1. Clean Water Solutions – A Non-profit Collaboration Eden – DSSC - SERCAP

2. Clean Water Solutions
Clean Water Solutions is a collaboration of three non-profit organizations: EDEN Delmarva – DSSC - SERCAP
The goal of the initiative is to enable the consolidation of under-resourced community systems to a sole non-profit utility ownership structure through fundraising, technical assistance, and long term management.

3. Background
There are approximately 165 Community Wastewater Systems in Delaware
About 80 of those are “cluster” septic systems where individual septic tanks are connected to a central drainfield
About 1/3 of these systems have experienced some kind of deficiency – either technical, financial or managerial
Most of these are privately-owned, and thus not eligible for grants

4. Background
July 2015 to July 2016, representatives from a wide variety of stakeholder organizations met, under the aegis of USDA to discuss how to help these privately-owned failing “cluster” wastewater systems
The conclusion was that a non-profit, responsible management entity needed to be created
USDA, issued a Request for Information (RFI) and 3 non-profits responded
The committee felt that none of the responders could provide all that was needed and instead asked the 3 to form a partnership

5. Organizational Roles EDEN DSSC SERCAP
Financial consulting, CRA funding conduit, fundraising efforts
DSSC
Non-profit utility owner-operator, capital improvement planning, debt servicing
SERCAP
Technical assistance, community advisement, system transition planning

6. Since that first meeting in June…
The 3 collaborators began meeting weekly
A 2-year budget, pro forma and templates for asset transfer have been developed
Pro forma projects sustainable operations with a 10% reserve in each utility
Legal agreements have been executed between the collaborators
Additional startup financing has been pursued
A Collaborative Grant from the Delaware Community Foundation and CRA funds from Discover Bank have been received
Emphasize that we have made great progress and these are just SOME of the many things we’ve accomplished

7. Since June… (continued)
An Executive Summary and Value Statement have been developed for dissemination to prospective communities and funders
A Rural Business Development Grant application has been awarded to help with startup costs
CWS has met with a number of VIP’s and legislators to garner support for future funding applications
We can supply the Executive Summary as a handout
Elaborate on the meeting with DCF on Friday

8. CWS Has met with…
The Public Service Commission staff to discuss tying the billing to existing water billing service
DNREC Financial Assistance Branch
USDA staff
Representatives of four targeted “cluster” communities
Other funders to identify additional opportunities
Meeting with PSC to establish requirements for the Non-profit Utility formation
DNREC and USDA to make sure we’re on the right track for funding opportunities in the future
Two of the 8 communities on the list to explain the concepts to them and outline their options

9. The Results:
CWS calculation is that a grant to loan ratio of 70% : 30% will be necessary to keep rates down
THREE of the targeted communities have already agreed to the transfer of system assets and one community’s board has passed a resolution to transfer those assets
A draft agreement outlining the DSSC-Eden relationship is being reviewed by the partner organizations currently and should be in place well before a PSC filing for the two communities
Explain the concept of Letter of Eligibility from DNREC vs. SERCAP as a “bridge” lender
Emphasize the need for a 70:30 ratio of grant to loan and the benefit to the LMI communities

10. The Next steps
A CPCN application was filed with the PSC and DSSC became Delaware’s FIRST Non-Profit Utility
The 38-unit subdivision is Country Glen II
An engineering assessment will be conducted by DSSC via planning grant applications
Capital Improvement needs (if any) will be identified during this process

11. The Next Steps (continued)
DSSC will submit an application to transfer the CPCN’s of two more cluster systems this year
CWS will apply for grants for planning and preliminary engineering for assessment and repair (capital projects) once the systems are under DSSC ownership as the eligible non-profit entity
CWS will seek funding for Capital Projects as they are identified and prioritized

12. The Next Steps (continued)
CWS will approach additional cluster community systems as the earlier systems are running sustainably
User revenues from the first systems operating successfully will help to fund activities in the subsequent systems
Success will breed success!

13. In summary:
Additional funding has been verbally committed by two foundations, pending submission of formal applications
All funding so far has been from private sources, except for 2 small USDA grants
Two more systems are ready and anxious to be relieved of their operational responsibility
To keep the user rates low CWS will need a grant to loan ratio of 70% : 30%
This concept has legs and is rolling along!

14. In Summary:
DSSC will become the owner of two more existing systems in 2018 via a transfer of CPCN
CWS will pursue a petition from 50% of the property owners in a fourth subdivision to start the CPCN process there
CWS/DSSC will be pursuing its own office and office staff sometime in 2019, if not sooner

15. Clean Water Solutions – A Non-profit Collaboration Eden – DSSC - SERCAP