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Infrastructure Funding Options

May 15, 2015
American Water Works Association, finance, funding, Leadership, Marketing water, Risk, Risk Management, Water Funding
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The US EPA estimates that there is a $500 billion need for infrastructure investment by 2025.  The American Water Works Association estimate $1 trillion.  Congress recently passes the Water infrastructure Finance and Innovation Act (WIFIA) at $40 million/year, rising to $100 million in 5 years, which is a drop in the bucket.  Peanuts.  We have so many issues with infrastructure in the US and Congress tosses a few scheckles at the problem and thinks it is solved.  The reality is that the federal government wants to get out of the water infrastructure funding business and shift all water infrastructure to the local level.  This is a long-standing trend, going back to the conversion of the federal water and sewer grant programs to loan programs.

The reality is that local officials need to make their utility system self-sustaining and operating like a utility business whereby revenues are generated to cover needed maintenance and long-term system reliability.  The adage that “we can’t afford it” simply ignores the fact that most communities cannot afford NOT to maintain their utility system since the economic and social health of the community relies on safe potable water and wastewater systems operating 24/7.  Too often decision are made by elected officials who’s vision is limited by future elections as opposed to long-term viability and reliability of the utility system and community.  This is why boom communities fall precipitously, often never recovering – the boom is simply not sustainable.  Long-term planning is a minimum of 20 years, well beyond the next election and often beyond the reign of current managers.  Decisions today absolutely affect tomorrow’s operators.  Dependency on water rates may be a barrier, but this ignores the fact that power, telephone, cable television, gas, and internet access are generally more expensive hat either water or sewer in virtually all communities.  We need water. Not so sure about cable tv or he internet.  Great to have, but needed to survive?

The growth in costs can lead to mergers where a utility cannot afford to go it alone – as the economy of scale of larger operations continues to play out in communities.  Several small plants cannot operate at the same cost as one larger plant.  As a result larger projects will increase – from 87 to over 336 between 2005 and 2014.

But these costs are generally plant costs – treatment and storage, not piping.  Distribution pipelines remain the least recognized issue for water utilities (collection pipelines for sewer are similarly situated).  The initial Clean Water Act and Safe Drinking Water acts did not focus on piping systems – only treatment and supply.  The national Council on Public Works concluded their first assessment grade for infrastructure in the 1980s – but piping was not discussed.  ACSCE’s first report card in 1998 did not express concern about piping system.  Yet piping continues to age, and expose communities to risk.  In many communities greater than 50% of their assets are buried pipes.  Tools for assessing the condition of buried pipes especially water distribution pipes is limited to breaks and taps.  As a result the true risk to the community of pipe damage is underestimated and the potential for economic disruption increases.  The question is how do we lead our customers to investing in their/our future?  That is the question as the next 20 years play out.  Many risk issues will be exposed.  The fact that there are not more issues is completely related to the excellent work done by the utility employees.  More to come….

A Computer Rant

May 6, 2015
communciations, Leadership
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I got hacked again this past week.  I had the week nicely structured to stay in my office and get lots of work done.  Things I had been trying to complete for the past couple week.  This is the second time I have been hacked with this computer and I have only owned it for 3 months.  So the first hack involved someone diverting my email for 6 hours.  I could not get it back, but I stopped the diversion (I think) with the help of ATT.  Who knows what information was transmitted other than a lots of what is really spam.

Ok, so then I start getting these phone calls from “Microsoft Windows” noting errors they are receiving from my computer.  Now most you recall that Microsoft used to ask if you wanted them to be notified of errors, but since everyone said yes, they now just do it automatically.  Mostly the “Microsoft Windows” guys left messages on my cell phone since that is the number registered with Microsoft.  I picked up the phone one time, but the “Microsoft Windows” guy could not tell me which of my computers was sending the messages (I have more than one).

But that did not stop the calls which have accelerated of late.  So I get another call that I answer (from a number in Washington state) from “Martin” with “Microsoft Windows”  who, without accessing my computer, knows over 9,000 errors had been sent, starting the day I bought the computer.  He also knows the software serial information, computer serial numbers, etc., all of which he can recite over the phone and ask me to check to verify he is with “Microsoft Windows” because otherwise he would not have that information.  And then he notes that because the 25 digit codes for Windows 8 is not visible, “Microsoft” will cause a key lock on my computer – a message that I again could verify without him accessing the computer.  And of course that’s how he tries to convince me he is calling from “Microsoft Windows.”

NOTE:  Miscrosoft DOES NOT Call you – it is a scam (see the internet).  So I have the hacker on the phone.  He emails me his info (of course he has my registered email like everything else), which I note says pcsync.org, not “Microsoft Windows.” I asked and I was suddenly disconnected.  And within the hour, the computer is locked.  Clearly the acceleration of calls was because the hackers knew about the key lock because they installed it and they want to get to the last minute.  Now Martin called back about 20 times in the next 2 hours trying get me, but the number he left is not valid (despite his website listing it). And of course he will fix the problem for $239 plus whatever else he can sell you.  That’s the hacker scam – create a problem than get you to pay to fix it.

And when it locks – the result is a window that asks for Startup password – which Microsoft will tell you, indicates you have been hacked.  Except, then Microsoft says they need the 25 digit code for the operating software to fix your computer.  “But you need to get that from Dell” even though Dell only loads the software – you need to register it with Microsoft to make it work.  So I called Dell, and the first person says sure they can give it to you, but the second “no they need to send CDs.”

OK they are both wrong.  With Windows 8.1 the code is not on your computer if pre-loaded.  And of course Dell does not give you a recovery disk when you buy it.  Dell knows about the code.  So does Microsoft.  So an hour plus wasted there with two good organizations who clearly do not communicate.  So I am shut out of the new computer and the email.

Good news though is that maybe 10 years ago I was advised by Gateway (the old cow computers) to use iyogi.com to fix a prior issue.  So 13 hours later and lots of time with Amit, we are sort of back up running.  And of course iyogi knows about the code issue that Dell and Microsoft mis-advised me on and told me the story above.  And yet we both wondered how pcsync.org (the hackers) was tracking my computer error messages to Microsoft from day 1?  Have they hacked Microsoft?  Dell?

And the next day one of my friends, in talking about this says – “Hey wait, I keep having pop-ups for pcsync on my computer also.”  And later in the day, another says the same thing –“ pcsync is on mine too.”  And neither has a Dell – but they do have Microsoft Windows 7 or later.  And makes me wonder, who is taking responsibility for protecting the consumers here?  Clearly the computer manufacturers do not take responsibility.  Maybe they can’t.  Microsoft doesn’t appear to either, so that leaves us . . . . . vulnerable.  Mr. Gates you have a great operating system, but this problem costs us lost productivity, money, time, irritation…even when you have all kinds of anti-maleware and anti-virals on your computer.  If the hackers can get in day 1, how do you stop that?  And apparently the maleware doesn’t see it (hint).

So the questions:

  • Does “Microsoft Windows” know about this?
  • If so, why have they not fixed it?
  • Do the computer manufacturers know this issue occurs?
  • Why have they not talked to Microsoft about it?
  • Why doesn’t the maleware address it?
  • How are they getting in?
  • Is Microsoft hacked – perhaps the biggest hack of all?
  • And why have the internet police addressed pcsync and their ilk? It is all over the internet!!!!!

Clearly the penalties for hacking are not nearly severe enough.  And from a law enforcement and cyber security perspective, we clearly lack the resources to protect individuals, so beware!

And if you see pcsync – call iyogi or someone who can help.  Quickly!!

Ability to pay?

April 28, 2015
finance, Leadership, management, Revenues, Water Funding, water sewer management
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So what does ability to pay really mean?  We hear this discussed by political pundits and local officials but few really understand what this means.  Likewise the “I’m on a fixed” budget argument pops up a lot, and it is hard to understand what this really means.

The ability to pay concept was developed many years ago by political scientists and economists looking at the allocation of costs to consumers for government services.  Property taxes are a logical place to start – higher value homes have more potential for loss, so their taxes were more (the percent was the same but because of their value the amount was higher).  For income taxes, those with higher incomes we deemed to have more disposable income and again more to lose, so the rates increased as income rose (we forget that until 1963 the highest income tax rate was 90%, and the economy was growing quickly!).  People with lower incomes had little disposable income because all their money went to food and housing.  Today the issue of affordability arises with water, sewer, taxes and storm water fees, as well as federal and state taxes.  The SRF and bonding agencies often look at 3.5% or 4.5% and the maximum water or water/wastewater cost as a percent of income, but few  utilities charge this much.  Few water and sewer utilities (combined) approach the cost for power per household, let along the cost of cable or cell phone use for all but the cheapest carriers.  Certainly water, sewer and storm water are essential service, but not so much cable, although there are those who will argue the point.  So somehow the ability to pay issue does not apply to private sector services, but does to essential services, especially when we all know we do not collect enough money to cover significant infrastructure needs on those public works systems?  That just does not make logical sense except in the political world.

Likewise the “fixed income” argument is often applied in tandem.  Fixed income is generally applied to retirees, but let’s not forget that 10% of those in poverty are retirees, but 18% of millionaires are over 65.  But don’t most people have a fixed income – their income is fixed by their employer.  They can change jobs but the argument that younger folks should change jobs if they want to earn more is like telling retirees to go back to work.  There is only so much we can do and only so much income to be earned because few control their income.

So on both counts, the ability to pay argument seems like an argument created to keep public service costs down and prevent the full cost application to many.  The squeaky wheel gets coddled, at the expense of society.  Somehow that is not fairness, and subjects us all to unnecessary risks.  The question is who is going to be the person/group to stand up and say enough?

Water Use – does drought really tell us anything – or do we miss just the message?

April 21, 2015
Climate, decision-making, Development loans, Drought, groundwater, Leadership, water sewer management, water supplies
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Spring is in the air, at least in some places, so it gives us a chance to take stock of where we are after the winter.  Boston actually is seeing the ground after record snow.  The west is seeing lots of ground, even though some areas should not be seeing ground at this point.  I recall the Colorado Rockies having snow at 8000 ft a couple years ago, but not this year.  Some ski resorts in western Colorado never opened.  Not a good sign.  Snow was 10% of normal in parts of California which means the drought will continue.  12% in Oregon and Washington is some part – not good for places that rely on snow for water supplies.  So the question is whether the current drought is the start of a longer climate driven issues and/or the result of where demands have permanently exceeded supplies?  And if the latter is true, conservation is one option, but has obvious financial and supply limitations since urban use is less than 12% of water total use (agriculture is 40% and power plant cooling water is 39%).

Better management is part of a toolbox, but when the supply is finite, the economics says that costs will increase, shutting out certain sectors of the economy.  This is where the “market system” theory of economics fails large sectors of the population – at some point finite supplies become available only to those who can afford to pay, but water is not one of those commodities that is a luxury – we need it to survive.  Certainly the argument can be made that water is underpriced, but like energy, low water prices have helped fuel economic development while improving public health.  It is a chicken/egg conundrum where the argument that conservation will solve all problems is not realistic, nor is using the market or curtailing economic activity.  This is where the market fails and therefore governments have a role in insuring that all sectors are treated fairly and the commodity can be provided to all those in need of it – serving the public good.  The public good or public welfare argument is often lost in the political dogma of today, but our forefathers had this figured out and designed regulations to insure distribution after seeing the problems that arose in the late 19th and early 20th centuries.  We have forgotten many of those lessons.

The public good or welfare does not mean unlimited distribution to areas that would otherwise be bereft of the commodity.  The early engineers in Los Angeles realized that development could only continue if water was brought in.  So massive water movement projects were developed.  The economic benefit was the only consideration – the impacts of these changes were not considered.  Likewise the Corps of Engineers was directed to drain the Everglades, but no one asked if this was a good idea or would have negative impacts.  Loss of the Everglades permitted economic development that is southeast Florida – 40% of the economy of the state, but it impacted water supply and places millions are risk for future sea level rise impacts.  Worse, agriculture was fostered in the upper Everglades as the federal government sold off the acreage to private interests cheaply to encourage sugar cane and winter vegetables.  That agriculture is now planning to develop the Everglades if the property is not purchased by the state.  But purchasing the property rights a prior error in consequences – it is likely in the public interest as an effort to restore water supplies in the Biscayne acquire that feed southeast Florida, and to increase water flows to retard saltwater migration in the southern Everglades.  These are both ”sins” of the past, made with good intentions but with very little thought of consequences beyond the economic benefits.  Both have resulted in water shortages in the areas they were meant to serve as climate patterns have changed.

The question is whether we continue to make these mistakes.  Development in desert areas, areas known to be water poor, and deepening wells to get groundwater supplies who’s levels continue to decline are all poor long-term decision, despite the short-term potential gains.  California farmers continue to deepening wells but those aquifers have a limit in depth.  Deepening wells means those wells do not recharge (otherwise the aquifer levels would not continually decline).  What happens when the wells run dry permanently? Clearly the sustainability criteria is not met.

Meanwhile lower aquifer can divert surface waters into the ground – not enough for full recharge, but perhaps enough to impact surface water flows to other farmers, potable water users, and ecosystems.  Droughts are climate driven- and we have persevered droughts before, and will again.  However in light of the California drought, perhaps we should all assess more closely the long-term trends – lowering groundwater, increasing demands, lessening availability and make better decisions on water use – not only in California but in many parts of the US and the world.  Changing water use patterns is great, but it is just part of a larger issue — do we need to change our current behaviors – in this case water use – in certain areas?  Are there just places we should not develop?  Is there a limit to water withdrawals?  And how do we deal with the economic losses that will come?  All great question – but do we have the leadership in place to make the hard decisions?

A Question of Ethics

April 17, 2015
engineering, ethics, Leadership
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I could not find any actual laws or rules issues here, but does it bother anyone else that it is increasingly common for big engineering contracts to have lawyers, lobbyists, etc. get involved in what is intended to be a qualifications based selection process?  I find little that specifically addresses the issue beyond some inference in older ASCE canons.  In Florida, the intent of the statutory selection process might be is that governmental agencies “shall negotiate a contract with the most qualified firm for professional services at compensation which the agency determines is fair, competitive, and reasonable.” But wouldn’t employing lobbyists and lawyers frustrate this process ?.  And it is not like Florida hasn’t had several elected official go to jail and/or be indicted over such issues.  So as the public becomes more aware of these activities, does it create a more negative perception of engineers?  And is this good for either the engineering profession or the local governments (and their utilities) involved in the selection process?  The comment that “that’s how business get done” is not an acceptable argument when the priority purpose of engineers, and utility operators is the protection of the HEALTH, SAFETY AND WELFARE OF THE PUBLIC.  The concept of qualifications-based selection processes enacted for public agencies is that getting the professional who has the best set of qualifications usually means fewer issues arise since they have designed similar projects before and know the pitfalls.  Someone who has not, likely will not, which can add unexpected costs to a job.  Just a thought, but maybe it is time to think about this seriously.

Traveling Vietnam Wall

April 13, 2015
Leadership, respect
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I had the opportunity this weekend to visit one of the traveling Vietnam Memorial Walls.  I have been to the real wall in Washington, but this was a 3/5 scale model in steel that gives a lot of people who cannot get to Washington a chance to check it out.  There were ancillary exhibits that went with it, but it was generally a fairly quiet event.  Too quiet in fact.  Over 58,000 people lost their lives in Vietnam and 150,000 were wounded.  Some 25,000 of them were 21 and under.  They were kids.  And there were maybe 20 people there.  The vendors had very few visitors.  Most of the merchants in Jupiter near the exhibit were closed (it was Sunday, but still). Even the band had only one person sitting and listening to the 60s tunes they were playing.  Students from adjacent FAU were conspicuously absent.  There were a number of Vietnam vets there eager to share memories and stories, many of which were great.  But I really felt that this was a missed opportunity for a lot of people.  WWII vets get attention, as they should, but sadly they are leaving us.  Likewise Korean War veterans are passing on as well.  Our next set of fighting vets are those in Vietnam, who were never greeted with the same fervor as WWII.  Vietnam was the longest war we fought until that point and these guys just did the job they were drafted to do.  It was a game-changing event in America. Go see the wall if you can and pay your respects.  These guys will appreciate it after all these years.

Low Gas Prices = Bad Budgets

March 10, 2015
Economic Bubbles, economy, energy, finance, growth, infrastructure, innovation, Leadership, planning, power, power demands, power-water nexus
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Interesting that while we all love low gas prices and the low cost of energy is fueling an expansion of our economy, including the first gains in middle income salaries since 2008, the states reliant on oil and gas may be facing real problems financially.  A year ago I read an article that noted the reluctance of North Dakota residents and politicians to invest in roads and other infrastructure despite the influx of oil money.  Keep taxes low was the mantra.  SO they did.  A recent Governing magazine article notes that a dollar drop in oil means $7.5 million decrease in revenues for the State of New Mexico.  Since oil has lost about $30 a barrel in the past year – that is $200 million loss.  Louisiana sees a $12 million cost/dollar drop so they have $171 billion less to work with.  Alaska, perhaps the most oil dependent budget (90 percent) has a $3.4 billion shortfall, but $14.7 billion in revenues.  Texas, North Dakota, Oklahoma and Kansas are other states facing losses.  Fast growing states like North Dakota and Wyoming now have hard decisions to make.  Growth in Texas, Oklahoma, Louisiana and Arkansas may be cut by 2/3 of prior estimates as a result.  A double hit on anticipated revenues.

The comparison is interesting financial straights experienced by the “property value” states like Florida, Nevada and Arizona before and after the economic collapse in 2008.  Florida politicians couldn’t wait to cut taxes and slow spending during boom years, then got caught badly after the 2008 recession when property values dropped in half and state sales tax revenues (tourism) dropped steeply.  They ran out of reserves and refused to raise taxes (after cutting them), so cut things like education and health care to balance the budget.  Not sure how either helped low and middle class Floridians get back on track since Florida has primarily create low wage jobs since that time, not high paying jobs.  We are paying the price still.  I am guessing Nevada and Arizona are similar.

We clearly have not learned the lessons of the many mill towns in the south or the rust belt cities of the Midwest that encountered difficulties when those economies collapsed. Everyone refused to believe the good times would end.  Now Detroit is half of its former self and Akron has the same population as it did on 1910.

The moral of the story is that booms great, but short term.  Diversity in the economy is a key.  Florida will continue to be subject to economic downturns more severe than other states when it relies primarily on tourism and retirees to fuel the economy.  Detroit relied on automobiles, Akron rubber and chemicals, Cleveland steel, etc.  Some day the Silicon Valley will suffer when the next generation of technology occurs that makes the current works obsolete.  It is what happens when you are a “one economy” town.  It is also what happens when you believe the booms are “normal” and fail to financially plan by putting money aside during the boom to soften the subsequent period.

An argument could be made that if the federal government had not enacted tax cuts in 2000 when the budget was finally balanced and surpluses were presumed to loom ahead, we could have banked that money (or bought down our debts), and the amount of borrowing would have been less in 2008.  Buying down debt when times are good is good business.  So is putting money in reserve.  The question is why the politicians do not understand it.  We can run government like a business financially, but takes leadership to do it.  It takes leadership to explain why reserves are good and tax cuts are a future problem.  It takes leadership to make hard decisions like raising taxes, spending more on infrastructure, requiring people to move out of flood plains, not rebuilding in vulnerable areas, and curtaining water use policies when they damage society.  Leadership is making decisions that help the needs of the many, versus the needs of the few.  Oh wait, I see the issue now.  We need Spock to lead us…

 

Musings on the Energy Front

March 6, 2015
American Water Works Association, economy, energy, fracking, Greenhouse gas emissins, innovation, JObs, Leadership, power, power demands, power-water nexus, resource depletion, solar power, wind power
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Power costs are stable.  Gas prices decreased markedly in 2014 Oil futures are low compared to 2013 and earlier.  .  Production is constant.  Low energy likely is fueling an economic expansion.  Gas economy in vehicles is at an all-time high.  Fuel efficiency lowers GHGs and cuts oil imports.  America is less reliant on foreign oil.  We have more money in our pockets.  Utility power costs and vehicle costs are lower.  Generator operations are lower.  Life is great.  Or is it?

 

Well, that depends on who you talk to.  Politicians in states with in oil and gas based economies are scrambling to deal with large deficits in their budgets.  The railroads are not happy over the Keystone pipeline vote.  Green energy manufacturer are unhappy.  Environmentalists are unhappy.    Heck even the Koch brothers are probably not completely happy

 

The first issue is methane gas.  Pipelines and fracking operations lose about 6% of the gas. A Washington Post article estimates 8 million metric tons of methane is lost each year.  That is where we are trying to capture and transport it.  The Bakken fields lack pipelines for gas, so much if it may be flared.  The amount of fracking will continue (Florida Power and Light has said it will get into the business – but outside of Florida), so more exploration will likely lead to more methane escaping.  Why do we care?  Methane is 22 to 80 times the greenhouse gas that carbon dioxide it (depending on who you talk to).  It accounts for 9% of GHG emission in the US – a third of that from the oil and gas industry.  That gas is concentrated in the western US which makes them ripe for regulation.

 

Enter cap and trade.  The cap and trade “industry” has been opposed by the oil and gas industry for years.  However there are a number of groups –from Indian tribes to NextEra Energy are posed to benefit from cap and trade (C&T) rules.   They have reduced their carbon footprint enough that they can sell carbon credits.  It is doubtful that this Congress with pass C&T legislation, but much of the regulatory focus could be shifted if C&T was in place.  C&T could accelerate green energy efforts.

 

Green energy folks want continued subsides or policies that encourage increased green power supplies, improve technology and reduce prices – all at the same time.  Rolling out a major change in the energy picture is a huge investment that will not gain traction without policies to encourage it   At least for now, green energy creates more jobs per KW-hr than conventional oil and gas, primarily in research and development and product manufacturing.  Sewing up the patents would portend positively for America in the 21st century, much as sewing up the car, gas engine, and nuclear patents did for the 20th century.  He who owns the technology should benefit.  Unfortunately that isn’t the Koch brothers who are unhappy with green energy but are happy that lower oil prices might decrease the competition in the future when oil prices inevitably rise.  But America would be better off in a non-oil based economy in 50 years if we developed an energy policy to address these issues with a long-term view.

 

However, that would take a lot of business and political leadership to overcome some of those who do not want change.  These are people who have more money than the Concord coach makers who could not fight the technology change to automobiles in the early 20th century.  It also takes a vision of what America should look like in 50 years. We might be short on those visionaries.  And how will utilities be a part of it.

Infrastructure is Broken

March 2, 2015
Economic Bubbles, economy, engineering, infrastructure, innovation, JObs, Leadership, local government, management, planning, politics, Responsibility, sustainability, utilities, Water Funding, What could possibly go wrong?
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ASCE came out with more bad news about infrastructure.  60 Minutes did a piece about deterioration of bridges. The magazine American City and County has published a couple articles about the risks of aging infrastructure.  Asset management is practiced by few governments, and even fewer small ones.  The public doesn’t want to foot the bill and lobbyists want taxes cut further.  Where does it end?

The infrastructure crisis is a political and business leadership crisis.  Or vacuum.  The economy of America and much of the developed world was built on advanced (for their time) infrastructure systems constructed by governments with a vision to the future.  Some of this infrastructure was repurposed (federal interstate system for example), but much of it has addressed critical issues that hampered our development.  For example, the lack of water severely inhibits many third world nations.  Even when they have water, it is unsafe to drink or use.  In America, at the turn of the 20th century 1:100,000 people DIED each summer from typhoid.  Just typhoid, not all the other waterborne disease options.  Many more were sick.  And the population was much smaller.  Talk about reduced productivity.  Now we have advanced water systems, disinfection practices that protect people and pipes, and few event get sick from contaminated water.  Those that do, become headlines.  You don’t want to be a headline.  Productivity is up.  But we expect good water and can’t see the pipes.

Sewer is an even better example.  People just don’t want to know.  Flush and it’s gone.  But the equipment, treatment and materials may be even more complex than the water system.  But few people get sick from sewage because of the systems we have built.  Now think about third world examples.  Or conditions you have seen in documentaries, the news or movies.  Being in sewage is not a great place to be.  Even the manhole thriving cockroaches agree..

Stormwater is probably the laggard here, in part because changes in development patterns have overwhelmed the old systems.  Miami Beach experienced this when redevelopment replaced small houses on permeable lots with large housed with mostly impermeable property.  Oops.  Meanwhile road and bridges have received a lot of funding – with much to do (see bridge that collapsed on I-75 in Cincinnati a few weeks back).  Most states fund transportation at a magnitude more than water and sewer.

What is the problem?  Local officials do not convey an understanding of these complex system to the public very well.  In part this may be because understanding the maintenance needs is difficult and highly variable.  And many do not fully comprehend the assets they have, their condition, life expectancy or technological needs.  No one knows when things will fails, so maintenance or replacement of some equipment or pipeline is always the thing cut in the budget, with no real understanding of the consequences.

The public does not see the asset, assumes it will have a long life, so is unconcerned until they are affected.  Then it is personal.  The public does not understood the impact or value that these assets have to society – they tend to be personal focused, not societal.  That is a leadership issue.  That leadership starts with vision and communication from those that understand the issue to the elected officials that need to advocate for their infrastructure.  Elected officials need to take ownership of infrastructure.  It is like your house – you need to upgrade and protect it constantly.  You do not let that roof leak keep leaking!  Elected officials that do not invest in infrastructure, are letting the roof leak.  Making is someone else’s problem for political expediency is not leadership.

Despite the infrastructure crisis, the good news is that construction of piping is increasing – both new and replacement.  Every so many months, the magazine Utility Contractor will note current trends and pipe seems to be going up.  That’s good but there is a long way to go.  Better news – the construction of buildings is increasing.  That could lead to more revenues.  In Florida, all of a sudden finding experienced construction workers is a problem.  Things are definitely better economically, but are we taking advantage to improve the local infrastructure, or is you economy simply an infrastructure disruption away from another fault?

Interesting Question about Reuse

February 26, 2015
direct potable reuse, engineering, groundwater, Leadership, Marketing water, resource depletion, utilities
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If you are a wastewater utility, and you create a high quality effluent product that can be used for industrial purposes, irrigation or aquifer recharge, who “owns” the water?  If the utility is sending to a golf course pond for discharge, the answer seems obvious – the golf course owns it.  Not so fast.

Now let’s day you are recharging and aquifer.  You pump it into the ground with the intention of recharging the aquifer to benefit your wellfield.   Or you pump it into an aquifer storage and recovery system with the intent of recovering it when you need it.  Quick impression is that you should own it, but what about the people that sink walls along the way?  Or have existing wells in the vicinity that can tap your injected water?  Can you keep people from pumping it out?  Not as clear.

What about discharge to a stream with the idea of capturing it downstream in an intake system for your water system?  Much less clear.  The ecosystem, farmers, irrigation users, etc. along the stream could use the increased flows.  Can you keep them out?  Very unclear.

Now assume you are a water rights state and there are people who have rights to the aquifer or stream that are more senior to yours.  Can you clip their claim to the water by claiming the water is yours?  Really not clear and the subject of ongoing regulatory discussion and legal proceedings.

There are no clear answers to these questions but they have major long-term impacts of water resource planning in much of the US.  The problem is the rules assume facts not in evidence at the time of the permit (or claim).  Conditions can change – permits and rules may not (or have not).  Maybe the water regulations and that the changed condition should perhaps obviate the prior claim?  A very tough legal issue and one bound to make a bunch of people unhappy.  The concept of reclaiming water from waste was not a consideration in the past, so clearly the rules that cover reclaimed water need to be revised.  I can’t wait to see the results.