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Outsourcing begins with treatment plant's sludge
(by Sue Reid - April 22, 2011)
Outsourcing begins with treatment plant's sludge
By SUE REID
The City of Solon will outsource the sludge-hauling operation at its sewage treatment plant following action last week by City Council.
The change will not result in any additional layoffs, officials said.
During a special meeting, Solon City Council approved an ordinance accepting the bid from Ohio Bulk Transfer Inc., of Newburg Heights, for the sludge-hauling services at a cost of $350 a load. The city estimates 450 loads a year, for a total cost of about $157,500.
The city's cost for sludge hauling has been about $239,000 a year.
In separate action, council also approved a motion rejecting a competitive proposal from Teamsters Local 436, which represents the labor force at the plant. That followed a recommendation from the public works department to move forward with the contract.
As part of its contract, the union had the opportunity to give its own proposal for consideration. It was presented with the outsourcing bids in February. There is a provision in their contract that calls for a 60-day notice of layoffs.
The union met twice with the city over the past month. The union said that the benefits to outsourcing are not that great and presented the city additional information before council's special meeting.
"We wanted you to consider this proposal," Joseph W. Koelliker, a lab analyst at the plant and union steward, said. The outsourcing does not show much benefit at all, he said.
"We can do the job just as well and just as cheap," Mr. Koelliker said. "We were hoping to get that message across."
The city estimated that outsourcing the sludge hauling would save about $99,000, Mr. Solanics said.
"It's probably even more than that when you look at administrative issues you have to deal with, such as truck repair," he said. "There's a lot of hidden costs that are not calculated in there." That also includes vacation time that staff has to be organized around to make sure there are a sufficient amount of drivers during the week, Mr. Solanics said.
"I don't necessarily believe we won't save any money," Public Works Director James S. Stanek said. He also said it presents a good opportunity for the city to get out of the business of sludge hauling.
From the standpoint of liability, Mr. Solanics said he agrees. "It is a big piece of equipment, and there are a lot of dangers driving a large vehicle like that," he said. Recently, one of the sludge haulers in Solon had an accident. Fortunately, no one was hurt, he said.
In addition to sludge hauling, two other areas at the plant, lift station maintenance and waste water sample analysis, are being evaluated for possible outsourcing as a way to cut costs.
Outsourcing those areas could result in up to four layoffs of full-time jobs at the plant. The sludge hauling did not result in additional layoffs because one of the employees who did that worktook another job, and the other was a probationary employee who was let go, Mr. Solanics said.
The final determination to move forward with the sludge-hauling contract had to do with the city's liability associated with the sludge hauling business, Mr. Solanics said.
If the city would go with all three of the contracts, he said, the result will be a total reorganization of the work force at the plant to continue to get the work done.
Mr. Solanics said that, by the next public works meeting May 4, a recommendation will be made on the waste water analysis and lift station maintenance proposals.
"We're far enough along that we need to make a decision within two weeks," he said. Mr. Solanics noted that the city has 180 days from Jan. 28 when it opened the bids to implement contracts if that is the direction it chooses to go.
Mr. Koelliker thanked council for looking at and reviewing the union's proposal.
Chris Pavone, Teamsters Local 436 vice president, said Tuesday, "We're still hoping that we can work this out to the satisfaction of both parties."
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