Civil Engineering Reference
In-Depth Information
are included in the pass-through component and the City's obligation to pay electri-
city costs are subject to a maximum guarantee of consumption that was provided by the
DB contractor. The variable component of the base fee is further divided into a loadings
adjustment element and a flow adjustment element to account for variations in contractor
costs due to differing conditions of influent quality and volume. The service fee formula
complies with Internal Revenue Service requirements to assure tax-exempt status for the
bonds that were issued by the City to finance the project.
The following reasons have been cited by the City for utilizing DBO for its water
reclamation project:
• A desire to engage a reputable, experienced, and knowledgeable company to
deliver and operate the project.
• Incorporate sound engineering and attain high standards for the design, con-
struction, and operation of the project.
• Have a single point of responsibility for all phases of the project.
• Insulate the City from certain project risks.
• Encourage ingenuity and innovation in the project's design, construction, and
operation.
• Compress and obtain certainty for the project delivery schedule.
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