June 19 - Public Works
Essential Components of Private Operating Contract for Public Water & Wastewater Utilities
Municipalities are increasingly turning to private operation of various public water and wastewater utilities. For many other municipalities that have had these con-ops arrangements in place, renewal terms and options are quickly approaching. The cornerstone of these public private partnership arrangements is the operating agreement that exists between the vendor and the public owner. This program will explore the essential components of those operating agreements from a public owner’s standpoint. Program participants will be introduced to both the form and function of the main contractual components for these agreements, including pricing, risk assignment, performance standards, responsibility and cost for environmental and regulatory compliance; full and partial risk asset management; insurance and security, dispute resolution and capital and program expansion. Utilizing draft language and “lessons learned” case studies, participants will understand the how and the why of various cost and risk assignment provisions, and how to protect the public owner while ensuring a scalable business arrangement for private operators.
1. Participants will understand the checklist of “essential components” necessary for any type of operating agreement for a public utility.
2. Participants will understand how to tie performance standards to risk assignment in operating agreements for regulated utilities.
3. Participants will understand various types of enhanced surety including performance bonds, letters of credit and guaranty agreements necessary to guard against contractor insolvency or intransigence.
4. Participants will learn how to structure certain operating agreements for system growth or enhancement, based on increased usage or heightened regulatory requirements.
Speakers: Steven "Tip" Torres & Jillian Jagling
Click here to view the speakers' bios.