Tag: capital efficiency plans

The Proposed 2018 Budget Cuts Require Water Systems to Practice Capital Efficiency

In recent years, water systems have been faced with challenges that are unique to modern times. Our nation’s buried infrastructure is reaching a critical juncture in that it is nearing or has reached the end of its useful life, or is in dire need of replacement due to the presence of lead. At the same time, climate change is affecting supplies, while a burgeoning population is creating a larger demand. And as we increase our knowledge about the dangers of additional contaminants in our drinking water, utilities are saddled with increased regulations that require strict compliance by specific deadlines. Obtaining compliance often requires extensive upgrades or completely new infrastructure, all of which come with a high price tag.

And therein lies the problem. While water systems are facing such a complex set of challenges that require significant expenditure, available capital is quickly drying up. Water systems are seeing their budgets slashed while operations and maintenance costs soar. In addition, funding sources have been dwindling, and President Trump’s 2018 budget aims to slash them even further. In fact, Trump’s proposed 2018 budget completely eliminates the United States Department of Agriculture (USDA) Rural Development Water and Waste Disposal Loan and Grant Program. This program “provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and stormwater drainage to households and businesses in rural areas who are not otherwise able to obtain commercial credit on reasonable terms.”1 In other words, lower income rural communities who fully rely on USDA Rural Development grants to fund their water system improvements will no longer have a source of federal funding.

The proposed 2018 budget also budget cuts the Environmental Protection Agency (EPA) by 31%, or $5.7 billion. The EPA provides funding to water systems through its Drinking Water State Revolving Fund (DWSRF) and Clean Water State Revolving Fund (CWSRF) programs, both of which “provide communities a permanent, independent source of low-cost financing for a wide range of water quality infrastructure projects.”2 Considering that almost all spending on critical infrastructure such as drinking water, wastewater, and transportation is provided by the public sector, these cuts are expected to make a huge impact on available funding for critical water infrastructure projects.

Because working capital is becoming so scarce, it is critical that water systems manage their assets with an eye on efficiency and systematic planning. Asset management is arguably one of the most important strategies for effectively maintaining utilities today and critical to the health and maintenance of water systems. Key components of a utility asset management plan include performing an inventory and condition assessment of the system’s assets, defining level of service goals, identifying critical assets, establishing life cycle costs, and developing a long-term funding strategy. In other words, a successful asset management plan requires a thoughtful, systematic approach that provides for the rehabilitation and replacement of assets over time, while also maintaining an acceptable level of service for existing assets.

Advanced condition assessment for pipeline rehabilitation provides insight into the quality and reliability of a water distribution system.

Today’s stringent budgets demand precise efficiency and cost-effectiveness, and determining which assets should be prioritized can be a challenge. It is no longer economically feasible to create an asset replacement schedule based solely on life cycle and critical components; rather, utilities today must pinpoint assets that are most in need of repair or replacement in order to stretch existing capital and justify new budget requests.

Capital efficiency planning helps to do just that.  Our proprietary Capital Efficiency Plan™ (CEP) methodology combines the concepts of asset management, hydraulic modeling, and system criticality into a customized, comprehensive report that provides utilities with a roadmap for future repair and replacement. The report includes database and GIS representation for each pipe segment within their underground piping system, prioritizes water distribution system piping improvements, and provides estimated costs for water main replacement and rehabilitation. Because each water system has unique characteristics and challenges, our CEP includes a workshop with knowledgeable field staff and managers for each project that helps to fill in data gaps, correct incorrect records, and identify specific issues and critical components that are custom to the system. The results of the workshop provide significant value by improving the quality of the asset data and the accuracy of the hydraulic model. Because the CEP utilizes a highly structured, detailed, and targeted approach, utilities can confidently justify the costs of repairing or replacing those assets most in need of repair or replacement when preparing annual budgets. Our CEPs have assisted numerous utilities throughout New England by providing a practical and easily understandable plan to critical asset repair and replacement, as well as an advantage when it comes to procuring funding.  The same approach can be applied to above ground assets as well as wastewater and stormwater systems.

Land that was once covered by water from the lake is now exposed.

Increasing regulations, climate change, shrinking budgets, dwindling supply, and population growth — these are all challenges that affect the financial capacity of today’s utilities. And with the proposed budget cuts under the Trump administration, water systems will feel even greater fiscal pressure. Competition for SRF funding will intensify, and utilities will be required to definitively justify the reason for their funding request. By combining asset management with hydraulic modeling and system criticality, our Capital Efficiency Plans™ can help utilities to maintain the health and viability of their water systems today so that they can continue to provide safe, clean drinking water tomorrow, and well into the future.

1 rd.usda.gov
2 epa.gov

 

Fix a Leak Week 2017

Fix-a-leak-week
The Facts on Leaks

March 19-25 is Fix a Leak Week 2017.

Fix a Leak Week is celebrated in March of each year as a time to remind Americans to check their household fixtures and irrigation systems for leaks. In addition, it is a good time to address the leaks that we cannot see — those in our underground infrastructure. By addressing leaks in our homes and in our water systems, we can help to save our world’s most precious resource.

Leaks in the Home

  • The average household’s leaks can account for more than 10,000 gallons of water wasted every year, or the amount of water needed to wash 270 loads of laundry.
  • Household leaks can waste more than one trillion gallons annually nationwide. That’s equal to the annual household water use of more than 11 million homes.
  • 10% of homes have leaks that waste 90 gallons or more per day.
  • Common types of leaks found in the home include worn toilet flappers, dripping faucets, and other leaking valves. All are easily correctable.
  • Fixing easily corrected household water leaks can save homeowners about 10%  on their water bills.
  • Keep your home leak-free by repairing dripping faucets, toilet flappers, and showerheads. In most cases, fixture replacement parts don’t require a major investment.
  • Most common leaks can be eliminated after retrofitting a household with new WaterSense labeled fixtures and other high-efficiency appliances.

Leak Detection:

  • fix-a-leak-week-2017A good method to check for leaks is to examine your winter water usage. It’s likely that a family of four has a serious leak problem if its winter water use exceeds 12,000 gallons per month.
  • Check your water meter before and after a two-hour period when no water is being used. If the meter does not read exactly the same, you probably have a leak.
  • One way to find out if you have a toilet leak is to place a drop of food coloring in the toilet tank. If the color shows up in the bowl within 10 minutes without flushing, you have a leak. Make sure to flush immediately after this experiment to avoid staining the tank.

Faucets and Showerheads:

  • leaking-faucetA leaky faucet that drips at the rate of one drip per second can waste more than 3,000 gallons per year. That’s the amount of water needed to take more than 180 showers!
  • Leaky faucets can be fixed by checking faucet washers and gaskets for wear and replacing them if necessary. If you are replacing a faucet, look for the WaterSense label.
  • A showerhead leaking at ten drips per minute wastes more than 500 gallons per year. That’s the amount of water it takes to wash 60 loads of dishes in your dishwasher.
  • Most leaky showerheads can be fixed by ensuring a tight connection using pipe tape and a wrench. If you are replacing a showerhead, look for one that has earned the WaterSense label.

Toilets:

  • If your toilet is leaking, the cause is often an old, faulty toilet flapper. Over time, this inexpensive rubber part decays, or minerals build up on it. It’s usually best to replace the whole rubber flapper—a relatively easy, inexpensive do-it-yourself project that pays for itself in no time.
  • If you do need to replace the entire toilet, look for a WaterSense labeled model. If the average family replaces its older, inefficient toilets with new WaterSense labeled ones, it could save 13,000 gallons per year. Retrofitting the house could save the family nearly $2,400 in water and wastewater bills over the lifetime of the toilets.

Outdoors:

  • leaking-hoseAn irrigation system should be checked each spring before use to make sure it was not damaged by frost or freezing.
  • An irrigation system that has a leak 1/32nd of an inch in diameter (about the thickness of a dime) can waste about 6,300 gallons of water per month.
  • To ensure that your in-ground irrigation system is not leaking water, consult with a WaterSense irrigation partner who has passed a certification program focused on water efficiency; look for a WaterSense irrigation partner.
  • Check your garden hose for leaks at its connection to the spigot. If it leaks while you run your hose, replace the nylon or rubber hose washer and ensure a tight connection to the spigot using pipe tape and a wrench.

If you find any of these leaks, and need assistance on how to fix them, visit the EPA’s “Fixing Leaks at Home” page.

Leaks in Our Nation’s Infrastructure

water-main-break
A 20-inch water main break in Portland, Maine’s Bayside neighborhood. The rupture of a century-old water main flooded Somerset Street, disrupted 4,000 homes and businesses, and prompted a 24-hour boil-water notice. Most of Portland’s pipes are old. John Patriquin / Portland Press Herald Staff Photographer

About 20% of our nation’s drinking water is “lost” before it reaches the consumer, amounting to about seven billion gallons of clean, treated water lost in this way every day. Also called non-revenue water, this lost water would be enough to supply the ten largest cities in the United States for a full year. It also accounts for billions of dollars in lost revenue each year – funds that utilities desperately need to keep their systems running smoothly and safely. Most of this non-revenue water is the result of our nation’s leaking, aging pipes, which received a grade of D on the American Society for Civil Engineers (ASCE) 2017 Report Card.

Fixing our Nation’s Infrastructure:

  • Conduct water audits, which take into account both real and apparent losses and are the most efficient, cost-effective way to accurately assess non-revenue water.
  • Conduct Capital Efficiency Plans™, which pinpoint and prioritize areas in a system most in need of improvement.
  • Pass legislation that increases available funding for water systems.
  • Conduct Business Practice Evaluations to allow utilities to function more efficiently and to utilize their limited dollars more effectively.

Feel free to share the above infographic (with attribution), download a printable PDF, or request a printed poster.

During Fix a Leak Week, while we focus on leaks and repairs in our homes, let’s also give attention to our nation’s crumbling infrastructure. Through careful management and capital planning, efficient use of infrastructure budgets, and increased infrastructure funding, we can assure we have a sufficient, safe, sustainable water supply for generations to come.

www.epa.gov

A DPW Director’s Guide to Improving Utilities with Limited Capital

dpw-directorWater systems today face a set of problems that are unique to this generation. While our nation’s buried infrastructure is crumbling beneath our feet as it reaches the end of its useful life, supplies are dwindling, budgets are shrinking, and federal and state funding is drying up. At the same time, regulatory requirements continue to increase as emerging contaminants are identified. Water systems often find themselves in the quandary of whether to upgrade treatment systems to comply with these new regulations or update assets that are long overdue for replacement or rehabilitation.

Savvy DPW directors recognize the need for thinking outside the box when it comes to water system management. Gone are the days of simply allocating annual budgets to the required maintenance of assets. Instead, careful planning, thoughtful operations, and superior efficiency are the new requirements for successful utility management, and can all be accomplished with limited capital investment.

Planning for the Future with Capital Efficiency Plans™

Asset management planning is critical to the health and maintenance of water utilities. Part of a successful asset management plan is the development of a planned, systematic approach that provides for the rehabilitation and replacement of assets over time, while also maintaining an acceptable level of service for existing assets. But how are utilities able to determine which assets should be prioritized? The answer is through a multi-faceted approach to asset management.

Our Capital Efficiency Plan™ (CEP) methodology is unique in that it combines the concepts of asset management, hydraulic modeling, and system criticality into a single comprehensive report that is entirely customized to the individual utility distribution system. The final report provides utilities with a database and Geographic Information System (GIS) representation for each pipe segment within their underground piping system, prioritizes water distribution system piping improvements, and provides estimated costs for water main replacement and rehabilitation. Because the CEP takes a highly structured, three-pronged approach, utilities can decisively prioritize those assets most in need of repair or replacement, and are able to justify the costs of those critical projects when preparing annual budgets.

Increasing Operational Efficiency with Business Practice Evaluations

water-operations-evaluationIn addition to addressing capital efficiency, water utilities of today must also address operational efficiency. Because water systems are required to do so much with so little, efficiency in all aspects of water system management is critical. Tata & Howard appreciates the unique set of challenges faced by water systems today, and we have experts on staff who understand the inner workings of a water utility – and how to improve them.

Our Business Practice Evaluation (BPE) was designed by James J. “Jim” Courchaine, Vice President and National Director of Business Practices, who has over 45 years of experience in every facet of water and wastewater management, operations, and maintenance. He is a certified Water Treatment and Distribution System Operator, Grade 4c (MA) and RAM-W (Risk Assessment Methodology for Water). He also taught courses at the University of Massachusetts, Lowell for ten years on water system operations. Jim does not approach utility operations from the perspective of an engineer; rather, he has deep experience in utility operations and management as an actual operator.

Our BPEs assess the health of a utility’s work practices by implementing a framework for a structured approach to managing, operating, and maintaining in a well-defined manner. The overall goal of the assessment process is more efficient and effective work practices, and the assessment includes documentation of current business practices, identification of opportunities for improvement, conducting interviews including a diagonal slice of the organization, and observation of work practices in the field. The BPE encourages utilities to operate as a for-profit business rather than as a public supplier, which results in more efficient, cost effective operational and managerial procedures — and an improved bottom line. Water systems that have conducted a BPE have found significant improvement in the operational efficiency of their utility.

Improving the Environment — and the Bottom Line — with Water Audits

water-meters-water-auditsBesides improving operational and capital efficiency, water systems of today must reduce non-revenue water. Non-revenue water is treated drinking water that has been pumped but is lost before it ever reaches the customer, either through real losses such as leaks, or through apparent losses such as theft or metering issues. In the United States, water utilities lose about 20% of their supply to non-revenue water. Non-revenue water not only affects the financial health of water systems, but also contributes to our nation’s decreasing water supply. In fact, the amount of water “lost” over the course of a year is enough to supply the entire State of California for that same year. Therefore, the AWWA recommends that every water system conduct an annual water audit using M36: Water Audits and Loss Control methodology to accurately account for real and apparent losses.

A water audit helps water systems identify the causes of water loss, as well as the true costs of this loss. An effective water audit will help a water system reduce water loss, thus recapturing lost revenue. Water loss typically comes as a result of aging, and deteriorating infrastructure, particularly in the northeast, as well as policies and procedures that lead to inaccurate accounting of water use. Water audits are the most cost-effective and efficient solution to increasing demand, and, like BPEs, water audits usually pay for themselves in less than a year.

In Conclusion

Today’s DPW Directors are faced with the burden of increasing regulations along with decreasing supply, budgets, and funding. For water systems to continue to effectively function, they must remain profitable, which means they must implement efficiencies on all fronts. CEPs, BPEs, and water audits are all low-cost methodologies that improve efficiency with an extremely short return on investment. In addition, water systems that proactively plan for the future will more easily weather the threats of climate change and population growth. Capital and operational efficiency combined with identifying and addressing sources of non-revenue water will position water system to continue to provide safe, clean drinking water for future generations.