Marco Island Conference July 18, 2000

PointCounterpoint Water is a public resource — not a commodity Water is free; no one should profit from it Water is a public resource — not a commodity Water is free; no one should profit from it Concede state owns water Question is: How to manage it best Propose long term permits with transferability Concede state owns water Question is: How to manage it best Propose long term permits with transferability

PointCounterpoint Ain’t broke — Don’t fix it With markets based approach who:  Protects environment  Assures water supply life-line  Protects against 3rd party impacts  Determines reasonable beneficial uses  What’s in public interest Ain’t broke — Don’t fix it With markets based approach who:  Protects environment  Assures water supply life-line  Protects against 3rd party impacts  Determines reasonable beneficial uses  What’s in public interest Oppaga Report predicts serious problems for 4 of 5 WMD’s Planning without implementation is inefficient and wasteful Need strong regulatory WMD to:  Protect existing legal users  Protect environment  Guarantee basic potable needs  Manage 3rd party impacts Planning without implementation is inefficient and wasteful Need strong regulatory WMD to:  Protect existing legal users  Protect environment  Guarantee basic potable needs  Manage 3rd party impacts Unsustainable Use of Current Sources New Sources Needed to Meet Projected Growth Current Sources Adequate to Meet Projected Growth Source: Water management districts, Water Supply Assessments and staff interviews NW Coastal Tampa Bay Everglades / S. Florida Water Supply

PointCounterpoint Under your proposal an economic value would be created for consumptive use permits and land owners YesIt would be a good thing resulting in more incentives for conservation WMDs are better at managing and protecting our most precious resource YesProtecting role NoControlling and managing YesProtecting role NoControlling and managing

PointCounterpoint Public sector water community has served nation and Florida very well It has proven it can develop and manage water supply — and do it efficiently Public sector water community has served nation and Florida very well It has proven it can develop and manage water supply — and do it efficiently Historically, no competition — monopoly and system has worked as long as water has been cheap and plentiful Question is future:  EPA estimates $1 trillion needed in water sector in 30 years  Desperate need for capital  Experience show 15-40% savings with private sector involvement Historically, no competition — monopoly and system has worked as long as water has been cheap and plentiful Question is future:  EPA estimates $1 trillion needed in water sector in 30 years  Desperate need for capital  Experience show 15-40% savings with private sector involvement

  Who best provides oversight protection and impact assessment (i.e., environment, water quality, life-line, etc.)     Who best provides efficiency / incentives / innovation and results   Private Model Incentive-Based Private Model Incentive-Based — vs. — Water Management from Public Sector with Strong Regulatory Role Model   Who best owns water   Comes Down to Your View for Role of Government

Public-Private Partnership Which model is best? Take the best of the public and private sector and create a new model called: Which model is best? Take the best of the public and private sector and create a new model called: Private Model Incentive-Based Private Model Incentive-Based — vs. — Water Management from Public Sector with Strong Regulatory Role Model Propose:WMD with strong regulatory, oversight and protection function BUT Outsource / delegate service delivery function and include economic incentives in the regulatory system for more efficient resource allocation

Marco Island Conference