Public/Private Partnerships

Municipalities, large and small, throughout the United States are faced with the same problem—how to continue to provide quality municipal services to their citizens while holding the line on operating costs and meeting ever changing government regulations. This challenge becomes an even harder as funding sources from the state and federal governments dwindle. Many communities have turned to the private sector through public/private partnerships for the answer.

The US Conference of Mayors formed the Urban Water Institute specifically to help Mayors and their Cities understand and use the private sector. The Institute helps Cities form partnerships with the private sector to help the municipalities solve their water and wastewater financial problems.

Public/private partnerships in the area of municipal water and wastewater have taken three most notable formats: Privatization; Contract Operation, Maintenance, and Management; and Contract Management. Although similar in the service provided to rate payers, these three partnership programs have several important differences.

Privatization
Privatization is an important financial opportunity for public/private partnerships. Privatization can be in four forms: purchase of an existing facility; creation of a new facility, from planning to design through construction and long term operation; expansion to or enhancement of an existing facility; and the long term lease of a treatment works.

Contract Operations, Maintenance, and Management
Contract operations, maintenance, and management services are done by a contractor under a negotiated agreement to provide necessary municipal services. The contractor takes full responsibility for the routine operation, maintenance, and management of the treatment facilities, while the ownership remains with the municipality. Operating under a fixed budget, the contractor guarantees performance of the facilities, while providing compliance with all regulations. The contractor is responsible for all routine costs associated with the operations of the facilities. Major capital expenditures for expansion and upgrade of the facilities remains the responsibility of the municipality.

Contract Management
In a Contract Management partnership, the ownership of the facilities, the responsibility for purchasing all necessary supplies and equipment, and the responsibility for regulatory compliance remain with the community. The private sector partner assumes all personnel and management responsibility. This form of partnership has been very effective for specific departments, laboratory, solids handling, and engineering, within a large municipal organization. The contractor uses a fixed budget approach while guaranteeing the quality of the work products delivered to the community. Contracting private services is an important consideration for any community and should be given careful consideration.

Aquarion Services Company
Aquarion Services Company offers public-private partnerships for contract operations, maintenance, administration, and management of municipal and industrial water and wastewater treatment facilities and related infrastructure. We offer a wide range of comprehensive services that include distribution and collection systems maintenance.