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Re: Non-Binding Estimate for Hingham Water Facility O&M – Revision to include meter reading
and billing.
I am following up regarding your request for a non-binding estimate for the operation and
maintenance costs of the Aquarion Water Facilities, located in Hingham MA. It is understood
that the Town is considering purchase of the Aquarion Facilities and to do so will need to
understand operations and maintenance costs associated with the operation of the facilities.
The methodology used for estimating costs was derived by comparing the Aquarion Facilities
size and scope of work with comparable Veolia projects currently being operated in the New
England region. A matrix was developed for the following costs: labor, chemicals, heat and
repair and maintenance. This matrix identified High, Low and Average costs per MG for each
Veolia facility. By comparing the scope of work and water sources for the various projects,
Veolia was able to best estimate costs per MG for each of the above cost categories. Electricity
was calculated from information obtained from the Town’s recent Request For Proposal. These
costs were then summed and profit and overhead charges applied to arrive at a total estimated
annual fee. In addition, estimated costs are inclusive of insurances and bonds and other
administrative costs.
Veolia has estimated annual operation and maintenance costs for the water system to be
$2,098,000. We have also estimated the cost for meter reading and billing at $1,072,571.00
this includes rental of office space and purchasing of the billing platform software (estimated at
$400,000) amortized over a 10 year contract term. The total annual fee is estimated at
$3,170,571.
If you have any questions regarding this letter, or Veolia’s service offerings in general, please do
not hesitate to contact me at 508-889-1242.
Respectfully,
Digitally signed by Darlene Domingos
Darlene Domingos,
VP Operations, Veolia East