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Annual Service Contract - page 4 / 43





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“Unaccounted For” Water – the Service Contract  specifically states in Article VII Section 7.8 that the unaccounted for water shall not exceed 3.5%. Graphs illustrated OMI-Thames Water’s inability to meet contract standards for lost water.

Maintenance - exposed OMI-Thames Water’s attitude and behavior regarding specific contract required maintenance.

Standard Operating Procedures – the Service Contract required SOPs to be completed during the Transition Phase. SOPs are integral in implementing the Computerized Maintenance Management System (CMMS). The CMMS is necessary and responsible for the predictive, preventative, and corrective maintenance scheduling.

Violations simply spoke to the cost of OMI-Thames Water’s inability to comply with laws and regulations, resulting in fines during the first year of performance.

As with the First Review, it is important to know something regarding the timeline and the events that surround the privatization of the operation, maintenance and initial capital improvements contract between the City of Stockton and OMI-Thames Water Stockton, Inc.

During the 1990’s, the City of Stockton embarked on a staged expansion project to upgrade the Regional Water Control Facility (RWCF).  In 1998, the consideration of having the private sector build and operate the RWCF surfaced and in 1999 there was serious discussion of possible private operation as compared to the Municipal Utilities Department (MUD) business plan.  The process of evaluating the privatization of the MUD began in 2000 with the selection of consulting firms to aid the city.  Three private companies were selected to make proposals and in October 2002, OMI/Thames was selected as the preferred provider with which the City would negotiate the RWCF upgrade and MUD operation and maintenance.

During the discovery period, a group of concerned citizens and community organizations formed a coalition to observe the entire process to ensure that the citizens’ utility services were protected and the rates citizens paid would remain low. 

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