Capacity Development & the Infrastructure Crisis

1. Capacity Development& the Infrastructure Crisis • New York State Department of Health • David A. Rowley, PE • Western Region Water Supply Engineer 1

2. Aging Infrastructure Crisis • Coming soon to your neighborhood? 2

3. 100 years ago... • W.H. Taft was president • Population of Las Vegas was 35 • Max Speed Limit in most cities was 10 mph • and your water system was brand new 3

4. ASCE- 2005 • Report Card for American Infrastructure: • Water & Wastewater Utilities Grade? • “D” 4

5. AWWA- 2001 • Dawn of The Replacement Era: Reinvesting in Drinking Water Infrastructure: • “Repair and replacement of water mains will take place during the next generation on a scale never before seen.” • $277 billion over the next 20 years will be needed to maintain current levels of service. 5

6. What is the cause? • Old piping • approaching or >100 years • new regulatory requirements • larger service areas stressing old systems • Are these items really the reasons for this crisis? 6

7. Audience Poll- • Water system components> 50 years old? • Written asset management plan? • AMP identify critical components- Single Points of Failure? • Written emergency response plan? • Written standard operating procedures? • Detailed record drawings? • Regular Rate adjustments? 7

8. Ant & the Grasshopper

9. Grasshoppers.... • believe that pipes last forever • fail to plan for replacement • fail to charge the true value of water • fail to plan for emergencies • promote the public perception that water should be cheap/free. 9

10. Water service vs TV service? • Does anyone pay more for water?

11. In many cases, We inherited this- • and turned it into-

12. this-

13. How do we achieve sustainability?

14. BACK GROUND The Capacity Development Initiative • SDWA provides significant authority and resources to address the small system challenge • Among the initiatives is the Capacity Development Program 14

15. BACK GROUND Impact of SDWA on PublicWater Systems • Increased Requirements of Safe Drinking Water Act (SDWA) • Stricter regulatory standards • Achieving compliance places a greater technical, managerial, and financial burden on Public Water Supplies, especially small systems 15

16. CAPACITY DEVELOPMENT Capacity is… • Plan for Compliance with Standards & Reliable Service The Ability to Achieve and Maintain Sustainability! 16

17. CAPACITY DEVELOPMENT Three Elements of Capacity Technical Capacity Managerial Capacity Financial Capacity 17

18. CAPACITY DEVELOPMENT What is Capacity Development? • Process by which water systems acquire, maintain, and build upon their technical, managerial, and financial capabilities. 18

19. Viable Water System CAPACITY DEVELOPMENT Goal of Capacity Development • Nonviable • Water • System Capacity Development Ants Grasshoppers 19 Capacity Development Capacity Development Capacity Development

20. CAPACITY DEVELOPMENT Three Elements of Capacity Technical Capacity 20

21. TECHNICAL CAPACITY Technical Capacity • The physical and operational ability of a water system to meet regulatory requirements • Elements of Technical Capacity • Adequacy of source water • Adequacy of infrastructure • Technical knowledge/Capability of personnel 21

22. TECHNICAL CAPACITY Source Water Adequacy • Does your system have a reliable and adequate source of drinking water to meet current and future demands and future rules? • Alternate sources • Backup power or other emergency provisions • Water rights • transmission capability • drought issues? 22

23. TECHNICAL CAPACITY Infrastructure Adequacy • EPA definition: • the system can provide water that meets regulatory standards because its infrastructure, from source through distribution, is in good condition and has not exceeded its useful life. 24

24. TECHNICAL CAPACITY Infrastructure Adequacy • What are the condition and life expectancy of infrastructure components (from source through distribution)? • Evaluate all system components for proper operation to maintain adequate water quality and quantity • Asset Inventory - Identify what components must be repaired, replaced, or upgraded based on life expectancy and future needs 25

25. TECHNICAL CAPACITY Infrastructure Adequacy • Does the system have an asset management plan (AMP)? • An AMP is a tool to help you plan, fund, and carry out necessary infrastructure replacements and improvements. • Use the asset inventory and life expectancy information to help develop a AMP • 5-year projection and update every year 26

26. TECHNICAL CAPACITY Technical Knowledge /Capability of Personnel • Does the system have access to trained personnel? • Are operators properly certified? • Does the system have an O&M manual? • Standard Operating Procedures? • Is there a formal training program for operators? 27

27. CAPACITY DEVELOPMENT Three Elements of Capacity Technical Capacity Managerial Capacity 28

28. MANAGERIAL CAPACITY Managerial Capacity • The expertise of the water system’s personnel to administer the system’s overall operations, including institutional and administrative capabilities 29

29. MANAGERIAL CAPACITY Elements of Managerial Capacity • Ownership Accountability • Staffing and Organization • Effective External Linkages 30

30. MANAGERIAL CAPACITY Ownership Accountability • Are the system owners clearly identified? • Can the owners be held accountable for the system? 31

31. CAPACITY DEVELOPMENT Three Elements of Capacity Technical Capacity Managerial Capacity Financial Capacity 35

32. FINANCIAL CAPACITY Financial Capacity • Financial resources and fiscal management that support the cost of operating the water system • Elements of Financial Capacity • Revenue sufficiency • Credit worthiness • Fiscal controls 36

33. FINANCIAL CAPACITY Revenue Sufficiency • Do revenues cover costs? • subsidy program? • Does the system charge an appropriate rate for water service? • Does the system have revenue to fund an asset management plan? 37

34. FINANCIAL CAPACITY Fiscal Managementand Controls • Are records maintained? • Are appropriate budgeting, accounting and financial planning methods used? • Does the system manage its revenues effectively? 39

35. ROLE IN PUBLIC HEALTH Capacity Developmentand the Owner • Know your system (Managerial Capacity) • Be familiar with regulations and their general requirements (Technical Capacity) • Communicate with your operators – The top complaint operators and other employees have about their board/council  “They don’t listen to what I say.” (Managerial Capacity) • Communicate with your customers (Managerial Capacity) • Create and implement an asset management plan (Managerial and Financial Capacity) • Ensure water rates are appropriate to finance the operation of your system (Financial  Managerial  Technical) 44

36. ROLE IN PUBLIC HEALTH Capacity Developmentand the Owner • Know where to get assistance (Technical, Managerial, and Financial Capacity) • Know your staff and their job responsibilities. A clear division of labor helps everybody know who’s doing what, why and when. (Managerial Capacity) • Know your own responsibilities and liabilities • Plan for the future (Managerial Capacity) • Do you know what it will take to meet future operating demands? • Are you prepared to handle emergencies (contingency planning)? • Do you have a business plan or asset management plan? 45

37. Questions? • David A. Rowley, PE • Regional Water Supply Engineer • New York State Department of Health • Western Region • dar08@health.state.ny.us