Welcome Developers

Developer Services SummitNovember 2010

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Agenda

Time Topic Presenter

8:30 a.m. Registration and Refreshments

9:00 a.m. Welcome and Opening Remarks Elliott D. Schwartz

9:15 a.m. Introduction to Developer Services Ruth Gavel, Scott Segal,

Brad Cole

9:45 a.m. Water Supply / Capacity Vincent Monaco

10:30 a.m. 15 Minute Break

10:45 a.m. GIS/CAD Drawing Requirements Donna Short

11:00 a.m. Fire Flow Calculations Joseph P. Dugandzic

11:30 a.m. Q and A

12:00 a.m. Adjourn

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Why we’re here today

Foster relationships

Learn from each other

Recommend improvements

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American Water

Map as of 5/10/2010

• Founded in 1886• Largest investor-

owned U.S. water and wastewater utility company

• Serves 16 million people

• Operations in 35 states, as well as Ontario and Manitoba, Canada.

• Employs more than 7,000 dedicated professionals

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New Jersey American Water

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Infrastructure

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Developer Services – Who we areOur team is dedicated to serving the development community

Department Manager Elliott D. Schwartz (908) 431-

3212

Project Managers Bradley Cole – Monmouth/Ocean Counties (856) 309-4762 Ruth Gavel – Atlantic/Cape May Counties (856) 309-4765 Scott Segal – Burlington/Gloucester/Camden/Salem (856) 309-

4766 Joseph Davignon – Northern New Jersey (908) 431-3223

Support Staff Carla Oliveira (908)-431-3221 Amita Samanta (856) 824-2566 Gwen Green (856)-824-2577

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Introduction to Developer Services

Who are we?

What do we do?

What can we do for you?

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Developer Services – Who are we?

We manage the water and wastewater infrastructure improvements necessary to fulfill the needs of the development community.

We strive to provide safe, adequate and proper service through an organized and structured program.

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Developer Services – What do we do?

Provide a common, consistent, single point of contact

Manage the project and the relationship with the developer

Coordinate with other company functional partners Asset Planning Field Operations/Construction Management

What can we do for you?

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Developer Services – Available on the Web atwww.amwater.com/njaw/developers

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Developer Services Landing Page

New Jersey American Water Developer Services Contacts

An Overview of the Developer Services Process

Developer Services Downloadable Customer Resources

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American Water has professionals located across the state who are available to address questions related to current or future projects. View the list below to identify a professional in your area.

You may also submit general inquiries to njaw.developerservices@amwater.com

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Developers and other interested parties can download or link to the following information to help with planning or implementing a project.

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Customer Resources (cont.)

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Steps/Timeline of a Project 1.0 Submit application to New Jersey American Water

(Pre-Application meeting may have been conducted) 2.0 Technical Review (8 weeks)

Hydraulic analysis: 3 weeks Capacity analysis: 3 weeks (typically concurrent with hydraulic analysis) Cost estimating: 4 weeks after hydraulic analysis Agreement preparation: 1 week after estimate

3.0 Agreement: Varies based on developer response 4.0 Bid and Construction (8 weeks)

Bidding: 5-6 weeks Permits: 5-6 weeks (typically concurrent with bidding process) Material procurement: 3-4 weeks after all approvals, permits, deposits,

applications, easements. Specialty items / large-size materials may take longer.

Construction: Depends on size of project 5.0 Close-out: 120 days after the final costs are available 6.0 Refund: As specified in the agreement

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1.0 Application

Standard Main Extension Application Form

Fire Flow Calculation Worksheet

Project Utility Plans & CAD Disk

Application Fee

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Application Fee (Non-Refundable)

Basic Application Fee

Water or Sewer Main Extension to One (1) Single Family Home (Owner Occupied)

$250.00

Main Extension to all Other Residential, Commercial or Other Property (Independent of the number of services)

$2,500.00

Additional Application Fees

An NJDEP SDW Permit Review (including Master Permit) or TWA Permit Review is needed:

Add $2,500.00

The Project includes both a Water and Sewer Main Extension:

Add $1,000.00

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2.0 Technical Review

Capacity & Hydraulic Review

Domestic Flows

Fire Flows

Constructability Review and Estimate

NJDEP Permit Requirement Review

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3.0 Agreement

Standard Main Extension Agreement Easement Indenture Additional Applications

Domestic Services, Fire Service and Private Hydrant Applications along with the associated addresses

Funding Hydrant Authorization SDW Permit Application (NJDEP)

Agreements must be executed within 1 year. The developer should contact their Project Manager for an extension to the

agreement. The Project Manager will determine if an updated agreement, new application and/or new application deposit is required.

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4.0 Bid and Construction

Procurement of Contractors Permits

Road Other

Requirements to begin Construction Remaining deposit based on

bid costs Permits Site ready Easement staked

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Contractual Relationship

New Jersey American Water

Suppliers

ContractorDeveloper

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Contractor Selection and Construction

The contractor selection is the water company’s and not the developer’s

The lowest responsive bidder will construct the project

This bidder may or may not be the developer’s “requested contractor”

New Jersey American Water will:

manage the contractor during the construction process

inspect, pressure test and chlorinate the mains

complete the needed as-builts

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5.0 Close-Out

120 days after the final costs are available

Final Project Costs and Reconciliation

Reimbursements / Balance Due

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6.0 Revenue Refunds

Refunds made for each new bona fide customer taking service directly from the main extension

Refunds obligation will expire 10 years after the effective date of the Main Extension Agreement

Maximum refund is the total cost of the project

New Jersey American Water will make a one time refund payment for each new bona fide customer

Refund payment for residential customers with a 1” service will be the Estimated Annual Revenues times the Refund Multiplier

Example Area 1: Estimated Annual Revenue - Based upon most recent rate case. $591.00 x 10 = $5,910.00 refund per 1” connection

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6.0 Revenue Refunds (Cont.) Non-Residential Estimated Annual Revenues (Includes

services greater that 1” in diameter)- Based upon actual annual water revenue for months 13 through 24

Months 13 through 24 is used for various reasons

Estimated annual revenue for water services greater than 1” are not provided in the Tariff

Typically, multi-tenant buildings are not fully occupied within the first year of service

Commercial facilities tend to be less consistent in usage patterns

Often, site construction is continuing for a number of months after service has been installed

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6.0 Revenue Refunds (Cont.)

Note:

Main Extension Agreements are currently being offered with the understanding that the current court ruling associated with Superior Court of NJ Appellate Division-Docket # A-2207-07T3 may have an impact on (1) whether or not refunds can be offered by New Jersey American Water in the future and (2) the actual calculation for determining such refunds. While we await final guidance from the BPU regarding refunds, New Jersey American Water will calculate refunds under the current guidelines and treat all projects under agreement as “smart growth” or refund eligible.

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Next Up: Water Supply By Vincent Monaco

Questions?