Jacobs weighing city’s demands for water, sewer plants’ futures

Sean C. Morgan

A Jacobs Engineering representative called Sweet Home’s demands “a little extensive” but thanked the city for an opportunity to respond to the city’s offer to allow Jacobs to continue operating the city’s water and wastewater treatment plants.

City Manager Ray Towry sent a letter dated Nov. 6 to Jacobs on behalf of the City Council outlining provisions the city requires to continue with the arrangement.

CH2M Hill and OMI began operating the plants in 2006. The companies were acquired by Jacobs in 2017.

During an audit of the Water Treatment Plant earlier this year, the city identified several operational deficiencies, according to Towry’s letter. Over the past several months, the City Council has held multiple meetings to discuss the performance of Jacobs.

The council also has discussed whether to operate the plants with its own personnel or turn to another vendor.

During a work session on Oct. 30, the council noted that Jacobs has made progress correcting the deficiencies, Towry said. “While the council believes Jacobs may have neglected their obligations under the contract, the council expressed they may be willing to continue their contractual relationship with Jacobs.”

The letter listed four conditions:

– No increase to the base rate charged by Jacobs for the 2019-20 fiscal year. Jacobs had requested a 3-percent increase, about $30,000.

– Because Jacobs failed to fulfill its obligations, it forced the city to hire a utilities manager to oversee Jacobs’ performance under the terms of the contract. The council is asking Jacobs to fund the position, salary and benefits.

– All deficiencies must be repaired by Nov. 1, 2020 at the sole expense of Jacobs.

– And Jacobs must meet all obligations moving forward, including maintaining appropriate staffing levels.

“The City Council appreciates Jacobs’ patience and transparency displayed while they work through these difficult decisions,” Towry said. “Should Jacobs agree to these conditions, the council will strongly consider continuing their working relationship with Jacobs for another year then re-evaluate their options under the contract.”

Towry asked for a formal response by Jacobs within 30 days.

Vice President Efrain Rodriguez appeared with regional manager Brian Helliwell during the council’s regular meeting on Nov. 12 to provide an annual report to the council.

“Our initial reviews indicate the requests that are being made seem a little extensive,” Rodriguez said. Jacobs has received the letter and is preparing a response.

Jacobs does appreciate the opportunity to respond, Rodriguez told the council.

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