Transcript Municipal capabilities 2007

The Tampa Bay Water
Surface Water DBO
Joe Ortiz
U.S. Conference of Mayors
November 19, 2008
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Veolia Water North America
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Tampa Bay Water
Significant DBO
project
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Milwaukee – largest
U.S. wastewater
agreement
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Indianapolis – nation’s
largest, most innovative
partnership
No. 1 market leader with ~38% share in
U.S., Canada and Caribbean*
Approximately 600 communities served
in 38 states; 300 municipal facilities
Manage largest U.S. water public-private
partnership (Indianapolis)
Manage largest U.S. wastewater
partnership (Milwaukee)
Manage largest U.S. DBO (Tampa Bay)
Provide industrial/commercial water
partnerships and operating services at
100+ facilities
Largest number of U.S. industrial
projects (customer base includes many
Fortune 500 companies)
*Source: Public Works Financing, April 2008
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Municipal Projects
+180 partnerships serving 600 communities
NORTHEAST
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Plymouth, MA
Woonsocket, RI
Cranston, RI
Leominster, MA
Wilmington, DE
Danbury, CT
SOUTH
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Tampa Bay, FL
New Orleans, LA
Atlanta-Fulton County, GA
CENTRAL
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Indianapolis, IN
Chicago, IL
Milwaukee, WI
Springboro, OH
WEST
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Richmond, Palm Springs,
and Burlingame, CA
Vancouver, WA
Gresham, OR
Great Falls, MT
Honolulu, HI
CANADA
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Moncton, New Brunswick
Toronto, Ontario
Brockton, Ontario
CARIBBEAN
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St. Thomas, St. Croix, VI
Antigua developments
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Partnerships deliver value to citizens
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Added Value to Citizens
Improved customer services,
operating metrics and
compliance while stabilizing
rates, lowering costs
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Public control and ownership is
supported by private-sector expertise
and experience
Performance-based contracts deliver:
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Exceptional water quality
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Environmental compliance
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Customer service metrics
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Operations metrics
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Capital asset management
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Community involvement
Lower costs and rate stabilization
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We’ve proven the PPP model.
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New
photo/s
Oldest Partnership
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Largest Partnership
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Burlingame, Calif. (35 years)
Indianapolis
All types of communities, large
and small, benefit from
partnerships.
Operations and maintenance
agreements and design-buildoperate agreements have been
applied to all facets of assets –
from biosolids to drinking water.
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We believe in public control
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Water is a local issue.
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You continue to own and
control assets.
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Your community continues to
exercise control over rates.
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We support you as the
technical operator and
customer service provider.
A San Francisco suburb, Burlingame,
California, was the nation’s first community
to take advantage of a partnership, beginning
in 1972. We’ve served ever since!
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Design-Build-Operate: Track Record in Tampa
Leads to Largest U.S. Project
Expertise, experience to
provide innovative solutions
and benefits.
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Industry leader in municipal
DBO projects for water and
wastewater treatment
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Completed hundreds of
capital projects, providing
design, construction and O&M
services
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Single point of responsibility
and accountability
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Less expensive and faster
project delivery method
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TBW member governments
Hillsborough, Pinellas, and Pasco
Counties, St. Petersburg, Tampa,
and New Port Ritchey
TBW currently provides 189 mgd of
drinking water to over 2 million
citizens
Tampa Bay team delivers on DBO, builds relationship
 Difficult-to-treat variable water quality addressed with Actiflo
technology
 DBO solution delivers 66-MGD facility and helps save $80
million
 Proven technology, established proven working relationship and
intimate knowledge of operation
 Keller Degasification Plant (33 MGD)
 Reservoir (15 billion gallon capacity)
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Existing Regional Surface Water Treatment
Plant
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Tampa Bay Water- Where we are
2.5 Million
Residents Served
230 mgd total public
supply average daily
flow
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Objectives for Agency
 Dual
commitments to the Tampa Bay
Community:
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Reduce production at existing well fields
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Meet growth in demand
 Configuration
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I program
Develop new surface water and desalinated
seawater supplies
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Why Plunge into Public-Private Partnerships?
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Tampa Bay Water operated a groundwater-only system up to
1998
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No O&M experience with surface water or desalination water
supply
Tampa Bay Water Board’s desire to shift O&M risk to
private operator
Potential long-term savings if private sector stakeholders
involved in project development from the outset
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Surface Water Treatment Plant DBO Summary
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Original project 2000-2002
► 66-mgd capacity
► $85 million capital cost
► 15 year O/M agreement
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Expansion project 2007-2010
► 120-mgd capacity
► $127 million capital cost
► 5 year O/M extension
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SWTP Expansion: Putting the Lessons Learned
into Action
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October 2006 - Negotiate with existing contract developer,
Veolia Water NA
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Confidence in partnership based on performance
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Maximize previously negotiated terms and conditions
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Keep risk with existing contract operator
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Apply lessons learned in original project procurement
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Tampa Bay: Partnership Scope Expansion to 120 MGD
Negotiated
Procurement
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TBW Board ratification
April 16, 2007
Tampa Bay builds on success of DBO
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Achieves 72-MGD rating and has 19 employees
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Expansion of Surface Water Plant to 99 MGD
with 120 MGD capacity and 27 employees
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$126.7 M Capital Expansion
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Veolia equipment sourced
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42-month construction schedule
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Cost plus structure with incentives
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Approximately $32M increased O&M revenue
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5-year contract extension
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Open-Book, Design-Build Project Delivery
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Competitive bidding of 48 sub-contracts and purchase orders
greater than 0.1% of GMP ensures market competitive pricing
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Exceptions:
► 7 sole source purchases
► Negotiated engineering and construction management fees
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Bid packages and award recommendations approved by Tampa
Bay Water
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Private Partnership Summary
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They work!
Allocate risks appropriately and take the time to
develop a full understanding between partners
► Select partners carefully, the relationship needs
to endure
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TBW Surface Water Treatment Plant
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