Pingree Grove set to take over own water & sewer operations

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Updated: February 7, 2012 8:15AM

PINGREE GROVE — The village will take over operations of its water and sewer service, after the current private operator chose not to renew its contract.

Village Administrator Ken Lopez said MGD Water Systems president Mike Megurdichian cited personal reasons for not renewing the contract.

The village board has decided to take over the maintenance and operation of the system, which serves more than 4,100 residents. Other options had included hiring a new company to monitor the system or selling the water system assets altogether and having a private company provide service.

Trustees cited a desire to maintain control of the plant’s operations and potential cost savings for their decision to bring oversight of the water system in-house, effective Feb. 1.

MGD has provided services to Pingree Grove since the plant started operation in 2004.

The village paid $20,556 per month to MGD last fiscal year and would have paid $411 more per month under the projected 2012 budget, a 2 percent increase. Lopez said the move was not a result of cost negotiations.

“The move was initiated by MGD when Mike expressed that they wished not to renew the contract,” said Lopez. “We have been very pleased with their services, have had an excellent working relationship with Mike, and wish them nothing but success.”

“We estimate that we can save approximately $68,000 annually, mostly through personnel costs” by the village operating the system, he added.

MGD employed the equivalent of 3.2 full-time employees on the village’s behalf, consisting of a full-time plant manager, two maintenance workers and oversight by Megurdichian himself.

According to Lopez, the village plans to maintain the system with the equivalent of just 2.5 full-time employees. It will hire two full-time employees — a superintendant and one maintenance worker, and an additional part-time maintenance worker during the summer. The remainder of the hours will come from administrative help provided by village staff.

Cost savings will affect the village’s water and sewer fund, not the general fund that was the target of a recently-wrapped-up cost-cutting task force.

Lopez said that residents will see the same level of service and that there have been no discussions on changes in their bills.

“Fees residents pay go toward improvements to the water system as well as operations and maintenance,” he said, “so these savings could potentially alleviate the need for future rate increases for capital improvements.”