Commissioners Approve Agreement with City of Charlotte to Operate Wastewater Treatment Facilities

MONROE, N.C., April 23 -- Union County issued the following news release:

The Union County Board of Commissioners on Monday approved a multi-year service agreement with the City of Charlotte to have its Utilities Department (CMUD) operate and maintain the county's five wastewater treatment facilities.

Under the agreement, the City of Charlotte will provide continuing operation and maintenance of Union County's facilities and will offer employment to the county's existing employees working at the facilities at equivalent positions and comparable salaries. There are currently 16 positions at the county's wastewater treatment facilities and nine of those positions are filled. Union County will maintain ownership of the facilities and retains complete control of how the facilities are utilized, their planned expansion and upgrades and any diversion of flows from one facility to another to optimize utilization of the facilities.

"This is not a merger of our systems, a sale of our wastewater facilities or privatization of our facilities," said Executive Director of Public Works Ed Goscicki. "The City of Charlotte will have no equity interest in the facilities and is contributing no capital as part of this agreement."

The agreement will allow Union County and CMUD to standardize operation and maintenance procedures, fill vacant plant management positions and increase the experience level of Union County's relatively new staff. Charlotte will provide a high level, experienced operations manager who will oversee the day-to-day operations.

Union County will pay a $2.27 million fixed annual fee to CMUD to cover personnel, laboratory testing, preventative maintenance, overhead costs and insurance. The fee will be adjusted annually based on salary costs. The county will also pay $2.14 million in variable costs for electricity, chemicals, corrective maintenance and biosolids disposal. There will be no water and sewer rate impacts.

Union County will be responsible for collection system integrity, rate setting, the billing system, customer relations, regulating discharges into the collection system, integrity of the plants and capital improvements. CMUD will be responsible for the day-to-day operations and maintenance, improving operational efficiencies, providing adequate and experienced staff, ensuring plant discharge water quality meets regulatory standards and employee development.

"This is very similar to existing facilities maintenance contract that the county has had in place for more than ten years with an outside private company to operate and maintain the county's

office buildings," Goscicki said. "The county still owns the buildings, decides how they are utilized and defines the level of service it expects."

The Charlotte City Council is scheduled to consider the agreement at its April 28 meeting. If approved, the contract will become effective on June 1.

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