Privatization of Water Services in the United States An Assessment of Issues and Experience (2002) / Chapter Skim
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6. Broader Implications of Water Services Privatization
6. Broader Implications of Water Services Privatization
Pages 100-109
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From page 100... ...
Because there are few economies of scale to be gained from the water delivery infrastructure, privatized systems can only offer advantages by generating cost savings in three components of water supply: labor efficiency, centralization of financial and operating services, and improvements in the management and yield of the basic water supply and nondistribution system assets. Water services privatization may thus effect changes in local employment and supply acquisition, as well as changes in the land and recreational assets related to the basic water supply.
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From page 101... ...
In many public water agencies, some degree of cost efficiency in water service delivery is sacrificed in the interest of achieving other community goals such as equity, provision of recreational opportunities, and provision of water that exceeds quality standards. Maintaining the local public works department may provide a mechanism to preserve local jobs and, in some jurisdictions, serve as a means of preserving opportunities for political patronage.
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From page 102... ...
Information on enforcement and dispute resolution methods can be obtained from larger agencies or public sources such as the Environmental Protection Agency (EPA, 1997~. Water services privatization raises issues of lost capability and expertise.
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From page 103... ...
In some areas of the United States, there are other private water service providers that a municipality could contract to take over a terminated service contract. When the roles of the private sector in water utility operations are expanded, local government must understand that its role in the utility's operations changes dramatically.
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From page 104... ...
Whether a public or private operation provides water services, failure to fulfill the expectations of the community is likely to result in a public outcry. IMPLICATIONS FOR ENVIRONMENTAL AND WATER SUPPLY PROTECTION Concerns about control over public land and watershed issues are frequently debated in discussions regarding water services privatization.
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From page 105... ...
, arguing that that agency should use economic criteria and more cost-effective methods in planning water supplies and wastewater treat
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From page 106... ...
As an example of community coherence, California farmers stated in response to a survey that they would consider transferring water to other users within the same sector and watershed, but that they would regard transfers to other sectors and watersheds with suspicion (Berk and Whelan, 1994~. Out-of-basin transfers of water rights may adversely affect regional water supplies and water quality of the exporting region (Howe et al., 1990~.
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From page 107... ...
In the 1960s, in an effort to explicitly restrict urban growth, the city declined the offer to connect to the California State Water Project. However, despite the absence of new water supplies in Santa Barbara County, residential development continued rapidly.
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From page 108... ...
Water markets have long been used in transferring water from agricultural uses to municipalities (see NRC, 1992~. Water markets could be considered a form of privatization, but they have existed for 100 years, independent of urban water utilities.
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From page 109... ...
Communities must decide the degree to which private contractor objectives and likely performance are compatible with a range of community values such as environmental preservation, cultural impacts of water, recreational and aesthetic values, and preservation of local employment. The prospects of water services privatization tend to increase awareness of water's importance to a community's economy, culture, and environmental resources.
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