Board of Water Works Approves Interlocal Agreement with MSD
Tuesday February 18, 2014
Today the Board of Water Works took the next step in creating a shared services model for certain functions of Louisville Water and MSD. The Board approved the Due Diligence Analysis Report regarding Louisville Water and MSD and then approved an Interlocal Agreement between the Board and MSD. The MSD board meets next week and is expected to grant similar approvals. Then, the Interlocal Agreement will be forwarded to the Kentucky Attorney General for final approval.
The Interlocal Agreement will allow Louisville Water and MSD to combine work functions as part of the “One Water” concept that will lead to savings and more efficient operations. Senior leadership at both organizations recommended this approach after spending months looking at the legal, financial, environmental and regulatory risks and the opportunities with a total consolidation. The group recommended that a shared services model would be the logical first step in bringing the organizations together and could produce savings of up to $10 million annually by 2017.
Phase one of this implementation includes sharing services in five support functions and one specialty group: procurement, fleet management, human resources, information technology, customer service and identifying energy savings.
Mayor Greg Fischer accepted the leadership’s recommendation on February 7, which led to today’s Board discussion and approval.
Currently, Louisville Water and MSD leadership are finalizing an outline for how the transition to shared services will work.