1

Liz Kelly, Vice President CH2M

Previously Director of Project Management and

Engineering at Seattle Public Utilities

Seattle Public Utilities

Two Large Treatment Facilities

DBO Projects

Tolt Treatment Facility DBO

Cedar Treatment Facility DBO

and other musings…

2

Slide 2

Why Seattle Considered Alternative Approaches?

• Lack of Project Type Experience

• Experienced Private Vendors

• Potential Cost Savings

• Organizational Needs

• Looking for Greater Efficiencies

• Looking for Improvements Over Conventional Design-Bid-Build

• State Statute

3

Slide 3

Alternative Models Considered

• Conventional Design-Bid-Build

• Private Ownership and Operation (BOOT)

• Design-Build (DB)

• Design-Build-Operate (DBO)

4Slide 4

Seattle’s Tolt Treatment Facility Design-Build-Operate Project

• Seattle’s first major treatment facility

• Facility Size = 120 MGD

• ozone and filtration

• Service Agreement was executed in May 1997

• Construction started in May 1998

• Facility operational in 2000

• 25 year life cycle cost savings are estimated at $56M (about 33%)

5Slide 5

Seattle’s Cedar Treatment Facility Design-Build-Operate Project

• Facility Size: Initial = 180 MGD, Ultimate (and some components initially) = 275 MGD

• ozone and UV treatment

• DBO and DB components

• RFP Issued in April 2000

• Facility operational in 2004

• 25 year life cycle cost savings are estimated at $45M (about 27%)

6

Slide 6

South Fork Tolt Reservoir

7

Slide 7

Extra slides for use as needed

Tolt Water Treatment Facility

View of Operations from Main Entry

8

Slide 8

Tolt WaterTreatment Facility

Main Corridor

9

Slide 9

Tolt Water Treatment Facility

Filter Deck

10

Slide 10

Extra slides for use as needed

Tolt Water Treatment Facility

Filter Gallery

11

Slide 11

Tolt Water Treatment Facility

Ozone Generators

12

Slide 12

Cedar Water Treatment Facility

Intake Structure

13

Slide 13Ozone Building

Cedar Water Treatment Facility

14

Slide 14Ultravoilet Disinfection Building

Cedar Water Treatment Facility

15

Slide 15Finished Water Storage Tanks

Cedar Water Treatment Facility

16

Slide 16Operations Building

Cedar Water Treatment Facility

17Slide 17

A Suggested DBO Project Philosophy

• Specify Performance Requirements• Integrated Vendor Teams Respond

• Encourage Technical Innovation• Use Competition in Innovation & Price

• Assign Risk to Party Best Able to Manage It

• Communications• Public/Stakeholders

• Elected Officials

• Culture of Partnership• Owner Sets the Tone

18Slide 18

Better Contract Provisions Long Term Contracting

• Continue to Innovate• Incorporate Incentives into the Contract

• Provisions for Changing Needs• Primarily an Administrative Issue

• Focus Beyond Term of Contract• More than “end of term provisions”

• Asset Management• Consider ISO 55000• Or,… simply requiring annual Asset

Management Plans