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Louisville Water and MSD: Sharing Resources - Saving Money

Monday January 28, 2013

Louisville Water's Board of Water Works and the MSD Board have given their approval to the two entities working together on concrete pours at job sites. It's a partnership that will save both Louisville Water and MSD thousands of dollars.

The Interlocal Cooperation Agreement, which still must be approved by Kentucky's Attorney General, is the first formal agreement to follow the conclusion of the Mayor's Utility Task Force. Last year, the task force identified over a dozen partnership opportunities that could save Louisville Water and MSD money and provide more efficient services.

Both Louisville Water and MSD use concrete as part of repair work. Louisville Water has two concrete trucks and crews that operate the equipment. While the equipment is important to repair work, it's not in use every day. Currently, MSD outsources concrete pours. Under the agreement, Louisville Water would use its equipment at MSD job sites when it's available. MSD would pay Louisville Water and realize a cost savings since Louisville Water's cost are lower than what MSD currently pays.

Louisville Water estimates it will bill MSD up to $40,000 annually. By using Louisville Water’s crew and equipment, MSD will reduce its concrete pour costs by up to 30%. Currently, MSD spends $126,000 annually on concrete.