Partnerships Changing Water Management Challenges & Strategies David MacIntyre Parsons Brinckerhoff
Outline Introduction Regulatory Agency Partnerships Water/Wastewater/Stormwater Utility Partnerships Public/Private Partnerships Conclusion
Outline Introduction Regulatory Agency Partnerships Water/Wastewater/Stormwater Utility Partnerships Public/Private Partnerships Conclusion
Change Requires Adaptation Water Resources Population Physical Water Infrastructure Institutional Infrastructure
Change Requires Adaptation Water Resources Population Physical Water Infrastructure Institutional Infrastructure
Climate Change Adds New Adaptation Uncertainties Climate Population Water Resources Institutional Infrastructure Physical Water Infrastructure
Change at Many Interacting Scales National State Municipal Individuals & Organizatons
Partnership A possible adaptive response to limitations of current scale or structure Based on mutual net benefit and consent Typically, one of many competing options
Outline Introduction Regulatory Agency Partnerships Water/Wastewater/Stormwater Utility Partnerships Public/Private Partnerships Conclusion
Regulatory Agency Partnerships Typical Drivers Perfect alignment of multiple agency jurisdictions and regulations is rare When overlaps or misalignments cause significant conflict, typical solution approaches include: Legislative correction Agency partnerships
Regulatory Agency Partnerships Typical Drivers Competition Cooperation
State of Florida Water-Related Regulatory Agencies Governor of Florida Florida Dept. of Agriculture & Consumer Affairs (FDACS) Florida Dept. of Environmental Protection (FDEP) Northwest Florida Water Management District (NWFWMD) Central Florida Water Initiative Participants Suwannee River Water Management District (SRWMD) St Johns River Water Management District (SJRWMD)) Southwest Florida Water Management District (NSWFMD) South Florida Water Management District (SFWMD)
State of Florida Water-Related Regulatory Agencies FDEP All environmental oversight Receiving water quality WMDs Water quantity in natural systems Springs, rivers, lakes & wetlands Water quantity-related environmental protection Permitting of water consumption Allocation of water rights Legally entitled to act as water suppliers Conflict of interest with water allocation permitting FDACS Regulation and sponsorship of agriculture Agricultural stormwater & fertilizer BMPs
Central Florida Water Initiative Surface Water Basins CFWI Area
Central Florida Water Initiative Surface Water Basins St Johns River Water Management District Southwest Florida Water Management District
Central Florida Water Initiative Groundwater Basins Northern West-Central Florida Volusia Central West-Central Florida East-Central Florida Southern West-Central Florida
Central Florida Water Initiative Regulatory Challenges Differing Water permitting rules in each WMD Inconsistent environmental protection Inconsistent & inequitable water permitting outcomes Discontented stakeholders Over-allocation of fresh groundwater 850 to 925 MGD regional safe yield 950,000 to 1,000,000 Acre-Feet/Year About 800 MGD in current use 900,000 Acre-Feet/Year About 1,100 MGD permitted 1,200,000 Acre-Feet/Year
Central Florida Water Initiative Where is it Going Now? Activity Analytical Tools Groundwater Availability Solutions Planning Regulatory Revision 2012 2013 2014 Time
Outline Introduction Regulatory Agency Partnerships Water/Wastewater/Stormwater Utility Partnerships Public/Private Partnerships Conclusion
W/WW/SW Utility Partnerships Typical Drivers Perfect alignment of multiple utility jurisdictions is normal within the same service type (W, WW or SW) Perfect alignment of multiple utility jurisdictions across different service types (W, WW or SW) is rare Close alignment of utility objectives is relatively rare
W/WW/SW Utility Partnerships Typical Drivers Competition Cooperation Competition Cooperation Unconstrained Utilities Utilities with Local Capacity Constraints
Projected Increase of 1.4 Million People Projected Population CFWI Area 4,500,000 4,000,000 Seminole Polk Projected Populations 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 Osceola Lake Orange 1,000,000 500,000 0 2010 2015 2020 2025 2030 2035
Projected Water Use CFWI Area MGD 1,200 Water Use All Classes 1,000 800 600 400 200 0 1960 1970 1980 1990 2000 2010 2020 2030 2035 Historic Projected
Projected Drawdown in Upper Floridan Aquifer Groundwater Levels 2005 to 2015 2005 to 2035
Projected Drawdown in Surficial Aquifer System Groundwater Levels 2005 to 2015 2005 to 2035
Groundwater Drawdown Effects on Environmental Constraint Locations
Increasingly Constrained Water Management Options After groundwater Alternative Water Supplies Lower quality sources Recycled water Stormwater Brackish groundwater Surface water Sources further away from demand centers Increasingly stringent discharge quality constraints New statewide Numerical Nutrient Criteria for receiving waters Pending legislation for springs protection Widespread advanced wastewater treatment? Direct potable reuse?
Mounting Reasons for Utility Partnerships Preferentially reduce groundwater withdrawals in environmentally vulnerable areas Reach across utility jurisdictions to new sources Reach across utility jurisdictions to environmental mitigation sites (e.g., recycled water recharge enhancement) Economies of scale
Integrated Water Resources Management Requires Integrated Utilities Management Groundwater Water Treatment Facility Indoor Water Use Potable Irrigation Water Reclamation Facility Surface Water Discharge In Florida, this simple initial model of separate and largely independent water & wastewater utilities is evolving to a more complex and interdependent approach.
Integrated Water Resources Management Requires Integrated Utilities Management Diversify Source Portfolio Groundwater Surface Water Stormwater Water Treatment Facility Indoor Water Use Reduce Potable Irrigation Potable Irrigation Reclaimed Water Irrigation Water Reclamation Facility Non- Irrigation Reuse Systems Evaporation RIBs and other Recharge Systems Surface Water Discharge Increase Groundwater Recharge & Availability Reduce Receiving Water Discharges & Impacts
Integrated Water Resources Management Requires Integrated Utilities Management Diversify Source Portfolio Reduce Potable Irrigation Groundwater Surface Water Stormwater Potable Irrigation Reclaimed Water Irrigation RIBs and other Recharge Systems Increase Groundwater Availability Water Treatment Facility Indoor Water Use How do you define equitable division of costs and benefits between partnering utilities? Non- Irrigation Reuse Systems Water Especially Reclamation difficult if they have Facility different boundaries & service populations. Evaporation Surface Water Discharge Reduce Receiving Water Impacts
Water & Wastewater Utilities in the Central Florida Water Initiative Area CFWI Water Utility Service Areas CFWI Wastewater Utility Service Areas
Current Utility Partnership Efforts Water Cooperative of Central Florida 4 member utilities + 1 customer utility Already formed Brackish groundwater (permit issued) Recycled water? Polk County Water Alliance 17 utilities Governance under negotiation Brackish groundwater (permit issued) South Lake County Water Initiative 5 utilities Feasibility initiative under way Shift withdrawals from Upper to Lower Floridan Aquifer Import recycled water? Seminole County Utilities Seeking wholesale utility status Surface water (limited capacity permit issued)
Outline Introduction Regulatory Agency Partnerships Water/Wastewater/Stormwater Utility Partnerships Public/Private Partnerships Conclusion
Public/Private Partnerships Typical Drivers Perfect alignment of public agency and private corporate interests is rare Money is a powerful realignment tool W/WW/SW utilities are usually essential monopolies need careful structuring of PPP s Encourage constructive competition & flexibility Prevent exploitation of the public Politics & public perception are dominant forces
Public/Private Partnerships Typical Drivers Competition Cooperation
Tampa Bay Water Public Private Partnership Regional Wholesale Water Utility Tampa Bay Water New Port Richey Pinellas County St. Petersburg Pasco County Tampa Hillsborough County Municipal Water Utility Customers City of New Port Richey City of St. Petersburg City of Tampa Hillsborough County Pasco County Pinellas County System Capacity (2014) 2.3 million people 170 MGD average daily flow 900,000 Acre-Feet/Year
Tampa Bay Water Public Private Partnership Tampa Bay Water and Southwest Florida Water Management District agreed that Tampa Bay Water would reduce groundwater pumping 158 MGD in 1998 90 MGD by 2007 (43% reduction) Options Considered Surface water Tampa Bypass Canal Alafia River and reservoir Hillsborough River Indirect Potable Reuse Tampa Water Resource Recovery Project Desalination Seawater Brackish water
Source: http://tampabaywater.org/watersupply/systemmap.aspx Tampa Bay Water Seawater Desalination PPP 25 MGD Seawater Reverse Osmosis Desal Plant Design Build Own Operate Transfer (DBOOT) PPP structure Co-located at TECO Power Plant Shares TECO cooling water intake system SWRO concentrate pre-dilution via shared TECO cooling water discharge system
PPP Risk Containment Private partner investment & facility ownership Financial incentives and penalties Redundancy Spare parts Design and construction review Strong private partner financial backstop Insurance Surety bonds Operating phase insurance If it fails, the public agency pays nothing this only works if the public agency can accept the operational and political challenges of allowing the project to fail
A Series of Unfortunate Events Part 1 Tampa Bay Water Selects Poseidon/Stone & Webster Team S&W (EPC Contractor) Files Ch. 11 Bankruptcy Poseidon Selects Ogden as New EPC Contractor Poseidon Obtains Interim Construction Loan Ogden Renamed as Covanta Tampa Bay Water Successfully Defends NPDES Permit Protest Construction Starts Tampa Bay Water & Poseidon Get Financing Commitment
A Series of Unfortunate Events Part 2 Public/Private Partnership Collapses Tampa Bay Water & Poseidon Get Financing Commitment Covanta Unable to Post $74 M Bond Financing Commitment Withdrawn Hydranautics (Subcontractor) Assumes Greater Responsibility & Posts $23 M Bond Construction Contractor Ring Fenced / Subcontracts Assigned to Poseidon Covanta Files Ch. 11 Bankruptcy Tampa Bay Water Buys Poseidon Out & Converts to DBO Final Financing & Uninterrupted Construction Covanta Creditors & Bankruptcy Court Approve Desal O&M Contract
Outline Introduction Regulatory Agency Partnerships Water/Wastewater/Stormwater Utility Partnerships Public/Private Partnerships Conclusion
Partnership Conclusions The best technical solution Is the easiest part of the solution May be institutionally infeasible Partnerships unstable if costs/benefits are inequitably distributed Partnerships depend on trust Often irrationally or emotively influenced Strongly influenced by definitions of them & us Shared values and visions matter Vulnerable to bad press
David MacIntyre Parsons Brinckerhoff 407-756-5396 macintyre@pbworld.com END