Thursday, January 1, 2015

Wasted Money, Wasted Time

Too often management, including municipal management, feels the need to pay outside consultants to add credence to the obvious. The assumption that public doesn't trust us but they will trust the “experts” is the driving force, in my opinion.
The recent hiring of a water system consultant at a cost of $5,000 to determine the state of Wilmington's water system and its financial situation is a case in point.
a. Did we need an outside consultant to tell us that we needed to increase revenue to save a failing and poorly maintained system?
The water department chief has been beating that drum before the city council's water committee for the past several years.
b. The consultant made the complex calculation that adding a $10 per month surcharge to each water customers would generate $626,000 new revenue annually.
Any billing department employee could have figured that out with a pencil stub, on the back of an envelope.
c. The experts recommended that a per gallon rate increase not be instituted.
City council did add a per gallon increase.
d. The consultant's report stated, “The amount of non-revenue water has been relatively stable with a four year average of 18.5%.”
The city's own data indicates that the four year average rate is over 26%. The same data shows a non-accounted for water loss (leaks etc.) of 130 million gallons in 2013.

A water loss specialist has volunteered to give a non sales, unbranded presentation to council on the ways and means of determining and repairing loss failures in municipal water systems. The water committee and the administration have failed, so far, to act on this generous offer.

Paul Hunter paulhunter45177@gmail.com

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