U.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 Urban Water Council

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 …Tax 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 – 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 – 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 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 Council EPA’s Water Infrastructure – “Needs Gap” 20 year ( ) 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 ( ) 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 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 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 Council Public/Private Partnerships A Proven Track Record

Proven Partnerships Wastewater Treatment 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 Partnerships 60 MGD Wastewater Treatment Plant 28 Pump Stations $840 K in capital improvements $10 mill concession fee $5 mill of fee dedicated to new capital improvements

Proven Partnerships Scranton,Pennsylvania 20 MGD Wastewater Treatment Plant 7 Pump Stations $20 mill in capital improvements $8 mill concession fee 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 cross- training for better services at no cost increase Biosolids Odor Control Program- no complaints Biosolids Recycling saving $85,000

Proven 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 Plant (Serves 228,000 pop) (Manages 3,000 Acre Watershed)

Proven Partnerships Asset Transfer- Drinking Water Treatment Plant 40-Year Service Contract $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 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