Archive

funding

The Way of the Wolverine

January 30, 2013
Climate, communciations, Environment, finance, funding, infrastructure, Leadership, management, Marketing water, planning, sustainability, water sewer management
Leave a comment

Last week, the headline in the morning newspaper and on-line news outlets report the most recent suggestions from the House of Representatives to cut the federal budget deficit involves major cuts to domestic programs.  No surprise there.  Among those that are proposed to be cut significantly is infrastructure investments.  Infrastructure is what allows our country to thrive.  Without water, sewer, roads, airports, ports, etc, the economy could not be as robust as it has been, and will not achieve its greatest output.  The fact that our elected leaders don’t see infrastructure investment as a high priority is problematic.  More problematic is that this appears to be an ongoing position of some in Congress, meaning there is likely more of this view at other levels of government.  But it ignores that facts.  This country has always grown after investments in infrastructure, not before.  The federal government has been involved in infrastructure since the beginning of the country, and actually accelerated its involvement after WWII, including water and wastewater upgrades starting immediately after WWII.  The monies to improve water and sewer systems increased after the passage of the Clean Water and Safe Drinking Water Acts.  Recall that President Nixon, a conservative republican, sponsored the new federalism concept that greatly expanded the amount of federal block grants to local governments. In part this was due to the perceived need to help local governments catch up with improvements needed in connection with new federal rules, like the Clean Water Act and Safe Drinking Water act.  The high point in federal aid for infrastructure.

The trend was reversed in mid-1980s, when most of the grant programs were converted to loan programs, with the idea that the federal government would wean the utility industry off federal entitlements within 30 years.  The current concern over budget deficits and taxes further weakens the prospects of large scale federal flow –throughs to assist local governments with infrastructure upgrades, water and sewer included.  Given that the current water and sewer needs exceed over $1 billion in the next 30 years, and current funding levels are expected to derive half that amount, the infrastructure needs gaps will continue to widen, with potentially more common failures in piping systems, and impacts to local economies.  It is a viscous circle that needs to end, and one that can only have negative long-term effects for us.   In part the issue is political will, but also the failure of non-elected executives to fully grasp the issue, and adopting the way of the wolverine – to fight and scrap, climb, scramble and investigate new means to defend what is their’s.  The analogy is that utility personnel, and the upper management they report to, need to take “ownership” of their utilities infrastructure, and urge the decision-makers to do the same.  We need to defend our infrastructure, and we have the means to do it.  The time may be right to push this issue locally.  The economy is looking up.  Property values are starting to climb, and commercial activity is slowly creeping back.  The result will be more tax money available to general funds, many of which have been living large off the utility system.  Seems like this would be a good time to reverse that trend.

The failure to do so creates difficulties, not unlike those faced by wolverines today.  The wolverine suffers from effects placed on it by others.  There are only 500-1000 in the United States as opposed to the many that were here before hunting, farming and other development.  A second “way of the wolverine” is decline because they cannot fix the problems caused by others.  Unlike the wolverine, we have the power to prevent our decline.  We need to do so.

Outlook for Utilities is Up, but Leadership needed for Infrastructure Investments

January 13, 2013
communciations, finance, funding, infrastructure, Leadership, management, Marketing water, planning, sustainability, water sewer management, water supplies
1 Comment

The magazine Utility Contractor suggests that 2013 may be much better than 2012 from a utility construction perspective.  In Fact they suggest a 13% increase in utility construction, although the bulk of that is in the power industry, not the water industry.  Their projections are for water utility infrastructure spending to remain roughly constant from 2012, a slight uptick from the recession years.  At the same time, the US water infrastructure bill was suggested by Public Works magazine to exceed $1 trillion over the next 30 years, requiring over $30 billion to be spend annually on upgrades.  This is more than double their estimates of current funding..  Many of these upgrades are pipe.  Much of the piping infrastructure in America is over 50 years old, and the condition may be unclear (unless you dig it up, you don’t know much).  But piping projects are hard to fund, because no one sees the pipe, only the failures.  As time goes on, the condition continues to deteriorate.

Much of the reason that water utility infrastructure is not expected to increase is that revenues are not expected to climb significantly to allow for the expansion of capital funding despite historically low borrowing rates and lowered costs of construction.  The reason:  many public sector utilities, which accounts for many of the larger systems, have been caught in one or more of several traps:  deferring capital to pay current expenses without raising rates, revenue losses from defaults on housing, use of utility fees to overcome ad valorem tax losses in the general fund, or political pressure to reduce rates.  All four cases can be crippling to the utility because it not only removes revenues today, but likely will result in a continuing practice in the future.

The good news in the revenues are rising, and that unemployment is down nationally despite the loss of 276,000 state and local jobs in 2011.  But since governments tend to lag the private sector in recovery, and we now have 34 straight months the private sector adding jobs, governments should start to see improved conditions in 2013.  Salaries are up, revenues are up a little and jobs are being filled, but what does this mean to infrastructure? The question is why the projections are for no increase in spending.  Water and sewer utilities owned by governments, are caught in the middle of the political process which lacks leadership.  These utilities are set up as enterprise funds, whereby revenues are gained from provision of a measurable service.  As a result they are designed to be operated more like a business, than a government.  But if your utility funds are altered through the political process, this can frustrate the efforts to run an efficient and effective business-like organization, which may mean the status quo, which is not investments in infrastructure beyond absolutely essential and emergency measures.  The question is where is the leadership to reverse this trend?  Unfortunately the political leadership focus is on elections, 2 to 4 years out, not the 20 or 30 year life of the utility’s assets.  As a result, short term benefits sacrifice long-term needs.

I

If you are a person who wants to be a leader, you also need to think about the long-term impacts of your plans/policies and actions.  How will they be perceived 10 or 20 years out?  How will your decisions impact the course of the organization?  For utilities how has your tenure added value to the utility, whether that value is treatment capacity, public health protection or reliability of the system.  And how is it measure, since monetary value is not the only means to add value. Keep in mind no one remembers the guy who did not raise rates, only the person who did not plan to replace the infrastructure that failed. That’s a legacy leadership issue.  One thing many people do not understand is that while we live in the moment, it is how people view our actions afterwards.  It is why it is so easy to see leadership after the fact, but sometimes very difficult during the event.  The question is, how to we overcome the restrictions caused by the 2008 recession?  That’s where leadership comes to play.

Leadership Part 3 Examples?

December 24, 2012
Climate, Environment, finance, funding, infrastructure, Leadership, management, Marketing water, planning, sustainability, Uncategorized, water sewer management, water supplies
Leave a comment

Leadership Part 3

One of the themes in the prior two posts on leadership was that leaders are defined by a vision, the people who follow the leader and the ability to market the vision.  We often fail on the marketing end, especially in dealing with water and sewer infrastructure issues.  We know the infrastructure is in poor condition and that billions, perhaps trillions are needed to upgrade the system to serve our needs.  But pipes are hidden and parks are far more glamorous, so guess what gets funded?  At least until a failure occurs.

I teach an elected officials class for water/wastewater issues.  The all acknowledge that a failure o f the utility system is a huge issue and the electorate and elected officials are often looking for “the cause” or someone who is responsible.  In other words, someone to fire.  It is every utility director’s nightmare, and a nightmare for many elected officials as well.  Yet a 4 hour outage in a year is a 99.96% success rate.  My students would be raising hell with the dean and president if I failed them for only 99.96% correct answers.  And rightly so.  Why are utilities any different?  Public health sure, but the systems can fail, and the condition that many are in warrants far more attention to potential to fail unless we can market to the public the need to invest.  Yet how many city managers, elected officials and finance director acknowledge any accountability for failures?  The investigation into the Walkerton Ontario failure indicated that the employees who falsified records, the governing body, the water advisory body and other officials all the way to the province had culpability in the failure of the system that made half the town sick and killed a number of residents.  Utility folks need to market the need to protect public health better, to make the public understand.

Marketing is a difficult skill set.  I can tell you sales in not one of my skills.  Common among engineers who tend to be more technical in nature, letting the data guide us.  Even so, we have successes.  Think about the City of Los Angeles.  The only reason large numbers of people can live in LA is the aqueducts that were started back in 1900s by William Mulholland under the guidance of Mayor Fred Eaton.  The vision was to grow LA but the limitation was water supplies.  The aqueducts sparked water wars (think Chinatown, the movie), and developed through the 1930s.  Hetch Hetchy, over 100 miles east, was established as San Francisco’s water supply back in 1913 as well.  The reservoir system continues to supply San Francisco today.  Denver Water acquired and/or constructed reservoirs and tunnels to the west side of the Rockies for water supplies prior to 1940, realizing that sustained growth in the Denver area was not available east of the Rockies. .  Pinellas County and Orange County California started projects to reuse treated wastewater for irrigation of private yards, and aquifer recharge in the 1970s to sustain their supplies.  Sustainability of water supplies, management of water sources including wastewater and stormwater as a part of an integrated program and sustaining the financial and infrastructure condition of the utility are the long-term priorities.  We need to find those visionary projects and people today.

So here’s the assignment.  Let’s find where those leaders are today, and identify what makes them a leader.

Leadership Part 2

December 20, 2012
Climate, communciations, Environment, finance, funding, infrastructure, Leadership, management, Marketing water, planning, sea level rise, stormwater, sustainability, Uncategorized, water sewer management, water supplies
1 Comment

Among the many things I do is work with college seniors as they get ready to graduate and hit the job market.  The changes you use in many of these students over that last year in school is often significant, and in some cases remarkable.  Different students grow differently and the potential starts to appear.  Some gain confidence in their skills and begin to grow into the profession.  Some of these students are likely to make good leaders in the field in the future.  But trying to guess which ones and why it is often a challenge.  However I want them all to have some concept of what leadership is all about.  For many of them, they will end up in the water/wastewater/stormwater field.  They are going to have to deal with tough issues like rebuilding deteriorating infrastructure, sea level rise, climate changes, stressed water supplies, energy demands and a more demanding electorate.  They will recommend increasing water and wastewater fees.  But will they have the skills to encourage decision-makers to move forward with the needs of the system.  You see, that’s where leadership comes into play.  Often it is little things that set things into motion.  Our engineers go into the world with a technical skills et, that ability to learn to solve problems with solutions.  We try to encourage them to be creative.  An assigned reading is “The Cult of the Mouse” by Henry Caroselli, who urges creativity above profits in the workplace.  Mr. Caroselli is right in that it is creativity that allows us to come up with innovative solutions, the ones that change how we live.  It is also where the patents and economic opportunities exist.  America rose to greatness in the 20th century in large part because of automobiles – we figured that out and it made some many things possible.  Computers became common place in the latter part of the century.  We use the technology for both in the water/wastewater/stormwater industry.  In fact they have made us so much more efficient that costs have not climbed as fast as they might have, which is why cable tv is normally more expensive than your water bill.  Which one do you need to live?  My hope is that today’s students figure out energy solutions that will carry us forward as a world leader in the 21st century.  Those alternative energy options, greater efficiency of current technology.  Each will allow the utility industry to improve it’s efficiency further.  The City of Dania Beach built the world’s first LEED Gold water plant.  That took a little vision on the part of the utility director Dominic Orlando.  And a cooperative team of consultants and students.  When we give these projects to young people we can be surprised because they often don’t know that “that’s not the way we do it.”  Well that’s exactly what Mr. Caroselli said.

So we look for leadership.  Creativity, innovation and the “Can-do” mentality are part of leadership, but not all.  There is that ability to set a vision, like Mr. Orlando did in Dania.  There is the ability to convince decision-makers of the wisdom of an idea, as opposed to doing like we always did to make the shareholder happy as Mr. Caroselli noted.   Selling innovation is often the hard part because that’s were the costs are.  But there is more.  Often the selling of a good idea is difficult.  You can be ridicules by the status quo.  Many ideas are just lost in the shuffle because they never receive a voice.

Leadership is often not understood at the time it is occurring.  Ok, maybe we figured this out when Lincoln was President, but if you read accounts of his Presidency, the early years are marked with indecision and backtracking before he got it right.  Most of that is forgotten in lieu of the ultimate results.  Many of the issues we face today need real leadership to create a long-term solution.  The “fiscal cliff” issue is a prime example, as it the long-term need for solutions for social security, Medicare and medical costs in general.  The need to fix the infrastructure that made our economy strong should be among those priorities also.  Remember, we don’t remember the councilman, mayor, legislator. manager, director or President who did not raise taxes or water bills.  They do remember those who solved problems

How to Keep Federal and State Economic Issues from Trickling Down to Local Funding

December 8, 2012
communciations, funding, infrastructure, Leadership, management, Marketing water, planning, water sewer management
Leave a comment

One of the ongoing discussions at all levels of government is the lack of funding for many programs as a result of economic difficulties in 2008.  Economic difficulties are nothing new.  We had economic downturns in late 1970s/early 1980s, 1991-1992, 1999-2000, and 2008-2009 as examples, and we have often incurred the same issues.  Unfortunately it appears to the general public that we make many of the same mistakes over and over.  From a federal level we hear the argument about the need for tax cuts to spur spending in the private sector, while Keynesian economists who suggest greater expenditures by government to pull us out of economic difficulty.  Both arguments have their points, but how opposites can solve the same problem is difficult for the public to see.  Perhaps a little understanding of the economic sector and analogies to our personal lives and the water industry would help us.

From the perspective of an ongoing growing economy, the goal would be to have the consistently increased gross product, growing at a reasonable rate, just as it seems reasonable for our salaries to rise at or above inflation rates and our ability to “bank” water for those growth spurts are common pursuits.  From a national perspective, you know you are doing well when your economy grows just over the rate of population growth.  When it grows a lot faster, economists worry about overheating.  These high growth rates have occurred as recently as 1996-1999 and 2002-2007, but are often associated with economic “bubbles” which means that a specific sector seems to be growing really faster, creating a demand for investments that further drive up the perceived value.  The benefit to utilities and governments for these growth spurts was that revenues generally grew faster than the costs.

 

Of course bubbles are speculative, and at some point investors realize the value is not there and stop investing.  The sector collapses wreaking havoc on the economy, resulting in the economy not growing at a rate exceeding the population growth.  In these cases, the revenues to fund those services people expect, grow slower than population or may even decline as they did in 2008-2009.  Government has not been able to deal with these changes well, but from a personal perspective, these ups and downs are common in peoples’ lives, and we try to deal with them by putting money away in the proverbial “savings for a rainy day.”  Businesses have historically tried to do this as well and utilities try to secure water sources for the same reasons.  However, many governments have not, and it is worth trying to understand why not, the impact it has today and how to resolve the issue going forward.

Two things appear to drive the issue, and they are related to the two schools of thoughts on economics.  First there is a tendency to spend at the level of your revenues.  People, companies and governments all do this.  So in good times, our expenses often rise to match revenues, partly for catch-up purposes, but partly simply because there is more disposable income.  When revenues greatly exceed expenditures, there can be a tendency by utilities and governments to reduce their revenues by cutting rates reducing taxes and the proverbial thought that “people can better manage money than government.” We saw this in 2001 after the federal government finally balanced the budget and started creating surpluses (that could have been used to pay off some of the accumulated debt, but that’s an entirely different story).  Many states saw the same phenomenon (Florida is an excellent example).  However this thought process is akin to a person who goes to his or her boss and asks them to reduce their salary because they are accumulating too much money.  No person ever does this.  Instead we bank that money for the “rainy” day.   So does it make sense for government to cut their revenues in the surplus times?

Consider that down times follow surplus times.  If revenues are reduced during times of plenty, there is no savings for that “rainy” day.  As a result the current path leads to a tendency to suggest cuts in expenses in down times, but this actually exacerbates the economic problem.  Income decreases and because demand is down, prices fall (basic supply and demand).  As expenses decrease, the economy contracts, which means even more people are affected – it can be a vicious circle.  Economic disruption creates a negative impact on government revenues, sometimes disproportionately.  So by reducing revenues in the surplus times, actually compounds the impact of economic downturns, by eliminating the potential for expenditures from savings, requiring spending from borrowing.

At the federal level, we hear the tax cuts versus more spending argument, but neither addresses what individuals have long known – we need to bank surpluses, not ask for pay cuts or extensively borrow in lean times.  The concept of Keynesians is that government should make up the difference between the private and public sector spending to maintain the level of spending in the total economy, but Keynes did not say that is should all come from borrowing.  There is an implicit assumption that some of this should come from savings, just like it does for individuals.  Heavy borrowing can complicate future revenues by increasing future revenues needs, the other side of the argument.  Trying to make up for revenue shortfalls increasing rates and fees when the funds of people and corporations are limited, compounds their problem.  The economy may grow to make up for those cuts, but that is a speculative argument.  The results of austerity is evident in Spain, Greece, Italy and Ireland where their economies continue to contract, not improve.  That solution clearly does not work.  That’s like asking for a pay cut and reducing your expenses significantly – you don’t live better and those depending on you  don’t either. Cutting revenues while increasing expenses creates the worst of both worlds and makes future concerns even more of a problem.  The federal conundrum is, well, a conundrum.  Not sure what the solutions are there, but there are no easy choices and few of us have much control of input.

But locally ourselves and our utility systems, are completely under our control.  A modification to the paradigm of economic needs or our utilities for the future of our system is needed.  We should rethink our economic vision for the next cycle to mimic what many people attempt to do.  We need to figure out what our revenues need to be, and plan long-term for maintaining a given revenue flow.  There will be up and down times, but we can plan for these.  We should create policies that denote that revenues in excess of expenditures should be banked for that “rainy day.”  We should control the urge to expand expenses in the good times.  We should then use those banked revenues for the future.  Then when the next economic downturn hits, we have banked revenues that can be used to maintain the level of service to our customers.  We should have a policy on this as well.   The benefit to utilities is that the investment in lean times often comes at a reduced cost (demand is down so prices fall), while providing an economic stimulus locally (more jobs).  The City of Dania Beach’s nanofiltration plant had this benefit – 70 cents on the dollar costs, plus a grant.  100 jobs created.  Policies on generating surpluses and spending them in lean times on projects like this would seem to make things easier for everyone in the future, but to follow such a trek requires leadership, policies, and self control within the organization.

The question is where is that leadership coming from to make these decisions and to resist political expediency?

Creating Expectations

November 7, 2012
communciations, finance, funding, infrastructure, Leadership, management, Marketing water, planning, sustainability, water sewer management, water supplies
2 Comments

We hear the moniker about getting the most out of your employees and staff.  Business books will talk about accountability, as will politicians, but creating accountability requires a first step on the art of management.  In any organization there needs to be a vision of where the organization wants to be in 5, 10 or 20 years.  Then there needs to be  a team of managers who buy into the vision, and implement it by securing employees who can implement it.  But it does not stop there.  You need to set  expectations.  Sounds, easy, but it is one of the issues professional employees especially complain about.  Assigning work tasks and saying “get it done” is not an expectation.  That’s a command.  Commands work in the military, but not so much in private practice.  The command and control types are notoriously difficult to work with, especially in professional and/or creative environments.  Micro-managers fall into this same mode.  The creative/professionals are intelligent and are looking for freedom to solve problems, usually more effectively that they can be told.  Instead, what needs to be done is to create a set of expectations of what will be accomplished and timelines.  Let the creative types and professionals figure out how. Provide them with the resources they need.  If employees understand the expectations, and are given the ability to accomplish the goals, accomplishing them becomes an end in itself – that becomes the goal and their satisfaction.  But does it work?  Well, yes.  I have been in organizations where the stars aligned to have a small group of manager who created and bought into a vision. We set expectations and let people accomplish them.  Always faster, always less cost, and always effectively.  A degree of recognition follows them. The group was easy to spot because they were accomplishing things (I should note that this does come with the price of jealousy among those who prefer to sit on the sidelines and can create some degree of subterfuge there which requires a strong leader to deal with that problem).  Students work the same way – set expectations of the delivery and allow them to develop the methods to solve the problem.  It is easy to see who the good engineers are, and who perhaps will be less successful.

Even easier are city and county managers, general managers and the like.  New officials come into office and six month later they are complaining that the staff and manager don’t communicate with them.  First response is to give them more information, which compounds the problem.  Still not communicating.  Every manager has one of these stories. The problem is that the new folks never revised the expectations from the past.  As a result everyone operates on the last set of expectations, until new ones are established.  If that never happens, well, the conflict escalates.  Someone has to take the leadership role, which creates a quandary with governing boards like the ones utilities commonly deal with because these folks are generally not educated in the intricacies of the operation of the utility, and rarely have any management experience.  They simply do not understand how to set reasonable expectations, to identify what is important to them and what is not, how to delegate, etc.  Until a sitdown discussion of expectations of both manager and the board is developed, the potential for friction will exist.  Some managers are good at recognizing and making adaptation, but most governing bodies are not.  This is why it is important to develop education programs that will encourage the community, which often has better connections to the governing members than staff.  So as utilities, our infrastructure is vital to the long-term development of our communities and to the public health and productivity of our residents.  So how do we make governing bodies understand the need to invest in utility infrastructure when emergencies are not happening?  Realizing we are all busy, we need to keep in mind that outreach is a key to creating that coalition of leadership in the community to advance the utility agenda.  Again a leadership issue and the need to engage the community, something we all too often forget to do.

Cutting costs while keeping the stormwater out

November 3, 2012
finance, funding, groundwater, infiltration, inflow to sanitary sewer, infrastructure, management, sanitary sewer, stormwater, sustainability, water sewer management
32 Comments

Storms highlight the need to reduce infiltration and inflow into the collection system so as not to overwhelm the piping system causing plant damage or sewage overflows into streets, so much of the focus has been on dealing with removal of infiltration and inflow through televising the sewer system and sealing or lining sections where leaks are noted.  However, many miles of videotape show virtually nothing, so significant money is spent to find “nothing.”  Part of this is because “infiltration” and “inflow” are not the same, and storm events do not highlight infiltration nearly as much inflow.

The manholes and clean-outs are required for access and removal of material that may build up in the piping system and for changes in direction of the pipe.  Manholes are traditionally pre-cast concrete or brick, with brick being the method of choice until the 1960s.  Brick manholes suffer from the same problems as vitrified clay sewer lines – the grout is not waterproof so the grout can leak significant amounts of groundwater.  The manhole cover may not seal perfectly, becoming another source of infiltration.  Pre-cast concrete manholes resolve part this problem, but concrete is not impervious either.  While elastomeric or bituminous seals are placed between successive manhole rings, the concrete is still exposed.  Many utilities will require the exterior of the manholes to have a coal-tar or epoxy covering the exterior which helps to keep water out.

Inflow results form a direct connection between the sewer system and the surface.  The removal or accidental breaking of a cleanout, unsealed manhole covers, laterals on private property, connected gutters or storm ponds, damaged chimneys from paving roads, or cracking of the pipe may be a significant source of inflow to the system.  All are potential sources of inflow which can be identified easily during storm events.  The peaking that correlates with the rainfall is inflow, not infiltration since infiltration is part of the base flow that creeps upward with time.  When operators see peaks, this is not indicative of infiltration which is groundwater.  Think inflow.   Inflow causes peaks in run time on lift station pumps, and create potential overflows at the plant.  The good news is that simple, low tech methods can be used to detect inflow, which should be the precursor to any infiltration investigation.

The following outlines a basic program for inflow detection and correction for any utility system.  The order is important, and pursuing all steps will resolve the majority of issues.  The first step is inspection of all sanitary sewer manholes for damage, leakage or other problems, which while seeming obvious, usually surprises.  The manhole inspection should include documentation of condition, GPS location, and some form of numbering if not currently available.  Most manholes have limited condition issues, but where the bench or walls are in poor conditions, that should be repaired with an impregnating resin.

Next is repair/sealing of chimneys in all manholes to reduce inflow from the street during flooding events.  The chimney includes the ring, cement extensions, lift rings, brick or cement used to raise the manhole ring.  Manhole covers are often disturbed during paving or as a result of traffic.  The crack between the ring and cover can leak a lot of water.  The intent of the chimney seal is to prevent inflow from the area beneath the rim of the manhole, but above the cone.

The next step is to put dishes into the manholes.  One might think that only manholes in low lying areas get water into them, but surprisingly every manhole dish that is properly installed has water in it.  Hence assume that all manholes leak water between the rim and cover.  Most collection system workers are familiar with dishes at the bottom of the manhole where they are of limited use.  This is because the dish deforms when filled with water or is knocked in when the cover is flipped.  The solution is a deeper dish with reinforcing ribs.  No ribs, don’t use it.  A gasket is required.

Once the manholes are sealed, smoke testing can identify obvious surface connections.  The normal notifications, inspection and documentation will identify broken or missing cleanout caps, surface breaks on public and private property, connection of gutters to the sewer system, and stormwater connections.  All should be documented via photograph, by associated address and public or private location. The public openings at cleanouts can be corrected immediately.  However, if the cleanout is broken, it may indicate mower or vehicle damage, that can occur again.  If missing, the resident may be using the cleanout to drain the yard.  In either case the collection system needs to be protected.  USSI (http://www.elastaseal.com/about_us.html), located in Venice, FL developed a solution, called the LDL plug to correct those commonly broken or commonly opened cleanouts to reduce inflow.

Notices should then be sent to property owners with documentation of the inflow connections to their property.  This is sometimes the most difficult part of the program due to political will, but it is necessary.  This finishes the inflow correction portion of the project, but one more step will help focus efforts for the second “i”.

The final step is a low flow investigation, which is intended to focus on the infiltration piece of the problem.  Such an event will take several days and must be planned to determine priority manhole to start with and sequencing.

Based on a projected plan and route:

  • Open the manholes
  • Inspecting them for flow
  • Determining if flow is significant.  If investigation of basin will end and new basin will be started.  If flow exists, open consecutive manholes upstream to determine where flow is derived from.  Generally a 2 inch wide bead of water is a limit of “significant” infiltration.

Documentation of all problems and corrections in a report to utility that identifies problem, location and recommended repair.  Identification of sewer system leaks, including those on private property (via location of smoke on private property).

The example in Dania Beach, FL was that the last step indicated that only 15% of the sewer system needed to be televised.  This saved the City almost $1.2 million.  Their total costs is under $1.4 million for all parts of the project, spread over several years and contracts.  Overall the hope is that the inflow and infiltration programs together will save $400,000/yr, a five year payback.  But the key is to insure you get the inflow as well as the infiltration… Otherwise storms will continue to overwhelm plants, creating public health concerns and ruining your reuse program.

Construction industry says it’s looking up? What does that say for utilities?

October 27, 2012
communciations, finance, funding, infrastructure, Leadership, management, Marketing water, sustainability, water sewer management
17 Comments

The most recent discussions in trade journals, on-line and within the industry is that construction starts have begun to trend upward, a good sign that the economy is moving forward.  Since 2008 when the market crashed just after the election as a result of 2005/2006 packaged loan deals (read The Big Short by Michael Lewis if you really want to understand what happened, but be prepared to be irritated that no one has yet to go to jail), the stock market has crept steadily upward.  The problem is that the returns on investments have not trickled down to the majority of Americans except in low wage jobs (no wonder people can’t pay their mortgage and the IRS collects no income taxes from so many people).  But the tide does seem to be turning according to the construction journals.  In part we can thank low interest rates, but more perhaps more importantly it seems that much of the excess housing and commercial space may be decreasing so investors and owners that are looking to a spurt in economic growth in the coming years.  We see rising house prices in hard hit areas like south Florida.  With luck that will translate to jobs (maybe even decent wage jobs), increased tax revenues for local governments, and increased water revenues form of new or redeveloped users.  While the trend may not hold everywhere, the fact that the construction industry is talking about increases in new starts in the coming year, is a clear sign of things to come.  But are we ready?  That’s the big question.

Down here where I live, the 2007-2009 period was one where utilities ere struggling to find water supplies, with many investing in expensive alternative supplies.  Then reality struck and the 2020 demands are more like 2030 or 2040 demands.  The impetus for investment went away (it did not help that the burden was on the current ratepayers).  Those who invested in the 2008-2011 period got the benefit of much lower construction costs (typically about 70% of 2007 costs), but many sat on the sidelines as a result of political demands not to increase rates on current residents, resulting in lots of deferred maintenance.  While few utilities invested on growth related infrastructure, how many invested on replacement and rehabilitation at the lower costs?  Unfortunately, catching up on the backlog did not happen for many of us, which is why ASCE’s annual report card for water and sewer infrastructure continues to show very low grades (D- in 2009 for water and wastewater, a grade that has not improved).  As a result the legacy of the 2008 recession is that an opportunity to improve the condition of our infrastructure while creating local jobs was lost.  Now we will play catch up at higher prices, and higher interest rates (0.25% since June).

So where is the failure?  We complain about leadership at the federal level, but leadership starts at home (to use a cliché).  Local officials were not persuaded by utility personnel to invest in their future.  Aren’t these the same officials that often move to state and then the federal level?  Our failure to persuade them is an indication that our marketing approach to built consensus is not working.  Our ability to coalesce the community to improve itself is lacking, which readily translate to elected officials.  We can cast the blame upon them, but it starts much earlier than the time they make decisions.  In difficult economic times, we need a better approach to selling our product and the need to maintain the systems that deliver our product.  We need our customer to demand the improvements to protect their health.  People just don’t understand the link.  Water is there, so all is good.  When I flush it goes away.  No problem.  But what separates the US form the Third World is our infrastructure, especially our water and power infrastructure.  Maintaining our place in the world requires that we continuously upgrade and maintain this infrastructure.  That means planning ahead, building reserves, and taking advantage of economic conditions favorable to getting the most for our money.  How many of us missed this last opportunity?  We should be looking in the mirror and asking why…

 

PS  Today would be my Dad’s 90th.  We miss you!!

Marketing Water – Why Don’t we do this?!

September 12, 2012
communciations, finance, funding, infrastructure, management, Marketing water, sustainability, water sewer management, water supplies
Leave a comment

A comment I heard recently from an elected official was that it was inappropriate to use public dollars for their water agency to market their water product.  Interesting, and it suggests a major barrier to the development of local utility systems.  The cell phone companies, cable television, bottled water companies and security agencies all market constantly to our customers.  Virtually all of them charge more for their service than we do for water and wastewater.  The costs for all have increased faster than water and sewer.  But try surviving in the desert with only cable tv and no water.

Utilities compete with every other vendor for the same dollars.  They want our customers to value their products more.  They want our customers to divert dollars to them, so they need to increase the value of their products in the minds of our customers.  This is what marketing is all about.  If you cannot show the value of your product, the value diminishes in comparison to other products.  So while the needs for water and sewer systems increase, we see more of our customers’ dollars go elsewhere and the accompanying  demands to control our rates.

Water and wastewater systems must market their product.  Clean healthy water is available to virtually everyone.  People expect their faucet will turn on and provide good quality water, and that the toilet will flush.  They take it for granted, yet much of the world does not enjoy the same quality of consistency in service.  Water service is a commodity, and comes with a cost.

We say we want to operate the utility like a business, and many systems are run this way.  Most charge based on usage (or should).  But we fail to pursue one of the basic tenets of running a business:  marketing our product.  The annual CCR is not a marketing tool.  Water bills can convey messages, but they do not really function as marketing either.  Water conservation programs can help, but here the message is use less, not the benefit of the product.  We simply do not market water.  It is why the bottle water industry continues to grow, despite the fact that public water systems offer water at least as safe and healthy as bottled water, subject to more regulatory oversight, at a fraction of the cost.

So given that utilities, the majority of which are owned by local governments, are operated like a business, why shouldn’t we spend money on marketing the benefits of clean, safe water?  Why not market the benefits of 24/7 service?  Why not highlight the efforts of dedicated employees that ensure the system operates 24/7?  Why not raise consciousness of the water commodity to increase its value in the public’s eye?  The only reason not to market is the benefit competing services.  That does not benefit the public good, nor support the need to recover the costs of service and repair and replacement needs of the system.

Creating a marketing plan, or branding program for your utility is a major undertaking.  DC Water spent year re-branding their system to raise consciousness.  Creating marketing programs to engender success requires multi-media outlets, consistent messages, and vision.  It requires that employees and elected officials be on the same page with their customers.  We need to understand customer expectations of the service to raise value in their minds.  If marketing can sell pet rocks, we can market the value of water.  It is in our best interests to do so.

Communication, like water is a need

September 9, 2012
communciations, Environment, finance, funding, infrastructure, management, Marketing water, sustainability, water sewer management, water supplies
Leave a comment

Water management is a fundamental need for the development of civilizations. Always has been.  If you have any question about this, ask yourself what differentiates the developed world from the undeveloped.  Water supply, sewage management and flood control rank 1-3 among the differences.  Safe drinking water and good sanitation go back beyond the Romans, and is a necessity to insure that the populace, and those performing work are productive as opposed to sick all the time.  At present there are agencies that operate to manage water supplies and drainage, and a few that do both.  Mostly these are regional agencies, which belies the need for local decision making to respond to local conditions.

An example – in 2007/2008 the State of Florida was in the midst of “sever drought.”  The water management agencies spent considerable time and political capital working on water conservation strategies, limiting utility withdrawals, cutting permit allocations and demanding conversions to alternative supplies in the future.  The southern half of the state was hard hit.  Utility customers cut their demands significantly.  Unfortunately the customers’ reward was surcharges to make up lost revenues to overcome large operating shortfalls and potential defaults on borrowing documents.  The short-term implementation was designed regionally, but had significant local consequences that were not considered.

But more interesting was the actual “drought” conditions.  It seems that the hard hit areas were in the central part of the state, not the southeastern coast.   The central part of the state, including the Everglades had received about 60% of the average rainfall, but along the coast, the two year shortage averaged less than 10%, and most residents realized that their rainfall accumulations were not as severe as inland.  Since most of the southeast coast’s water supplies were local, not based on the central part, the local question rose, “why were the water conservation measures required of these utilities and residents? and  Why was this not a locally driven issue?”

The case highlights the fact that while most water resource planning efforts are regional, the impacts occur locally, and often local impacts are not fully considered.   Credibility of the utilities is critical for emergencies or difficult situations.  During this condition, a survey of coastal utility customers found that the customers were better informed on rainfall totals than the regional information provided, which undercut the credibility the local utilities were trying to build with their customers, which impacts future needs for cooperation at the local level.  Something about crying wolf…