Transcript U.S Conference of Mayors Urban Water Council • • • • August 2004 Mayor’s ’04 Metro Agenda Bipartisan Priorities Statement Directed for candidates in Presidential and Congressional elections.

U.S Conference of Mayors
Urban
Water
Council
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August 2004
Mayor’s ’04 Metro Agenda
Bipartisan Priorities Statement
Directed for candidates in
Presidential and Congressional elections
Four 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 Partnerships
• Tax Incentives …foster private investment in
modern infrastructure development including
transportation and water projects
• Modernization of Infrastructure Financing…
develop creative public/private partnerships to
help finance major projects in areas such as
water and wastewater
WATER 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
Grade given by the A.S.C.E. (American Society for Civil Engineers) on
the nations key infrastructures, including water systems.
WASTEWATER 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
Grade given by the A.S.C.E. (American Society for Civil Engineers) on
the nations key infrastructures, including water systems.
Urban 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
Urban 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
Estimates – September, 2002
Urban Water Council
Public/Private Partnerships
Provide Much NEEDED Help
•Design-Build-Operate saves $$ in
Construction Costs
•Private Activity Bonds can enhance
Financing Opportunities
•Short- and Long-Term Outsourcing
Urban Water Council
Public/Private Partnerships
A Proven Track Record
• 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
Proven Partnerships
Wastewater
Treatment Plant
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• $74 mill cost savings
over 25 years
– Repay sewer loan from
(Serves 71,000 pop)
general fund
$48 mill concession fee
– Eliminate City Budget
GO Bond debt in sewer
Deficit
fund
– Defease outstanding GO
Bond debt in sewer fund
Rate stabilization + CPI
• Rate stabilization + CPI
Save $40 mill in
compliance upgrades
Proven Partnerships
• $840 K in capital
improvements
60 MGD Wastewater
Treatment Plant
28 Pump Stations
• $10 mill concession fee
• $5 mill of fee dedicated
to new capital
improvements
Proven Partnerships
Scranton,
Pennsylvania
• $20 mill in capital
improvements
• $8 mill concession fee
20 MGD Wastewater
Treatment Plant
7 Pump Stations
• Stabilize user rates for
5 years
• Cap operations costs
for 5 years
Proven Partnerships
60 MGD, 10 MGD
And 5 MGD
Wastewater
Treatment Plants
• $150 mill saved over 18
years
• Cutting-edge
technologies and
employee crosstraining for better
services at no cost
increase
• Biosolids Odor Control
Program- no complaints
• Biosolids Recycling
saving $85,000
Proven Partnerships
Water Treatment
Plant
(Serves 228,000 pop)
(Manages 3,000 Acre
Watershed)
• 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
Proven Partnerships
• $50 mill + in concession fees
• Managed rate increases
equal to 1.5% over 40 years
to match need for capital
improvements
Asset TransferDrinking Water
Treatment Plant
40-Year Service
Contract
• Fees to be used for for
property tax redistribution
• Partnership helped City
reduce debt of $110 mill to
$78 mill
Proven Partnerships
City of Sugar Land
Combined Water,
Wastewater Systems
Multiple Systems with
Public/Private Contracts
City System – 8900 meters, 3 water,
1 wastewater, serves 29,000
Private System – 12,100 meters, 2
water, 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
Urban
Water
Council