Alternative Project Delivery - Texas Water Development Board

Section 4
Pursuant to stringent timing requirements, the Partnership Agreement calls for the
phased reduction of pumping from eleven existing wellfields serving the Tampa Bay
region as new water sources are developed. The Agreements specifically require TBW
to reduce its average daily withdrawals from the eleven wellfields.
The Water Master Plan projects currently being developed or under construction
include the following:
• 66 mgd surface water treatment plant;
• 25 mgd seawater desalination plant;
• 9 mgd groundwater treatment plant;
• 15 billion gallon offstream reservoir; and
• 47 miles of large diameter pipe.
These projects include 174 environmental/construction permits and acquisition of land
rights on 266 parcels of land. The budget for the construction of these projects
exceeds $609.
TBW’s objective in executing the Water Master Plan was obtaining the highest water
quality at the lowest possible cost for its members. It evaluated the entire capital
improvement program for opportunities to reduce costs through alternative project
delivery methods. Based on the evaluation, TBW selected DBO project delivery for
the surface water plant as having the most benefit to the Authority.
On April 10, 2000, the TBW board of directors approved the $135 million agreement,
which is one of the largest water treatment DBO contracts in the United States and an
essential component of the plan to meet the region’s need for new water supplies. The
contract includes approximately $79 million in capital costs and $56 million in
operation and maintenance fees over the initial 15-year term and a five year option
period. The new water treatment plant will treat water at a rate of 53.8 cents per
gallon, significantly lower than earlier project cost estimates.
Facility:
Developer:
Project Summary
66 MGD surface water treatment plant
U.S. Filter, CDM & Clark Construction (“USFOS/CDM”)
• USFOS/CDM will design, build and operate a filtration/ozonation plant for $80
million.
• TBW retains ownership and liability for future capital requirements.
• TBW provides financing for the project.
• Company guarantees on project.
Benefits
• Risk mitigation
• Performance guarantees
4-8 Texas Water Development Board B1381-Sect4