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Entries for the 'Consolidation' Category
Jennifer Wilson posted on May 12, 2011 12:36
We know. It can be hard to build good relationships with neighboring communities. There is often so much history there and things are, well, the way they are. But we don't want you to give up, because there is a lot of opportunity to be had if differences can be set aside.
 Consolidation can be a scary thing. "We'll lose our autonomy," you think. But it's not the only option. Fortunately there are partnership and restructuring solutions that can be considered long before the big C.
We posted an article here more than a year ago, that's worth a re-read or a first time visit. "More About Restructuring and Sustainability" offers a selection of great resources for learning more. Time- and cost-savings can be had with even the most simple solutions, like bulk-ordering chemicals.
With an open mind and good will towards your neighbors, these options can stave off bigger changes and help your community continue to support a healthy water system.
Steve Wilson posted on September 29, 2010 13:24 
It's on CNBC this Thursday night, September 30, at 8pm Central Time.
What Is It?
Liquid Assets - The Story Of Our Water Infrastructure is a documentary that talks about the history, engineering, and upcoming issues facing water, wastewater, and stormwater infrastucture in the United States. It is meant to engage the public in local discussion about these issues and start the dialogue for communities so they can understand that everyone needs to be involved and engaged in protecting their water supplies and water/wastewater systems. There are many political and economic realities facing communities in the near future, and this film provides a starting point for communities to begin planning for their futures. You can view a summary of the documentary here.
Do You Want To Remain An Independent, Local Water System?
If you do, then this film is a wake up call. There are going to be way more infrastructure needs in the future than there will be monies to pay for it, so now is the time to start planning and working at a community level to develop a sustainable system. You, as an operator, need to engage your customers, get them involved, and begin working together to address your sustainability issues. If you don't take care of yourselves, at some point, when you need major infrastructure upgrades, there might not be anywhere to turn for the resources, and that could mean losing the ability to run your system on your own.
The Government Will Give Us A Grant.......
This attitude has been the downfall of many a small system. Now days, because funding is more scarce, and because there are obvious economies of scale for consolidated systems, you might not be able to get the loan or grant you need unless you are willing to combine your system with a neighbor. In many cases, this may actually be the best solution for both communities, but its still difficult to take when you aren't making those decisions on your own terms.
That Won't Happen To Us
In 1990, there were about a 1000 water systems in Kentucky and today there are less than 400. Most of those system that were lost needed to consolidate because they were not sustainable on their own for a variety of reasons. But there were also some that could have become sustainable if they just would have realized that maintaining a good water and wastewater system is one of the most important things a community can do for itself. It's not a short term issue that can fix itself, its a continual responsibility that requires long-range planning and community buy in so that 40 years from now, the community is still able to take care of themselves. You need to ask yourself how important your small community is to you. Without a safe, reliable water supply, what do you really have? I wonder how many of the systems in Kentucky thought they would be consolidated today? Probably not very many.
So Tell Everyone To Watch Tomorrow Night
At a minimum, call your board members, mayor, co-workers, friends, etc., let them know its showing, ask them to watch it. If possible, let everyone in your community know about it, it will open their eyes, and might even make your job easier. One of the biggest hurdles to having a viable water system is the community members themselves who don't see the value in having a good water system or a skilled operator. The video talks about it being undervalued because its out of site and out of mind. This is one way to help with that.
Steve Wilson posted on January 18, 2010 07:24 
Restructuring, consolidation, and sustainability aren't anything new. Recently though, there has been more talk about these issues as the industry begins to focus more efforts on small systems and increasing overall compliance rates for public water supplies.
Sustainability
Sustainability is the hot buzz word these days, but what does it mean? It's much more than being able to run your water supply in the black. It means developing a business plan for the long term, planning now for the large infrastructure upgrade you will need in 25 years, being prepared for changes in the rules or when an emergency arises, and making plans for staffing and knowledge retention, should you leave or retire. It means a lot of work, but for those who practice it, they will tell you it's rewarding work and knowing you are taking care of your future is a great feeling.
Sounds Like A Lot Of Gloom And Doom
When you are already frustrated at the expectations put on you to maintain a water supply, talk of sustainability seems like it must be for someone else. Not so. No matter how big or small your system is, there are things you can do to improve sustainability. And if you only implement one change, that's still progress that you can see and measure. If you are part of a homeowners association, it could be finding that neighbor who cares enough to learn what you do, so there is someone to back you up when needed. For a small community supply, maybe it's developing relationships with customers and your town board, and educating them on what's needed to ensure the system is viable in 20 years. In all of these cases, being informed yourself helps a lot, and enlisting the help of local TA providers to support your efforts is key.
Ask For Support
There are a number of TA providers who can work with you to understand what it will take to start down this road. If you are a member of an operators association, start there. If not, talk to your state regulatory people about other TA providers that can assist you. Rural water associations, RCAP affiliates, AWWA affiliates, EFC's, TAC's, NESC, and others, are all interested in supporting your efforts to maintain and develop your water supplies. You can also contact us, and we will find someone local to help you.
There Are Some Good Materials Available
I searched our documents database, using the word "consolidation" in the keyword search and here are the most relevant ones that you should take a look at:
1. KRWA article that is a must read, with state examples 4 pages
Lastly, there is an interesting marketing report from 2003 that really does a great job of summarizing the issues raised about small supplies infrastructure needs, what the cost will be nationally over the next 20 years, and what the USEPA was discussing about sustainability of water supplies in 2003. One thing it points out is that 86% of small supplies are within 5 miles of another supply and that by itself suggests that small systems have an opportunity to develop agreements to share resources. At a minimum, this will help small supplies achieve the economies of scale that will support their being sustainable.
Steve Wilson posted on January 15, 2010 09:06
Over the last month or two, there has been a lot of national attention thrown at the USEPA over drinking water issues. On December 8, 2009, the same day as an article came out in the NY Times that caused a huge stir about how USEPA enforces the Safe Drinking Water Act, USEPA water staff were giving testimony to congress about drinking water and small systems. Today's post, and probably Monday's will talk about some of the information to come out of that hearing. (note: AWWA's streamlines online magazine provided the heads up about this information)
EPA Recognizes That Small Systems Need Support
EPA's Assistant Administrator for Water, Peter Silva, outlined a plan for a new approach to dealing with small systems issues as a small part of his 11-page testimony to congress that can be found here. He offered three components to an approach that will lead to better compliance and sustainability for small systems (starting about half way down page 6).
First, Provide More Federal Funds
Federal funds should target the small systems that need it most. He said that 72% of loans and 38% of funds have gone to systems serving less than 10,000 people, and they think that is low. Additional DWSRF funds are available in FY2010 and there is a new provision requiring that 30% of those funds subsidize systems that may not be able to afford a loan. In addition, EPA will work closely with USDA's Rural Utility Service to ask them to target grants and loans to supplies with high priority health issues.
Second, Strengthen State Capacity Development Programs
Every state is required to have a capacity development program and the USEPA believes that some states can be more effective in providing those resources to small supply operators. He says, "EPA will work cooperatively with states to examine, and modify their programs to improve compliance and capacity. This includes making sure that new water systems have what it takes to be sustainable before they start operating." Hopefully that means your state will have more free training available and more travel reimbursement dollars for operators.
Lastly, Recognize That Restructuring Is A Viable Option
"Restructuring" is a scary word. It can be many things, from cooperating with neighboring systems for expertise or equipment, to full ownership/management transfer, to consolidation. It's an alarming and possibly drastic alternative. Though nearly every small system would prefer to maintain their individuality and autonomy, there are some seriously underfunded and outdated supplies out there, and its clear that in some cases significant change will be necessary to keep the water flowing. (More on this later.....)
What This All Means
I think there is good news and bad news for small supplies. It sounds like there is more help on the way, especially for systems that are willing to work toward sustainability and take the steps necessary. But water supplies that have not followed the rules and who aren't taking steps to modify their business practices in order to achieve sustainability, will be made examples of, and not in a good way.
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