
  • It Has Been Proposed as THE Solution to All Woes, Internationally and in the United States
  • The Issue Has Been Hotly Contested
  • But We Say: Public Vs. Private Is NOT the “Bright Line” Between Success and Failure
  • It Is An Important “Value Issue” That Has, Unfortunately, Become A Distraction From More Important Determinants of Success
a side comment about value issues in water governance
A Side Comment About “Value Issues” In Water Governance
  • The Public Vs. Private Debate Contains Important Issues
  • Such As How to Ensure Economic and Social Values are Realized
  • See Our Previous Report, Available Free On-Line, For Discussion
what are the determinants of success
What Are The Determinants of Success?
  • They Are, Based on Research in the Upper Midwest (Iowa, Minnesota, Wisconsin, Illinois, Michigan, Indiana, Ohio, and the Province of Ontario):
  • Effective Staffing
  • Adequate Funding, Including Innovative Approaches
  • Detailed Asset Management
  • Performance Measurements and Rewards
  • Transparent Decision Processes and Governance
example adequate funding through economies of scale
Example: Adequate Funding Through Economies of Scale
  • The Lansing Board of Water and Light and Smaller Municipalities Have Cut Costs Through Service Contracts That Leverage Administrative Costs Over a Larger Base, Allow Assets to Be Run at Capacity, Etc.
  • Similarly, the “Hub and Spoke” Area of Minnesota (St. Michael, Albertville, and Hanover) Achieves Similar Cost Control Through Contracts With a Private Company
example performance measurements and rewards
Example: Performance Measurements and Rewards
  • The Louisville Water Company, A Municipal Corporation, Has Achieved Many Goals Via Employee Incentive Awards (Bonuses)
  • MMSD Contract Has Performance Bonuses
  • Hamilton, Ontario Switched From Private to Public Operation Without Much Turmoil Because They Had Developed Specifications Suitable For a Commercial Relationship
  • Ideally, All Systems Would Do This
example effective labor transitions
Example: Effective Labor Transitions
  • Maintaining Fairness & Stability For Workers During Restructuring Is Important, For Numerous Reasons
  • These Transitions Have Been Made Effectively at: MMSD; Indianapolis Wastewater Operation; Butler County, Ohio; Akron, Ohio; and Hamilton, Ontario
  • In Contrast, The Indianapolis Water Contract Has Had a Troubled Transition. Federal Mediation Has Been Required, 17 Formal Complaints Were Filed With the NLRB; Fired Employees Have Sued; and So Forth…
  • But These Examples Do Not Show a “Public-to-Private” Problem. Indianapolis Water Was Private-to-Private, and the Other Examples Are Varied.
beyond privatization restructuring water systems to improve performance1

Beyond Privatization: Restructuring Water Systems to Improve Performance

  • Our Report Will Be Released In November 2005
  • You Can Obtain a Copy at www.pacinst.org
  • OR, Be Notified of Its (Free) Availability on the Web By Writing Us At: Beyondprivatization@pacinst.org

Gary Wolff , P.E., Ph.D.

Principal Economist & Engineer

Pacific Institute

Oakland, California

ad