Public-Private Partnership Yields Immediate $1/2 Million
in Savings

A public-private partnership to manage the water and wastewater treatment services of the Borough of Boyertown, Pennsylvania resulted in an immediate savings of $500,000 in capital improvements that were under consideration – and an additional annual operational savings of $60,000 by eliminating unnecessary filters.

Boyertown is located about 50 miles northwest of Philadelphia. Its wastewater system serves only the residents of Boyertown and includes 20 miles of collection lines, one lift (pump) station and a 0.75-MGD treatment plant. The water system serves Borough residents as well as a few thousand customers in surrounding vicinities. The system includes a 1.9-MGD surface water treatment plant, two raw water reservoirs totaling 400 MG with more than 700 acres of watershed, two 1-MG storage tanks, one 0.1 MG standpipe, one booster station and 25 miles of water distribution lines. The combined facilities serve nearly 7,500 residents.

In 1994, the Borough was faced with the dilemma of replacing the only wastewater treatment plant manager to work for the Borough following his retirement. In addition, the surface water treatment plant manager also would be retiring. Replacing two long-time, experienced employees would be a challenge, particularly considering the technological advances in water and wastewater treatment and increasingly stringent environmental regulations. The Borough manager decided to investigate alternatives to traditional public works management, eventually deciding to partner with a private contractor. Following a competitive bidding process, the Borough selected Severn Trent Services for operations and maintenance of the facilities. Severn Trent would also provide water and sewer line repair and maintenance, watershed protection, capital projects management and customer service for the Borough.

One of the Severn Trent team’s first acts was to implement changes to chemical feed, solids management and process control programs to improve wastewater treatment and reduce costs. They spent significant time in the first year bringing the facility into compliance and operating efficiently. More importantly, they determined the Borough’s preliminary plans for additional tankage and filters were unnecessary.

Prior to the partnership, the Borough was considering capital improvements estimated at nearly $500,000. Subsequently, the Severn Trent team recommended removing trickling filters and multimedia filters from service because the system was achieving regulatory compliance without them. In fact, the Borough has saved $60,000 annually by eliminating the filters, while improving discharge quality at the same time. Treatment for the Borough’s drinking water also was optimized by changes in chemical treatment, automation and employee development and training.

The results of the partnership have gone beyond cost savings. For the calendar year 1997, the water treatment plant received a commendation from the Department of Environmental Protection for meeting all maximum contaminant level, monitoring and treatment technique performance requirements. In 2002, the wastewater facility was awarded the Eastern Pennsylvania Water Pollution Control Operators Association Plant Safety Award. In 2003, the facility earned the Pennsylvania Water Environment Association’s Facility Safety Award. In late October of 2006, the First Deputy Mayor and General Director of Water Supply for the Rostov-on-Don region of Russia toured the Boyertown facilities during a trip to the United States to learn more about public-private partnerships.

According to Marc DesAutels, area manager for Severn Trent Services and the supervisor of the Boyertown facilities, public-private partnerships are increasing in number because “they work.”

“The results are undeniable,” DesAutels said. “Unlike privatized systems where assets are sold or transferred to the private sector, the public partner remains in charge in a public-private partnership. Assets are owned by the municipality, the management of the assets is controlled by the municipality and, more importantly, user rates are established by the municipality.”

Municipalities in the United States first began outsourcing the operation of publicly-owned wastewater facilities to private companies more than 30 years ago. Today, more than 2,800 public-private partnerships exist in the United States according to the Water Partnership Council.

For small- to mid-sized municipalities like Boyertown, a public-private partnership may be the answer. With tightening budgets, increasing environmental standards and aging infrastructure, many municipalities can’t match the resources a private partner can provide.