Agenda - Public Works Committee - 10/19/2021

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9.1 c Public— Private Partnership A public-private partnership, also called a P3, is a cooperative agreement between a private company and a unit of government to provide a service. There are community water and wastewater facilities across the U.S. that are based on a public-private partnership, ranging from large design-build-operate projects to shared functions such as administration and billing. There is flexibility in the roles and responsibilities of the public and private partners. 9.1 d Privatization In a completely privatized model, a corporation owns and operates the utility and in context of this study, is the water service provider for a municipality or group of municipalities. Privatization of drinking water service transfers all ownership, operations, and management responsibilities to a private entity. Municipalities may sell their existing water utility to a private entity, or elect to fund the construction of a new utility owned by a private entity. In this model, the role of the municipal government(s) is to establish policies and provide oversight in addition to the oversight and regulation administered by the state. 9.1 a Application for Northwest Metro Communities For the purposes of evaluating cost sharing strategies, this study assumes that the governance structure for a Northwest Metro regional water system will be an independent Joint Utility. At this concept level, a Joint Utility structure provides a clear demarcation of shared facilities and associated costs for the member communities. With continued planning and development of regional system features, the questions associated with governance structure and the related funding of the system will evolve and can be explored in more detail. 9.2 Cost Sharing A simple cost sharing strategy was applied to the concept level system developed for a Northwest Area regional surface water supply system (Approach 1). This is meant to serve as an example and only extends through 2040. 9.2a Funding The funding sources available include: • WAC (the joint utility receives a portion of WAC for each new connection) • Lateral Benefit (assessment already considered in the capital costs) • Trunk Charges • State/Federal Grants • PFA Loan • Water Rates 9.2b Concept System Features The features of the concept regional surface water system for this cost sharing example include: • Phase Al B, C Trunk Watermain — 36" pipeline meeting 2040 demands for all communities — Pump stations/storage to meet 2040 demand for all communities • 25 MGD surface WTP— meeting 2040 demand 9.2c Cost of Service To estimate the water rates that a regional utility would charge for the concept system defined in this example, the following assumptions apply: • WAC — 20,100 additional WAC by 2040 Page—39 1 METROPOLITAN COUNCIL