Operations
LIBERTY WATER COMPANY/ CITY OF ELIZABETH Population Served: 120,000
ELIZABETH, NJ Partnership results in system upgrades, vigorous maintenance and more efficient operation. Project: Through its Liberty Water Company subsidiary, American Water manages all aspects of the City of Elizabeth’s water system, including billing and collection services. By making continuous upgrades throughout the City’s aging infrastructure, American Water provides for improved water delivery and quality for area residents. Key Attributes: This partnership provided the City of Elizabeth with an up-front cash payment of $19 million the first year, $12 million the second year and $19 million the third year. This enabled the City to upgrade infrastructure and make other needed improvements. Additionally, the Liberty Water Company regularly returns a portion of collected revenue to the City for continued system investment and enhancement, which may be used for additional infrastructure investments. Project Type: Concession/Operations and Maintenance Project Timeline: 1998-Present Challenge: In the late 1990’s, the City of Elizabeth’s water system faced numerous challenges. Its water and wastewater infrastructure was approximately 100 years old and consisted of many degrading cast iron mains that led to numerous breaks throughout the year. Hydrants often needed replacing to accommodate expanding public safety needs. Solution: American Water, through its Liberty Water Company subsidiary, guaranteed at least $50 million in improvements to Elizabeth’s water infrastructure and initiated a maintenance program that included sophisticated technology, such as sonic leak detectors, to improve services. The company also assumed all billing and collection functions. The partnership guaranteed stable water rates for the city with a base rate average of 1.5% annually over the life of the contract. These efforts ultimately allowed Elizabeth contribute to its bottom line. Quality Standards: Liberty Water Company developed a microcomputer-based process control system that continuously monitors the system including water pressure, hydraulics and meter flow.
ELIZABETH, NEW JERSEY
Elizabeth
Operations: The system is flushed once a year between April and May. Routine maintenance and operations are performed daily. Meters were replaced throughout the first two years of the contract. Another meter change-out is scheduled for year 25 of the contract. A toll-free number has been established for customers to report emergencies and to address billing-related questions.
Project Details: The City of Elizabeth Water System is comprised of 192 miles of main approximately 4-feet in diameter. The system also includes 1,578 fire hydrants. The system’s water source is surface water supplied through a 60%-40% split: New Jersey American Water, operating as the Liberty Water Company, provides 60% from the Raritan and Millstone Rivers, while the City of Newark provides 40% of the supply from the Wanaque Reservoir. Under terms of this 40-year contract, Liberty Water Co. provided approximately $50 million in concession payments to the City between 1998-2000, which helped fund capital improvements to the system. Going forward, Elizabeth is to pay $58 million spread over 40 years into a City Payment Fund. This fund is dedicated to paying for capital improvements to the water system. The City and Liberty established a formal Operations Committee, which meets every three months to discuss issues related to the operation, maintenance and management of the System. Liberty Water provides routine maintenance, including preventive maintenance checks, cleaning and lubrication of service equipment, equipment inspections, system calibrations and adjustments, testing and sampling. Additionally, Liberty Water will develop and implement an emergency management plan as well as operation and maintenance manuals, which it will periodically update.
CONTACT: Dee Gillespie American Water 732-302-3170
To learn more about American Water, visit www.amwater.com
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