As water professionals, we know how difficult it is to explain complicated issues to elected officials and the general public.

Take, for example, one of the more high-profile problems we as water professionals have to deal with every day: water main breaks. According to the U.S. Environmental Protection Agency, there are more than 240,000 water main failures each year and it has projected a $384 billion gap in funding that will be needed to maintain water infrastructure into 2020.

Another issue is the 7 billion gallons of treated water that never reaches the tap due to leaks. Those leaks cost approximately $2.6 billion in losses that could be avoided. But when you talk to the decision makers who set your budget and agenda, they want solutions.

There is a way to meet the needs of your community and offset some of the costs. Consider public-private partnerships and how they can help upgrade your infrastructure as you manage your challenging capital budgets.

Across our nation more than 2,000 communities have benefited from water-related public-private partnerships. These partnerships concentrate on sharing expertise, assets, risks and resources — including access to funding for capital-intensive improvements, modifications and maintenance of water systems.

Limited municipal budgets mean only a fraction of the investment needed for proper maintenance and replacement of our aging water infrastructure is invested at any one time. Public-private partnerships can reduce municipal costs, shift debt burdens and spread the risks. Private water contractors and municipalities can share the financial requirements for a time while ownership remains with the public sector and decreases costs for the community.

Two recent examples of these partnerships benefiting communities are in Bayonne, N.J., and Rialto, Calif.

The Bayonne Municipal Utilities Authority (BMUA) signed a 40-year concession agreement with United Water (and investment firm KKR) for its water and wastewater systems. In this concession agreement the BMUA retains ownership of assets and responsibility for setting rates while the private entity operates the system, invests $107 million and retires $130 million of debt for the community.

The City of Rialto signed a 30-year concession agreement with Rialto Water Services LLC, in which the city retains asset ownership while the private entity oversees a $41 million investment in capital improvements and provides operation and maintenance of the water facility.

As you can see, these communities saw a positive gain with updated infrastructure and, in Bayonne, significant debt relief. They aren’t the only ones either. According to an Oct. 13, 2014, Standard & Poor’s Capital IQ report, “... the number of infrastructure P3s in the U.S. increased in 2013” and “in the U.S., interest in the P3 approach is growing and several states are developing programs.”

Have the conversation with your elected officials, city manager, community leaders and opinion leaders. Talk to them about how these partnerships might help your water system operate efficiently while reducing the community burden and updating and improving your infrastructure.

Through public-private partnerships, you can make an even greater difference in your community. F

About The Author

Michael Deane is the executive director of the National Association of Water Companies (NAWC), located in Washington, D.C.