A P U B L I C AT I O N O F T H E T E N N E S S E E A S S O C I AT I O N O F U T I L I T Y D I S T R I C T S
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N E W B O A R D M E M B E R S | R E G I O N M E E T I N G N E W S | U P C O M I N G O P E R AT O R T R A I N I N G | C O N F E R E N C E R E G I S T R AT I O N
Tennessee Utility News BUSINESS ISSUE
18 C o l l e c t i o n o f S a l e s Ta x By Utilities 2 8 O p e r a t o r o f t h e Ye a r Aw a r d s 3 4 C r e a t i n g t h e To p Wo r k p l a c e Yo u r Te a m D e s e r v e s
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TENNESSEE UTILITY NEWS | www.taud.org
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TENNESSEE UTILITY NEWS | www.taud.org
Pat Riley | President Gibson County Utility District
OFFICE FAX WEB EMAIL
ADMINISTRATIVE
TAUD 2019-20 Officers & Board of Directors
Nick Newman | Vice-President Memphis Light, Gas & Water Michael K. Adams, Secretary Water Authority of Dickson County Carter Woodruff | Treasurer Consolidated Utility District
Phillip Combs | NRWA Director Alpha-Talbott Utility District Bruce Giles First Utility District of Knox County Drexel Heidel West Knox Utility District
TRAINING STATION
Charlie Anderson Bloomingdale Utility District
Allen Joslyn Big Creek Utility District Jay Mullin Eastside Utility District Tim Pelham West Warren-Viola Utility District Freddie Weston West Wilson Utility District Ernie Milteer | Associate Representative M&H/Kennedy Valve
VITAL FOR TENNESSEE’S FUTURE
CIRCUIT RIDERS
Michael Johnson County Wide UD of Crockett County
(615) 896-9022 (615) 898-8283 www.taud.org taud@taud.org
Bob Freudenthal | Executive Director BobFreudenthal@taud.org Penny Funk | Office Manager PennyFunk@taud.org Beth Hardiman | Event Planning & Member Services BethHardiman@taud.org (615) 900-1014 Vanessa Sol�s | Publications & Advertising VanessaSolis@taud.org (731) 352-8256 Carol Mims | Bookkeeper CarolMims@taud.org (615) 900-1013 Melanie Sain | Accounting Specialist MelanieSain@taud.org (615) 900-1015 Mark L. Butler | Finance MarkLButler@taud.org (615) 557-5780 Kirk Smith | Business Development KirkSmith@taud.org (615) 243-6490 Donald L. Scholes | General Counsel DonScholes@taud.org (615) 579-7569 Larry Lewis | Government Relations LarryLewis@taud.org (731) 234-0360
Brent Ogles | Education Manager BrentOgles@taud.org (615) 556-6002 Kevin Gilliam | Training Specialist KevinGilliam@taud.org (931) 636-1671 Allison Stephens Hite | Education Assistant AliStephens@taud.org (615) 900-1000
Tony Wyatt | West TN Field Supervisor TonyWyatt@taud.org (731) 415-9101 Johnny Walker | Middle TN Water Circuit Rider JohnnyWalker@taud.org (931) 261-5826 Michael Keeton | Energy Efficiency Technician MichaelKeeton@taud.org (865) 660-6454 Greg Baker | Groundwater Specialist/IT Specialist GregBaker@taud.org (731) 225-5240 Dewayne Culpepper | Wastewater Technician DewayneCulpepper@taud.org (931) 607-6981 J.W. Griffin | Source Water Protection Technician JustinGriffin@taud.org (731) 819-2679
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IN THIS ISSUE >>>
9 Event Calendar 10 Meet TAUD's New Board Members 12 Highlights: 2019 Annual Meeting 15 John Shadwick Retires After 30 Years of Service 16 We've Created An Easy Button! 18 Counsel's Corner: Collection of Sales Tax by Utilities 22 Consolidated Utility District & City of Murfreesboro Activate Contingency Water Supply 24 Highlights: 25th Operator Expo 26 Operator of the Year Awards 30 2019 Leak Repair Contest 32 Creating the Top Workplace That Your Team Deserves 36 Depreciation, Explained 40 Region Meeting News 48 Upcoming Classes: TAUD Training Station Schedule 51 Fall Cram Session Registration 52 Conference Registration: Utility Leadership 56 Conference Registration: Administrative Professionals 58 Game: Spot the Differences 59 Advertiser Index Can you find the frog hidden somewhere in the graphics or photos of this issue? Same size & color as shown here. Answer on page 58 Happy Hunting! Executive Editor | Penny Funk Managing Editor & Art Direction | Vanessa Solís Assistant Editor | Beth Hardiman Article Contributors | Beth Hardiman, Larry Lewis, Brett McArdle, Chloe Pool, Melanie Sain, Don Scholes, and John Simpson Image Credits Downtown Nashville ©SeanPavonePhoto; Water pouring in woman hand on nature background ©ipopba; easy button ©frender; Pure water drop ©unclepodger Tennessee Utility News is published quarterly by the Tennessee Association of Utility Districts. TAUD assumes no responsibility for opinions or statements of facts expressed by contributors. Advertisements and editorials do not represent official policies of the Association. The right to publish, edit or deny publishing and material submitted for publication is reserved by TAUD. To submit editorial or advertising content, or to update your mailing information, please contact Vanessa Solís at (731) 352-8256 or vanessasolis@taud.org.
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TENNESSEE UTILITY NEWS | www.taud.org
Expand your perspective on smart water. Smart water is more than measuring the flow from storage to consumption. It’s more than remote meter reads. It’s time to consider every part of the water cycle—from sourcing and delivery to consumption and reclamation. It’s time for a smart water cycle. The FlexNet® communication network is a smart utility network that takes your water utility beyond the basic meter read—and takes AMI beyond the competition. Collect, manage and analyze the right data at the right time on a reliable, dedicated two-way network.
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Read the online! A P U B L I C AT I O N O F T H E T E N N E S S E E A S S O C I AT I O N O F U T I L I T Y D I S T R I C T S
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R E G I O N M E E T I N G N E W S | C O N F E R E N C E H I G H L I G H T S | U P C O M I N G O P E R AT O R T R A I N I N G | A C T I V I T Y F E E C O N T R I B U T O R S
Tennessee Utility News L E G I S L AT I V E I S S U E
14 M u n i c i p a l U t i l i t y O f f i c i a l Tr a i n i n g R e q u i r e m e n t s
Family, Faith, & H2Okra
2 0 2 019 L e g i s l a t i v e S e s s i o n R e c a p
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TUN Latest Issue & Archives, Schedules & More Available at issuu.com
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TENNESSEE UTILITY NEWS | www.taud.org
EVENT CALENDAR >>> Conference & event details subject to change. For the most current information or to register, please visit www.taud.org or call (615) 896-9022.
NRWA WaterPro Conference
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Gaylord Opryland Hotel & Resort Nashville
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Administrative Professionals Conference
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Airport Embassy Suites Nashville Register by Nov. 22
13-15 DEC 5-6
Follow TAUD! @TAUDtweets 3rd Quarter | Volume 33
Tennessee Association of Utility Districts
@TAUDwater 9
Meet TAUD's New President & Board Members In June 2019, Pat Riley was elected as President of TAUD's Board of Directors during the Association's Annual Business Meeting. Working in the natural gas industry for 39 years, Pat began his career with Allen & Hoshall Consulting Engineers in Memphis. After graduating from the University of Memphis with a degree in Civil Engineering Technology, he began working for Gibson County Utility District. Pat has worked with GCUD for 32 years, serving as General Manager for the past 20. Pat served as the President of the Tennessee Gas Association (TGA) from 2004-2005 and currently holds a seat on the Board of Directors. He also serves on the Board of Directors for the American Public Gas Association, West Tennessee Gas Association, and the State Chamber Board's Environmental & Energy Subcommittee.
Pat Riley
President
In 2003, he received the TGA Silver Flame Award in recognition of his years of service and efforts in promoting natural gas & natural gas vehicles. Pat has led the Natural Gas Vehicle Committee for seven years, organizing three Natural Gas Expo's, as well as statewide and national natural gas vehicle road rallies.
Pat has been awarded TAUD's M.M. Bullard Award for Financial Operational Excellence twice - once in 2002 and again in 2010. In 2017, Governor Haslam appointed Pat to a second three-year term on the Utility Management Review Board (UMRB). Pat is also very active in his community, civic clubs, and festivals in Trenton over the past 32 years and was recognized as the "Person of the Year" in 2000 by the local Chamber of Commerce. He served as a Trenton City Alderman from 2003-2007. He has been a member of the Trenton Rotary Club for 30 years and received the Rotary Paul Harris Fellowship in 2017. Pat currently serves as a Board Member for his local Chamber of Commerce. Pat has been married to his wife Julie for 37 years. They live in a 118-year-old home that they fully restored. He is a member of the Northwest Tennessee Photography Club and has won many awards in contests across the state. Pat enjoys meeting new people and always strives to make a difference in everything he is involved in. 10
Offering multi-discipline engineering, land planning and recreation, and consulting services
mcgillassociates.com 865.540.0801 TENNESSEE UTILITY NEWS | www.taud.org
Representing TAUD’s distinguished Board of Directors are leaders from the state’s water, wastewater and natural gas utilities. These individuals are members of TAUD and are active in paving the way for the future of the industry. The Board’s leadership helps guide TAUD in its effort to promote and advance utility operations in the state of Tennessee. Thank you to the board for your commitment to the members of TAUD and for your dedication to provide safe drinking water for all Tennesseans.
Michael is a native of Obion County and a graduate of the University of Tennessee at Martin. Michael currently resides in Crockett County where he began his career at County Wide Utility District in 2008 and was promoted to General Manager in 2012. County Wide Utility currently has 7 water plants, 400 miles of main water lines and 3300 active customers. Michael has certifications in Water Treatment 2 and Distribution 2. He has been instrumental in rebuilding aging infrastructure to help his Utility District move Director to a more proactive approach to maintain the system. Michael is the Region 8 Leader for TAUD and also serves on the Crockett County Industrial Board. In his spare time, Michael enjoys spending time with his wife and two kids, Jett and Ivy Jane, coaching his sons basketball team, camping, and hunting.
Michael Johnson
2019-20 Board Officers: Pat Riley | President Gibson County Utility District Nick Newman | Vice-President Memphis Light Gas & Water Michael Adams | Secretary Water Authority of Dickson Co. Carter Woodruff | Treasurer Consolidated Utility District
3rd Quarter | Volume 33
Jay Mullin Director
Jay Mullin is the General Manager at Eastside Utility District. He received his B.S. degree in Civil Engineering from Tennessee Tech University in 1993, where he played baseball and rugby. Jay was hired at Cleveland Utilities in the Engineering Department, working on both water and sewer plans for 10 years. He was promoted to Operations Supervisor in the water division in 2004 before leaving in 2016 to manage Eastside. In his spare time, Jay enjoys hanging out with family and friends. He also enjoys weight lifting, an occasional outing of golf, fishing, or just about anything outdoors.
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2019 Annual Meeting Beth Hardiman | Event Planning & Member Services Tennessee Association of Utility Districts
The TAUD Annual Meeting was held Tuesday, June 4th at the TAUD Office and Training Station boasting its largest attendance of the decade with 125 attendees. It was standing room only for the Annual Business Meeting where attendees were updated on the state of the Association and had the opportunity to represent their utility as a voting delegate. Following the Business Meeting, attendees enjoyed a Member Appreciation luncheon catered on-site by Uncle Bud's Catfish, with assorted pies from O'Charley's for dessert. TAUD Diamond Superboosters sponsored the Member Appreciation luncheon. Those Superbooster sponsors are: American Development Corporation, Core & Main, Cumberland Insurance Agency, Kidwell & Company, Next Generation Underwriters, Rye Engineering, PLC, ServLine, Southeastern Tank, Inc., Tennessee Utility Assistance, Wascon, and Wiley Bros.-Aintree Capital. Four hours of continuing education was provided for Commissioners, Utility Municipal Officials and TAP participants. Afternoon sessions were presented from members of TAUD's Women in Water initiative. Sessions included: Service Applications & Cut-offs by Jennie Cagle of Niota Waterworks; Running A Financially Stable Utility by Kena Hyers of First Utility District of Knox County (pictured middle); Current Strategies for Short Term Investments by Carolyn Rambo of Pinnacle Financial Partners (pictured bottom); and Data Privacy by Janet Smith of Bailey Special Risks. TAUD would like to thank our speakers and sponsors for this event. The 2020 TAUD Annual Meeting will be held on Tuesday, June 9th.
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TENNESSEE UTILITY NEWS | www.taud.org
Different Purposes, One Goal It’s easy to tell if you’re using the right lure, that tug on the line is all you need to feel. A wellstocked tackle box is necessary for success on the water. When it comes to water treatment, you need the same options and flexibility from your chemical partner. American Development Corporation offers a full line of treatment options. We start with jar testing to find the right chemical for your treatment plant and finish with a mini-bulk system that eliminates drum and tote handling. And along the way, we offer 24/7 technical support and service. We can’t help you catch more fish, but we can help you maximize your treatment process.
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TENNESSEE
UTILITY PROFESSIONALS
of T O M O R R O W
Who We Are
The TAUD Tennessee Utility Professionals of Tomorrow is defined as any person between the ages of 25-45, or new to the water industry (within the last 10 years). Persons that best fit this group are those that are currently in a leadership position (or will be in the future) with a utility or outside agency. Members of TUPT work at water or wastewater plants, utility offices, engineering firms, regulatory agencies, manufacturers, educational institutions, sales firms, and more.
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UTILITY NEWS | www.taud.org For more information, contact: JW Griffin 731.819.2679 | TENNESSEE justingriffin@taud.org
John Shadwick Retires After 30 Years During the 2019 Operator Expo, TAUD celebrated John's 30 years of service to the association. John began his career with TAUD in February 1989. Over the years, John has been instrumental in growing TAUD's training program developing hands-on technical classes, manuals, and conferences. John graduated from Middle Tennessee State University with a Masters of Science in Biology and was the association's first Certified Instructional Technologist and Certified Environmental Trainer. He holds Grade 4 Water & Wastewater Treatment licenses, as well as a Grade 2 Distribution License. John was also named Training Specialist of the Year by the National Rural Water Association twice- first in 1996, then again in 2006. He retired in June of this year with 44 years of experience in the environmental and utility industry. John has left his footprint on TAUD's training program and has always been a friend and advocate for utility operators. John and his wife Carolyn have two children, Robin and Sharon, and four grandchildren Wyatt, Tucker, Keaton and Gary. He's an active member of Southeast Baptist Church where he serves as a Sunday school teacher. In his retirement, the association wishes John the very best to spend time with his family, browse bookstores, read, eat at Olive Garden, drink coffee from McDonald's and watch the show Dirty Jobs with his grandkids. Thank you for your service to our association and this industry. We appreciate you!
3rd Quarter | Volume 33
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We've Created An Easy Button! John Simpson, P.E. | Regional Engineer McWane Ductile
A Preliminary Engineering Report (PER) is typically required as part of the process to receive federal and/ or state funding and funding assistance. Many federal agencies, as well as some state agencies, utilize a standard PER outline or format for simplicity and consistency across the requiring agencies. Many utilities and engineering firms have requested assistance from McWane Ductile in the completion of PERs in order to support their design decision to utilize ductile iron pipe.
In response to these requests, we have developed a template providing potential rationale to engineering firms and utilities in addressing alternative pipeline materials. This template can be utilized in most federal projects requiring a PER, particularly those that are USDA-funded. The template follows the format set forth in USDA’s Bulletin 1780-2, highlighting in each respective section the applicable positive attributes of ductile iron pipe, established through sound engineering judgment. Although formatted for specific use regarding USDA funding applications this template outlines the benefits of using ductile iron pipe and provides the applicant sufficient engineering data to support the use of ductile iron pipe for any public funding mechanism. The benefits of using ductile iron pipe, as set forth in the template, are:
Water & Energy Efficiency
The larger hydraulic diameter of ductile iron pipe, as compared to smaller inside diameters of many other competing materials, provides for less head loss in the water system. This can easily be translated into energy cost savings to the utility, which is often in the millions of dollars over the life of the pipeline(s).
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TENNESSEE UTILITY NEWS | www.taud.org
Sustainability Considerations
Both the American Water Works Association (AWWA), through its research report “Buried No Longer”, and a recently released research study by the University of Michigan, have shown that the estimated service life of ductile iron pipe is significantly longer than that of other materials. The University of Michigan research compares the life cycle costs and the environmental impacts of pipeline materials, again showing the superiority of ductile iron pipe. These two research documents accompany the template.
Operation and Maintenance Cost Advantages
In addition to the energy cost advantage of using ductile iron pipe, the template outlines multiple other cost advantages, such as operational and maintenance costs, as derived from the actual experiences of utilities. Future operational concerns are also highlighted, such as the resistance that ductile iron pipe provides to hydrocarbon and other chemical permeation, as compared to that of other materials.
Installation Costs
Due to the superior strength of ductile iron pipe, the required E factor for trench support is much less for ductile iron than for many other materials. Using ductile iron pipe can often result in a substantial cost savings during construction, as a result of avoiding hauling backfill material into the site and hauling spoil material away from the trench excavation. Similar cost considerations, such as required use of tapping saddles for some materials and other real costs associated with installation, are outlined in the template and an addendum document entitled “The Total Cost Equation.” Our engineering team would be glad, not only to provide this template to you, but also to arrange an appointment during which we could personally go through this information with you in detail. We are also available to assist in project-specific preparation of the Preliminary Engineering Report using this template. Please contact john.simpson@mcwaneductile.com for more information.
3rd Quarter | Volume 33
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Counsel's Corner
Collection of Sales Tax by Utilities
Don Scholes | General Counsel Tennessee Association of Utility Districts
In both the 2018 and 2019 legislative sessions, the Tennessee General Assembly passed legislation which affected the obligation of water and natural gas utility providers to collect sales taxes on water sales and natural gas sales to their customers. The purpose of this article is to outline the obligations of water and natural gas utility providers to collect sales taxes from their customers on utility sales and to describe the exemptions from the collection of sales taxes under Tennessee law.
Tennessee Sales Tax Obligations
Tennessee law imposes a sales tax on all retail sales of tangible personal property by any business, organization, or person. For the purposes of this article, I will refer to the sales of tangible personal property as the sale of products or goods. Tennessee law imposes a sales tax on the sale of certain services, amusements, and digital products which the legislature has determined should be taxable. Sales of water, natural gas and electricity by a public utility are considered sales of products or goods. Therefore, sales tax must be collected on the sales of water, natural gas and electricity by a public utility unless the legislature has specifically exempted such sales from the payment of the sales tax.
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While the customer pays the sales tax on the selling price of the product or service sold, Tennessee law places the obligation to collect the sales tax on the seller which provides the taxable product or service. The seller charges the sale tax to the customer at the time of the sale; then the seller remits the sales tax collected to Tennessee Department of Revenue (the Department) with the filing of its sales tax returns. If the seller of a taxable product or service fails to charge the appropriate sales tax to its customer, this failure to do so does not relieve the seller of its responsibility to timely remit the sales tax owed to the Department. In other words, the seller pays the applicable sales tax regardless of whether the seller actually collects the sales tax from the customer when the sale occurs. A customer must pay, and a seller must collect, sales tax on the sale of all retail products or taxable services sold unless the legislature has exempted the sale from the sales tax. These exemptions are established in two ways: (1) the legislature exempts the retail sale of a product or exempts an otherwise taxable service from the sales tax; or (2) the legislature exempts a particular person or entity or a particular transaction from paying sales tax on an otherwise taxable sale. TENNESSEE UTILITY NEWS | www.taud.org
Exemptions on Water & Natural Gas Utility Retail Sales
Water sales by a utility are subject to the sales tax. For many years sales of natural gas and electricity to customers for residential use have been exempt from the sales tax pursuant T.C.A. § 67-6-334(a). Sales of natural gas and electricity to commercial customers are subject to the sales tax. Sewer service is considered the sale of a “service” and not the sale of a “product.” The sale of a service is not taxable unless the legislature has made the specific service subject to the sales tax. Because the legislature has never made sewer service a taxable service, sewer service sales are not subject to the sales tax. In the summer of 2017, the Sales Tax Division of the Tennessee Department of Revenue conducted a sales tax audit of a city in Middle Tennessee which provided water, sewer and natural gas services. In this audit the Department found that the city should have been collecting sales tax on connection fees paid by new customers for water service and by new commercial customers for natural gas service. The Department further found that the city should have been collecting sales tax on reconnection fees paid by water customers and natural gas commercial customers to reinstate service after service had been terminated for nonpayment. Historically, water and natural gas utilities had been collecting sales tax only on monthly water and natural gas sales and not on any other fees paid by a customer to initiate service or to continue to receive service. The Department’s position in this audit was that any fees or charges paid by a customer to initiate or to continue to receive water or natural gas service was part of the “sale” of the utility product; therefore, sales tax must be collected on such fees and charges. The Department’s audit findings were contrary to the established practice of water, natural gas and electric utilities in Tennessee. Therefore, several associations representing water, natural gas and electric utilities, including TAUD, were instrumental in getting legislation passed in 2018 to clarify the application of the Tennessee
3rd Quarter | Volume 33
sales tax to water sales and to non-residential natural gas, propane and electricity sales, Public Chapter 813 of the 2018 Tennessee Public Acts. As a result of the passage of this legislation, the Tennessee sales tax “only applies to charges on a customer's monthly water bill for metered water usage, a monthly minimum bill, a monthly customer charge, or a monthly demand charge.” T.C.A. § 67-6-315. The sales tax “on sales of natural gas, propane, and electricity sold directly to the consumer for nonresidential use applies only to charges on a consumer's monthly bill for metered usage, a monthly minimum bill, a monthly customer charge, or a monthly demand charge.” T.C.A. § 67-6-334(c). Therefore, this legislation incorporated into law the historic practice of utilities only charging sales tax on water sales and on non-residential natural gas and electric sales which are included on a customer’s monthly utility bill. The legislature has also exempted from the sales tax any money paid or property or services contributed to a public utility by any person who is required as a condition for utility service to make such payment as a contribution in aid of construction. T.C.A. § 67-6-332. Therefore, utility system improvements paid for or contributed by a developer to get water or natural gas service to a new development are not subject to the payment and collection of sales taxes.
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Exemptions for Water & Natural Gas Sales Particular Customers or for Particular Transactions
Even when the sale of water or natural gas is subject to the sales tax, the legislature may exempt sales to a particular customer or sales of particular transactions to a customer from the tax. These exemptions generally require the exempt customer to provide the selling utility with a certificate of exemption issued by the Department. The tax-exempt customer must provide the utility with a copy of the certificate of exemption issued by the Department in order for the utility not to charge and collect the sales tax on water or natural gas sales to such customer. Even if a customer qualifies for a tax-exempt sale, the utility must charge and collect the sales tax on utility sales to such a customer until the customer actually provides the utility with a valid certificate of exemption. The selling utility making a sale to a tax-exempt customer must maintain a copy of the exemption certificate in the utility’s files for audit purposes. If the Department performs a sales tax audit of the utility, the Department will assess a tax deficiency against the utility for any sales to a sales tax-exempt customer for which the utility does not have a valid certificate of exemption on file. Current Sales Tax Exemptions for Particular Customers or Particular Transactions Below is a list of water sales and of natural gas sales to non-residential customers which are exempt from the Tennessee sales tax as of the writing of this article. • Sales to churches, schools and other nonprofit organizations pursuant to T.C.A. § 67-6322. Section 67-6-322 lists some twenty types of religious, charitable, educational or social organizations which are exempt from paying the sales tax on their purchases. • Sales to the United States and agencies of the United States pursuant to T.C.A. § 67-6-308. • Sales to the State of Tennessee, counties and municipalities pursuant to T.C.A. § 67-6-329(a)(4). • Sales of liquified gas and compressed natural gas subject to the State’s alternative fuels tax pursuant to T.C.A. § 67-6-329(a)(5). • Sales to utility districts, electric cooperatives and telephone cooperatives pursuant to T.C.A. §§ 7-82-105, 65-25-122, and 67-6-325. • Sales of natural gas to farmers or nursery operators “used directly” by the customer in the production of food for human or animal consumption or to aid the growth of horticultural products pursuant to T.C.A. § 67-6-207(a)(18). • Sales of water or energy fuels to manufacturers which are separately metered and are exclusively used directly in the manufacturing process by coming into direct contact with the article being fabricated or processed and which are expended in the course of the contact pursuant to T.C.A. § 67-6-206(b)(3). • Sales of natural gas to manufacturers used to generate heat for the production of primary aluminum, aluminum sheet and foil, and aluminum can sheet products pursuant to T.C.A. § 67-6206(b)(4). Current Reduced Sales Tax Rates for Particular Customers or Particular Transactions • Sales of water to manufacturers whose principal business is fabricating or processing tangible personal property for resale pay a reduced state sales tax rate of 1% and a reduced local sales tax rate between 0.33% to 0.5% pursuant to T.C.A. §§ 67-6-206(b)(1) and 67-6-702(b). • Sales of natural gas, electricity, fuel oil, coal and other energy fuels to manufacturers whose principal business is fabricating or processing tangible personal property for resale pay a reduced state sales tax rate of 1.5% and no local sales tax pursuant to T.C.A. §§ 67-6-206(b)(1) and 67-6-704.
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New Sales Tax Exemptions Passed in 2019 • Effective July 1, 2019, water sales to farmers and nursery operators used directly in the production of food or fiber for human or animal consumption or to aid in the growing of a horticultural product for sale will be exempt from the sales tax. Public Chapter 427 of the 2019 Tennessee Public Acts added water sales as an additional utility sale subject to the agricultural exemption. Water purchased by a farmer or nursery operator for any other use remains subject to the sales tax. For example, water purchased by a farmer or nursery operator for domestic household use is still subject to sales tax, and the water utility must continue to collect sales tax on such water sales. As a practical matter, the only way a water utility can know that water sales to a farmer or nursery operator are exempt is to ensure that such water sales are made by a separate connection to the water utility’s main and separately metered. Otherwise, the water utility has no way of knowing whether water sold is used for purposes other than the “production of food or fiber for human or animal consumption or to aid in the growing of a horticultural product for sale.” • Effective July 1, 2021, sales of water and energy fuels to manufacturers whose principal business is fabricating or processing tangible personal property for resale will not be subject to the sales tax at all. Public Chapter 427 of the 2019 Tennessee Public Acts. As described above, these manufacturers currently pay a reduced sales tax rate for water and energy fuel purchases. Some of these exemptions for water and natural gas sales to particular customers or for particular transactions are very specific and appear to be difficult to implement. Fortunately, the water or natural gas utility does not have to decide whether these sales are exempt from the sales tax. To obtain the sales tax exemption, the utility customer must make an application for a certificate of exemption to the Department. The Department, not the utility, determines whether the utility customer meets the conditions for the tax-exempt purchase of water or natural gas service. Upon getting a copy of a valid exemption certificate provided by the Department from a customer, the utility simply relies upon the exemption certificate and does not charge and collect sales tax to sales covered by the exemption certificate. Sales tax on utility sales seems to have been a hot topic over the last couple of years. Hopefully, sales tax exemptions for utility services will get rest, but you never know.
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CUD & City of Murfreesboro Activate Contingency Water Supply Brett McArdle | Communications Officer Consolidated Utility District
A new water service interconnection between Consolidated Utility District (CUD) and Murfreesboro Water Resources Department will keep water flowing to CUD customers even in the event of an emergency, such as a major mechanical breakdown or natural disaster, such as a tornado or other severe weather.
“This is the third sizable interconnection between CUD, Murfreesboro, and Smyrna that allows us to help each other in a time of crisis,” said CUD General Manager William Dunnill. “Reliable service is the goal of all three entities, and this project accomplishes that objective. “
Based on current demand, the new interconnection can serve all CUD customers with enough water for an average day’s consumption or up to 65 percent of a maximum day’s usage.
The interconnection is located at the intersection of Sam Jared Drive and Compton Road, near the Veterans Administration Alvin C. York Medical Center. The city’s water treatment plant is located on Sam Jared Drive, a short distance from the new interconnection.
“This is a valuable tool for maintaining reliable water service to our customers,” said CUD Director of Engineering Alan Stuemke. “The county is growing rapidly, and this interconnection ensures we will have enough water to answer that need.” Construction at the K. Thomas Hutchinson Water Treatment Plant has required some temporary shutdowns during which this new interconnection has been used. It is one more contingency for dealing with any kind of equipment malfunction which impacts CUD customers. This interconnection will provide sufficient water to compensate for any temporary disruption or reduction in CUD water treatment capacity.
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A trial run of the interconnection was conducted on November 18 of last year, and CUD and the city are making final adjustments to operations software. When online communications are complete, full remote control management will be available. This will provide an easy way for the city to monitor usage. CUD and the city are also configuring the system to send identical messaging so the utilities’ control rooms receive the same, real-time data. Planning for this interconnection began in May 2016. The property on which the interconnection rests is owned by Middle Tennessee State University and required approval from the university’s Board of Trustees.
TENNESSEE UTILITY NEWS | www.taud.org
Tennessee Utilities Political Action Committee What is TUPAC?
Tennessee Utilities Political Action Committee (TUPAC) is a multi-candidate political action committee organized to raise funds and make contributions to candidates running for public office. Funds donated to TUPAC serve as contributions to the campaign funds of candidates who support the legislative initiatives and agendas of Tennessee's water, sewer, and natural gas utilities.
How are contributions used?
TUPAC makes campaign contributions to persons who are candidates for seats in the House of Representatives and Senate of the Tennessee General Assembly who have been or will be supportive of TAUD positions on legislation of interest to TAUD members. Among other considerations, TUPAC makes contributions to legislators who serve on committees which handle legislation of importance to TAUD and makes contributions based upon the recommendations of TAUD lobbyists. While TUPAC can make a contribution to any candidate running for an elected position in Tennessee, TUPAC usually limits its contributions to candidates for state legislative offices. Contributions are used to cover any expenses incurred in TUPAC’s fundraising activities.
Why should I contribute to TUPAC?
Almost every year TAUD introduces one or more bills to further the interests of TAUD members. Over 3,000 bills are introduced during each two-year legislative session. Several of these bills can affect utilities, their board members, and employees. TAUD closely follows each bill of interest and works side-by-side with legislators to get bills passed, amended or withdrawn. TAUD’s efforts are greatly enhanced with the support of key legislators to whom it provides financial support. Through the funding provided by TUPAC and the efforts of TAUD members, the General Assembly sees TAUD as an important stakeholder in any proposed legislation affecting Tennessee's utilities.
Who is eligible to make contributions?
All utility board members, managers, and employees are eligible to make contributions to TUPAC from personal funds. No utility funds from governmental utilities can be used to make contributions. Associate members who are corporations or limited liability companies may make contributions to TUPAC with company funds. TUPAC is required by law to periodically report contributions received to the Registry of Election Finance. TUPAC must disclose certain information about contributors donating more than $100 during a reporting period. For the purpose of reporting, all contributions made during a reporting period are cumulative.
When and how can I contribute to TUPAC?
Contributions can be made at anytime, but TUPAC encourages contributions be made in the early fall to give it sufficient funds to make contributions to candidates before the beginning of the legislative session each January. TUPAC raises funds each August during the TAUD Business of Running a Utility Conference by sponsoring the TUPAC Golf Tournament, Trap Shoot and Silent Action. The net proceeds from these events benefit TUPAC. A utility may encourage its employees to make contributions to TUPAC by deducting small contributions from each paycheck which the utility will forward to TUPAC.
For more information, call (615) 896-9022 or visit www.taud.org/legislative/tupac.htm.
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25 Expo th
operator
Beth Hardiman | Event Planning & Member Services Tennessee Association of Utility Districts
On Thursday, May 16th nearly 1,300 people attended the 25th anniversary of the TAUD Operator Expo at the James E. Ward Ag Center in Lebanon. To commemorate the event each attendee received a challenge coin specially designed for the Operator Expo milestone. TAUD's Operator Expo is the oldest rural water expo in the country. TAUD's annual Expo T-shirt, given to each attendee, was designed by David Amburgey of Metro Water Services (pictured at right). The t-shirt design theme - "Water Is Life" - was very popular with attendees. Blue Moon Barbecue was back again this year to cater, providing breakfast sandwich biscuits and pulled pork, smoked sausage, chicken, and all the trimmings for lunch. Continued on page 29 >>>
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Photos by: Pat Riley, Vanessa Solis, & Ali Hite.
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After lunch the annual Leak Repair Contest, sponsored by G & C Supply Co., was held in front of their booth at the Pavilion. The winning team, Drew Elliot and Nelson Harrington with the Town of Centerville, rocked the challenge this year with a record time of 30.68 seconds. Congratulations to our new record holders! Later in the afternoon, attendees gathered in the expo center for the TUEC Raffle drawings. Nick Newman of Memphis Light Gas and Water won a $500 Bass Pro gift card and Michael Widman of Gladeville Utility District won a Jackson kayak (pictured opposite page; center). Crystal Dingley with South Giles Utility District (pictured top right) won the grand prize of $5,000. Thank you to all who participated in our TUEC Raffle helping to fund scholarships in each grand division of our state. A special thank you goes to the Mid South Elite Tappers of Consolidated Utility District. These operators travel to participate in timed competitions during which they open a cement-lined, ductile iron pipe and install a tap. The team (pictured at right) is comprised of Control Room Technician Ben Nipper, Maintenance Technician Kenny Chumley, Assistant Maintenance Manager & Team Coach Brian Worley, and Inspector Nathan Jones, and provided demonstrations throughout the day. Each year, TAUD recognizes a Water and Wastewater Operator of the Year during the Expo. The 2019 Water Operator of the Year was awarded to Bryan Chris Ramsey with Jamestown Gas & Water. Wastewater Operator of the Year was awarded to Jane Leatherland of Humboldt Utilities. Congratulations to you both! The Association also recognized John Shadwick who retired after 30 years of service. John was presented with plaques for his years of service and retirement as well as a "Retirement Survival Kit", containing some of John's favorite things. We appreciate everything John did for the operators in this state and for our Association and wish him the very best in this new chapter of life. (see page 15) Mark your calendars! The 2020 Operator Expo will be held at the James E. Ward Ag Center on Thursday, May 21st. We look forward to seeing you there! See next page for Operator of the Year Awards. Leak Repair Contest photos can be found on page 30.
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Operator of the Year Awards Presented by: Pat Riley | President Tennessee Association of Utility Districts
Water Treatment Operator Of the Year
Bryan Chris Ramsey, Jamestown Gas & Water | Chris has been in the utility industry for 26 years and with Jamestown for the last 10 years. He holds a Grade 4 Water Treatment license and serves as Chief Operator for the city. Under Chris's leadership the City has scored 100 on their sanitary survey two years in a row. Jamestown has also won the Region 4 Best Tasting Water Contest three out of the last five years and was the statewide winner in 2018, representing TAUD in Washington DC. Chris is described as "a true asset. He's incredibly dedicated and always 'on call'. He's saved the city countless hours and money by fixing things himself instead of calling out for repair." Chris and his wife Janie have three children Megan, Levi and Tanner. He's a member of the Mt. Helen Baptist Church as well as a Mt. Helen Volunteer firefighter. In his spare time Chris enjoys spending time with his family, farming and fishing.
Wastewater Treatment Operator Of the Year
Jane Leatherland, Humboldt Utilities | Jane has been in the utility industry for 32 years and with Humboldt for almost nine years. She holds Wastewater 4 and Water Treatment 2 licenses. Jane manages both the city's water and wastewater plants, as well as pretreatment program that is growing with industry including the Tyson chicken plant. She is responsible for bringing Humboldt Utilities back into compliance and maintains a level of excellence that includes overseeing new upgrades for both plants. Jane was the 2018 recipient of the Water Environment Federation Hatfield Award for Outstanding Performance in Wastewater Operations. She's a strong supporter of TAUD attending and often presents at TAUD conferences, classes, and region meetings. Jane and her husband Steven have two adult children and grandchildren. In her spare time she enjoys cheering on the Tottenham Hotspurs soccer team and spending time volunteering with and fundraising for her local animal shelter.
For more information about TAUD's Awards of Excellence, please call (615) 896-9022 or e-mail taud@taud.org. 28
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LEAK repair
contest Sponsored by: G & C Supply Co.
Randy Johnson & Chad Dotson Town of Centerville
Drew Elliott & Nelson Harrington Town of Centerville
Chris Simmons & Lawrence Carr Tullahoma Utilities Authority
Micah Binkley & Clint Dorris City of LaVergne
Check out our Facebook page for videos from the 2019 Leak Repair Contest!
Pictured: Shannon Butler of G & C Supply Co. presents contest winners Drew Elliot & Nelson Harrington with a plaque and $100 cash prize. Drew & Nelson repaired the leak with a record time of 30.68 seconds!
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Tim Jones & Nathan Jones Consolidated Utility District
Ben Nipper & Austin Parker Consolidated Utility District
Chase McCrory & Zach Yearwood Portland Utilities
Dustin Young & Jacob Bronson Consolidated Utility District
Roger Jenkins & Cody Jenkins Michie Water System
Providing Products for Our Greatest Resource:
WATER
For more information on these and other products, call: NATURAL GAS, WATER & WASTE WATER PRODUCTS Atwood, TN: 1-800-238-3836 Dandridge, TN: 1-800-325-2305 SIGNS & SAFETY PRODUCTS
1-800-223-8594
Striving to Serve Since 1974
www.gcsupplyco.com 3rd Quarter | Volume 33
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Creating the Top Workplace Your Team Deserves Chloe Pool | Communications Manager First Utility District of Knox County
The 2019 Top Workplace award is a chapter in our story, but it is nowhere near the first chapter. We want to be clear about that right from the start.
The #1 factor reported was a tie between 1) emphasis on team and 2) change in leadership mentality
Did you know that in 2011, on a scale from 1 to 10, our employees rated our organization’s morale at a 5? That same survey revealed that 34% of First Utility District employees did not feel appreciated by the organization. Respondents also reported that First Utility District needed significant improvement in communication, company-wide respect, quality of equipment, consistency in procedures, accountability, and employee recognition.
“No one in our organization is more important, we just have different jobs.”-Bruce Giles, General Manager
They were right. We may be a Top Workplace now, but we weren’t then. You may be wondering why anyone would admit disfunction in their organization’s history, especially in an article about being named a Top Workplace. While it would be easier to brush over the less glamorous chapters of our organization’s history, we want to tell the truth, not only because truthfulness is a company value, but also in the hopes that others can benefit from our journey. We truly believe any organization can do what we did, so long as they are committed to the process.
Getting from there to here
This story could not be told without the help of 5 veteran employees who have been with our organization through our process of growth. Each of these dedicated employees have served our organization for at least ten years, some over 30. We asked them to recount what they believe to be the leading factors in First Utility District’s transformation into a Top Workplace.
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#1: LEADERSHIP MENTALITY
Across the board, our veteran team began their interviews by talking about leadership. This factor came up time and time again, but before continuing, we need to make one crucial clarification: at First Utility District, we believe that our organization has been and will continue to be built by the efforts of every single member of our team. Yet, despite that deeply embedded philosophy, our veteran employees kept returning to the theme of leadership. Why? Our interviews revealed that while leadership is just one small piece of an organization, leadership can empower or hinder the efforts of their team in creating a positive culture. In other words, they don’t create the culture, but they can stand in the way of it developing, no matter how talented and capable their team might be. Our veteran members said that our positive culture began with leaders that had the mindset of “servant leadership.” Servant leadership expresses the reality that leadership is never given to a person to benefit them personally but instead should be used to empower and serve the team. Our team also reported that they feel tremendous confidence that Bruce Giles, Ronnie Davis, and other leaders in our organization were the right people with the right strengths to move our organization forward. Leadership created the right environment for our culture’s growth… And over time, things began to bloom.
TENNESSEE UTILITY NEWS | www.taud.org
Pictured (l-r): FUD Knox employees Jeremy Bailey, Mark McKinney, Sheila Brumley, Kena Hyers, Brad Brummett, Ronnie Davis, Leea Butler, Chloe Pool, and Bruce Giles.
Creating a Team Culture
“Our employees are our number one asset. If it weren’t for every member of our team doing their work, I wouldn’t have a desk to sit behind.”-Ronnie Davis, Assistant General Manager According to our veteran team members, leaders empower teams… and teams run organizations. Over time, we learned how to build a high functioning, healthy team. Respondence shared that a precedent was set that each member of our team would align with a team centered mentality (after being given time to adjust to the new expectation). Due to this, we fostered a companywide expectation that no employee would be allowed to undermine the team’s efforts, and that the team would be the center of our organization’s focus, rather than management. We would work hard to make that loud and clear to every member of our team.
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#2: TRUST
In 2011, we began an annual survey that allowed our team to tell the truth about our organization completely anonymously (we mentioned previously several negative comments; those came from our 2011 survey). We wanted to rebuild trust, and that meant learning the unfiltered truth about our current organizational health. However, knowing the truth wasn’t enough; to truly rebuild trust, we had to ensure that each issue our team members raised was addressed (provided the issue was credible). Over time, we responded to every concern, and by our 2017 survey we didn’t have a single employee report feeling unappreciated by our organization. Our reported employee morale rose from an average score of 5 to 8.5, and while that score isn’t perfect, it demonstrated that we all took our responsibility to address problems seriously.
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Interviews revealed that, over the following years, personnel greatly improved, people were put in positions that highlighted their strengths, office politics were not tolerated, annual performance reviews rewarded individuals for their work, and everyone was held accountable. Our interviewees said that, not only did they trust their teammates, they also began to feel trusted and empowered by management. One of our veteran team members shared that the single biggest difference he experienced as our culture improved was being able to do his job “without someone standing over [him].” One manager stated: “I know with certainty that we have good people… And each of them needs to feel with certainty he or she is the key person in his or her part of the organization.”
#3: INVESTING IN THE TEAM
Another top theme from interviews was investment in our team. Respondents said that financial investments in particular spoke volumes to them, from smaller investments such as outfitting every employee with a quality rain jacket to larger investments like better quality equipment and work vehicles. They also noted that First Utility District greatly improved in showing appreciation: managers began regularly showing their gratitude for each employee’s contribution, luncheons and events were hosted to thank employees, and departments were given a platform to share accomplishments at staff meetings and commissioner meetings. Our veteran members also mentioned the following investments: we approved more employees than ever for degree programs; we invested substantially more in our safety programs than years prior; we sent employees to conferences and networking events; and we created flexible schedules suited to each employees scheduling needs, so much so that First Utility District ranked highest in “Work/ Life Flexibility” for the 2019 Top Workplace survey of companies in Knoxville. Each investment spoke a message: “You matter, we care about the quality of your work life, and we care about your investment in our organization.”
#4: CREATING A MEANINGFUL CULTURE
Running an efficient and effective organization has incredible meaning on its own, but we wanted to drive our organization to the next level by creating an even deeper sense of meaning together. We began to look for ways our organization could influence our community and over time found incredible opportunities to do just that: we raised funds for causes we believed in, involved our team in local schools, sent employees to impoverished areas to offer their professional skills, encouraged employees to become more involved in our industry at large, and other efforts. We wanted to drive home the point to one another: if we are blessed, if we are skilled, if we have time to give… then we have something to offer our world. We also worked to improve First Utility District’s image in our district, which we hoped would increase our team’s personal pride in their workplace. We sought to accomplish this through outreach (social media, community involvement), training our employees to provide excellent customer service, ensuring employees have everything needed to do their best work, and communicating openly and
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effectively with the public. One employee stated, “now, employees feel tremendous pride in where they work and their positions.”
Doing the Right Thing Created a 2019 Top Workplace
Our team has asked countless difficult questions over these years of investing in our culture, and we will continue to ask the hard questions about how our organization can improve even further. In those early years, we had to decide once and for all to tell the truth, even when the truth was negative and discouraging. That truth began the process of change, and that truth showed us that becoming a high-quality organization is simple... but it’s rarely easy. No matter how lost an organization may appear, if anyone is brave enough to ask, “what is the right thing to do here?”, he or she will find the answer. “Do the right thing” became a guide for us and eventually became our corporate motto; it led us to become an organization in which we take tremendous pride… We would not trade that journey for anything.
These were the most repeated words used in our March 2019 survey, in order of frequency: family, positive, encouraging, efficient, ethical, giving, knowledgeable, pride and communication. Respondents used the following statements to describe the workplace we worked to hard to build: “I feel like I have a purpose and that I am valued and am not just a number. I am empowered and trusted to do my job”. “[I] want to be the best I can be.” “You get to do meaningful work with great people.” “You can build a future on working here.” “The company cares about its employees.” “The culture changed, and people are respected.” “My co-workers are like family and they go out of their way to let me know my work is appreciated.” One employee said that the difference between 2011 and now is this: every single person has skin in the game. We created a culture of respecting one another, of pushing each other to new heights, of trusting our team, of working hard for every single First Utility District employee… and, in the end, that created something special.
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c a ll ( 80 0) 95 2 -4 2 36 o r vis it www.wa sc oninc .co m 3rd Quarter | Volume 33
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Depreciation, Explained
Melanie Sain | Accounting Specialist Tennessee Association of Utility Districts
When depreciation is mentioned, the room goes silent and glazed expressions follow. Because depreciation is an accounting term, it is often misunderstood or completely avoided. This article will help you understand the concept of depreciation and the importance of planning for it. To grasp the concept of depreciation, some important key terms must be explained- fixed assets, a capitalization policy, a threshold, useful life and book value. Let’s get started!
What are fixed assets?
Fixed assets (also referred to as capital assets) are defined as assets which are purchased for long-term use and which are not likely to be converted quickly into cash. Fixed assets can include water treatment plants, sewer treatment plants, pump stations, utility lines, equipment, buildings, trucks, computers and office furniture. Generally, fixed assets cost more than non-fixed assets and are expected to last more than two years, but not indefinitely. Accounting for the cost of fixed assets differs from regular operating expenses. Because utilities are capital intensive businesses, the proper accounting of fixed assets by a utility is a vital component in developing a financial plan to generate sufficient revenue to provide safe and adequate service to its customers.
What is a capitalization policy?
A capitalization policy is a policy adopted by a system that describes how to treat purchases of fixed assets and the depreciation of those fixed assets. It establishes consistent guidelines in a written policy. It can include: capitalization requirements, thresholds, useful life, replacement, repairs, and contributed assets. Every system should adopt a capitalization policy. If your utility is without a policy, you should seek to adopt one as soon as possible. If you are a city or county utility system, please check with the city or county to determine if there is a city-wide or county-wide policy that is being used. If you don’t have one, TAUD has a sample policy that can be adapted to your system. The person in your office responsible for recording transactions and writing checks should be aware of this policy and the threshold amount, so items are properly classified. Also, your independent auditor should be notified of this as well as there is a footnote in the audit that details this information.
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What is a threshold?
The capitalization policy sets a threshold, an amount above which qualify expenditures as fixed assets, and below which are charged to expenses. This threshold is set by management and/or the Board. There is no right or wrong amount to use for a threshold. Smaller systems may want to use $2,500, while larger systems may want to use $5,000 or even $10,000. The Government Finance Officers Association recommends using at a minimum, $5,000. However, this could be too large for some small systems that don’t want to incur large expenditures that could create a loss on the financial statements. Utility systems should tailor these thresholds based on individual needs. It is important to discuss with management and the Board.
FIGURE 1: Useful Life Class of Assets Water Lines & Storage Wastewater System Office/Plant Buildings Well/Dam Pumps & Treatment Equipment Equipment & Tools Machinery & Construction Equipment/Vehicles Transportation Equipment Furniture & Fixtures Information Systems
Years 40-50 40-50 30-50 Engineer's Estimate
15-20 10-15 5-15 5-10 5-10 3-6
What is a useful life?
A useful life is an estimated lifespan of a fixed asset, during which it can be expected to contribute to operations. In other words, how long the fixed asset will last. The State of Tennessee recommends the guidelines listed in Figure 1 for useful lives
What is book value?
All fixed assets will have a book value. Book value is the cost minus the accumulated depreciation. This is the value according to the system’s records as reflected in the financial statements. This will change from year to year as accumulated depreciation increases. Please keep in mind that book value is NOT the fair market value of an asset. The fair market value of the fixed asset might be more or less than the book value.
Ok, now let’s talk depreciation….
Since fixed assets have a useful life of multiple years, their cost is capitalized (written off) over multiple years. This is recorded in the accounting records via a process called depreciation. Depreciation is a method by which a fixed asset's cost is divided out over the duration of its useful life using one of several generally accepted depreciation formulas. The
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most common method of depreciating fixed assets for financial statement purposes is the straight-line method. Under this depreciation method, the depreciation for each full year is the same amount. When you buy a fixed asset, you pay for it immediately. But you don’t count the cost as an expense all at once. Instead, you record a portion of the cost each year over the useful life of asset. During each accounting period (year, quarter, month, etc.) a portion of the cost of these fixed assets is being used up. The portion being used up is reported as depreciation expense on the statement of activities (also called the statement of income and expenses). In effect depreciation is the transfer of a portion of the fixed asset's cost from the statement of financial position (balance sheet) to the statement of activities during each year of the fixed asset's life. In a way, the concept of depreciation makes sense. Since a fixed asset is expensive and lasts for multiple years, its cost should be expensed over multiple years. Contrast that with the typical expense that is written off at the time of acquisition and used within a short period of time; e.g. pens, paper, and materials. Depreciation is one of the few expenses for which there is no associated outgoing cash flow. The reason is that 39
cash was initially expended during the acquisition of the fixed asset; there is no further need to expend cash as part of the depreciation process. Thus, depreciation is a non-cash component of operating expenses. Another way of looking at the situation is to assume that all fixed assets must eventually be replaced, in which case the amount of depreciation expense each year could be considered the amount of replacement costs. The accounting is the same and the entries to expense are the same. However, the amount of depreciation expense is transferred from regular cash account to a reserved cash account each year. This will reserve cash for capital assets that wear out and need to be replaced in subsequent years. Although this is not required, it is a great way to reserve needed cash for replacement of capital assets for later years.
The calculation and reporting of depreciation are based upon two accounting principles:
Cost principle
This principle requires that the depreciation expense reported on the statement of activities, and the fixed asset amount that is reported on the statement of financial position, should be based on the historical (original) cost of the fixed asset. (The amounts should not be based on the cost to replace the fixed asset, or on the current market value of the fixed asset, etc.)
Matching principle
This principle requires that the fixed asset's cost be allocated to depreciation expense over the life of the fixed asset. In effect the cost of the fixed asset is divided up with some of the cost being reported on each of the statement activities during the life of the fixed asset. A portion of the fixed asset's cost is matched with each period in which the fixed asset is used.
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It’s still confusing, how about an example?
In 2019, XYZ Utility buys a truck for $10,000, with no salvage value. The truck has an expected life of 5 years. Cost of fixed asset: $10,000 Years of estimated useful life: 5 years Depreciation expense per year: $2,000 ($10,000 cost / 5 years) (straight-line method)
At the end of each fiscal year over the 5-year useful life, the Utility system will report the depreciation expense on the statement of activities as shown for each of the following years:
Depreciation Expense
2019
2020
2021
2022
2023
$2,000 $2,000 $2,000 $2,000 $2,000
The journal entry for each year will be as follows: Debit Credit Depreciation Expenses $2,000.00 Accumulated Depreciation $2,000.00 The actual cash paid by the Utility system for this equipment will occur as follows:
Cash Paid
2019
2020 2021
$10,000 $0
$0
2022
$0
2023
$0
2019 entry will be as follows: Debit Credit Fixed Asset $10,000 Cash $10,000 As you can see, the Utility system paid $10,000 in 2019, but the 2019 statement of activities reports depreciation expense of only $2,000. In each of the years 2020 through 2023 the system’s statement of activities will report $2,000 of depreciation expense, thereby matching $2,000 of depreciation expense with the revenues earned in each of those years. However, the system will not pay out any cash for this expense during those years. The system's net income will be reduced in each of the years 2019 through 2023 by $2,000—but the cash account will not be reduced. No cash is being expended during those years. This explains why depreciation expense is sometimes referred to as a noncash expense. Depreciation can be confusing and difficult to comprehend. I hope this article helps in grasping an understanding of defining depreciation and other key concepts and how it all works together in the accounting process. Please contact Melanie at (615) 900-1015 or melaniesain@taud.org if you have additional questions or comments about this article.
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REGION MEETING NEWS >>> Region meetings are held quarterly throughout the year and provide unique opportunities to network with others in the utility industry. Speakers present topics that are current, informative and beneficial to utilities and related industries. Some recent presentations include: updates on training, industry rules, reporting and regulation, insurance provisions, workplace safety, and what’s upcoming in new and innovative smart technology. TAUD encourages you to be ‘in-theknow’ and get involved in your region. Region 1 Meeting Jeremy Jones, Region Leader April 18, 2019 Meeting Location: Econo Lodge in Greeneville Attendance: 71
Larry Lewis (731) 234-0380 | larrylewis@taud.org
Region 2 Meeting Brad Brummett, Region Leader June 6, 2019
Systems Entering the Water Contest: the City of Bristol, Bloomingdale U.D., Brownlow U.D., Cold Springs U.D., Erwin Utilities, Greeneville Water Commission, the City of Kingsport, and Lakeview U.D.
Meeting Location: Avalon Country Club in Lenoir City
Contest Winner: Cold Springs Utility District
Attendance: 86
Contest Judges: Mary Short of USDA RD, Carolyn Ferguson with Congressman Phil Roe’s Office, Lana Moore with Senator Lamar Alexander's Office, Greene County Mayor Kevin Morrison, Royce Fout with TDOT, and Reid Seals with WGRV Radio
David Callahan led a tribute to the veterans, as well as a D-Day remembrance before the Pledge of Allegiance
Speakers/Presenters: Louis Trivette of USDA RD, Dustin Dowdy of Southeastern Tank, Kathy Quartermaine of TN811, and Bob Freudenthal, Michael Keeton, & Kirk Smith of TAUD. Thank You to Our Meeting Sponsors: W&W Engineering, Southeastern Tank,and Zion Marine Thank You to Our Door Prize Contributors: ADC, G&C Supply, McGill Associates, Rogers Hydrant Service, W&W Engineering, Southeastern Tank, Filter Magic, Consolidated Pipe & Supply, S&ME, Aulick Chemicals, JR Wauford, McWane Ductile, TN Dept. of Health, Barge Design, and TN811 Next Meeting: October 17, 2019
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For more information on how you can become involved with TAUD ‘s Region Meetings, please contact:
Speakers/Presenters: Brad Grisham of Wachs Water Service, Mark Romers of Industrial Control Systems, Chloe Poole of FUD Knox County discussed TAUD's Women in Water initiative, John Greer of the TN Comptroller's Office discussed legislative issues, Kathy Quartermaine of TN811, Ashley Nelson of USDA RD, and Mike Keeton, Kirk Smith, & Larry Lewis of TAUD. A golf tournament was held directly following the meeting and luncheon to raise money for the first Women in Water Scholarship. The scholarship will be awarded to a female student intending to major in a field related to public utility operations at an accredited college or university. The recipient must be a resident within Region 2. Thank You to Our Meeting Sponsors: Wachs Water Service and Industrial Control Systems
TENNESSEE UTILITY NEWS | www.taud.org
TAUD REGION LEADERS REGION 1: Jeremy Jones REGION 2: Brad Brummett REGION 3: Jimmy Langley Bryan Gipson REGION 4: Buster Harmon Anthony Pelham REGION 5: Michael Clay Bruce Trotter REGION 6: Cathy Dradt Bill Dunnill REGION 7: Lisa Porter REGION 8: Michael Johnson Randy Gregory REGION 9: Scott Miller REGION 10: Tim Lawson Allen Joslyn REGION 11: Chandrika Winston
First Utility District of Hawkins County First Utility District of Knox County Luttrell-Blaine-Corryton Utility District LaFollette Utilities Byrdstown Water Department City of McMinnville West Wilson Utility District Harpeth Valley Utilities District South Giles Utility District Consolidated Utility District Lawrenceburg Utility Systems County Wide Utility District City of Dyer Water Authority of Dickson County Ocoee Utility District Big Creek Utility District Memphis Light, Gas & Water
REGION 1 CONTEST WINNERS
Thank You to Our Door Prize Contributors: ADC, Wascon, McGill Associates, JR Wauford, Smith & Loveless, Stowers, CTI Engineers, Southeastern Tank, Filter Magic, Jackson Morgan, Brann & Whittemore, United Systems & Software, Barge Design, City of Crossville, S&ME, Consolidated Pipe and TN811 Thank You to Our Golf Tournament Sponsors: FUD Knox County, The Trust Company, Remco, Stowers Machinery, CTI Engineers, Southeastern Tank, JR Wauford, and Bar Environmental. Next Meeting: Joint Meeting with Region 3 on September 12, 2019
Region 3 Meeting Jimmy Langley & Bryan Gipson, Region Leaders May 30, 2019 Meeting Location: Huntsville
Scott County Museum in
Attendance: 38 Speakers/Presenters: Nathaniel Green of James C. Hailey, Josh Baker of McWane Ductile, Kathy Quartermaine of TN811, Erich Webber of the Knoxville EFO, Kirk Morris of USDA RD, and Michael Keeton & Larry Lewis of TAUD. Thank You to Our Meeting Sponsors: James C. Hailey and McWane Ductile Pictured (l-r): Mary Short, Mayor Kevin Morrision, Reid Seals, Carolyn Ferguson, Lana Moore, Royce Fout, and Richard Hammons & Scotty Wallace of Cold Springs Utility District.
Thank You to Our Door Prize Contributors: ADC, Wascon, Brann & Whittemore, Southeastern Tank, Cannon & Cannon, Walter A. Wood, TN811, and Rye Engineering Next Meeting: Joint Meeting with Region 2 on September 12, 2019
3rd Quarter | Volume 33
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REGION MEETING NEWS >>> REGION 5 CONTEST WINNERS
Region 5 Meeting Michael Clay and Bruce Trotter, Region Leaders May 9, 2019 Meeting Location: West Wilson Utility District Attendance: 35 Systems Entering the Water Contest: Hartsville Trousdale County Water, Hendersonville U.D., LaGuardo U.D., Portland Utility System, and West Wilson U.D. Contest Winner: Portland Utility System
Pictured (l-r): Greg Barton, Jason Kouba, Tim Suddarth, Jeff High and Kevin Owen of Portland Utility Systems, and Dr. Dinah Kitchens
Region 4 Meeting Malcom "Buster" Harmon & Anthony Pelham, Region Leaders May 23, 2019 Meeting Location: Pier 42 Restaurant in Monroe Attendance: 35
Contest Judges: Jason Kouba from TN811, Dr. Dinah Kitchens from the TN Department of Oral Health and Greg Barton from Hayes Pipe and Supply Speakers/Presenters: Cole Lawrence & Cary Connor of AP Solutions, Dr. Dinah Kitchens of the TN Department of Oral Health, Craig Ingram of TN811 , Dustin Dowdy of Southeastern Tank gave an update on Danny Brown, Ashley Richards of JR Wauford discussed TAUD's Women in Water initiative, and JW Griffin, Kevin Gilliam, Kirk Smith, & Larry Lewis of TAUD.
Speakers/Presenters: Seth Rye of Rye Engineering, Nathaniel Green of James C. Hailey Co, Buster Harmon with the City of Byrdstown, Ashley Richards discussed TAUD's Women in Water initiative, Jason Kouba of TN811, Chris Hampton of USDA RD, and Bob Freudenthal, Michael Keeton, J.W Griffin, & Kirk Smith of TAUD.
Thank You to Our Meeting Sponsors: T-Mobile and AP Solutions
Thank You to Our Meeting Sponsors: James C. Hailey and Rye Engineering
Next Meeting: August 15, 2019
Thank You to Our Door Prize Contributors: ADC, Core & Main, Divco Data, Aulick Chemicals, Rye Engineering, Hayes Pipe, Tnemec, Walter A. Wood, Southeastern Tank, JR Wauford, and TN811
Thank You to Our Door Prize Contributors: ADC, Wascon, Brann & Whittemore, Filter Magic, J.R. Wauford, TN811, and Rye Engineering Next Meeting: August 21, 2019
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TENNESSEE UTILITY NEWS | www.taud.org
Region 6 Meeting Cathy Dradt & Bill Dunnill, Region Leaders April 24, 2019
REGION 6 CONTEST WINNERS
Meeting Location: ADC in Fayetteville Attendance: 78 Systems Entering the Water Contest: Bedford County U.D., Consolidated U.D., Fayetteville Public Utilities, Huntland Water System, LaVergne Utilities, Lewisburg Water & Wastewater, Lincoln County Board of Public Utilities, the City of Manchester, MetroMoore County Utility Department, Mount Pleasant Water, Wastewater & Gas, Spring Hill Water Works, and Winchester Utilities
Pictured (l-r): Mayor Bill Newman, David Posey with Fayetteville, Phillip Combs, and Doug Anderton
Contest Winner: Fayetteville Public Utilities Contest Judges: Lincoln County Mayor Bill Newman, NRWA Past President Doug Anderton, and Phillip Combs of Alpha-Talbott Utility District Speakers/Presenters: Brian Harstine of ServLine, Teresa Swystun of DBR Belzona, Ashley Richards discussed TAUD's Women in Water initiative, Will Pride & Jamie Ray of the Columbia EFO, Doug Shelton of USDA RD, and Bob Freudenthal, Kirk Smith, JW Griffin, & Larry Lewis of TAUD. Thank You to Our Meeting Sponsors: ServLine and DBR Belzona Thank You to Our Door Prize Contributors: ADC, Rogers Hydrant Service, Jackson Morgan, DBR Belzona, ServLine, JR Wauford, Hayes Pipe, and Rye Engineering Next Meeting: October 23, 2019
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REGION MEETING NEWS >>> Region 7 Meeting Lisa Porter, Region Leader April 3, 2019
REGION 7 CONTEST WINNERS
Meeting Location: David Crockett State Park Restaurant in Lawrenceburg Attendance: 43 Systems Entering the Water Contest: City of Parsons, St. Joseph Water Works, Lawrenceburg Utility Systems, Linden Utilities, and Hohenwald Utilities Contest Winner: Linden Utilities Contest Judges: Lee Boyd of LUS, Dustin Dowdy of Southeastern Tank, Doug Shelton of USDA RD, and Jason McGee of ADC Speakers/Presenters: Nathan Woods of The Trust Company, Tim Rogers of Rogers Hydrant Service, Jason Kouba of TN811, Will Pride & DeWitt Logsden of the Columbia EFO, Doug Shelton of USDA RD, and Bob Freudenthal, Kirk Smith, & Larry Lewis of TAUD. Thank You to Our Meeting Sponsors: The Trust Company and Rogers Hydrant Service Thank You to Our Door Prize Contributors: ADC, Wascon, Southeastern Tank, Rogers Hydrant Service, LUS, Rye Engineering, McWane Ductile, JR Wauford, and TN811 Next Meeting: October 2, 2019
Pictured (l-r): Dustin Dowdy, Doug Shelton, Mayor Wess Ward of Linden, Jason McGee, and Lee Boyd
Region 8 Meeting Michael Johnson & Randy Gregory, Region Leaders April 11, 2019 Meeting Location: Atwood
Rogers Hydrant Service in
Attendance: 57 Systems Entering the Water Contest: Camden Water System, County Wide U.D., Dyersburg Water System, Kenton Utilities, Northwest Dyersburg U.D., the Town of Rutherford, Trenton Light & Water, Trezevant Water System, and Union City Water & Wastewater Contest Winner: Bradford Water System Contest Judges: Lesa Byrum of the TN Department of Health, Michael McClure of Jacobs Engineering, and Terence McGhee of USDA RD Speakers/Presenters: Ben Hill of Diamond Maps, Kyle Kapela of App Stakk, Johnathan Walters of G&C
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TENNESSEE UTILITY NEWS | www.taud.org
Supply, Eric Matheson of Cumberland Insurance, Brandon Orr & Terence McGhee of USDA RD, and Dewayne Culpepper, Greg Baker, & Tony Wyatt of TAUD.
REGION 8 CONTEST WINNERS
Thank You to Our Meeting Sponsors: Rogers Hydrant Service and G&C Supply Thank You to Our Door Prize Contributors: ADC, G&C Supply, Diamond Maps and Rye Engineering Next Meeting: October 10, 2019
Region 9 Meeting Scott Miller, Region Leader June 20, 2019
Pictured (l-r): Terence McGhee, Jeffery Adams, Jeremy Dethloff and J.D. Dethloff of Bradford Water System, Lesa Byrum and Michael McClure
Meeting Location: Greystone Golf Club in Dickson Attendance: 43 Speakers/Presenters: Chris Polk of Mueller Co., Tom Farmer of Southeastern Tank, Jason Fryer of TN811, and Bob Freudenthal & Tony Wyatt of TAUD. Thank You to Our Meeting Sponsors: Mueller Co. and Southeastern Tank Thank You to Our Door Prize Contributors: ADC, Core & Main, Mueller Co., JR Wauford, Hayes Pipe, TN811 and Rye Engineering The 4th Annual Haley Dale Murphy Memorial Golf Tournament was held after the meeting. Jimmy Murphy (Water Authority of Dickson County) and his family use this tournament to fund the Haley Dale Murphy Memorial Scholarship for a player on the Creek Wood softball and golf teams. They also provide headstones for children whose families are unable to afford one.
Pictured: (above) Region 9 meeting attendees at the Greystone Golf Club in Dickson; (below) Region 10 meets prior to lunch & a Chattanooga Lookouts game.
Next Meeting: September 19, 2019
3rd Quarter | Volume 33
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REGION MEETING NEWS >>> Region 10 Meeting Tim Lawson & Allen Joslyn, Region Leaders June 26, 2019
REGION 11 CONTEST WINNERS
Meeting Location: Southeast TN Development District in Chattanooga Attendance: 38 Speakers/Presenters: Seth Rye of Rye Engineering, Dina Gouge discussed TAUD's Women in Water initiative, Mohammed Faleh of the Chattanooga EFO, Clay Copeland of USDA RD, Sam Saieed of Southeast TN Development District, and Mark Butler, Kirk Smith, & Larry Lewis of TAUD. After the meeting, lunch was provided at AT&T Field and attendees enjoyed a Chattanooga Lookouts game. Thank You to Our Ballgame & Lunch Sponsors: Wascon, Southeastern Tank, Rye Engineering, J.R. Wauford and ADC Thank You to Our Door Prize Contributors: Southeastern Tank, Southern Sales, and Rye Engineering Next Meeting: August 29, 2019
Pictured (l-r): Steve Bowers; Jim Ferrell, Kathy Butler, & Steve Raper of JEA, Senator Ed Jackson, and Ed Jackson III
Region 11 Meeting Chandrika Winston, Region Leader May 8, 2019 Meeting Location: JEA Training Center in Jackson Attendance: 40 Systems Entering the Water Contest: FUD Tipton County, Germantown Water System, Jackson Energy Authority, Lexington Utilities, Michie Water System, and Munford Utilities Contest Winner: Jackson Energy Authority Contest Judges: State Senator Ed Jackson, Ed Jackson III of Congressman Kustoff's office, and Steve Bowers of 101.5 FM Speakers/Presenters: Seth Rye of Rye Engineering, Jason McGee of ADC, Nick Newman with MLGW, Jason Fryer of TN811, and JW Griffin, Tony Wyatt, & Larry Lewis of TAUD. Thank You to Our Meeting Sponsors: ADC and Rye Engineering Thank You to Our Door Prize Contributors: ADC, Rye Engineering, and TN811 Next Meeting: August 14, 2019
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TENNESSEE UTILITY NEWS | www.taud.org
3rd Quarter | Volume 33
49
UPCOMING CLASSES >>> Classes listed occur while this issue is current. For more information or to register for any of these classes, please visit www.taud.org or call Ali Hite, Education Assistant, at (615) 900-1000.
CHATTANOOGA
Eastside Utility District | 3018 Hickory Valley Rd.
8/20 Emergency Operations 6 hrs. Any Cert. 10/22 Basic Microbiology for Drinking Water Personnel 6 hrs. WT/DS
CLARKSVILLE
Clarksville Gas & Water | 2215 Madison St.
Questions? Call us!
(615) 900-1000
11/19 Bacteriological Sampling 11/19**Bacteriological Compliance 11/20* Bacteriological Monitoring & Reporting
6 hrs. WT/DS 18 hrs. WT/DS 12 hrs. WT/DS
GRAY
Johnson City Fire Hall | 106 Gray Commons Cir.
Get complete information & register for any of these courses online at www.taud.org. Choose “Training”, then “List All” or select a specific category:
8/22 Emergency Operations 6 hrs. Any Cert. 9/25 Confined Space 6 hrs. Any Cert. 9/26 Trench Excavation Competent Person 6 hrs. DS/CS
Water Treatment / Distribution Wastewater / Collection Certification Prep Conferences Backflow Training Safety Natural Gas Commissioner Training Municipal Utilty Official Training
8/26****Fundamentals of Water Distribution 8/26****Fundamentals of Water Treatment 9/11 TOSHA Basic Safety for Utilities
FEES VARY DEPENDING ON CLASS Members $85-$360 Non- Members $90-$720
10/8 Cross Connection Renewal 10/9** Cross Connection Basic
JACKSON
JEA Training Center | 320 Hwy 45 By-Pass
JEA Facility | 604 S. Royal St.
9/24 Cross Connection Renewal 9/25** Cross Connection Basic
50
6 hrs. Any Cert. 12 hrs. Any Cert.
KINGSPORT
PET Dairy Building | 320 Hwy 45 By-Pass
6 hrs. Any Cert. 12 hrs. Any Cert.
KNOXVILLE
Hallsdale-Powell Utility District | 3745 Cunningham Rd.
2-day class (*) 3-day class (**) 4-day class (***) 5-day class (****)
6 hrs. DS 12 hrs. WT 6 hrs. Any Cert.
8/27 Cross Connection Renewal 8/28** Cross Connection Basic First Utility District of Knox County | 122 Durwood Rd.
11/4** Knoxville Collection System Cram Session
6 hrs. Any Cert. 12 hrs. Any Cert. 6 hrs. CS
TENNESSEE UTILITY NEWS | www.taud.org
LENOIR CITY
Lenoir City Center | 7698 Creekwood Park Blvd.
8/21 Emergency Operations 6 hrs. Any Cert. 10/24 Basic Microbiology for Drinking Water Personnel 6 hrs. WT/DS
MARYVILLE
Alcoa Water Filtration Plant | 302 Sam Houston School Rd.
8/26**** Fundamentals of Water Distribution 6 hrs. DS 10/2** Membrane Water Treatment 12 hrs. WT 11/4** Knoxville Water Treatment Cram Session 12 hrs. WT City of Maryville Operations Center | 332 Home Ave.
11/4** Knoxville Water Distribution Cram Session City of Maryville Municipal Building | 400 W. Broadway Ave.
11/4** Knoxville Wastewater Cram Session
6 hrs. DS 6 hrs. DS
Classes continued on next page. Cram Session Registration form on page 53. >>>
3rd Quarter | Volume 33
51
UPCOMING CLASSES >>> Classes listed occur while this issue is current. For more information or to register for any of these classes, please visit www.taud.org or call Ali Hite, Education Assistant, at (615) 900-1000.
MEMPHIS
MLGW Training Facility | 4949 Raleigh-LaGrange Rd..
10/22 Cross Connection Renewal 10/23**Cross Connection Basic
6 hrs. Any Cert. 12 hrs. Any Cert.
MURFREESBORO
TAUD Training Station | 840 Commercial Ct.
Questions? Call us!
(615) 900-1000
Get complete information & register for any of these courses online at www.taud.org. Choose “Training”, then “List All” or select a specific category: Water Treatment / Distribution Wastewater / Collection Certification Prep Conferences Backflow Training Safety Natural Gas Commissioner Training Municipal Utilty Official Training FEES VARY DEPENDING ON CLASS Members $85-$360 Non- Members $90-$720
8/20 Intro to Pumps & Motors 6 hrs. Any Cert. 8/21 Chemical Feed Pumps & Motors 6 hrs. Any Cert. 8/22 Emergency Pumps & Motors 6 hrs. Any Cert. 8/26****Fundamentals of Wastewater Treatment 12 hrs. WT 9/4 Wastewater Issues & Regulation Update 6 hrs. WW 9/4 TOSHA Health Hazards for Industry 6 hrs. WW/CS 9/5 Collection Systems Issues & Update 6 hrs. CS 9/5 TOSHA Basic Safety for Utilities 6 hrs. Any Cert. 9/10 Cross Connection Renewal 6 hrs. Any Cert. 9/11** Cross Connection Basic 12 hrs. Any Cert. 9/17 Lockout/Tag Out (½ day) 3 hrs. Any Cert. 9/17 GHS & Hazard Communication (½ day) 3 hrs. Any Cert. 9/18* OSHA 10-Hour Safety (1½ days) 10 hrs. Any Cert. 9/19 OSHA Record Keeping (½ day) 3 hrs. Any Cert. 9/24* Water Loss 12 hrs. WT/DS 9/26 Water Quality After the Meter 6 hrs. WT/DS 10/8** Practical Math for Distribution Operators 6 hrs. DS 11/4** Murfreesboro Collection Cram Session 6 hrs. CS 11/4** Murfreesboro Water Treatment Cram Session 12 hrs. WT 11/4** Murfreesboro Wastewater Cram Session 12 hrs. WT Consolidated Utility District | 709 New Salem Rd.
11/4** Murfreesboro Distribution Cram Session 11/19 Cross Connection Renewal 11/20**Cross Connection Basic
6 hrs. DS 6 hrs. Any Cert. 12 hrs. Any Cert.
2-day class (*) 3-day class (**) 4-day class (***) 5-day class (****)
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TENNESSEE UTILITY NEWS | www.taud.org
REGISTRATION FORM Please make copies of this form for more than 1 registrant
please print
2019 Fall Cram Session | Nov. 4-7, 2019 You may also register online at www.taud.org Questions? Call the Training Station: (615) 900-1000
Send form with payment to: TAUD PO Box 2529 Murfreesboro, TN 37133 Fax: (615) 898-8283
Utility:________________________________________________ Address:_______________________________________________ City:______________________________ State:____ Zip:________ Phone: (_____) ______-_______ E-mail:_____________________ **PLEASE NOTE: Registering for Crams does not register you for the exam!** Cram Session Location: Murfreesboro Knoxville Circle which exam you plan to take (choose one): Water Treatment
1
2
3
4
Distribution
1
2
Wastewater Treatment
1
2
3
4
Collection
1
2
Registration Fees: TAUD Member $275 Non-Member $550 Study Guide Options:
Study materials are available via e-mail or on CD. Study guides on CD will be mailed up to 10 days prior to class. One study guide is included in registration fee. Printed copies will be provided (at an additional cost) in class to persons registering after this time.
Digital Copy e-mailed to: _______________________________ Mail CD to address provided above Additional study materials may be purchased in these formats and mailed to the address provided.
Extra Study Guides on CD $50 Printed Study Guide $75 Amount Due: $_______
If preferred, you may use your Master Card, American Express, Discover or Visa. Only provide your credit card information on forms that are to be direct mailed or faxed. We cannot accept credit card information via email, including attachments.
Credit Card Number: _____________________________ Exp. Date:___________ Amount: _______________ Card Holder Name: ______________________________ Signature: _________________________________ Billing Address: ______________________________________________________ Zip:_________________ Email for receipt:__________________________________________________________________________
Refund & Cancellation Policy
REGI STR ATION
2 019 FALL CR A M SE S SION
Registrant:_____________________________________________
If cancellation is necessary, refund requests submitted in writing will be processed as follows: Fifteen or more days prior - full refund, less any materials mailed. Five to fourteen days prior - half payment, less any materials mailed. Less than five days prior - no refunds. Another person may substitute. If payment has not been received & a cancellation has not been requested prior to the date of the class, TAUD will invoice the registrant for the full amount of the class. Please contact Brent Ogles, Education Manager (brentogles@taud.org) or Ali Hite (alistephens@taud.org) should you have any questions. 3rd Quarter | Volume 33
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2019 Utility Leadership Conference
November 13-15 | Music Road Hotel | 303 Henderson Chapel Rd. | Pigeon Forge, TN | (844) 993-9644
As utility district managers and commissioners are charged with the responsibility of overseeing a system's financial and operational well-being, TAUD's Leadership Conference is designed to assist with those challenges. Sessions are heavily focused how to be an effective leader. Topics emphasize organizational, operational, and ethical responsibilities as a leader of a utility. All utility district commissioners are mandated by the state to attend training. For those seeking reappointment, 12 hours of training must be completed prior to reappointment. For newly appointed commissioners, 12 hours of training must be completed within the first year of appointment. Once initial training has been completed, commissioners then have three years to attend an additional 12 hours of training in order to obtain the required Continuing Education units. For more information regarding Commissioner Training, please contact Melanie Sain at (615) 896-9022 or by e-mail at melaniesain@taud.org. To register, simply fill out the form on the opposite page and submit with payment to the address provided. You may also register online at taud.org.
CONFERENCE SCHEDULE Twelve (12) Hours of Commissioner Training Available!
WEDNESDAY, NOVEMBER 13
11:00am - 1:00pm 1:00pm - 4:00pm
Registration Sessions
THURSDAY, NOVEMBER 14 8:30am - 12:00pm Sessions 12:00pm - 1:00pm Lunch 1:00pm - 3:30pm Sessions
FRIDAY, NOVEMBER 15 7:00am - 8:30am Breakfast 8:30am - 11:30am Sessions
HOTEL INFORMATION Music Road Hotel 303 Henderson Chapel Rd. Pigeon Forge, TN 37863 (844) 993-9644 Room Rate: $129 S/D
Reservation Deadline: October 11 We strongly encourage attendees to make reservations as soon as possible. Room availability at Music Road Hotel cannot be guaranteed after TAUD's room block cut-off date has passed.
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TENNESSEE UTILITY NEWS | www.taud.org
REGISTRATION FORM
please print
Utility Leadership Conference | November 13-15, 2019 Music Road Hotel | Pigeon Forge, TN You may also register online at www.taud.org REGISTRANT 1: _________________________________________________________________ REGISTRANT 2: _________________________________________________________________ REGISTRANT 3: _________________________________________________________________ REGISTRANT 4: _________________________________________________________________ UTILITY/COMPANY: ______________________________________________________________ BUSINESS ADDRESS: _____________________________________________________________ CITY: ______________________________________ PHONE: (____) _____ - _________
STATE: ________
ZIP: ___________
E-MAIL: _______________________________________
REGISTRATION FEES:
By November 1, 2019 Number of Registrants TAUD Member $325 x_____ Non-Member $635 x_____ One day only $165 x_____ After November 1, 2019 Number of Registrants TAUD Member $375 x_____ Non-Member $685 x_____ One day only $265 x_____ Total Amount Due: $________ Please make checks payable to TAUD. If preferred, you may also pay by credit card. Only provide your credit card information on forms that are to be direct mailed or faxed. We cannot accept credit card information via e-mail, including attachments.
CREDIT CARD NUMBER: __________________________ EXP. DATE: _________ AMOUNT: ____________ CARD HOLDER NAME: __________________________ SIGNATURE: _____________________________
EMAIL FOR RECEIPT: _______________________________________________________________ Send completed form(s) & payment to: TAUD P.O. Box 2529 Murfreesboro, TN 37133 Fax: (615) 898-8283 | Questions? (615) 896-9022 TAUD Refund Policy: All cancellations must be received in writing. A full refund will be issued (less a $50 processing fee) if cancellation is received at least 15 working days prior
to the conference. Cancellations received between 5 & 14 business days prior to the conference are eligible to receive a half refund. No refunds will be issued if cancellation notice is received less than 5 business days prior to the conference. Substitutes are always welcome. 3rd Quarter | Volume 33
REGI STR ATION
BILLING ADDRESS: ______________________________________________ ZIP: ________________
UTILIT Y LE ADERSHI P CONFERENCE
Please make copies of this form for more than 4 registrants
55
2019 Administrative Professionals Conference
December 5-6 | Airport Embassy Suites Hotel | 10 Century Blvd. | Nashville, TN | (615) 871-0033
HOTEL INFORMATION Airport Embassy Suites Hotel 10 Century Blvd., Nashville, TN 37214 (615) 871-0033 Room Rate: $149
Reservation Deadline: Nov. 15 TAUD's Administrative Professionals Conference is an opportunity for administrative personnel to learn valuable skills that benefit today’s workplace. Administrators interact extensively with people daily and this conference aims to address topics such as customer service, human resources, and utility policies. It is also host to the TAUD Administrative Professionals (TAP) program. The TAP program was designed to promote and educate those striving for administrative excellence. Requirements for the program cover a series of topics relevant to the skills necessary to become a certified Administrative Professional in the utility industry. The program requires completion of thirty (30) hours of course work in office management, financial administration, legal and personnel issues, personal development, and on-site system evaluation (applicable to your specific utility). To register, please fill out the form on the opposite page and submit with your payment to the address provided. You may also register online at taud.org.
We strongly encourage attendees to make reservations as soon as possible. Room availability cannot be guaranteed after the TAUD room block cut-off date has passed.
CONFERENCE SCHEDULE Nine (9) Hours of TAP & six ( 6) hours of Commissioner Training Available!
THURSDAY, DECEMBER 5
8:00am - 9:00am Breakfast & Registration 9:00am - 12:00pm Sessions 12:00pm - 1:00pm Lunch 1:00pm - 4:00pm Sessions
FRIDAY, DECEMBER 6
7:30am - 8:30am Breakfast 8:30am - 11:30am Sessions
For more information about this conference or to request an application for the TAP program, contact Beth Hardiman at (615) 900-1014 or by e-mail at bethhardiman@taud.org.
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TENNESSEE UTILITY NEWS | www.taud.org
please print
Administrative Professionals Conference | December 5-6, 2019 Airport Embassy Suites Hotel | Nashville, TN You may also register online at www.taud.org REGISTRANT 1: _________________________________________________________________ REGISTRANT 2: _________________________________________________________________ REGISTRANT 3: _________________________________________________________________ REGISTRANT 4: _________________________________________________________________ UTILITY/COMPANY: ______________________________________________________________ BUSINESS ADDRESS: _____________________________________________________________ CITY: ______________________________________ PHONE: (____) _____ - _________
STATE: ________
ZIP: ___________
E-MAIL: _______________________________________
REGISTRATION FEES:
By November 22, 2019 Number of Registrants TAUD Member $230 x_____ Non-Member $415 x_____ One day only $125 x_____ After November 22, 2019 Number of Registrants TAUD Member $255 x_____ Non-Member $440 x_____ One day only $225 x_____ Total Amount Due: $________ Please make checks payable to TAUD. If preferred, you may also pay by credit card. Only provide your credit card information on forms that are to be direct mailed or faxed. We cannot accept credit card information via e-mail, including attachments.
CREDIT CARD NUMBER: __________________________ EXP. DATE: _________ AMOUNT: ____________ CARD HOLDER NAME: __________________________ SIGNATURE: _____________________________ BILLING ADDRESS: ______________________________________________ ZIP: ________________ EMAIL FOR RECEIPT: _______________________________________________________________
TAUD Refund Policy: All cancellations must be received in writing. A full refund will be issued (less a $50 processing fee) if cancellation is received at least 15 working days prior
to the conference. Cancellations received between 5 & 14 business days prior to the conference are eligible to receive a half refund. No refunds will be issued if cancellation notice is 3rd Quarter received less than| 5Volume business 33 days prior to the conference. Substitutes are always welcome.
REGISTRATION
Send completed form(s) & payment to: TAUD P.O. Box 2529 Murfreesboro, TN 37133-8041 Fax: (615) 898-8283 | Questions? (615) 896-9022
ADMINISTRATIVE PROFESSIONALS CONFERENCE
REGISTRATION FORM
Please make copies of this form for more than 4 registrants
57
GA ME - SPOT TH E D I FFE RE NCE S
Find 10 differences between the original photo (pictured top) and the altered photo (pictured bottom).
frog Find age 27! on p 58
TENNESSEE UTILITY NEWS | www.taud.org
ADVERTISER INDEX >>> Alliance Water Resources pg. 40 American Development Corporation pg. 13 C2RL Engineers pg. 48 C.I. Thornburg pg. 17 G & C Supply Company pg. 33 Joel B. Spaulding pg. 21 McGill Associates pg. 10 Pittsburg Tank & Tower Company pg. 45 Sensus pg. 7 Southeastern Tank Back Cover Tennessee Utility Assistance pg. 4 United Systems & Software pg. 19 Wascon, Inc. pg. 37
Interested in Advertising?
Associate Members are welcome to advertise in any of TAUD's publications, including the Tennessee Utility News (TUN) magazine, the annual TAUD Membership Directory and Training Station Wall Calendar.
TN Utility Ne
Final Trim Size:
Business Card Horizontal
25”
By advertising in one, or all, of TAUD's publications, you're not only making an investment in your business, but also ensuring that your message directly reaches your target audience. For more information, please contact Vanessa Solis at (731) 352-8256 or by e-mail at vanessasolis@taud.org.
3rd Quarter | Volume 33
7.375” x 8.87 5”
¼ Page
NUMBER OF
Two of TAUD's most valuable resources, the Membership Directory & Training Station Wall Calendar are published annually. While the Directory is only distributed to members of the Association, the Calendar is directly mailed to every active operator and utility in the state.
25”
½ Page
Full Page (no bleed)
8.5” x 10.875”
3.5625” x 4.31
A quarterly magazine, the TUN has an average annual circulation of over 20,000 recipients, consisting of readers in the water, wastewater and natural gas industries. This includes managers, operators, state legislators, rural and economic community development officials, as well as state and federal agencies. The TUN is also available to read on e-reader and tablet devices, via issuu.com.
ws Magazine
8.375” x 10.6
Full Page (w/bleed)
Business Card Vertical
3.5625” x 2.03 13”
ISSU
7.375” x 4.31 25”
2.0313” x 3.56 25”
ES: Full Year / 4 issues 1 st Quarter (Content Dead line: January st 2 nd Quarter 1) (Content Dead line: April 1 st 3 rd Quarter ) (Content Dead th line: July 1 st) 4 Quarter (Content Dead line: October st AD SIZE: 1) Business card Full Page Quarter Page Inside Cove Half Page r A P U B LBack Cover ART WO I C AT I O
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Tennessee Utility News
IVITY F _______ COMPANY NAM EE CO N TRIBUT E ______ ORS _________ CONTACT NAM _________ E ______ _________ _________ _____ PRO BILLING ADD _________ DUC T/SERVIC RESS ______ _________ E ______ _________ ______ PHO EMAIL ADD ___ ___ ___ RESS ______ _________ _________ NE NUMBER ____ (______)___ _________ _________ If preferre ___ CITY ___ _________ /STATE ___ _ - ______ d, _________ _________ _____ Only prov you may use you ________ r ide _ PLEASE INVO We cannot your credit card Master Card, Ame ZIP ______ ICE rican info accept cred _ PAYMENT ENC L it card info rmation on forms Express, Discover LOSED E G I S L A T I V E I S S that or Visa rmation via CREDIT CAR UE email, incluare to be direct mai . D NUMBER led or faxe ding atta _________ chments. d. CARD HOLDER _________ NAME ___ _________ _________ _________ BILLING ADD ___ _________ EXP. DATE RESS ______ _________ _________ _________ RECEIPT NEED _ ___ TOTA _________ _ SIGNATU L DUE ___ ED? RE ______ _______ _________ YES NO SEND _________ ______ CITY RECEIPT TO _________ /STATE ___ _________ ____ _________ Please send _________ ______ ZIP payment _________ _______ info _________ TAUD | P.O. rmation or chec _________ k (made paya Box 8041 ______ | Mur ble to
freesbor Fax: (615 o, TN 3713 TAUD) to: ) 898-828 3 3
14 M u n i Tr a i n icni p a l U t i l i t y O g Requ i r e m efnf i c i a l 2 0 2 01 ts 9 Legis lative S 29 SCA ession DA F o r Recap U t ilities 46 Reg - Make istratio the Da n Info t a Wo r - 2 01 9 k F o r Yo Busine u ss Conf erence
Family, Faith , & H2Okra
59
P.O. Box 2529 Murfreesboro, TN 37133-2529 www.taud.org
Just like water, we find a way. Tap our 40 years of providing outside-the-box solutions to utility districts, municipalities and water authorities. Knowing that water always finds its own way, Southeastern Tank has spent decades developing an understanding of how we can make water work best for you. Our commitment ensures long-lasting solutions and optimal operations. Whether it’s tanks, inspections or mixing, we make water work for you. Call 615-466-5220 for a quote, or visit setank.com. setank.com
60 Vesta Road • Lebanon, TN 37090 • p. 615.466.5220 • f. 615.466.5222 M U N I C I PA L WAT E R & WA S T E WAT E R
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I N D U S T R I A L WAT E R , WA S T E WAT E R & F I R E P R O T E C T I O N
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D I S I N F E C T I O N B Y- P R O D U C T M A N A G E M E N T