Last Monday, a special open meeting was held at City Hall in Pell City to discuss the possibility of outsourcing the city’s water department management.

Over the last 9 months, the council has been researching ways to improve the troubled water department.

Pell City Mayor Bill Hereford said that he called the special meeting so that citizens could be fully informed about the direction the city may be headed.

Around 50 citizens and city employees filled the council chambers during the course of the discussion. Early on, it became apparent that city workers as well as family members were concerned and angry at the potential of job loss.

According to city records the water department, which is owned and operated by the City of Pell City, will lose hundreds of thousands of dollars this year.

Records show that year-to-date expenses for the water department’s operations are roughly $4,196,636.00 and the total revenue generated by the department is around $3,896,240.00 leaving a shortfall of about $300,396.00. Mayor Hereford has pointed out in recent months that the city is facing a $1,700,000.00 loss of revenue over last year and that the city is going to face cuts and must find operational efficiencies to stay solvent.

The mayor and council had interviewed three water management companies with ClearWater Solutions LLC emerging as the front runner. According to the company’s website, “ClearWater Solutions, LLC is a locally-owned Operations and Maintenance Company headquartered in Opelika, Alabama. Established in January 2007, our company partners with municipalities, county governments, private individuals, and water and wastewater boards to provide operations and maintenance of water and wastewater systems.”

ClearWater Solutions’ clients include the City of Hoover, Alabama; the Alabama Department of Corrections; the North Choctaw Water and Sewer Authority; the Perry County Water Authority and others.

The mayor has said the ClearWater Solutions has been thoroughly vetted and that they have a sterling reputation among their current customer base.

However, at Monday’s council meeting the resolution to enter into a contract with ClearWater Solutions, LLC was tabled. This was a result of council members Dot Wood and James McGowan’s wish to take a further look at the situation. Councilmember Greg Gossett has made it clear that he is completely opposed to outsourcing the water department’s management. Gossett who has made a reputation as “Councilman No” has, under the current administration, become somewhat of a populist leader for the disgruntled and those who feel disenfranchised.

Mr. Gossett has been collecting citizen’s signatures on a petition in an attempt to pressure others on the council to follow his lead on the water department.

At the heart of the debates is the fate of the 14 city employees who work in the water department. Under the outsourcing contract, the city will terminate those employees and then the employees may apply for positions with ClearWater Solutions. Older workers are especially concerned that younger applicants who will work for cheaper wages will replace them.

However, given the financial loses the city is facing many point out that if costs are not brought under control many other city workers may face layoffs.

At Monday’s meeting, it was also stated that currently the water departments expenses are conservatively estimated at around $64,000. Under the agreement with ClearWater Solution the city would pay only an average of $52,000.00 for the same level of service. As the Great Recession of 2009 continues to threaten into 2010, the city will be faced with many tough choices. Those who watch City Hall with a keen eye say that the city’s decisions may be politically unpopular but fiscally necessary