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

2 Aging Infrastructure Crisis Coming soon to your neighborhood?

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

44 ASCE Report Card for American Infrastructure: Water & Wastewater Utilities Grade? D

55 AWWA 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.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.

66 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? Are these items really the reasons for this crisis?

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

Ant & the Grasshopper

99Grasshoppers.... 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.

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

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

this-

How do we achieve sustainability?

1414 The Capacity Development Initiative SDWA provides significant authority and resources to address the small system challenge Among the initiatives is the Capacity Development Program BACK GROUND

1515 BACK GROUND Impact of SDWA on Public Water 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

1616 Capacity is… Plan for Plan for CompliancewithStandards&ReliableService andMaintain Achieve CAPACITY DEVELOPMENT TheAbilityto Sustainability!

1717 Three Elements of Capacity Technical Capacity Managerial Capacity Financial Capacity CAPACITY DEVELOPMENT

1818 What is Capacity Development? Process by which water systems acquire, maintain, and build upon their technical, managerial, and financial capabilities. CAPACITY DEVELOPMENT

1919 Goal of Capacity Development Nonviable Nonviable Water Water System SystemViableWaterSystem Capacity Development CAPACITY DEVELOPMENT Grasshoppers Capacity Development Capacity Development Capacity Development Ants

2020 Three Elements of Capacity Technical Capacity CAPACITY DEVELOPMENT

2121 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 TECHNICAL CAPACITY

2222 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? TECHNICAL CAPACITY

2323 Source Water Adequacy Is the source of high quality and adequately protected? Is the source of high quality and adequately protected? Proximity to contamination sources Proximity to contamination sources Do you monitor and evaluate raw water quality Do you monitor and evaluate raw water quality Do you have wellhead protection plan or source water protection plan? Do you have wellhead protection plan or source water protection plan? NOT DUST COLLECTION DEVICES! – Prevention vs Cure! TECHNICAL CAPACITY

2424 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. 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. TECHNICAL CAPACITY

2525 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 Infrastructure Adequacy TECHNICAL CAPACITY

2626 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 Infrastructure Adequacy TECHNICAL CAPACITY

2727 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? Technical Knowledge / Capability of Personnel TECHNICAL CAPACITY

2828 Three Elements of Capacity Technical Capacity Managerial Capacity CAPACITY DEVELOPMENT

2929 Managerial Capacity The expertise of the water systems personnel to administer the systems overall operations, including institutional and administrative capabilities MANAGERIAL CAPACITY

3030 Ownership Accountability Staffing and Organization Effective External Linkages Elements of Managerial Capacity MANAGERIAL CAPACITY

3131 Ownership Accountability Are the system owners clearly identified? Can the owners be held accountable for the system? MANAGERIAL CAPACITY

3232 Staffing and Organization Are the system operators and managers clearly identified? Is the system properly organized and staffed? Do ALL personnel understand applicable regulatory requirements? Do personnel have adequate expertise to manage operations, including necessary licenses and certifications? Are SOPs established and followed? Are personnel adequately trained? MANAGERIAL CAPACITY

3333 Responsibility of Managers –Set goals for system –Make system viable –Protect public health –Provide high quality of service to public Good Management = Quality Operation Poor Management = Poor Service Staffing and Organization MANAGERIAL CAPACITY

3434 Effective External Linkages Does systems staff interact well with customers, regulators, and other entities? Is the staff aware of available external resources, such as technical and financial assistance? MANAGERIAL CAPACITY

3535 Three Elements of Capacity Technical Capacity Managerial Capacity Financial Capacity CAPACITY DEVELOPMENT

3636 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 FINANCIAL CAPACITY

3737 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? FINANCIAL CAPACITY

3838 Credit Worthiness Is the system financially healthy? Does the system have access to financial capital? FINANCIAL CAPACITY

3939 Fiscal Management and Controls Are records maintained? Are appropriate budgeting, accounting and financial planning methods used? Does the system manage its revenues effectively? FINANCIAL CAPACITY

4040 Protecting Public Health CAPACITY MANAGEMENTREVENUE CERTIFIED OPERATOR COMPLIANCE PUBLIC HEALTH ROLE IN PUBLIC HEALTH

4141 Operators Role in Capacity Development 1. Obtain proper certification (Technical, Managerial) 2. Keep up to date with regulations, including monitoring and reporting requirements (Technical) 3. Communicate with your owners, superiors, or board members (Managerial) 4. Help create and implement an asset management plan (Managerial and Financial) 5. current on technological advances in the industry (Technical) 5. Keep current on technological advances in the industry (Technical) 6. Inspect your system regularly (Technical) –Find leaks. Water losses can be significant and end up costing money. Fixing leaks is like generating new revenue. ROLE IN PUBLIC HEALTH

4242 Capacity Development and the Operator 7. Know where to get assistance (Technical, Managerial, and Financial Capacity) 8. Complete reports in a timely manner (Managerial Capacity) 9. Conduct self assessment (Technical, Managerial, and Financial Capacity) 10. Develop and implement an effective operation and maintenance program (Technical Capacity) 11. Implement organized approach to conduct maintenance (SOP) (Managerial Capacity) ROLE IN PUBLIC HEALTH

4343 Capacity Development and the Operator 11. Know your job responsibilities - outline responsibilities with supervisor (Managerial Capacity) 12. 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? ROLE IN PUBLIC HEALTH

4444 Capacity Development and the Owner 1. Know your system (Managerial Capacity) 2. Be familiar with regulations and their general requirements (Technical Capacity) 3. Communicate with your operators – The top complaint operators and other employees have about their board/council They dont listen to what I say. (Managerial Capacity) 4. Communicate with your customers (Managerial Capacity) 5. Create and implement an asset management plan (Managerial and Financial Capacity) 6. Ensure water rates are appropriate to finance the operation of your system (Financial Managerial Technical) ROLE IN PUBLIC HEALTH

4545 Capacity Development and the Owner 7. Know where to get assistance (Technical, Managerial, and Financial Capacity) 8. Know your staff and their job responsibilities. A clear division of labor helps everybody know whos doing what, why and when. (Managerial Capacity) 9. Know your own responsibilities and liabilities 10. 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? ROLE IN PUBLIC HEALTH

4646 New York States Capacity Development Program and Strategy CAPACITY DEVELOPMENT PROGRAM

4747 Capacity Development Program Drinking Water State Revolving Fund (DWSRF) applicants-capacity assessments are conducted on those systems seeking funding Capacity assurance for NEW water systems (community and nontransient noncommunity) Capacity development for all EXISTING public water systems CAPACITY DEVELOPMENT PROGRAM

4848 DWSRF Incentives for Capacity Development SDWA prohibits New York from providing DWSRF assistance to: –A public water system that does not have adequate capacity –A public water system that is in significant noncompliance with state and federal drinking water requirements –UNLESS… CAPACITY DEVELOPMENT PROGRAM

4949 DWSRF Incentives for Capacity Development Unless the DWSRF funding will: –Help the system achieve and maintain compliance, and –The system will make changes to its operations to ensure capacity over the long- term CAPACITY DEVELOPMENT PROGRAM

5050 DWSRF Incentives for Capacity Development As an ongoing process, NYSDOH and the Environmental Facilities Corporation (EFC) conduct capacity assessments on DWSRF applicants. These assessments include: –An evaluation of the systems technical, managerial, and financial capabilities –The systems regulatory compliance record –The systems long-term plan to maintain adequate capacity. CAPACITY DEVELOPMENT PROGRAM

5151 Capacity Evaluations for Existing Systems Capacity assessments conducted on all Public Water Supplies (Including noncommunity water supplies) Includes provision for assisting systems in need of capacity development CAPACITY DEVELOPMENT PROGRAM

5252 Capacity Development Strategy Implementation: –Capacity Development strategy –Strengths and weaknesses of PWSs are evaluated so that PWSs can acquire the capacity it lacks and/or maintain and build upon the capacity it possesses Take what you have and improve it CAPACITY DEVELOPMENT PROGRAM

5353 Capacity Development Strategy Identifies systems needing assistance Establishes methods to measure capacity Prioritizes systems in need Identifies barriers that impair capacity development Identifies resources and methods to bring assistance to troubled systems CAPACITY DEVELOPMENT PROGRAM

Questions? David A. Rowley, PE Regional Water Supply Engineer New York State Department of Health Western Region