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Road Map to the FutureCapital Improvements Planningfor Small Water Systems

29

by Jean Holloway

MAGAZINE

Calendar of Events

News and Notes

On the Web

Ask the Experts

Fun Times

Until Next Time

In Every Issue

6

7

12

14

37

38

Tear-Out Insert

Features

27

33 Who Needs What Training?National Needs AssessmentProvides Answers

2277

2200Getting Good PR Out of Your CCR

Wi n t e r 2 0 0 7 , Vo l . 6 , I s s u e 4Drinking Water News & Information for America’s Small Communities

Tech Brief

www.nesc.wvu.edu 3

Certain U.S. drinking waterregulations have the potentialto conflict with each other. Thismeans that small system oper-ators cannot simply complywith these mandates individu-ally, but must consider howchanging their treatmentprocess to meet one rule mightaffect compliance with otherrules. This Tech Brief providesinformation and strategies toeffectively comply with thoseregulations that are most likelyto conflict with one another.

2299

20 Launching a Watershed PlanGetting a Proper Start ImprovesResults Down the Roadby Mark Kemp-Rye

by Trina K. Wafle

36 Calculating Rate Adequacyand Affordability

Simultaneous Compliancewith Drinking WaterRegulations

by Carl E. Brown1166

4 On Tap Winter 2007

Rural Development

USDA’s Rural Development Utilities Service strivesto serve a leading role in improving the quality oflife in rural America by administering its electric,telecommunications, and water and waste pro-grams in a service-oriented, forward-looking, andfinancially responsible manner. Founded in 1947 as the Farmer’s Home Administration, Rural Devel-opment has provided more than $35 billion forwater and wastewater projects. For more informa-tion, visit their Web site at www.usda.gov/rus/.

The National Environmental Services Center

The National Environmental Services Center(NESC) is a nonprofit organization providingtechnical assistance and information aboutdrinking water, wastewater, infrastructure securi-ty, utility system management, solid waste, andenvironmental training to communities servingfewer than 10,000 people.

To achieve this mission, NESC offers a toll-free tech-nical assistance hotline, hundreds of low-cost orfree products, magazines and newsletters, and sev-eral searchable databases. We also sponsor confer-ences, workshops, and seminars. Visit the NESC Website at www.nesc.wvu.edu or call toll-free (800) 624-8301and request an information packet.

NESC is located at West Virginia University, one of thenation’s major doctoral-granting, research institutions.

ISSN 1061-9291 Printed on Recycled Paper

Drinking Water News and Information for America’s Small Communities

Winter 2007 • Volume 6 • Issue 4

An Equal Opportunity/Affirmative Action Institution

Reprint Policy

Permission to quote from or reproduce content in this publication is granted when due acknowledge-ment is given. Please contact the editor (see page 5)and report where and when the article was used. Thecontents of this publication do not necessarily reflectthe views and policies of the Rural DevelopmentUtilities Service nor does mention of trade names orcommercial products constitute endorsement orrecommendation for use.

Sponsored by USDA Rural Development

James AndrewRandy Plum

AdministratorLoan Specialist

Some images in this issue © 2003-07, www.ClipArt.com and www.photos.com.

As I write this note, the grey skies of a West Virginia winterhave descended and snow is in the forecast. Earlier thiswinter, Buffalo and other communities around the GreatLakes had already received significant amounts of thewhite stuff. Although it may be winter outside, I’m thinkingabout summer.

All of the articles in this issue of On Tap have roots in lastsummer. Carl Brown and Jean Holloway were bothtrainers at our annual Environmental Training Institutefor Small Communities, held on the campus of WestVirginia University each August. Their articles about ratesetting (“The Future Starts Now”) and capital improve-ment planning (“Road Map to the Future”), respectively,are derived from courses they taught at the Institute.

The Institute was also the place where the NationalEnvironmental Services Center released the results of athree-year study about training needs. We’ve included asummary of this study in this On Tap. The article “GettingGood PR Out of Your CCR” is adapted from an article pub-lished by our friends at the Rural Community AssistancePartnership in their August 2006 e-Bulletin.

In last summer’s On Tap, we provided an overview ofwatershed approaches to environmental problems. Inthe current issue, I begin a four-part series exploringwatershed planning in a more in-depth fashion. Over thenext year, we’ll explore (1) how to start a watershed

www.nesc.wvu.edu 5

Who We Are

A number of people are responsible for putting On Tap mag-azine together each quarter.We encourage our readers tocontact us with ideas and suggestions. An e-mail address isprovided for each staff member below, as well as their phoneextension. Call our main number toll free at (800) 624-8301and enter the appropriate extension at the prompt.

Dr. Richard [email protected]

Mary [email protected]

Trina [email protected]

Mark Kemp-Rye [email protected]

Kathy Jesperson [email protected]

John [email protected]

Jamie [email protected]

Julie Black [email protected]

Clement [email protected]

Zane [email protected]

Sheila [email protected]

Interim Executive DirectorPhone extension: 5514

Senior Program AdministratorPhone extension: 5511

Interim Communication DirectorPhone extension:

Editor Phone extension: 5523

Managing Editor Phone extension: 5533

Senior Project Coordinator, GraphicsPhone extension: 5505

Graphic DesignerPhone extension: 5397

Web DeveloperPhone extension: 5503

Program CoordinatorPhone extension: 5566

Engineering ScientistPhone extension: 5393

Administrative AssociatePhone extension: 5517

Special ThanksCathleen Falvey

On Tap Staff

group to tackle water quality problems, (2) methods tomeasure and assess watershed conditions, (3) how toturn this data into a strategic plan, and (4) techniques forputting the plan into action so that goals are met.

While these articles have their genesis in warmer monthspast, they are conceptually united in a vision for thefuture, as at least two of their titles suggest. Althoughrate increases are rarely popular, training programs arewoefully under-funded, capital planning is complicated,and the annual consumer confidence report can be aheadache, our systems, our communities, and our futuresare better because of these activities.

As always, we will augment the printedmaterial found in the magazine with additional information on our Web site(www.nesc.wvu.edu/ndwc). Look for the On Tap Online logo in the articles.

I wish you and yours a healthy and happy New Year, andencourage you to let us know how we can improve OnTap in 2007.

Regards,

Mark Kemp-RyeEditor


MARCH

APRIL

Sponsoring an event?

JUNE JULY

Water Quality AssociationAnnual Convention and Exhibition

March 27–31, 2007Orange County Convention CenterOrlando, FLPhone: (630) 505-0160Fax: (630) 505-9637www.wqa.org

National Association of EnvironmentalProfessionals Annual Conference

April 22–27, 2007Holiday Inn International ResortOrlando, FLContact: Donna CarterPhone: (863) 679-3852Fax: (501) 423-1701Email: [email protected]

American Backflow PreventionAssociation International Conferenceand Trade Show

April 30–May 2, 2007Silver Legacy ResortReno, NVContact: Shane DillardPhone: (979) 846-7606Fax: (979) 846-7607Email: [email protected]

American Society of Civil Engineers/Infrastructure Security Partnership

Annual Infrastructure SecurityConference

March 28–29, 2007Crystal City MarriottArlington, VAPhone: (703) 295-6408www.tisp.org

National Environmental HealthAssociation Annual EducationalConference and Exhibition

June 18–21, 2007Atlantic City, NJPhone: (303) 756-9090Fax: (303) 691-9490www.neha.org

American Water Works AssociationAnnual Conference and Exposition

June 24–28, 2007Metro Toronto Convention CentreToronto, ON Phone: (800) 926-7337 or (303) 794-7711Fax: (303) 347-0804 www.awwa.org/ace07/

National Association of CountiesAnnual Conference and Exhibition

July 13–17, 2007Richmond, VAPhone: (202) 393-6226Fax: (202) 393-2630www.naco.org

SEPTEMBER

OCTOBER

American Public Works AssociationAnnual ConferenceSeptember 9–12, 2007Henry B. Gonzalez Convention CenterSan Antonio, TXContact: Dana PriddyPhone: (800) 848-2792 or (816) 595-5241Fax: (816) 472-1610Email: [email protected]

Annual National Rural WaterAssociation ConventionSeptember 23–26, 2007Philadelphia, PAContact: Dawn MeyersPhone: (580) 252-0629Fax: (580) 255-4476www.nrwa.org

Water Environment FederationWEFTEC ‘06

October 13–17, 2007San Diego, CAPhone: (800) 666-0206 or (703) 684-2452Fax: (703) 684-2492www.weftec.org

If you are sponsoring a water-related event and wantto have it listed in this calendar, please send informa-tion to Mark Kemp-Rye, National EnvironmentalServices Center, West Virginia University, P.O. Box 6064,Morgantown, WV 26506-6064. You also may call Markat (800) 624-8301 or (304) 293-4191 ext. 5523 or e-mailhim at [email protected].

Photo by Edward Savaria, Jr., courtesy of www.pcvb.org

www.nesc.wvu.edu 7

The population of the U.S. has nearly doubled over the last 50 years butwater use has more than tripled. To promote more efficient use of our waterresources, the U.S. Environmental Protection Agency (EPA) has developed theWater Efficiency Leader (WEL) Awards. Chosen by a panel of national waterexperts and based on three criteria (leadership, innovation, and water saved),winners of the first WEL Awards are:

• TOTO USA (Atlanta)—Large Corporation/Industry—TOTO demonstratesleadership and innovation in water efficiency through their plumbingproduct development, manufacturing processes, and advocacy.

• Advanced Mobile, LLC (Seattle)—Small Corporation/Industry—Thismobile carwash company relies exclusively on sustainable and water-efficient practices.

• New York State Funeral Directors Association (Albany)—Organization/Teams/Associations—This group promotes an innovativetechnology to reduce the volume of water used in embalming from 120to five gallons.

• Southern Nevada Water Authority's Water Smart Program (LasVegas)—Utilities/Water Districts—The program is a collection of strategicinitiatives in conservation programming, including progressive policies,aggressive education, and substantial incentive programs.

• Bill Sartor of the San Antonio (Texas) Water System—Individual—Mr. Sartor has consistently demonstrated leadership and innovation inreducing water usage in his area of the country.

• State of Florida’s Water Reuse Program—Government/Military—Thisstate program is a model for efficient use of water on a statewide level.

“These water efficiency stars are shining examples of cooperative conserva-tion and innovative technology,” says Benjamin H. Grumbles, assistantadministrator for water. “EPA salutes these leaders for helping America savewater, money, and energy for families and communities.”

The WEL Awards seek to foster a nationwide ethic of water efficiency, aswell as to inspire, motivate, and recognize efforts that save water. The pro-gram allows EPA to document best practices, share information, and create anetwork of water efficiency leaders.

To learn more, visit EPA’s WEL site atwww.epa.gov/water/wel/and their water effi-

ciency site at www.epa.gov/watersense.

EPA Recognizes Leaders In Water Efficiency

Beer drinkers have long jokedthat kitchen sinks should pro-vide access to their favorite bev-erage. For a family in Norway,this fantasy became a realityearlier this year.

“We had settled down for a cozySaturday evening, had a nicedinner, and I was just going toclean up a little,” said HaldisGundersen, in a March 13, 2006,Associate Press story. “I turnedon the kitchen faucet and beercame out.” Meanwhile in the bardownstairs, bartenders werepuzzled by water coming out ofthe beer taps.

A plumbing mistake resulted in the bar’s beer hoses beingconnected to the water pipesgoing to the Gundersen’s apart-ment. Unfortunately, accordingto Gundersen in the AP article,the beer was flat and not tasty inthe least.


Think your water bill is too high? In November 2006,a Winston-Salem, North Carolina woman got 287 waterbills totaling nearly $20,000. According to an accountpublished in U.S. Water News Online, a computer glitchwas to blame and the city fixed the problem.

This Water Bill’s Too High

The United Nations (UN) has declared March

22nd each year to be World Water Day. This year’s

theme is “coping with water scarcity” and is the

third year of the UN’s International Decade for

Action, Water for Life. Learn more about World

Water Day at www.un.org/waterforlifedecade/.

Established by the 1996 Safe Drinking Water Actamendments, the drinking water state revolving fund(DWSRF) provides money to drinking water systemsthrough state primacy agencies to finance infrastructuresystems. For the current fiscal year, DWSRF funds total$341.5 million, up four million from FY2006.

DWSRF funds may be used in many different ways.The U.S. Environmental Protection Agency providesnumerous publications about the fund. Recently, theagency added the Drinking Water State Revolving Fund:Program Operations Manual (Provisional Edition) andthe DWSRF Guide to Understanding Audits to theDWSRF Web site (see below). The program emphasizesproviding funds to small and disadvantaged communitiesand to programs that encourage pollution prevention asa tool for ensuring safe drinking water.

According to EPA, “the nation’s water systems mustmake significant investments to install, upgrade, orreplace infrastructure to continue to ensure the provisionof safe drinking water to their 240 million customers.Installation of new treatment facilities can improve thequality of drinking water and better protect publichealth. Improvements are also needed to help thosewater systems experiencing a threat of contaminationdue to aging infrastructure systems.”

For more information about DWSRF loans andrequirements, visit the EPA Web site at www.epa.gov/OGWDW/dwsrf/index.html, or call the Safe DrinkingWater Hotline at (800) 426-4791.

EPA Publishes LoanInformation

The U.S. Environmental Protection Agency’s Region 3Environmental Finance Center (EFC) and the NationalEnvironmental Services Center are sponsoring a trainingprogram for small utility decision makers, officials, andmanagers. The pilot program will offer courses aboututility finance and management in Maryland andVirginia. The times and locations of this training will bedetermined over the next six months.

The training is designed to educate decision makersand nontechnical system personnel about managementtopics related to long-term sustainability of small utilities,and to offer a certificate of proficiency after completingthe program requirements.

For more information or to check dates of course offer-ings, contact Jean Holloway at (410) 632-1853 [email protected] or visit the Region 3 EFC Web site atwww.efc.umd.edu.

Sustainable InfrastructureTraining

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The Rural Development Utilities Service (RDUS) recently announced interest rates for water andwastewater loans. RDUS interest rates are issued quarterly at three different levels: the poverty linerate, the intermediate rate, and the market rate. Each has specific qualification criteria.

The rates, which apply to all loans issued from January 1 through March 31, 2007, are:

poverty line: 4.5 percent (unchanged from the previous quarter);

intermediate: 4.25 percent (down 0.125 fromthe previous quarter); and

market: 4.125 percent (down 0.125 percent fromthe previous quarter).

For this quarter, all loans will be obligated at the lower (4.125) rate. RDUS loans are administeredthrough state Rural Development offices, which can provide specific information concerning RDUSloan requirements and applications procedures.

For the phone number of your state Rural Development office, contact the National EnvironmentalServices Center at(800) 624-8301 or (304) 293-4191. The list is also available on the Rural DevelopmentWeb site at www.rurdev.usda.gov/recd_map.html.

Are you a company or individual that offers productsand services to small community water and wastewaterutilities? If so, you may be interested in being listed inthe National Environmental Services Center’sManufacturers and Consultants Database. To learn moreabout this service, call NESC’s technical assistance staffat (800) 624-8301 and select option “2.”

Attention Manufacturersand Consultants

www.nesc.wvu.edu 9

The National Ground Water Association encouragesyearly water testing and well maintenance duringGround Water Awareness Week. Just as you seasonallycheck your furnace or smoke detector batteries, spring isa good season to have an annual water well checkupbefore the peak water-use season begins.

For more information about Ground Water AwarenessWeek see www.ngwa.org/awareness/aware.cfm.

Ground Water AwarenessWeek, March 11-17, 2007

In October, the U.S. Environmental Protection Agency(EPA) finalized the Ground Water Rule. The compliancedate for the rule requirements is December 1, 2009,unless otherwise note.

The rule is intended to fosterincreased protection againstmicrobial pathogens in publicwater systems that use groundwater sources. According toEPA, the Ground Water Rule“establishes a risk-targetedapproach to target ground watersystems that are susceptible tofecal contamination, instead ofrequiring disinfection for all groundwater systems. The occurrence of fecal indicators in adrinking water supply is an indication of the potentialpresence of microbial pathogens that may pose a threatto public health. This rule requires ground water systemsthat are at risk of fecal contamination to take correctiveaction to reduce cases of illnesses and deaths due toexposure to microbial pathogens.”

For more information about the Ground Water Rule,visit EPA’s Web site about the topic at www.epa.gov/OGWDW/disinfection/gwr/regulation.html or call the National Environmental ServicesCenter technical specialists at (800) 624-8301 and select option “3.”

EPA Finalizes GroundWater Rule


National Watershed Coalitionwww.watershedcoalition.org

The National Watershed Coalitionis a membership organization madeup of national, regional, state, andlocal organizations, associations,and individuals, that advocate deal-ing with natural resource problemsand issues using watersheds as the

planning and implementation unit. Their Web site provides infor-mation about watersheds, legislation affecting watersheds, andvarious brochures and reports.

Natural Resources Conservation Servicewww.nrcs.usda.gov

The Natural Resources Conservation Service (NRCS), for-merly called the Soil Conservation Service, providesinformation for those involved in watershed planning and

source water protection.

According to the NRCS Web site, “communities and local gov-ernments work with NRCS state offices and local USDA [U.S.Department of Agriculture] Service Centers to help them protecttheir natural resources. NRCS also provides information on clima-tology, water management, watershed planning, and flood control.A coalition of state conservation agencies, The National Associationof State Conservation Agencies, provides guidance and operatesstate environmental, sediment control, and soil erosion preventionprograms. The Resource Conservation and Development programfocuses on improvement of quality of life achieved through naturalresources conservation and community development. NRCS canprovide grants for land conservation, water management, commu-nity development, and environmental needs in designated areas.”

The site features information on community planning, waterquality, water management, water supply, watershed protection,and flood prevention. Watershed planners will want to downloadthe National Watershed Manual (www.nrcs.usda.gov/programs/watershed/NWSM.html). Those involved with source water protec-tion should visit the National Water Management Center(wmc.ar.nrcs.usda.gov).

There are numerous Internet sites devotedto watershed issues. The sites marked witha are ones that National EnvironmentalServices Center staff find especially helpful.

www.epa.gov

The U.S. Environmental Protection Agency(EPA) provides a variety of information aboutwatersheds, watershed planning, and fundsfor undertaking watershed projects.

Fundingwww.epa.gov/owow/funding.html

Discussion Forumwww.epa.gov/watershedforum/

Toolswww.epa.gov/owow/watershed/tools/

Trainingwww.epa.gov/owow/watershed/wacademy/

Section 319 Nonpoint Source Program Grantswww.epa.gov/owow/nps/cwact.html

Targeted Watersheds Grants Programwww.epa.gov/owow/watershed/initiative

Watershed Approach Frameworkwww.epa.gov/OWOW/watershed/framework/html

The River Networkwww.rivernetwork.org

River Network is a national nonprofit organization working for clean andhealthy waters. The Portland, Oregon-based organization supports grassrootsgroups working for watershed protection. Their Web site includes a resourcelibrary, networking opportunities, and information about the Network’s serv-ices such as training and consultation.

The Chesapeake Bay Programwww.chesapeakebay.net

This program is a regional partnership of various state, federal,academic, and local watershed organizations that builds and adoptspolicies supporting restoration of the Chesapeake Bay. Their Web sitefeatures an information clearinghouse, publications, maps, and data.

www.nesc.wvu.edu 11

Center for Watershed Protectionwww.cwp.org

The Center for Watershed Protection is a nonprofit organization that provides localgovernments, activists, and watershed organizations around the country with thetechnical tools for protecting streams, rivers, and lakes. The center has created anddistributed a multidisciplinary strategy for watershed protection that encompassesplanning, restoration, research, site design, education, outreach, and training. The siteincludes a calendar of events, publications, listing of watershed projects, technicaltools for assessing and protecting watersheds, and a watershed quiz.

Infrastructure Security Training on the Webwww.dhs.gov/nipp

“The terrorist attacks of September 11, 2001, raised the nation’s awareness of the potential vulnerability of ourcritical infrastructure and key resources and of the need for a unified and coordinated approach to their protec-tion,” says Barbara Yagerman with the U.S. Department of Homeland Security’s (DHS) Office of InfrastructureProtection. “Uninterrupted operation of basic services, such as energy, communications, water, and transportation,and unbroken access to other goods and services used on a daily basis are essential to America’s security, safety,economic vitality, and way of life.”

Introduction to the National Infrastructure Protection Plan (NIPP) is a Web-based course developed by theDHS Office of Infrastructure Protection and the Federal Emergency Management Agency (FEMA) EmergencyManagement Institute. The course provides an orientation regarding the key concepts of the NIPP and is designedto meet the training needs of a wide range of government and private sector security partners involved in imple-menting infrastructure protection programs.

The course addresses the importance of protecting the nation’s critical infra-structure and key resources and provides an overview of many of the keyconcepts of the NIPP, including: the risk management framework, the partnershipmodel designed to facilitate coordination and cooperation between infrastructureowners and operators and the government, the networked approach to informa-tion-sharing, and the new risk-based approach to resource allocation. It describesthe 17 sector-specific plans that address the particular needs of each sector,including the water sector, and it underscores the opportunities and benefits ofparticipation.

The course is available free of charge and may be accessed through the EMIIndependent Study Web site at http://training.fema.gov/EMIWeb/IS/crslist.asp(select course number IS-860). The course can be taken for certificate credit or forinformation purposes only.


Each issue, we ask members

of the On Tap Editorial

Advisory Board to answer a

drinking water-related ques-

tion. We then print as many

responses as space permits.

The opinions expressed are

not necessarily those of NESC.

Editorial Advisory BoardJerry BiberstineSenior Environmental Engineer National Rural Water Association

Jenny BielanskiDrinking Water Utilities Team Leader EPA Office of Ground Water andDrinking Water

Rodney CokerTribal Utility Consultant (Retired) Indian Health Service

Mark CoyneAssociate Professor University of Kentucky

Frank DeOrioDirector of Municipal UtilitiesAuburn, NY

Kevin KundertInteractive Training Developer Montana Water Resources Center

Z. Michael Lahlou, Ph.D.Civil and Environmental EngineerHuntington Beach, CA

Lori B. LibbySenior Project Manager Center for Public Management and Regional Affairs Miami University of Ohio

Babu Madabhushi, Ph.D.Project EngineerURS CorporationMiami Springs, FL

Dale RalstonPresidentRalston Hydrologic ServicesMoscow, ID

Lisa RaysbyWater Department ManagerPeninsula Light Company, WA

Jay Rutherford, P.E.Water Supply Division DirectorVermont Department ofEnvironmental Conservation

Amy VickersEngineer and Water ConservationSpecialistAmy Vickers and Associates, Inc.Amherst, MA

YYoouu WWoonn’’tt WWiinn aa PPooppuullaarriittyy CCoonntteesstt

I may not be qualified to answer this questionbecause I’ve never been involved in the approvalprocess with the public service commission. However,

when I worked as an operator with the City of Helena,Montana, the city built a new surface water treatment

plant and almost doubled the rates. We were unpopular for a long, longwhile. It was relatively easy to do the math—projecting the costs anddetermining an appropriate water rate. It was just not popular nor easypolitically. When I look at rates for many small communities, I see it inno way reflects the real cost of operating the system. I think that peri-odic sanitary surveys that take an overall look at the operation are veryhelpful and small systems should use that three- to five-year interval tore-evaluate rates on a periodic basis and make needed adjustmentsalong the way instead of hitting customers with a 100 percent (or more)increase all at once.

Kevin KundertPresident and ChiefInstructional SystemsMechanic

eTRAIN ONLINE, Inc.

Many communities know thattheir water rates are too low,but they are reluctant to raiserates to appropriate levels. Afterall, higher fees are never popularwith customers. Another, oftenoverlooked, aspect of theseincreases is that a state regul-atory body usually mustapprove them.

Which is more difficult: raising the rates orgetting the increase approved by the statepublic service commission?

What are some ways to make implementingrate increases easier?

Q:

www.nesc.wvu.edu 13

Lisa Raysby, P.E.Water EngineerPeninsula Light Company

RRaaiissiinngg RRaatteess IIss NNeevveerr EEaassyy

In Washington, the procedure for increasing rates varies depending system ownership,as does the rate of success. The easiest process for getting rate increases approved hasbeen with our nonprofit managed systems. Typically, it requires meeting with boardmembers to discuss cost of service and necessity for a reserve account, and voting. Bycontrast, conducting a cost of service study and increasing rates and fees for our ownedsystems has been next to impossible, even though we have the ability to do it in-house.

As a struggling nonprofit water utility within a financially solvent electric company, ithas been extremely hard to propose a rate increase. Since the first rates were adopted in1996, there has been an increase in 2000 and another in 2003. The company had a con-sultant recommend the last rate increase. Our rates consist of a single base rate (notmeter size dependent) with six tiers (too many, in my opinion). Most customers arewithin the first two tiers, even during the summer.

Since the last rate increase, staff have had salary increases each year, gas prices contin-ued to rise, material costs increased, and interest expense paid on debt water owed thecompany more than doubled. We have also completed necessary significant capitalimprovements on several systems, all without an increase in rates or connection fees.Most recently, meter reading was outsourced at more than double the cost.

Investor owned systems have to submit annual financial reports and prepare cost ofservice rate studies to change their tariff (procedures, rates and fees) to the WashingtonUtilities and Transportation Commission (WUTC). Working with WUTC accountants is noteasy. In my opinion, they do not have a standard submittal process, nor are they clearabout what they want, but they have the ability to propose significant changes after lotsof time is spent developing proposed rate increases. WUTC is not as assistance-orientedas other state regulatory agencies. Despite the lack of technical guidance, we have suc-cessfully completed three tariff filings in five years.

To improve the rate increase process, I offer the following recommendations:

Connection fees and minimum base rates should be based on equivalent resi-dential units and meter capacity, respectively.

Tiers should be minimized and send a clear water conservation and efficiencymessage. Three easy tiers to explain to customers are ones that establish a rea-sonable winter and summer use, plus an excessive rate tier.

For nonprofit water systems, if the cost of service increases, rates shouldincrease proportionally. Not increasing rates only forestalls the inevitable andrequires that customers pay a higher future rate.

Utilities should consider adopting a reasonable annual increase reflective of thecost of living increase, along with immediately adopting surcharges for signifi-cant capital improvements that sunset once debt is paid off.

Rates should be paying down debt, if any, and build a reserve for replacingcapital facilities.

To the Editor,While reading through the summer On Tap, I

couldn’t help but be incensed at the article, “MakingWater Through Cloud Seeding.” Apparently, humanshave screwed up the environment so much that nowwe need to inject chemicals into the atmosphere toincrease the amount of snow that falls in the moun-tains of Arizona, Utah, and six other states toreplenish the water in the Colorado River.

Could it be that humans are taking too much waterfrom the Colorado River? To be used for what:Irrigating lands that were not meant to grow the cropsthat are grown on them? Watering grass in the heat ofthe Southwest? Washing cars? Flushing toilets with onetissue in them? To produce energy by damming upthe great Colorado for places like Las Vegas? To makeenergy for restaurants to run their air conditioning at65 degrees in the middle of summer?

I am sick of humans interfering with the environ-ment to such an extent that we resort to creatingsnow in the mountains. How about the animals thatlive in those mountains? What effect does this have onthem? Typically, humans, think of themselves, no sac-rifices for them, but everything else, including theenvironment must pay.

As for the news item titled “Concern forEnvironment Wanes,” maybe it’s because the politicalpundits, the news media, and our current Washingtonadministration all have it on the back burner. No onehears of mercury in the air and water. No one hears ofwolves in Alaska being shot, bison in Yellowstone andMontana being killed, mountain top mining blowingoff the tops of mountains in West Virginia causinghuge environmental catastrophes, sonar testing in theoceans causing whales to beach themselves, over-fish-ing in the oceans, entire lakes drying up, on and onand on. If the truth was on the front burner as muchas TomKat, we would all be better informed and con-cern for the environment would not be last on the list.

Karen Ash

Maumee, Ohio

Editor’s ResponseThank you for writing to On Tap. Obviously, we wish

that everyone had the utmost concern for the environ-ment. One of the themes that we’ve repeated often inour magazine over the years can be encapsulated byBen Franklin’s old adage “an ounce of prevention isworth a pound of cure.” With respect to specific newsitems, readers should keep in mind that we try to reportinformation related to drinking water. We aren’t neces-sarily advocating cloud seeding but thought it wassomething our readers should know.


Do you have a suggestion for improving this magazine or a great idea for anarticle we should explore? Do you have a question for our “Ask the Experts”column or a Web site that you find particular helpful? On Tap editors arealways eager to learn from you. Here’s how you get ahold of us:

Being a decision maker for a small water utility canbe a challenge. The course presented on this inter-active CD is designed to help water board membersand elected officials understand the basic principlesof public water system regulation, operation, plan-ning, budgeting, and communication.

The course material is clearly written and is accompa-nied by short videos and animated onscreen activities.Photos and illustrations add further visual aid. This user-friendly course contains over three hours of total trainingtime, but the user is free to navigate through the materialas he or she wishes. Viewers can also printout a completemanual or print the on-screen material at every window.

Basic principles and practical suggestions covering the funda-mental duties and activities of small utility boards are presented.From how to hold efficient meetings to how to set water rates,thiscrisply-produced computer program covers all the areas that smallcommunity officials need to do their jobs effectively.

Produced by the Montana Water Center, Montana State University –Bozeman, this CD is being distributed free through the NationalEnvironmental Services Center.

Small Utility Board Training CD#DWCDTR23

To order this CD and other NESC products call

www.nesc.wvu.edu 15

Mark Kemp-Rye, On Tap Editore-mail: [email protected]: (800) 624-8301 ext. 5523

Jamie Bouquot, On Tap Graphic Designere-mail: [email protected]: (800) 624-8301 ext. 5397


By Carl E. Brown, PresidentCarl Brown Consulting, LLC

Background photo of Pipestem State Park, WV, by Julie Black

www.nesc.wvu.edu 17

Gaining the Proper PerspectiveAccept for now that you, or people who came

before you, made decisions to under-invest in infra-structure, management prowess, and financialcapability. Why did they do this? Simple, really. On acurrent cost basis—read “keeping rates low”—it’scheaper to under-fund. We human beings normallygive current cost and the risk of losing somethingplenty of attention. But we give the potential forfuture gains little attention. That is why a few peoplegot rich investing in Wal Mart, Microsoft, and otherbig winners while the rest of us haven’t investedenough, early enough in our retirement programs sowe can just enjoy our golden years. We manage ourwater and sewer utilities the same way. Some peoplehave figured out how to place investment, return, andrisks in proper perspective. Most of us haven’t, but wecan learn. That brings us to user charge analysis.

What is user charge analysis? It is nothing morethan a decision-support tool that places investment,return, and risk in proper perspective. The analysisdoesn’t set your rates for you, but it does give you theinformation you need so you can make good invest-ment decisions for your system. While the specifictechniques of user charge analysis get very complex,the underpinning is just that simple.

If you analyze your rates regularly, adjust them asneeded, manage the systems well, and continually look for opportunities to make improvements, you areheaded for success. Do less and you are headed forproblems, maybe terminal problems. However, this isnot to say you need to learn how to analyze yourown rates.

Rate Setting Is Risky BusinessIf you don’t have a strong background in rate

analysis, you run a moderate risk of doing the mathwrong. More significantly, you run a huge risk ofmaking some wrong assumptions along the way,some of which can be crippling or fatal.

How do you reduce your risk of loss? Control andreduce your big risks by having an experienced analystdo the big, all-encompassing analyses for you. Mostsmall- to medium-sized systems need this level of analy-sis every two to five years. In years following the biganalysis, simply compare your actual financial perform-ance with what the analysis predicted, then adjust yourrates accordingly. Voila! You just achieved the best of allworlds: low investment, low risk, and high return.

t’s all about the money. It has always been allabout the money. If it weren’t all about themoney, all water and sewer systems would rungreat all the time. We would have no need for

National Environmental Services Centers, grant andsubsidized loan agencies, rural water associations, andall the rest. We would have nothing but well-funded,self-sustaining water and sewer systems cranking outgreat service round the clock. And how would theycome to be well funded?

Great rates.

If rate setting were easy, all systems would havegreat rates. Well, I’m here to tell you that you canhave great rates and it doesn’t have to be hard, onyour part.

This article will outline a thought and action processthat uses hard facts for making good decisions abouthow to set rates properly. Maybe you will end updoing the analysis yourself, especially if you representa very large or a very small system. Otherwise, youwill hire a specialist to do the heavy lifting for you.

Just the FactsWhether you decide to analyze rates yourself or use

outside help, here are some facts to consider:

Water and sewer utilities are businesses. Ifrun and financed well, they become invisi-ble wonders providing excellent service. Ifnot, they become very visible sources oftrouble for a community.

All decisions are investment decisions. Youare making them all the time—sometimeswell, sometimes not.

All investment decisions boil down to threebasic questions: What must I invest? Whatreturn do I expect? What is the risk that Iwon’t get what I expect? Such decisionsshould be supported with data and esti-mates of outcomes.

According to the U.S. EnvironmentalProtection Agency, water and sewer utilitiesin the U.S. are facing a funding shortfall ofhundreds of billions of dollars by 2020. Thefederal and state governments will bail outa few ailing systems, at least temporarily.Some systems will actually fail. (Failureswill probably occur over a long time so wewon’t really notice it.) Some will be gob-bled up by other systems or companies.Some will do the gobbling.

Your system is going to (and maybe already has)hit a funding shortfall. Unless you have been callingthe shots for your system for 20 or 30 years, it’s notall your fault. But the final failure will be blamed onwhoever is in charge at the time. Will that be you?

The articles “Proper Rates are Critical forFinancial Health” and “Increasing WaterRates: How are Public Service Comm-issions Involved?” are available on theNational Environmental Services Center

Web site at www.nesc.wvu.edu/ndwc.


Now you’re thinking, “OK, what is this high returngoing to cost me?” Of course, that all depends onyour specific situation, but the following should giveyou a basic idea of what to expect in a professionalrate analysis.

A professional rate analysis may result in the feescollected by a 500-user water or sewer system to gofrom $150,000 per year to $202,500 during the yearafter the analysis. That is an increase of $52,500 or 35percent. The system would pay the specialist about$4,000 for the analysis, or 7.6 percent of the firstyear’s extra revenues. After paying the analyst, thesystem would net an additional $48,500 in its firstyear after rate adjustment and the full $52,500 eachyear after that until the next analysis is done.

In this scenario, the first year return on investmentwould be more than 1,200 percent and would go upby more than 1,300 percent each year after that.These returns do not include any future inflationaryincreases the analyst would probably recommend.(The first year return on investment for smaller sys-tems is normally a few hundred percent on the lowend.) In other words, the system will pay to the ana-lyst for about 28 days the additional rate revenuesthat the analyst enabled them to collect. From day 29forward the system will pocket the rest of the addi-tional income.

If you are a single person with noheirs and no one who would be

affected by your death, you really haveno need for life insurance. We buy insur-

ance to protect from the risk of loss thosewe would leave behind.

A father and mother of five small children have alarge need to protect their heirs. While they are

not at high risk of dying, the potential cost to theirchildren is great. If they happen to be wealthy, theydon’t need insurance. They are self-insured by theirown means. If these same parents and children havelittle wealth, life insurance is exactly what they need.

Water and sewer systems have much at risk. Thesesystems are expensive to build, operate and maintain.They have many “heirs” (current ratepayers and one ormore generations of ratepayers to come) who dependon those systems. Setting your rates incorrectly is nota fatal action in itself but it can lead to other fatal orcrippling actions.

Of course, there is no free lunch. The ratepayers paythe cost whichever way you go. However, as a result ofthe analysis, the ratepayers get a system that is moreassured of proper funding, and that makes excellent oper-ations and service to them possible.

The Pain ThresholdA few of you got stuck on the “fee increase of 35 per-

cent” statement above. Here is why many systems need toraise their rates and fees about 35 percent.

The typical small- to medium-sized water or sewer sys-tem’s management operates on the “pain threshold”principle. All people have several thresholds of pain.Water and sewer systems are run by people so they havethresholds, too. Most decision-makers will try to “suck itup” in the form of making their operators scrimp on oper-ating costs, equipment repair and replacement, and thelike before they will consider undergoing the pain ofpushing through a rate increase. For many small systemsthat threshold equates to about a 20 percent rate increase.The upper threshold is about 45 percent. Beyond that,most managers just can’t stand the pain of scrimping anylonger, so they fix the problem: they raise rates.

When management finally succumbs to the pain andraises rates, they usually don’t raise rates all the way up towhere they need to be. They stop 10 percent or so shortin an effort to go easy on the ratepayers, salvage their re-election bid, or whatever. In addition, everyone smarts sobadly from the rate increase pain that no one wants to gothrough that again for several years, if ever. Inflation hap-pens and new things need to be built, and, thus, thedownward spiraling cycle never really stops. We need tobreak this cycle and chart a new rate setting course.

How can you achieve low investment, low risk, andhigh return in a user charge analysis? You must select theright specialist, invest wisely (pay an appropriate fee), andguide and support them well. Fortunately, this part of theprocess is easy and pain-free for anyone who has theauthority to do it, who has their heart in the right place,who is well reasoned, and who can follow a step-by-stepprocess.

The Politics of Rate IncreasesWhy don’t systems already have great rates? Consider

this final fact. Attempting to do the analysis and proposethe big catch-up rate increase on your own could endyour office tenure or career. This risk is real. The mayorof one of my recent client cities got voted out of officeover a rate increase he proposed a few months ago.Trying to serve his city to the end, he hired me to do ratestudies to get to the bottom of their rate problems beforehe left office. I had the benefit of lots of data, numbercrunching, and experience to determine the proper struc-ture for this city’s rates and fees. But the mayor actuallygot the funding level about right in the adjustment he pro-posed. Thus, my results proved him to be mostly right onthe rate adjustment issue, but he was still wrong on thegetting re-elected issue.

How do you get great rates and not get voted out ofoffice or get fired? Try this. (It’s weasel but it works.) Getthe right specialist with broad shoulders to analyze yourrates, then blame him or her for the rate increases theysay you have to adopt. Raise your rates all the way up towhere the analyst says. At the same time, tell your

Continued on page 35.

www.nesc.wvu.edu 19

ine Haven is a small town in the northeast corner of Wyoming near Devil’s Tower and the Black Hills. Over the last fewyears, Pine Haven has been discovered by retirees, summer home buyers, and energy field workers, and the populationhas grown by a whopping 12 percent per year.

You might think that Pine Haven’s water and sewer systems are rolling in the cash: rapid growth to fuel tax receipts and raterevenues, but you’d be wrong. Their rates have been too low for many years. In fact, they are not even high enough to coverall their current operating costs. Twelve percent annual growth also means flow through the water and sewer systems dou-bles about every six years. Just try to keep your system providing a respectable level of service faced with that kind ofgrowth. Pine Haven’s debt service to fund new construction is slated to balloon.

Things looked dire for the town. The ratepayers thought they would really take it on the chin with unaffordable rate increases.

A water and sewer rate analysis revealed the facts of the situation and pointed the way to solutions. Recent rate increasesgenerally fixed the financial problems on a gross revenue basis, but they weren’t getting the right amount of revenue fromusers of various sizes. In other words, the rate structures were not very equitable. Rates still needed to go up to the high-endusers. But some low-end user’s rates actually needed to go down. The analysis proposed new rates that will now be adequatefor a long time, fair to the ratepayer classes, and affordable. Best of all, assured adequate funding will enable the city to con-tinue providing good service and accommodate continued growth.

After the analyses were complete, Pine Haven officials remarked that several other towns they know of are worse off than PineHaven was before rate adjustments, but those towns show no interest in fixing those problems. Alas, they have experienced amost common situation—cities and districts are in bad shape and they don’t know it, or they sense it but they don’t want toface the cold hard facts. This problem won’t fix itself, as another client discovered the hard way.

This city, which will remain nameless, was facing financial ruin, literally. Its total annual budget was about $12 million.Toward theend of fiscal year 2006 it became clear the city would bring in only about $10 million.The numbers are big but the math is easy.Emergency analyses showed many things that needed to be changed in this city. Chief among them, their water and sewer rateswere too low.Their operating costs were about $3.5 million per year but revenues only totaled about $2.6 million.That’s a shortfallof about $1 million every year to cover operating costs and several hundred thousand dollars more to cover debt service forfuture capital improvements that are needed. So, rates had to go up substantially, but they remained affordable.

Between those rate increases and some cost saving measures, the city will be fine in about two years. Unfortunately, manycity employees had to lose their jobs, and lots of needed projects have been postponed to get the city out of this fix. Theratepayers always pay. In this case it will be in reduced service for several years.

Read more about Pine Haven at www.carlbrownconsulting.com/PineHaven.htm.

Editor’s Note: Many experts see watershed planning and management as being the most effec-tive way to deal with water and wastewater issues. In On Tap during 2007, we will present afour-part series about watersheds that will provide an overview about how to start a watershed

initiative, how to assess problems, how to develop a workable plan, and how to implement thesewatershed efforts. This article is the first of the series.


Getting Started • Assessing Your Watershed • Crafting a Plan • Putting the Plan to Work

www.nesc.wvu.edu 21

aybe the local creek is fouled bywastewater from straight pipes. Ormaybe acid mine drainage has killed

all the wildlife in the waterway. Perhapsrunoff from agricultural fertilizers and pesti-cides is to blame. Whatever the case, manycommunities around the country are lookingto a watershed approach as a way to addressongoing pollution problems in their rivers,lakes, and streams. It’s a strategy that makes alot of sense, given the nature of water pollu-tion in the decades after the Clean Water andSafe Drinking Water Acts were first passed.

According to the U.S. EnvironmentalProtection Agency (EPA), “Thirty years ago,most water quality problems were linked todischarges from factories and wastewatertreatment plants. Today, however, 40 percentof our nation’s waters do not meet theirwater quality goals from streets, farms, mines,yards, parking lots, and other nonpointsources of pollution. Solving these problemsrequires the commitment and participation ofstakeholders throughout our communities.”

Although the specifics of the water qualitysituation will vary from place to place, onefeature that nearly all successful watershedefforts have in common is a core group ofindividuals with a commitment to achievinga solution.

Getting StartedEvan Hansen has worked with water qual-

ity and watershed projects in Massachusetts,California, and West Virginia. As a consultantwith Downstream Strategies and president ofthe Friends of Deckers Creek watershedgroup in Morgantown, West Virginia, Hansenunderstands that most watershed effortsbegin with a problem. (See the article onpage 25 for more information about theFriends of Deckers Creek.)

“Watershed groups usually start because asituation, such as pollution, has developed tothe point that it can no longer be ignored,”he says. “Beyond recognizing that there’s aproblem, though, is the realization thatsomething can be done. The real workbegins when a group makes the decision topull together to find a solution.” Ideally, awide cross-section of the community willwant to be involved. But Hansen observesthat these projects often fall on a “superstarvolunteer” who is willing to devote a greatdeal of time to the cause.

By Mark Kemp-Rye,On Tap Editor

For an introductory articleabout watersheds, see thearticle “Watershed ApproachHelps Mend Waterways” onthe NESC Web site at

www.nesc.wvu.edu.


Some organizations refer to theleader of this sort of project as a“sparkplug,” because he or sheprovides the motivation to getthings moving. “The ‘sparkplug’ isthe indispensable ingredient for acommunity project,” saysChristopher Conway with SmallTowns Environment Program andone of the authors of The Self-Help Handbook for Small TownWater and Wastewater Projects.“This is the person or persons—sometimes there are two or three,but rarely more than that—whotakes responsibility for galvaniz-ing support for the project anddefining it in terms of local vol-unteers and other resources thatwill get the job done.

“This does not mean that thesparkplug has to do everythinghim or herself,” Conway contin-ues. “Rather, the sparkplugenergizes and organizes otherresidents who bring their timeand talents to the endeavor.”Because a project like watershedrestoration can be a long-termendeavor, this person should alsohave a strong commitment to theeffort and the tenacity to see itthrough.

Once a problem has been iden-tified, the core team faces severaltasks. (See the sidebar above for ato-do list.) Basically, the groupmust answer a series of questions.How will the group be organized?

What are the initial goals of theproject? What is the geographicscope? What are the community’sconcerns and how will they beaddressed? Who are some likelypartners? When and how will thelarger group of stakeholders beinvolved? What information aboutthe watershed already exists? Ofcourse many things will changeover the duration of the project.At this stage, however, the groupshould have a clear sense of whoit is, what it hopes to accomplish,and how it can involve others toachieve its goals.

According to the User’s Guideto Watershed Planning inMaryland, “The first step in thewatershed planning process ana-lyzes watershed conditions todevelop clear consensus amongstakeholders on the goals, objec-tives, and indicators that willguide watershed planning. Theprocess starts by examining theexisting regulatory, programmatic,and scientific information thatwill influence the planningprocess. The core team shouldalso consider its local capacity,existing data, and stakeholderconcerns when setting goals.”

Hansen recommends getting asmuch information as possible asearly as possible. Usually, awealth of information can befound in federal, state, and localgovernment studies, as well assources in the community such asnewspapers and environmentalgroups. “Don’t waste time andresources reinventing the wheel,”Hansen says. “Use available datato better understand the issuesand to set realistic goals.”

The More the MerrierThe prevailing wisdom is that

watershed groups should involvestakeholders (e.g., interested citi-zens, community groups,government agencies) from thebeginning. Keep in mind, how-ever, that unless you have someidea of what you’re doing andhow you intend to do it, meetingswill lack focus and potential sup-porters can become disillusioned.As outlined above, the core groupshould perform certain tasksbefore opening up the process.

The first part of a watershed management plan is to get an idea of“where we are now and where we want to go.”

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Identify the driving forces.

Identify the geographic scope of the effort.

Identify the community’s key issues and goals.

Determine the level of stakeholder involvement needed.

Form partnerships after deciding who to include initially.

Itemize goals and objectives for addressing communityconcerns.

Develop a problem statement regarding priority issues tobe investigated, assessed, and managed during this partof the process.

Conduct outreach on how the approach will be carriedout and how stakeholders can participate.

Source: U.S. Environmental Protection Agency, Engaging and Involving Stakeholders in Your Watershed

www.nesc.wvu.edu 23

“Once you’ve determined whyyou’re undertaking a watershedplanning or management initiative,it is important to examine yourorganization’s internal goals andobjectives regarding the project,”the Center for WatershedProtection notes in A User’s Guideto Watershed Planning inMaryland. “Addressing this issuebefore involving stakeholders willhelp you determine which stake-holders need to be involved basedon your goals and objectives.”

Nevertheless, stakeholdersshould be involved as early as islogical and feasible. “A largergroup of people will have a largerset of ideas and more approaches,which can lead to better solu-tions,” Hansen says. “The moreresources you have available to theproject, and the more buy-in youhave from people and groups inthe community, the greater yourchance for success.”

EPA strongly encourages partici-pation from the community in thebroadest sense. In the guideEngaging and InvolvingStakeholders in Your Watershed, theagency presents a compelling argu-ment: “The move towardintegrated, holistic watershed man-agement has meant that moreattention must be paid to factorsbeyond the water body itself—howland is used, what type of vegeta-tion or other cover it has, and howit is managed,” EPA notes. “Such anapproach requires the involvementof landowners, developers, farmers,urban government, homeowners,recreational groups, and other con-stituents in the watershed if realprogress is desired.”

Related to stakeholder involve-ment is getting help throughpartnerships with other organiza-tions. The basic idea is to get avariety of people from differentgroups working on the project.When crafted correctly, partner-ships can:

The Center for Watershed Protection has identified six primaryreasons that watershed plans fail:

For more information aboutworking with stakeholdersand message development,see the articles “GettingCitizens Involved” and

“Accentuate the Positive” onthe NESC Web site at www.nesc.wvu.edu.

Source: The Center for Watershed Protection

Photo by S

cott Bauer, w

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.ars.usda.gov

Planning activities were conducted at too great a scale.

The plan was a one-time study rather than a long-termmanagement process.

Stakeholder involvement and local ownership werelacking.

The plan skirted land-use/management issues in thewatershed.

The document was too long or complex.

Recommendations were too general.


• further increase participationand buy-in;

• supply more information forthe project; and

• provide more resources tothe project, in terms of vol-unteers and potentialrelease time for employeeswith similar duties (e.g.,state workers).

Hansen reports that state agen-cies will, occasionally, devote stafftime to help watershed projectsonce they are up and running.“This kind of assistance can beextremely helpful,” he says.

Partners that might be involvedin a watershed project include:state agencies (e.g., departmentof environmental protection,community development offices);nonprofit services providers (e.g.,the National EnvironmentalServices Center, the RuralCommunity AssistancePartnership); environmentalgroups (e.g., Sierra Club, TroutUnlimited); extension service (theuniversity-based USDA programwith offices in every county inthe U.S.); and local businesses(e.g., banks, outdoor recreation).

Getting the Word OutWe live in the “Information

Age,” but many worthy projectsflounder because participantsdon’t adequately address commu-nications efforts. The savvywatershed group will create acommunications plan and con-sider ways to publicize theirefforts in the community.

According to Model Institutionsfor Excellence’s CommunicationsCookbook, a good communica-tions plan should include:

• Goals—Define clearly whatthe watershed group wantsand plans to accomplish.

• Audience—Who is thegroup trying to inform?

• Messages—What does thegroup want the audience toknow? Carefully thinkthrough what the content ofmessages will be.

• Implementation—How willthe group convey messagesto their audiences? What isthe best way to achievethese goals?

• Materials—Develop materi-als that will clearly state themessage and capture theaudience’s attention.

• Outcomes—Inform the pub-lic about what the expectedoutcomes are of plansimplemented by the group.

Once you feel comfortablewith your communications plan,it’s time to let people know whatyou’re doing. Getting the wordout can be accomplished in anumber of different ways:

• Newsletters—If there’senough interest in a project,a newsletter can be invalu-able. These range frommulti-page, commerciallyprinted productions to two-sided photocopies(remember to leave roomfor the mailing address).

• Web site—More and more,communities are turning tothe Internet to post informa-tion. Setting up a Web sitehas never been easier. Onceit’s up and running, updatescan be made and there areno printing or mailing costs.

• Cable—Most cable televi-sion companies have achannel devoted to commu-nity events. This is typicallya free service.

• TV and Radio—Radio andtelevision stations makepublic service announce-ments about public events.

Most watershed projects develop as a way toaddress a problem. But it doesn’t have to be that

way.“The most compelling reason to createwatershed plans is because small communi-

ties often have an excellent opportunity toprotect their water resources prior to devel-opment rather than trying to restore themafter degradation of water quality hasoccurred,” observes Chris Swann, watershedplanner with the Center for WatershedProtection.“A local watershed managementplan is arguably the best and most com-

prehensive tool to protect streams,lakes, and estuaries from the cumula-

tive impact of land development.”If your community is blessed

with excellent water quality,a watershed organization

might provide a goodmechanism for keep-ing it that way.

Photo by Pedro Ramirez Jr, www.fws.gov

Continued on page 26.

For more information aboutland-use planning andwatersheds, see the article“Land Conservation” on the NESC Web site at

www.nesc.wvu.edu.

ocal legend has it that Deckers Creek was one of the finest trout streams in the East duringthe 18th and early 19th centuries. By the end of the 20th century, though, the creek, which

runs through two counties in northern West Virginia, was a stinky, orange mess. Fouled by acidmine drainage, industrial waste, and raw sewage, Deckers was categorized “severely impaired” by the

state Department of Environmental Protection and, for most of its length, nearly devoid of life.

In 1995, a group of kayakers, rock climbers, and other environmentalists formed the Friends of DeckersCreek (FODC) to address the pollution problems. Initial activities included an Adopt-a-Highway program

and trash clean-ups that removed literally tons of waste from the watershed. Early on, the FODC launchedCarpFest, an annual community picnic and fundraiser that continues to this day.

By the late 1990s, group members had conducted various water quality studies and the state of West Virginiahad kicked in a grant of $5,000 to help these efforts. By the group’s 10th anniversary, they had secured a

$200,000 U.S. Environmental Protection Agency grant and commitments from the state and the U.S.Natural Resources Conservation Service for $10 million to address acid mine drainage cleanup.

Along the way, the FODC forged key partnerships with state government, nonprofit environ-mental groups, and West Virginia University’s National Mine Land Reclamation Center. In

2000, FODC was incorporated as 501c(3) organization and held its first membership drive.

For residents of the area, the group’s efforts have made a noticeable difference. Peoplenow enjoy biking along a rail/trail that parallels the creek and other outdoor enthusi-

asts are visiting the area. As FODC President Evan Hansen likes to say of thecreek, “Ten years ago we were picking up trash. Ten years from now we’ll befishing in it.”

To learn more about the Friends of Deckers Creek, visit their Web site atwww.deckerscreek.org.

www.nesc.wvu.edu 25

Editor’s Note: In each segment of the four-part series aboutwatershed groups, we’ll show how the Friends of Deckers

Creek, a successful watershed organization in West Virginia,has implemented the ideas presented in their restoration efforts.


• Local Media—Local talkshows are often willing tohost a show about thingslike watershed restoration.Similarly, the local newspa-per will be interested inrunning a story about theproject.

One of the keys to effectivecommunication is to get the mes-sage out in as many formats aspossible and to repeat the messageas often as possible. You neverknow where or when someonewill hear what you’re saying.

Closing ThoughtsBy the end of this stage of the

project, the fledgling watershedgroup should have a core groupof committed volunteers, a visionfor what needs to be done, a listof desirable stakeholders andpartners, a communications plan,and willingness to do the workthat lies ahead. A flexible strategyand tactics will, therefore, comein handy.

Unfortunately, there is no blue-print for designing andimplementing watershed plans.As A User’s Guide to WatershedPlanning in Maryland notes,“Each local watershed is unique,with a different combination ofimpacts, planning objectives,development pressures, stake-holders, and local protectioncapacity. Consequently, water-shed planning is alwayssomewhat improvisational: aunique sequence of planning

methods is applied to arrive atthe desired outcome.” Manythings will change and new chal-lenges will emerge as the projectdevelops. In reality, the best peo-ple to understand what will workin a community are the peoplewho live in that community.

What must drive these efforts,though, is an unwavering com-mitment to do what it takes tosave the watershed. When youencounter difficulties, as youinevitably will, keep in mind thewords of the anthropologistMargaret Mead: “Never doubt thata small group of thoughtful, com-mitted citizens can change theworld. Indeed, it is the only thingthat ever has.”

For More Information Several watershed Web sites are

featured on pages 12 and 13 inthis On Tap and on the NESC Website at www.nesc.wvu.edu. A User’sGuide to Watershed Planning inMaryland may be downloadedfrom the Maryland Department ofNatural Resources Web site athttp://dnr.maryland.gov/water-sheds/pubs/planninguserguide/UserGuideCover-Ack.pdf and the EPAmanual Engaging and InvolvingStakeholders in Your Watershedmay be found at www.epa.gov/-owow/watershed/outreach/documents/stakeholderguide.pdf.

The League of Women Voters(LWV) publishes Strategies forEffective Public Involvement:Drinking Water SourceAssessment and Protection, whichis available free-of-charge fromthe National EnvironmentalServices Center (NESC). To orderthis book, call (800) 624-8301 or(304) 293-4191, or [email protected] andrequest item # DWBLPE75. Tolearn more about the LWV and

the efforts to promote safe drink-ing water and publicparticipation, visit their Web siteat www.lwv.org or write to 1730 M Street, NW, Washington DC,20036, or call (202) 429-1965.

NESC the “Training SkillsHandbook” that explains howadults learn—an important con-sideration for planning publicparticipation. The 59-page bookcosts $8.50 plus shipping andhandling, and may be orderedby calling (800) 624-8301 or bysending an e-mail [email protected]. Requestitem # TRBKTR13.

ReferencesCenter for Watershed Protection.

2005. A User’s Guide toWatershed Planning inMaryland. MarylandDepartment of NaturalResources.

Conway, Christopher M. and JaneW. Schautz. 1995. The Self-HelpHandbook for Small TownWater and Wastewater Projects.New York: The RensselaervilleInstitute.

Model Institutions for Excellence.2002. CommunicationsCookbook. University ofTexas–El Paso.

U.S. Environmental ProtectionAgency. Date unknown.Engaging and InvolvingStakeholders in YourWatershed. Washington, DC:U.S. EPA.S

For more informationabout public relations,see the article “Commun-icating Your Message” onthe NESC Web site at

www.nesc.wvu.edu.

On Tap EditorMark Kemp-Ryelives in theDeckers Creekwatershed, part ofthe Monongahela

River sub-basin, in turn, part ofthe Ohio River basin.

Continued from page 24.

The second article in the water-shed series—coming in theSpring 2007 On Tap—looks atdifferent ways to assess the healthof a watershed, including the useof existing information and fieldmeasurement techniques.

Photo by Scott Bauer, www.ars.usda.gov

www.nesc.wvu.edu 27

oing a good job in the drinking water utility business canbe a thankless task. As long as the water faithfully poursout of your customers’ taps and everybody’s white laundry

remains that way, most people will fail to recognize all theplanning and hard work that goes into providing a safe,affordable, and reliable supply of drinking water.

Yours is a job that goes on behind the scenes, until awater main breaks or it’s time for a rate increase. Up untilthat time most people pretty much take their drinking waterfor granted.

This is why it is important that systems large and smalltake advantage of every opportunity to communicate withtheir customers and let people know about all the hardwork that goes into keeping their water safe and secure.As you go about putting together your annual ConsumerConfidence Report (CCR) over the coming days, why nottake advantage of this opportunity to tell your customers alittle about what is going on behind the scenes at theirlocal water treatment plant.

The ABC’s of the CCRThe CCR is the centerpiece of the right-to-know provi-

sions of the 1996 Amendments to the Safe DrinkingWater Act. Under these amendments, all communitywater systems serving at least 25 year-round customersare directed to create an annual report on the qualityof the drinking water they produce

While a CCR doesn’t have to be fancy, both stateand federal guidelines require that they contain keyinformation including:

Water System Information—Provide the name,and address of the water system, and the phonenumber of the person who can answer customer’squestions about the report. Also provide informa-tion about public participation opportunities(times, dates, and locations of board meetings,etc.) and information for non-English speakingcustomers (if necessary).

The Source of Your Water—List the name andlocation of water sources used by your system,provide information about where and how toobtain a copy of the most recent source waterassessments completed by your system, andinclude information about significant sources ofcontamination that could potentially impact yoursystem’s water source.

www.nesc.wvu.edu 27


Definitions—Provide explanations for:

• Maximum Contaminant Level(MCL): The highest level of con-taminant that EPA allows indrinking water

• Maximum Contaminant LevelGoal (MCLG): The level of con-taminant in drinking water belowwhich there is no known orexpected health risk

• Maximum Residual DisinfectantLevel (MRDL): A level of disin-fectant added for water treatmentthat may not be exceeded at theconsumer’s tap without an unac-ceptable possibility of adversehealth effects

And, other definitions as requiredby your state.

Detected Contaminants—Develop asummary of data on all detected-regu-lated and unregulated-contaminants;known or likely source of eachdetected contaminant with anMCL/MRDL; a description of potentialhealth effects related to the contami-nant; information onCryptosporidium, radon, and othercontaminants as required by eachstate; a statement showing compli-ance with other drinking waterregulations; an explanation of anyviolations, potential health effects,and steps taken to correct the viola-tions; and an explanation of anyvariances/exemptions that may applyto your water system.

Required Educational Material—Provide an explanation ofcontaminants and their presence indrinking water, a warning for vulnera-ble populations aboutCryptosporidium, and informationalstatements on arsenic, nitrate, and leadas required in your state.

The deadline for the annual distribu-tion of the CCR to your customers andyour state primacy agency is July 1.Your report should cover from January1 to December 31 of the previous cal-endar year.

It’s important to remember that this isnot a comprehensive list of informationrequired in your system’s CCR. Be sureto check with your state primacy agen-cy to learn what specific information isrequired in your neck of the woods.

Build Confidence with Your CCRThe CCR is one of the simplest and

most effective tools that you have togenerate communication with yourcustomers. Think of it as a primeopportunity to shine a little light on all

the hard work that you do each andevery day.

Depending on how much spaceyou have left after listing any and allviolations that occurred over the pre-vious year (and we hope that youhave plenty of space left), take sometime to write a few paragraphs aboutany current projects that your systemis working on or successes that you’vehad over the past year. Remember, aCCR is an educational tool and is agreat way to educate your customerson the job that you do.

One good way to drive home thenotion that a safe and reliable sourceof drinking water is clearly a greatvalue is to offer up a few vital com-parisons, such as:

Lipton Ice Tea 16 oz for $1.19 =$9.52 per gallon

Diet Snapple 16 oz for $1.29 =$10.32 per gallon

Evian (water) 9 oz for $1.49 =$21.19 per gallon

STP Brake Fluid 12 oz for $3.15 =$33.60 per gallon

Pepto Bismol 4 oz for $3.85 =$123.20 per gallon

Vicks Nyquil 6 oz for $8.35 =$178.13 per gallon

Whiteout 7 oz for $1.39 = $254.17per gallon

Absolut Vodka 59.3 oz for $26.99 =$58.26 per gallon

Cover Girl Nail Polish 0.4 oz for$2.79 = $892.80 per gallon

Good Ol’ Tap Water = average $0.05per gallon

And best of all, unlike the otherproducts listed here, the water you pro-vide is delivered straight to their house!So don’t hesitate to gently remind yourcustomers of this simple fact.

Savvy water systems, public servicedistricts, and sewer systems know thattheir success depends, to some extent,on good relationships with their cus-tomers—and their communities. So,go ahead and take advantage of thisopportunity to create a little good PRwhile you have the chance.

Remember, the EPA gives you quitea bit of flexibility when it comes to

the design of your CCR. So why notspend a few extra dollars and add anextra page to your next CCR lettingyour customers know what’s going ondown at the treatment plant.

A Little Help From the EPAWhile the thought of producing a

CCR might seem daunting, rememberthat you aren’t alone. EPA hasdesigned CCRiWriter to help youalong. CCRiWriter is a Web-based pro-gram that allows water systemsoperators or designated personnel toenter data and generate a CCR.

This program walks users through allthe required sections of the CCR, helpsyou convert lab results, and allows youto insert and edit the EPA’s recom-mended text into your own report.

Once you are done, many systemselect to go ahead and publish their CCRon the EPA’s Web site for their cus-tomers to view. It is also a great placeto go and view the CCRs of other sys-tems as you prepare to make your CCReven better in the coming years.

For More InformationEPA has other CCR-related resources

on their Web site, including:

• The CCR Quick ReferenceGuide—www.epa.gov/safewater/-ccr/pdfs/quickrefguide_ccr.pdf

• CCRiWriter—www.ccriwriter.com

• CCR Fact Sheet—www.epa.gov/safewater/ccr/ccr-fact.html

• Manual for Preparation ofDrinking Water ConsumerConfidence Reports—www.state.tn.us/environment/-dws/pdf/Epadraft.pdf

Check to see if your system’s CCR islisted on the EPA Web site (or addyour CCR if it is missing) by visitinghttp://yosemite.epa.gov/ogwdw/ccr.nsf/America?OpenView.

The National EnvironmentalServices Center offers a booklet withinstructions about writing a CCR forsmall systems without computeraccess. To order this booklet, call(800) 624-8301 or [email protected] and requestproduct number DWBLMG40.

This article was adapted from TheSafe Drinking Water Trust e-Bulletin, a free e-mail bulletin about security,regulations, and safe and efficientoperation of small water and waste-water plants. Developed by the RuralCommunity Assistance Partnership,the services is available atwww.watertrust.org.S

The article “CommunicatingYour Message: GoodPublic Relations Makesthe Job Easier” is availableon the National Environ-

mental Services CenterWeb site at www.nesc.wvu.edu/ndwc.


www.nesc.wvu.edu 29

o you have a capital improvements plan(CIP)? Is it really a plan or is it a list of proj-ects you hope to do over the next several

years? How often is the plan updated? Do youreview your plan each year? How many yearsdoes your plan cover? Do you have a plan forfinancing each project in your plan or do youproceed with projects until the money runs out?Does your plan mesh with your long-range plan,comprehensive plan, land-use plan or other“vision” plan for your overall community? Haveyou thought about how the projects in your CIPwill affect your long range goals or vision foryour community? These are just some of thequestions you should ask in reviewing the ade-quacy (or inadequacy) of a capital improvementprogram or plan. In short, what is your system’sfuture (as you see it today) and how do youplan on getting to that future?

What is a Capital Improvements Plan?Capital improvements planning is the multi-

year scheduling of system improvementsaccompanied by the intended sources of fund-ing for those improvements and theapproximate timetable for accomplishing thelisted projects. These improvements may takethe form of system upgrades and expansions toaccommodate growth or simply involve thereplacement or restoration of existing apparatusto like new condition. A true CIP is a roadmap to the future of an infrastructure system ofany kind: where you want to go and how youplan to get there. It is perhaps the singlebiggest step in moving a system, particularly asmall system, from that reactive, crisis manage-ment mode, into a planned for, “I meant to dothat” mode. Your list of projects, if that is whatyou have, is just that: a wish list, and not a planfor attaining those goals and improvements.

By Jean Holloway, Training and Education ManagerThe University of Maryland Environmental Finance Center

There are a number of misconceptionsabout the CIP process that a communitymay run into when attempting a first CIP.Common questions include how rigidthese plans are, how much debt they willentail, if they are required, and the needfor developing one in the first place.

If I develop and adopt a CIP, won’t I belocked into doing all the things it lists?

The public, and sometimes even deci-sion makers, perceive the multi-yearschedule as something that locks theminto the planned improvements. Because aCIP document must be flexible andreviewed each year to reassess needs andgoals, the CIP is not a rigid document thatcommits the system to the projects it con-tains. If it is not reviewed and adapted asgoals and needs change, it becomes sim-ply an exercise in planning, or somethingone must do to comply with requirementsrather than a useful guidance documentfor better management of the system.

If I develop and adopt a CIP won’t I beburdened with debt to accomplish theprojects?

The CIP process incorporates an analy-sis of affordability and debt servicecapability and, thus, helps to avoid impru-dent debt obligations. It can be a valuabletool in and of itself in the avoidance ofover-burdensome debt. Analyzing afford-ability includes figuring out what yourcustomers can pay for as well as whatyour system can afford to assume.

Moreover, this common misconceptionabout the CIP process overlooks the factthat debt is but one of the ways to pay forcapital improvements and replacement.With proper advance planning and soundfinancial management, even a small sys-tem can do some CIP projects withoutincurring any debt at all. Pay-as-you-gofunding is largely dependent on adequatemonetary reserves accumulated over timeby recognizing equipment wear as a realcost of operation rather than a “paper”number that doesn’t need to be funded byrates. In short, recognizing depreciationand funding it annually will enable moresuch self-funding of smaller projects and

will accumulate the local match that isusually required by programs that fundlarger projects. Don’t ever be tempted todefer the accumulation of reserves for fearof not qualifying for funding because youdon’t need it. One way or the other thatmoney will not go to waste in the properstewardship of your system.

Is there a regulation or rule that says Ihave to have a CIP?

There is no rule in federal regulationsthat says a system must have a CIP.However, if a system applies for fundingfrom a state revolving fund program orany other that examines its financial man-agement practices as a condition offunding, one of the first things that will beasked is whether the system has a CIP.Having a CIP is both a practice and ameasure of sound financial and manage-rial capacity in any water or wastewatersystem, regardless of regulation. Financialand managerial capacities are cornerstonesof a system’s sustainability. Can it be runin a consistent, compliant level over time?Conversely, the lack of these capacitiescan lead to a system’s inability to operatein compliance with regulations and opera-tional requirements, and, thereby, itseventual failure.

If I don’t have to have a CIP why shouldI go to the trouble to develop one?

A CIP can offer a jurisdiction a numberof advantages in addition to its inherentasset management benefits. A CIP providesa formal framework for the decision makingprocess and a clear link to long range ormaster plans. It helps to focus a commu-nity’s attention on goals, needs, andfinancial capability while helping to avoidthe waste of public resources. It serves as aguide for system operations for the plannedyears and provides a formal vision for thesystem’s future and its value to the commu-nity. This planned approach to managingthe community’s assets helps to sustain theutility and to provide some stability to therate structure over time. The plan and theplanning process can also be used by theutility to heighten public awareness of thesystem, its activities, and its needs.

The need for a CIP is all the more evi-dent in light of recent U.S. EnvironmentalProtection Agency estimates that approxi-mately $224 billion would need to beexpended for the next 20 years for capitalimprovements to water and wastewatersystems nationwide to keep them in com-pliance with health and regulatorystandards. For systems serving more than100,000 people, this estimate represents asignificant impact per connection, but for

The articles “Running YourSystem Like a GoodBusiness” and “How toDevelop a Multi-YearCapital Plan” are available

on the NationalEnvironmental Services Center Web siteat www.nesc.wvu.edu/ndwc.


small systems—those under 10,000 in pop-ulation—the potential impact is staggering.While the large systems may have a highertotal expenditure figure for their improve-ment needs, they have a larger customerbase over which to spread the costs. Theheavier burden on the small systems justmeans they need to be that much morecareful in their planning and in how theyspend their more limited resources. Smallsystems need to get the optimum “bangfor their buck” so that no time or moneyis wasted, and that means planning forexpenses rather than simply covering themas they arise. One of the best and mostbasic ways to do that is to have a CIP.

Getting StartedThe first step in doing a CIP is to estab-

lish the framework for the process itself.This means determining the participants, thetimetable, the procedures, and the policiesthat will direct the planning process.Establishing clear and defensible standardsfor judging and prioritizing proposed proj-ects is one area where a written policy canbe crucial to the success of a plan.Someone is bound to ask why one projectwas ahead of another on the list of plannedimprovements and a written set of stan-dards that governed those decisions can goa along way toward satisfying such ques-tions and potential criticisms. Other policiesmay relate to things like borrowing versusself-funding, citizen input procedures, or tosomething as pedestrian as the format forthe written CIP document. Looking at CIPdocuments from other jurisdictions mayhelp identify a format and presentation thatworks for your community.

The next step is to do an inventory ofthe system and all its assets, fixtures, andequipment, itemizing and evaluating theconditions found. Doing this inventorywith an eye toward possible visual aidsand data that will help support and sellthe eventual plan is a good way toapproach this step. Pictures of rustypumps and data on time spent repairingancient equipment will be a more effectivetool than mere verbal assertions saying thesame thing. Data on wasted resources dueto decrepit equipment can also be a bigconsideration in prioritizing projects.

From this inventory a list of needed proj-ects can be derived and the planning bodycan begin to prioritize projects to addressthe most urgent needs. Some of the con-siderations for prioritization could be:

1. Is there a legal mandate or orderrequiring a particular improvement?

2. Will the project eliminate an existingor potential threat to the publichealth?

3. Will the project benefit all the popu-lation or only a segment?

4. Will the project provide better safetyfor system employees?

5. Will the project improve efficiency,save money and time, or enhanceservice quality?

6. Will a project modernize an outdatedfacility or piece of equipment thathas outlived its expected usefulness?

There are any number of questions thatmight be asked, depending on the com-munity and its philosophy and goals for

www.nesc.wvu.edu 31

the future of the utility. There are timeswhere the priority order of a project maybe changed for funding availability, timing,or for factors outside of the objective con-siderations attached to prioritizing needs.For example, a water line replacementplanned for the third year of a plan maybe moved up to the first year if it islearned that the state or county intends tore-pave the street over it. The same projectcould be moved back in priority to a laterdate if it is to coincide with another juris-diction’s plans for the related area.

The third step in the CIP process is toanalyze financial capacity of both the sys-tem and its customers. The utility maylook at things like trends and growthprospects along with its past financial per-formance for itself. Another considerationmay be the portion of its average cus-tomer’s income that goes to pay utility usercharges when examining the impact ofplanned expenditures and debt on its cus-tomers. It is important to be sure, in eithercontext, that the projects included in thefinal plan will be affordable for the utilityand its users. If the utility can’t afford topay the debt service, it will have to raiserates even higher than planned for thatproject. But, if the rates go up higher thanthe average residential customer can legiti-mately afford to pay, the utility’s cash flowand bottom line revenue will suffer fromunpaid bills. Either scenario would be adisservice to the consuming public.

From this financial analysis, the planningbody can go forward with identifying spe-cific funding options and programs for thevarious projects. Potential sources willlikely include the traditional (grants, loans,and bonds), as well as the less traditional(impact fees, depreciation reserves, cashreserve funds, and the like). The importantthing is that general fund and tax dollarsshould not be spent to keep utility enter-prise funds afloat. Enterprise funds aresupposed to be exactly what the nameimplies: self-supporting enterprises. By thesame token, enterprise funds are notdesigned to be cash cows for the generalfund. Either side of the coin is contradic-tory to the premise behind enterprise or“proprietary” funds—that users pay forwhat they use, rather than just for thegeneric service involved.

The final step in the planning process isto put the plan together, making sure toinclude all the pertinent information foreach project proposed. The plan shouldcontain the project description and pur-pose, alternatives considered and rejectedalong with the reasons, cost estimates,

proposed funding sources, and theintended schedule of improvements. Beespecially attentive to funding programrequirements and whether or not your spe-cific activities or projects are eligible fortheir funding. Also make sure that you canmeet the various application and advertis-ing deadlines specified by the programsyou are suggesting as sources. Allowenough lead time to advertise and meetany public hearing or notice requirements.

After any internal reviews and approvalsand adoption by the governing body, it iscritical that the CIP is not treated as justanother study or exercise in planning thatgathers dust on a shelf. It must be a guid-ing document as well as a fluid documentthat can be reviewed and revised as thecommunity’s needs and goals change. Aroad map is only helpful if it is consultedbefore the driver gets lost. Likewise, a CIPis only helpful if it is referred to andreviewed regularly as the communitymoves forward.

For More InformationThe National Environmental Services

Center has several products to help sys-tems with planning and budgeting.

• The “Small System Guide to FinancialManagement” discusses financialplanning, budgets, estimating systemrevenue, and more. Request product#DWBLFN40.

• The “Utility Manager’s Guide to Waterand Wastewater Budgeting” presentsfinancial concepts, especially as theyapply to annual budgets. Requestproduct #FDBLFN1349.

• The Summer 2004 On Tap wasdevoted to “Running Your SystemLike a Good Business.” Requestproduct #DWQUNL14.

To order these products, call (800) 624-8301 or e-mail [email protected]

A former town manager andtown administrator for anumber of small towns onMaryland’s Eastern Shore,Jean Holloway is the training

manager for the Environmental FinanceCenter at the University of Maryland, aposition she has held since 1999.


www.nesc.wvu.edu 33

onducted between 2002 and 2005, the NationalEnvironmental Services Center’s (NESC) TrainingNeeds Assessment indicated that a well-devel-

oped training network—driven largely by certificationrequirements—exists for operators of environmentalinfrastructure but is lacking for others who areinvolved in wastewater, drinking water, and solidwaste systems for communities of 10,000 or fewerresidents. According to authors Craig Mains and JohnHoornbeek, the training and technical assistance com-munity needs to reach under-trained audiences andmake effective use of different training approachesand technologies.

Training programs offered by major training net-works were reviewed during a six-month period.For background in applicable mandates, the authorsreviewed the Clean Water and Safe Drinking WaterActs. Eighty-two individuals (town administrators,plant operators, public works directors, transfer sta-tion/recycling center managers, regulators, technicalassistance providers, consultants, and trainers from50 states and Puerto Rico) were also interviewed forthis study.

While those interviewed said they preferred con-ventional classroom training, they also said theirbiggest obstacles to training were time, money, andtravel limitations.

The interviews also revealed a gap between thetraining needs local officials identified for them-selves and the needs ascribed for them by others.Assistance providers and regulators participating inthe interviews regularly identified more trainingneeds for local officials than local officials identifiedfor themselves.

The study revealed six areas of training needs:

1. financial management,

2. emergency preparedness training,

3. regulatory compliance,

4. wet weather flow issues,

5. decentralized wastewater treatmentand management, and

6. municipal solid waste.

Who Needs What Training?National Needs AssessmentProvides Answersby Trina K. Wafle, NESC Interim Communications Manager

34 On Tap Winter 2007 34 On Tap Winter 2007

Financial management topped the list of local offi-cials, utility board members, assistance providers, andconsultants. Specific topics of interest were capitalimprovements planning, asset management, maintainingfinancial viability, retaining qualified operators, andunderstanding funding channels. Management courses,in general, and financial management courses, in partic-ular, are offered less frequently than operator trainingcourses. Despite an increasing awareness among trainingorganizations about the need, financial managementtraining is still not widely available.

Emergency preparedness training ranked high with sys-tem managers, plant operators, local officials, andassistance providers, partly in response to federal require-ments, and partly due to concerns resulting from theSeptember 11, 2001 terrorist attacks. All expressed a needfor increased capacity for small communities to be able torespond to emergencies no matter what the cause of thedisruption.

Regulatory compliance appeared to be acutely neededby drinking water system personnel due to a series ofrelatively complex regulations affecting a large numberof systems. Regulations under the MicrobialDisinfectants/Disinfection Byproducts Cluster (M-DBPCluster) were of particular interest because of the poten-tial for systems to encounter treatment conflicts whiletrying simultaneously to reduce microbial contaminantsand disinfection byproducts. Participants indicated aneed for training that addresses simultaneous compli-ance with multiple drinking water regulations, includinginformation on using advanced technologies, such asmembrane filtration and reverse osmosis, as compliancestrategies. (For more information about simultaneouscompliance strategies, see the “Tech Brief” insert in thisissue of On Tap.)

Wet weather flow issues were identified as a prioritywastewater training need. Inflow/infiltration of rainwater tosewage systems issues were considered high priority, rein-forced by a series of recent wastewater regulations. Thedata indicated that fewer courses were offered for collec-tion systems and stormwater systems than for treatmentplant operation.

Decentralized wastewater treatment and managementwere also areas of significant training need. A lack offederal regulations for decentralized wastewater and avariety of regulatory approaches at the state and locallevels present significant challenges to designers,installers, regulators, local officials, and system monitorsand maintainers. Participants indicated a need for moretechnical training on different alternative systems, train-ing on centralized management of decentralizedwastewater systems, and monitoring and maintenance ofdecentralized systems. Fewer than half of the states cur-rently have decentralized wastewater training centers.

Plus the perception among regulators, funding agencies,and engineers remains that decentralized wastewatertreatment is a less preferable option than centralized sys-tems. A number of participants also mentioned that alack of enforcement at the state level meant there waslittle incentive for working toward, and verifying, ade-quate treatment.

Municipal solid waste was viewed as increasingly beingmanaged at the county or multi-county level rather thanthe town or small community level. Nevertheless, prioritytraining needs were identified including controlling illegaldumping for solid waste managers, local officials, andassistance providers and managing operational costs.Recycling center managers were interested in training onmanaging operational costs.

The complete training needs assessment is available onDVD and may be ordered from NESC at (800) 624-8301.Mention product #TRCDGN29. The cost is $10.00 plusshipping charges. The NESC Web site has informationabout the Clean Water and Safe Drinking Water Acts, aswell as a small systems compliance chart atwww.nesc.wvu.edu/netcsc/netcsc_regs.htm.S

NESC Interim Communications ManagerTrina K. Wafle has served as associatedirector of the National Research Center forCoal and Energy, where NESC is housed, forthe last 17 years.

Attendees at the Environmental Training Institute for Small Communities,sponsored by the National Environmental Services Center each year inMorgantown, West Virginia, learn about water and wastewater issuesconfronting America’s small communities.

ratepayers that each year you will look at what hap-pened last year and what is on the horizon for nextyear. Inform them that they need to plan on rateincreases to meet rising needs every year. Most yearsthose increases will be an inflationary increase in therange of two to four percent. That will amount to per-haps $0.50 to $1.00 per user per month. An increasethat small is basically unnoticeable and completelyunderstandable to ratepayers. Few will come out to apublic meeting to discuss a $1.00 per month rateincrease anyway.

How does our story conclude? If you hire a goodanalyst, “blame” him or her for the rate increasesneeded, adjust your rates appropriately now andadjust them appropriately each year, your rateincreases will be a snap, your systems will remaincontinuously well funded, they will serve the ratepay-ers well, you will be a hero, you will get re-elected orretain your staff job and all will live happily ever after.

More InformationTo learn more about rate setting, visit Carl Brown’s

Web site at www.carlbrownconsulting.com. The sitehas information about rate setting, asset management,and other topics, and tools to help systems under-stand and calculate good rates.

The National Environmental Services Center (NESC)maintains a Manufacturers and Consultants Database,a list of companies and consultants that offer productsand services to small community water and waste-water utilities. Call NESC’s technical assistance staff at(800) 624-8301 and select option “2” to help youlocated a rate specialist in your area.

NESC also has several products to help systemswith rate setting.

• “Show-me Ratemaker,” part of the EnvironmentalManagement Suite CD, is a free water and seweruser charge analysis program developed by Mr.Brown. Request product number DWCDMG57.

• The “Small System Guide to Rate Setting” helpsdecision makers keep track of a system’sfinances, make changes in rate structures, andgain customer support for rate increases. Requestproduct number DWBLMG49.

• The booklet “Water Rates: Information forDecision Makers” provides an overview of fourdifferent rates structures. Request product num-ber DWBLTR05.

To order these products, call (800) 624-8301 or e-mail [email protected].

The Environmental Finance Center at Boise StateUniversity offers Plan2Fund, RateCheckup, and otherasset management and rate analysis programs. Visit theirWeb site at http://sspa.boisestate.edu/efc/ to learn more.S

Examine your existing acquisition process.Compare it to the following steps. As needed,revise your processes to make them work better.

Get advice on what kinds of rate analysis services(scope of service) you need.

Develop a probable scope of services.

Ask service providers for firms and others that dorate studies.

Prepare a request for qualifications (RFQ) thatincludes the scope of services.

Talk with prospective rate specialists and givethem the RFQ.

Review responses.

Select a responder with whom you want to dis-cuss doing the project and talk it over.

Check references.

Have the specialist give you a firm proposal forwhat they will do, what you need to do, and whatthey will charge you.

If the proposal is acceptable to you, present it toyour decision-making body for approval or disap-proval. If they approve it, proceed. If not, go backto step 7.

As your specialist does the work, ask questions, beinvolved and assure yourself that things are goingwell. If they are not, and your specialist can’t fixthe problem, fire them and use another analyst.Carl Brown is President of Carl Brown

Consulting, LLC; specializing in water, sewerand storm water system rate analysis andrate setting, asset management programdevelopment and training nationwide. Mr.

Brown may be contacted by phone at (573) 619-3411,by e-mail at [email protected].

Continued from page 19.

www.nesc.wvu.edu 35

Selecting a rate analyst can be done in a series of steps.


How it is calculated:Operating Income / Operating Expenses* *Not including debt expenses

Example:$150,000 operating income / $100,000 operating costs = 1.5 operating ratio

What it does:Indicates how easy or hard it is to pay your operating expenses.

A ratio of 1.0 means you have just enough income to pay your operating costs. Less thanthat and you cannot pay all those costs during the time period being considered. Less thanzero and you cannot pay any of those costs. From one year to the next your operating ratioshould remain fairly stable or grow slightly but it can vary widely over shorter periods. Smallsystems (a few thousand connections or less) should have an operating ratio of 1.25 orhigher. Very small systems (a few dozen connections or less) may need an operating ratio ashigh as 2.0 to get through short periods when income dips or costs jump.

How it is calculated:Funds Available to pay Debt* / Actual Debt Costs

*Generally includes operating income not needed to pay operating costs plus any funds dedicated to debt expenses.

Example:$50,000 funds available to pay debt / $20,000 actual debt expenses = 2.5 coverage ratio

What it does:Indicates how easy or hard it is to pay your loan payments, closing costs and other debtrelated expenses.

If you have no debt, you have no coverage ratio. As with operating ratio, a coverage ratio of1.0 means you have just enough funds to pay your debt related costs. And, as with operatingratio, from one year to the next your coverage ratio should remain fairly stable or grow slight-ly but it can vary even more wildly than operating ratio. Most systems should have a coverageratio of 1.25 or higher. Generally a strong operating ratio will result in a strong coverage ratioas well. Having both may get your system better terms and interest rates on loans and bonds.

How it is calculated:Monthly Bill for 5,000 Gallons of Residential Water or Sewer Service / Monthly Median Household Income Withinthe Area Served at Those Rates

Example:$20 average residential bill for 5,000 gallons of water / $2,000 median household income = 1.0 affordability index

What it does:Indicates how easy or hard it is for your residential water or sewer customers to pay their utility bill.

A ratio of 1.0 means your residential customers are using, on average, one percent of their household income topay their water or sewer bill. This rate level is fairly common across the U.S. and is considered affordable. As a refer-ence point, the U.S. Department of Agriculture’s Rural Development Utilities Program targets an affordability indexof two percent as the threshold for issuing grants to a system.

ate analysis is a very spe-cialized field. You may not

have the time or expertise to doyour own rate analysis.However, there are three simplecalculations— operating ratio,coverage ratio, and affordabilityindex—that you can do to findout if your rates are adequateand affordable to your ratepay-ers. These indicators can helpyou decide if you can simplymake small rate adjustments tokeep your revenues adequateand your rates affordable or ifyou need a full rate analysis toget back on track.

If you calculate and trackthese three indicators regularly,you will get a good sense ofthe financial health of your util-ities and how easy it is for yourcustomers to pay their bills.

For More InformationTo make this task even sim-

pler, there is a Microsoft Excelspreadsheet template for a basicfinancial statement that willcalculate these indicators foryou. Download the templatefree at www.carlbrownconsult-ing.com/Tools.htm.

www.nesc.wvu.edu 37

WORD PUZZLE*watershed

planning

management

stakeholder

communication

rates

calculation

politics

public

capital

improvements

training

source

compliance

regulations

groundwater

*Solution on page 39 Wordsearch by Sheila Anderson

QUOTES

The good rain, like the bad preacher, does not know when to leave off.

—Ralph Waldo Emerson (1803–1882)

A little rain each day will fill the rivers to overflowing.

—Liberian proverb

The trees reflected in the river—they are unconscious of a spiritualworld so near to them. So are we.

—Nathaniel Hawthorne (1804–1864)

A river seems a magic thing. A magic, moving, living part of the veryearth itself—for it is from the soil, both from its depth and from its sur-face, that a river has its beginning.

—Laura Gilpin (1917–1932)

If you’re not part of the solution, you’re part of the precipitate.

—Steven Wright (1955– )

WATER TRIVIAThe Mississippi River watershed is the largest in theUnited States and among the largest in the world. TheMighty Mississippi drains parts of 30 U.S. states andtwo Canadian provinces. How much mud and silt doesthe river deposit in the Gulf of Mexico each year?

a) 15 tons

b) 175 million tons

c) 300 million tons

d) 500 million tons

e) 1 billion tons

HmmmmAn automatic dishwasher uses approximately nine to12 gallons of water, while hand washing dishes canuse up to 20 gallons.

Source: American Water Works Association

Each year,the Mississippi River transports an

estimated 500 million tons of mud and dirt

along its 2,000-mile length.The travel jour-

nalist Charles Kuralt once quipped,“The busi-

ness of the Mississippi,which it will accom-

plish in time,is methodically to transport all

of Illinois to the Gulf of Mexico.”


Groundwater is a vast resource, so vastthat it constitutes 95 percent of the world’savailable fresh water. Yet, it is out of sightand out of mind for most people. That canbe a problem because if you own a well,you are your own water system manager.

In America, 46 percent of the populationregularly depends upon groundwater for itsdrinking water supply. Groundwater alsosupplies 42.4 percent (58 billion gallons/day)of all water used for irrigation.

Understanding Ground Water and WellsOn the whole, groundwater is better pro-

tected from contamination than surfacewater. As water moves through the ground,much of the chemical or biological contami-nation is broken down or filtered out by thetime it reaches the water-bearing geologicalformation called an aquifer. If necessary,treatment technologies are available toremove any unsafe substances that remainin well water and improve the water’s qual-ity. Regular water testing is the key toknowing whether your well water is safe.

Most well owners know little about theinner workings of their wells. When some-thing goes wrong, they panic. If yoususpect trouble, have a qualified water wellsystem contractor inspect and service yourwell. A qualified contractor will have theexpertise and equipment necessary to accu-rately diagnose and remedy problems.

It’s good, however, to become aninformed well owner. For instance, knowingthat regular well maintenance check-upsand water testing are important is part ofbeing a responsible well owner. (You canlearn more about well ownership by goingto National Ground Water Association’s Website www.wellowner.org.)

By Cliff TreyensDirector of Public Awareness,National Ground Water Association

Protecting Ground WaterFor the most part, protecting groundwa-

ter means conserving it and keepingcontamination away. In many parts of thecountry—not just arid or semi-arid places—the amount of water being withdrawn fromaquifers is problematic. In some instances,water tables drop, which may require low-ering the pump or drilling a deeper well. Inother cases, heavy withdrawals from anaquifer may cause the levels of surfacewater bodies such as streams to lower,because they usually are connected togroundwater. Conserving water is always agood practice, no matter where you live.

Keeping contamination away fromgroundwater is not always in the wellowner’s control. Sometimes, contaminationoccurs naturally in the environment. Othertimes, it comes from a distance and contam-inates the aquifer from which one drawswater. Other times, rain runoff can washfertilizer from farms or oil, fuel and roadsalt from roads into the ground, and even-tually, into the groundwater. If suchcontamination cannot be cleaned up or pre-vented by the responsible party, treatingyour water may be the best option.

However, there are several things wellowners can do on their property to helpprevent contamination from entering thegroundwater such as:

• Properly storing and disposing ofhousehold hazardous wastes

• Keeping animal waste away from thewellhead

• Making sure the well cap is secureand in good repair

• Sloping ground away from the well-head to prevent the pooling of wateraround it.

Many public water systems rely on ground-water, too, so please do your part to help.

Cliff Treyens is the director ofpublic awareness with the NationalGround Water Association. Learnmore about the NGWA by visitingtheir Web site at www.ngwa.org.

For the last five years, we’ve printed a listof our products in On Tap. Like many other

organizations, though, we’ve had to cutcosts. So, we won’t be running the product

list here anymore.

Rest assured we still have hundreds of free andlow-cost products.You may peruse these items on

our Web site at www.ndwc.wvu.edu.

If you don’t have Internet access or you’d like to dis-cuss your particular situation, please call us toll free at

(800) 624-8301 and select option “3” to talk with one ofour technical assistance specialists.

WORD PUZZLE ANSWER KEY

National Environmental Services CenterWest Virginia University Research CorporationWest Virginia UniversityP.O. Box 6064Morgantown, WV 26506-6064

NONPROFITORGANIZATION

U.S. POSTAGE PAIDPERMIT NO.245CHAMPAIGN, IL

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