11

Capacity DevelopmentCapacity Development& the Infrastructure Crisis& the Infrastructure Crisis

New York State Department of HealthNew York State Department of Health

David A. Rowley, PEDavid A. Rowley, PE

Western Region Water Supply EngineerWestern Region Water Supply Engineer

22

Aging Infrastructure CrisisAging Infrastructure Crisis

Coming soon to your Coming soon to your neighborhood?neighborhood?

33

100 years ago...100 years ago...

W.H. Taft was presidentW.H. Taft was president

Population of Las Vegas was 35Population of Las Vegas was 35

Max Speed Limit in most cities was 10 Max Speed Limit in most cities was 10 mphmph

and your water system was brand newand your water system was brand new

33

4444

ASCE- 2005ASCE- 2005

Report Card for Report Card for

American American

Infrastructure:Infrastructure:

Water & Wastewater Water & Wastewater

Utilities Grade?Utilities Grade?

““D”D”

5555

AWWA- 2001AWWA- 2001

Dawn of The Replacement Era: Reinvesting in Dawn of The Replacement Era: Reinvesting in

Drinking Water Infrastructure:Drinking Water Infrastructure:

““Repair and replacement of water mains will take Repair and replacement of water mains will take

place during the next generation on a scale never place during the next generation on a scale never

before seen.before seen.””

$277 billion over the next 20 years will be needed $277 billion over the next 20 years will be needed

to maintain current levels of service.to maintain current levels of service.

6666

What is the cause?What is the cause?

Old pipingOld piping

approaching or >100 yearsapproaching or >100 years

new regulatory requirementsnew regulatory requirements

larger service areas stressing old systemslarger service areas stressing old systems

• Are these items really the reasons for this Are these items really the reasons for this

crisis? crisis?

77

Audience Poll-Audience Poll-

Water system components> 50 years old?Water system components> 50 years old?

Written asset management plan?Written asset management plan?

AMP identify critical components- AMP identify critical components- Single Single Points of FailurePoints of Failure??

Written emergency response plan?Written emergency response plan?

Written standard operating procedures?Written standard operating procedures?

Detailed record drawings?Detailed record drawings?

Regular Rate adjustments?Regular Rate adjustments?77

Ant & the GrasshopperAnt & the Grasshopper

9999

Grasshoppers....Grasshoppers....

believe that pipes last foreverbelieve that pipes last forever

fail to plan for replacementfail to plan for replacement

fail to charge the true value of waterfail to charge the true value of water

fail to plan for emergenciesfail to plan for emergencies

promote the public perception that water promote the public perception that water

should be cheap/free.should be cheap/free.

Water service vs TV Water service vs TV service?service?Does anyone pay more for water?Does anyone pay more for water?

In many cases, We inherited this-In many cases,

We inherited this-

and turned it into- and turned it into-

this-this-

How do we achieve sustainability?

How do we achieve sustainability?

14141414

The Capacity The Capacity Development InitiativeDevelopment Initiative

SDWA provides significant authority and resources to address the small system challenge

Among the initiatives is the Capacity Among the initiatives is the Capacity Development ProgramDevelopment Program

BA

CK

GR

OU

ND

15151515

BA

CK

GR

OU

ND

Impact of SDWA on PublicImpact of SDWA on PublicWater SystemsWater Systems

Increased Requirements of Safe Drinking Increased Requirements of Safe Drinking Water Act (SDWA)Water Act (SDWA)– Stricter regulatory standardsStricter regulatory standards

Achieving compliance places a greater Achieving compliance places a greater technical, managerial, and financial technical, managerial, and financial burden on Public Water Supplies, burden on Public Water Supplies, especially small systems especially small systems

16161616

Capacity is…Capacity is…

• PlanPlan forfor

ComplianceCompliance

withwith

StandardsStandards

&&

ReliableReliable

ServiceService

andand

MaintainMaintain

AchieveAchieve

CA

PA

CIT

Y D

EV

EL

OP

ME

NT

TheThe

AbilityAbility

toto

Sustainability!Sustainability!

17171717

Three Elements of CapacityThree Elements of Capacity

Technical Capacity

ManagerialCapacity

FinancialCapacity

CA

PA

CIT

Y D

EV

EL

OP

ME

NT

18181818

What is Capacity What is Capacity Development?Development?

Process by which water systems acquire, Process by which water systems acquire, maintain, and build upon their maintain, and build upon their technicaltechnical, , managerialmanagerial, and , and financialfinancial capabilities. capabilities.

CA

PA

CIT

Y D

EV

EL

OP

ME

NT

19191919

Goal of Capacity Goal of Capacity DevelopmentDevelopment

• NonviableNonviable• WaterWater• SystemSystem

ViableViable

WaterWater

SystemSystem

Capacity

Development

CA

PA

CIT

Y D

EV

EL

OP

ME

NT

Grasshoppers

Capacity

Development

Capacity

Development

Capacity

Development

Ants

20202020

Three Elements of CapacityThree Elements of Capacity

Technical Capacity

CA

PA

CIT

Y D

EV

EL

OP

ME

NT

21212121

Technical CapacityTechnical Capacity

The physical and operational ability of a The physical and operational ability of a water system to meet regulatory water system to meet regulatory requirementsrequirements

Elements of Technical CapacityElements of Technical Capacity– Adequacy of source waterAdequacy of source water– Adequacy of infrastructureAdequacy of infrastructure– Technical knowledge/Capability of personnelTechnical knowledge/Capability of personnelT

EC

HN

ICA

L C

AP

AC

ITY

22222222

Source Water AdequacySource Water Adequacy

Does your system have a reliable and Does your system have a reliable and adequate source of drinking water to meet adequate source of drinking water to meet current and future demands and future current and future demands and future rules?rules?– Alternate sourcesAlternate sources– Backup power or other emergency provisionsBackup power or other emergency provisions– Water rightsWater rights– transmission capabilitytransmission capability– drought issues?drought issues?

TE

CH

NIC

AL

CA

PA

CIT

Y

24242424

Infrastructure AdequacyInfrastructure Adequacy

EPA definition:EPA definition:

• the system can provide water that meets the system can provide water that meets regulatory standards because its regulatory standards because its infrastructure, from source through infrastructure, from source through distribution, is in distribution, is in good condition good condition and has and has not not exceeded its useful lifeexceeded its useful life..

TE

CH

NIC

AL

CA

PA

CIT

Y

25252525

What are the condition and life expectancy What are the condition and life expectancy of infrastructure components (from source of infrastructure components (from source through distribution)?through distribution)?– Evaluate all system components for proper Evaluate all system components for proper

operation to maintain adequate water quality operation to maintain adequate water quality and quantityand quantity

– Asset Inventory - Identify what components Asset Inventory - Identify what components must be repaired, replaced, or upgraded must be repaired, replaced, or upgraded based on life expectancy and future needsbased on life expectancy and future needs

Infrastructure AdequacyInfrastructure AdequacyT

EC

HN

ICA

L C

AP

AC

ITY

26262626

Does the system have an asset Does the system have an asset management plan (AMP)?management plan (AMP)?– An AMP is a tool to help you plan, fund, and An AMP is a tool to help you plan, fund, and

carry out necessary infrastructure carry out necessary infrastructure replacements and improvements.replacements and improvements.

– Use the asset inventory and life expectancy Use the asset inventory and life expectancy information to help develop a AMPinformation to help develop a AMP

– 5-year projection and update every year5-year projection and update every year

Infrastructure AdequacyInfrastructure AdequacyT

EC

HN

ICA

L C

AP

AC

ITY

27272727

Does the system have access to trained Does the system have access to trained personnel?personnel?– Are operators properly certified?Are operators properly certified?– Does the system have an O&M manual?Does the system have an O&M manual?– Standard Operating Procedures?Standard Operating Procedures?– Is there a formal training program for Is there a formal training program for

operators?operators?

Technical Knowledge /Technical Knowledge /Capability of PersonnelCapability of Personnel

TE

CH

NIC

AL

CA

PA

CIT

Y

28282828

Three Elements of CapacityThree Elements of Capacity

Technical Capacity

ManagerialCapacity

CA

PA

CIT

Y D

EV

EL

OP

ME

NT

29292929

Managerial CapacityManagerial Capacity

The expertise of the water system’s The expertise of the water system’s personnel to administer the system’s personnel to administer the system’s overall operations, including institutional overall operations, including institutional and administrative capabilitiesand administrative capabilities

MA

NA

GE

RIA

L C

AP

AC

ITY

30303030

Ownership AccountabilityOwnership Accountability

Staffing and OrganizationStaffing and Organization

Effective External LinkagesEffective External Linkages

Elements of Managerial Elements of Managerial CapacityCapacity

MA

NA

GE

RIA

L C

AP

AC

ITY

31313131

Ownership AccountabilityOwnership Accountability

Are the system owners clearly identified?Are the system owners clearly identified?

Can the owners be held accountable for Can the owners be held accountable for the system?the system?

MA

NA

GE

RIA

L C

AP

AC

ITY

35353535

Three Elements of CapacityThree Elements of Capacity

Technical Capacity

ManagerialCapacity

FinancialCapacity

CA

PA

CIT

Y D

EV

EL

OP

ME

NT

36363636

Financial CapacityFinancial Capacity

Financial resources and fiscal Financial resources and fiscal management that support the cost of management that support the cost of operating the water systemoperating the water system

Elements of Financial CapacityElements of Financial Capacity– Revenue sufficiencyRevenue sufficiency– Credit worthinessCredit worthiness– Fiscal controlsFiscal controlsF

INA

NC

IAL

CA

PA

CIT

Y

37373737

Revenue SufficiencyRevenue Sufficiency

Do revenues cover costs?Do revenues cover costs?– subsidy program?subsidy program?

Does the system charge an appropriate Does the system charge an appropriate rate for water service?rate for water service?

Does the system have revenue to fund an Does the system have revenue to fund an asset management plan?asset management plan?

FIN

AN

CIA

L C

AP

AC

ITY

39393939

Fiscal ManagementFiscal Managementand Controlsand Controls

Are records maintained?Are records maintained?

Are appropriate budgeting, accounting Are appropriate budgeting, accounting and financial planning methods used?and financial planning methods used?

Does the system manage its revenues Does the system manage its revenues effectively?effectively?

FIN

AN

CIA

L C

AP

AC

ITY

44444444

Capacity DevelopmentCapacity Developmentand the Ownerand the Owner

1.1. Know your system (Managerial Capacity)Know your system (Managerial Capacity)2.2. Be familiar with regulations and their general Be familiar with regulations and their general

requirements (Technical Capacity)requirements (Technical Capacity)3.3. Communicate with your operators – The top complaint Communicate with your operators – The top complaint

operators and other employees have about their operators and other employees have about their board/council board/council “They don’t listen to what I say.” “They don’t listen to what I say.” (Managerial Capacity)(Managerial Capacity)

4.4. Communicate with your customers (Managerial Communicate with your customers (Managerial Capacity)Capacity)

5.5. Create and implement an asset management plan Create and implement an asset management plan (Managerial and Financial Capacity)(Managerial and Financial Capacity)

6.6. Ensure water rates are appropriate to finance the Ensure water rates are appropriate to finance the operation of your system (Financial operation of your system (Financial Managerial Managerial Technical)Technical)

RO

LE

IN

PU

BL

IC H

EA

LT

H

45454545

Capacity DevelopmentCapacity Developmentand the Ownerand the Owner

7.7. Know where to get assistance (Technical, Managerial, Know where to get assistance (Technical, Managerial, and Financial Capacity)and Financial Capacity)

8.8. Know your staff and their job responsibilities. A clear Know your staff and their job responsibilities. A clear division of labor helps everybody know who’s doing division of labor helps everybody know who’s doing what, why and when. (Managerial Capacity)what, why and when. (Managerial Capacity)

9.9. Know your own responsibilities and liabilitiesKnow your own responsibilities and liabilities10.10. Plan for the future (Managerial Capacity)Plan for the future (Managerial Capacity)

– Do you know what it will take to meet future Do you know what it will take to meet future operating demands?operating demands?

– Are you prepared to handle emergencies Are you prepared to handle emergencies (contingency planning)?(contingency planning)?

- Do you have a business plan or asset management Do you have a business plan or asset management plan?plan?R

OL

E I

N P

UB

LIC

HE

AL

TH

Questions?Questions?David A. Rowley, PEDavid A. Rowley, PE

Regional Water Supply EngineerRegional Water Supply Engineer

New York State Department of HealthNew York State Department of Health

Western RegionWestern Region

dar08@health.state.ny.us