Addressing Infrastructure Investment Disparity: Challenges and Solutions
The disparities in infrastructure investment pose significant challenges, with the nation facing an aging infrastructure that requires substantial funding for maintenance and upgrades. Despite the positive economic impacts of infrastructure investments, many communities struggle to access the necessary capital due to various obstacles. The belief in providing safe water and sewer services to all Americans drives the need for fair access to capital for infrastructure improvements. Action is imperative to prevent further decline in small communities.
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Infrastructure Investment Disparity November 2020 Company Confidential, not to be reproduced or transmitted without prior express permission
The Universal Problem- Aging Infrastructure 2 Company Confidential, not to be reproduced or transmitted without prior express permission Maintaining, operating, replacing and upgrading the nation s water infrastructure could cost $2.8 trillion to $4.8 trillion through 2028, according to the U.S. Conference of Mayors. Replacing and expanding water pipes alone could cost $1 trillion through 2035, according to the American Water Works Association. The American Society of Civil Engineers (ASCE) gives the U.S. water infrastructure a D grade. https://www.facilitiesnet.com/maintenanceoperations/article/Payi ng-the-Price-for-Deferred-Maintenance--17407 Company Confidential, not to be reproduced or transmitted without prior express permission
Infrastructure Investment Is Positive on Multiple Fronts 3 Company Confidential, not to be reproduced or transmitted without prior express permission In 2015, the nonpartisan Congressional Budget Office estimated that every dollar spent on infrastructure brought an economic benefit of up to $2.20. Company Confidential, not to be reproduced or transmitted without prior express permission
So Why Cant Communities Access Capital 4 Company Confidential, not to be reproduced or transmitted without prior express permission Often owners/operators have had challenges- mismanagement, underfunded, shrinking qualified labor pool Erosion of customer base or stagnant growth Stuck in the debt cycle Limited State and Federal Grants Federal and State Loan Processes are complicated and take extended periods of time often up to 4 years and often require payment reserves. Infrastructure Investors typically like large deals because of costs and upside potential as well as commissions and fees Company Confidential, not to be reproduced or transmitted without prior express permission
What We Believe 5 Company Confidential, not to be reproduced or transmitted without prior express permission Every American no matter where they live deserves the right to safe clean drinking water and reliable sewer services The Utility Model- Pay for What You Use has worked very well Cost of capital for improvements should be fair Small communities and operators should have the same access to capital as larger ones. If we do not take action small communities will continue to shrink Company Confidential, not to be reproduced or transmitted without prior express permission
MUSA- Master Utility Service Agreement 6 Company Confidential, not to be reproduced or transmitted without prior express permission 10 Pages Zero Capital Required Usage-based Billing aligned with revenue sources Protects Bond/Credit Ratings, Not Debt, and No Rating Required 30 Days Termination- No Fees, no penalties, anytime purchase option No mark up on products or services Maintenance And Replacement Reserves No payments due on non- functioning items Super Fast 1 - 4 months Company Confidential, not to be reproduced or transmitted without prior express permission
Non-Capitalized Infrastructure Service Provider 7 Company Confidential, not to be reproduced or transmitted without prior express permission We invest in infrastructure with a mandate to deliver reliable, safe and efficient devices in a manner that protects tax-payers and the institutions that serve them. Our clients are Municipalities, Universities, Schools, Hospitals, Water/Rail/Power Districts, and Ports. We partner with these important institutions to replace unreliable, unsafe and costly infrastructure with modern solutions, robustly engineered with embedded long-term support. We pay for 100% of design, materials, installation, maintenance and upgrades. Company Confidential, not to be reproduced or transmitted without prior express permission
SP Projects & Solutions 8 Company Confidential, not to be reproduced or transmitted without prior express permission Run-to-fail & deferred maintenance solved WasteSystems Facility & Exterior Lighting Customers: Boilers, Chillers, Cooling Towers, Air Handlers Controls, Sensors. Switches & Monitoring Airports, Ports, Train Stations Correctional Facilities Distribution Centers Federal Agencies Large HOA s Hospitals Hotels & Resorts Large Multi-Family Complexes Municipalities Non-Profits Parks & Libraries Parking Garages, Street Lights Police & Fire Stations Rail Schools & Universities State Agencies Utilities Wastewater & Water Treatment Micro Grids HVAC; Building Envelope; Energy Efficiency Rolling Stock (cars, buses) Water Distribution, Storage & Treatment Electrical Distribution, Storage, Optimization & Generation Inter-modals and Switching Stations Central Station to Operator Communication Systems Plumbing Controls, Conditioners, Pumps, Manifolds, Fixtures Water Systems IrrigationSystems Controllers, Pipes, Pumps, Valves, Emitters Distribution Monitoring Waste Treatment Water Purification Desalinization Roofs, Windows, Elevators, Escalators, People Movers 8 Company Confidential, not to be reproduced or transmitted without prior express permission
Case Study- Simmesport, LA 9 Company Confidential, not to be reproduced or transmitted without prior express permission Simmesport, LA Mayor Leslie Draper Population est. 2100 Municipal Utility- Water & Sewer 675 residential customers 29 business customers Company Confidential, not to be reproduced or transmitted without prior express permission
Step 1- Fix The Cash Register 10 Company Confidential, not to be reproduced or transmitted without prior express permission Products, Materials and Installation For 726 Meters Residential Meter Monthly Rate ~ $3.05 Per Meter The highest on record amount of customers paid = trust Labor Resources Re-Directed Instant ROI- 46.7% Revenue Increase Accurate Meters- changed from mechanical to ultrasonic Company Confidential, not to be reproduced or transmitted without prior express permission
Step 2- Continue The Good Work 11 Company Confidential, not to be reproduced or transmitted without prior express permission Current step is ~ $3.75m in waste water system upgrades to a treatment plant commissioned in 1987. Capital Recovery Service agreement wiped out $650,000 in Long Term Debt and Payables. Enabling the city to escape the Run To Fail Model End Result- Instant and dramatic improvement in the Balance Sheet, monthly use fees match revenue source, and newly found trust from their customers Winner of the Community Achievement Award from the Louisiana Municipal Association for this effort. Company Confidential, not to be reproduced or transmitted without prior express permission
12 Company Confidential, not to be reproduced or transmitted without prior express permission Jason Hewitt Sustainability Partners LLC jhewitt@s.partners 480-845-0400 Office 225-281-2965 Mobile www.sustainability.partners Company Confidential, not to be reproduced or transmitted without prior express permission
