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Welcome to Kansas, the bastion of how not to run a state, but claim things are just dandy.  I noted in a prior blog that Kansas has no reserves.  And apparently a $350 million deficit in 2016, a continuing trend for a number of years now.  And bigger deficits to come.  Kansas is the poster child of why cutting taxes a lot does not work.

How did they get here?  The state governor and legislature decided that cutting taxes spurs economic growth.  So if you cut a lot of taxes, you get lots of growth. They cite the Laffer curve, a  totally discredited economic tool drawn on the back of a napkin  by Arthur Laffer at a 1974 dinner to argue why Gerald Ford should not raise taxes.  On the face of it it makes no sense but that has not stopped supply side politicians from using it for nearly 40 years  to cut taxes.  The problem, it is wrong.

Cutting taxes does not spur enough economic growth to make up for the loss in taxes when you go down the Kansas role.  If you s cut them too much, it is really hard to raise them if you run short.  The result is that  economic growth in most of Kansas will be stunted for years due to the lack of investment in Kansans.  Now you would think that Kansans would be up in arms about the poor stewardship by elected officials. But no.  See if you get constant bad news, just stop reporting revenues and deficits.  No news is good news right?  Welcome to Kansas!

http://www.governing.com/topics/finance/gov-kansas-connecticut-budget-news.html

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As 2017 gets rolling, we are set to swear in a new President.  The politics are already interesting.  The question is what will change, when and how.  For example there has been an ongoing discussion of infrastructure bills, but aside from WITAF approval, little clear direction has been forthcoming.  We only know that private sector participation will be encouraged.  Of course virtually all projects constructed in the public sector are constructed by private contractors, so how/if that will change is unclear.

It is also unclear which industries will be affected.  There are already comments about not pursuing he renewable energy opportunities  – China sees 13 million jobs in the coming 5 years as their economy cranks up to meet the needs.  They are contributing $360 billion to enhance this sector.  I have previously blogged about potential opportunities in the US to grow renewables.  But they are just like recycling in the 1970s.  Recycling needed to be subsidized until such time as the facilities and processes were in place to make it competitive.  Now for steel and aluminum, it is less costly than virgin iron or bauxite.  That has several benefits to the economy and the environment.

I have previously suggested that those who do the research, develop the solutions and control the patents tend to rule the economy.  The US did in throughout the 20th century.  Energy is the 21st century opportunity and I would hope we don’t cede that elsewhere due to politics.  13 million jobs would really help places in rural America and place like Detroit and Flint which have the workers.  It may be that instead of the federal government doing much in this arena, the state and local officials will lead the charge.  California has been successful to a degree in this regard.  Let’s see if making money will “trump” the politics of oil. That would be good for a lot of local governments that have workers and factories, but not jobs.  That would help people like those in Flint.  And it would help their utilities.  Let’s work on this with our local officials


This is an interesting article from the Union of Concerned Scientists.  Should we be designing for climate change within our infrastructure systems?  The obvious answer, and the one that the ASCE code of ethics suggests for engineers, is yes.  If you live in a coastal area like me, and where sea level rise is your enemy, the solutions are somewhat clearer.  But what if you are in one of those areas where the future is far less certain?  How do you plan for uncertain, uncertainty?  A new area to study and maybe find a means to address things by thinking outside the proverbial box?

 

Designing Infrastructure with Climate Change in Mind: Assembly Bill 2800 Becomes Law


The most important parameters regulating algal growth are nutrient quantity and quality, light, pH, turbulence, salinity and temperature. Light is the most limiting factor for algal growth, followed by nitrogen and phosphorus limitations, but other nutrients are required including carbon. Biomass is usually measured by the amount of chlorophyll a in the water column.  Water temperature influences the metabolic and reproductive rates of algae. Most species grow best at a salinity that is slightly lower than that of their native habitat,  The pH range for most cultured algal species is between 7 and 9, with the optimum range being 8.2-8.7. Through photosynthesis, algae produce oxygen in excess of respiratory requirements during daylight hours. Conversely, during low light or nighttime periods algae respire (consume) dissolved oxygen, sometimes depleting water column concentrations. Thus, high algae concentrations may lead to low dissolved oxygen concentrations.

A common solution for algae is copper sulfate.  Copper Sulfate works to kill the algae, but when it dies, it settles to the bottom of the water body where it becomes a carbon source for bacteria and future algae.  One will often see shallow ponds with rising algae.  But there is significant concern about copper in coastal water bodies.  Copper is toxic to marine organisms so USEPA and other regulatory bodies are considering the limits on copper use.  Such a limitation would severely limit options in dealing with algal blooms near coastal waters.

Mixing is necessary to prevent sedimentation of the algae, to ensure that all cells of the population are equally exposed to the light and nutrients.  So oxygenation can help (it also mixes the water.  The depth of south Florida water bodies is problematic (shallow and therefore warmer than normal).  But oxygen will help microorganisms on the bottom consume the carbon source on the bottom, which might slow algal growth.  Analysis is ongoing.

Two other conditions work against controlling blue-green algae outbreaks: climate change and political/regulatory decision-making.  Lake Okeechobee has routine algal blooms from the nutrients introduced from agriculture and runoff around the lake, which encouraged an artificial eutrophication of the lake years ago.  It continues today.  Warmer weather will encourage the algal blooms in the future.  The decisions to discharge the water without treatment is a political one.  From a regulatory perspective, algae is seen as a nuisance issue, not a public health or environmental issue.  But algal blooms consume oxygen and kill fish, so the ecosystem impact is considerable – it is not a nuisance .


A couple summer’s back we had the Animas River turn yellow because of materials stored on the edge of the river.  A couple years before that, coal ash and the Charleston spill.  Now the “red” river (but at in Russia)….So maybe legislators can help us understand why continuing to store this stuff on the edge of water supplies is ok? Or why we shouldn’t put a bunch of money toward removing this material so water supplies and ecosystem are less at risk?

http://www.cnn.com/2016/09/12/world/russia-red-river-siberia/?iid=ob_homepage_deskrecommended_pool


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“Or is running a local government like s business killing it?”

I had an interesting conversation at a conference recently.  The people I was talking to were advanced in their careers and the discussion moved toward the outlook on management in public settings. Once upon a time, most public works and utility managers were civil engineers, but often they were criticized because they were focused on the engineering aspects as opposed to the people aspects of the community.  Their focus was public health and making sure things operated correctly.  Most did whatever was needed to accomplish that.

This led to schools of public administration, which actually started educating some of those same engineers about management of large public organizations, organizational theory, human resource, accounting and planning  I did all that myself at UNC-Chapel Hill.  The goal was to understand finances, people, community outreach, the need to engage citizens and as well as public service.  The outcomes were providing good service.  That however tends to cost a little more than operations although there are opportunities to be a bit entrepreneurial.

So back to the people in the conversation.  They noted that sometime in the 1980s or early 1990s the MPAs were being replaced by MBAs as politicians were focusing on operating “like a business.”  Looking at the MBAs out there, the comment was that business schools do not focus on service, but profits to shareholders, and the training is to cut unproductive pieces that detract from the bottom line.   Hence investments do not get made if the payback is not immediate.  Service is not a priority unless it helps the bottom line.  In a monopoly (like a local government), there are no other option, so service becomes a lessor priority.

So it brought up an interesting, but unanswerable question for now: has the move to more business trained people in government created some of the ills we see?  The discussion included the following questions/observations (summarized here):

  1. Many water and sewer utilities are putting a lot of time and effort into customer service and outreach now after years of criticism for failing to communicate with customers. That appears symptomatic of the monopoly business model.
  2. Our investments in infrastructure decreased significantly after 1980, and many business people focus on payback – so if the investment does not payback quickly, they do not pursue them. How does that impact infrastructure investments which rarely pay back quickly (Note that I have heard this argument from several utility directors with business backgrounds in very recent years, so the comments are not unfounded).  It does beg the questions of whether the business focus compounds our current infrastructure problems.
  3. Likewise maintenance often gets cut as budgets are matched to revenues as opposed to revenues matched to costs, another business principle. Run to failure is a business model, not a public sector model. Utilities can increase rates and we note that phones, cable television, and computer access have all increased in costs at a far faster rate that water and sewer utilities.

Interestingly though was the one business piece that was missing:  Marketing the value of the product (which is different than customer service).  Marketing water seems foreign to the business manager in the public sector.  The question arising there is whether that is a political pressure as opposed to a forgotten part of the education.

I would love to hear some thoughts…

 


How many utilities have a 3D map of their infrastructure?  Not many I bet.  But FAU does.  Here is a recently completed project we did with students and the Facilities Maintenance staff at FAU (costs involved).  They needed better mapping and will tie this to their work order system.  It was an excellent opportunity for two groups within one organization that otherwise seem to have little in common wot work toward a great project.  We will be inputting this data into an online asset management system this summer along with some data for Dania Beach so they will have a portion of their utility system in 3D also.  This is part of a tiny project we did for their downtown area.

GIS is a powerful tool and one utilities should embrace wholeheartedly.  There is so much more than mapping to do.  Data gathering in critical, but with Leica and Trimble units, a lot of data can be gathered easily.  LiDAR can be expensive, but the value is tremendous.  You can see that the FAU system is laid on a 3D LiDAR topographic map (6 in vertical accuracy).  Asset condition assessments were also done concurrently, which adds a lot of information to the system (all assets were also photographed and linked).  Drawing files can be downloaded and extruded from 2D to 3D. Engineers know GIS or can learn it, which makes a fully expanded GIS system for the utility easy to derive if the time is spent.  This is a valuable tool when linked to work orders and asset management programs.

So is your utility in 3D?  Capture

 


Collaboration between students, faculty and the real world is an excellent means to integrate students into real world situation and provide them valuable experience.  I have done this with several communities to date.  Below are the installed OASIS street improvements in Dania Beach.  Students did the drafting.  Also a stormwater pipe in Boynton Beach.  Excellent learning experience.  The campus mapping project is one that our Facilities Management Department needed.  Very cool 3D map.  We did stormwater assessments in Davie, plus flood mapping.  Of course the Dania Beach nanofiltration plant, the first LEED Gold water plant in the world.  Still.  Here is the cool thing with working with students – they have all kinds of ideas and have all kinds of tools that they can access – they just need guidance.   They will create tools (our app for asset management). to make the job easier.  Most collaborate well.  And most want to learn about the profession.  As an industry we should promote this more.  Go to the local universities, talk with faculty.  Find the right faculty mentor who is interested in local outreach.  Work with them.  But students should not work free.  Pay or pay in grades.  It’s only fair.

 


Here is an example of getting to a condition assessment with limited data using power point slides.  Note that where there are categorical variables (type of pipe for example), these need to be converted to separate yes/no questions as mixing.  Categorical and numerical variable do not provide appropriate comparisons = hence the need to alter.  Take a look – but the concept is to predict how well this model explains the break history on this distribution system.  Call me and we can try it on yours….

Step 1  Create a table of assets (this is a small piece of a much larger table).

Asset Dia
water main 2
water main 2
water main 2
water main 2
water main 4
water main 6
water main 6
water main 6
water main 6

 

Step 2  Create columns for the variables for which you have data (age, material, soil type, groundwater level, depth, traffic, trees, etc.)

 

Asset breaks in 10 year Dia Age soil traffic Trees depth pressure material Filed estimate of cond.ition
water main 17 2 45 1 1 2 1 55 4 3
water main 11 2 45 2 1 2 1 55 4 3
water main 12 2 45 1 1 2 1 55 4 3
water main 10 2 45 1 1 2 1 55 4 3
water main 2 4 50 1 1 2 1 55 1 2
water main 3 6 60 2 2 2 1 55 1 2
water main 1 6 60 2 2 2 1 55 1 2
water main 1 6 60 2 2 2 1 55 1 2
water main 0 6 20 1 1 2 1 55 3 1

 

Step 3  All variables should be numeric.  So descriptive variables like pipe material need to be converted to binary form – i.e. create a column for each material and insert a 1 or 0 for “yes” and “no.”

Step 4 Run Linear regression to determine factors associated with each and the amount of influence that each exerts.  The result will give you a series of coefficientcoefs:

Step 5 – Use this to predict where your breaks will likely be in the next 5-10 years.

Pred breaks

The process is time consuming but provides useful information on the system.  It needs to be kept up as things change, but exact data is not really needed.  And none of this requires destructive testing.  Not bad for having no information.


DSCF0032Curtailed water use and conservation are common topics of conversation in areas with water supplies limitations.  As drought conditions worsen, the need for action increases, so when creating a regulatory framework, or when trying to measure water use efficiency, water supply managers often look for easily applied metrics to determine where water use can be curtailed.  Unfortunately, the one-size-fits-all mentality comes with a potential price of failing to fully grasp the consequences decision-making based on such metrics.

One of the issues that water supply regulator like to use is per capita water use.  Per capital water use is often used to show where there is “wasted” water use, such as excessive irrigation.  However such a metric may not be truly applicable depending on other economic factors, and may even penalize successful communities with diverse economic bases.  A heavy industrial area or dense downtown commercial center may add to apparent per capita use, but is actually the result of vibrant economic activity. Large employment centers tend to have higher per capital use than their neighbors as a result of attracting employees to downtown, which are not included in the population.

In south Florida, a recent project I was involved with with one of my students showed that while there was significant variability among utilities, but the general trend of increased economic activity was related to increased per capita use.  Among the significant actors were health care, retail trade, food service and scientific and technical services.  It appears to be these sectors that drive water use upward.  As a result when evaluating the efficiency of a utility, an analysis should be conducted on the economic sectors to insure that water regulations do not stifle economic growth and jobs in a community.   And conversely if you do not have these sectors, you water use should be lower.  Something to think about when projecting or regulating water use.  Limited water use may in fact be limiting economic activity in the area. Of course if you are water limited, limited new withdrawals may be perfectly acceptable if you want to encourage other options, like direct or indirect potable reuse, irrigation, etc.  

It would be interesting to expand this study across the country to see what the national trends look like and how different tourism oriented South Florida might actually be.

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