State audit says Camden's water/sewer improving

Camden's water system has improved in key ways since 2009, the year an audit compared the utility to that of a Third World country, according to a state report released Thursday.

The office of the state comptroller found that Camden officials and United Water fully or partially implemented 19 of 23 recommendations made in that 2009 audit. Two recommendations are no longer applicable.

"I am encouraged by the improvements the City has made, as well as its continued commitment to further progress," said Philip James Degnan, acting state comptroller, in a statement.

The report comes several months after Camden's contract with United ended. Voorhees-based American Water took over operation of the majority of the water and sewer systems in February.

Still, the report found that United has addressed many of the concerns outlined in the 2009 audit from the comptroller's office, which found that as much as 45 percent of the water supply was lost to leaks, overflow, meter inaccuracies, and billing mistakes.

United has since significantly reduced water loss, according to the report, and developed a record-keeping system documenting maintenance like meter calibration, fire hydrant repairs, and water filtration. The company also conducted rate studies through 2013, though the report noted that rate studies have not been done in the last two years, and rates have not been adjusted since 2009.

United improved its billing and collections system, the report found, although the company did not provide the state with records regarding closed accounts and outstanding balances.

The report also noted that the city is still not following proper disposal procedures at its plants, and that as of May 2015, city officials had not conducted an inventory of the city's water and wastewater assets.

"Further, the city could not provide evidence that there had been a manual inventory count since our initial audit," the report states.

A 20-year, $215 million contract with US Water, which later became a subsidiary of United, was approved in 1998 by local and state officials despite strong community opposition. The contract included no standards or requirements for upgrades, and complaints about flooding, sewer backups, and billing practices persisted for years.

United and the city eventually sued each other, both claiming they were owed millions.

United officials have said that the company inherited the contract when it acquired US Water, and that a 2012 court settlement mandating repairs to the system paved the way for improvements.

NJ American Water, a regulated state subsidiary whose parent company is American Water, has for decades owned and operated a system providing water for Camden's Cramer Hill section, serving about a third of Camden's residents. When American Water took over the system, representatives said the company would work with city leaders on prioritizing capital improvement projects.

asteele@phillynews.com 856-779-3876 @AESteele