As Water Infrastructure Crumbles, Many Cities Seek Private Help

As counselors discussed by the local water system recently, Summer Smith, homeowner, rose to ask a question: "Can you explain in simple language this means emerging water conditions seems a little worrying?".
David Trovato, President of the Council has recognized that any hint of an emergency water quality "would scare the crap out of me too." But there is no urgency to Woodbury.

New Jersey has designated the water system Woodbury as "emerging" because it can not meet water needs during peak hours. So this city of 10,000 across the Delaware River from Philadelphia plans to sell its water system to a private company.

Woodbury is not alone.

More than 2,000 municipalities have established public-private partnerships for all or part of their systems of water supply, according to the National Association of Water Companies, which represents private water companies Veolia as North America and Latin water . partner municipalities include San Antonio; Akron, Ohio; Washington and Miami-Dade County is considering alliances to three water facilities, including a built in 1924. And Wichita, Kansas, began studying the issue.

The water crisis in Flint, Michigan, where old lead pipes leached water supply, has raised new concerns that cities do not provide maintenance and improvement.

Maintenance, operation, replacement and improvement of water infrastructure could cost the nation $ 2.8 Trillion $ 4.8 billion through 2028, according to the Conference of Mayors. The American Water Works Association estimates that the replacement and expansion of just one water pipes would cost $ 1 trillion until 2035. And the American Society of Civil Engineers provides water infrastructure of the United States a grade of D. Greg DiLoreto, ex chairman of the ASCE estimates that nationwide systems would need $ 84 billion in 2020 improvements to reach a grade of B.

Some cities are turning to the private sector for help.

"There is a desire to bring more private capital in the water world," said Diane Vande Hei, executive director or the Association of Metropolitan Water Agencies, which represents major municipal water utilities in the country. "Money is needed for the aging infrastructure, treatment facilities for pipes. The more money you can make available, the more you can do."

Public-private partnerships (known as 3P) take many forms. Companies can assume the maintenance and operation of an entire system or part of it, for a time share and future earnings. Or companies can design, build and operate a new treatment plant wastewater and water, for example. 3P has been used for years in transportation, but they are relatively new to the water.

Lead, rainwater and people

A recent analysis of US Today the data from the Environmental Protection Agency United States found that nearly 2,000 water systems in 50 states have lead levels exceeding federal limits. Lead can cause developmental disorders, especially in children.

Municipalities with little money, like Flint, can not afford to upgrade their systems, or issue bonds to finance improvements because its bond rating is so low. They would have to pay higher interest rates on that debt. For Flint, the city decided to change water sources Detroit River in the Flint River to save money and water is not treated properly to prevent leakage of lead-old lead pipes doubled.

But even cities that are not in financial difficulties choose to sell part or all of their water systems. Miami-Dade Mayor Carlos Gimenez said he "does not want to use anything" and opened the door to public-private partnerships for water and other services.

Cities also face other water-related problems, such as how to keep rainwater to overwhelm treatment plants and sewage slopping untreated wastewater into rivers, streams and the ocean. The sea level rise and rapid population growth will exacerbate the challenges.

But governments spend less on water infrastructure when they should spend more, says Bill Reinhardt, editor of Public Works Financing, a newsletter that follows the industry.
The Congressional Budget Office that capital spending on major projects of new construction and rehabilitation of water services is declining, and federal grants. Capital expenditure of state and local governments reached US $ 33 billion in 2014, up 23 percent from $ 42.7 billion in 2009, data adjusted for inflation. And federal spending on grants and loans decreased to $ 3.4 billion in 2014, up 35 percent from $ 5.3 billion in 2011.

The mayors are worried.

According to a 2015 survey by the US Conference of Mayors, mayors of cities of more than 30,000 said their No. 1 concern was the lack of investment in infrastructure. Its main need was transportation (22 percent), followed by roads (20 percent) and water, including sewage and stormwater (18 percent).
"A great thing as Flint is needed for people to care about the water," said Todd Herberghs, executive director of the National Council for Public-Private Partnerships in Washington.

"The roads are, the ways they use water But people really take for granted People consider cheap and fair, good, right there.?.".

Water is Touchy'

water associations can be controversial.

Residents often worry about losing control over the water supply, and the fear that a private company will impose rate increases without voter participation. Food & Water Watch, a Washington-based nonprofit, opposes P3s because, he said, that do not result in cost savings and can be more expensive for consumers public systems. Meanwhile, unions are concerned about job protection for workers in the city.

But DiLoreto, former ASCE president, said rate increases are inevitable, with or without alliances. DiLoreto said many years of insufficient spending on infrastructure has put the city in the position today.

The bill monthly average water increased from 6 percent in 2015 and 41 percent since 2010, according to a survey of the 30 largest cities of Circle of Blue, a research firm nonprofit focused on resources natural. Atlanta, which has a public management system after having experienced private, has the highest combined wastewater for the nation at $ 325.52 for a family of four monthly bill.

Despite these increases, more rate hikes for consumers to pay for improvements will be required, DiLoreto said. Americans pay hundreds of dollars a month for cell phone and cable television service, but it is expected that water and sewer rates to be much lower, he said. In fact, water bills have been kept artificially low by local governments under pressure from the public, he said.

"You and I have to decide to have clean drinking water is important," he said. "And we must be willing to pay money to get this done."

Richard Anderson, Senior Advisor of the Conference of US Mayors Water Council, said that cities should consider partnerships because the costs of infrastructure improvements are so high that some cities would go bankrupt trying to pay .

"We allow the water to be used as a monopoly of local governments," Anderson said. "People will evaluate the meetings and religious posts and says:".? Rain is free Why do we have to pay so much, "Well, go and grab You are not in Ethiopia not you.! Do not take a bucket to the river and get dirty water. It is very difficult for the public to understand why you have to pay a lot of clean water. "

Woodbury, Councilman William Fleming tried to reassure the 25 people at the meeting that the sale of water system Woodbury is not a done deal. There will be public hearings for citizen participation, he said, and months of discussion and study.

"Until the last minute, we can always say no," Fleming said.