SUMMARY OF MAJOR FINDINGS AND RECOMMENDATIONS

							              SUMMARY OF MAJOR FINDINGS
                AND RECOMMENDATIONS

I.     Management Evaluation

       The “Functional Analysis of the Governing Structure of the City of Gardiner
Wastewater Treatment Facility and the Gardiner Water District” (Management
Evaluation) was prepared by the Maine Rural Water Association and the Kennebec
Valley Council of Governments.

       The purpose of this Management Evaluation is to provide a functional analysis of
the governing structures of the Gardiner Wastewater Treatment Facility (GWTF), the
Gardiner Water District (GWD) and the Gardiner Department of Public Works (GDWP).
This analysis is intended to provide the Gardiner City Council and the Trustees of the
GWD with the information necessary to make decisions about avenues for enhanced
cooperation and possible alternative organizational structures for providing water and
wastewater services to local customers.

         The Management Evaluation includes over 50 findings/recommendations that are
listed in section XI of the document. The major findings/recommendations of the
Management Evaluation are as follows:

       1.     Over the past 3 years, the City of Gardiner and the GWD have earnestly
              discussed the potential benefits from reorganizing the City’s water and
              wastewater activities as well as finding other opportunities for cooperative
              action, cost savings and efficiencies.

       2.     Over the past 3 years, the GWD and the GWTF have worked
              cooperatively to improve communications, planning and implementation
              activities. This cooperative action has produced cost savings for the
              customers of the GWTF and the GWD.

       3.     There are opportunities for additional cooperative activities between the
              GWTF and the GWD that will likely result in cost savings for both entities
              and their customers.

       4.     The GWD and the GWTF each have primary functions they must perform.
              The GWD and the GWTF are satisfactorily performing their respective
              primary functions.

       5.     One way to assess the performance of a wastewater or water system is to
              compare the costs of the system in question with the costs of comparable
              systems. The costs of the GWTF are generally in line with wastewater
             industry cost standards. Similarly, the costs of the GWD are generally in
             line with water industry cost standards.

      6.     Section X of the Management Evaluation identifies the following
             five organizational options for the GWD and the GWTF:

             Option 1       Maintain separate GWD and GWTF
             Option 2       Create multi-purpose district
             Option 3       GWD absorbs GWTF
             Option 4       City absorbs GWD
             Option 5       Establish contractual relationship between the City and
                            GWD

             The Management Evaluation concludes that the net benefits from
             consolidating the GWD, GWTF and/or GDPW are not sufficient to justify
             such consolidation. The Management Evaluation therefore recommends
             the adoption of a combination of Options 1 and 5 and the rejection of
             Options 2, 3 and 4 at this time. The Management Evaluation recommends
             that the GWD and the GWTF remain intact and autonomous and that the
             two entities continue working together through joint discussions and
             contractual arrangements as described in the document.

II.   Alternative Viewpoints

       The “Executive Summary of Alternative Viewpoints” (Alternative Viewpoints)
was prepared by Chris Paszyk, Pat Gilbert and Chuck Applebee in response to the
Management Evaluation. The major findings/recommendations of the Alternative
Viewpoints are as follows.

      1.     The “core issue” of this management review is “What is the most
             efficient/effective organization under which to deliver quality
             water/wastewater services?” The Management Evaluation does not
             sufficiently address this core issue.

      2.     The Management Evaluation’s coverage of the “administrative cost” issue
             is insufficient because it fails to address the fundamental issue of
             duplicative administration.

      3.     The Management Evaluation’s coverage of “organizational efficiency” is
             insufficient. The Management Evaluation’s recommendations regarding
             billing and weekend coverage are the same as those made by the MRWA
             in 2002.

      4.     The Management Evaluation’s coverage of the “grant acquisition” issue is
             inadequate because it (1) does not discuss the City’s history of an
             aggressive and highly successful grant acquisition and funds leveraging
             strategy and (2) fails to note that the GWD has no such capacity or history.

                                          2
       5.      The GWD currently has no Advisory Board. The GWTF’s Advisory
               Board’s mission should be expanded so that it advises both the GWTF and
               the GWD.

III.   Consolidation Study

        The City of Gardiner hired Kent Associates to assess the potential for physically
relocating or consolidating several City services at one or more sites, in order to (1)
reduce/share costs (based on the best possible options), (2) encourage cooperation and (3)
share facilities while meeting each provider’s needs.

       The major findings/recommendations from the Gardiner Services Relocation &
Consolidation Study (Consolidation Study) – which were agreed to by the consultant
and the directors/key decision-makers from the Gardiner Public Works, Gardiner
Wastewater Treatment Facility, and the Gardiner Water District – are as follows:


       1.      The Department of Public Works and the Gardiner Wastewater Treatment
               Facility should be co-located on Route 24 (River Road) at the existing
               wastewater treatment plant.

       2.      The Gardiner Water District should consolidate its operations at its New
               Mills site.

       3.      The City should purchase the Gardiner Water District’s downtown
               building for the relocation of the Gardiner Police Department.




                                            3