Cities of Tampa and St. Petersburg, Florida

Mayor Dick A. Greco, City of Tampa
Population: 285,206

Mayor David J. Fischer, City of St. Petersburg
Population: 235,988
Service Area Population: 2,000,000

Don Lindeman, Project Manager
Tampa Bay Water, 2535 Landmark Dr. Suite 211
Clearwater, FL 33761


Tampa Bay Water (TBW), the regional water utility, entered into a 30-year Partnership with Poseidon Resources and Stone and Webster to build, own, operate, and eventual ownership transfer (BOOT) for a 25-mgd desalinization plant. TBW signed the agreement in July of 1999. TBW solicited a performance request for proposals to include water quantity and quality, and a specific interconnection location. The choice of technology, location of the plant, and financial structuring was left open to the private partner. The 25-mgd plant is planned to expand after five years to 35-mgd in capacity. All water from the plant will continue to be used by the utility. Poseidon and Stone and Webster are responsible for providing a 14-mile interconnection pipeline to the existing distribution network. Customer service, including metering, billing, and collections will remain the utility's responsibility.

The capital investment for the project is valued at $110 million, while the value of the cumulative contract is worth $600 million. Poseidon Resources will finance the infrastructure investment in a 90/10 debt-equity structure. Poseidon will invest an equity portion of 10 percent, and arrange, in conjunction with Tampa, St. Petersburg and surrounding municipalities, to finance the remaining 90 percent with tax-exempt debt. Poseidon will own the plant, but at the end of the Partnership term it will transfer ownership to the utility.

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

Rate setting for residential consumers will continue to be set by Tampa Bay Water. The participating cities will realize significant savings. Currently the cost of water is roughly $3/1,000 gallons, but the cost under the Partnership agreement is expected to be $2/1,000 gallons. This cost savings is anticipated to be worth roughly $300 million over the life of the Partnership.

There will be no concession fees paid by Poseidon Resources to any of the Cities or to Tampa Bay Water.


Poseidon Resources and Stone and Webster anticipate hiring 12 full time employees to operate the plant.

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The United States Conference of Mayors

J. Thomas Cochran, Executive Director
1620 Eye Street, NW, Washington, DC 20006
Telephone (202) 293-7330, FAX (202) 293-2352

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