New Albany still awaiting EMC’s response

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June 29, 2012

New Albany still awaiting EMC’s response

City alleged company’s actions led to $17,000 repair

By DANIEL SUDDEATH daniel.suddeath@newsandtribune.com The News and Tribune Fri Jun 29, 2012, 06:53 AM EDT

NEW ALBANY — The city and Environmental Management Corp. are still having discussions over alleged contract violations that were announced in February, New Albany Mayor Jeff Gahan confirmed this week.

EMC oversees New Albany’s wastewater treatment plant and was put on notice in February by the New Albany Sewer Board of alleged contract violations, including actions the city claims led to a $17,000 repair bill at the Mount Tabor lift station. The city also claimed EMC failed to staff a three-person crew consistently to perform maintenance work as part of its contract with New Albany.

Gahan said restructuring has occurred at EMC — which was purchased by American Water Enterprises in 2009 — and that has delayed a response to the complaint.

The city had initially requested a response within 90 da“We haven’t received a formal response yet; they are aware of our concerns, and they do plan on taking steps to address them,” said Gahan, who is also president of the sewer board.ys from EMC.

However, American Water spokeswoman Denise Free said that according to an EMC official the company was told by New Albany sewer attorney Shane Gibson on April 23 that the city would be “clarifying their position” regarding the complaints and “would get back to us.”

“And we haven’t heard anything since,” she said.

EMC’s contract with the city expires at year’s end, as the company is paid about $1.77 million annually under the agreement. There have been no public announcements of contract extension talks, and Gahan stated earlier this year he placed himself on the sewer board in part to help usher the city away from privatization.

In 2011, the city cut its sewer contract with EMC from $3.6 million to $1.77 million.