United States
Environmental Protection
Agency
System Partnership Solutions to
Improve Public Health Protection
— Volume II —
The following are examples of case studies designed to show how
partnerships can help small systems enhance their ability to
provide safe and affordable drinking water
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System Capacity Challenges and Partnership Solutions Overview
Water system capacity is the ability to plan for, achieve, and continually provide safe and affordable drinking
water to customers, thereby increasing public health protection. Capacity development is the process through
which drinking water systems acquire and maintain the technical, managerial, and financial capabilities to
consistently provide safe drinking water. All states are currently implementing state-specific capacity
development programs tailored to meet their water systems' needs. One tool for building capacity is system
partnership solutions.
The case studies featured within this brochure identify successful partnership solutions available to these
specific water systems. Partnership solutions may not be appropriate in all cases, but should be considered as
an option. Public water systems that may be experiencing similar situations in meeting the challenges towards
the provision of safe drinking water may find the ideas highlighted in this brochure useful.
Technical
• Inadequate & deteriorated infrastructure
• Limited/poor source quality/quantity
• Lack of operations & maintenance expertise/certified operator
Managerial
• "No time" or limited part time management attention
• Lack of expertise in long-term water system planning/operations
• Lack of focus - providing water is not the system's primary purpose
Small System
Challenges
Financial
Diseconomies of scale (fewer households = higher costs)
History of low rates = resistance to full-cost pricing
Limited knowledge of financing options
Located in economically disadvantaged areas
System partnership solutions can range from informal cooperation, such as
mentoring programs, to ownership transfer with managerial and/or physical
consolidation
System
Partnership
Solutions
The following system partnership solutions serve as examples of these
capacity building tools and involve changing the operational, managerial or
institutional structure of a water system. The changes serve to meet the
increasing costs and responsibilities of consistently providing safe water that
meets the Safe Drinking Water Act standards
System Partnership Spectrum
Internal
Changes
Completely
self-sufficient,
relies mainly
on internal
organization
partnering
Informal
Cooperation
Coordinate
with other
systems, but
without
contractual
obligations
Contractual
Assistance
Utilities contract with
another system or
service provider, but
contract is under the
system's control
Joint Powers
Agencies
Creation of a new
entity designed to
serve the systems
that form it (Public
Service Authority,
Regional Water
Authority, etc.)
Ownership
Transfer
Owned by an
existing entity
or a newly
created entity
Increasing Transfer of Responsibility
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System Capacity Challenges and Partnership Solutions Overview
Technical
• Shared, new, or upgraded infrastructure
• Locate higher quality/quantity source water
• Access to a certified operator and additional expertise
• More efficient treatment technologies available
Managerial
• Expertise in water system planning/operations
• Accelerated path to obtaining the managerial skills and
structure required to adequately oversee the water system
Potential
Outcomes
Financial
Reduced costs = safe and affordable water at full cost pricing
Greater economies of scale achieved through shared services
Increased access to funds
Opportunities
for System
Partnerships
84% of America's 53,000 community water systems are small systems serving
fewer than 3,300 people
86% of these small systems are within 5 miles of another system*
The proximity of these systems to potential partners demonstrates many
opportunities for small systems to form cooperative agreements, share
services, or join together under common management
The feasibility of physical interconnection should be analyzed carefully and
compared with the economic savings that other partnership solutions may
achieve
Distance to next closest
Community Water System"
5 to 10
Miles
12%
10 to 20
Miles
2%
1 to 5
Miles
86%
*Source: "Feasibility of Small System Restructuring to Facilitate SDWA Compliance," AWWA
90720. Denver, CO: American Water Works Association, 1997
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United States
Environmental Protection
Agency
System Capacity Development Case Study
Atoka County Rural Water District #1, Wardville, Oklahoma, 2003 - 2005
Backaround
The Atoka County Rural Water District (RWD) #1 in Wardville, OK used nearby Wardville
Lake as its water source. In 2003, when water levels in the lake began to drop due to a
prolonged drought, the system's ability to provide safe drinking water to its 75 customers
was jeopardized.
Public Health Challenges
Due to frequent turbidity violations, the system was under a boil water order for more than
a year. In 2003, the system was placed under a regulatory consent order from the
Oklahoma Department of Environmental Quality.
Capacity Issues
Technical
Managerial
Financial
The system's water source was almost depleted.
The system's surface water treatment plant did not have a settling tank,
which led to high turbidity.
The treatment plant had not been upgraded since the 1980s.
The treatment plant was designed to process 12,000 gallons per day, but was
treating over 20,000 gallons daily.
40-year old distribution lines caused the system to lose approximately half of its
finished water to leaks.
>• A lack of long term planning resulted in no alternative water source being
identified until the issue became extremely urgent.
The system had inadequate rates, no reserve funds, and no access to capital
financing.
Actions: Contractual Assistance
The National Guard began to haul drinking water to the community, serving as an emergency
water source.
For a longer term solution, Atoka County RWD #1 first considered extending a pipeline to
Stringtown, OK's water system. This solution was not pursued because it would have
required construction of several miles of 6-inch-diameter water line plus other improvements
costing an estimated $680,000.
Atoka County RWD #1 instead chose to build a 4-inch-diameter pipeline that tied into
Pittsburg County RWD #11, which had a distribution main only 3 miles away, and entered
into an agreement to purchase water from Pittsburg County RWD #11. This alternative cost
only $86,000, which was mostly funded through an Oklahoma V\foter Resources Board
emergency grant
In 2005, three miles of 4-inch-diameter PVC piping was laid to connect the system to
Pittsburgh RWD #11. A master meter was installed to measure water usage and assess
losses due to leakage.
The agreement to purchase water from the neighboring water system has resolved Atoka
County RWD #1's water shortage and ended the system's health violations, providing the
system's customers with a reliable source of safe drinking water.
The residents are now paying reasonable rates that will cover the cost of the purchased
water and sustain the system.
Questions about Oklahoma's Capacity Development Program? Contact Brad Cook • Oklahoma Department of Environmental
Quality • P.O. Box 1677 • Oklahoma City, OK 73101-1677 • (405) 702-4178 • Brad.Cook@deq.state.ok.us
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&EPA
United States
Environmental Protection
Agency
k
System Capacity Development Case Study
Region 18 School District, Connecticut, 2004
The Region 18 School District in Connecticut owned and operated three separate non-
transient non-community public water systems - Old Lyme High School, Old Lyme Middle
School, and Old Lyme Center School -with a combined population of approximately
1,500.
Jlenge.
Each school's water system experienced recurring violations of the maximum contaminant
level (MCL) for total coliform bacteria. Deficient wells and storage facilities contributed to
the recurring water quality violations.
Capacity Issues
Technical
Managerial
Financial
The Old Lyme Middle School and Center School were supplied by dug wells
that had several construction defects.
The atmospheric storage tank for the Old Lyme High School did not have
access ports for routine cleaning. The quality of the water from the tank was
also suspect because the wells supplying the tank tested negative for total
coliform.
All schools had limited or no atmospheric storage capacity to meet the
average daily water usage demands.
The water systems were operated by conditional operators (grandfathered staff)
who were not water system professionals with full knowledge of all drinking
water regulations.
The systems had several monitoring/reporting violations for failure to submit
required water quality samples in a timely fashion.
The Region 18 School District faced significant cost constraints and could not
afford to make the necessary infrastructure improvements to each system.
Actions: Contractual Assistance (and system consolidation)
Through consultations with the Connecticut Department of Public Health, the Region 18
School District entered into a consent order to design and construct a consolidated water
system to serve all three schools.
Four new wells were drilled to supply the consolidated water system. The new water system
includes a 121,000-gallon storage tank, which meets the needs for potable water and fire
protection.
The Region 18 School District was able to secure reimbursement funding from the
Connecticut Department of Education to cover approximately 36 percent of the consolidated
water system project.
Outcome.
The new Region 18 School District consolidated water system is now in compliance with
water quality standards for total coliform bacteria and is capable of meeting the daily
demands of all three schools.
The new water system is managed and operated by a professional water utility operations
company. The Region 18 School District can now focus on the education of children instead
of the daily responsibilities of complying with state and federal drinking water regulations.
Questions about Connecticut's Capacity Development Program? Contact Steve Messer • Connecticut Department of Public
Health • 410 Capitol Avenue • Hartford, CT 06134-0308 • (860) 509-7333 • Steve.Messer@po.state.ct.us
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»EPA
United States
Environmental Protection
Agency
System Capacity Development Case Study
Public Wholesale Water Supply District #23, Kansas, 1997 - 2006
Kansas allows systems to form public wholesale water supply districts (PWWSDs) where
members buy water at wholesale rates from the PWWSD while retaining autonomy over
their own systems. Representatives of each member system work with the PWWSD Board
of Directors to make decisions for the entire PWWSD.
In the late 1990s, various water quality issues, such as drought, confronted many small
water systems in southeastern Kansas.
Like many small systems in southeastern Kansas, 20 water systems in and around Fredonia
suffer from water shortages made worse by drought. Several of these systems are under
consent orders due to noncompliance with the Surface Water Treatment Rule (SWTR). In
addition, some systems' finished water exceeds the maximum contaminant levels (MCLs) for
trihalomethanes and haloacetic acids.
Capacity Is,
Technical
Financial
>• Many of the surface water systems' treatment plants are outdated and not in
compliance with SWTR requirements.
^ The plant capacity of many of the 20 water systems is not adequate to meet
demand.
Many of the systems did not have the reserves, rate base, or access to capital
required to finance the necessary treatment plant upgrades.
Actions: Joint Powers Agencies
Twenty neighboring small systems joined to finance a feasibility study of creating a public
wholesale water supply district (PWWSD) to help address their water supply and quality
issues.
The study determined that the creation of a PWWSD by the 20 systems was feasible and
would help address the systems' issues.
Fredonia's surface water treatment plant, which needed significant upgrades to meet new
SWTR requirements, will be purchased by the PWWSD, expanded, and upgraded to provide
wholesale water to the entire district. The project has received funding from the U.S.
Department of Agriculture's Rural Development Loans and Grants Program.
Outcomi
Completion of this project will result in the expansion and upgrading of Fredonia's surface
water treatment plant so it can provide reliable and safe water to all 20 of the district's
member systems in a cost-effective manner.
Member systems will be in compliance with the SWTR; outstanding consent orders will be
closed.
Questions about Kansas' Capacity Development Program? Contact Cathy Tucker Vogel • Kansas Department of Health and
Environment • 1000 SW Jackson St., Suite 420 • Topeka, KS 66612-1367 • (785) 368-7130 • CTuckerv@Kdhe.state.ks.us
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wEPA
United States
Environmental Protection
Agency
k
System Capacity Development Case Study
Brookfield and New Milford, Connecticut, 2005
Located along Route 7, one of the state's major transportation and commercial corridors,
the western Connecticut towns of Brookfield and New Milford have experienced numerous
contamination issues with their water systems. A reliable water supply was needed to
satisfy the rapid development and growth of this area, while providing a solution to
Brookfield and New Milford's contamination issues.
Public Health Challeng
At one time Brookfield and New Milford had over 300 small public water systems. The
contamination issues that plagued many of these systems included E. coll and coliform
bacteria, volatile organic chemicals, radioactive compounds, and nitrates.
Technical
Managerial
Financial
>• Lack of a water supplier with an adequate residential, commercial, and fire
protection supply for the Route 7 corridor in New Milford and Brookfield.
>• An inordinate amount of point sources of contamination spread across the
entire corridor that limited available sites for suitable water supply sources.
The Route 7 corridor is divided into three Exclusive Service Areas managed
by three separate private entities, complicating the identification of a solution to
the issues. (Connecticut assigns an "Exclusive Service Area" to an existing
water utility using an area-wide planning approach in which the utility accepts
responsibility for all new water systems in its service area.)
>• The funds necessary to extend a reliable water supply to New Milford,
Brookfield, and the Route 7 corridor were not available under conventional
means of financing for the rate-regulated private utilities that were assigned the
Exclusive Service Areas.
Actions: Contractual Assistance and Ownership Transfer
The solution to the issues facing Brookfield and New Milford was arrived at after Faith
Church, a school and 1,200-seat ministry located on the Brookfield/New Milford border,
requested water service.
United Water Connecticut (UWC), Faith Church, and the Connecticut Department of Public
Health reached an agreement to extend a United Water main to the church, which would also
allow for expanded water service along Route 7 into Brookfield. Faith Church agreed to fund
approximately 50 percent of the water main extension.
UWC requested and received approval from the Connecticut Department of Public Utility
Control to modify the standard refund agreement for water main extensions, allowing UWC to
advance the balance of the funds necessary for the construction of the water main extension.
Outcomes
The Faith Church water main extension, completed in 2005, has allowed for expanded water
service along Route 7 and Brookfield.
The development, growth, and fire protection needs of the Route 7 corridor are now being
met.
Several small public water systems that had serious contamination issues have been
eliminated, with water now being supplied through UWC's distribution system.
Questions about Connecticut's Capacity Development Program? Contact Steve Messer • Connecticut Department of Public
Health • 410 Capitol Avenue • Hartford, CT 06134-0308 • (860) 509-7333 • Steve.Messer@po.state.ct.us
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4»EPA
United States
Environmental Protection
Agency
System Capacity Development Case Study
Isle of Pines Water System, South Carolina, 2000 - 2006
sle of Pines is a small water system with 18 connections in Lexington County, SC. In 2000,
the owner of the system for 20 years died and left the operation of the system to his
widow, who faced many challenges in operating the failing system.
Public Health Challenges
Along with a poor-quality groundwater source that was not monitored for contaminants,
distribution line breaks were common. This led to constant interruptions in service and
numerous boil water orders, and resulted in the system's customers relying on purchasing
bottled water for drinking.
Capacity Issues
Technical
Managerial
Financial
Low-quality water source.
Frequent distribution line breaks.
Leaking storage tank.
>• The widowed operator was unable to comply with relevant drinking water
regulations.
^ No properly trained and certified operator.
Insufficient revenue, reserves, and access to capital needed to replace aging
infrastructure.
Actions: Ownership Transfer
The owner petitioned the South Carolina Public Service Commission (PSC) to abandon the
system and was told to find a replacement owner.
South Carolina Capacity Development staff coordinated two community meetings to explore
the failing water system's options and to assess the possibility of connecting with the nearby
town of C ha pin.
In 2004, the Lexington County Public Works Department received a $106,000 Drinking
Water State Revolving Fund (DWSRF) loan to extend drinking water service to the Isle of
Pines system from the town of Chapin.
In 2005, Lexington County installed over 4,000 feet of drinking water lines to connect the
smaller system to the town of Chapin, which operates the system and will assume ownership
once the DWSRF loan has been repaid.
Outcomes
Through the combined efforts of town, county, state, and PSC staff, the system now has a
high-quality water source and is operated by a properly trained and certified operator.
Customers have consistent, high-quality drinking water, and boil water orders have been
eliminated.
Questions about South Carolina's Capacity Development Program? Contact David Price • South Carolina Department of Health
and Environmental Control • 2600 Bull Street • Columbia, SC 29201 • (803) 898-3993 • PRICEDC@adhec.sc.gov
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wEPA
United States
Environmental Protection
Agency
k
System Capacity Development Case Study
Eastern Wyoming Public Service District, West Virginia, 2000 - 2008
Many drinking water systems in eastern Wyoming County WV, were built by coal
companies during the first half of the 20th century. Residents struggled to keep these water
systems viable after the mining companies left the area and turned over control of the
systems. Many systems were maintained by local volunteers, resulting in erratic service,
deteriorating infrastructure, and potentially unsafe drinking water. The Eastern Wyoming
Public Service District (EWPSD) is a new regional water system formed by the county
commission that will eventually consolidate 15 of these systems with a total population of
about 6,500 persons.
Public Health Challeng
The 15 aging water systems suffered from serious microbiological contamination, irregular
water service, inadequate disinfection, and aging distribution systems subject to frequent
line breaks. The systems had numerous health-based and monitoring and reporting
violations, and several systems had been under boil water orders for years. Recent flooding
exacerbated many of the public health challenges facing these systems.
Capacity lss«
Technical
Managerial
Financial
Aging distribution systems and treatment plants.
Frequent distribution line breaks.
Inadequate raw water treatment.
After mining companies left, the systems had no certified or properly trained
operators to oversee operations.
Inadequate rates and bill delinquency led to a lack of funds to rehabilitate the
aging systems.
Actions: Ownership Transfer
In 2000, the Public Service Commission of West Virginia placed five systems into
receivership. Neighboring Logan County Public Service District assumed the operation of
the five systems.
The West Virginia Capacity Development team assessed the five systems and four others
close by and recommended physical consolidation of the systems to address their capacity
issues.
EWPSD was formed to consolidate the 15 drinking water systems through physical
interconnection and construction of a single regional water treatment plant. Funding includes
$3.5 million from the Drinking Water State Revolving Fund (DWSRF). EWPSD has
established a more appropriate rate structure and pricing.
The first phase of the consolidation, interconnecting seven systems and constructing a new
regional treatment plant, is under way and scheduled for completion in fall 2006.
Outco.
Upon completion, the EWPSD will replace 15 small, failing water systems with a single
larger, viable water system providing 6,500 eastern Wyoming County residents safe, reliable
drinking water.
The EWPSD will also extend drinking water service to several previously unincorporated
areas.
Questions about West Virginia's Capacity Development Plan? Contact Richard Watson • West Virginia Bureau for Public Health • Capitol
and Washington Streets • 1 Davis Square, Suite 200 • Charleston, WV 25301-1798 • (304) 558-6747 • richardwatson@wvdhhr.org
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Office of Water (4606M)
EPA816-R-06-005
vwvw.epa.gov/safewater
October 2006
Printed on Recycled Paper
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