DAY 1: Wednesday, July 8, 2020 (note all sessions in EST)
12:00 PM EST – 12:05 PM EST Summit Start: Introduction
12:05 PM – 12:15 PM Summit Opening Welcome: Jim Madaffer, Chair, San Diego County Water Authority Board of Directors Opening this year’s Summit, we welcome Jim Madaffer with the San Diego Country Water Authority. Mr. Madaffer will help us kickoff this year’s program with details about the Water Authority's innovative projects, speaking to challenges in the current environment and the role of partnerships in advancing its mission to provide a safe and reliable water supply to the region.
12:15 PM – 12:45 PM Opening General Session: Pressure and Opportunity in 2020 Nationwide municipalities and utilities are confronting unprecedented uncertainty, with tightening operational and financial constraints, because of the COVID-19 crisis and current economic recession. States, municipalities and water utilities face the need to renew dilapidated wastewater and biosolids treatment systems, plan for the capital intensive requirements of the NPDES, and meet the emerging drinking water infrastructure challenges of pollutants such PFAS and 1,4 Dioxane.
But in any crisis there is also opportunity: to reduce cost, secure new sources of revenue, improve performance and manage debt capacity through new ways of working. In this opening session of 2020 program we will cover a few of these challenges as we explore some of the experiences and lessons learned from the 2008 financial crisis and subsequent recession on water and wastewater enterprises, and discuss the potential role innovative delivery models and financing structures can play today in driving forwards infrastructure renewal during this difficult time.
Presenters Stephen Auton-Smith, Managing Director, Ernst & Young Infrastructure Advisors LLC G. Tracy Mehan III, Executive Director of Government Affairs, AWWA David Schneider, General Manager, SUEZ
1:00 PM – 1:30 PM Virtual Room 1: Regional Conveyance System Study: How Partnerships Leverage Innovative Thinking and Drive Win-Win Solutions It’s not too early to explore potential partnerships – even in the feasibility study phase. This panel discussion will describe the San Diego County Water Authority’s Regional Conveyance System Study and focus on both traditional and non-traditional project delivery, including opportunities for public--private partnerships. The discussion will also present how engaging with potential partners early can help to leverage opportunities for mutually beneficial partnerships that yield stakeholder and regional benefits. This panel aims to share information that may be useful to those organizations pursuing potential large-scale water infrastructure projects.
Presenters Kelly Rodgers, Director of the Colorado River Program, San Diego County Water Authority Pierce Rossum, Rate and Debt Manager, San Diego County Water Authority Kevin Davis, Vice President, Black & Veatch
1:00 PM – 1:30 PM Virtual Room 2: Understanding Asset Recycling for Water Based Infrastructure Asset recycling is a means to monetize existing infrastructures, in this case water infrastructure, and engaging private partners to invest in and upgrade existing asset needs under present budget and financing constraints. Through recycling of lease proceeds created from long-term leases of facilities, new funding source potential is created for development of new infrastructure projects. Asset recycling addresses both existing, aging facilities and future projects. In this session our panel will discuss topics including the increase of private capital in asset recycling, how performance provisions in long-term leases ensure facility improvements, and the increase in state and local governments utilizing asset recycling as a tool to create additional funding.
Presenters Charles Renner, Partner, Husch Blackwell Bruce Allender, Chief Operation Officer, infraManagement Group (wholly owned subsidiary of Black & Veatch) Hon. Robert Eckels, Attorney, Husch Blackwell; (Former) County Judge of Harris County, Texas Chris Elmore, Vice President, Public Sector and Infrastructure Banking Group, Goldman Sachs
1:00 PM – 1:30 PM Virtual Room 3: The Differences Between Water Project Funding vs. Project Financing This session will introduce fundamental financial topics related to public-private partnerships We also review how public-private partnership financing models are evolving and how the role of the public sector changes under the different approaches. It will explore the factors that affect the rating and availability of private finance, contrasting projects with guaranteed off takers and projects taking risk on rate payers as well as looking at the impact of risk sharing between the public and private parties. Particular attention will be paid to the impact of choices in procurement model, agreement terms and rate controls on the private financing, the public sector and the customer.
Presenters Denis Braham, Shareholder, Winstead Philip Genetos, Partner, Ice Miller Jonathan Yates, Transaction Advice Leader, Arup
1:00 PM – 1:30 PM Virtual Room 4: Technical P3 Document Best Practices The volume of documents that make up a P3 procurement often complex at first glance. In particular translating technical requirements and performance specifications into sound contract documents can be a tall order and is a frequent source of frustration. In this session you’ll hear proven strategies from a legal and engineering perspective employed to wrangle your technical team and produce strong technical specifications, contract drawings, and reference document packages for your water projects.
Presenters Frank Liu, Associate Attorney, Nossaman LLP Brian Shell, P.E., Senior Technical Principal, WSP USA
1:45 PM – 2:15 PM Virtual Room 1: Stormwater Partnerships: Not Just Municipalities. Not Just Stormwater.Owners Seeking Bigger Solutions Serving Our Communities. Stormwater presents an intriguing combination of both need and growing opportunity for public-private partnerships of different forms and scales. The needs of industry and government (infrastructure owners) include responding to stringent stormwater permit requirements, depleted groundwater basins, climate adaptation, and mitigation to support major civil works. Opportunities include the availability of new State and local funding measures, watershed-based alternative compliance approaches, and coordination with transportation and other agencies. Successful project examples have included integration of fairness, equity and economic and social justice into the fabric of project delivery. This panel will include local governments, developers, and innovators seeking to create opportunities for accelerated implementation of multi-benefit solutions.
Moderator Ken Susilo, California Water Resources Manager, Geosyntec Consultants
Panel Dr. Cris Liban, Chief Sustainability Officer, LA Metro Liz Crosson, Director of Infrastructure, City of Los Angeles Dominique Lueckenhoff, Senior Vice-President of Corporate Affairs & Sustainability, HUGO NEU Group Amanda Booth, Senior Environmental Program Analyst, City of San Pablo, San Francisco Bay Area Keisha Brown, Partnership Liaison, Corvias
1:45 PM – 2:15 PM Virtual Room 2: Watershed Financing Partnerships for Integrated Water Management In this panel, we explore opportunities for funding water quality projects on a watershed basis using Clean Water State Revolving Fund financial assistance directly and as a catalyst for further funding. We will look at the various ways a watershed finance partnership may be structured, the benefits of this type of partnership, and the various CWSRF financing mechanisms that can be used to support them.
Please join CWSRF National Program staff from EPA along with the U.S. Endowment for Forestry and Communities as we discuss these innovative partnerships and the opportunities for utilities, NGOs and private enterprises to build them to address some of the nation’s most critical water quality challenges.
Presenters Michael Deane, Chief, Clean Water State Revolving Fund, U.S. Environmental Protection Agency Jeff Lerner, Healthy Watersheds Consortium Coordinator , U.S. Endowment for Forestry and Communities Alison Souders, Environmental Protection Specialist, U.S. Environmental Protection Agency Kelly Tucker, Financial Analyst, U.S. Environmental Protection Agency
1:45 PM – 2:15 PM Virtual Room 3: Preparing a Successful Procurement A P3 procurement model is a combination of design, construction, financing, operations, and maintenance. In this panel we discuss the key issues that public agencies must consider in conducting a project procurement - structuring the agreement, conducting a fair and competitive procurement process, and negotiating a final agreement that is transparent and protects the public interest. Panelists will review best practices and new approaches to procurement in the context of public-private partnerships, and considers how owners can most effectively structure risk transfer in design and construction costs, operational and maintenance challenges, and factors that can impact value for money analysis.
Presenters Sia Kusha, Group Head, Project Development and Partnering, Plenary Rebecca Seamands, Partner, Ice Miller Henry Patel, Vice President, Asset Development Jeff Nydegger, Co-Chair, P3, Infrastructure & Project Finance Industry Group, Winstead
1:45 PM – 2:15 PM Virtual Room 4: How Construction, Operating and Contractual Risks Increase After the Coronavirus The coronavirus outbreak and the unprecedented measures to contain it resulted in the suspension, delay or material slow down for many PPP projects under construction. How the impact of these delays are contractually addressed varies by project and protracted negotiations will persist for some time for many existing projects. New PPPs in procurement must address coronavirus related risks upfront, which has delayed and even canceled some projects. The future project pipeline could be in jeopardy as public entities delay or cancel large capital projects to focus on preserving cash resources. Projects are also exposed to the weakening credit quality of construction companies that will also be unwilling to take fixed-price contract risk without appropriate risk allocation to mitigate coronavirus related risks, reducing the potential pool of bidders for new PPP projects. The speakers will discuss the impact of the coronavirus outbreak on PPP projects in construction, how existing force majeure clauses address this risk and our expectations for how it will be addressed moving forward, and the outlook for future projects post the initial coronavirus outbreak.
Presenters John Medina, VP-Senior Credit Officer, Global Infrastructure and Project Finance Group, Moody's Investor Service Kathrin Heitmann, VP-Senior Analyst, Global Infrastructure and Project Finance Group, Moody's Investor Service
2:15 PM – 2:45 PM Virtual Expo Hall / Digital 1 on 1s / Networking Break
2:45 PM– 3:15 PM Virtual Room 1: An Introduction to WIFIA This presentation will provide a basic overview of the WIFIA program, information on benefits to a prospective borrower, and an update on WIFIA’s current loan portfolio. The intended audience for this presentation are prospective borrowers including municipal entities, tribes, corporations, partnerships, and State Revolving Fund programs private and non-governmental organizations that support prospective borrowers.
Presenters Jorianne Jernberg, Director, WIFIA Program U.S. Environmental Protection Agency Amit Srivastava, Underwriter, WIFIA Program, U.S. Environmental Protection Agency
2:45 PM– 3:15 PM Virtual Room 2: Drinking Water Partnerships in California Approximately one million Californians do not have access to safe drinking water and are served by non-compliant and struggling public water systems, state small water systems, or unregulated individual private wells. In response to this public health crisis, the State Water Resources Control Board (SWRCB) Safe and Affordable Funding for Equity and Resilience (SAFER) program was established in 2019 through the landmark Senate Bill (SB) 200 Safe and Affordable Drinking Water Fund. The SAFER program is a comprehensive set of tools, funding sources, and regulatory authorities designed to achieve the Human Right to Water for all Californians. The implementation of the SAFER program will also lead to new opportunities in investing in drinking water infrastructure and developing models for improving technical, managerial, and financial capacities of public water systems, particularly in some of California’s most under-served communities.
This session will kick off a 3 part conversation lead by the State Water Resources Control Board, and begins with a survey of new SWRCB authorities, funding tools, and internal offices charged with implementing the SAFER program. Presenters will also provide a general overview of the types of partnership projects possible, ranging from sharing managerial services to full consolidations.
Presenters Shen Huang, Southern Engagement Unit Engineer, California State Water Resources Control Board, Division of Drinking Water Castulo Estrada, SAFER Advisory Committee Member & Coachella Valley Water District Board Director
2:45 PM– 3:15 PM Virtual Room 3: P3 101 - What to Consider When Starting Out The session will cover issues that clients need to consider before entering a partnership. As with any change in the way a municipality services its customers, there is significant planning required to ensure a successful outcome. This is particularly true when forming a P3. This discussion will cover the advanced thinking and decision-making that should be considered for a successful procurement. Panelists will outline critical political, technical and financial points for clients to consider as they prepare for the procurement process and will also share their experiences and lessons learned.
Presenters Sallye Perrin, Senior Vice President, WSP Ignacio Beneyto, Process Manager, ACCIONA Allison Larr, Vice President, Citigroup Thomas M. Mulvihill, Managing Director and Group Head of Infrastructure Finance and P3, KeyBanc Capital Markets
2:45 PM– 3:15 PM Virtual Room 4: Solutions for Long Term Water Project Contracting Two forms of life-cycle contracting have been predominant over the last 20 years in the water sector: DBOM and P3 (DBFOM). Both offer a single point of accountability for contract performance over the long term, a key requirement for public agencies. In a DBOM, a guaranty is provided by the operator’s parent company. In a P3, an equity contribution is made to a special purpose project company, accompanied by a private project finance loan (P3). This session will explore two potential new solutions that also can achieve one point of long-term accountability. First, a successor guarantor structure similar to a DBOM, under which a design-builder’s guaranty is replaced by the operator’s guaranty following project acceptance. Second, an equity-only P3 (or wide-equity), where the equity investment component of a P3 is retained but the long-term private project debt component is replaced either partially or fully by lower interest rate, public agency debt or SRF or WIFIA loans to the public agency. A leading owner’s-side legal advisor specializing in water industry alternative delivery procurements will explore the challenges and opportunities inherent in both new approaches.
Presenters Eric S. Petersen, Partner, Hawkins Delafield & Wood LLP Rick Sapir, Partner, Hawkins Delafield & Wood LLP
3:30 PM – 4:00 PM Virtual Room 1: The Intersection of Water and Power This panel will explore the linkages between water and power, and examine the benefits and challenges of a more holistic approach: Which models can be employed to drive energy efficiency and water usage benefit from a more holistic approach and private sector innovation? Some utilities in the US provide only water and/or sewer services, while others are multi-utilities that provide both water and power services. We will discuss the benefits and challenges of both approaches and the potential for greater regional cooperation in particular in areas with a growing population and those that face declining water use and a declining tax base. Time will be spent analyzing the funding challenge: Both water and energy use are usually funded ultimately through rate payers. Is a lack of willingness to increase water rates driving low investments in water infrastructure? How can the water sector learn from the power sector?
Presenters John Dionisio, Director of Business Development, Meridiam Jonathan Yates, Transaction Advice Leader, Arup
3:30 PM – 4:00 PM Virtual Room 2: Funding Solutions: More Essential Than Ever Funding solutions have always been important to water utilities, but now, in the wake of anticipated Covid-related budget shortfalls, access to funding and financing options will be more critical than ever. As a result of the Covid pandemic, municipal and utility budgets are expected to take a hit in the medium to long term due to a lower tax base, inability to collect debt, and the inability to raise user rates, among other things. As such, projects may be delayed or put on hold indefinitely without adequate budget capacity and/or the ability to issue general obligation (GO) or revenue bonds. In this session we will review options for project owners, including exceptionally low rate loan programs such as WIFIA and SRF, as well as private financing. Join us to learn how each of these might potentially help advance critical projects that must move forward despite new market and budgetary realities.
Presenter Francesca McCann, Business Development Director, infraManagement Group (wholly owned subsidiary of Black & Veatch) Michael Deane, Chief, Clean Water State Revolving Fund, U.S. Environmental Protection Agency John Germain, Capital Markets, Corvias Mike Irlbeck, Director, EPCOR Water Arthine Cossey van Duyne, CEO & Founding Partner, WaterFunder
3:30 PM – 4:00 PM Virtual Room 3: What Do Investors Really Care About? A no-nonsense assessment of what the private sector is looking for when assessing whether to bid water P3 infrastructure project opportunities. Learn what makes a project attractive to a potential P3 partner and understand the red flags for private sector bid teams, how to avoid them as a public-sector procurer, and how to get the best out of the private sector in a competitive process.
Presenters Richard Lopatin, Vice President, EY Infrastructure Advisors LLC Klair White, Senior Vice President, Ernst & Young Infrastructure Advisors LLC
3:30 PM – 4:00 PM Virtual Room 4: What is Due Diligence and What Role Does It Play in PPPs? Most parties considering a PPP probably don’t even consider due diligence an important project role. Many PPP proponents can’t even describe the multiple roles due diligence efforts might play throughout the transaction. Due diligence however can determine if a PPP is feasible and can meet the sponsor’s desired policy objectives (or not), help define a long-term sustainable transaction, mitigate project risks, and gauge the practical and financial reasonability of a PPP proposal. For this presentation we will focus on real world examples of where PPP due diligence has improved PPP outcomes.
Presenter Howard Steiman, PE, Senior Engineer – Water Services, WSP
DAY 2: Thursday, July 9, 2020 (note all sessions in EST)
12:00 PM – 12:15 PM Summit Start: Opening Remarks
12:15 PM – 12:45 PM Session: Challenges and Opportunities for Water P3s Have you ever wondered what it is like in the conference room as a public water officials meets with their advisers? Here is your chance! Please join us for this session as we walk through a project development with advisors and partners, and explore common questions and walk through how projects move forward.
Presenters Neil Callahan, Director, WSP James Eklund, Of Counsel, Squire Patton Boggs Melody LaBella, P.E., Resource Recovery Program Manager, Central Contra Costa Sanitary District Henry Patel, Vice President, Asset Development, Kiewit
1:00 PM – 1:30 PM Virtual Room 1: Federal Use of Public-Private Partnerships in the West Increased population, reduced water supplies and maturing water infrastructure are collectively putting increased strain on the available water supplies in the Western United States. Traditionally growth and development in the West were dependent upon imported water from federal and state developed water resources. Today communities across the western region are facing constraints on available water and are increasingly turning to water reuse, recycling. Storm water capture and desalination to expand their water portfolios and provide increased resilience to drought and support communities. Federal water agencies have shifted from their traditional role of large project development to now facilitating the use of public-private-partnerships to augment local supplies. Title XVI, WIFIA, and the recently published Water Reuse Action Plan are focused on the specific challenges facing the West.
Experts from the Department of the Interior, Environmental Protection Agency and the U.S. Army Corps of Engineers have developed policy and have been utilizing Congressionally mandated programs focusing on local water development and management. Representatives from these federal agencies will be assembled to discuss specific examples of how their programs are being implemented and for a discussion on the role of these programs in the future.
Moderator David Wegner, Senior Strategist, Woolpert
Panel Michael Patella, Senior Policy Advisor, Water Infrastructure and Resiliency Finance Center Office of Water, EPA Aaron Snyder, Chief, Regional Planning & Environment Division, U.S. Army Corps of Engineers Robert Wolf, Director, Bureau of Reclamation, Department of Interior
1:00 PM – 1:30 PM Virtual Room 2: Public-Private Partnership selected for San Diego Energy Storage Facility Project With increasing production of renewables during the day, pumped hydro energy storage facilities are well-suited to store the excess renewable energy and then discharge that energy when demand increases, and most renewables are not available. To help meet California’s clean energy goals, the San Diego County Water Authority and the City of San Diego are partners on the potential San Vicente Energy Storage Facility located in San Diego, California. These public agencies selected a private developer to help develop, finance, construct and operate the project while mitigating risk to water ratepayers. Learn how a public private partnership can help achieve California’s clean energy goals while providing local benefits for the San Diego Region. Panel Gary Bousquet, Deputy Director of Engineering, San Diego County Water Authority Neena Kuzmich, Engineering Manager, San Diego County Water Authority Berk Gursoy, Senior Vice President, Brookfield Renewable
1:00 PM – 1:30 PM Virtual Room 3: Innovative Approaches to Realize Cost Savings and New Revenue Streams at Wastewater Facilities Wastewater treatment system managers more and more are being required to increase resiliency, reduce their carbon footprint and achieve increasingly stringent regulatory requirements, all while minimizing the need for rate increases. Several municipalities are finding that the use of Public Private Partnerships and Alternative Delivery Projects are important tools to achieving their objectives. We'll discuss projects being developed allowing wastewater treatment facilities to realize energy cost savings and the receipt of new revenue streams including from tipping fees, the sale of electricity and gas, and from the sale of renewable energy attributes.
Presenters Andy Kricun, fmr Executive Director of Camden County Municipal Utilities Authority | Managing Director, Moonshot Missions Jim Meehan, Executive Director, Rahway Valley Sewerage Authority Rick Sapir, Partner, Hawkins Delafield & Wood LLP
1:00 PM – 1:30 PM Virtual Room 4: How Do I Design a Water P3? - Best Practices in Deal Structuring The basis of all good public-private partnerships is in the structuring of the deal and the management/oversight of the contract. During this session both public and private sector experts will discuss the basic and best practices for P3 deal structuring. They will also share their views on the best practices for contract management for the long-term success of a P3.
Presenters Neil Callahan, Director, WSP Jeremey Ebie, Founder and CEO, Phoenix Infrastructure Group James Eklund, Of Counsel, Squire Patton Boggs
1:45 PM – 2:15 PM Virtual Room 1: Partnership Models for Community Revitalization In this panel we will discuss applying partnership solutions to state, municipal, and city initiatives for green infrastructure and community revitalizations such as green streets, drainage and water quality management programs. These innovative partnership solutions to stormwater challenges generate potential investment in green infrastructure initiatives that can provide for local economic growth and improved quality of life in urban and underserved communities - often creating public benefits on private property. Such partnerships help communities optimize limited resources through agreements with private parties to help build and maintain public infrastructure by leveraging public investment with private “risk capital” at estimated rates of 10:1 or higher.
In this discussion we examine the roles of stakeholder as our panelists share thoughts on how such partnerships can accelerate the rate and reduce the cost of green infrastructure, while also providing flexibility, access to technology, and address dynamic community development trends and goals. We’ll further consider why the model requires a strong, long-term partnership between the municipality and the private partner; and how that leads to shared risk burden and greater accountability, by reinvesting cost savings and revenues to create a pool of funds for future projects. By incorporating community revitalization needs into the plan through a focus on green infrastructure, the panel will explore how community based public-private partnerships evolve the traditional P3 contractual mechanism into a partnership that is focused on improving service, providing cost advantage, transfer risk, achieving public policy goals, and raising a community's quality of life.
Presenters Francesca McCann, Business Development Director, infraManagement Group (wholly owned subsidiary of Black & Veatch) Greg Cannito, Partnership Innovator, Corvias Adam Ortiz, Director, Montgomery County Department of Environmental Protection
1:45 PM – 2:15 PM Virtual Room 2: Picking the Right P3 Partners P3 projects are still new and different to many: they require new processes, new ways of thinking, new legal and financial models, and an understanding of new risks. To attract the right P3 consortium partners (developers, investors, contractors and service professionals), the public sector must instill confidence in the procurement process. This session will consider various methods agencies can implement to use this initial phase of the P3 process to their advantage to not only generate interest from the private entities in their project but to also minimize and avoid the issues associated therewith. At the same time - building a successful procurement and delivering a project demands identifying the right partners. When running a P3 procurement, the public sector project manager may potentially spend more time with their advisors than they will with their own family – and the public sector must pick their advisors carefully. Similarly, when the public sector selects the winning private sector partner for a full life-cycle of a project (over 30 years) it is critical to identify the right partner. Join this session for a candid discussion from both those who have made these selections and those who have been part of these partnerships and will share their experiences and lessons learned.
Presenters Mary Scott Nabers, President and CEO, Strategic Partnerships, Inc. Leslie Fangman, Director of P3 Infrastructure, Saunders Construction Henry Patel, Vice President, Asset Development, Kiewit
1:45 PM – 2:15 PM Virtual Room 3: Structuring and Financing Options for Water P3s P3s have long been discussed as a potential solution to the underfunding of U.S. water infrastructure needs. In this session we explore various financing structures that have been successful in delivering water and water treatment projects: comparing the tax-exempt and taxable debt models, equity options, and different government programs. We also discuss how P3 financing models are evolving and how a traditional project finance program compares to other P3 tools, such as concession agreements, that are more common in other sectors. Panelists will explore what we can we expect regarding future market activity and prospects for both primary and secondary water infrastructure markets. We will look at opportunities in water supply and water treatments, privatization of existing water systems, roll-ups to aggregate smaller projects, and funding of capital improvement programs to remedy deferred maintenance.
Presenters Allan T. Marks, Partner, Milbank Brian Cullen, President & CEO, VICO Infrastructure Company LLC Ray DiPrinzio, Co-Head of Infrastructure, North America Global Structured Finance, SMBC Caleb Powers, Vice President, Global Infrastructure, The Carlyle Group Jonathan Yellen, Managing Director, Yellen and Co.
1:45 PM – 2:15 PM Virtual Room 4: ESG risks in the Water Sector and Credit Implications The focus on sustainable water management continues to increase across the globe as water utilities face various challenges in managing their water resources. The speakers will discuss the rising credit risks related to heat stress and droughts, storm and flood management, and sea level rise. The severity, frequency and volatility related to these risks is going to rise in some areas and fall in others. Speakers will identify regions of the country that are the most and least exposed as well as risks for their water, sewer and stormwater utilities.
Presenters Kathrin Heitmann, VP-Senior Analyst, Global Infrastructure and Project Finance Group, Moody's Investor Services Khalid Husain, VP-Senior Analyst, ESG Group, Moody's Investor Service
2:15 PM – 2:45 PM Virtual Expo Hall / Digital 1 on 1s / Networking Break
2:45 PM – 3:15 PM Virtual Room 1: Emerging Drinking Water Partnerships in Urban Southern Californian Communities Disparities in access to safe drinking water exist in certain urban disadvantaged communities, but this issue has often been more invisible compared to rural communities. This panel discussion will comprise of several experts discussing the drinking water challenges faced by communities that located in urban islands or the outskirts of the service areas of urban water systems. This panel discussion will also share some currently active annexation projects in San Diego County that involve diverse partnerships, including communities, water systems, San Diego County Water Authority, Metropolitan Water District, and the Local Agency Formation Commission.
Presenters Amy Reeh, General Manager, Yuima Municipal Water District Joe Lomeli, Operations Manager, Ramona Municipal Water District Mike Bailey, Community Leader, Ramona Private Wells Ricardo Soto, Engineer for Ramona MWD
2:45 PM – 3:15 PM Virtual Room 2: WIFIA Borrower Panel This borrower panel will feature three WIFIA borrowers that have closed loans with the program in the past year. The borrowers will discuss why they chose WIFIA financing and their experiences in working with WIFIA. The intended audience for this presentation are prospective borrowers including municipal entities, tribes, corporations, partnerships, and State Revolving Fund programs private and non-governmental organizations that support prospective borrowers.
Moderator Arielle Gerstein, WIFIA Program Manager, US EPA
Presenters Lee Lindsay, Senior Program Manager, City of Hillsboro, OR Jesse Pompa, Manager of Grants, Inland Empire Utilities Agency, CA Mack Cook, Director of Administration & Finance, City of Cortland, NY
2:45 PM – 3:15 PM Virtual Session 3: The Emerging Growth of Progressive DB and What it Means for P3 Projects In the past decade, resulting economic conditions and technical changes in the water and wastewater sector, along with increased demands for public and industrial water and wastewater services, have opened new avenues to infrastructure projects using a public-private partnership (P3) model. Today's P3s offer innovative approaches to financing and facility ownership. Progressive Design Build and P3 projects include large-scale or complex storage, conveyance, and treatment facilities for water and wastewater, residuals, energy recovery, water reuse, and stormwater management that offer a variety of public benefits.
As in other sectors (e.g., transportation and social infrastructure), water sector P3s are built on the strengths of design-build delivery methods while affording owners innovative approaches to risk management and lifecycle costs. These attributes, which are embedded in these delivery models, address the unique characteristics of water projects that require a high degree of collaboration throughout the planning, financing, management, and operations and maintenance stages. Subsequently, it goes without saying that because of the complex structure of P3 projects, including legal, commercial, financial, and technical components, owners or organizations pursuing a P3 project must embrace collaboration in order to achieve a successful conclusion.
This session presents the most recent research conducted by the Water Design-Build Council on the growth of collaborative delivery models – why owners are pursuing them –especially the preference for progressive design-build, and a look at a potential delivery method defined as progressive P3. WDBC’s research data identifies the growth trends and the market driver’s behind them. It concludes with a hypothesis as to the use of a Progressive P3 Model in the industry may receive favorable acceptance.
Presenters Mark Alpert, Executive Director, Water Design-Build Council Leofwin Clark, Vice President, Brown and Caldwell
2:45 PM – 3:15 PM Virtual Room 4: Alternative Procurement Guidebook to Help Permittees with CBP3s and Pay-for-Performance Contracts Learn about a new guidebook for deciding if a Community-Based Public-Private Partnership (CBP3) or Performance Contract is right for your community, understand 10 necessary elements, strategize stakeholder engagement, and know how to start.
Section 1: Is a CBP3 Right for Your Community provides a flowchart to determine the right contracting model for each unique municipality.
Section 2: Designing a CBP3 identifies the typical process and design elements for developing a CBP3, reducing the likelihood that a critical constraint emerges.
Section 3: Building Support for Your CBP3 describes the importance of strategic stakeholder engagement and provides strategies to build support for your project.
Section 4: Getting Started provides checklists for designing the products you need to move forward such as essential elements of an RFQ or RFP.
Presenter Chad Praul, Partner, Water Practice Area Environmental Incentives
3:30 PM – 4:00 PM Virtual Room 1: Water and Wastewater Operating Staffing in the New Millennium Imagine managing a water or wastewater plant and having no qualified employees to operate your plant or anyone who wants to learn how to operate your plant. The possibility of this is becoming a reality. Gone are the days when you could easily find a cadre of qualified candidates who were willing to accept the job and exercise enough hard work and patience to become certified and climb the career ladder. We'll discuss tips and potential solutions for recruiting interested and capable candidates that will strengthen your workforce for the future.
Presenter Dan German, SPHR, Manager Workforce Development, Inframark
3:30 PM – 4:00 PM Virtual Room 2: What is Value for Money? A Primer Not every infrastructure project can or should be delivered as a P3, and before initiating procurement as a P3 project, public agencies often undertake a business case analysis to determine whether a P3 is viable. The Value for Money (VfM) analysis was developed to compare the estimated total life cycle cost of a project implemented by a public agency with traditional infrastructure procurement vs. a P3 procurement. Some public agencies advocate a VfM be prepared at multiple stages of a project development and procurement, to help serve as a decision tool to ensure that the choice of a P3 procurement is the best long term value proposition for the public sector at a given point in time based on the best information available. In this session we’ll review how VfM analyses are performed, including assessment of risk allocation, risk analysis and quantification of risks and adjustments to create an “apples to apples” comparison.
Presenter Michael Palmieri, President and Founder, p3point
3:30 PM – 4:00 PM Virtual Room 3: Partnership and P3 Innovations and Opportunities with Stormwater Stormwater partnerships serve as a unique opportunity to take the challenges associated with municipal Clean Water Act compliance and turn them into community assets that can aggregate funding and support environmental enhancement, support social equity and strengthen local economies. This session will share specific examples, strategies, and tactics for achieving multiple benefits for communities.
3:30 PM – 4:00 PM Virtual Room 4: The Specifics of Performance-Driven Payment While risk transfer and performance-based contracting are frequently referred to in the discussion on P3 as one of the model’s key merits, what does this really mean? This session will be a deeper dive on how risk transfer actually materializes in the form of performance standards and failure regimes tied to deductions in the payment mechanism, and talking about the kinds of carrot vs stick incentives to deliver projects in accordance with contractual obligations and the financial/operational repercussions where “what if” scenarios actually arise.
Presenters Klair White, Senior Vice President, Ernst & Young Infrastructure Advisors LLC Kevin Chandler, Vice President (& GM of Nassau County Wastewater Operations), Suez Elizabeth Cousins, Partner, Nossman LLP
DAY 3: Friday, July 10, 2020 (note all sessions in EST)
12:00 PM – 12:15 PM Summit Start: Opening Remarks
12:15 PM – 12:45 PM Top 10 Issues When Procuring a P3 As you look to P3 to deliver your infrastructure needs, the procurement model brings new elements to address that differ from traditional procurement. And as you explore the value of P3 and the opportunities this innovative model can create, it’s important to approach your procurement in a manner that allows for your success. What do you need to do to be successful when procuring a Public-Private Partnership? Join this panel for a step-by-step review of the 10 issues that must be addressed in a P3. Critical factors to be discussed will include Vision, Political Champions, Communication, Community, Commitment, Experience, Funding, Staff, Time, and Access.
1:00 PM – 1:30 PM Virtual Room 1: Operational Phase Collaboration at the Carlsbad Desal Plant: Success Triggers through Case Studies So what happens after a P3 asset is built and in operation? Does the public entity go away? Is the contract put on the shelf to collect dust? Not exactly. This panel discussion will focus on engagement between the private and public sectors during the operational phase of the contract. It will showcase the role of the public sector through three case studies including: 1) Capital improvements after commercial operation begins; 2) Response to pandemics, and 3) Unique issues and the contract administration tools used to navigate them.
Panel Nathan Faber, Principal Engineer, San Diego County Water Authority Peter MacLaggan, Senior Vice President, Poseidon Water Sachin Chawla, President, Poseidon Resources Channelside Neil Callahan, Director Advisory Services, WSP
1:00 PM – 1:30 PM Virtual Room 2:A Better Mousetrap? “OMAR” as an Alternative O&M Approach for DBO and P3 Projects Operations and Maintenance (O&M) for water and wastewater projects can represent fifty percent (50%) or more of a project’s lifecycle cost. For P3s, obtaining long-term O&M performance commitments is a fundamental challenge. Typically, design and construction scope is combined with O&M in a design-build-operate (DBO) model. However, despite the clear performance risk transfer and lifecycle benefits of DBOs, their success in the water and wastewater sector is constrained by a limited competitive landscape, and the complexity of combining competing design-build and O&M business interests within a single contract structure. However, a new concept, defined as Operations and Maintenance At-Risk (OMAR), is emerging that leverages the benefits of the legacy DBO approach with the commercial realities of risk transfer in the water and wastewater sector. Modeled after the Construction Management At-Risk (CMAR) concept, this approach supports the full integration of O&M expertise during the design and construction process, while implementing long-term, performance-based O&M services as a stand-alone contract. This session will describe the OMAR concept in detail based on in-progress implementation for the private-sector and government. The discussion will focus on how the OMAR model is procured and how it is implemented to replicate the lifecycle efficiency and risk transfer benefits of a DBO while simultaneously supporting broader O&M market participation.
Presenter Leofwin Clark, Vice President, Brown and Caldwell
1:00 PM – 1:30 PM Virtual Room 3: Assessing Fiscal Pressure and Credit Challenges for Water Utilities Amid Coronavirus Outbreak Presenters will discuss the financial and credit impact of the coronavirus outbreak on municipal water utilities and their related government owners and how it differs from prior recessions and crisis. Did delinquency rates materially increase during the shelter in place orders? What are the implications for future rate increases and user rate affordability? Will deferred capital spending increase deferred maintenance costs over the long-term? Will more debt financing be utilized to preserve liquidity?
Presenters Jeffrey Bower, Managing Director, Bank of America Steven Goodman-Leibof, VP-Senior Credit Officer, Public Finance Group, Moody's Investors Service Sophia Skoda, Director of Finance, East Bay Municipal Utility District
1:00 PM – 1:30 PM Virtual Room 4: P3 Potential in Rural Communities In this session, United States Department of Agriculture (USDA) Rural Development Agency will provide an overview of the opportunities for financing water and wastewater infrastructure projects in rural communities through partnership with the private lending sector. More than 97% of the nation’s 156,000 public water systems are small systems, serving 10,000 or fewer people. According to the most recent Infrastructure Needs Surveys conducted by the United States Environmental Protection Agency, the projected cost for drinking water and wastewater projects in United States communities with populations of 10,000 and fewer people is estimated to be almost $600 billion in the next 20 years. To meet this financial need, USDA must partner with private lenders to creatively finance these infrastructure projects. Partnerships can include the use of private loans to pay for project design and construction until USDA can close on a permanent direct loan. USDA can also fund projects owned by municipalities and non-profits which have contracted out design, building, operating and/or management of the utility to the private sector. Private lenders can partner with USDA to provide a loan guarantee on private loans. Finally, USDA can work with private lenders to move current direct loan borrowers who have demonstrated financial capacity into the private lending sector by providing loan guarantees to lenders interested in refinancing existing debt. Through these types of public-private partnerships, USDA and lenders can improve access to clean, reliable water and waste disposal systems for households and businesses in rural areas.
Presenters Edna Primrose, Assistant Administrator, USDA Rural Development Water and Environmental Programs Julia McCusker, Regional Vice President – Water, CoBank Monica Pierre, Vice President, Water and Environmental Programs, Live Oak Bank
1:45 PM – 2:15 PM Virtual Room 1: Implementing P3’s with the Federal Government The use of P3’s for water infrastructure and development has been in use in various forms and names since the mid-1970’s. The coupling of federal funds with state and municipal funds began under the auspices of the Clean Water Act. In the mid-1990’s the Title XVI program was authorized by Congress and implemented in the western states by the Department of the Interior. In 2014 the Water Infrastructure Finance and Innovation Act was authorized in 2014 and is administered by EPA. In the same legislation the Army Corps of Engineers was provided authorization to utilize P3’s for water infrastructure.
The use and success of P3’s with the federal government was slow to start as policy needed to be developed before agency implementation and use. Experience is now available to identify areas of success and areas that need work to enhance the use of these finance vehicles. Specifically, the areas of (1) finances, (2) legal, and (3) water infrastructure needs must be properly vetted and assessed before investment occurs. Specific focus will be on identifying governance organization including the use of Joint Power Authorities.
Experts from the private sector will be brought together to discuss experiences. These experts will then be led in a discussion of what is needed from all sides of the P3 discussion in order to meet expectations and a successful project. Lessons learned will emerge that will assist all entities contemplating the use of P3’s for water infrastructure.
This session produced in partnership with the Young Professionals in Infrastructure (YPI).
Moderator David Wegner, Senior Strategist, Woolpert
Panel Geoff Bowman, Vice President, Van Scoyce Associates Kat Sadeghi, National Practice Consultant and Vice President, HNTB Mae Stevens, Executive Vice President, Signal Group
1:45 PM – 2:15 PM Virtual Room 2: Accelerating Water Quality Improvements through P3 and Technology Stormwater runoff is the second largest, and still growing, source of water pollution into the Chesapeake Bay, our nation’s largest estuary. Solutions to reduce stormwater runoff have typically been expensive and difficult to implement across large areas. To help address this issue and accelerate improvements, water quality trading markets have been developed and have been active in Maryland, and other regions within the Chesapeake Bay watershed, for many years. However, credit trades have either occurred between point source dischargers (wastewater treatment plants) or in the agricultural sector, with little to no engagement from private industry to help address impacts of urban stormwater runoff.
The Nature Conservancy, the world's largest environmental non-profit organization, and Opti, a technology company, have formed a joint venture to help solve this problem. The joint venture is focused on increasing the environmental benefits of the thousands of existing stormwater ponds using Opti’s real-time control technology, public-private partnerships, and impact investment. The joint venture’s first projects are taking place in Maryland in partnership with Walmart. The State of Maryland’s Department of Transportation (MDOT) is purchasing the benefits created by improving the performance of Walmart’s stormwater ponds, and in turn meeting their regulatory obligations at a significant savings to taxpayers. These initial projects represent an approach that delivers cost-effective solutions to water pollution that can be replicated across the Chesapeake and the country.
This presentation will highlight an innovative stormwater management approach to utilizing credit trading markets by exploring the details of the structure, financing, contracting, and project delivery of this public/private partnership and how this approach can be replicated to solve additional storm, flood, environmental and conservation challenges nationwide. Currently rollout of the P3 model is underway in Texas and Florida.
Presenters Craig Holland, Sr Director of Urban Investments, The Nature Conservancy Matt Rae, Senior Project Manager, OptiRTC Richard S. Seline, Managing Director, ResilientH2O Partners Jen Wijetunge, P.E. CPSWQ, Senior Engineer, Maryland Environmental Services
1:45 PM – 2:15 PM Virtual Room 3: Innovative Ways to Avoid Construction Disputes – DRBs and Their Application Disputes and claims have been a part of construction projects for many years and oftentimes drag out well after the completion of the project, tying up valuable resources and adding costs. Actively managing the dispute or claim or, even better yet, helping avoid the claim or dispute entirely, saves time and money for all the parties involved. This workshop discusses how Dispute Review Boards (DRBs) have been used for many years and can be applied to water projects. By having a DRB start at the beginning of a project, the DRB can often help involved parties avoid a dispute by being proactive with the parties in getting issues settled and avoiding a dispute altogether. The conversation will provide an overview of the DRB process and how it can help avoid disputes or get them settled in a timely and efficient manner.
Presenters Joseph Gildner, PE.; Deputy Executive Director, Project Management, Sound Transit Elizabeth A. Tippin, Esq., FCIArb, LEED AP
1:45 PM – 2:15 PM Virtual Room 4: What a Well-Structured P3 Should Include This talk will analyze the interests of the players in a P3 deal; identify the legal, political, financial, operational and other issues and potential problems that communities need to be cognizant of; as well as provide a comprehensive fly-over of the contractual terms that a well-structured P3 deal should include. The speakers, a City Administrator and its environmental counsel, will focus on the birth, evolution, and culmination of a recent wastewater finance/operation contract that the City entered into; and provide a granular examination of: • financial considerations that induced the City to consider and enter into a P3 arrangement • how it solicited and evaluated alternative bids • the process of identifying the City’s interests and addressing potential problems • the negotiations with the private party • the problems that arose and how the City dealt with them
Presenters Stephen P. Samuels, Attorney, Frost Brown Todd LLC Joel Montgomery, City Manager, City of Wooster, Ohio
2:15 PM – 2:45 PM Virtual Expo Hall / Digital 1 on 1s / Networking Break
2:45 PM – 3:15 PM Virtual Room 1: Monson & Sultana: A Successful Drinking Water Consolidation Success Story in California’s Central Valley Hear from a panel discussion comprising of community and water system leaders and philanthropic and County partners that came together to address unsafe and unreliable access to drinking water in Monson, an unincorporated, farm-working community located in northern Tulare County that comprises of approximately 40 households that were reliant on individual private wells with nitrate levels up to three times the maximum contaminant level. The experiences and lessons learned will be shared, as Monson sought to create comprehensive solutions, despite daunting challenges to secure state and federal funding assistance and a historic drought that rendered its community without running water. Community partners joined forces to creatively implement interim safe drinking water through Point of Use Filtration, pursue hauled water for sanitation and form its own new public water system to respond to the drought impacts, all while working to ultimately secure the long-term sustainable solution of consolidating with its neighbor, Sultana Community Services District.
Presenters Michael Prado, Board President, Sultana Community Services District Mara Herrera, fmr Community Development Manager of Community Engagement & Planning, Self-Help Enterprises
2:45 PM – 3:15 PM Virtual Room 2: The East County Advanced Water Purification Project (ECAWP) In this session we will discuss the ECAWP, a collaborative effort between Padre Dam Municipal Water District, Helix Water District, the City of El Cajon and the County of San Diego to create a local, sustainable and drought proof drinking water supply for east County. The ECAWP is currently being procured through three progressive-design-build/transitional operations contracts. This panel discussion involving key ECAWP stakeholders, will provide practical advice and lessons learned for public agencies based on the planning and procurement stages of the ECAWP - with a particular focus on choosing the right team.
Presenters Mark Niemiec, Director of Engineering, Padre Dam Municipal Water District Tim Ross, Asst. Director of Engineering, Helix Water District Ken Weinberg, Principal, Ken Weinberg Water Resources Consulting LLC Elizabeth Cousins, Partner, Nossaman LLP
2:45 PM – 3:15 PM Virtual Room 3: Low-Cost Financing Options Join California Infrastructure and Economic Development Bank (IBank) to discover low-cost financing options for eligible water and infrastructure P3 projects. The case study workshop will feature IBank senior staff who will share insights on project and borrower eligibility, how long it takes to receive financing, reimbursable project elements, and much more including an update on the recently approved Climate Catalyst Revolving Loan Fund. Participants will be encouraged to join the discussion, relate challenges they have encountered, and work together to explore financing solutions for needed water and other infrastructure projects.
Presenter Lina Benedict, Loan Origination Manager, California IBank
2:45 PM – 3:15 PM Virtual Room 4: Integrated Approaches to Building a Microgrid Microgrids offer owners and managers an innovative and reliable solution to meet their essential, yet non-core "Utility Grid" needs, i.e. Energy (electric, thermal) plus Water Treatment & Distribution plus Wastewater Collection & Treatment. This extended presentation starts from first principles (what is a microgrid, components and configurations such as renewable and clean energy sources, energy storage systems (electric and thermal), delivery mechanism for power, thermal energy (steam, hot water, chilled water, even hot gas) and resiliency considerations. We’ll then pivot to the principles of microgrid development including, but not limited to rapid concept ideation, rapid Economic analysis (CapEx, OpEx, cash flow analysis), risk identification and mitigations, contract development etc. We will also cover key FEL stage-gates from business assessment, through engineering through construction to Operations & Maintenance. An underlying objective is helping owners install microgrids quickly without or at least minimally impacting facility budgets and everyday operations. A review of lessons learned from the feasibility and design process through construction, startup and testing will be included in addition to the regulatory aspects to consider in a tactical implementation.
Presenter Suresh Jambunathan, CEO, Enwadev
3:30 PM – 4:00 PM Closing Session: P3 Next Steps? Where to Go from Here? Join us for an interactive conversation specifically tailored to audience questions and answers about subjects raised during the conference. Attendees will have the opportunity to submit questions in advance and also join in the discussion of the benefits, values, and applications of alternative delivery approaches in an open dialogue.
Presenters Steve DeWitt, Senior Vice President Business Development, ACS Infrastructure Development, Inc. Lindsey Taylor, Senior Associate, Meridiam Mariana Torres Montoya, Senior Vice President, John Laing
4:00 PM 2020 Summit Ends
OVERCOMING CHALLENGES THROUGH PUBLIC-PRIVATE PARTNERSHIPS
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