http://www.ohm-advisors.com: Wastewater systems can be publicly or privately owned and operated. Learn the basic differences and the key elements to compare and evaluate systems.

1. Wastewater System Alternatives:
Public vs. Private Systems
(The Basics)
Vicki M. Putala, P.E.
Director of Environmental & Water Resources
Orchard, Hiltz & McCliment, Inc.
www.ohm-advisors.com

2. What makes up a
wastewater system?
Sanitary sewers
Pump stations
Wastewater Treatment Plant (WWTP)
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

3. What is the difference between a
Public and a Private System?
Public wastewater system
Wastewater facilities (treatment and collection) that are
owned, operated and maintained by a public body, usually a
municipal government
Private wastewater system
Wastewater facilities (treatment and collection) that are
owned by the users of the system and are operated and
maintained by a private individual or company
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

4. System Requirements
(Similar for Public and Private)
New facilities require two permits from the Michigan Department of
Environmental Quality (MDEQ) in order to be constructed
Discharge permit either to the ground or to a surface body of water.
Discharge permits must be renewed every 5 years
Construction permit for physical facilities (sanitary sewer, pump station
and WWTP)
Must follow MDEQ minimum standards for sizing and redundancy
Designed to handle a certain amount of flow. Growth can be
accommodated by good planning and modular design
Successfully treat residential (and some commercial) type of wastewater
Require skilled personnel to operate and maintain the facilities
Require a financial plan to fund
Construction
Operation
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

5. Key Elements for Comparing and
Evaluating Systems
Ownership and Construction
Operation and Maintenance
Billing
Size
Type of Wastewater
Liability
Cost
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

6. Public Systems
Ownership and Construction
The facilities are owned by the municipality or
authority
WWTP and collection system can be owned by
separate entities
Materials used for construction are generally
durable and long lasting
A contract is needed between the service provider
and the community, if the community is buying
capacity from a different system
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

7. Public Systems – cont.
Operation and Maintenance
The facilities are operated and maintained by the
municipality or authority
Costs are generally recovered in rates and/or
connection fees
Billing
Billing is performed by the municipality or authority
Bills cover treatment costs and transport costs
No profits/restricted use of funds
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

8. Public Systems – cont.
Size
Service Area
Zoning plan
Land use
Type of Wastewater
Residential
Commercial
Industrial (with pretreatment for very high strength wastewater)
Liabilities
WWTP discharge permit violations
Fines or corrective action required for plants in noncompliance
Potential for sanitary sewer overflows or basement backups
(if extraneous flows are not managed well)
Discharge permit renewal every 5 years
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

9. Public Systems – cont.
Cost
New infrastructure – developer funded spelled out in
development agreement
Connection fees
Lot fees
New infrastructure – municipality funded
General fund – paid back through connection fees
Special Assessment District (SAD)
Purchase capacity (for connection to an existing WWTP)
Transport Cost (if using other existing sanitary sewers)
Depreciation of new infrastructure (replacement costs)
Skilled operators (employees or contract service)
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

10. Private Systems
Ownership and Construction
The facilities are typically owned by an association,
consisting of the users of the system, usually not
educated about wastewater systems
Materials used for private system construction may not be
as durable as typically used for public systems unless the
community has clearly defined standards.
A special assessment district (SAD) often established at
the beginning of the project to provide a funding
mechanism for future system improvements
Development agreement is needed up front that
establishes ownership
MDEQ and property owners usually look to
municipality to solve problems
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

11. Private Systems – cont.
Operation and Maintenance
The facilities are operated and maintained usually by
a private company hired by the homeowners
association/highly dependent upon them
Costs are generally recovered in rates for O&M. This
may require a legal mechanism to be established to
ensure collection of individual bills
Costs for capital expense are often recovered
through SAD bonds
Billing
Billing is performed by the homeowners association
Bills cover treatment costs and transport costs
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

12. Private Systems – cont.
Size
Sanitary sewer service is usually restricted to a particular
development or site plan
Type of Wastewater
Residential
Minimal commercial
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

13. Private Systems – cont.
Liabilities
Homeowners association responsible for permit violations;
however municipalities often get involved to correct the
problem
Fines or corrective action required for plants in
noncompliance
Discharge permit renewal every 5 years
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

14. Private Systems – cont.
Cost
New infrastructure – developer funded spelled
out in development agreement
Connection fees
Lot fees
SAD should be established for future capital
expense
Skilled operators (generally contract service)
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

15. Public and Private Systems:
Key Points Summary
Public systems are the responsible of the municipality or
authority in terms of operation, maintenance and liability
Private systems are the responsibility of the homeowners
association, but communities often get involved when there
is a problem
Public and private system can be developer funded
provided a development agreement is drafted that
stipulates cost sharing
Contracts are needed if a community is utilizing another
communities sanitary sewers for transport or treatment.
Permits are required from the MDEQ for construction and
discharge
Skilled personnel are required to operate and maintain the
facilities
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM

16. Contact
OHM | Architects. Engineers. Planners.
On the web at:
www.ohm-advisors.com
Call: 888-522-6711
Vicki Putala, PE www.ohm-advisors.com
Director of Environmental & Water Resources
OHM