Water & Sewer Unification Committee (Committee) was tasked with the development of a plan to unite the water and sewer systems of the City of Winchester, Frederick County Sanitation Authority and the Frederick-Winchester Service Authority. The goal is to provide for “ . . . more efficient and effective deliveries of local government services to the citizens of Frederick County and the City of Winchester . . .” as outlined in the Winchester-Frederick County Unification Steering Committee’s Mission Statement.

The Committee consisted of: Jeff Buettner, City of Winchester; Shep Campbell, City of Winchester; Richard Crane, Frederick County; Perry Eisenach, Director of Public Services, City of Winchester; Gene Fisher, Frederick County; Wellington Jones, Frederick County Sanitation Authority Engineer; Jim Longerbeam, Frederick County; Jesse Moffett, Director of the Frederick-Winchester Service Authority; Robert Mowery, Frederick County; and, John Schroth, City of Winchester.

The Committee met six (6) times. Meetings were well-attended with informative presentations and open dialogue. The Co-directors of the Western Virginia Water Authority, Roanoke, Virginia, attended the Committee’s April 25 meeting. Their presentation informed the Committee of why and how the City of Roanoke and Roanoke County combined separate water and sewer systems into an authority benefiting the region.

Inventories of existing resources including water sources, treatment plants, storage facilities, capacity of said resources, distribution lines, pump stations, valves, service lines, meters, sewer lines, plus the age and condition of this infrastructure were reviewed. Current and required future connections of the systems were inventoried as well as capital infrastructure. Operation and maintenance needs of existing systems and projected new customer demands for resources were also discussed. Financial statement audits, as of June 30, 2006, were provided, reviewed and consolidated.

Early on, in fact at the first meeting, the Committee unanimously agreed that a consolidated system operating as a regional water and sewer service authority was the appropriate structure. Additionally, it was decided to focus primary efforts on the governing/organizational structure not infrastructure.

One may well ask, “Why are we doing this?” Simply stated, better planning on a regional basis of the sources and uses of a precious and valuable natural resource with numerous short and long-term infrastructure needs. An authority would be in a better position to address the water and sewer needs of the region rather than what’s best for one municipality or another. We should not be competing with one another, but, cooperating. Water and sewer issues are multi-jurisdictional. The services provided do not differ because of jurisdictional boundaries. Capacity and resources are determined by the watershed.

The most appropriate way to organize a multi-jurisdictional water and sewer operation in Virginia is with an authority. An authority can be formed whether or not the governments consolidate. The name of the authority should be generic promoting the region while encouraging other localities to join in the future. Existing City of Winchester and Frederick County Sanitation Authority debt would become debt of the regional authority. Authority debt is not an obligation of either jurisdiction, and, the authority can incur debt without affecting the local municipalities’ debt ceiling.

PROJECTED BENEFITS
• A regional system provides for more dependable delivery of water and sewer services
• Combining water sources enhances the capability to meet peak demands and continue service during droughts
• A single billing and collection system will provide cost savings
• Rate structures can be established to be uniform for all customers
• Larger customer base lowers overhead costs for each customer
• All current personnel will be employees of the regional authority, thus not competing for the same labor force
• Larger workforce enhances coverage for emergencies and when employees are out
• Community will share the same regulations, public announcements and notices, including drought restrictions
• Compliance issues will be uniform across the system
• Existing excess water sources will be utilized deferring outlays needed to develop additional sources
• The City’s approximately 4 million gallons per day of unused raw water capacity can be utilized to meet anticipated growth in the County
• Revenue generated from County growth would provide for a significant amount of capital income to assist with infrastructure repair/replacement of the City’s old system
• City debt for water and sewer infrastructure would be transferred to the authority
• City surface water source will provide for base or average daily demands while the County’s ground water sources will provide for peak demands creating redundancy for continuity of operations
• Coordination of the size of lines and interceptors
• Community, industry and other jurisdictions conducting business with one entity, an authority.

PROJECTED CHALLENGES
• Commitment of local governments
• Acceptance of an authority organizational structure
• Employee buy-in
• Conversion of employees from different personnel systems into one ensuring equitable treatment of compensation, benefits and classifications
• Location of administrative offices
• Concern of each jurisdiction paying for the other’s needs, i.e., City’s aging infrastructure and County’s growth
• Currently, the City general fund relies somewhat on utility fees

The Committee recommends the following:
ORGANIZATIONAL STRUCTURE:
A regional water and sewer service authority consisting of seven (7) members, preferably none who hold office. Three (3) to be appointed by the County, three (3) by the City, and, the seventh member selected by the six members of the authority. Members to serve four (4) year terms, with a two (2) concurrent term limitation. The inaugural board would be appointed in staggered terms. Initially, the authority would be managed by the current executive directors as co-directors. Department/Divisions would consist of water operations; water pollution control; utility line services; finance and administration; and, engineering. Some services could be contracted out to the City, County or a third party.

HUMAN RESOURCES:
All current personnel of the Frederick County Sanitation Authority, the Frederick-Winchester Service Authority, and City Public Utilities will become employees of the regional authority.

The authority would be responsible for billing and collection. For the City this function would shift to the authority also, but, employees in this area could remain City personnel.

FINANCES: It is the opinion of the Committee that the initial operating budget of the authority will not vary greatly from the separate budgets of the existing entities. The primary goal is to manage in the most efficient and effective way utilizing the watersheds’ water and wastewater disposal potential with a multi-jurisdictional organization. The Western Virginia Water Authority did save approximately two percent in its first full year of operation as compared to the previous year’s combined City and County budgets.

There will need to be a phase-in period financially to equalize rates. This would also allow the City time to adjust to not using utility fees as general fund revenue. The Western Virginia Water Authority chose six (6) years.

Title to all property in the City and County pertaining to water and sewer services would be transferred to the authority.

An initial steering committee made up of the County Administrator; City Manager; Director of the Finance Departments of the City and County; Executive Director of the Frederick-Winchester Service Authority; the Frederick County Sanitation Authority Engineer; Director of the Public Services Department of the City of Winchester; and City and County attorneys is recommended. Principally, this steering committee would develop the Operating Agreement under which the authority would be formed and conduct business.

This process worked very well in Roanoke. The Roanoke and Roanoke County Steering Committee agreed to three guiding principles: 1. Equal representation 2. Pooling of assets for the common good 3. Equalization of rates over an appropriate time period.

We suggest that the steering committee work closely with employee teams to create a vision of an enhanced quality of life through regional cooperation, with the effective use of technology and resource management and the protection of natural resources produced by skilled and motivated personnel.

An authority will better serve our region with enhanced efficiencies of operation and a more effective use of resources. Rates will be uniform throughout the entire community. Additionally, new and existing industry, people relocating, even outlying jurisdictions will be able to conduct business with one entity.

The unification of water and sewer services for the City of Winchester and County of Frederick is absolutely doable. Open and honest dialogue with integrity and a commitment to seeing this project through are of critical importance.

One final note . . . the Committee initially defined the region as Winchester and Frederick County. In the future it is suggested that the region be expanded beyond this original definition to include other municipalities.

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