Live Oak explores water system privatization
… The city is in the process of undertaking a potential water rate increase since the water fund has been operating at a deficit for many years. Because water rates have not been raised in approximately 20 years, the current rates are insufficient to cover operational costs and infrastructure maintenance. As a possible alternative option, Interim City Manager Hauck suggested that the city consider divesting the operations to a private utility company, which would assume full operation and management of the water and sewer systems. The city could issue a Request for Proposals (RFP) from interested water agencies, which Hauck said would give City Council an idea of how the privatization process works so council could make an informed decision. The Request for Proposals would be an exploratory process and the city would not be obligated to enter a contract.