This Paragraph was inserted into “Dear Mayor” letters of municipalities having completed
a public-private partnering arrangement or are in the process of finalizing one

If your community enters into a privatization arrangement with a private entity, the Agency must evaluate the privatization agreement’s effect on your original EPA grant conditions and whether any repayment of grant funds is required under E.O. 12803. As a first step in this process, please provide this office with an executive summary of this privatization agreement and a complete set of the implementing agreements with supporting documents. The executive summary should include all salient facts of the privatization agreement such as a general description of the privatization agreement, the permit arrangements, operational guarantees, public participation, changes in the debt structure for the wastewater facilities, the amount and intended use of funds received from the private entity, the EPA construction grant project costs contributed by the city, State and Federal authorities, deprecations calculations for the Federal grant funds using the Internal Revenue Services Modified Accelerated Cost Recovery System depreciation schedules based on the dates the grant contracts were placed in services, the city’s oversight responsibilities, employee status under the privatization agreement, authority for establishing future user rates, and the impact of the privatization agreement on user fees with supporting data. After the Agency has reviewed this material, we will be in a position to define any additional informational requirements that may be needed to complete the Agency’s evaluation of your privatization agreement.

Full Text of “Dear Mayor” Letter

Back to Policy HomepageBack