City of Columbia South Carolina. Discussion of Public Private Partnership. April 24, 2012

Transcription

1 City of Columbia South Carolina Discussion of Public Private Partnership April 24,

2 KEY HISTORICAL DATES Rich 142 Year History 1869-Founded as Hackensack Water Company 1890-Listed on the New York Stock Exchange 1930-First use of charcoal filtration 1989-Nation s largest ozone filtration plant 1994-Merger with General Water 2000-Acquisition by Suez Environnement 2

3 BUSINESS SEGMENTS Regulated Businesses Owner & manager of 20 water and wastewater utilities in 8 states Population served: 2.1 million Highly capital intensive business with low risk profile Contract Operations 100 public-private partnerships in 16 states Population served: approximately 5.1 million Low capital needs with higher risk profile Largest Company with Mixed Portfolio of Investor Owned Utilities and Public Private Partnership projects 3

4 UNITED WATER OPERATIONS ACROSS THE US 4

5 FACTS AND FIGURES - UNITED WATER Employees 2,600 Total assets $2.5 billion Revenues $800 million Office Locations Harrington Park, NJ Indianapolis, IN Grand Rapids, MI Springfield, MA 5

6 FACTS AND FIGURES -SUEZ ENVIRONNEMENT Headquartered in Paris, France with global presence 112 million population served with drinking water and wastewater treatment 80,000 employees 12,000 municipal and 4,000 industrial treatment plants built 3,000 municipal contracts $95 million budget for water research at six research and development centers 6

7 Spectrum of Options Consulting Review (1-2 Years) tap United Water s expertise but rely on current City staff to implement ideas. Phased approach with agreed upon savings targets implemented by City. Operation & Maintenance Outsourcing (5-10 years) lowest O&M cost while partnering with United Water. Concession or Monetization (20-50 years) Creates upfront concession payment combined with O&M contract to pay off debt or finance additional debt of LTCP. O&M savings are realized at start of contracting period. 7

8 Benefits of Options Option Consulting Review O&M Outsourcing Concession Benefits Employees remain with City Least political disruption Immediate savings Guaranteed performance Employee training and opportunities City still keeps control Same as O&M Outsourcing Assets converted into $$ $$ used for other City needs 8

9 CLIENT SERVICES Water Plant Operation and Maintenance Wastewater Plant Operation and Maintenance Design Build Operate Customer Service, Billing and Collection Metering Services 9 9

10 MAINTENANCE PLAN Reliability Centered Maintenance Management Establish procedures that maximize efficient use of assets Prevent catastrophic failures Develop engineering solutions for reoccurring problems Integrate predictive, preventive and corrective maintenance with asset management Computerized Maintenance Management System (CMMS) Work order management Preventive and predictive maintenance Asset management Scheduling and work management Inventory Establish Maintenance, Replace & Repair Budget Pass through account removes maintenance as a profit center 10

11 ENVIRONMENTAL CHARTER The environment is at the heart of our business We are committed to operating in a manner that is compatible with the long term sustainability of ecosystems we affect. 11

12 ENVIRONMENTAL COMPLIANCE PROGRAM GOALS Achieve full compliance with applicable regulations, environmental statutes, licenses and permits and federal, state, and local compliance requirements as well as internal requirements Promote compliance awareness Maintain transparency in compliance and reporting Prevent non-compliance 12

13 HEALTH AND SAFETY CULTURE Annual health and safety audit Defined health and safety roles and responsibilities Emergency organization planning Health and safety action planning Objectives, indicators and goals Occupational health policy Reporting and posting safety results Safety bonus program Safety training program 13

14 COMMUNICATIONS City Officials Meetings and monthly, quarterly and annual reports Regulatory and Government Relations Designate individuals to serve as liaisons Media Relations Open, honest, timely and ongoing communications Customer Communications Frequent and transparent communications using a variety of tools 14

15 CUSTOMER SERVICE Customer Service Initiatives Customer service Billing and collections Metering services Facts and Figures Customers: 660,000 in 20 business units Call centers: 10 Largest center: 29 reps/265,000 calls annually Bills: 4 million prime bills annually Goals Provide excellent value service with strong local identity Become an integral part of the communities we serve 15

16 United Water Partnership Benefits Immediate Cost Savings Reduction of annual operating costs by approximately % Enhanced service through innovation, increased productivity, supply chain leverage, improved maintenance, increased efficiency and smart management Lowest Cost of Ownership Revenue enhancement, capital planning, timely repair and replacement Guaranteed Regulatory Compliance Compliance with all applicable regulations Pay100 % of any fine due to our operations Unmatched experience negotiating with regulatory agencies Staffing All staff become United Water employees, less than 1% attrition rate Transitioned more US employees over last 10 years than entire industry City no longer faces daily employee personnel issues, grievances or reprimands Greater opportunities for career training and advancement Corporate Social Responsibility Environmental Initiatives Educational Programs Humanitarian Services 16

17 City of Columbia Utility System Water System 375,000 customers in the City and within Richland and Lexington Counties 147 MGD Total Design Flow, 60 MGD Average Daily Flow Columbia Canal WTP 72 MGD Lake Murray WTP 75 MGD 2400 miles water lines Wastewater System 63,000 customers in the City and within Richland and Lexington Counties Metro WWTP 60 MGD Design Flow, 30 MGD Average Daily Flow 1000 miles of sewer lines and over 75 Lift Stations Operating Budget (less capital and internal charges) FY 11/12 Final FY 12/13 Req. Delta Customer Service $ 1,721,650 $ 1,832,092 $ 110,442 Water Customer Ser. $ 2,910,444 $ 2,978,794 $ 68,350 Water Distribution $ 9,048,771 $ 9,505,229 $ 456,458 WW Maintenance $ 6,860,807 $ 7,098,173 $ 237,366 Columbia Canal WTP $ 5,957,609 $ 6,042,782 $ 85,173 Lake Murray WTP $ 5,768,148 $ 5,763,577 $ (4,571) Metro WWTP $ 10,932,207 $ 15,198,379 $ 4,266,172 $ 43,199,636 $ 48,419,026 $ 5,219,390 17

18 Columbia's Previous Experience Envirotech Operating Systems (EOS) Awarded a $2.6 Million contract in 1991 to operate the Metro WWTP for 3 years Not renewed in 1994, City takes back operations in August Problems Controversial Award - 18 month negotiation, 4-2 vote by council, 1 abstained Low Bid change orders, low staffing Contract began poorly Plant by-passes, DHEC fines, equipment repairs Lack of transparency Poorly defined scope and financial documentation Core Issue Cost savings not clearly defined Allegations by City cost cutting affecting plant performance Lack of support by Administration and Staff Strong objections by Staff and assistant City Manger Marginal support by Council Mayor only Champion Not a true Partnership Lack of win-win attitude Solution Performance based contract with a clearly defined scope supported by all stakeholders with the goal to develop a successful Public Private Partnership 18

19 PONTIAC, MICHIGAN Client: Facilities: Capacity: Customers: City of Pontiac, MI Operations, maintenance and management of the water distribution system, two wastewater treatment plants, storm and sanitary sewer collection systems; 254 miles of mains, 239 miles of sanitary sewer, 127 miles of stormwater sewer has 127 miles; Industrial Pretreatment Program; meter reading, billing and collections, customer service 7.8 MGD water; 26 million gallons per day wastewater 70,000 residents and business Signed: 2011 Achievements Yielded a 2.8 million dollar savings to the city s previous O&M budget. 19

20 WEST BASIN, CALIFORNIA Client: Facilities: Capacity: Customers: West Basin Municipal Water District O&M of internationally acclaimed water recycling program, project management and operation of highly technical unit processes for treating wastewater to quality levels (drinking standards, ultra pure water for refineries); laboratory services, R&D project management (including seawater desalination 41.8 MGD recycling facility 900,000 (200 Recycled Water Customers) Signed: 1994 Achievements Largest water recycling plant in the United States 2009 Service Award winner, National Council for Public-Private Partnerships Named a National Research Center by the National Research Institute 20

21 HAWORTH, NEW JERSEY Owner: Facilities: Other: Capacity: United Water Water treatment plant; 2,000 mile Water distribution system Customer service, billing and collection 200 MGD Customers: 800,000 Since: 1869 Achievements $100 million upgrade of facility, to utilize Dissolved Air Flotation (DAF) technology for sedimentation clarification Largest capital investment in United Water history Largest water treatment plant in the United States utilizing DAF technology 21

22 JERSEY CITY, NEW JERSEY Client: Facilities: Other: Capacity: Jersey City Municipal Utilities Authority Water treatment system, 5,688 acres of watershed, 23 mile aqueduct, 275 miles of mains Customer service, billing & collection, marketing excess water 80 MGD water treatment plant Customers: 239,000 Signed: 1996 Achievements Improved collections from $40 million to $77 million Installed 30,000 new meters and RF devices Improved meter reading to an average of 97% Full SDWA compliance without significant capital improvement on 1975 plant Awards National Council for Public Private Partnerships Outstanding Project Award 22

23 INDIANAPOLIS, INDIANA Client: Facilities: Other: Capacity: Customers: City of Indianapolis, Indiana Two advanced wastewater treatment plants collection system, dam City of Indianapolis, Indiana 250 MGD combined capacity 800,000 residents, 41,000 businesses Signed: 1994, extended in 1997 Achievements 98% decrease in employee grievances 85% decrease in accidents 70% reduction in effluent violations $1 million R&D investment Awards NACWA Platinum and Gold Awards U.S. Conference of Mayors Outstanding Public-Private Partnerships Award Mayor s Diversity Award 23

24 JACKSON, MISSISSIPPI Client: Facilities: City of Jackson, Mississippi Operate and Maintain 3 treatment plants, 98 lift stations, the city s IPP program, land application program, and a certified lab Capacity: Savanna WWTP 92 MGD peak design flow Trahon/Big Creek WWTP design capacity of 4.5 MGD President Hills WWTP design capacity of 0.75 MGD Customers: 260,000 residential and commercial customers Signed: 2010 Achievements identified and corrected several major maintenance concerns at the three facilities assisted the City to negotiate new NPDES permit requirements minority vendor and community outreach initiatives have been exemplary 24

25 SPRINGFIELD, MASSACHUSETTS Client: Facilities: Springfield Water and Sewer Commission Activated sludge plant Customers: 275,000 Capacity: 67 MGD Signed: 2000 Achievements Over $14 million of capital improvements including DBO of bio-solids system and CSO automated monitoring system Elimination of permit exceedances Significant cost savings in energy and natural gas Awards American Public Works Association Community Education Award WEF TECH Innovation Technology Award 25

26 PROVIDENCE, RHODE ISLAND Client: Facilities: Narragansett Bay Commission (NBC) of Providence, Rhode Island Management services for the operation and maintenance of Bucklin Point Treatment Facility Customers: 130,000 Capacity: Up to 116 MGD Signed: 2005 Achievements Proposed treatment technologies (IFAS BNR) proven to address nitrogen regulations. Extremely high effluent quality helps ensure water healthiness of Narragansett Bay Awards Most Improved Advanced Wastewater Facility, 2006 Most Efficient Advanced Wastewater Facility, 2007, Narragansett Water Pollution Control Association Silver Award from National Association of Clean Wastewater Agencies for effluent compliance 26

27 Why Partner with United Water Successful track record Compliance Savings Community Involvement Minority/Local Business Partnerships A proven leader/owner/operator in all aspects of the water & wastewater industry Financial Strength (A-) Credit Rating by S&P for major utilities Ready To Invest In A Long Term Partnership To Achieve The City s Objectives 27 27