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:372 <br />for Phase 1, which adds up to 30 cents a gallon, $900,000 for Phase 2, and about <br />$1.75 million for Phase 3. These do not include bringing the plant to a capacity <br />over 33. or 34 MGD. Mr. Mussullam indicated that they could possibly see a <br />20% savings in chemical costs because of these improvements. <br />Mr. Mussullam said that if everyone wanted the maximum gallons of water <br />stated in their contracts and the City of Paris needed its maximum, the plant <br />could not meet these needs safely. <br />Mayor Fendley asked the Council to go to item 18, which was discussion and <br />direction on privatization since the consultants were in the council meeting. <br />Mayor Fendley asked what the consultants exposure to privatization had been <br />and if it had been good or bad. <br />Robert Slide of Freese and Nichols said privatization had been in Texas for a <br />long time. Mr. Slide explained that privatization meant contract operations to <br />run the water plant. He indicated the City of Pampa had been privatized longer <br />than anyone else in Texas. He also mentioned Georgetown, the City of <br />Houston, which was privatized and has gone back to its own employees, the <br />City of Laredo, and the City of Atlanta, who has cancelled it contract. He <br />indicated there has been mixed results from privatization. He also mentioned <br />that a lot of cities had good results from privatization of their solid waste <br />collection and disposal. <br />Mr. Slide said there were two major issues in contract for service on a water <br />systems, the cost in operation and how much control the city wanted to maintain <br />their systems. He did say the State had approved privatization operations in <br />Texas. Three main areas Mr. Slide felt that a privatization company usually <br />focuses on, personnel to reduce salary costs, chemical cost savings, and energy <br />savings. He indicated that because these companies have, a central warehouse, <br />chemicals could be bought in bulk. Other.benefits include central maintenance <br />and central technical and operational support. <br />Mayor Fendley indicated that the Council had the survey results compiled by <br />