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Payments to Private Water Company Climb Steeply
August 9, 2004
Operating costs for the treatment of water and sewage in Hamilton jumped sharply over the past two years according to a performance report released by the city this week. The cost of treating drinking water climbed 35% between 2001 and 2003, while wastewater treatment went up 22% in the same period.
The information is included in the Municipal Performance Measurement Program report that Ontario cities are required to issue every year. Water treatment costs rose from $8 million to $10 million, and the wastewater component jumped $3.3 million to $26.5 million last year.
The report provides the same explanation for both increases: "Operating costs .have been increasing as the operating contract with American Water Services provides for annual payment adjustment for fixed and variable expenses based on the addition of new facilities, inflation, utility rate changes and flow variations."
The increase in sewage flows over the two year period was only 6% while the amount of water treated actually dropped by over 7%.
In a controversial decision in February, City Council voted 10-6 to continue private operation of Hamilton 's water and sewer system. American Water Services is one of four companies that have been selected to submit bids for the 10 year contract. The other three are ATCO Frontenac, CH2M Hill-OMI and Veolia Water. Their detailed proposals were due on July 29.
The winner will be revealed at the September 13 meeting of the Public Works committee, and the final decision made two days later at the full meeting of city council on September 15. Three other companies submitted pre-qualification proposals but didn't make the short list. They were the Ontario Clean Water Agency, SNC Lavalin Profac and United Utilities. Several updates on the process are on the city's website at
http://www.city.hamilton.on.ca/
public-works/water/water-wastewater-
treatment/POA/default.asp.
Hamilton 's 2003 municipal performance report can be viewed at
http://www.city.hamilton.on.ca/clerk/
agendas-minutes-reports/committee-of-the-whole/
2004/Aug11/CM04004a%20-%202003%20MPMP%20Results.pdf.
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