CHARLOTTE WATER & UNION COUNTY PUBLIC WORKS

TEMPORARY OWNERSHIP TRANSFER FOR LONG-TERM SUCCESS

A Water System Partnerships Case Study

Union County
Public Works

Charlotte Water

Richmond

Norfolk^ ^Virginia Be

Greensboro

o Durham

NCTRTH
Charlotte CAROLINA

./'"Asheville

ATLANTIC
OCEAN

^SOjlH Hi

CA?ROLi m>-a Myrtle Beacff

Creating the Charlotte Water and Union County
Public Works Partnership

Background

Charlotte Water is the largest public water and wastewater system serving the
Carolinas. It provides services for over 1 million people in Mecklenburg County,
including the City of Charlotte and five surrounding towns. Charlotte Water has
approximately 950 employees, 4,000 miles of sewer lines, and another 4,000
miles of drinking water distribution mains.

Union County Public Works is a public water and wastewater system that serves
a population approximately one-fifth the size of Charlotte Water's customer
base. Aging infrastructure, lack of appropriately certified operators, and a lack of
financial capacity led Union County Public Works to seek external solutions to
achieve regulatory compliance. Upon hearing this, Charlotte Water reached out
to Union County Public Works leadership to discuss how they could provide
support while allowing Union County Public Works to maintain control of their
operations.

Charlotte Water has been recognized by national trade associations for their
excellent compliance history and was in a strong position to provide short-term
support to Union County Public Works.

HIGHLIGHTS

Challenge Statement:

Union County Public Works faced
challenges related to aging infrastructure
and budget limitations. These concerns
led them to seek outside aid. Charlotte
Water and Union County Public Works
needed to create a partnership to address
these concerns, serve the community,
allow Union County Public Works to
continue operating their own water
system, and to increase public health
protection.

Partnership Features:

The Charlotte Water and Union County
Public Works partnership is an example of
a temporary ownership transfer. Union
County Public Works and Charlotte Water
entered a short-term partnership, under
an MQU, to address Union County Public
Works' operational issues. Under the
agreement, Charlotte Water took over
operations and management of the
Union County Public Works water system
for three years.

Primary Benefits:

Both water systems have benefited from
the partnership, including receiving
employee training, new mentorship
opportunities, improved water system
compliance, and sustainability of
operations. The partnership also
benefited the community by increasing
protection of public health.

Accomplishments:

Charlotte Water helped Union County
Public Works develop their own
maintenance, safety, and training
programs. Union County Public Works
addressed its compliance issues and is
successfully managing its own
operations. The two water systems
continue to partner and support one
another as needed.

Charlotte Water and Union County Public Works

A Water System Partnerships Case Study

1 Page


-------
Critical Drivers

4 Aging Infrastructure and Budget Issues: Union County Public Works

encountered drinking water and wastewater compliance challenges due to
aging infrastructure, such as several old waterlines that decreased water quality,
and budget limitations. Outdated technology made it challenging to effectively
serve their customers.

4 Maintaining Public Ownership: The two public water systems saw an

opportunity to develop better public-public partnerships by working together.
Charlotte Water believed that the two utilities shared the same goals in serving
their communities. Both water systems would see the benefits of improved
public health and environmental protection for the larger community.

4 Workforce Development: Partnering provided an opportunity for Charlotte
Water and Union County Public Works employees to develop new skills and
learn from one another, while working on new tasks outside of their typical job
roles. Union County Public Works and Charlotte Water realized for both water
systems to benefit from this partnership and help the community, they needed
to combine operations and management for a short period of time. As a result
of the partnership, Union County Public Works addressed the issues they faced
and became a more sustainable public water system for their customers.

Water System Partnerships as a Solution

Water systems across the country are facing a myriad of challenges, including
technical, managerial, and financial capacity issues. Water system partnerships refer
to a range of collaborative activities in which water systems can pool resources,
expertise, and experience. Bringing water systems together through partnerships can
help reduce noncompliance issues, risks to public health, and redundant workloads.
Water system partnerships are informal or formal relationships that help water
systems identify opportunities to leverage benefits that would be difficult to achieve
independently.

Charlotte Water and Union County Public Works realized that a public-public
partnership would provide opportunities to improve Union County Public Works'
infrastructure while strengthening both water systems' workforces. Combining the
water systems for a short period of time, through a temporary ownership transfer
partnership, was beneficial to both water systems and their customers.

Building Blocks of Partnership

After management at Charlotte Water and Union County Public Works met, the two
water systems decided that, on a short-term basis, Charlotte Water would run Union
County Public Works to help rebuild their operations. In December 2013, Union
County Public Works and Charlotte Water signed an interim agreement to begin
discussions and planning. This allowed the two water systems to plan together and
share data and information they may not have been as comfortable sharing if they did
not have the initial interim agreement in place.

Later, after careful discussion and planning, they would set up a more comprehensive
agreement, a Memorandum of Understanding (MOU).

Charlotte Water and Union County Public Works	2 | P a g e

A Water System Partnerships Case Study

CHARLOTTE

W^TER

TYPES OF PARTNERSHIPS

Informal Cooperation:

Coordination with other water
systems, but without contractual
obligations. Informal partnerships
may consist of partners sharing
equipment and agreeing to help
each other with emergency
response management.

Contractual Assistance:

Set up a contract with another
water system or service provider
where the contract and service ulti-
mately remain under the water
system's control. This type of
partnership may include a system
purchasing water from another
system or contracting out
operations and management to
another water system.

Joint Powers Agencies:

Creation of a new entity designed
to serve the water systems that
form it. These partnered water
systems may share system man-
agement, operators, or source
water.

Ownership Transfer:

Merger or mutual transfer of an
existing entity or creation of a new
entity. This type of relationship may
be represented by one water sys-
tem being acquired by another, or
by being connected to another
water system physically, financially,
and managerially.


-------
December 2013

April 2014

April 2014

Partnership
Begins

Fall 2017

July 2018

Ongoing



Interim Agreement

MOU Agreed

CW Begins

CW and

Continue



Signed Between CW and

Upon and

Transitioning

UCPW Fully

Supporting

A

UCPW

Signed

Out of UCPW

Separate

Each Other

A

Charlotte Water completed an evaluation of Union County Public Works' maintenance
needs and categorized their findings into three categories based on the level of
urgency:

•	Critical (e.g., significant repairs to the ultraviolet disinfection treatment
process at one of Union County Public Works' plants),

•	Necessary improvements (e.g., increasing the storage volume of one of the
water tanks to meet peak demand), and

•	Additional recommendations (e.g., expanding one of the Union County Public
Works' plants).

To maintain compliance with federal regulations, critical issues were addressed first,
followed by necessary and then additional recommendations.

In April 2014, the two water systems signed a memorandum of understanding (MOD)
to organize and clearly define the requirements for each water system under the
partnership. The three-year MOU created trust and ensured understanding of the
scope of the partnership before it began. It was important to both water systems that
Charlotte Water was not going to permanently operate Union County Public Works.

To begin the partnership under the MOU, Union County Public Works met with
Charlotte Water operations managers, treatment plant supervisors, and water
operators to create a plan for transition. Union County Public Works employees
attended trainings on sampling processes, evaluating treatment plants, supervisory
control and data acquisition systems, and updated technology. Charlotte Water also
provided an experienced maintenance manager and three mechanics to work at
Union County Public Works facilities. Other Charlotte Water employees periodically
helped with specialized tasks.

During the temporary ownership transfer partnership, all Union County Public Works
employees became Charlotte Water employees and received the same employee
benefits packages. This helped combine the two water systems and create a smooth
transition in and out of the temporary ownership transfer arrangement. Additionally,
Charlotte Water's business employees helped in the transition, as they provided
trainings on organizing payroll and general administrative tasks.

To keep the water systems in constant communication, Charlotte Water met with
Union County Public Works management once a month to complete a monthly status
report and discuss water system activities and challenges.

In their MOU, it was required that Union County Public Works notify Charlotte Water
one year in advance when they were ready to transition out of Charlotte Water. In fail
of 2017, after three and a half years, Union County Public Works approached
Charlotte Water about being ready to transition back to managing its water system
independently. When Union County Public Works was able to achieve compliance on
their own, Charlotte Water made the transition out of Union County Public Works by
July 2018 To facilitate a smooth transition back to two distinct water systems,

CHARLOTTE WATER -A
HISTORY OF EXCELLENCE

Charlotte Water has received
various National Association of
Clean Water Agency (NACWA) Peak
Performance Awards; two of their
plants received platinum awards
and the remaining received gold or
silver awards. They have also been
recognized by the Water
Environment Federation (WEF), the
Water Environment Research
Foundation (WERF), and the Water
Reuse Association, as a Utility of the
Future.

Installing a large diameter pipe fitting.

Charlotte Water and Union County Public Works

A Water System Partnerships Case Study

3 Page


-------
employees could choose which water system to work for permanently. Since benefits
packages were consistent, employees could pick the best career option.

Best Practices and Successful Strategies

The partnership was a success mostly because Charlotte Water and Union County
Public works utilized a formal partnership agreement and incorporated key players to
achieve their goals.

A Formal Partnership Agreement

Any written arrangement, such as a contract or MOU, can help ensure the
partnership's success because it provides;

4 Clarity: Charlotte Water and Union County Public Works (including leadership,
employees, and the legal department) clearly understood how the partnership
would affect each water system's operations and management before the
partnership began. This provided a clear guide to navigate the transition and
combination of operations.

4 Trust: Due to the effective MOU, the water systems trusted one other. This
partnership was just the beginning of a relationship between the two water
systems; each water system now has a neighbor they can depend on in the
future.

4 Communication: During the partnership, there were arising challenges that
needed to be addressed. For example, there were necessary infrastructure
improvement tasks which were not realized until Charlotte Water began
working at the water system (e.g., a Union County Public Works oxidation
ditches mixer needed to be replaced due to an ineffective screening system).
Effective communication and strong leadership from both water systems
allowed Charlotte Water and Union County Public Works to address these
unforeseen issues efficiently and effectively.

Key Players

The Charlotte Water and Union County Public Works partnership was successful, in
part, due to engagement with these key players:

*	Water System Directors: After Union County Public Works reached out to
private industry for aid, Charlotte Water's director approached Union County
Public Works to help. The water system directors worked together to create a
partnership that benefitted everyone.

*	Water System Managers: When Charlotte Water began running Union County
Public Works' operations, they sent managers who were known to have strong
mentorship and training skills to work at Union County Public Works. This
helped the transitions run smoothly and built trust between employees.

Reviewing engineering plans on site.

CHARLOTTE WATER AND
UNION COUNTY PUBLIC
WORKS'MOU

The MOU was crucial to the success
of the partnership, as it clearly laid
out the requirements for both
water systems. Well-defined
definitions were important to
designate each system's roles and
when Charlotte Water needed
Union County Public Works'
approval before moving forward
with a given task. Having a mutually
beneficial and agreed-upon MOU in
place created trust and open
communications between the
water systems.

Charlotte Water and Union County Public Works

A Water System Partnerships Case Study

4 Page


-------
Funding

Under the interim agreement, Union County Public Works paid a monthly fee for
Charlotte Water's services to cover the management time. Once the formal MOU was
in place, Charlotte Water calculated a base compensation that would be paid based
on the normal operating costs at Union County Public Works. The water systems
negotiated costs per month based on this value and Charlotte Water's baseline for
water system operations.

To ensure Charlotte Water customers would not be impacted by the partnership
costs, partnership activities were kept separate from Charlotte Water's operating
budget.

Partnership Benefits

Water systems can achieve significant benefits through partnering. Charlotte Water
and Union County Public Works gained valuable knowledge and built relationships
that can be utilized in the future. Forming strong connections with neighboring water
systems benefits the communities, employees, and the water systems. This
partnership has helped provide both water systems with:

4 Increased Communication and Relationship Building: Charlotte Water and
Union County Public Works continue to ask one another for support and
assistance as needed.

4 Workforce Development Opportunities: Charlotte Water employees were able
to take on more leadership roles during the partnership, increasing job training
and promotion opportunities.

4 Updated Infrastructure: Aging infrastructure was one of the main reasons
Union County Public Works' water system was struggling. Through the support
of Charlotte Water, they were able to update and replace key infrastructure
components such as the expansion of a water storage tank.

4 Improved Water System Operations: Union County Public Works became a
more efficient water system because of increased communication, improved
relationships, opportunities for workforce development, and improved
infrastructure.

4 Improved Compliance with Federal Regulations: Union County Public Works
was able to protect public health by addressing maintenance needs, which
helped improve compliance with federal drinking water regulations.

4 Increased Operator Certifications: Before the partnership, most of the Union
County Public Works employees were Grade II operators. Through partnering
with Charlotte Water, they gained enough experience and training to be eligible
to sit for the Grade IV operator exam, the highest level of water operator
certification. By the completion of the MOU, all remaining operators had
obtained Grade IV certification.

Worker performing maintenance on a
sewer.

Installing new mains including a hydrant
and valves.

Charlotte Water and Union County Public Works

A Water System Partnerships Case Study

5 Page


-------
Learning from the Charlotte Water and Union
County Public Works Partnership

Charlotte Water and Union County Public Works discovered that conversations early
in the partnership process created the conditions necessary for success.

Reach Out and Ask

This partnership has demonstrated that public water systems and their communities
benefit greatly when a water system reaches out and asks for help. These
opportunities improve public confidence that their public water systems will work
together to protect the environment and public health.

Be Clear and Upfront

Having a clear agreement, in this case the MOU, was very important to keep the
partnership organized and transparent and allowed the water systems to have upfront
conversations about their needs and concerns before proceeding with changes to
management structure and infrastructure. While creating the MOU required time,
planning, and resources, these efforts were rewarded with a successful partnership
that allowed Union County Public Works to ultimately maintain control of their water
system and better serve their customers.

INTERESTED IN LEARNING MORE ABOUT WATER SYSTEM PARTNERSHIPS?

Water system partnerships can help water systems overcome challenges including
aging infrastructure, compliance challenges, and limited technical and managerial
capabilities. Partnerships provide opportunities to collaborate on compliance
solutions, and operations and maintenance activities, which increase capacity and
enable water systems to provide safe water to their communities.

To learn more about water system partnerships like the Charlotte Water and
Union County Public Works partnership, visit the EPA's Water System
Partnerships website: https://www.epa.gov/dwcapacitv/water-system-
partnerships.

RESOURCES

To learn more about the Charlotte
Water and Union County Public
Works partnership and other water
system partnerships, follow these
links to online resources:

Charlotte Water's Website

Union County Public Works'
Website

EPA Water System
Partnerships Website

Workers prepare for pipe lining.

Office of Water (4606M)

EPA 816-F-22-006

April 2022

Charlotte Water and Union County Public Works

A Water System Partnerships Case Study

6 | P a g e


-------