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Council approves five‑year sewer contract with Veolia, waives bid requirement
Summary
The North Branford Water Pollution Control Authority and town council approved a five‑year operations and maintenance agreement with Veolia Water North America, citing two decades of service and limited bidders. The contract sets a current annual fee of $211,363 and includes a $25,000 maintenance allowance and staged price increases.
The North Branford Water Pollution Control Authority on June 16 approved a five‑year operations, maintenance and management agreement with Veolia Water North America and asked the town manager to sign the contract after review by the town attorney.
A staff member outlined the proposal and said Veolia has provided sewer‑system services to the town since about 2005 and has worked under the current contract for the past 12 years. The proposal keeps current service levels for a five‑year term, lists the current annual fee at $211,363 and includes routine tasks such as monthly activity reports, calibration of meters every six months, 24‑hour response for emergencies and maintenance of five pump stations and four metering stations. The agreement includes a $25,000 annual allowance for maintenance or equipment improvements that,—per staff clarification—rolls over if unused and is applied to capital expenditures as needed.
Councilors questioned the pattern of annual price increases under the proposed term and whether the $25,000 allowance is use‑or‑lose. The staff response clarified that unused maintenance allowance rolls into capital and that the first year of the new proposal is priced with a 0% increase, followed by 1.5% in year two and higher percentages later in the term tied to CPI adjustments.
Deputy Mayor McMillan moved and Councelor Diamond seconded a motion to waive the competitive‑bid requirement and authorize the town manager to enter the agreement with Veolia, subject to the town attorney’s review. The motion passed after a recorded opposed vote and an abstention.
The motion notes the company’s regional economy of scale as a factor: Veolia also provides comparable services to neighboring towns, which staff said enables the firm to offer competitive pricing. Staff also said Veolia maintains spare parts inventory, vehicles and specialized equipment used for video inspection, jetting and emergency response.
The council’s action authorizes the manager to finalize the contract; the agreement includes an option to extend for two subsequent five‑year terms, subject to town council approval.
