Tampa Bay Water did the right thing by buying out the contractor of its desalination plant. Now the utility has only itself to blame should more problems arise.
Published February 11, 2004
Tampa Bay Water had practical reasons to buy out the contractor of its desalination plant. Officials feared that Covanta had damaged the plant and didn't work with the public in good faith. They also calculated that the legal battle could have been even more time-consuming and expensive. As a matter of principle, though, it is grating to see Covanta collect $5-million to walk away. This is not - as Tampa Bay Water chairman Bob Stewart said - "an unfortunate hiccup," but another colossal waste in a long and poorly managed effort to generate new drinking water supplies.
The future of this desal plant - the nation's largest - is still in doubt. However, removing Covanta from the picture does several good things. Tampa Bay Water takes control of the desal plant, the reins of which had been left in limbo because Covanta sought bankruptcy protection. The utility should have retained a greater level of control from the start, instead of delegating its public responsibility to private interests. Now it can focus on fixing the process for removing salt from seawater, instead of fighting Covanta in court over who is to blame for continuing maintenance problems.
Bringing the litigation to an end adds some certainty to the management of the plant. Tampa Bay Water can pay a fixed amount and move on, assume control of the plant and know the $110-million facility is firmly in the public's hands. Covanta's delays in getting the plant running as planned, compounded by its sudden move to seek bankruptcy protection, had soured the necessary working relationship between the utility and its contractor. This was not the foundation on which to begin what would have been a 30-year business relationship.
If approved by a federal bankruptcy judge, the settlement will likely speed the process of getting the plant running as designed - assuming that is feasible. Tampa Bay Water will seek an interim operator while it studies why the plant's cleaning membranes have clogged more frequently than expected. The problem is being blamed for wear on the membranes that strip salt from the water, which in turn has caused a buildup of excess cleaning solution. Tampa Bay Water hopes to have a replacement contractor later this year. A plant that was supposed to be completed last year now won't be fixed until 2005 at the earliest.
Another benefit of removing Covanta is that it marks the last time Tampa Bay Water can shift the blame. From here on, the utility, which serves 2-million customers in Pinellas, Hillsborough and Pasco counties, must face up to its ownership of a troubled desal plant. While Tampa Bay Water is confident it can fix the problem, we have heard other assurances before. Having the chairman minimize the public costs and risks associated with a buyout does not inspire confidence that the agency has learned an important lesson. Removing Covanta, and quickly, was the best thing to do, but this cannot be spun as anything but a disappointing and costly experience.
