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Middletown authorizes HTO agreement for water and wastewater operations amid cost questions
Summary
The Middletown Board of Estimate authorized an agreement with HTO for management services at the city's water and wastewater treatment plants and approved a $20,151.60 transfer to cover a contract-price increase; council members and staff disagreed on the proposal's annual cost during discussion.
The Middletown Board of Estimate on Jan. 2 authorized an agreement with HTO to provide management services at the city’s water and wastewater treatment plants and approved a $20,151.60 transfer from the water and sewer fund to cover the contract price increase.
Why it matters: The HTO agreement assigns third-party management capacity to critical municipal utilities. Board members probed the contract’s staffing and annual cost implications during the meeting, highlighting the budgetary significance of outsourced operations for water and wastewater treatment.
What the board approved
The board approved the HTO contract authorization and the associated transfer of $20,151.60 from the water and sewer fund to cover an increase in the contract price. Mayor DeStefano made the motion, which was seconded by Council President Rodriguez and approved on the record.
Discussion and disputed cost estimates
Council members and staff debated the contract’s annual cost. One council member said, “So this is costing us $1,300,000 a year.” City staff responded with alternative calculations showing monthly charges that, when annualized, were described as roughly $671,000 for combined water and wastewater services. Staff explained the proposal includes hourly rates (for licensed operators) and a full-time operator line item in the vendor proposal. The board repeatedly clarified that any transfers to pay the contract would come from the water and sewer fund.
Board member and staff exchanges referenced the following points:
- The vendor proposal lists an hourly rate for a licensed operator and additional rates for a full-time operator; staff noted those figures are multiplied across locations and months to estimate annual cost. - Staff and council members used different methods to total monthly and annual charges; both sides acknowledged the need to track contract expenditures as the city operates its treatment plants. - Staff emphasized the city must continue operating the plants and that the contract is intended to ensure licensed operator coverage when internal staffing is insufficient.
What was decided and next steps
The board authorized the HTO agreement and the $20,151.60 transfer. Staff were directed to execute the contract and monitor contract expenditures; the water and sewer fund was identified as the source to cover the increase. Follow-up actions recorded on the meeting record include executing the agreement and incorporating the contract cost into budget monitoring.
(Transcript excerpts cited below show the board’s motion and the ensuing cost discussion.)
