New London — The water authority has recommended the city negotiate a $66-million, 10-year water and wastewater service contract with Houston-based Veolia Water.

If the council decides to hire Veolia, the company would take over the day-to-day operation of the water and wastewater system on March 24. The utility, which employs 34, has been run by private companies since 1997.

The City Council is scheduled to vote Monday on the recommendation of the Water and Water Pollution Control Authority, which selected Veolia over a more costly offer from United Water of New Jersey at its Thursday meeting.

United's bid for a 10-year contract was $77 million, an average of $1.1 million more for each year of the contract, according to the city's bid-tabulation form.

In addition to the lower cost, Veolia asked for fewer exceptions to the city's proposal for running the utility, said Barry Weiner, chairman of the water authority.

The utility provides water to about 14,000 customers in New London and Waterford, and owns a wastewater plant that treats nearly 9 million gallons of sewage a day for 6,000 customers in New London, Waterford and East Lyme.

The water authority is also recommending to the council that the city enter a 10-year contract instead of the five-year agreement with Earth Tech of California.

“The 10 year did offer advantages to the city in price and consistency,” Weiner said.

Earth Tech has operated the utility since 2003, but the company didn't submit a proposal when the city requested bids late last year, Weiner said.

Veolia and United were the only companies to submit proposals to operate the utility. Consolidation in the utility-management industry may explain the low number of bids, said city Councilor Rob Pero, a former council liaison to the water authority.

When the City Council selected Earth Tech in 2003, it was able to pick among around a half-dozen bidders, Pero said. “You don't have the competitiveness you used to have,” he said.

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