SlideShare ist ein Scribd-Unternehmen logo
1 von 11
Downloaden Sie, um offline zu lesen
INVESTING IN
WATER, SEWER & STORM WATER
INFRASTRUCTURE
PUBLIC-PRIVATE PARTNERSHIP
Joseph P. Baumann, Jr.
Chairman
McManimon, Scotland & Baumann, LLC
jbaumann@msbnj.com
City of Bayonne
 The City of Bayonne lies in
the heart of the Port of New
York and New Jersey
 Traditional manufacturing,
distribution, healthcare and
port activities remain
important to the city’s
economy
Bayonne’s Water System
 More than 96 miles of
mains including valves,
fire hydrants etc.
 Water supplied from the
North Jersey District
Water Supply
Commission’s Wanaque
and Monksville
reservoirs
 Total system capacity is
17.6 MGD and on
average uses 8.5 MGDPVSC Water Pollution Control Facility (Newark)
1
2
3
NJDWSC
Aqueduct
Reservoir
4
Kearny
Pipeline
5
Authority
Aqueduct
Force Main
PVSC
Facility
6
1
2
Monksville Reservoir
Wanaque Reservoir
3 Belleville
4 Kearny Water Distribution System
5 City of Bayonne
6
1 City of Bayonne
1
2
2 PVSC Water Pollution Control Facility (Newark)
Force Main
PVSC
Facility
Bayonne’s Sewer System
 Oak Street Pumping
Station pumps flows to
the Passaic Valley
Sewerage Commission by
a force main
 Total system capacity is
17.6 MGD; average daily
dry weather flow 8.3 MGD
 Capacity to pump 40MGD
during wet weather events
caused by combined
sewers
Municipal Authority
Joint Venture (LLC)
United Water
Capital Projects, as Required
Private Equity
Partner
United Water
Consortium
of Lenders
O&M
EQUITY DEBT
Concession
Concession Agreement Structure
Concession Agreement- Risk Allocation
Concession Agreement- Risk Allocation
Long-term contract provisions
provide customers greater
reliability and stability
‘Revenue path’ approach limits
rate increases, prevents windfall
profits and provides flexibility to
guarantee ongoing investment
Improved system
efficiency reduces
operating costs
Capital investment
reduces risk of
service disruption
and protects the
environment
Long Term Contract Benefits
Bayonne Had Questions…
City retains system owner
Governance and operational
standard setting
Rates set by formula
Maintains water authority
jobs
Investment creates new local
job opportunities
No excess revenues
Oversight of funding
RESOLUTIONS
Who maintains system
ownership
Vague operational and
technical standards
Lose control over rates
Impact on jobs
‘Windfall’ to concessionaire
CONCERNS
It Worked!
 We unlocked hidden value
from the city-owned asset
 Upfront payment, eliminated
$125M of BMUA debt
 Capital investment to
modernize water, sewer and
storm water system of
$107M over 40 years
 All BMUA employees have
been hired and trained
 BMUA determined city saves
$35M over duration of the
contract
Day 1 in Bayonne: United Water greets
its new employees
Public Sector Take Aways
 Set Realistic Goals
 Risk Allocation
 Rate Increases
 Capital Needs
 Avoid Trying to Solve Unrelated
Problems
 Prepare Extensive Due Diligence
 Quality Due Diligence Package
 Tie Up Loose Ends
 Engage Experienced Professional
Team
 Engineering, Financial and Legal
 Engage All Stakeholders Early
 Elected Officials, Employees, Users

Weitere ähnliche Inhalte

Andere mochten auch

Andere mochten auch (15)

Sewerage System (Sistem Perpipaan Air Limbah)
Sewerage System (Sistem Perpipaan Air Limbah)Sewerage System (Sistem Perpipaan Air Limbah)
Sewerage System (Sistem Perpipaan Air Limbah)
 
Floors slideshare
Floors slideshareFloors slideshare
Floors slideshare
 
Doors ppt
Doors pptDoors ppt
Doors ppt
 
Design of sewerage collection system and cost estimation
Design of sewerage collection system and cost estimationDesign of sewerage collection system and cost estimation
Design of sewerage collection system and cost estimation
 
Slab
SlabSlab
Slab
 
MEP- Building services
MEP- Building servicesMEP- Building services
MEP- Building services
 
Sewerage System
Sewerage SystemSewerage System
Sewerage System
 
Introduction to building services part 2
Introduction to building services part 2Introduction to building services part 2
Introduction to building services part 2
 
Building Services Electrical (MEP)
Building Services Electrical (MEP)Building Services Electrical (MEP)
Building Services Electrical (MEP)
 
Drainage system
Drainage systemDrainage system
Drainage system
 
Introduction To Building Services
Introduction To Building ServicesIntroduction To Building Services
Introduction To Building Services
 
Building services
Building servicesBuilding services
Building services
 
Flooring
FlooringFlooring
Flooring
 
Floor finish
Floor finishFloor finish
Floor finish
 
drainage class 9
drainage class 9drainage class 9
drainage class 9
 

Mehr von New Jersey Future

"We've got to do what now?" Webinar
"We've got to do what now?" Webinar"We've got to do what now?" Webinar
"We've got to do what now?" WebinarNew Jersey Future
 
NJ Redevelopment Forum 2020 - Morning Plenary - Mallya
NJ Redevelopment Forum 2020 - Morning Plenary - MallyaNJ Redevelopment Forum 2020 - Morning Plenary - Mallya
NJ Redevelopment Forum 2020 - Morning Plenary - MallyaNew Jersey Future
 
NJ Redevelopment Forum 2020 - Morning Plenary - Hollis
NJ Redevelopment Forum 2020 - Morning Plenary - HollisNJ Redevelopment Forum 2020 - Morning Plenary - Hollis
NJ Redevelopment Forum 2020 - Morning Plenary - HollisNew Jersey Future
 
NJ Redevelopment Forum 2020 - Lunch Keynote - Gov. Glendening
NJ Redevelopment Forum 2020 - Lunch Keynote -  Gov. GlendeningNJ Redevelopment Forum 2020 - Lunch Keynote -  Gov. Glendening
NJ Redevelopment Forum 2020 - Lunch Keynote - Gov. GlendeningNew Jersey Future
 
NJ Redevelopment Forum 2020 - Capita
NJ Redevelopment Forum 2020 - CapitaNJ Redevelopment Forum 2020 - Capita
NJ Redevelopment Forum 2020 - CapitaNew Jersey Future
 
NJ Redevelopment Forum 2020 - Moriarity
NJ Redevelopment Forum 2020 - Moriarity NJ Redevelopment Forum 2020 - Moriarity
NJ Redevelopment Forum 2020 - Moriarity New Jersey Future
 
NJ Redevelopment Forum 2020 - Salkin
NJ Redevelopment Forum 2020 - SalkinNJ Redevelopment Forum 2020 - Salkin
NJ Redevelopment Forum 2020 - SalkinNew Jersey Future
 
NJ Redevelopment Forum 2020 - Giannikopoulos
NJ Redevelopment Forum 2020 - Giannikopoulos NJ Redevelopment Forum 2020 - Giannikopoulos
NJ Redevelopment Forum 2020 - Giannikopoulos New Jersey Future
 
NJ Redevelopment Forum 2020 - Adams and Dockwiller
NJ Redevelopment Forum 2020 - Adams and DockwillerNJ Redevelopment Forum 2020 - Adams and Dockwiller
NJ Redevelopment Forum 2020 - Adams and DockwillerNew Jersey Future
 
NJ Redevelopment Forum 2020 - Mahon
NJ Redevelopment Forum 2020 - MahonNJ Redevelopment Forum 2020 - Mahon
NJ Redevelopment Forum 2020 - MahonNew Jersey Future
 
NJ Redevelopment Forum 2020 - Hache
NJ Redevelopment Forum 2020 - HacheNJ Redevelopment Forum 2020 - Hache
NJ Redevelopment Forum 2020 - HacheNew Jersey Future
 
NJ Redevelopment Forum 2020 - Bucci-Carter
NJ Redevelopment Forum 2020 - Bucci-CarterNJ Redevelopment Forum 2020 - Bucci-Carter
NJ Redevelopment Forum 2020 - Bucci-CarterNew Jersey Future
 
NJ Redevelopment Forum 2020 - Kremer
NJ Redevelopment Forum 2020 - KremerNJ Redevelopment Forum 2020 - Kremer
NJ Redevelopment Forum 2020 - KremerNew Jersey Future
 
NJ Redevelopment Forum 2020 - Hunsinger
NJ Redevelopment Forum 2020 - HunsingerNJ Redevelopment Forum 2020 - Hunsinger
NJ Redevelopment Forum 2020 - HunsingerNew Jersey Future
 
NJ Redevelopment Forum 2020 - Dewey
NJ Redevelopment Forum 2020 - DeweyNJ Redevelopment Forum 2020 - Dewey
NJ Redevelopment Forum 2020 - DeweyNew Jersey Future
 
NJ Redevelopment Forum 2020 - Cialone
NJ Redevelopment Forum 2020 - CialoneNJ Redevelopment Forum 2020 - Cialone
NJ Redevelopment Forum 2020 - CialoneNew Jersey Future
 
NJ Redevelopment Forum 2020 - Paruta
NJ Redevelopment Forum 2020 - ParutaNJ Redevelopment Forum 2020 - Paruta
NJ Redevelopment Forum 2020 - ParutaNew Jersey Future
 
NJ Redevelopment Forum 2020 - Mlenak
NJ Redevelopment Forum 2020 - MlenakNJ Redevelopment Forum 2020 - Mlenak
NJ Redevelopment Forum 2020 - MlenakNew Jersey Future
 
NJ Redevelopment Forum 2020 - Miller
NJ Redevelopment Forum 2020 - MillerNJ Redevelopment Forum 2020 - Miller
NJ Redevelopment Forum 2020 - MillerNew Jersey Future
 
NJ Redevelopment Forum 2020 - Moltosky
NJ Redevelopment Forum 2020 - Moltosky NJ Redevelopment Forum 2020 - Moltosky
NJ Redevelopment Forum 2020 - Moltosky New Jersey Future
 

Mehr von New Jersey Future (20)

"We've got to do what now?" Webinar
"We've got to do what now?" Webinar"We've got to do what now?" Webinar
"We've got to do what now?" Webinar
 
NJ Redevelopment Forum 2020 - Morning Plenary - Mallya
NJ Redevelopment Forum 2020 - Morning Plenary - MallyaNJ Redevelopment Forum 2020 - Morning Plenary - Mallya
NJ Redevelopment Forum 2020 - Morning Plenary - Mallya
 
NJ Redevelopment Forum 2020 - Morning Plenary - Hollis
NJ Redevelopment Forum 2020 - Morning Plenary - HollisNJ Redevelopment Forum 2020 - Morning Plenary - Hollis
NJ Redevelopment Forum 2020 - Morning Plenary - Hollis
 
NJ Redevelopment Forum 2020 - Lunch Keynote - Gov. Glendening
NJ Redevelopment Forum 2020 - Lunch Keynote -  Gov. GlendeningNJ Redevelopment Forum 2020 - Lunch Keynote -  Gov. Glendening
NJ Redevelopment Forum 2020 - Lunch Keynote - Gov. Glendening
 
NJ Redevelopment Forum 2020 - Capita
NJ Redevelopment Forum 2020 - CapitaNJ Redevelopment Forum 2020 - Capita
NJ Redevelopment Forum 2020 - Capita
 
NJ Redevelopment Forum 2020 - Moriarity
NJ Redevelopment Forum 2020 - Moriarity NJ Redevelopment Forum 2020 - Moriarity
NJ Redevelopment Forum 2020 - Moriarity
 
NJ Redevelopment Forum 2020 - Salkin
NJ Redevelopment Forum 2020 - SalkinNJ Redevelopment Forum 2020 - Salkin
NJ Redevelopment Forum 2020 - Salkin
 
NJ Redevelopment Forum 2020 - Giannikopoulos
NJ Redevelopment Forum 2020 - Giannikopoulos NJ Redevelopment Forum 2020 - Giannikopoulos
NJ Redevelopment Forum 2020 - Giannikopoulos
 
NJ Redevelopment Forum 2020 - Adams and Dockwiller
NJ Redevelopment Forum 2020 - Adams and DockwillerNJ Redevelopment Forum 2020 - Adams and Dockwiller
NJ Redevelopment Forum 2020 - Adams and Dockwiller
 
NJ Redevelopment Forum 2020 - Mahon
NJ Redevelopment Forum 2020 - MahonNJ Redevelopment Forum 2020 - Mahon
NJ Redevelopment Forum 2020 - Mahon
 
NJ Redevelopment Forum 2020 - Hache
NJ Redevelopment Forum 2020 - HacheNJ Redevelopment Forum 2020 - Hache
NJ Redevelopment Forum 2020 - Hache
 
NJ Redevelopment Forum 2020 - Bucci-Carter
NJ Redevelopment Forum 2020 - Bucci-CarterNJ Redevelopment Forum 2020 - Bucci-Carter
NJ Redevelopment Forum 2020 - Bucci-Carter
 
NJ Redevelopment Forum 2020 - Kremer
NJ Redevelopment Forum 2020 - KremerNJ Redevelopment Forum 2020 - Kremer
NJ Redevelopment Forum 2020 - Kremer
 
NJ Redevelopment Forum 2020 - Hunsinger
NJ Redevelopment Forum 2020 - HunsingerNJ Redevelopment Forum 2020 - Hunsinger
NJ Redevelopment Forum 2020 - Hunsinger
 
NJ Redevelopment Forum 2020 - Dewey
NJ Redevelopment Forum 2020 - DeweyNJ Redevelopment Forum 2020 - Dewey
NJ Redevelopment Forum 2020 - Dewey
 
NJ Redevelopment Forum 2020 - Cialone
NJ Redevelopment Forum 2020 - CialoneNJ Redevelopment Forum 2020 - Cialone
NJ Redevelopment Forum 2020 - Cialone
 
NJ Redevelopment Forum 2020 - Paruta
NJ Redevelopment Forum 2020 - ParutaNJ Redevelopment Forum 2020 - Paruta
NJ Redevelopment Forum 2020 - Paruta
 
NJ Redevelopment Forum 2020 - Mlenak
NJ Redevelopment Forum 2020 - MlenakNJ Redevelopment Forum 2020 - Mlenak
NJ Redevelopment Forum 2020 - Mlenak
 
NJ Redevelopment Forum 2020 - Miller
NJ Redevelopment Forum 2020 - MillerNJ Redevelopment Forum 2020 - Miller
NJ Redevelopment Forum 2020 - Miller
 
NJ Redevelopment Forum 2020 - Moltosky
NJ Redevelopment Forum 2020 - Moltosky NJ Redevelopment Forum 2020 - Moltosky
NJ Redevelopment Forum 2020 - Moltosky
 

Nj future redevelopment forum 2014 financing infrastructure baumann

  • 1. INVESTING IN WATER, SEWER & STORM WATER INFRASTRUCTURE PUBLIC-PRIVATE PARTNERSHIP Joseph P. Baumann, Jr. Chairman McManimon, Scotland & Baumann, LLC jbaumann@msbnj.com
  • 2. City of Bayonne  The City of Bayonne lies in the heart of the Port of New York and New Jersey  Traditional manufacturing, distribution, healthcare and port activities remain important to the city’s economy
  • 3. Bayonne’s Water System  More than 96 miles of mains including valves, fire hydrants etc.  Water supplied from the North Jersey District Water Supply Commission’s Wanaque and Monksville reservoirs  Total system capacity is 17.6 MGD and on average uses 8.5 MGDPVSC Water Pollution Control Facility (Newark) 1 2 3 NJDWSC Aqueduct Reservoir 4 Kearny Pipeline 5 Authority Aqueduct Force Main PVSC Facility 6 1 2 Monksville Reservoir Wanaque Reservoir 3 Belleville 4 Kearny Water Distribution System 5 City of Bayonne 6
  • 4. 1 City of Bayonne 1 2 2 PVSC Water Pollution Control Facility (Newark) Force Main PVSC Facility Bayonne’s Sewer System  Oak Street Pumping Station pumps flows to the Passaic Valley Sewerage Commission by a force main  Total system capacity is 17.6 MGD; average daily dry weather flow 8.3 MGD  Capacity to pump 40MGD during wet weather events caused by combined sewers
  • 5. Municipal Authority Joint Venture (LLC) United Water Capital Projects, as Required Private Equity Partner United Water Consortium of Lenders O&M EQUITY DEBT Concession Concession Agreement Structure
  • 8. Long-term contract provisions provide customers greater reliability and stability ‘Revenue path’ approach limits rate increases, prevents windfall profits and provides flexibility to guarantee ongoing investment Improved system efficiency reduces operating costs Capital investment reduces risk of service disruption and protects the environment Long Term Contract Benefits
  • 9. Bayonne Had Questions… City retains system owner Governance and operational standard setting Rates set by formula Maintains water authority jobs Investment creates new local job opportunities No excess revenues Oversight of funding RESOLUTIONS Who maintains system ownership Vague operational and technical standards Lose control over rates Impact on jobs ‘Windfall’ to concessionaire CONCERNS
  • 10. It Worked!  We unlocked hidden value from the city-owned asset  Upfront payment, eliminated $125M of BMUA debt  Capital investment to modernize water, sewer and storm water system of $107M over 40 years  All BMUA employees have been hired and trained  BMUA determined city saves $35M over duration of the contract Day 1 in Bayonne: United Water greets its new employees
  • 11. Public Sector Take Aways  Set Realistic Goals  Risk Allocation  Rate Increases  Capital Needs  Avoid Trying to Solve Unrelated Problems  Prepare Extensive Due Diligence  Quality Due Diligence Package  Tie Up Loose Ends  Engage Experienced Professional Team  Engineering, Financial and Legal  Engage All Stakeholders Early  Elected Officials, Employees, Users