Water%20and%20Wastewater%20System%20Planning%20%20%20%20%20%20%20%20%20%20for%20Small%20and%20Medium%20Utilities - PowerPoint PPT Presentation

About This Presentation



Water and Wastewater System Planning for Small and Medium Utilities Using Prudent Utility Management Practices – PowerPoint PPT presentation

Number of Views:200
Avg rating:3.0/5.0
Slides: 73
Provided by: GaryW193


Transcript and Presenter's Notes

Title: Water%20and%20Wastewater%20System%20Planning%20%20%20%20%20%20%20%20%20%20for%20Small%20and%20Medium%20Utilities

Water and Wastewater System Planning
for Small and Medium Utilities
  • Using Prudent Utility Management Practices

Planning Covers a very wide range of Utility
  • Identification of Utility Management Functions
  • Identify the special problems faced by Small and
    Medium Utilities
  • Describe the Planning Function
  • Identify the Critical Plans for Effective Utility
  • Review the Components of Cost of Service
  • Identify Special Florida Planning Issues
  • Identify Specific Utility Plans that Minimize
    Costs, Protect Revenue, and Ensure Maximum
    Facility Life

Basic Utility Management Responsibilities
  • Planning
  • Organizing
  • Staffing
  • Directing
  • Monitoring and Controlling

Planning is the Most Critical of the
Utility Management Tasks
Planning addresses the Serious Issues faced by
Small and Medium Utility Systems
  • Insufficient Revenues
  • Aging Infrastructure
  • Difficulties in Obtaining Financial Assistance
  • Lack of Economy of Scale
  • Limited In-house Management Capabilities
  • New Regulatory Requirements
  • Uncertain Financial Stability because of the lack
    of Long-Term Utility Planning

Some Reasons for Insufficient Utility Revenues
  • Increases in Chemical and Energy costs
  • Increases in Equipment Maintenance costs
  • Politics and difficulties in Raising Rates
  • Conflicting Priorities for use of Utility Funds
  • No Reserve Funds for needed W/WW improvements

Problems with Aging Infrastructure
  • Antiquated Infrastructure and Facilities
  • Facilities are inadequate to meet current or
    pending Regulations
  • Useful age of facilities is exceeded
  • Environmental Pressures, i.e. contamination from
    septic tanks, water quality degradation due to
    droughts and increasing populations densities,
    water access restrictions, etc.

Difficulties in Obtaining Financial Assistance
for Utility Projects
  • Treatment optimization is not a fundable
    component in any loan or grant program.
  • Demands for CIPs exceed SRF availability
  • RD grants cover only poverty income designations
  • Loans Applications are often Intimidating,
    confusing and include cumbersome Paperwork
  • Loan payments often mean significant rate
    increases for distressed customer base
  • 100,000 is commonly the Threshold for Cost
    Effectiveness removing critical improvements from

Economies of Scale are Lacking for Small W/WW
  • Smaller Customer Base to spread costs
  • Cost per household are typically already higher
    than larger systems
  • Smaller Systems are more likely to be
  • Small systems lack financial, managerial and
    technical capabilities as compared to the
    capabilities of larger utility systems

Limitations in Management Capabilities for Small
and Medium Sized Utility Systems
  • Management of Small Systems is performed by a few
    individuals with limited OJT experience
  • Systems are have difficulty documenting and
    evaluating the needs for improvements
  • Small systems have difficultly operating or
    maintaining sophisticated equipment or systems
  • Management of infrastructure improvements is
    either ad hoc or part-time
  • Understanding of System Requirements and
    Regulatory Compliance is generally inadequate

Difficulty with Regulatory Compliance Issues
  • Regulations are Burdensome
  • Regulations are Difficult to Understand
  • Regulations are increasingly stringent and
  • System Facilities often are not Adequate to meet
  • Uncertain Future Regulations Exacerbate Problems

Lack of Long-Term Planning
  • Typically Long-Term Planning is neglected
  • Future impacts of demographic changes are not
    known or their affects are not identified
  • Lack of Long-Term Planning often is the cause of
    regulatory non-compliance
  • Most systems bogged down coping with current
    issues (putting out fires)
  • Pending Regulations are often not known

Capabilities of System Operators
  • Regulations are often Confusing
  • How Regulations apply to operated Facilities are
    not Clear
  • Operator training did not include newer
  • Succession Planning for current system operation
    does not exist and often there is no backup
  • Often there are changes in operating services or
    personnel based on unforeseen conditions
  • There are few opportunities to upgrade operator
  • Labor shortages in coverage and in backup exist

Some Very Recent Examples of Regulatory Changes
  • Disinfection By-Products Rule (TTHM and HAA5
  • New IDSE Requirements
  • Biological Compliance Testing and CT Calculations
  • Groundwater Rule
  • Total Coliform Rule
  • Future Arsenic and Fluoride requirements

Planning for Small and Medium Utilities
In preparing for battle I have found that plans
are useless but planning is indispensable.
Dwight D. Eisenhower
Components of System Planning
  • Establishing Goals and Objectives
  • Collecting and Evaluating Pertinent Information
  • Identifying and Setting Priorities
  • Identifying and Comparing options and
  • Devising both short-term and long-term strategies
  • Developing Contingency Plans
  • Preparing Budgets, Developing Policies and
    Procedures to achieve Planning Goals

Utility Planning Concerns
  • Present Resources
  • Budget (Monies)
  • Human Resources (Staff)
  • Assets (Facilities and Equip.)
  • Future Resources
  • Financial Capability
  • Facility Rehabilitation and Replacement
  • New Facility Needs
  • Staffing

Types of Plans Covered in this Presentation
  • Organizational Plan
  • Financial Plan
  • Operation and Maintenance Plan (OM
  • Budget)
  • Asset Management Plan
  • Capital Improvements Plan (CIP)
  • Financing Plan
  • Personal Services Plan
  • Preventative Management and Energy Management

Organizational Plans
The Organizational PlanPrimary Plan of an
  • Defines organizations structure, the
    system of activities, authority relationships and
    provides the linkage for effective collaborative
  • Establishes Unity of Command
  • Identifies Clear Lines of Authority
  • Defines the Divisions of Labor
  • Identifies Employee and Group Responsibilities
  • Identifies Formal Lines of Communications

Financial Plans
The Components of Financial Planning
  • Revenue Forecasting
  • Rate Planning based on the Cost of Providing
    Services (Cost of Service Study)
  • Borrowing Plans such as Bonds and Short Term
  • Cost and Performance Tracking
  • - Operating Budget
  • - Personal Services Budget
  • - Capital Improvement Plan
  • Financial Plan Maintenance
  • Asset Management Plan
  • Water Conservation Plan

Comfort Zone Performing tasks in areas where we
have experience and knowledge that provides
obstacle to effective utility management.
Rate Planning
Typical Cost Components Funded by Utility Rates
Govt. Transfers
Sources of Revenues for a Water System
  • Operating Revenues
  • Water sales
  • Connection Fees
  • Impact Fees
  • Late payments
  • Reconnection fees
  • Non-Operating Revenues
  • Interest on checking acct.
  • Interest on reserve acct.
  • Equity Buy-In fees
  • Capital Recovery Fees

Major Sources of Utility Revenue are Rates and
Connection Fees
Operating Revues
Non-Operating Revenues
Water Rates (Typically Recover all other Costs)
Connection Fees (Typically Recover Cost of WTP)
Objectives of a Rate Analysis
  • Identifies Current and Future Cost Variables
  • Uses Most Current Utility Information
  • Sets Upfront Reasonable Objectives
  • Uses AWWA Methodology and GAAP Standards
  • Sets Water Revenue meeting current requlatory
  • Identifies Operating , Debt Service and
    Replacement Fund Requirements
  • Sets sustainable Capacity Charges and Service
  • Provides Utility with Statistical Performance
    information for gauging success

FRWA Comprehensive Rate Analysis Rate Design
  • Water Systems are evaluated in Technical,
    Managerial and Financial Areas
  • Water Rates are Analyzed using FRWA Model
  • This provides cost coverage, repairs, equity to
    customers, CIP needs, population analysis and
    needs for grants and loans
  • Capital Needs are Analyzed using DWSFR USF
    Methodology to build replacement and annual
    annuity analysis building basic asset
    management program
  • FRWA assists utility in obtaining needed funds

FRWA Provides Assistance to Utility Boards in
Developing Prudent Long-Term Capital Program
Setting Water Rates (AWWA M1)
  • Determine the full cost of doing business by
    calculating your costs.
  • Determine your current revenues.
  • Consider your reserve requirements to ensure you
    have enough funds to cover your asset
    rehabilitation and repair costs as well as
    unexpected costs during the next 5 years.
  • Calculate how much money you need to collect from
    customer charges to cover your costs and fully
    fund your reserve account.
  • Evaluate appropriate rate structures and
    distribute the variable costs component to the
    various customer classes in accordance with their
    requirements for service.
  • Implement the rates.
  • Review and adjust your rates so they recover from
    each class of customer, within practical limits,
    the cost to serve them

Customer Related Costs of Providing Water Service
  • Supply and Transmission Costs average cost of
    supply and transmission to customer, i.e.
    electricity, chemicals labor
  • Commodity Cost - Costs that vary proportionately
    with the amount of water provided under average
    consumption typically based on size of meter
    (proportioned by meter size)
  • Capacity Cost - Costs that are incurred to meet
    the maximum demand (Peak demands have much higher
  • Customer Related Cost - The costs that are
    associated with serving customers independent of
    the amount of water they use
  • Public Fire Protection. The cost of hydrants and
    the over-sizing of water mains and reservoirs to
    provide fire flows.
  • Taxes, Surcharges and GF Transfers. Costs include
    state city utility taxes, customer billing
    audits utility maintenance.

Cost of Service Study used in Designing Fair,
Equitable and Sustainable Rates
  • Determine current expenses for residential,
    commercial and industrial classes of customers.
  • Estimate short and long-term facility needs based
    on identified development, historical trends and
    economic indicators.
  • Establish Construction Schedules, Capital Needs
    (cash flows), cash, interest payments and
    interest ratios to be maintained required by Bond
  • Estimate operating revenue and non-operating
  • Rates are allocated to individual classes of
    customers that fairly allocates charges to those
    using the service

Preparing the Financing Plan
  • Debt Service Coverage (Bonds Outstanding)
  • Cash Funding of the Capital Improvement Program
    (Typically 30)
  • Rate Stabilization Fund (Minimizes Rate Shock)
  • Cash Targets Maintained (Available Working
  • Variable Rate Debt for Short-Term Securities
    (Commercial Paper)

Asset Management Concepts
  • Defining all Facilities by type, age and
  • Defining and Identifying Status by category
  • Determining Sustainable Level of Service
  • Identifying Critical Assets
  • Defining CIP and OM Strategies
  • Using Asset Management to determine costs
  • Identifying Long-Term Funding Strategies
  • Developing Rates and a Budgeting Plan

The Water Conservation Plan
  • Water System Operations Training
  • Water Conservation Strategy
  • Development
  • Performing Water System Audits
  • Performing Water System Rate Analysis
  • Performing Leak Detection
  • Identifying Drought Management Responses
  • Performing W/WW Energy Reduction Investigations
    (discussed later)

Engaging Water Managers
Direct Benefits of Water Conservation Programs
  • Locates, corrects and eliminates illegal taps
  • Institutes water audits and institute leak
    detection programs that reduce Water Loss levels
    lt 10.
  • Evaluates water meters for efficiency and
    institute cost effective replacement programs
  • Trains meter readers in leak and illegal
  • Evaluates User fees, deposits and other charges
  • Improves timeliness and effectiveness of customer
    collections policies
  • Adds new customers to existing underutilized
  • Initiates Cooperative purchases for metes, pipe
    and standardizes equipment

OM Budget Plan
Purpose and Use of an OM Budget
  • All businesses rely on proper budgeting and
    financial management to monitor and control
  • Because Growth, Aging of Facilities and
    Equipment, External Constraints and Environmental
    Regulations affect the budget conformance, the
    budget is always a planning tool
  • A Budget can be a short or long-term plan that
    anticipates future expenditures based on
    estimated variables
  • A Budget prioritizes financial needs using actual
    expenses and trends from prior year(s) in line
  • The line items are then monitored to identify
    extraordinary expenses and their causes and to
    determine future needs

Use of a Line Item Budget
Act 100 Column Item Supply Equip 1 Budget Exp. Previous Yr 5-Yr. AVE 2 Budget Current Yr. Curr-Previous 3 Projections Yrly Projection Proj-Prop 4 Request Budget Request Request Bud-Req
120 Maint Supplies 13,900 2.5 14,700 10.6 15,380 4.6 15,800 7.4
130 Small Tools 6,500 0.6 6,700 3.1 6,432 (1.1) 6,500 (3.0)
140 Safety Equip 3,200 1..3 3,300 3.1 14,700 459 3,300 0.0
Totals 23,600 2.3 24,700 4.1 36,512 54.7 25,600 3.6
140 Extraordinary Expense Necessary to Replace
Confined Space DO Meter
The Capital Improvement Plan (CIP)
Capital Improvement Plan (CIP) Development
  • Identification of the needs for capital
  • improvements
  • Development of the CIP (typically 20 years)
  • Prioritization of capital projects
  • Scheduling of the Projects (typically 5 year
  • horizon)
  • Identification of Funding Sources
  • Determining Borrowing Schedules

Major Capital Improvement Program CIP Categories
  • Source Water Improvements (Wells)
  • Water Treatment Improvements
  • Water Storage and Pumping Improvements
  • Water Transmission Improvements
  • Water Distribution Improvements
  • Replacement and Rehabilitation
  • Relocation of Pipelines
  • Pipeline Improvements including Upsizing
  • New Development
  • Water Service (Meters and Appurtenances)

CIP Project Management using a Five Year
(Short-Term) Window
  • ESSENTIAL Project needed to meet water demand
    from new development or essential for the
    maintenance of the water system.. Water demands
    or infrastructure conditions if not completed
    there is the risk of being unable to provide
    water to its new and existing customers. These
    Projects are included in the First year Schedule.
  • REQUIRED A project that is important for
    providing water service to customers yet timing
    of construction is not as critical as an
    essential project. Required projects are
    generally found in the last four years of the
    plan. External factors such as the pace of new
    development or the condition of existing
    infrastructure may delay or accelerate the timing
    of project construction. These Projects are
    included in the 5-yr. window.
  • DEFERRABLE Projects are not immediately
    critical to the operation of the water system.
    Expenditures in this category generally require a
    business case study or specific criteria to be
    met before spending can occur. Contingent
    spending is deferrable and covers emergency
    replacement. These projects are long-term and are
    placed beyond window.

CIP Line Item Budget Example
Typically 5 Yrs.
FERC Acct Major Category Current YR FY 2009 FY 2010 Project Total
100 Water Treatment Improvements 100 Water Treatment Improvements
1 Filter 6 Improvements 230,000 474,000 538,0000 1,242,000
2 Clarifier 3 Upgrade 67,000 67,000
100 Totals 230,000 541,000 538,000 1,309,000
500 Water Transmission Improvements 500 Water Transmission Improvements
3 Main Street Ext. 24,700 365,000
200 Totals 24,700 365,000 389,700
Capital Budget Totals Capital Budget Totals 230,000 565,700 903,000 1,698,700
Capital Project Management
Capital Improvement Program and Technical
Capacity Demonstration
  • Is Peak Demand Day gt 85 of Permitted Capacity
  • Have Boil Water Notices been issued?
  • Are there Notices of Violations?
  • Are there Regulatory Agreements?
  • Is the System under a Formal Consent Orders?
  • Have all Regulatory Issues been Resolved?
  • Is both Capacity and type of facilities adequate?
  • Do Operator(s) have proper Licenses for needed
    treatment levels?

Environmental Pressures on Existing Facilities
Floridas Population Growth Leads to
Stressed Water Supplies
2005 PWS 37 of use 6.5 BGD 2025 PWS 43 of use
8.5 BGD
Floridas Ground Water Supplies and Projected
Water Shortages
5,691 Public Water Systems use 10,160 Ground
Water Supply Wells Ground water supplies are
already scarce in some areas of Florida. Ground
water withdrawals are are projected to result in
critical water supply problems in the next 20
years. These problems include public water
degradation of water quality for public use,
significant declines in lake levels and drying of
wetlands within these areas.
Water Resource Caution Areas
Withdrawals in Water Resource Caution Areas
results in upwelling of water from lower zones
and higher dissolved solids content
Florida Droughts are Common and Sometimes Severe
Six Droughts Since Year 2000
Changes in Land Use Intensify the Effects of
Capital Investment Considerations
  • Costs for new facilities will be the driving
    factor for rate increases for the next 20 to 30
  • Have alternatives to construction that are more
    cost effective been evaluated?
  • Operational operating assistance are not fundable
    under loan or grant programs
  • The fees paid to engineering consultants are
    based on a percentage of the constructed cost
  • CIPs should be evaluated thoroughly

DBPs Non-Compliance Caused by Operational
  1. Not Measuring Cl/NH2Cl Location Residuals
  2. Chlorinating Aerator
  3. Dosing Cl in combination with NH2Cl
  4. Selecting Anhydrous NH3
  5. Making DBPs so the GAC Unit can remove them
  6. Flushing before Sampling
  7. Not Trending DPBs
  8. Dosing with old Cl
  9. Growing Organics in Ion exchanger, clearwell or
  10. Not Taking DBP Sample at POE
  11. Not Fluctuating Tank Levels
  12. Not knowing water quality at individual wells

Creating Disinfection By-Product Problems
Responsibilities in a Constructed Project
  • Owner Managing the Construction Project,
    Financially Responsible for Project Costs and for
    its efficient operation
  • Engineer Technically Responsible for Design,
    Specifying of Materials and Quality of Finished
  • Contractor Responsible for Methods used to
    Construct Project in Conformance to Plans and

Project Management
  • Project Management is the Process used to Enhance
    the Probability of Project Success by providing
    Leadership using Successful Techniques for
    Planning, Scheduling, Budgeting and Controlling
    a Constructed Project.
  • The objective of Project Management is to Build a
    Quality Product that meets the Owners
    Expectations, at the Lowest Cost according to a
    set Schedule.
  • To accomplish this the Owner must assume a strong
    Management Role

The Project Planning Time LineControlling
Quality and Cost
Reducing Project Costs through Design Refinement
Major Considerations in the use of a Consulting
  • Beware of Delegating Control of Projects to the
  • Evaluate how well does Consultants
    Recommendations meet Owners Basic Requirements
  • Beware of Scope Creep (Right-Size Your
  • Beware of " Newest Technology" Projects
  • Beware of Slick Proposals and Flashy Brochures
    and Professional Presenters
  • Beware of Too Eager and Ready Solutions
  • Insist on a Predesign Report for Larger Projects!

Evaluating Consulting Engineer Qualifications
  • Engineering project manager, engineering team
    composition and compatibility
  • Experience of design office and location of work
    to be performed
  • Ability to furnish the required services in a
    timely manner team member workload
  • Engineering approach, ability to adhere to
    project scope
  • Current Schedule Of Hourly Billing Rates
  • List Available Resources, Materials, Equipment,
    and Facilities that includes list of
  • List of Clients / Utility Systems

Personal Services Plan
Preparing a Personal Services Budget
  • List Employee Roster of Full Time and Part Time
    Equivalents (line item)
  • Identify Pay Grade, Anticipated Pay Grade and
    Anticipated Base Pay
  • Determine Direct Yearly Compensation
  • Sum Total

Other Personal Service Expenses Included in PS
  • Temporary Salaries
  • Overtime Pay
  • Training
  • Working Out or Class Straight Time
  • Other Personnel Expenses
  • Other Employee Allowances (Bonuses)
  • Health Insurance

Preventative Maintenance Programs
Types and Acceptable Ranges for a Preventative
Maintenance Program
  • Predictive Maintenance ( 60)
  • - Vibration Monitoring - Infrared Heat
  • - Electrical Monitoring (Volts and Amps)
  • - Flows Pressure Monitoring - Laser
  • - Wear/Corrosion Monitoring -
    Ultrasonic Testing
  • Preventative Maintenance ( 40)
  • - Performed on Regular Schedule
  • - Performed by Hours of Use
  • Planned Maintenance
  • - Performed based on History
  • - Performed based on Performance Drop
  • Breakdown Maintenance (lt 20)

3 to 10 of original Equipment cost per yr. is
spent on Maintenance in US
Evolution of a Total PM Program
Phase 1 Install PM System
Phase 2 Stabilize Mean Time Between Equipment
Phase 3 Lengthen Equipment Life
Phase 4 Periodically Restore Deterioration
Phase 5 Predict Equipment Life
Energy Management Programs
Energy Monitoring and Energy Surveys
  • The Goals are Twofold, reduce energy and/or
    reduce costs
  • Identifies the amount Energy used in a facility
    by major equipment
  • Identifies Energy Costs and Tariffs
  • Evaluates Alternatives for Reducing Energy Use
  • Identify how energy is used
  • Identify points of wasted energy
  • Identifies opportunities for improving operating
  • Identifies Savings by Replacing Inefficient
  • Identifies Cost Effectiveness of Energy

Components of a Typical Electric Bill
  • Basic Service Fee (/mo)
  • Demand Charge (/kW) (Typically
  • based on Highest 15 minutes/year)
  • Power Factor (/kvar)
  • Energy Charge (/kWh)

Listing of Energy Consuming Equipment in Water
Energy Requirements by ProcessTypically 80
85 of Energy Use in a Water Treatment System is
for Pumping
Reducing Energy Use or Costs with Pumping
  • Shifting Power Consumption from On-peak to
    Off-peak hours (Demand Limiting)
  • Adding Storage for Off peak/Emergency pumping
  • Use of Efficient Pumping Programs
  • Replacing older motors with high efficiency
    motors (cost 15 20 more).
  • Adding or replacing eddy-speed drives with
    variable frequency drives (VFDs)
  • Using Effective Instrumentation and Controls.
  • Managing operations by the efficient use of
    available storage and high-efficiency motors
  • Operating Emergency Generators for Peak-Clipping
    when no or little storage is available.
  • Shifting Rates to Another Category (Master

Energy Use for Space Heating Cooling and
Lighting are Major Users in Commercial Building
In Conclusion
  • System Planning is the most critical aspect of
    operating a water and wastewater utility
  • The planning methods discussed in this
    presentation lead to efficient and sustainable
    operations at the lowest cost to the utility
  • Assistance in any of the topics discussed in this
    presentation are available by contacting Florida
    Rural Water Association at 850-668-2746 or on the
    WEB at http.//www_at_frwa.net
Write a Comment
User Comments (0)
About PowerShow.com