vvEPA
oiaies
Environmental Protection
Agency
Office of Municipal
Pollution Control
Planning and Analysis Division
January 1987
Protecting Our Investment
Contract Operation and
Maintenance
The Answer for Your Town?
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CONTRACT
OPERATIONS:
THE ISSUES
OPERATIONS AND
MAINTENANCE: ARE YOU
PROTECTING YOUR
INVESTMENT?
Many people worked long and hard to
plan, fund, design and build the facili-
ties that treat your town's wastewater.
How well is this system working today''
Is your treatment plant:
• Meeting permit limits?
• Economically and efficiently
operated9
• Conscientiously maintained?
• Properly and capably staffed?
In short, are these facilities being
operated and maintained in a manner
that protects the considerable
investment taxpayers have made in
environmental quality9
Over the years, the U.S. Environmental
Protection Agency (EPA) has provided
billions in federal construction grants.
State and local taxpayers also
contributed a sizable share of the
construction costs. Even more
important to local taxpayers are the
day-to-day costs of operating and
maintaining the wastewater facilities
built with these funds. Yet, in many
communities across the country, our
investment in water quality is being
squandered due to inadequate
operations and maintenance. Because
operations and maintenance (O&M) are
not being taken seriously enough, a
host of interrelated problems has
resulted: poor performance, staff
turnover, violation of permits, public
health problems, plant deterioration,
costly operation, excessive equipment
replacement rates and costs, and high
user charges. In some localities, such
problems have become severe.
The truth is that most people don't
really want to think about wastewater or
sewage treatment plants. And that's
part of the problem. Isn't a department
whose work gets limited attention and
respect, even though that work is vital
and often unpleasant, a department
where morale and performance are
likely to be low9
Of course, your plant may be
exceptionally well run by a
conscientious manager with excellent
strategies for cost control and a firm
dedication to quality O&M. Plants with
this sort of supervision are star
performers. Those that are not. could
benefit from a closer look. How is your
plant doing9 Do you know9
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IMPROVING OPERATION
AND MAINTENANCE
If the concept of improving O&M at
your town's wastewater plant intrigues
you, you have two basic choices on
how to proceed. Your municipality can
undertake the challenge on its own. Or,
you may want to acquire expert help
from a contract operations firm. These
companies contract with municipalities
to manage and run their treatment
plants. They offer to take the
headaches of wastewater O&M off the
municipality's shoulders, run the plant
professionally and economically, and
sometimes even save the town money.
EPA has surveyed the services offered
by these contract operations firms and
investigated some of their projects.
This brochure summarizes the findings
of that study. The information is
designed to help you evaluate your
unique situation and decide whether
you should engage an O&M expert.
While it may not be right for every city
or town, contract operations may be the
answer for you.
ALL ABOUT
CONTRACT O&M
As part of EPA's study, staff at several
contract operations firms were inter-
viewed. Here is a synthesis of their
answers to typical questions about
their wastewater management,
operations, and maintenance
approaches:
What is Contract Operations?
When referring to contract O&M in this
brochure we mean arranging with an
outside organization (usually a private
for profit firm) to perform all operation
and maintenance functions at your
wastewater treatment plant. Sometimes
this is also referred to as full contract
O&M (FCO). With this arrangement the
municipality still owns the plant and
equipment—so this is not privatization.
However, the plant staff become
employees of the contract firm and the
firm generally assumes responsibility
for all plant functions—therefore
contract O&M is more than contract
management. You should recognize
that a range of other contract services
is available—lab work, training,
maintenance management, start-up
and troubleshooting. You need to
carefully decide which level of service
is appropriate for your situation. This
brochure will discuss only the full
contract O&M level of service.
HOW CONTRACT O&M
WAS EVALUATED
EPA evaluated contract O&M by talking
to the firms and their references: the
city officials and plant staff at several
treatment plants (POTWs) where O&M
is contracted. Four national contract
O&M firms and one regional firm were
included in the study. Interviews were
held with each firm, and a list of plants
under contract with three of the firms
was compiled. From this list, eight
plants were selected for detailed study.
These plants were chosen to reflect a
variety of locations, design and
operating flows, treatment type and
level of treatment. Plants were also
selected where sufficient information
was available to compare treatment
cost and performance both before and
after contracting. From this group a
number of plants were selected for on-
site evaluation. An extensive interview
guide was compiled and used as the
basis for discussions with plant
managers and city officials at each
location.
We asked questions such as:
• What were O&M costs before and
after contracting?
• What was the effluent quality before
and after contracting?
• Were there changes in staffing?
• What changes did the contract firm
make in management, operations,
and maintenance?
« How was the need for a contractor
determined?"
• How were responsibilities split
between the city and the contract
firm?
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Who Will These Firms Serve?
The large contract operations firms
look nationwide for their clients,
evaluating business opportunities
against plant size and location. They
will tackle any process type or
treatment level. They look for plants
from 1 (but usually 2) million gallons
per day, on up. (Most plants range
between 2 and 10 to 15 mgd.)To extend
service to smaller plants a contract firm
may look for towns where services can
be shared among several small,
neighboring plants.
Contract operations firms are generally
reluctant, however, to take on problem-
ridden plants in situations where the
community is not willing to pay a
realistic sum to turn the plant around.
Strife over the wastewater budget is
only one of several difficult political
situations in which these firms prefer
not to get involved. Dissension on the
municipal council over whether or not
to choose the contract operations
option, labor disputes involving plant
staff, a willingness to accept routine
noncompliance levels in an attempt to
keep or attract industry, are examples
of circumstances where a contractor
may choose to stay away.
Who Are These Specialists?
A handful of large firms exists—all
highly experienced. At least one is
operating in your area of the country.
These specialists provide a wide range
of expertise in plant management,
process engineering, design
engineering, automated systems,
procurement, training, and budgeting.
On the other end of the spectrum are
small, local firms with varying levels of
experience and sophistication. Many
are now moving into the business.
Such local providers may offer the
advantage of being intimately familiar
with your plant's design and equipment
or may understand your municipality's
unique political climate very well.
What's the Deal?
Naturally, contract operations firms are
in business to make money, but they
can also offer distinctly attractive
benefits to potential clients. They:
• Promise to improve performance and
increase efficiency.
• Put great stock in good management
and staff motivation and training.
• Install computerized management
systems.
• Provide corrective and preventive
maintenance.
• Offer the experience and specialized
knowledge needed to implement
these approaches skillfully: expertise
gained from work on many different
points.
• Many contracts provide for full cost
disclosure and end-of-year
reckoning, with any budget under run
returned to the city. Some categories
of cost savings are split with the
contractor.
• Keep "open books" and report
regularly so the city can see what's
being done and what it costs.
• Usually seek 5-year contracts so that
they can establish a track record with
the client, prove their effectiveness
over time, and spread their front-end
costs over several years.
• Undertake most of the management
headaches, leaving fewer
responsibilities for the city.
• May help the city pay for costly
capital improvements.
• Pay fines if they violate effluent limits.
This last feature indicates the
confidence these specialists have that
they can turn around a poorly
performing plant
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WHAT EVERY
MUNICIPALITY
WANTS TO KNOW
How Can A Firm Beat Our Performance
And Still Save Money?
Contract operations firms are proud of
the cases in which they improved plant
O&M and handed the city a check for
shared savings at year's end. But if you
seek bottom-line savings only, you may
end up disappointed. Contract
operations companies hold improved
performance as their primary goal, and
focus on giving clients the most for the
money they spend. In many instances,
however, cost savings can also be
achieved.
Savings depend on many things,
particularly on the nature of your
plant's problems. A history of severe
physical problems or very poor
management at your plant may mean
that cost conservation by a contractor
must be shifted to other deficient areas
to improve performance. The overall
plan for improving plant O&M is also a
factor: savings may be dramatic the
first year, but plateau as the plant
approaches maximum efficiency.
In short, don't expect a miracle, even
though some companies do have
miracles on their books.
How Do They Do It?
Cost savings can be achieved in many
ways:
Energy Efficiency—Analysis of design
and operations often reveal ways to cut
fuel and electrical consumption.
Total O&M $/Mil. Gal.
Before/After Contract Operations
c
_0
IB
O „
I- ">
ll
= re
£ 1
-» o
O
£
$3.0 •
$2.8
$26 •
$24 •
$22 •
$20 •
$1.8 •
$1.6-
$1.4 •
$1.2 •
$1.0 •
$0.8-
$0.6-
$0.4
$0.2
$0.0 •
Plant 1 Plant 2
Legend
Before
After
Plant
Plant 4
Plant 5 Plant 6 Plant 7
Plants
Management—Increases in pay and
training improve morale and labor
productivity. Management focused on
bottom-line saving and using modern
computer techniques can increase
efficiency, and foster troubleshooting
and conscientious O&M.
Purchasing Power—Large Contract
operations firms have national
contracts for parts and chemicals.
Staffing and Training—Better trained
and more productive personnel mean
better teamwork and make possible a
leaner staffing plan.
Economies of Scale—Contractors
often operate a number of smaller
plants with one "circuit rider"
superintendent or one lab.
Backup Expertise—Many firms have
technical experts who can be brought
in to solve problems before they
become crises.
Process Control—Creative techniques
put to work by knowledgeable,
experienced managers can mean
fewer chemicals and less energy used.
Automated Systems—Most firms
feature computerized management,
monitoring, and administrative systems
that cut costs while increasing
oversight power.
Capital Improvements—Contract firms
identify long-term repair and
replacement needs. Some will help
muncipalities finance major equipment
that creates dramatic cost savings.
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Is Contract Operations Right for My
Plant?
The decision to bring on a contract
O&M firm should not be made in haste.
It is essential to perform a complete
evaluation to determine whether the in-
house route is feasible and if so, more
cost-effective. The place to begin is by
getting input from sources that are as
knowledgeable and objective as
possible. To find out more about the
present problems and in-house
solutions, talk to the plant staff and
superintendent. If your community is
large enough to have these
departments, check with the public
works director, community relations
officer, and financial manager. To find
out more about contract firms that may
be able to help you, check with the
state health and environmental
agencies. It may be very helpful to
contact a city manager or plant
superintendent in another municipality
who has experience with contracting.
You could also invite representatives
from various contract firms to give you
a presentation of their services. Don't
expect a full-blown audit of your plant,
however. These are costly and few
firms will carry out a thorough plant
review without a definite job prospect.
To better evaluate the information from
contractors it can be beneficial to
develop a cost estimate for in-house
improvements. What will it really cost
you to improve plant management,
revise staffing, implement necessary
training, install a preventive
maintenance program, and carry out
the other changes that a contract firm
would put m place. EPA's brochure on
cost-effective plant operations—Six
Cities Save Over A Million Dollars—
should be helpful in making this
assessment.
Another tool that can be used in your
decision-making process is the
accompanying plant checklist. Review
the list and attempt to answer the
questions realistically. If you answer
"yes" to several of the questions, it may
reflect major underlying problems with
plant management and budgeting. In
this case it may be hard to bring the
plant around on your own. On the other
hand, major changes in management,
staffing, and financing can work
wonders. It takes a major commitment,
however.
Your final decision should also
consider that it will cost you something
to bring on and manage a contractor.
Based on the communities we talked to
you may spend one-third of a staff
person's time for four or five months to
research and write a request for
proposal, and manage and evaluate the
response. Contract management will
also be required over the length of the
contract term.
What Can I Expect When the Contract
Operations Firm Takes Charge?
Typically, the firm's staff will:
• Immediately upgrade the plant's
public image by improvements in
physical appearance.
• Put a top quality superintendent in
place (or keep a good one).
• Analyze the first steps toward
fundamental improvement of
operations.
• Fix gross deficiencies in the plant,
• Give the superintendent effective
management techniques and
efficient tools (e.g., automated
systems for controlling operations
maintenance, and administration).
• Adjust staffing; train and motivate.
• Stress efficiency and fine-tune
operations to optimum levels.
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What's the Best Way
to Engage a Firm?
If you have completed the necessary
facility evaluation and concluded that
contract O&M is probably the best
route to take, the next step is to develop
and carry out a process for hiring a
contractor. In our survey of plants
across the country some chose to
produce a request for proposal that
clearly outlined their needs and then
solicited technical and cost proposals
from a number of contract firms. Others
just accepted recommendations from
other communities, professional
organizations and other sources. In this
case, bids from a small number of
qualified firms were requested.
Regardless of the approach taken to
identify qualified firms, once
information is received, you should
review the materials and evaluate the
following points at a minimum:
• Is the staff large enough to handle
your needs along with other on-
going work.
• Is the training and experience of the
staff relevant and adequate for the
work.
e Does the firm and the staff have
experience with the treatment level
and process type of your plant.
• Do reference checks verify that the
firm's work has been professionally
completed as scheduled and for the
projected budgets.
Based on the review of qualifications,
one or more firms should then be
chosen and their bids evaluated. The
first step is to compare the firms'
projected costs to the in-hous.e totals
generated earlier. If they appear
reasonable in this light, then compare
the costs to each other. Make sure you
know what each firm is promising for
the cost—the number of meetings with
the municipality, the types and
frequency of reporting, the types of
responsibilities the firm will assume,
guarantees of performance and
willingness to accept responsibility for
fines, and most importantly, the basis of
payment and willingness to rebate any
savings. Negotiate with the top one or
two firms until you are satisfied with
one firm and feel that the bid price is
best for the municipality. Before a
contract is signed, make sure that it
specifies the roles of the contractor
and the community and that these roles
are acceptable to you.
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EVALUATING WASTEWATER PU\NT OPERATIONS
AND MAINTENANCE: A CHECKLIST
Is your plant experiencing some of these problems'5 If so, you may want to seek
expert help from a contract operations firm.
Yes No
Design Problems? Has your plant had trouble meeting design
specifications from the beginning? Have increasing design
problems come to light as the plant has aged7 Have staff had to
jerry-rig solutions to design problems continually? Is the plant
be'ng run to design parameters7
Excessive Costs? Has the wastewater budget been increasing
disproportionately as the plant has aged7 Are replacement
costs nigh7 Are the same items being replaced too frequently'7
Personnel Problems? Is morale low"7.Are staff overworked, but
poorly utilized? Is staffing out of synch with workload and shift
requirements7 Are there labor/management disputes7 Is salary
commensurate with performance? Is it hard to acquire and
keep staff?
Public linage Issues? Do you hear complaints from citizens
about overflow and backup problems? Odors'7 Appearance7
High user charges? Water quality problems?
Operating Inefficiencies? Do plant managers fail to take
advantage of opportunities for cost savings or economies of
scale? Are certain operating units underutilized? Have
chemical or energy costs risen excessively?
Compliance Difficulties? Has your effluent frequently been in
violation of standards? Have you experienced enforcement
actions or paid fines? Is compliance regularly marginal: right at
the "line"? Are periodic problems from industrial loads
frustrating compliance?
Training Issues? Do plant managers fail to provide training in a
consistent, effective manner? Are staff inadequately prepared
to deal with sophisticated equipment7 Do you have too many
specialists on staff arid not enough generalists? Have you had
safety problems or lost-time accidents?
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HOW SMOOTH IS
THE PARTNERSHIP?
If you're like most municipal officials,
you probably have concerns about
relinquishing absolute public control of
a municipal asset. There are probably
nagging doubts about putting a profit-
motivated enterprise in charge of the
municipality's most costly capital
investment. It may be helpful to
describe the typical division of
responsibilities and methods by which
you will be able to exercise control
over the contractor.
The contract operations firm will take
over almost every aspect of plant O&M.
Typically, the city is left with
responsibility for the collection system
including control of inflow and
infiltration and industrial discharges,
(although in some cases, it may be
more cost-effective for pump stations
and the collection system to be
contracted also). In most cases, the
municipality maintains responsibility for
billing consumers, and property
insurance.The accompanying chart
shows a common division of labor
between the city and the contractor.
The fear of losing control of the facility
is a valid concern for officials who
must answer to the public. However,
the municipal managers in EPA's study
did not raise this as a problem. In
general, if you investigate the firm's
reputation, carefully analyze its plan for
plant improvement, read the contract
carefully, establish regular reporting
mechanisms, and keep a watchful eye
on operations, you will have a great
deal of control over plant O&M while
getting rid of many of its headaches.
These are simply common sense
precautions that take few resources to
carry out.
Because of public concerns that the
firm's self-interest will tend to override
the public interest, contract operations
firms have wisely moved to allay fears
by opening their books, committing to
the payment of fines, rebating unspent
maintenance funds, and engaging in
other sunshine practices to attract
customers. Also, because news of any
wastewater "horror story" travels fast in
the industry, firms make sure they can
make a plant work before they accept a
job, and take great pains to fulfill their
contracts. Despite these developments,
question the firms closely to satisfy
your concerns and get specific
commitments in writing.
SOUNDS GOOD,
BUT SHOW ME
EPA's sample of contract operated
plants revealed that contract
operations is a successful technique
for improving the performance and
cost-effectiveness of many municipal
treatment plants. Nearly all of the plants
in the study experienced major
problems prior to contracting out O&M.
In most cases, conditions improved
significantly after take-over by the
contract firm. Often, however, the
improvements came in the areas of
performance and compliance, not
necessarily cost. All but one of the
plants studied have been brought into
compliance on a regular basis, and
even that one is coping well with high-
strength industrial waste loads. As
detailed below, some plants did
experience significant decreases in
total costs, while others experienced
significant increases.
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CONTRACT OPERATIONS:
TYPICAL ROLES AND RESPONSIBILITIES
Action
• Collection
System
Operation
• Plant
Operations
• Plant
Maintenance
• Noncompliance
Responsibility
« Service Charges
Payment
« User Charge
System
• Design Modi-
fication
Clause
Responsibility
City
Contractor
Contractor
Contractor
(pays fines)
City
City
Contractor
(with City
approval)
Action
• Maintenance
Inventory
Levels
• Residues
from
Facility
• Liability
Insurance
• Fire, Casualty
Eminent Domain
• Grounds for
Contract
Termination
• Equipment,
Failure/Emergency
Maintenance
Performance
Payment
Responsibility
Contractor
Contractor
Contractor
City
Contractor/
City
(Breach of Contract)
Contractor
Contractor/
City (Contractor)
responsible up to
$1,000 per piece of
equipment. City
responsible for
expenditures over
$1,000 per piece of
equipment).
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CONTRACT
OPERATIONS:
THE RESULTS
IMPROVING A PROBLEM
LARGE PLANT
A large midwestern secondary
activated sludge treatment plant which
was in significant non-compliance
prior to contracting now meets weekly
BOD limits but still occasionally
exceeds 30-day averages. Previously,
sludge had been temporarily held in
lagoons. An on-going land application
program has now been put in place
and both the stockpiled sludge and
current production is being disposed.
Odor problems have also been
significantly reduced.
The contractor has reduced the staff by
35 percent, implemented a
computerized preventive maintenance
system, and put in place numerous
cost-saving operating techniques such
as improved methane recovery and
increased blower efficiency. Though all
of these efforts have yet to be totally
successful, there has been an
improvement in performance. Cost to
the city in constant dollars has not
increased significantly under contract
firm operation even though solids
disposal costs are now greater and
effluent quality is improved.
SMALL AWT ACHIEVES
MAJOR COST REDUCTION
AND PERFORMANCE
IMPROVEMENT
In another midwestern community
contract operations was selected for a
smaller, oxidation ditch plant with
stringent limits for BOD and suspended
solids, but no nutrient limits. This
facility was brought under contract
along with the town's water supply
system when a newly appointed city
manager found very poor management
and operating conditions at both the
facilities, and compliance problems
with the wastewater plant Three
options were evaluated—turn things
around with the existing staff, hire a
new manager, or contract the entire
operation out. Option three was
chosen.
In the fifteen months since contract
operation began the contractor has
made numerous improvements at the
plant. An energy audit was carried out,
pumps and impellers were rebuilt,
excessive sludge in the process units
were gradually eliminated, and a
computerized preventive maintenance
system was put in place. Plant staff
was trimmed, largely by cross-training
operators so they can run both water
and wastewater facilities. Major design
problems with the plant have been
identified and a correction program is
about to get started. During this period,
problems with solids have been
eliminated, and effluent quality has
increased. At this particular facility, the
contractor has also been able to
reduce annual costs to the municipality
by over 50 percent.
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LIMITED CHANGES AT
SMALL WESTERN PLANT
A small western activated sludge plant
was one of the exceptions to the overall
finding of significant improvements.
The key reason for this finding,
however, may be that the facility was
not experiencing significant cost or
performance problems prior to contract
operations. Effluent limits were
routinely being met on a monthly
average basis. However, the utilities
director felt that it would be in the city's
interest to put the facility under
contract, partially because he was
concerned that operation would
become more complex with new units
coming on-line
Since the plant was put under contract.
performance has remained about as it
was previously Improvements put in
place by the contractor include
redesign of sludge pumps to save on
frequent replacement of pump
diaphragms, implementation of a
computerized preventive maintenance
system, use of daily operating logs, and
an increased emphasis on safety at the
plant. Staffing at the plant has also
been cut by over 20 percent.
Opportunities to increase productivity
of the staff, however, appear to have
been missed, as there has been little
salary increase for the remaining staff,
and incentive pay has not been used to
encourage performance or advance-
ment as it has at other plants in the
survey.
STAFF STABILITY AND
BETTER EFFLUENT
QUALITY ACHIEVED
THROUGH CONTRACTING
Another western municipality with a
small activated sludge plant has also
selected contract O&M. Prior to
contracting out, the plant was
experiencing difficulties in meeting
effluent permit limits. The mayor and
city manager also had experienced
great difficulty in attracting a qualified
plant superintendent. They also felt that
the staff was not adequately skilled and
trained Long-term cost stability was
another maior issue
The plant has now been under contract
for over four years. During this period,
effluent quality has improved until it is
now well within permit limits The staff
has also been trimmed by nearly
20 percent partially as a result of
cross-training and combining staff with
the city's water plant Total costs for the
plant have decreased, but not by a
significant amount. The contractor has
put more money into staff salaries,
significantly cut chemical cost, and
trimmed electrical cost. Sludge
handling efficiency has been
increased, cross-training has lowered
maintenance cost by 41 percent and a
preventive maintenance system has
been put in place. Maintenance
efficiency has been improved through
the use of infrared and ultrasonic
testing of mechanical equipment The
city received a refund based on cost
savings last year, and overall, city
officials are well satisfied with the
program
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RECOVERY OF A PLANT
WITH MAJOR PROBLEMS
STILL NOT COMPLETE
The study also examined two southern
communities which put contract O&M
in place. The first community operated
a moderately-sized secondary,
activated sludge plant that was a
classic example of what can happen
when inadequate attention and
resources are directed to the treatment
facility. The plant suffered from design
problems, high industrial loads, and
inadequately trained staff. Solids
handling and disposal equipment at the
twelve-year old facility was completely
broken down. As a result, the plant was
experiencing major sludge disposal
and compliance problems.
The plant has now been under contract
operation for two years. Despite some
mixed results, there have heen
significant overall improvements in
operation and maintenance. A
temporary solids handling system '.ids
been installed and plans have been
developed for a major repair and
replacement program. The staff ha;
been trimmed, and remaining staff h?
become more productive through
weekly training classes. A safety
program has been put in place, as has
a computerized preventive
maintenance program and cost
accounting system. As a result, effluent
quality has improved and the solids
disposal problem is on the way to
resolution. Overall, contract operations
have brought significant improvements
to the facility. However, because of the
number of major improvements
required, the plant budget has
increased over 15 percent.
MAJOR CHANGES IN
OPERATION BRING BIG
COST SAVINGS
In the second southern community
difficulties were being encountered
with the town's small advanced
wastewater treatment facility. The
plant's unique design was creating
major operating difficulties for the city's
superintendent and staff. The result
was high operating cost and
compliance problems. There was also
a general feeling held by the city
manager that a more reliable,
professional method of operating the
plant was necessary to ensure service
to the community.
This plant has now been operated and
maintained by a private firm for over
two years. During this period, effluent
quality has been brought into
compliance and costs have been
decreased by over forty percent. Major
increases in efficiency have been
achieved by taking almost half of the
plant off-line and revising operation of
the remaining on-line units. Significant
~uts in staff have been put in place. A
oject manager has been assigned to
tne facility, and a previous plant"
employee promoted to superintendent.
A major training program has been put
in place, resulting in significant
improvements in staff capability and
morale. Computerized operations and
maintenance programs have also been
installed at the plant. Town officials
have been very pleased with the results
of the contracting program. A number
of cost rebates have been received,
and it is felt that the stability and
reliability of the wastewater system was
instrumental in a major manufacturing
facility locating in the community.
CONTRACT O&M
PROVIDES STABLE
MANAGEMENT AND
IMPROVED EFFLUENT
QUALITY
Two treatment plants in the northern
United States were also included in the
survey. One of these was a small,
secondary activated sludge plant run
by a volunteer sewer authority. Key
problems at the plant included lack of a
capable superintendent and trained
staff and a number of small, but not
insignificant design problems. Despite
these conditions, effluent quality was
being maintained within permit limits.
When a contract firm responded to the
authority's ad for a new superintendent,
a proposal was requested and other
firms were also asked to respond. One
firm was selected, and the plant has
now been under contract for three
years. During this time, effluent quality
has been further increased,
computerized process control and
preventive maintenance systems have
been put in place. The total plant
budget has decreased slightly since the
contractor took over.
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MID-SIZE PLANT
IMPROVES MANAGEMENT
AND COMPLIANCE
The final plant in the survey was a mid-
sized secondary, activated sludge plant
in the northern United States. This plant
had experienced compliance
difficulties and public image problems.
The city also had significant personnel
management problems. After being
made aware of contract operation and
maintenance through a National
League of Cities meeting, the city
manager researched contract firms and
requested a bid from one firm.
The contractor has now been on board
for about one year. The city's staff was
retained including the plant
superintendent; however, training was
significantly increased. During this
time, operations have been improved, a
computerized preventive maintenance
system put in place, and economies
have been achieved in chemical use
and purchasing. As a result of these
efforts, the plant has been brought into
compliance and costs cut by about five
percent. The city manager believes that
the contract firm provides the skills and
operating stability the city needed, and
has brought about a complete turn
around at the plant.
WHERE CAN
I GO FROM HERE ?
If you are interested in obtaining further
information about contract O&M there
are a number of sources which we
would recommend. A call to your state
water quality management agency or
EPA is a good starting point. Agency
staff can probably provide names of
O&M firms operating in your area. They
may also know plants nearby that have
turned to contract O&M. Most of the
major, national firms advertise in
wastewater and municipal
management periodicals. Many of the
firms have exhibits at municipal
association conferences around the
country. Once you have a list of names
and references call the firms. They will
be happy to send you further
information and can probably have a
representative come out and meet with
you.
This brochure was prepared by EPA's
Office of Municipal Pollution Control,
Planning and Analysis Division. We
wish to recognize the assistance of the
following contract O&M firms: EOS;
The Maryland Environmental Service;
Metcalf and Eddy Services, Inc.;
Operations Management International,
Inc.; and Professional Services Group,
Inc. We would particularly like to thank
the employees at the eight survey
plants who gave a significant amount of
time and assistance. EPA was assisted
in the preparation of this brochure by
the staff of Roy F. Weston, Inc., and
Peat, Marwick, Mitchell and Company.
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