City Signs 20-year Operations, Maintenance Contract

The Stockton (CA) City Council has approved a 20-year, $600 million contract with OMI*Thames Water for operation and maintenance of the city's water, wastewater and stormwater utilities.

The Stockton (CA) City Council has approved a 20-year, $600 million contract with OMI*Thames Water for operation and maintenance of the city's water, wastewater and stormwater utilities. Under the agreement OMI*Thames Water will serve 250,000 Stockton residents and make major physical plant improvements to the city's wastewater facilities. The project is one of the largest and most comprehensive of its kind in the United States.

"We commend the Mayor and City Council of Stockton for their foresight and thoroughness in addressing their communities' long term water and wastewater needs," said OMI*Thames Water Project Sponsor Gary Miller. "This partnership will safeguard the future of Stockton's water, save the city and its ratepayers money, and lead to improvements in environmental compliance.

"This is an important project for OMI*Thames Water as well. We are confident that this type of comprehensive partnership to provide service and facility improvement will bring lasting benefits to the residents of Stockton and be emulated by municipalities around the country."

The partnership with OMI*Thames Water will result in savings of $175 million over the life of the contract, and dramatically reduce rate increases that city residents would otherwise incur. The City of Stockton will retain ownership of the utility system, and the City Council will continue to set rates.

"My personal commitment to the citizens of Stockton always has been to provide the best possible service at the lowest possible cost. This public-private partnership fully achieves that goal," said Stockton Mayor Gary Podesto. "The contract with OMI*Thames Water is a result of deliberate and thorough process. The City Council's decision was made in a thoughtful manner with the interests of our citizens at heart. It is a huge win Stockton."

Under the terms of the contract, current utility system employees are guaranteed employment with OMI*Thames Water. The contract also includes a design-build component to upgrade the city's wastewater treatment plant to comply with new regulatory requirements. OMI*Thames Water will create a wetlands treatment system that provides wildlife habitat, meets environmental and regulatory compliance requirements, and creates opportunities for community involvement.

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