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Q: Water treatment service contracts ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: Water treatment service contracts
Category: Miscellaneous
Asked by: blucken-ga
List Price: $200.00
Posted: 10 Mar 2005 15:18 PST
Expires: 09 Apr 2005 16:18 PDT
Question ID: 491984
I am looking for average cost for a water service contract from such
companies as US Filter, Veolia, Severn Trent, etc. for the cost to
treat wellhead groundwater for public utility drinking water on a $/
1000 gallon basis. Examples of contracts, range of approximate costs,
etc. would be great. I am not looking for exact data but a range or
example etc.

If information is available for US, Europe and China also would be great

Will pay large tip for help
Answer  
Subject: Re: Water treatment service contracts
Answered By: belindalevez-ga on 12 Mar 2005 07:12 PST
Rated:5 out of 5 stars
 
<Water treatment contracts.

Summary.
Prices per 1000 gallons.
1 - $0.54
2 - $0.54
3 - $0.75
4 - $0.375
5 - $0.03
6 - $0.27

-------------------------------------
References.

1.
San Juan Capistrano, California ? approximately $0.54 per 1000 gallons.
Southwest water has a contract to operate the treatment plant for 5
million gallons of groundwater each day under a $20 million, 20 year
contract. (Source: Southwest Water.)
http://66.102.9.104/search?q=cache:dHZJJtuEZgwJ:www.southwestwater.com/ar03/presletter2.htm+%22city+of%22+wells+%22contract+with%22+treatment&hl=en

The facility uses reverse osmosis technology to treat up to 5.1
million gallons daily of highly mineralised local groundwater from six
wells. (Source: Southwest Water and San Juan Capistrano Dedicate New
Groundwater Recovery Plant.  March 2, 2005. Yahoo! Finance.)
http://biz.yahoo.com/bw/050302/25201_1.html

This article discusses some of the conditions of the contract which
include the following:
As long as the particulates in the brackish water remain below a
certain level, treating the water is ECO's responsibility. If the
particulates exceed that limit, or if the law changes, the city foots
any additional cost.
ECO will provide a predetermined amount of water-4,800 acre-ft
annually-for a fixed price. If it costs more to produce the water than
it says in the contract, that's their risk.  Areas of shared risk
include fluctuation in power costs. The contract also stipulates a
certain life expectancy for the equipment and requires that worn-out
components be replaced. At the end of 20 years, the city can choose to
take over the plant or renew Southwest Water's contract. (Source:
Financing Opens Tap to Sweet ?Water Solution. By Paul Rosta. Design
Build.)
http://designbuild.construction.com/features/archive/2004/0404_feature1.asp
--------------------------------------------------
2.
City of Hinesville OMI Inc ? $0.54 per 1000 gallons.
The water comes from an activated sludge wastewater treatment plant
(5mgd) and four wells producing 3.3 million gallons per day. (Source:
The National Council for Public-Private Partnerships.)
http://ncppp.org/cases/hinesville.html

In 1998, the operational contract budget for water supply services was
$1,647,851 including:
Administrative expenses - $243,700
Meter reading and maintenance ? 323,804
Water laboratory and pump maintenance (water production) $597,403
Minor construction and line maintenance/work $482,944.
(Source: Association County Commissioners of Georgia.)
http://www.accg.org/detail.asp?ID=164

----------------------------------------------------
3.
El Paso County - $0.75 per $1000 gallons.
A reverse osmosis plant treats four million gallons of well water.
(Source: The National Council for Public-Private Partnerships.)
http://ncppp.org/cases/elpaso.html

Southwest water has a $22 million, 20 year contract to operate the
treatment plant. (Source: Southwest water.)
http://64.233.183.104/search?q=cache:XRVvZ9HVsKAJ:www.southwestwater.com/ar00/ops2.htm+%22el+paso+county%22+eco+%22contract+with%22+water&hl=en

-------------------------------------------
4.
The City of Hamilton - $0.375 per 1000 gallons. (Price converted to US dollars.)
The City of Hamilton owns one surface water plant and four ground
water communal well systems operated by American Water Services Canada
Corp.
Operating costs for the water supply system have been increasing as
the operating contract with American Water Services provides for
annual payment adjustments for fixed and variable expenses based on
the addition of new facilities, inflation, utility rate changes and
flow variations.

Costs  to produce 1000 litres
2003 - $99.64
2002 - $98.93
2001 - $73.72

Operating costs 
2003 $10,089,264 for 101,347 megalitres.
2002 $10,337, 855 for 104,492 megalitres.
2001 $8,051,963 for 109,225 megalitres
(Source: City of Hamilton.)
http://www.city.hamilton.on.ca/public-works/water/2005-water/pdf/2Accountability-and-Asset-Management.pdf

--------------------------------------------
5.
Indianapolis Water Services Partnership - $0.03 per 1000 gallons.
The system has four service plants and eight groundwater (well)
systems. Output is 140 million gallons a day.
Operated by US Filter under a 20 year contract. Operating and
maintenance services are $1.1 million a year. Capital improvements
costs are $400 million a year.

Details of the contract terms include:
US Filter conducts operation with oversight by the Department of Waterworks.
Management and operation aspects of all water treatment facilities,
pumping and distribution systems, maintenance of structures and
facilities, meter reading functions, meter installations, meter
maintenance, water utility billing an collection functions, customer
services, improvement planning and etc. The contract operator would
formulate suggested plans and programmes and final approval rests with
the Department of Waterworks.
All regulatory requirements must be met.
Infrastructure must be maintained in as good state of repair as
existed upon take over.
Service levels to be as good as previous owner during the previous
three years of operation.
Performance metrics include:
Customer service response times.
Meters service standards
Water quality standards.
Water quantity planning.
Taste and odour issues.
Availability of equipment and processes.
Adequacy of supplies.
Contract compliance.
Availability of records.
The contract allow for the payment of a fixed fee and an incentive fee
(there are 40 incentive measurements).
The transition plan cover arrangements for personnel and operations.
All certified unions representing the original staff must be recognized.
Substantially comparable benefits must be offered to staff.
(Source: The Government of the Hong Kong Special Administrative Region
of the People?s Republic of China.)
http://64.233.183.104/search?q=cache:C9n_BI8J_QEJ:www.etwb.gov.hk/FileManager/EN/whats_new/reprovisioning_sha_tin_water_treatment_works/Supply%26Dist%2520Final%2520Report-Annex%25202.pdf+%22groundwater+treatment%22+%2220+year+contract%22&hl=en
----------------------------------------------
6. Torrance ? $0.27 per 1000 gallons
Southwest Water has a $1 million, 5 year contract with Torrance,
California to run a reverse osmosis treatment plant. (Source:
Southwest Water.)
http://64.233.183.104/search?q=cache:0MvYJqRdhXgJ:www.southwestwater.com/news/nr120401.htm+torrance+water+treatment&hl=en
------------------------------------------

<Additional links:>

<2005 price rise.
The OMI contract with Americus was renewed in 2005 with a 2% price
increase. The reasons for the increase were given as operating expense
and price increase.>
<http://www.americus-online.com/2004cminutes.htm>
------------------------------------------------------

----------------------------------------------------
United Kingdom.
OFWAT produces yearly financial reports on the UK water companies.
http://www.ofwat.gov.uk/aptrix/ofwat/publish.nsf/Content/navigation-publications-f-j



This report from OFWAT gives 1997-98 cost of operations per cubic
metre for water companies in the UK. It also gives cost to customers,
cost of capital maintenance and return on capital. Later reports are
not presented in the same way. However according to the 2003-04 report
operating costs have risen 0.1% since 98/99, so accounting for this,
you can get an approximation of current operating costs.
http://www.ofwat.gov.uk/aptrix/ofwat/publish.nsf/AttachmentsbyTitle/finaleff.pdf/$file/finaleff.pdf

-----------------------------------------------
-----------------------------------------------
China

In 2002, Vivendi won a contract in  Shanghai worth almost $10 billion.
The deal is to operate and manage the water distribution system for 50
years.
Vivendi was awarded a $20 million, 20 year contract to operate and
renovate a water treatment plant in Tiannjin China (Source: Polaris
Institute.)
http://www.polarisinstitute.org/corp_profiles/public_service_gats/corp_profile_ps_vivendi.html

Vivendi Shanghai
Under the terms of the contract, Vivendi Water buys a 50% share in a
new Joint Venture Company, Shanghai Pudong Vivendi Water Corporation
for 266 million Euros. The contract will supply potable water at the
rate of 1.2 million cubic metres per day.
http://www.veoliawatersystems.com/uk/CP_311001/shanghai.htm

More details about the Shanghai contract are given here. 
(Source: The Government of the Hong Kong Special Administrative Region
of the People?s Republic of China.)
http://64.233.183.104/search?q=cache:C9n_BI8J_QEJ:www.etwb.gov.hk/FileManager/EN/whats_new/reprovisioning_sha_tin_water_treatment_works/Supply%26Dist%2520Final%2520Report-Annex%25202.pdf+%22groundwater+treatment%22+%2220+year+contract%22&hl=en>


<Additional links:>
<UK ground water issues.>
<http://www.groundwateruk.org/html/issues2.htm>


<Search strategy:>
<"water treatment charges">
://www.google.com/search?hl=en&lr=&rls=GGLD%2CGGLD%3A2004-31%2CGGLD%3Aen&q=%22water+treatment+charges%22

<"drinking water" "capital costs" wells "city of" "contract with">
<://www.google.com/search?sourceid=navclient&ie=UTF-8&rls=GGLD,GGLD:2004-31,GGLD:en&q=%22drinking+water%22+%22capital+costs%22+wells+%22city+of%22+%22contract+with%22>

<"city of" wells "contract with">
<://www.google.com/search?hl=en&lr=&rls=GGLD%2CGGLD%3A2004-31%2CGGLD%3Aen&q=%22city+of%22+wells+%22contract+with%22&btnG=Search>
<"contract with veolia">
<://www.google.com/search?hl=en&lr=&rls=GGLD%2CGGLD%3A2004-31%2CGGLD%3Aen&q=%22contract+with+veolia%22>

<"contract with vivendi">
<://www.google.com/search?hl=en&lr=&rls=GGLD%2CGGLD%3A2004-31%2CGGLD%3Aen&q=%22contract+with+vivendi%22+>


<Hope this helps.>

Request for Answer Clarification by blucken-ga on 12 Mar 2005 15:31 PST
If you could give more examples of well (groundwater) situations only
not including wastewater or entire facilities that would be helpful.
Any more for Europe or China or other Asian nations would be great.
But what you have so faris great. Additional info would net a big tip
Thanks

Clarification of Answer by belindalevez-ga on 13 Mar 2005 07:48 PST
<I am only able to find details of one other groundwater treatment
plant that also has figures available.

As regards China and Europe, the major contracts there all seem to be
for river water and surface water.

Camden, New Jersey ? $0.95 cent per 1000 gallons.
Operated by United Water under a 20 year $215 million contract
Camden gets it water from wells.
There were no standards built into the contract, and no requirements
for the company to upgrade infrastructure. (Source:
Publicintegrity.org.)
http://www.publicintegrity.org/water/report.aspx?sID=ch&rID=54&aID=57

The water service contract in Camden in worth $7.3 million in annual
revenue. (Source: United Water.)
http://www.unitedwater.com/pr080102.htm

Two plants are operated with a combined capacity of 21 million gallons
per day. (Source: United Water.)
http://www.unitedwater.com/pdfs/camdeneW.pdf

--------------------------------------------------------
Costs of various treatment methods.

Cost of membrane treatment facilities.
The Town of Jupiter operates a membrane treatment facility using
brackish water from an underground aquifer.
Operating costs are $0.85 per 1000 gallons.
(Source: Greenberg Traurig LLP.)
http://www.gtlaw.com/pub/articles/1998/gildan98.htm

The City of Palo Alto reports that the estimated cost of operating a
reverse osmosis plant
is $260,000 (City of Palo Alto.)
http://www.cityofpaloalto.org/cityagenda/publish/uac-meetings/3354.pdf

Palo Alto?s water needs are 13.26 million gallons per day. It is
estimated that the wells could produce 25% of the city?s needs (3.31
million gallons per day.) This works out at a cost of $0.21 per 1000
gallons. (Source: Bay Area Water Supply & Conservation Agency.)
http://216.239.59.104/search?q=cache:KeYHd-SYx5AJ:bawua.org/agencies/PALOALTO.pdf+%22palo+alto%22+%22drinking+water%22+gallons&hl=en

Calgon Carbon was awarded a $6.5 million contract to remove
perchlorate from groundwater.
35 million gallons per day. (Source: Catalyticcarbon.com).
http://www.catalyticcarbon.com/ccc/news/2002_04_12.html

Groundwater treatment plant.
Operating costs $227.66/AF including wells, air strippers, boosters,
ISEP, brine disposal Rayox, peroxide and, maintenance and labour.
(Source: Full-Scale ISEP(R) Groundwater Treatment Plant.)>


<Hope this helps.>
blucken-ga rated this answer:5 out of 5 stars and gave an additional tip of: $50.00
I have a similar request for waste water treatment - please help!

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