City of Honolulu, Hawaii

Mayor Jeremy Harris

Population: 423,475
Service Area Population: Partial City and
Surrounding Communities

City Contact:
Doug Woo
Office of Information
650 South King Street
Honolulu, Hawaii 96813
808-527-6669

DESCRIPTION OF PARTNERSHIP ARRANGEMENT

The City of Honolulu entered into a 20-year Partnership with USFilter to design, build, finance, own and operate a 13-mgd water reclamation plant. The City signed the agreement on October 4, 1998. The plant will receive 13-mgd of secondary effluent from the adjacent wastewater treatment plant, utilize multi-media filtration, microfiltration and reverse osmosis to reclaim 12-mgd of water for beneficial reuse. The 13-mgd is currently discharged into the Pacific Ocean. This beneficial reuse will be positive for the environment and offsets equivalent demands on potable supplies.

The Partnership provides a private sector solution to a Federal consent decree, which could have required the City to make a sizable public expenditure. USFilter takes a merchant risk in building and operating the plant. The City will purchase 6-mgd for residential, irrigation, landscaping, and non-food agricultural needs. USFilter will market the remaining 6-mgd capacity to commercial and industrial users. USFilter will be responsible for providing a piping system for a 15-mile distribution network.

ESTIMATED/ACTUAL COST SAVINGS— Capital Upgrades, Consumer Rates, and Fees

The capital investment for the reclamation plant is valued at $36 million. The overall agreement is valued at $140 million. The City and County of Honolulu will set water rates. USFilter will set rates for water sold to commercial and industrial users, guided by local competitive rates.

LABOR RELATIONS

Plans for the new water reclamation plant anticipate the hiring of new employees, who will be paid by USFilter. Employees will receive a competitive salary and benefits package.

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