U.S Conference of MayorsU.S Conference of MayorsU.S Conference of MayorsU.S Conference of Mayors

• August 2004

• Mayor’s ’04 Metro Agenda

• Bipartisan Priorities Statement

• Directed for candidates in

Presidential and Congressional elections

• August 2004

• Mayor’s ’04 Metro Agenda

• Bipartisan Priorities Statement

• Directed for candidates in

Presidential and Congressional elections

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Four Priority AreasFour Priority AreasFour Priority AreasFour Priority Areas

• Jobs and Public/Private Partnerships:Keep America Working

• Smart Investment:New Infrastructure for a New Economy

• Public Safety and Homeland Security:Keeping America Safe

• Restrict Unfunded Mandates & Cost Shifts:

Improve the Intergovernmental Partnership

Public/Private PartnershipsPublic/Private PartnershipsPublic/Private PartnershipsPublic/Private Partnerships

• Tax IncentivesTax Incentives ……foster private investment in modern infrastructure development including transportation and water projects

• Modernization of Infrastructure Financing…Modernization of Infrastructure Financing… develop creative public/private partnerships to help finance major projects in areas such as water and wastewater

WATER REPORT CARD – DWATER REPORT CARD – D

• 54,000 drinking water systems, aging rapidly

• Infrastructure needs continue to increase

• Annual shortfall of $11 billion need to replace or rehab facilities and to comply with Federal regulations

• Forecast for drinking water systems indicates a downward slope

• 54,000 drinking water systems, aging rapidly

• Infrastructure needs continue to increase

• Annual shortfall of $11 billion need to replace or rehab facilities and to comply with Federal regulations

• Forecast for drinking water systems indicates a downward slope

Grade given by the A.S.C.E. (American Society for Civil Engineers) on the nations key infrastructures, including water systems.

WASTEWATER GRADE – DWASTEWATER GRADE – D

• 16,000 wastewater systems facing enormous needs

• $12 billion annual shortfall in funding for infrastructure needs

• More than 1/3 of U.S. surface waters do not meet water quality standards

• Risk losing environmental gains from the last 3 decades

• 16,000 wastewater systems facing enormous needs

• $12 billion annual shortfall in funding for infrastructure needs

• More than 1/3 of U.S. surface waters do not meet water quality standards

• Risk losing environmental gains from the last 3 decades

Grade given by the A.S.C.E. (American Society for Civil Engineers) on the nations key infrastructures, including water systems.

Urban Water CouncilUrban Water Council

Water Infrastructure Investment at a Critical Crossroad

Municipal investment accounts for lion’s share

•EPA estimates of NEED are in the hundreds of billions

•State budget deficit in tens of billions

•Federal budget deficit in the hundreds of billions

Water Infrastructure Investment at a Critical Crossroad

Municipal investment accounts for lion’s share

•EPA estimates of NEED are in the hundreds of billions

•State budget deficit in tens of billions

•Federal budget deficit in the hundreds of billions

Urban Water CouncilUrban Water Council

EPA’s Water Infrastructure – “Needs Gap”

20 year (2000-2019) investment needed to comply with existing law :

•$271 billion for clean water

•$263 billion for drinking water

•A $534 billion gap

EPA’s Water Infrastructure – “Needs Gap”

20 year (2000-2019) investment needed to comply with existing law :

•$271 billion for clean water

•$263 billion for drinking water

•A $534 billion gap

Estimates – September, 2002Estimates – September, 2002

Urban Water CouncilUrban Water Council

•Design-Build-Operate saves $$ in Construction Costs

•Private Activity Bonds can enhance Financing Opportunities

•Short- and Long-Term Outsourcing

Public/Private Partnerships Provide Much NEEDED HelpPublic/Private Partnerships Provide Much NEEDED Help

• Majority of the US population served by Investor Owned Drinking Water Utilities

• 4 – 6 % of Wastewater Treatment Facilities under short- or long-term partnerships/outsourcing

Urban Water CouncilUrban Water CouncilUrban Water CouncilUrban Water Council

Public/Private Partnerships A Proven Track Record

Public/Private Partnerships A Proven Track Record

Proven Partnerships Proven Partnerships

Wastewater Wastewater Treatment PlantTreatment Plant

(Serves 71,000 pop)

• $74 mill cost savings over 25 years– Repay sewer loan from

general fund– Eliminate City Budget

Deficit– Defease outstanding GO

Bond debt in sewer fund

• Rate stabilization + CPI

• $48 mill concession fee• GO Bond debt in sewer

fund• Rate stabilization + CPI• Save $40 mill in

compliance upgrades

Proven PartnershipsProven Partnerships

60 MGD Wastewater 60 MGD Wastewater Treatment PlantTreatment Plant

28 Pump Stations28 Pump Stations

• $840 K in capital improvements

• $10 mill concession fee

• $5 mill of fee dedicated to new capital improvements

Proven PartnershipsProven Partnerships

Scranton,Scranton,

PennsylvaniaPennsylvania

20 MGD Wastewater 20 MGD Wastewater Treatment PlantTreatment Plant

7 Pump Stations7 Pump Stations

• $20 mill in capital improvements

• $8 mill concession fee

• Stabilize user rates for 5 years

• Cap operations costs for 5 years

Proven PartnershipsProven Partnerships

60 MGD, 10 MGD60 MGD, 10 MGDAnd 5 MGD And 5 MGD Wastewater Wastewater

Treatment PlantsTreatment Plants

• $150 mill saved over 18 years

• Cutting-edge technologies and employee cross-training for better services at no cost increase

• Biosolids Odor Control Program- no complaints

• Biosolids Recycling saving $85,000

Proven PartnershipsProven Partnerships

• Estimated total Public Benefits between $58 and $73 mill

• Utility costs down 20%• Maintenance costs

down 30%• Purchases from

minority and women owned businesses reaches 22.7%, exceeding 12% target

Water Treatment Water Treatment PlantPlant

(Serves 228,000 pop)(Serves 228,000 pop)

(Manages 3,000 Acre (Manages 3,000 Acre Watershed)Watershed)

Proven PartnershipsProven Partnerships

Asset Transfer- Asset Transfer- Drinking Water Drinking Water Treatment PlantTreatment Plant

40-Year Service 40-Year Service ContractContract

• $50 mill + in concession fees

• Managed rate increases equal to 1.5% over 40 years to match need for capital improvements

• Fees to be used for for property tax redistribution

• Partnership helped City reduce debt of $110 mill to $78 mill

Proven PartnershipsProven Partnerships

City of Sugar City of Sugar LandLand

Combined Water, Combined Water, Wastewater SystemsWastewater Systems

Multiple Systems with Multiple Systems with Public/Private ContractsPublic/Private ContractsCity SystemCity System – 8900 meters, 3 water, – 8900 meters, 3 water,

1 wastewater, serves 29,0001 wastewater, serves 29,000

Private System Private System – 12,100 meters, 2 – 12,100 meters, 2 water, 1 wastewater, serves 40,000water, 1 wastewater, serves 40,000

• Allows City Staff to focus on long range planning, CIP & infrastructure management

• Reduction in expensive capital outlays for specialized services

• Reduction in City staff, especially in hard to fill technical positions

• Increased flexibility to handle repairs and emergency response

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