* Westminster City Manager Bill SmithSome of...

* Westminster City Manager Bill Smith

Some of the most heated debates during recent City Council meetings have stemmed from a proposal to investigate privatizing the water system, which is currently operated by 30 employees in the city’s Public Works Department. Last week, council members voted to solicit bids from private companies and will consider further action next month. City Manager Bill Smith recently spoke with Times correspondent John Pope about the issue.

Q: You’ve said that the city’s water system is facing a crisis. How bad is it?

A: It’s a very old system, dating back to the 1950s. We run the system with 15 different pumps, and one of those pumps is gone. It’s shot, and we have another one on the verge of going. So right there is $1.5 million. Another aspect of it that concerns me is the earthquake standards of our two major [5-million-gallon] aboveground reservoirs that were built in 1968, before we had earthquake standards. We need to earthquake-proof those, and we have a requirement to add another reservoir. Those kinds of things add up.

Q: How much would it cost to upgrade the system?

A: We would need an estimated $20 million right now for capital improvements and another $10 million to pay off the system’s debts.

Q: So what are the city’s options?

A: One, is to up the water rate. Two, is to continue what we’re doing . . . keeping our fingers crossed that we don’t have a problem. The last thing we can do is look at privatization, and there are options within that. We could sell the system outright . . . which we haven’t recommended because we think the community wants to keep control as best they can of the rates, and if we sell it, we don’t have control. That leaves leasing. We figured the system is worth about $60 million, so with a lease for 15 years, as things are going, we should make $20 million upfront and $1 million a year. And we’ll give anyone interested in bidding the opportunity.

Q: If the city decided to keep the system and raise the rates, how would that show up on residents’ bills?

A: The average residence pays $15.80 every two months for water. To add $3 million to the system every year, we’d have to go up to $21, $22 or $23 . . . about $7 every two months. Is that so much? No, I don’t think so, and if it’s important to the city and citizens that they want to keep their water system, great.

Q: If the system is privatized, what would happen to the 30 employees?

A: Part of our requirements [for bidding] is that they provide jobs as equal as can be. The company has to make the best effort to duplicate the current pay scale and benefits. That’s the best we can do.