• AWWA SOURCES55570
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AWWA SOURCES55570

  • Innovative Financing Partnership for Reclaimed Water Infrastructure in the City of Henderson
  • Conference Proceeding by American Water Works Association, 01/01/2002
  • Publisher: AWWA

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This paper details the specifics of the reclaimed water-refunding ordinance and describes the major public/private partnership that has been successfully completed for reclaimed water infrastructure financing within the City of Henderson, Nevada. Generally, developers construct infrastructure on an as needed basis and at their expense with no guarantee of oversizing refunding from other developers. The negative aspect of developers building solely for their benefit is that it results in facilities that provide inadequate levels of service to adjacent parcels as well as poorly planned and phased projects within the City's undeveloped areas. In order to ensure adequate levels of service to all reclaimed water customers and incentive for developers to build beyond their required needs, the City created Ordinance No. 1495, which implemented a financial refunding partnership mechanism between the private development community and the city. This ordinance is a backbone infrastructure ordinance that ensures equitable refunding to initial installers of reclaimed water infrastructure and is entitled "Reclaimed Water Rates & Regulations". The ordinance has effectively brought together the private development community known as developers/participants and the City in a public/private partnership for the installation of public backbone infrastructure with fair and equitable refunding mechanisms. The benefits of the reclaimed water ordinance to the City and its customers are multifarious. First, the City ensures a higher level of reclaimed water service as backbone facilities are constructed for ultimate demand capacity. Second, facilities are designed and constructed at ultimate demand needs resulting in long-term and highly efficient facilities. Third, the partnership results in lower overall system operating and maintenance costs. Fourth, service interruptions for additions, upgrades, phased work or rehabilitation of inadequate systems is reduced or eliminated. Through the establishment of the reclaimed water-refunding ordinance, the City of Henderson has partnered with the development community in the construction of three reclaimed water reservoirs, two reclaimed water pump stations and approximately 30,000 linear feet of reclaimed water pipeline that serve six golf courses in the southwest area of Henderson. All of this reclaimed water infrastructure construction was completed while the City maintained a high level of service to all reclaimed customers. With this ordinance, the City has successfully managed the orderly, timely and cost-effective construction of major reclaimed water backbone infrastructure as well as acted as the managing partner to distribute and allocate the costs and refunds subject to the ordinance. Includes 3 references, tables, figures.

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