Fort Smith to consider water, sewer efficiency review

story by Luke Hobbs
[email protected]

In Tuesday’s (Aug. 9) study session, Fort Smith city directors moved closer to approving the hiring of an outside firm to study the city’s water and sewer operations efficiency.

The board on March 1 adopted a resolution calling for a water and sewer efficiency study. City Internal Auditor Mitzi Kimbrough and City Purchasing Director Alie Bahsoon were assigned to manage the process of selecting an independent firm to conduct the study. Final selection is subject to board approval.

After an application and interviewing process, city staff unanimously recommended HDR Engineering. Based in Omaha, Neb., HDR works with municipalities in all areas of utility engineering and operations.

The efficiency study would cost the city an estimated $114,180, which would be drawn from the Water and Sewer Operating Fund.

City Administrator Ray Gosack told the board the staff selected HDR because of its focus on four key areas of efficiency (organizational, operations, planning, and finance/rates) and its ability to tie them all together.

On Tuesday the board listened to a presentation from two HDR representatives: Project Manager Don Lindeman and Assistant Project Manager Tom Gould. Lindeman and Gould outlined a multi-step technical approach for the water and sewer efficiency study, including an initial project meeting, data collection and review, final written and oral reports to the board, and the setting up of a citizens’ advisory committee to oversee the process.

Lindeman said that at the end of the study, HDR will provide recommendations in the following areas:
• Areas for efficiency improvement
• Policy modifications
• Financial planning/rate modifications
• Operational improvements

If HDR’s proposal is approved, Lindeman said, the company would immediately send its initial data request to city staff, then hold its first meeting with staff 7-10 days later. Lindeman said HDR hopes to finish the project by the end of this year, but it will probably extend into January 2012.

Several directors expressed concerns about whether the board would be able to stay informed throughout the study. City Director Kevin Settle asked Lindeman whether HDR would update the board periodically.

Lindeman said that typically his team would update city staff, but they could give reports to the board too.

City Director Pam Weber suggested that HDR submit an update to the board about halfway through the process.

City Director Steve Tyler asked how specific HDR would get in recommending efficiency improvements. Gould said the company doesn’t micromanage, but it checks high-level indicators for problems and then examines the causes of those problems.

City Director Don Hutchings asked Gosack what he would say if a citizen asked him why the city was spending more than $114,000 on this study. Gosack responded that HDR will help the utilities department become more efficient by cutting costs and improving services. He said he hopes the water and sewer system improvements will give other city departments a pattern for improving efficiency.

Directors will vote in next Tuesday’s board meeting on whether to approve hiring HDR for the efficiency study.