By Rich Anderson
June 27, 2005

Trenton (NJ) Mayor Douglas H. Palmer and Sugar Land (TX) Mayor David G. Wallace co-chaired the Urban Water Council (UWC) meeting at the 73rd Annual Meeting of the Conference of Mayors in Chicago. A number of topics were discussed, including preliminary results of a National Water Resources Survey, an update on Chicago's Water Agenda, a resolution on service delivery, announcement of the availability of the Mayor's Guide on Public-Private Partnerships, and previews of the Urban Water Summit to be held later this year in Albuquerque.

The UWC conducts surveys every few years to ask the nation's cities (population of 30,000 plus) about their water resources priorities and problems. The latest survey was conducted in early 2005, and generated 414 city responses. Cities were asked to rank their most important water resource issues, and Wallace reported the results as follows: aging infrastructure (61 percent); water system security (55 percent); future water supply (47 percent); unfunded federal regulations (46 percent); and water quality (43 percent).

Aging water infrastructure has been a priority issue for the UWC for some time. Wallace cited the EPA 'Needs Gap' report that points out local governments will need to invest over $534 billion dollars from 2000-2019 in water and wastewater infrastructure to comply with current law. More than 50 percent of cities plan to invest in the next five years: water supply (60 percent); water treatment facilities (50 percent); water distribution systems (77 percent); wastewater treatment facilities (54 percent); and sewer collection systems (69 percent). He stated that it is no surprise that the sub-surface infrastructure (water distribution and sewer collection systems) is relatively old and will experience the greatest investment attention in the next five years.

Cities planning these investments are also planning to primarily utilize increased user charges, capital reserves, general funds and revenue bonds. Only a third of the cities planning investments intend to rely on State Revolving Loan Funds (SRFs) established under the Clean Water Act and the Safe Drinking Water Act; and only half of those cities will rely on the SRF for 50 percent or more of the total investment amount. Wallace noted that only 2 percent of cities plan to tap private activity bonds to help finance projects. He stated that this is ironic since private sector capital is plentiful, and would probably be used more often if not for the volume caps imposed by states due to restrictions in the federal tax code. He said that H.R. 1708, filed by Representative Clay Shaw (FL) would lift those state volume caps and allow cities access to low-cost financing to move ahead with modernizing the aging water infrastructure. Wallace indicated that the survey report is expected to be published and available on the Conference of Mayors website this summer.

Joe Deal and Cathy Hudzik, Special Assistants to Chicago Mayor Richard M. Daley, provided information concerning Chicago's regional Water Agenda. Deal stated that the agenda focuses on four components: conservation; water quality; stormwater management; and public education. He said that Chicago is "Leading by example," and to that end, the mayor has ordered water conservation audits of the top 25 municipal facilities that are responsible for consuming over 250 million gallons of water annually. Also, Chicago is developing a metering modernization plan.

Deal stated that stormwater management efforts continue to grow. The city subsidizes the purchase of stormwater barrels that are holed up to individual residences to capture rain water that would normally enter the sewer system. Over 500 barrels have been installed to date. Deal said that all new major land development must conform to conservation measures. For example, McCormack Place, a 67-acre development project, has been designated as the "ultimate disconnected downspout." Over 55 million gallons per year of runoff will be diverted to an extensive pipe system, and it will help the City avoid wet weather overflows that impact water quality.

Hudzik discussed the mayor's new Chicago River Agenda. The city's vision is to duplicate successes along the lake waterfront on the banks of the Chicago River. This is referred to as "Chicago's Second Shoreline." The agenda promotes river protection via four integrated efforts: improve water quality; protect nature and wildlife; balance river uses; and enhance community life by making the riverfront accessible for public recreational uses. Hudzik pointed to gains in the number of fish species in the river, riverbank restoration and increased wildlife habitat, reductions in garbage and debris, and increased multiple human recreation uses.

Palmer introduced a resolution that urges mayors to encourage state legislatures to remove barriers impeding the use of alternative project and service delivery methods related to water and wastewater infrastructure. The resolution was sponsored by Palmer and Wallace as well as Port St. Lucie (FL) Mayor Bob Minsky and Wauwatosa (WI) Mayor Theresa Estness. The resolution would help local government enter into cost saving public-private partnerships. The resolution was discussed and voted favorably upon by mayors attending the meeting. The resolution was subsequently adopted by the Environment Committee, and later by the Conference of Mayors.

UWC announced the availability of a new report that is intended to aid mayors establish water and wastewater partnerships that provide public benefits. Patrick Cairo, Vice President of United Water, provided comments on the guide. He stated that the guide was developed at the request of the Conference of Mayors based on a resolution adopted in 2004. It was the product of a collaborative effort that involved city attorneys with experience in public-private partnerships, consulting attorneys who represent cities in partnership negotiations, engineering consultants representing cities, representatives from private water companies, staff of The Conference of Mayors, and a number of external reviewers. The guide will be posted on the Conference of Mayors Urban Water Council website in late June.

Palmer announced that the UWC would hold its annual Summit in Albuquerque, hosted by Mayor Martin Chavez, from September 29 to October 1. Palmer stated that the first Municipal Water Conservation Achievement Awards will be announced at the Summit. Mayors interested in applying for the Award Program should consult the UWC website in mid-July for directions.