Ozone treatments bump water budget

Friday, May 16, 1997 | 11:59 a.m.

A $12.8 million contract for ozone treatment of Las Vegas Valley drinking water put the Southern Nevada Water Authority $10 million over its debt limit.

But SNWA Manager Pat Mulroy told the board Thursday that Clark County's debt management committee is expected to approve expanding the water authority's debt limit Wednesday, allowing projects to keep up with growth on time and significantly under budget.

The SNWA board unanimously approved the project based on raising the authority's bond debt ceiling.

"Las Vegas will have the largest ozone treatment facility in the world," Mulroy said. The contract calls for ozone equipment at both the old and new pumping plants.

The treatment will prevent deadly organisms from entering the drinking water. The organisms include cryptosporidium, which killed 43 valley residents in 1994, and giardia.

Two drinking-water intake pipelines draw Lake Mead's water six miles downstream from the valley's drainage area in Las Vegas Wash, where treated sewage, surface and underground runoff enter.

Praxair-Trailgaz Ozone Co. received the contract, beating Ozonia North America/Air Liquide Corp. and PCI Ozone Co., bidding $16.4 million and $16.2 million respectively. The SNWA's engineering estimate for the project was $19 million.

There's no rate increases in sight for Southern Nevada Water Authority customers for about two years.

SNWA projected $88.19 million in expenses to operate this year, SNWA Finance Director Carey Casey said.

The good news in this year's budget shows an 11 percent drop in power costs for SNWA, Casey said. Instead of paying more than $21 million to pump thousands of gallons of Lake Mead water uphill, the power bill should run about $17.3 million, he said.

For projects under construction, SNWA engineers figured it would cost $174.9 million, said Richard Wimmer, SNWA assistant general manager.

Instead, pumps, pipelines and tanks are estimated to cost about $159.63 million, he said.

The most significant shift in the 1997-98 budget is where the money comes from, Mulroy said. Connection charges increase to 49 percent, an 18 percent jump from last year. SNWA expects to collect $66.5 million in connection charges, which now cost $2,000 per home.

Wholesale delivery charges drop -- largely due to savings on power -- from 65 percent to 46 percent, she said. That amounts to $61.5 million.