Storm Water Utility: Creation Update AWWU Presentation to the Assembly Enterprise and Utility Oversight Committee July 18, 2019
Stormwater Utility (SWU) Basics • A SWU is a legal entity that can provides services such as: • management & administration • finance and billing • planning and engineering • regulatory and permitting • maintenance • capital improvements
SWU Purpose Summary of Advantages of an SWU from January 2019 MOA Stormwater Utility Findings Report and Recommendations • Provides a mechanism for cohesive drainage management and coordination and eliminates the shifting of drainage problems from one location to another; • Provides for a dedicated revenue source for stormwater management, maintenance, and capital improvements; • Provides an equitable distribution of the stormwater costs among stormwater system users and contributors; and • Provides a way to incentivize good stormwater management practices, such as utilizing Green Infrastructure and onsite storm water management techniques.
Stormwater Infrastructure is out of site and out of mind…………until it fails………….
……….then the repairs are expensive, inconvenient, but necessary for safety and public health
AWWU’s Role • AWWU has been tasked with initiating and integrating a SWU into AWWU’s existing utility structure • Accomplishes multiple Goals: • Cost efficiencies through economies of scale by utilizing existing AWWU structures such as billing, customer service, engineering, and finance • Eliminates the need for a stand-alone Utility; reduces stand up time and minimizes government footprint • Utilizes existing Utility expertise such as management, finance and equitable cost causer-cost payer relationship
Next Steps • AWWU is moving forward with Phase 2, Utility Formation, as recommended in the January 2019 MOA Stormwater Utility Findings Report and Recommendations • AWWU is soliciting through a Request For Proposal (RFP) to procure professional services to assist in applying for a RCA required CPCN • RCA – Regulatory Commission of Alaska • CPCN – Certificate of Public Convenience and Necessity
CPCN General Requirements Required of all Utilities by State of Alaska Regulatory Commission: • Key Management • Benefit to Public • Service Area • Utility Practices and Procedures
CPCN: Specific Financial Requirements • Schedule of Operating Revenues • Schedule of Operating Expenses • Plant-in-Service and Depreciation Schedule • Computation of Utility’s weighted cost of capital • Computation of Utility's rate base and return • Revenue Requirement and calculation of proposed rates
Milestone Schedule • Create Utility through Municipal Code (initial set-up) • RFP: Advertised May 2019, Award August 2019 • CPCN Application Submission: March 2020 • RCA Review and approval (6 to 9 months): January 2021 • Public Involvement Campaign (on-going)
Assembly Ordinances
Assembly Ordinances
Questions? Mark Corsentino, P.E. General Manager Anchorage Water & Wastewater Utility Direct: 907-786-5511 Mark.Corsentino@awwu.biz
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