1. Effectively Managing Your Water System Project Rural Community Assistance Partnership Practical solutions for improving rural communities © 2012 All rights reserved. Rural Community Assistance Partnership, Inc. This presentation may not be used in any for-profit venture without permission from RCAP, Inc.

2. Western RCAP Rural Community Assistance Corporation (916) 447-2854 www.rcac.org Midwest RCAP Midwest Assistance Program (952) 758-4334 www.map-inc.org Southern RCAP Community Resource Group (479) 443-2700 www.crg.org Northeast RCAP RCAP Solutions (800) 488-1969 www.rcapsolutions.org Great Lakes RCAP WSOS Community Action Commission (800) 775-9767 www.glrcap.org Southeast RCAP Southeast Rural Community Assistance Project (866) 928-3731 www.southeastrcap.org Rural RCAP National Office 1701 K St. NW, Suite 700 Washington, DC 20006 (800) 321-7227 www.rcap.org | info@rcap.org Community Assistance Practical solutions for improving rural communities Partnership This training was created by

3. Introduction This training module will enable you to:  identify and list anticipated tasks of managing a project prior to beginning a water-treatment project  demonstrate and develop confidence to successfully manage a water project  explain concepts and terms associated with the management of a water-treatment project  identify common challenges associated with managing a water-treatment project

4. During this training module, we’ll be describing:  what to expect before starting a project  the general process of managing a project  how to avoid some of the common pitfalls and problems while managing a project Introduction

5.  Smallville doesn’t currently have a public water system to provide water to its residents. The residents currently obtain water through private wells.  There is little point in building a water system just for the sake of it. Smallville needs to determine if there is a genuine need for a public water system. Smallville needs water!

6.  Polluted groundwater/wells  Other quality or quantity issues  Poor fire service from existing sources  Promotion of growth  Consumers’ complaints Why build a water system?

7.  Rural Community Assistance Partnership (RCAP)  Primacy agency capacity-development programs  Primacy agency compliance assistance staff  Rural Water Associations  Primacy agency engineering services programs  University environmental training programs Technical assistance providers

8. Your system’s business plan must:  identify the water-supply needs of the area  identify alternatives to address those needs  evaluate the alternatives  recommend a specific alternative  identify how the organization that will implement that alternative will be structured and operate  demonstrate that the operation of the proposed alternative will be financially viable for a period of at least five years Business plan

9. Your business plan must contain a facilities plan:  an assessment of the current and future water-supply needs  a description of alternatives with both construction and operating costs and a rationale for the approach Facilities plan

10. Your business plan must contain a management plan:  documentation that the applicant has the legal right and authority to construct, operate, and maintain the system  a management and administrative plan  an operation and maintenance plan Management plan

11. Your business plan must contain a financial plan: Projections and assurances that the system’s revenues and cash flow will be sufficient for meeting the costs of construction, operation and maintenance for at least five full years from initiation of operations Financial plan

12. The feasibility study is an engineering report that addresses:  source  treatment type  distribution system  construction, operations and maintenance and other costs  customer base  capacity vs. need/demand Feasibility study

13.  Begin by sending a request for proposals (RFP) to engineering firms.  Interested firms will respond to the RFP, and you will need to interview your top choices.  Engineering services may not need to be bid competitively.  Ask questions related to your study and to the firm’s past work history. Hiring an engineer

14.  loans  grants  loan/grant combinations  bonds Funding your project

15. 1.Every proposed water system must complete a _____ _____ as a requirement of the permitting process. 2.Polluted _____ is a good justification for further investigating the need for a public water system. 3.If you qualify, you may be able to receive low- or no-cost assistance with managing the project from a _____ _____ provider. Exercise #1

16. 4.A business plan contains three main sections: the _____ plan, the _____ plan, and the _____ plan. 5.RFP stands for ______ _____ _____. 6._____ surveys may be required by some funding sources. Exercise #1 (continued)

17.  Issue an RFP for design.  Interview engineers and choose one.  Finalize feasibility study: –source –treatment type –distribution system –customer base –capacity –costs –O&M requirements System design

18.  System designs must be submitted and approved by your state’s primacy agency.  System designs must be accompanied by the business plan.  Protect your system: Make sure your system owns its design drawings. Get design approved

19.  Construction will be bid competitively –Fair and competitive bidding process –Avoids conflict of interest and legal complications  Change orders in writing, approved by board  Excessive cost changes may be re-bid  Timely inspections and corrections System construction

20.  Office and equipment –Computers –Furniture –Software  Staff –Operators –O&M –Office help Start-up considerations

21.  Tap fees for connection  Rate structure –Flat rate: A set amount paid monthly, quarterly or annually –Charge based on amount of water used Structuring rates

22.  A way to plan for the future  Emergency reserves Annual budgeting

23.  Test your water  In-house testing  External laboratory testing Quality Control

24. 1.Change orders should always be in _____ form. 2.It is important to specify the ____ of the design drawings. 3.The construction of the water system will have to be _____ competitively; there are extensive requirements associated with this process. Exercise #2

25. 4.You want to make certain you receive the _____ drawings following construction. 5.The fee paid by customers when first connecting to the system is the ___ ___. 6.It is critical to keep a close eye on your _____ at start-up, or you may wind up with cash flow problems. Exercise #2 (continued)

26.  Project management is a complex process that follows a general order.  Board members and personnel of water systems can avoid a painful learning curve by being familiar with the project-management process and knowing what to expect.  This familiarity can result in avoidance of problems and cost overruns throughout the project.  You aren’t on your own. Technical assistance providers, consultants, and engineers can help you through the process. Summary

27. For more help Get RCAP’s comprehensive guide on constructing and developing water and wastewater infrastructure. 66 pages of how-tos and tips for a successful project. Find it online at www.rcap.org/commpubs Also on that page, find other RCAP guides on other topics mentioned in this training module.

28. Questions? ?