Stronger Together: Central Iowa Water Works

Abstract

In the January/February Journal AWWA, I discussed the necessity for future regional water utility solutions. I referred to how the AWWA Water 2050 initiative anticipates regional collaborations as a key to efficient water resource management, financial economies of scale, and collaborative governance. And I promised to share a current case study of a regional solution with you in this edition of the Journal. I am happy to do just that.

Less than a year ago, and after a decade of careful planning, Central Iowa Water Works (CIWW) was formally founded (April 11, 2024). This new regional drinking water authority includes 12 local agencies (founders) who now share the governance for water protection and responsibility for ensuring the region's future quantity and quality of water. At the same time, each of the 12 founders have maintained their local identity and independence.

I asked the new organization's leaders what drove the creation of CIWW; the response was, in short, to ensure water sustainability for the partnering communities. The focus is on water quality and quantity, now and into the future, with equitable access for each community. This goal is supported by a comprehensive study that maps out CIWW's water future supply and treatment to the year—you guessed it—2050.

CIWW operates as the water wholesaler to each of the 12 founders. For this to happen, the founders agreed to two important transactions. First, all the source water and treatment assets previously owned individually by the founding agencies were transferred to CIWW. Second, with the transfer of assets, CIWW acquired any associated debt. As a result, the supply and treatment assets are now more versatile, and payment of the refinanced debt flows equitably to those who use the assets and to future growth.

A common showstopper in the creation of a regional solution is the loss of identity and control for the partnering regional collaborators. That is not the case for CIWW. While CIWW provides the founders with water, they are each responsible for delivering the treated water, through their pipe system, to their customers. They continue to manage communications, billing, customer service, and other water delivery and customer needs. In short, none of the founders have lost their identity or customer relationship, and all of them have now gained ownership in CIWW.

Another concern I hear related to regional collaborations is the loss of a utility's workforce. Again, that is not the case for the founders. While CIWW now owns the treatment plants, the communities that originally owned the plants still operate them under 20-year operating agreements. CIWW reimbursed them for their costs associated with operation.

One of the greatest advantages of the stepwise process used to create CIWW was the commitment of local officials. Their commitments included learning about the region's water supply, how it was delivered, its quality, and risks. They had opportunities to visit all the treatment plants and understand the details of the region's future investments in these facilities to the year 2050. With these experiences and background, these public officials now have a stronger understanding of how water works and all critical water assets serving their communities. Importantly, they share a collective strong voice when speaking about water quality and advocacy.

In October 2024, the CIWW board hired Tami Madsen as its first executive director. Tami had spent the previous five years leading an established wholesale water utility in North Dakota, which is similar in structure and purpose to CIWW. When I asked Tami, “Why this job?” without hesitation she said, “When I heard about the opportunity, I was interested. And when I learned how much everyone wanted to do it—that is, make CIWW successful—and how they were carefully planning for the future, I knew this was the position I wanted.”

Tami shared that a couple of water systems in the region had opted to not join CIWW. When I asked her if this was a concern, she wisely responded, “The creation of a regional solution does not have to be perfect; you should not give up on the vision and goals if everyone is not in.” She went on to say, “While you may not get 100% participation right away, a good regional solution will leave open the option to join later because, ideally, you want everyone in the region to join.”

CIWW is a model of how regional collaboration can lead to a stronger, sustainable water future. It is a perfect example of how forward-thinking today can provide lasting strategies that benefit a community now and in the future. Simply put, the CIWW founders and their customers are stronger together. You can learn more about CIWW at ciww.gov.