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for the St. Louis Water Division and the City
KEY ELEMENTS 1. The city wants to make the best use of the assets it owns. 2. Veolia is the #1 water services provider worldwide. 3. If implemented, Veolia’s proposal would reduce the cost of operations by more than 15% each year – without layoffs.
Population is changing, but the system is not
The population of St. Louis is one-third of what it used to be 60 years ago. Yet the city still maintains the same infrastructure, the same number of plants and the same number of pumping stations that it had in 1950.
Water Division customer base has declined
City population (in millions)
0.1 1925 1950 1975 2000 Today
Costs of excess infrastructure
The cost of maintaining all the old infrastructure is continuing to rise.
But revenues are declining, because people and businesses have left the city.
Unless something is done with costs, the city will have no choice but to continue to raise rates.
The projected budget is unsustainable
Revenue dropping & costs rising
Costs (in millions $)
2004 2006 2008 2010 2012 2014 2016 2018
SOURCE: Black & Veatch Report
“Delaying maintenance on a car”
The system has significant capital needs. The treatment plants were built in the early parts of the 19th century. Most of the pumps date back to the 1950s.
There are consequences to not fixing this infrastructure, as delaying infrastructure repair is like delaying maintenance on a car – eventually things stop working.
Delayed repairs and replacements are increasing capital needs
Capital needed (repair/replacements delayed)
Cost (in millions of $)
5 2011 2012 2013 2014 SOURCE: Black & Veatch Report
Why is water usage so high?
The water consumption for St. Louis is roughly 1,260 gallons per customer, per day. This is more than twice the average Veolia has seen in other comparable cities by age and size, and we operate 8,500 water and wastewater plants worldwide.
One of the key parts of Veolia’s proposal is to audit the non-revenue water in the system to determine where all the water is going:
Leaks and main breaks Unmetered park and municipal use Flat rate consumption Metering inaccuracy (possibly missing revenue)
Reducing materials costs starts with a total water assessment for more accurate production requirement
Unadjusted daily gallons per customer
200 Toledo Pittsburgh Buffalo St. Louis
Water conservation saves resources
Main breaks high in certain categories
The system averages 256 main breaks per year. Main breaks have been increasing in recent years. Main breaks cost money, waste water, and provide poor customer service.
Veolia’s proposal would look at what is causing these breaks to see if they can be minimized.
Veolia will analyze the break history and propose underground asset management strategies and techniques to minimize breaks and avoid main break risk.
St. Louis pipe breaks
St. Louis pipe breaks per 1000 miles
Avoid emergency repairs in the middle of the night at overtime rates
Our approach uses data such as breakage rates by pipe type and age, to target trouble areas 250 500 750 1000
Under Veolia’s proposal, we would provide advice on best management practices.
Veolia will bring worldwide experience to help solve Water Division challenges, as well as help evaluate their ideas for making the system economical to operate and maintain.
The proposal would enhance the operations of the system and help build the utility of the future.
Veolia Water’s St. Louis team includes five city-certified M/WBE partners and Jacobs Engineering
Distribution system assessment, management technologies Condition assessment of equipment, overall energy footprint Water audit, bulk sales, evaluation of system capacity Audit of procurement, inter-department charges External and media communications Organizational development, strategy planning, facilitation
Our M/WBE partners bring over years combined service to the community
We are a strongly local team, with 650 area employees (225 from Veolia and 425 from partner firms)
Randle & Assoc. Veolia Water
13 employees: 16 employees:
Veolia Environmental Services
Our expertise has enabled us to find and implement “quick wins” for our clients in other cities
Meter Change Out
in new annual revenue
in estimated new annual revenue
in estimated annual savings
If selected for implementation, we would help St. Louis achieve up to $8.8 million in annual benefit
Total Annual Benefit
annually (up to 10.8% of budget)
annually (achieved 18%)
Potential benefit (in millions of $)
annually (up to 15%)
Year 2 Year 3 Year 4 Year 5
Up to $30 million over a 5-year implementation
Veolia is the largest and most experienced water technology and services company on the planet.
We operate more than 8,500 water and wastewater facilities and systems. We operate more large-scale water treatment facilities for North American industry than any other company.
Our mission is to discover and utilize the best solutions for meeting environmental challenges.
• www.veoliawaterna.com • www.twitter.com/veoliawaterna
The Utility of the Future will benefit from the Veolia Water network of expertise and results delivered to our clients
Buffalo – saving $1 million each year and greatly improved customer service
Indy – saved $83.1 million
NYC – saving up to $130 million
Tampa Bay Water – savings featured on CNN Money
Atlanta/Fulton County – developed M/WBE firms in award-winning partnership
Communities currently being served in North America
Veolia has a longstanding presence in the St. Louis area
We’ve partnered with Edwardsville, Ill. since 1987. In August, we celebrated 25 years with no lost-time injuries.
• We’ve saved the City $12 million in capital improvements and received several awards from the Illinois EPA.
We have provided various water technologies and systems support to Anheuser Busch at nine of their plants.
Veolia Energy operates the St. Louis downtown cogeneration plant and the steam loop that supplies downtown offices and the convention center.