January/February 2018 - Quench by Texas Rural Water Association

Plan to Attend RuralWaterCon 2018

Also Inside:

Financial Best Practices for Water Systems TRWA to Offer New Services: GIS Mapping and Consumer Magazine January/February 2018 www.TRWA.org

TRWAToday TRWA Board of Directors Officers Pat Allen President Guadalupe (Dist. 9) Brian Macmanus Vice President Cameron (Dist. 6) Chris Boyd Secretary Denton (Dist. 3) Barry Miller Treasurer Gonzales (Dist. 5) Clay Hodges Immediate Past President Hunt (Dist. 7)

District Directors Finley Barnett Taylor (Dist. 1) Bruce Alexander Medina (Dist. 2) Delores Atkinson Lampasas (Dist. 4) Charles Beseda Hill (Dist. 8) Kent Watson Brazos (Dist. 10) Kevin Spence Franklin (Dist. 11) Shirley Thompson Kaufman (Dist. 12) Robert Nettles Walker (Dist. 13) Rhonda Shaw Rusk (Dist. 14)

Established in 1969, the Texas Rural Water Association (TRWA) is a statewide nonprofit trade association with an active membership consisting of approximately 750 nonprofit water supply corporations, water districts, small-town water departments and investor-owned utilities. In addition, more than 200 water industry suppliers participate in TRWA activities as associate members. TRWA members provide water and wastewater service to 2.5 million customers throughout Texas. TRWA is dedicated to helping directors, managers, operators and office professionals provide efficient service and clean, safe drinking water to their customers. Through onsite technical assistance, education and information exchange, TRWA helps its members better meet their needs as well as the needs of their customers. 2

Quench â&#x20AC;&#x201D; November / December 2017

Leadership Team Lara Zent Executive Director and General Counsel Lisa Adams Foundation Development Director Larry Bell Technical Assistance Director Celia Eaves Professional Development and Training Director Janice Gibbs, CPA Finance Director Allison Kaminsky Communications and Information Technology Director Jason Knobloch Environmental Services Director Angela Russell, CMP Member Services Director

Office Staff Melody Bennett Project Support Specialist Ross Brookbank Assistant Project Manager, Environmental Services Pam Cantrell Accounting Support Specialist Kelsey Copeland Communications Specialist Patti Flunker Executive/Legal Assistant Angela Harris Project Support Specialist Ariane Walker Training Support Specialist Amanda Wilson Member Services Coordinator

Field Staff Thomas Acker, Jr. Michael Beadnell Nathan Cantrell Alex Eaves Paul King Deborah McMullan Steven Mindt Charles Perkins Bruce Pearson Refugio Rodriguez James Smith Quentin Turner William White

Instructor Instructor Wastewater Technician Wastewater Technician Circuit Rider Sourcewater Protection Specialist FMT Specialist Circuit Rider Instructor FMT Specialist Circuit Rider FMT Specialist Assistant Technical Assistance Director

Contact the Editor Editorial and advertising inquiries may be directed to the Communication Department at 512-472-8591 or editor@trwa.org. Join the conversation at: www.facebook.com/TexasRuralWaterAssn Find us at @TexasRuralWater and @TRWALegislative for industry and legislative news relevant to you!

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Features:

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in Our Community Also Inside:

Plan to Attend RuralWaterCon 2018

Technical Assistance Corner — Procedures for Water Main Line Leak Repair

By Angela Russell, Texas Rural Water Association Registration is now open for TRWA's 49th Annual Convention to be held in Fort Worth.

Harmful Algal Blooms What Does a Superior Rating Mean for Your Water System Your Texas Rural Water News Source Texas Rural Water Association | www.trwa.org | (512) 472-8591

In Every Issue: Letter from the President Letter from the Executive Director

Ask Larry

5 14

Keep it Legal

Answers to your technical questions Answers to your legal questions

Advertiser Index Plan Ahead

TRWA’s Calendar of Events

30 31

By Michael Beadnell, Texas Rural Water Association Maintain compliance by following these best practices for leak repairs.

Rural Water Foundation: 11 Texas Looking Forward in 2018

By Lisa Adams, Texas Rural Water Foundation Foundation Developmental Director celebrates one year with the organization and reflects on 2017, upcoming happenings and goals for the Foundation's future.

How to Make Quality Pipe Repairs Quickly

Political Action Committee Needs Your Support

Financial Best Practices for Water Utilities

TRWA to Offer New GIS Mapping Services

TRWA to Produce Consumer Magazine in 2018

TRWA Briefs

By Ed Nunes, Krausz USA Minimize risk and cost by making quality repairs quickly and effectively. By Allison Kaminsky, Texas Rural Water Association The Texas Rural Water Political Action Committee (PAC) is an individual-supported PAC dedicated to supporting elected officials at the state and federal level who are in key positions and who champion the issues that matter to rural water systems in Texas. By Hunter Hook, CoBank Maintaining a water utility's financial health isn't just about managing for today, but ensuring future generations have clean and affordable water. By Ben Hill, Diamond Maps and Jason Knobloch, Texas Rural Water Association Discover eight reasons why more systems than ever before are adopting GIS mapping technologies. By Kelsey Copeland, Texas Rural Water Association Engage and inform your members by participating in TRWA's newest publication developed for consumers. Absentee Voting Ensures You Have a Voice in Elections; Texans Receive Utility Management Certification; TRWA Celebrates Kent Watson's 30 Years of Service at 49th Annual Convention Quench — November / December 2017 3

President's Message Greetings Friends and Neighbors, I hope all is well with you and yours, and the hard work of conquering the challenges of 2018 is underway. The new year is proving to be as busy and challenging as 2017. In February, members of the TRWA Executive Board and other loyal participants traveled to Washington, D.C. to participate in the National Rural Water Association’s Rural Water Rally at our nation’s capital. We assembled our team and discussed strategy before we converged on the Capitol to visit each congressional office. The efforts in Washington are very similar to our efforts in Texas during our TRWA Rural Water Day at the Texas Capitol each legislative year.

"TRWA conferences provide an opportunity for learning new ideas while comparing stories and experiences with others working in our industry." 4

I want to thank all of those who made the trip and volunteered their time to support our efforts in Washington. The TRWA RuralWaterCon will be held in Fort Worth, April 4th – 6th at the Omni Fort Worth. I want to urge everyone to attend the conference. The TRWA staff has planned another great event; there will be something for everyone who operates, governs, or maintains facilities in the rural water and wastewater industry. I feel sure you will find that the TRWA conferences provide an opportunity for learning new ideas while comparing stories and experiences with others working in our industry. I hope to see you in Fort Worth! It’s a Great Day to be a Texan! Best Regards,

Pat Allen President Texas Rural Water Association

Quench — November / December 2017

Letter from the Executive Director I was asked by National Rural Water Association (NRWA) to contribute to an article for their magazine on “peer-to-peer” networks or “P2P” which is a new catch phrase for the Environmental Protection Agency (EPA). NRWA is telling the story that P2P is not new to rural water which I agree with! Although the terminology may be new, at TRWA we have always promoted members networking with each other at our conferences and at the local level. What you can learn from and share with each other is invaluable. We tailor our six conferences each year to groups that can most benefit from sharing their knowledge with each other. Our Tech Conference is primarily for system operators; our Office Professionals Conference is designed for office managers and office staff; and our Fall Management and Districts Conferences are tailored for general managers and board members. Our Annual Convention has something for everyone, including a separate track for board training. In addition to the education we provide at conferences, we provide networking opportunities and incorporate interactive learning sessions. At the local level, several TRWA districts hold district meetings so that systems near each other can make those critical connections. Other districts hold meetings in separate lunch rooms at our fall conferences. In several areas of the state, system managers have organized quarterly utility manager meetings where they discuss issues they’re facing, ideas and solutions. These networks also create opportunities for systems to help systems when there’s a need. In this first year of our new leadership development program, we encouraged the participants to choose local projects that foster peer-to-peer networking and grassroots engagement. In three of the projects, program participants organized local district meetings where there hadn’t been one held before. Another program participant initiated a new local managers’ meeting. The attendees at these events provided enthusiastic feedback and requested that these become regular events in their areas. Please reach out to your TRWA director if you would like to help organize a local member event. It’s a great way for systems to become engaged that may otherwise not be able to do so.

“What you can learn from and share with each other is invaluable.”

We also provide P2P learning opportunities through the work of our trainers, circuit riders and state contract staff. Our technical staff provide hands-on assistance to operators, board members, councils and managers on a variety of issues where they have expertise and experience. They are also able to share best practices they learn from other systems they visit. The same goes for our trainers who provide courses throughout the state. In our legal and technical assistance columns in Quench, members learn from each other’s questions. Thank you for being part of our rich rural water system network where you learn from and teach each other every day! I look forward to working with you in 2018! Best regards,

Lara Zent Executive Director and General Counsel Texas Rural Water Association Quench — November / December 2017 5

ne of the numerous benefits of a membership with the Texas Rural Water Association you hold in your very hands — our bimonthly magazine, Quench. Year by year, our magazine has become more and more popular, thanks to you, our loyal readers! To ensure the continued success of Quench, we have decided to implement a new subscription process for 2017. This will help us speak to the increased demand and associated production costs by ensuring an accurate and manageable distribution list. Your membership with TRWA will continue to include complimentary subscriptions to Quench: •

Regular Utility Members — Up to five (5) complimentary subscriptions

•

Associate Members — One (1)

•

Use our online form: TRWA's website now has an online subscription form, accessible by clicking the “Publications” tab on our menu. With this form, you can update your system's list to reflect who you'd like to receive the included subscriptions, as well as purchase any additional subscriptions you may want to add to your account.

•

Download a form: You may also download the form from our website, fill it out and send it to editor@trwa.org, or fax it to (512) 472-5186.

We will issue your system’s complimentary copies of Quench to the main mailing address for your utility, beginning with our January/February issue, until any updates are received. If you have any questions or if this new subscription process creates a financial hardship for your system, please contact us at editor@trwa.org or call (512) 472-8591.

Quench — November / December 2017

Plan to Attend RuralWaterCon 2018 By Angela Russell, Member Services Director, Texas Rural Water Association

egistration is now open for TRWA’s RuralWaterCon! TRWA’s 49th annual convention will be held at the Omni Fort Worth Hotel April 4-6. The agenda includes three days of networking events, informative breakout sessions, an exhibit hall featuring the latest products and services in the industry, TRWA’s annual business meeting and elections, and much more.

TRWA District and Alternate Directors. The morning will round out with another block of educational breakout sessions, followed by a luncheon honoring Kent Watson’s 30 years of service on the TRWA Board of Directors. We will also recognize the graduates of the 2017-2018 Emerging Leaders Class. Friday wraps up at 2:15 p.m. with a final cash giveaway and PAC silent auction closings.

Come early for our sporting clays tournament fundraiser benefitting the Texas Rural Water Political Action Committee (PAC) on Wednesday, April 4. The event, hosted by AIA Insurance Agency will be held at the Alpine Shooting Range. Individuals or teams may register online or through the printed RuralWaterCon materials being sent to all member systems.

Save your spot and reserve your hotel room by February 23 for discounted rates. Registration and a full agenda can be found online at www.trwa.org. Exhibit hall booths and sponsorship opportunities are available for TRWA Associate Members.

Wednesday’s pre-conference options also include Public Funds Investment Act training and the TRWA/ USDA Engineering Conference. Wednesday evening, attendees are invited to attend the welcome reception and PAC live auction where you can mingle with your peers, enjoy a first look at the exhibit hall, and bid on premium live auction items. The opening general session starts the official RuralWaterCon program off Thursday morning, with greetings from Fort Worth Mayor Betsy Price and a presentation of the 2018 Awards of Excellence winners and Texas Rural Water Foundation Scholarship recipients. The general session will be followed by breakout sessions, the annual business meeting, and complimentary lunch in the exhibit hall. Education topics begin Thursday with concurrent tracks of sessions. Topics range from regulatory updates to GIS mapping to employment law. We also offer a conference within a conference for board members, with a special track of sessions focusing on board member education.

If you have any questions, please contact us at (512) 472-8591 or email meetings@trwa.org. We hope to see you there!

• Transmission/Pipeline/ Construction Easement Negotiations • Right of Entry Permitting • Water Right Leasing • Tank/Plant Site Land Purchasing

• Initial Project Research/ Estimates • Market Value Research/ Appraisals • Title Research/Curative • Condemnation Support

www.hrmrow.com | (512) 353-1075

Thursday evening, enjoy a pre-banquet happy hour before doors open to the President’s Banquet at 6 pm, which features a plated dinner and entertainment by the “Mayberry Deputy,” David Browning. District caucuses take place Friday morning. Caucuses provide official delegates representing each member system a chance to discuss and vote on official TRWA business, including an election for Quench — November / December 2017 7

Technical Assistance Corner, Procedures for Water Main Line Leak Repair By Michael Beadnell, Instructor, Texas Rural Water Association

s a water and wastewater instructor, I often see operators throughout the state struggle with understanding the procedures for water main line leak repair. If possible, repair a leak under some pressure or “hot”. Repairing the leak under pressure will ensure little or no air or potential contaminants are drawn into the water main, reducing the risk of contamination. If the water main remains under pressure during a repair, the main may not require disinfection. In addition, repairing the water main under pressure has the added benefit of not interrupting customer service. If it is necessary to shut off pressure to a water main, the operator should avoid shutting down any more of the system than is necessary. No leak should go unrepaired for more than 24 hours; however, locating underground utilities in the dark is usually not possible. Depending on the pressure loss, diameter, and severity of the main break, the best option might be to wait until daylight to commence repairs. Once the leak is identified and the valve is located to isolate the break, the system should provide notification to all affected. A good rule of thumb is to leave the water main line pressurized to a minimum of 20 psi while digging a sump hole to a minimum depth of 12 inches under the bottom of the broken main to ensure that no contaminants enter the line. Prior to valving off the leak, treat the exterior of the exposed main with a minimum of a 1% solution of bleach. This can be done by adding either 2 ounces of granular HTH (65% available chlorine) into 1 gallon of water or 2/3 cup of 10% bleach into 1½ gallons of water. Mixed in a spray pump container, the solution can be applied to the affected area. If the main repair requires being cut open, all repair fittings should be thoroughly sprayed inside the fitting before the fitting is installed. When installing a repair clamp the operator should ensure that the area of the pipe that the clamp will be in contact with is as clean as possible. Then align the clamp gasket while you set the clamp, tighten onto the pipe and then tighten the clamp bolts evenly. 8

Quench — November / December 2017

Remember that most pipe repair failure is due to improper bedding and backfill. If bedding is not sufficient to support the repair it will most likely cause the repair to fail. Avoid using wet soils from the repair site especially if the site is under concrete pavement. Use of dry material or stabilization products that remove moisture and cause soil to set firmly are recommended. I’ve found that Portland cement mixed with soils works well. If the risks of contamination with the sewer system exists, then isolation and direct disinfection of the pipe is recommended. A boil water advisory may also be issued if isolation and direct disinfection is not appropriate. Once the repair is made flushing of the line is required. While being cautious to prevent damage to private property and the eco- system flush a minimum of two pipe volumes of water from the main at a minimum velocity of 2.5 fps and from at least 2 directions until clear. Flush to achieve a chlorine residual that is representative of your distribution system. I recommend not less than 1.0 mg/l. If water pressure drops below 20 psi during a repair a total coliform sample must be collected. When bacteriological samples are required, and samples test positive, notify your TCEQ regional office immediately. In addition, measures up to and including the issuance of a boil water notification to the affected area may be required. TCEQ’s “PWS Response to Loss of Pressure to All or Parts of the Distribution System” flow chart explains the required processes and techniques and how to determine if it is necessary to issue a boil water notice. In addition, to fully understand the procedures required there are only 2 formulas you need to comprehend when flushing a line. The first is how to calculate capacity of the affected area. To explain, if we take a box that on the inside is 1 foot long, 1 foot wide and 1 foot deep so that we have 1 cubic foot. One cubic footage will hold 7.48 gallons of water. In order to find the cubic foot of a pipe, we use pi (π) which is the circumference of a circular object divided by its diameter and has a value of 3.14. We must first determine the area of the pipe circle in square feet as follows:

Figure: 30 TAC §290.47 (e)

Public Water Supplier Response to Loss of Pressure to All or Parts of the Distribution System

START Did distribution pressures drop below 20 pd during the maintenance / repair / emergency incident?

Area of a pipe circle = π r2 For a 6 inch diameter pipe, the radius (r) is 3 inches. Divide the 3 inches by 12 inches to convert to 0.25 feet.

Yes

Area of the pipe = 3.14 x 0.25 x 0.25 = 0.196 sq. feet. Once the area in square feet has been determined, multiplying the square feet times the length of the pipe will give us cubic feet which can be multiplied by 7.48 to determine the gallons in the affected area or the capacity.

Was the distribution line fully or partially dewatered*?

Yes Can the affected distribution lines be disinfected in accordance with AWWA standards? Complete repair and / or restore normal pressure

Yes Disinfect in accordance with AWWA standards

Can the affected distribution lines be adequately flushed? (see below)

Immediately issue a Boil Water Notification to affected area in accordance with §290.46 (q) and TCEQ directions. Notify TCEQ Regional Office.

Yes Flush until chlorine residual reaches normal operating levels or until a minimum of two volumes of this affected line is flushed, whichever is greater. If the water is not clear after the prescribed flushing, continue to flush until water is clear.

The second formula is Q = A x V to find how long to flush the main. Q is the flow rate in cubic feet per second. A is the area in square feet as determined above and V is velocity in feet per second. Given the 6 inch pipe and the given velocity of 2.5 fps, the formula Q = A x V can now be solved.

Immediately collect bacteriological samples from the affected portion of the distribution system and return affected portion to service.

Are all samples negative? Yes STOP: No further action necessary.

Are all samples fecal positive?

Yes

Notify TCEQ Regional Office immediately. Additional measures up to and including the issuance of a Boil Water Notification to affected area may be required.

* Dewatering occurs when the distribution system is depressurized to perform line repair or replacement.

Q = 0.196 x 2.5 = 0.490 cubic feet per second To determine gallons per minute multiply the cubic feet per second or 0.490 times 449 (which is 7.48 x 60 the sum of the gallons in a cubic foot times the seconds in a minute). This yields 220 gallons per minute. Now take the capacity and multiply by 2 to

get the minimum 2 pipe volumes discussed earlier and divide by 220 to determine the time you need to flush. Remember that this is the minimum and that most of the time it takes longer for the air to clear from the line and the color to come back to normal. Quench — November / December 2017 9

VETERANS

Bolstering the Rural Water Industry

Train and place veterans into new careers in the water and wastewater industry through the Veteran Employment Program

SALVAGE

YOUR SCRAP

RURAL UTILITIES Continue to expand programming to further empower rural water and wastewater utilities throughout the state

SCHOLARS Support rural students and professionals’ education through the Student and Professional Scholarship Programs

www.texasrwf.org/scrap (512) 472-8591 | scrap@texasrwf.org

with Special Guest, Cory Morrow

Sunday, April 22nd| |Door 2 - Prizes 6 PM Live Music | BBQ Dinner | Auction at Texas Old Town - Kyle, TX

Sunday, April 22nd | 2:00 - 6:00 p.m. at Texas Old Town - Kyle, Texas 10

Quench — November / December 2017

TRWF: Looking Forward in 2018 By Lisa Adams, Foundation Development Director, Texas Rural Water Foundation

t has been a year since I joined the Texas Rural Water Foundation as their new Foundation Development Director. And what a wonderful year it has been! I am very proud to say that the Foundation has accomplished a lot and we hope to accomplish even more in 2018. Thanks to increased networking and community outreach, the Foundation has been able to open up the door to new relationships. This includes partnering with other nonprofit organizations that share our same mission to help veterans, their families, and the water industry. 2017 was a strong year for the Veteran Employment Program (VEP). Nearly a dozen veterans were assisted in obtaining employment within the water industry. The Foundation tracked over 35 inquiries from veterans asking about the VEP and the Texas Veterans Commission’s “On-theJob-Training” program. Six student and five professional scholarships were awarded for the TRWF 2017-2018 Scholarship program. The 2018-2019 scholarship is now open for applications and can be downloaded at www. texasrwf.org/scholarship. Part of the Strategic Plan for the Foundation is to create and coordinate fundraisers that not only help the Foundation and its programs, but raise more awareness for our industry that is facing some serious consequences due to a high number of retirees and turnover rates. Following are our 2018 fundraisers that we hope you and your team will participate in. Through Salvage Your Scrap, the Foundation invites systems to tap into their resources by recycling scrap metal and making a contribution to the Foundation using the proceeds. Congratulations to Southrains SUD for winning the 2017 Salvage Your Scrap Fundraiser contest. Rachel Webb spearheaded this campaign in her community and ended up raising $1282.35 for the Foundation. The prize is a feature article in the March/April edition of TRWA’s Quench Magazine.

Salvage Your Scrap will be “recycled” back into the Foundation to support students and veterans. For more information, please visit www.texasrwf.org/ scrap. Please save-the-date for the first annual Operation: Hats Off For Veterans fundraiser. Live music will be featured by Texas’ country artist, Cory Morrow. The date is April 22, 2018, and will be held at Texas Old Town in Kyle. At TRWF, we honor our heroes by creating and supporting unique programs designed to attract veterans to the water and wastewater utility industry and assist them in entering the career field to foster their successful transition into civilian life. There will be a silent and live auction including an autographed hat and acoustic guitar from Grammy award winning artist George Strait. There will also be signed sports memorabilia, his and her jewelry, gift baskets, bed and breakfast getaways, cowboy boots, and many more one-of-a-kind auction items. For more information, please visit www.texasrwf. org, or look for Operation: Hats Off For Veterans on Facebook. Thank you for your continued support for the Foundation, our veterans, and everyone who works in the water and wastewater industry. Happy New Year!

If your company is hiring, please don’t forget to share your job posting with the Foundation. Please email job postings to Lisa Adams at Lisa. Adams@trwa.org. She will work to help you fill the vacancy. Her number is 512-472-8591.

The contest started over on January 1 and ends December 31, 2018. The money raised for Quench — November / December 2017 11

How to Make Quality Pipe Repairs Quickly By Ed Nunes, Product Manager, Krausz USA, the creators of HYMAX

ou would think that if a pipe repair is made quickly, it probably won’t be done properly. It is possible, however, to make repairs quickly without compromising on quality. There are several other benefits to making repairs quickly. Workers are less at risk due to reduced time in the ditch, labor costs are minimized and workers can get home faster. This is especially important at night when repairs are more complicated, riskier to make and installers are more tired than during the day. Here are three ways to make repairs quickly while ensuring a quality repair:

Use Clamps and Couplings That Can Work with a Range of ODs and Pipe Materials There are a number of coupling products that offer full transition that will fit pipes of varying types and sizes within your water or wastewater infrastructure. There are also products that have the versatility to either join or repair pipes, offering a high degree of flexibility to make repairs as required. These kinds of clamps and couplings can also help to reduce inventory, on the shelf or in the truck, given their capacity to be used on a variety of pipes and repair situations.

Maintain a Properly Resourced Inventory Many times, making quick repairs is about having the right product on hand when you need it. There is nothing worse than not having the right parts during an emergency repair. Poor planning will result in the job taking longer to complete, delays in returning water service to normal and disgruntled customers.

Use High-Quality, Easy-to-Install Products Couplings and clamps that are easy to install can make repair jobs more efficient, save time and help eliminate installation errors. There are a variety of repair couplings that are quick and easy to install, which are particularly useful for night conditions. Products that don’t have to be disassembled can also make a big difference in making a quick installation — there is nothing more aggravating for an operator than losing a bolt in a water-filled ditch at night.

Properly maintaining your inventory is fundamental to good planning and avoiding making an emergency order. Taking this on while minimizing costs can be a challenge, however, particularly for smaller utilities who might not have the space or budget to maintain a widerange of repair products. Before deciding on how much inventory you need, carefully look at the demand for repair products and when they are used most frequently. Look at your orders over the course of the last three or four years, and try to detect trends. See if there are periods when the demand for certain clamps or couplings is high and other periods when it is low. This will help you decide which products should be in high supply and which ones can be lower. Knowing the size and types of pipes that are in the ground can also help predict what kind of products and repair tools to store. Weather can play a key role in determining which repair supplies will be in high demand and how fast you can obtain them. Repairs are often required when the ground shifts during the spring thaw and at other times of the year when the weather is harsh (e.g. hurricane season). Keep in mind when ordering products that orders will also be harder to fill when weather conditions will get in the way of quick deliveries. It only takes one snowed-in regional shipping hub to delay orders across the entire country. 12

Quench — November / December 2017

You cannot afford to purchase products that will fail early, requiring another repair, and no utility can afford the cost of making a second repair at the same location. It pays to use high-quality products that are exceptionally durable, even in harsh conditions, and designed to prevent future pipe damage from postinstallation ground shifts and temperature changes, protecting your investment over the long-term. Making quality repairs quickly is in large part about preparation and making sure you have what you need before the break happens. Ensure your inventory includes the products you will most likely need based on past experience and by keeping track of existing pipes in the ground. Clamps and couplings that can work with a wide range or materials and ODs will help to fix pipes regardless of what is uncovered under the ground. Finally, there’s no substitute for high quality products that can prevent breaks in the future, and easy-to-install products that don’t have to be disassembled. If you follow these strategies, you can help ensure pipe repairs are made quickly and securely to save money and time, and ensure that your crews get home safe and as soon as possible.

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SEE US AT THE FOLLOWING CONFERENCES: ORWA Fall Conference Sequoyah State Park & Lodging, Oklahoma City, OK on August 30-Sept. 1, 2017 10Th Annual National Abovestorage Conference at Moody Gardens Hotel, Seven Hope Blvd. Galveston, TX on September 13-14, 2017 WaterPro 2017 Conference at 2500 East Second Street, Reno, Nevada on September 18-20, 2017 | Booth No. 305 WEFTEC 2017 Conference at McCormick Place 2301 S. King Dr. Chicago, Illinois on September 30 – Oct 4, 2017 | Booth No. 3208

Phone 903.870.5000 – www.texas-aquastore.com – sales@texas-aquastore.com

Quench — November / December 2017 13

Ask Larry A Q&A column with TRWA Technical Assistance Director, Larry Bell

Can a WSC allow a homeowner to have an additional meter for the sole purpose of running the sprinkler system for their lawn and landscape? Does the one meter per residence apply in this situation? R: Yes, I've heard of the practice of allowing multiple meters on single properties at multiple systems. The one meter per residence just means that a customer can't have two or more residences or businesses on a single meter. There is nothing that prevents a customer from having a separate meter just for their irrigation system. Assuming the meter is the standard size, residential 3/4” x 5/8” meter, you will use the same rate structure for the irrigation meters since the water is the same treated water that is being distributed by your system. However, if your homeowner needs a 1" or larger meter, then the requirements for non-standard service as outlined in Section F. of the TRWA Sample Tariff would apply, including an engineering study for each oversized meter. In addition to the cost of the meter installation as well as any upfront impact or buy in fees. The main billing consideration is normally that meters for irrigation purposes only are” typically” not charged a sewer bill and if your system provides sewer service this could reduce the overall revenue if enough of these meters are installed. Finally, it is also important to be clear with the applicant regarding how the drought contingency and water rationing requirements apply to the irrigation meter. There may be limitations that prevent using the meter when there is an outside water ban or other drought measures are in place. Q: Are we required to provide service to a location that has had service years ago if the road conditions to get to that location are in extremely poor condition now? R: The fact that the road is in poor condition is not a basis for failing to provide service. If the previous meter location is within the district’s boundaries and or CCN, Texas Water Code 14

Quench — November / December 2017

Section 13.250 requires any retail public utility that possesses or is required to possess a certificate of public convenience and necessity to serve every consumer within its certified area and render continuous and adequate service within the area or areas. The requirement to serve all customers in the CCN is further clarified in Public Utility Commission rule 16 Texas Administrative Code (TAC) Section 24.85(a) which requires every retail public utility to serve each qualified service applicant within its certificated area as soon as is practical after receiving a completed application. The rule goes further to specify that “except for good cause, at a location where service has previously been provided the utility must reconnect service within one working day after the applicant has submitted a completed application for service and met any other requirements in the utility’s approved tariff.” Your system is supposed to be maintaining that previously existing water main and meter tap already. Also, you should be flushing all dead-end mains at least one time each month according to the TCEQ rule 30 TAC Section 290.46(l). If the applicant owns all the land that includes the road in disrepair and thus this service is on a “private” roadway/drive, then the meter could be relocated to an alternative location on that person’s property that is readily accessed directly from the county, state or US Highway ROW. Upon request and prior to activation of service to this location, the applicant should be informed that if the road is not maintained to allow the system personnel proper access to monitor and maintain the meter, the meter may be disconnected according to the system’s service policies. The applicable sections of the policies should be provided during the application process and prior to the meter being reconnected/installed at that location so the applicant will know it is up to them to see that access is maintained to that meter location. Q: Most of our customers do not want to use the "membership transfer" method when they sell their property. They want a definite date for when they will no longer be responsible for water usage. They prefer to use the "Request for

Service Discontinuance" form and receive their membership fee refund. Can we or should we discourage this method for getting a meter into the new owner's name? The new owner pays a membership fee and completes all documents for membership. R: This question pops up from time to time. Membership Transfer or Request for Discontinuance are both valid options for the existing member to select. The existing owner can let the meter remain in service and have the membership be transferred as part of the real estate transaction or notify the WSC of the date they will no longer need any water service and the meter is to be locked or removed. This second process is cleaner for the system and the previous member because it closes that account on a specific date. Then, when the new owner takes final ownership of the property they have to contact the WSC to have the account set up in their name and complete all the necessary paperwork required to establish service. You are correct that when the previous owner elects to have service disconnected, the new member would be responsible to pay a membership fee, reconnect fee/service fee, easement filing fee (if the system charges for this) and possibly for a Customer Service Inspection if there has been any plumbing modifications at that property. The downside of this second option is that if the purchaser of the property has any delays in getting the ownership papers completed for the purchase of the property, they will not be able to get the water turned on until they can provide proof of ownership. They may want to begin some remodeling or clean up prior to the time the paperwork transfer is totally complete. One recent incident occurred when the system left the water on and available for the new owners to do this clean up, but then they refused to pay for the water used because they didn’t legally own the property until a couple weeks later. Meanwhile they continued to use the water because it was never turned off. That system now gets their previous owner to request the service be disconnected and the meter is locked until the new owner meets all the conditions for service to be established in their name, which may take several days or weeks.

also know that they are not paying for any past due bills left by the previous owner/member. For these systems, this is a much cleaner way for the system to keep track of when and who is actually responsible to pay the bill. Q: We have not had any sizable expense since 2006, but we are getting bids, etc. to drill a new well at an approximate cost of $80,000.00. We have the money, so we will not be financing this expense. My understanding is that under our capital improvement budget, we could take the cost, divide by 10 years and expense out in our budget at approximately $8000.00 a year. Is this correct? R: If the WSC has the $80,000.00 to pay for this new well and the board wants to do this, then there is no reason this can’t be done that I’m aware of. Now as to “expensing this amount out over 10 years” that is more of an accounting action to show it is depreciating at $8,000 per year. This may or may not be the right amount depending on the expected useful life of the well. As for the Capital Improvement Budget/Account being refunded, that’s determined by how much of each year’s revenue from water rates is being set aside for capital improvements for the future. If the current rates generate an extra $667.00 per month to fund the Capital Improvement Account, then at the end of the 10 years the system would have generated the full $80,000.00 which was spent this year for the new well. You’ll want to look at how your WSC calculates its rates, what line items are being put in the budget to justify the current rates and whether you currently use the normal annual depreciation figure from the CPA’s Audit as a guideline for setting funding limits on Special Reserve Accounts or SRAs. SRA is a term we’ve used at TRWA to describe accounts which are obligated to pay for certain new or reoccurring expenses. Continued on page 16

Many systems prefer and use the service discontinuance option because they don’t have to worry about whether the previous or new owner will be responsible to pay for water once the previous owner vacates the property. The new owners would Quench — November / December 2017 15

Continued from page 15

Some of the SRAs could be, but are not limited to: • Tank painting and repairs: tanks are typically repainted or coated every 10 to 15 years or so. • Well repairs and maintenance: this includes replacing the motor, cleaning the well or replacing items damaged due to lightening or other disasters that are not covered by insurance. • Pump and motor repairs and maintenance: this includes replacing or repairing existing pumps and motors that short out or quit working. • Line replacement or upgrade: funds should be set aside each year to replace either specific sections or maybe the entire distribution system due to chronic leaks and repetitive expenses along certain sections of the water system. • New well or other capital improvements such as additional storage tanks, larger distribution lines, looping of water lines, meter upgrade to AMR or AMI meters, or any other planned improvements needed for the system. Some systems put a new office in this lump of Improvements. I recommend reviewing your current accounting and budgeting practice to look at how the board needs to designate amounts of your revenue to accomplish the goal of replacing the $80,000 or even more if there are other projects your system needs to do.

Quench — November / December 2017

Political Action Committee Needs Your Support By Allison Kaminsky, Communications and IT Director, Texas Rural Water Association

his year’s Texas Rural Water Political Action Committee (PAC) fundraising campaign is already underway, and there are several ways you can help! TRWA has set a strategic goal to raise $50,000 for the PAC in 2018, which we aim to achieve through sponsorships, in-kind donations and through fundraising events at RuralWaterCon in April and our Training and Technical Conference in July. The Texas Rural Water PAC is the bipartisan state and federal political action committee of TRWA. PAC contributions are pooled to make impactful contributions to state and federal candidates in Texas — men and women who understand the issues facing water and wastewater utilities. The Texas Rural Water PAC Board reviews candidates' effectiveness, committee assignments and voting records to determine which ones to support. The first way you can support the PAC is by becoming a sponsor! Each year, TRWA members make individual contributions to the fundraising campaign. By contributing, you can affect the political process and ensure Texas rural water is fairly and effectively represented. PAC Sponsors will be able to display their pride in rural water with sponsorship gifts and will also receive recognition in Quench and at RuralWaterCon, to be held in Fort Worth on April 5-6, 2018. Those who contribute by March 15 will also be printed in the RuralWaterCon official program! Sponsorship levels and gifts are as follows: Gold Level: An individual contribution of at least $300 - LED 2-Cell D Maglite® Flashlight Silver Level: An individual contribution of $200 to $299 - 32 oz. Thermos with Handle Bronze Level: An individual contribution of $50 to $199 46-inch Arc Umbrella with Collapsible Cove

By law, only contributions from individuals may be used by the PAC; corporate or district contributions are prohibited by law to be used for this purpose. Suggested contribution amounts are guidelines, though any level of contribution is appreciated. Individuals may legally contribute up to $5,000 per calendar year. To make a contribution, please visit our website at www.trwa.org and fill out our online contribution form, or you may download a form and mail it with a personal check payable to the Texas Rural Water PAC to 1616 Rio Grande, Austin, Texas 78701. The second way you can support Texas Rural Water PAC is by making an in-kind donation to be featured at the RuralWaterCon PAC auctions. A silent auction will be held throughout the convention in the exhibit hall, and a live auction for premium items will be held Wednesday, April 4, in conjunction with the Welcome Reception. We encourage members to donate unique and locally sourced items for the auction. If you would like to donate an item, please either send it to the TRWA office, c/o Texas Rural Water PAC, 1616 Rio Grande St., Austin, Texas 78701, or you may drop your donation off at the PAC booth when you arrive at the convention. All donations are appreciated. The third way you can show your support is by attending our PAC fundraising events! If you’re traveling to Forth Worth for RuralWaterCon 2018, join us at Alpine Shooting Range on Wednesday afternoon, April 4, for a fun-filled sporting clays and networking event. All registration fees paid with a personal form of payment will go toward the PAC. Read more about this event on page 7! The Texas Rural Water PAC's strength lies in the involvement of water professionals like you. By pooling your contributions with those made by hundreds of other TRWA members across the state, we can make the voice of our industry in Texas even stronger. Join the Texas Rural Water PAC team and help us secure the future of Texas Rural Water!

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Financial Best Practices for Water Utilities By Hunter Hook, Senior Relationship Manager, CoBank

anaging the financial health of a water utility appears deceptively simple at first glance. You charge a rate that covers the operating costs of the utility and covers debt service at a level that keeps your lender happy, and you’re done. Maybe add in a little extra to cover those wet years, and you’ve done your job, right? Unfortunately, that’s not the case. Keeping a water utility financially healthy isn’t just about managing for today. As a general manager or board member, you have a responsibility to manage the utility in a way to ensure that your community has clean and affordable water for generations to come. That responsibility can add a good deal of complexity to your role as a steward of your utility’s financial health. It’s helpful to step back and think about what services you are actually charging for. Many consumers incorrectly assume that their monthly bill is for the water they used. In actuality, what they are mostly paying for is the access to that water. The vast majority of a water utility’s expenses go towards pumping and purchasing a sufficient amount of water to supply the community, and then transporting that water throughout the community. That is especially true for rural water systems, where customer density can be incredibly low. The good news is that once you’ve drilled the wells, built the treatment plant and laid the transmission pipe, these assets can have useful lives of 20 to 50 years (and sometimes even longer). And the even better news is that most of the people reading this don’t have to solve the conundrum of how to fund the construction of a water system before it has rate payers. Most of you aren’t trying to start a new water utility; you’re managing an established rural water system. That just leaves the unenviable task of being prepared to replace existing facilities when that becomes necessary, and planning for expansion (or contraction) of your utility. Capital Planning Capital planning is, at its core, an exercise to determine how long your current facilities will last. Are they sufficient to serve your community, now and into the future? How will you pay for their 18

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replacement and expansion? Water utilities also have to determine how much water they will need and where they are going to get it; depending on how abundant water is in the area, this can add a little complexity or a massive amount of complexity. How a utility goes about capital planning really depends on the situation. If your utility has abundant access to clean water and is in a stable growth situation, you can probably address capital planning in a fairly nonchalant manner. This might include discussing it at an annual board meeting and setting up adequate reserves for replacing existing facilities in your current rates. If you find yourself managing a water utility in a high growth area with limited access to water (let’s say central Texas…), you have a whole different situation on your hands. In this situation, you should probably engage the help of a professional rate consultant or capital planner. They can help you forecast future demand and the costs of meeting that demand, while also helping you charge a fair rate today. The Replacement Capex Dilemma Deciding how to cover replacement capital expenditures (capex) is one of the more challenging aspects of capital planning, because you have to determine how much of the cost of a future benefit will be paid for by current rate payers. If you only include a portion of the replacement cost in your current rates, you will need to find other funding to bridge the gap between the cash you have reserved and the cost of replacement, which likely means debt. The same concept goes for expansion capex. There, however, the dilemma is lessened, because the utility is able to cover some of the cost of expansion via connection fees on new taps. One sensible plan is to build depreciation into your rates, including an inflation adjustment annually (generally between 1 and 3 percent). You will likely have to use debt to bridge the difference between depreciation and actual replacement cost (especially if you are getting a late start), but the cost of that debt will be significantly less than if you funded the whole project with debt.

Since this will leave your utility in a better financial position, you’ll get a better rate. And you’ll be borrowing a lot less money, so your interest expense will be a lot less as well. Debt Funding Sources Government Funding As a rural water utility you have access to a few enormously helpful sources of funding. You likely have USDA to thank for the system you are now managing. I say that because USDA (or prior to 2006, the Farmers Home Administration) provided the startup funding for the vast majority of America’s rural water utilities. They did it with very low cost 40-year loans and with very generous grant funding. Fast-forward to today, and USDA is still a vital partner for rural water, still providing low-cost 40 year loans and grant funding. In addition to USDA, the Environmental Protection Agency (EPA) funds State Revolving Funds (SRFs), which also provide federally subsidized loans and loan forgiveness. Funding through JSRFs doesn’t usually go out 40 years, and rates vary from state to state. The SRF for Texas is the Texas Water Development Board (TWDB). Depending on your time frame and the scope of your project, TWDB is potentially a great choice. Private Funding Private funding sources vary, from your local community bank to large national banks to CoBank/ Farm Credit. Each choice has its unique strengths and weaknesses. All of these choices will provide quicker access to funding but will, to varying degrees, have higher interest rates and have terms and conditions that don’t apply to funding from USDA or TWDB. Commercial banks, regardless of size, take deposits and then lend that money back into the community at a premium. The downside is that a bank’s funding is fairly variable, which makes it difficult for them to provide fixed rates for longer than five years. If they did, there is a real risk that the cost of the money they have lent will be more than the interest paid back. There are ways of getting around this, e.g., derivatives, CD secured loans, Federal Home Loan Bankbacked loans. But the complexity of the arrangement ratchets up quickly. On the plus side, you will likely be able to

prepay the loan at any time. CoBank is a cooperative and a member of the Farm Credit System. Unlike commercial banks, which lend out depositors’ assets, CoBank sources its funding by issuing Farm Credit Bonds. These bonds can be as long as 30 years, which allows CoBank to provide a fixed rate to water utilities for up to the same amount of time. The downside of this interest rate certainty is that if you want to prepay the loan, you may have to pay a penalty that compensates the owner of the Farm Credit Bond for the lost income caused by the prepayment. Dealing with Today After hearing all of this, it might seem like the key to the prudent financial management of a water utility is planning for the future. But that doesn’t help if your utility is already struggling with funding for its future, or maybe didn’t hit the bulls-eye with its forecast. So what should you do if you are in that situation? Begin with a thorough analysis of your current water rates. Are you only covering today’s obligations and not preparing for tomorrow? Start increasing rates to account for that. It doesn’t have to happen all at once - in fact, rate payers seem to appreciate gradual rate increases far more than large one-time increases. Put together a plan on how much and when rates will be raised, and what the increase is intended to pay for. Share your plan with your community. An informed rate payer is usually a happier rate payer. As you build up your rates, consider a line of credit as a stopgap funding source. In a perfect world, you would have enough cash on hand to handle any emergencies that pop up, and once you’ve implemented your rate plan, you eventually will. But in the meantime, consider getting a line of credit large enough to handle anything that might require immediate attention. For a small utility, $50,000 is probably enough. If you manage a larger utility (one thousand taps or more), you will likely need more than that. Continued on page 20

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Continued from page 19

The benefits of a line of credit are quick access to cash and interest-only payments. Lines of credit typically renew annually, so you can decide whether you want it on a year-by-year basis or otherwise. Government funding sources don’t offer lines of credit, but any of the private sources of funding (including CoBank) offer them. How to Use Your Audit Now that we’ve walked through capital planning where to find debt and dealing with today, it’s time to talk about your annual financial report card: the audit. Most water utilities conduct an annual audit. If you don’t have a current one, you should seriously consider it. Most sources of debt funding will require you to have one, but that’s not the only purpose. It can be very beneficial to have an impartial outsider come in and look at your books. Fraud detection is one important reason, but an audit will also help keep your books clean, and provide you as a manager with an independent appraisal of your utility’s financial health. The trick is knowing what to look for when you read the audit. The first step is to read the auditor’s opinion, which is always at the very beginning of the audit. The auditor’s opinion will be one of two options: unqualified or qualified. Almost all opinions (especially in the water industry) will be unqualified, meaning that the auditor has found no reasons to not fully stand behind the audit. A qualified opinion is a much bigger deal. It means that the auditor has found something at your utility that forces them to qualify the opinion. It could be that they are concerned about the financial health of the utility. It could be that they found major independence and financial control issues. It could be that they found fraud. No matter what, a qualified opinion is a big deal. After you’ve gotten through the auditor’s opinion, it’s time to look through the balance sheet and income statement. The balance sheet runs down your utility’s assets (what you own), liabilities (what you owe) and equity (the gap between the two). Balance sheets are important because they provide an indication of how financially stable your utility currently is, and how much ability it will have to absorb unplanned events. As a board member or general manager, the key 20

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factor you should pay attention to is the amount of debt compared to total capitalization (debt to cap), which is a ratio you will see if you borrow from private debt providers. The calculation goes like this: (Total Debt) (Total Debt + Total Equity) Most utilities should target a ratio between 55 percent and 75 percent debt to cap. This allows for plenty of equity to absorb unexpected events and keeps interest expenses lower. Access to low interest rate debt and long repayment terms (such as you can get from USDA) can allow you to carry more debt, but remember that even low interest rates can turn out to be a lot of money over 40 years. The income statement will show you how much cash over or under your expenses your utility collected the previous year. If your utility has included depreciation in rates, or is reserving for a big project, you will likely have positive net income for the year. If your utility doesn’t include depreciation in rates or isn’t saving for a project, net income will likely be negative (whether you do or not, auditors consider depreciation a real expense). The key factor you should pay attention to from an income statement is the debt service coverage ratio, which all providers of debt funding will consider. The ratio varies depending on who you work with, but 1.1x is generally the lowest threshold you should expect. The ratio is calculated differently by different debt providers, but this will get you in the ballpark: (Net income + interest expense + taxes + depreciation + amortization) (current portion of long term debt [found on the balance sheet] + interest expense) A number over 1.0 means that your utility is generating enough cash flow to service principal payments but nothing more. A number under 1.0 indicates potential payment issues. Mitigating factors include a large cash balance on the balance sheet, a significant unexpected expense, and much lower water usage than expected (i.e., wet years). After the income statement comes the statement of cash flow, which is useful in that it strips out a lot of the noise from the income statement and

balance sheet and shows you if your utility actually generated or lost cash. But be warned that these can be difficult to read. The final portion of the audit is the notes to the financial statements, where the auditor explains everything that was summarized in the financial statement that preceded it. A lot of it is boilerplate language, but I encourage you to read it every year. If you get a call from your debt provider on your audit, it’s likely because of something that is or isn’t in the notes. A Final Word Managing the financial health of a water utility is much harder than most of your customers realize. But there are a small number of actions you can take to ease some of that hardship. Put together a plan for what you’re going to need and how you’re going to pay for it; then share it openly. Build good relationships with all the providers of debt - that will make things easier when it’s time to finance a portion of your next project. Have an audit done annually and read it carefully when it comes. Good or bad, it’ll give you an indication of what you need to do to deal with today - and how to plan for tomorrow. While this is a significant responsibility, it doesn’t have to be overwhelming. The ideas and practices outlined here can go a long way toward helping anyone ensure the success of a water system, both now and into the future.

Hunter Hook is a senior relationship manager in the Water and Community Facilities banking division at CoBank. CoBank is a $128 billion cooperative bank serving vital industries across rural America. It provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 70,000 farmers, ranchers and other rural borrowers in 23 states around the country.

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TRWA to Offer New GIS Mapping Services By Ben Hill, Diamond Maps and Jason Knobloch, TRWA

n December, the TRWA Board of Directors decided to pursue offering a new GIS mapping service to members in 2018 if there is enough interest. TRWA will be sending out an online survey and will be promoting the new service proposal at RuralWaterCon in April. Whether or not your system would like to utilize a new GIS mapping service through TRWA, if it has been a few years since you looked into it, it may be time to reconsider mapping your system. What follows are eight reasons why more systems than ever before are adopting GIS technology. 1. You are going to retire someday: GIS is a great tool for cataloging the thousand things you know that could be lost forever. This information is a lot more than just the locations of lines and buried valves. It includes little details like, “that valve at the bottom of the hill is broken in the ‘on’ position.” Or “you need a special tool to remove the meter at 301 Main St.” Having a single place for everyone to record notes and pictures is invaluable for retaining knowledge as your staff changes. 2. Doing locates: In a recent survey of several rural water systems, people were asked what they use their GIS for. The number one answer was “doing locates”. When called out to mark the location of sewer and water lines, you just pull up your map on your phone and with the help of the background aerial photography or your phone’s GPS, you can quickly see which side of the road the lines are on plus the material and size. You still have to use your underground detection devices, but the search area will be much smaller. 3. Start a valve exercising program: Another common response to the same survey was people saying that they finally started a valve exercising or hydrant flushing program once they had GIS because now their guys had a place to keep track of where they had worked. 4. Easier to use: Until recently, although a useful tool, GIS has been complex to use. Some operators wear so many hats that they don’t have time to become an expert at some new technology. But while we weren’t watching, GIS software has gotten easier to use as industry specific applications are popping up. 22

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Newer GIS software applications, like Diamond Maps (diamondmaps.com), are piggy backing off of familiar technologies like Google Maps. Web-based GIS solutions don’t even require you to install or backup anything. You just log in from any computer, tablet, or phone. 5. Less expensive: Up until recent years it was unlikely you could adopt GIS without paying tens of thousands of dollars upfront for software alone. Now many GIS applications are sold for a small subscription as low as $20/month with no up-front purchase price. Some applications like Q-GIS are even free. As for hardware, many are just using the phone or PC they already have. A sub-meter GPS receiver can be purchased for about $2,000 or you can even rent one. 6. Take control: Many of these advances have moved the control of GIS from the engineer’s desk to where it belongs in the hands of the water and sewer operators. Now when you dig up a line and discover that the map had it in the wrong place, you just change it right there in the field. Before you might have turned in a change request to your engineer and waited for an update on next year’s map. 7. Streamline funding: It is much easier to make your case for grants and loans when you can demonstrate that you know the current state of your system. Your GIS can put you ahead of other systems who are competing for those same dollars by demonstrating that you know what you are going to spend it on. 8. Help Is available: Starting this year, TRWA plans to offer a mapping service. For a reasonable charge, TRWA will be able to GPS map your water or sewer system and set you up with a turn-key GIS. If you are interested in knowing more or would like to start this service in 2018, contact Jason Knobloch at Jason.Knobloch@ trwa.org or at 512-472-8591.

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Keep It Legal Answers to Members’ Questions by TRWA's Legal Department

If our district decides to hold our board meetings at a meeting location outside the district’s boundaries, are there any special requirements to notify our customers?

is cumbersome and vague and they want to come in and look at all of our files. What do we do? Also, what if we have already provided this information in the past year to the requestor’s attorney?

A: This issue is addressed by Sections 49.062 and 49.063 of the Texas Water Code and allows districts to hold meetings outside the district, but requires additional notice. If the board establishes a meeting place outside the district, it must file a copy of the resolution establishing the meeting location with the Texas Commission on Environmental Quality (TCEQ) and must publish notice of the location in a newspaper of general circulation in the district. If the board does not designate a location that provides residents a reasonable opportunity to attend meetings, Section 49.062 provides the opportunity for five electors to petition the TCEQ to designate a location that is reasonable available to the public to attend.

A: The Texas Public Information Act allows you to ask a requestor to clarify a request for information if the request is unclear. Section 552.222(b) provides that if a large amount of information has been requested, the governmental body may discuss with the requestor how the scope of the request might be narrowed, but the governmental body may not inquire into the purpose for which information will be used.

In addition to the Section 49.062 notice requirements, Section 49.063 was amended in 2017 to require that notice for district meetings must comply with the Open Meetings Act except that if the meetings are held outside the district, the district must post notice of its first meeting of each calendar year at a public place within the district specified by the board rather than at the administrative office within the district.

When the system requests clarification or narrowing of an unclear or overbroad request, the ten business day period to request an attorney general ruling is measured from the date the requestor responds to the request for clarification or narrowing.

In addition to the regular Open Meetings Act requirement to provide the location, date and time of the meeting, TCEQ has advised including language in the meeting notice that tracks Section 49.062, informs the public where to file and of the filing fee. Based on this recommendation, here’s additional sample language to include: Five electors may petition the Texas Commission on Environmental Quality (TCEQ) to designate another meeting location. Requests to TCEQ should include an explanation why the district’s current meeting location deprives residents of a reasonable opportunity to attend district meetings. Petitions should be sent to Chris Ullmann, Manager, Districts Section, MC 152, TCEQ, P.O. Box 13087, Austin, TX 78711-3087. TCEQ’s filing fee is $100. Q: There has been a request to come look at our system’s records, however the request

The systems should send the request for clarification by certified mail. It must include a statement that if the system does not receive a response to the request for clarification within 61 days, the original request for information will be considered withdrawn in accordance with Texas Government Code Sections 552.222(d) and (e).

Section 552.232 provides for the handling of repetitious or redundant requests. Under this Section, a governmental body that receives a request for information for which it determines it has already furnished or made copies available to the requestor, may respond by certifying that it has already made the information available. The certification must include a description of the information already made available; the date of the governmental body’s receipt of the original request for the information; the date it furnished or made the information available to the requestor; a certification that no changes have been made to the information; and the name, title, and signature of the officer for public information, or his agent, who makes the certification. With regard to the request to come in and look through the files or documents, the requestor does have a right to look at the all of the public documents with certain limitations. Section 552.225(a) provides Continued on page 26 Quench — November / December 2017 25

that a requestor must complete the inspection within ten business days after the date the governmental body makes the information available or file a request for additional time, or the request will be considered withdrawn. A governmental body is required to extend the inspection period upon receiving a written request for additional time. If the information is needed by the governmental body, the officer for public information may interrupt a requestor’s inspection of public information. When a governmental body interrupts a requestor’s inspection of public information, the period of interruption is not part of the ten business day inspection period. A governmental body may adopt policies that are consistent with the Public Information Act for efficient, safe, and speedy inspection and copying of public information. (Gov’t Code § 552.230; see Attorney General Opinion JM757 (1987) (governmental bodies may deny requests for information when requests raise questions of safety or unreasonable disruption of business)). Q: One of our adjoining landowners approached the board about selling him a small strip of land we own. The property is an unused part of the district’s plant property and the board is interested in selling it. Do we have to put it out for public sale? If not, can I put it on this month’s agenda to declare it as a surplus property and then on the same agenda vote to sell it? We just want to make sure that we’re above board on this. A: The sale of real or personal property by a district is addressed by Texas Water Code Sec. 49.226, which allows any personal property valued at more than $300 or any land or interest in land owned by the district which is found by the board to be surplus and is not needed by the district to be sold by public or private sale. Subsection (b) of this law also allows for abandonment of certain property without payment under certain conditions. The issue of whether property can be sold as a private sale was addressed by the Texas Attorney General in 2005 in Attorney General Opinion GA0371. The board must first hold a meeting and discuss and vote that the property is surplus and not needed by the district. After that, the sale can be done as a private sale, without going through the public bidding process. With regard to timing, there is no required waiting period. The board can vote to declare the property surplus and then vote to sell it. These issues should be discussed separately – first whether the property is surplus and then the sale, including how the district determined the value of the property. 26

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Regarding value, Texas Water Code Section 49.226(a) provides that the property must be exchanged for like fair market value. Also, in connection with the sale of surplus land, the board may impose restrictions on the development and use of the land which would also need to be discussed at the meeting. Finally, Under Section 551.072 of the Texas Open Meetings Act, the board may discuss the sale of property in executive session if deliberation in an open meeting would have a detrimental effect on the position of the water system in negotiations with a third person. However, if discussion in an open meeting would not be detrimental to the district’s negotiations, a closed session would not be permitted. Also, the board cannot cut a deal in private, without public input or debate. Q: Can the spouse of an existing board member run for a board position on same WSC Board? Our bylaws do not address this issue and our system has a hard time getting nominees. If so, can they both be officers? A: The specific laws for WSCs regarding qualifications for election or appointment as a director are found in Texas Water Code Sections 67.005 and 67.0051 and more generally in Business Organization Code Sections 22.203 and 22.206. These laws point to the bylaws and articles of incorporation regarding any limitations on serving as a director so you will need to review these documents for your system to see whether they address this issue. Assuming that your bylaws and articles do not address whether a husband and wife can both serve on the board at the same time as you note in your question and based on our research, the law does not prohibit the practice and thus the system can legally allow both to run and serve. However, we recommend against this practice and amending your bylaws accordingly for the reasons explained below. Directors are elected to the board of directors to exercise their own independent judgment and when spouses serve on a board together, there is risk that they would not be doing so. If one spouse has a lot of influence over the other spouse, for example, it may appear to the members that one of the spouses is not exercising independent judgment. The challenge is making sure that each spouse is acting in a fiduciary manner, exercising the required duty of care. Also, under Business Organizations Code

Section 22.160, each member of the corporation is entitled to one vote. This practice is reflected in TRWAâ&#x20AC;&#x2122;s sample tariff. This can be limited, enlarged or denied by the certificate of formation or bylaws of the corporation, so you will want to look at those documents. Although board member actions are distinguishable from member votes on system-wide issues, it may appear to the other members that having both a husband and wife on the board at the same time gives that membership a greater say in the workings of the corporation. That being said, if your membership votes for both husband and wife, it is fully within their discretion to do so. The law regarding officers of the board is found in Water Code Section 67.006 and does not prohibit a husband and wife from becoming officers. That being said, we would not recommend that both husband and wife serve as officers to avoid the same issues discussed above.

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Quench â&#x20AC;&#x201D; November / December 2017 27

TRWA to Produce Consumer Magazine in 2018 By Kelsey Copeland, Communications Specialist, TRWA TRWA is developing a new service for TRWA members that would provide a direct-to-consumer magazine for participating utilities. This magazine would be used to communicate with and educate utility customers with the goals of building public support for the local water utility and for the industry as a whole. The model would be similar to the electric coop magazine but for the water industry. Subscribing systems could choose from a standard eight-page version with universal content, or a customized 12-page version that would include universal content plus four additional customized pages with system content and branding.

s a x e T

on Tap

Benefits of Subscribing: Provide Industry Insight Educate consumers with content developed by TRWA’s legal, training and technical professionals. The editorial board assembled to determine magazine content will include these professionals in addition to subscribing system members. These articles will serve the ultimate purpose of educating consumers and decreasing the divide in industry comprehension. Maximize Your Resources

W in te r2

Simplify internal processes and outsource communications services. Our team will save you time and energy while producing a professional, quality, consistent and relevant product. Reduce your time spent on research and design and focus on what’s most important to you: informing your members. We will encourage all subscribing systems to join our editorial board to submit article ideas, contributions and feedback.

We have estimated Published in Partnership with production costs to be approximately $0.79 per piece (utility customer) for the standard version and $0.99 per piece for in Our Community the customized Also Inside: version. This includes Harmful Algal Blooms Include Key Messages production, mailing What Does a Superior and handling costs. Rating Mean for Your While this publication will include Water System All content would universal content designed to educate be driven by an and inform consumers, it will also Your Texas Rural Water News Source editorial board serve as a direct communication Texas Rural Water Association | www.trwa.org | (512) 472-8591 comprised of a avenue for systems. Customized representative of pages can be used to highlight your staff, system each subscribing system and key Association staff, accomplishments, local news and updates, provide and chaired by the TRWA Communications Director. notice of your annual meeting, and publish your CCR – Editing, arrangement, design, assembly and it’s all dependent on your goals and key messages! mailing would be conducted in-house by the TRWA The Communications team is currently building a Communications Department. list of systems that have committed to subscribe to this The TRWA Board has approved us to offer new service. If we receive enough commitments, we this service to our members if we can get enough plan to launch this publication in the third quarter of commitments to make it financially feasible for 2018. Interested systems may submit a commitment us to do so. Although we received a lot interest form by visiting www.TRWA.org/?consumer. If you at the Fall Management Conferences, we need have questions or would like to see a sample, firm commitments from systems in order to move please contact the Communications Department at: forward. editor@TRWA.org or by calling (512) 472-8591.

Investing

Quench — November / December 2017

TRWA Briefs Absentee Voting Ensures You Have a Voice in Elections

Texans Receive Utility Management Certification

All TRWA member systems should have already received their official TRWA election absentee voting packet in February. Since the Board voted to eliminate proxy voting in 2013, absentee voting is the only alternative way to cast your vote if you cannot do so in person at the April election. District caucuses will be held in conjunction with RuralWaterCon at the Omni Fort Worth hotel on the morning of April 6, 2018. If you cannot send a representative from your system to participate in your district caucus, please cast an absentee ballot to ensure your interests are represented.

Pictured above, L to R: North Texas Municipal Water District Employees: Billy George, Patrick Chadwick and Richard Farr; and William White, TRWA.

Official ballots (originals only) must be received at the TRWA office by 5 p.m. on March 30, or delivered in person at the Credentials Committee Booth in Fort Worth by 5 p.m. on April 4.

Congratulations to Patrick Chadwick and Richard Farr for receiving their Utility Management Certification! This program is designed to enhance the financial, managerial and operational effectiveness of drinking water and wastewater systems across the country and to create a national designation for qualified utility managers.

Please remember that your 2018 TRWA membership must be current by March 30 for your vote to count. Further, just as ballots cast in-person at convention need to be cast by a certified delegate, absentee ballots must be accompanied by a signed Delegate Certification Form to be valid.

TRWA Celebrates Kent Watson's 30 Years of Service at 49th Annual Convention

Election details and more detailed absentee voting procedures were included in your absentee voting packet. After you have reviewed these materials, if you still have any questions about the absentee voting process or the TRWA Elections, you may direct them to the TRWA Communications Department at (512) 471-8591 or editor@trwa.org. Please join us for a luncheon honoring Kent Watson (left) and his commitment to Rural Water for the past 30 years. We will also celebrate the 2017-2018 graduates of the Emerging Leaders program. Tickets can be purchased at www.trwa.org or by contacting meetings@trwa.org

Born into a farming family that didnâ&#x20AC;&#x2122;t have running water in their home has made Kent Watson appreciate how rural water has changed lives. Educated at Sam Houston State University, Watson soon earned both water and wastewater licenses from the State of Texas and began a career of operating, owning and managing water utilities that now spans over 40 years. For the last 30 years Watson has been the General Manager at Wickson Creek Special Utility District in Bryan Texas. Watson has served on the Board of Directors of the Texas Rural Water Association for 30 years and has never missed a Board Meeting. Watson was first elected to the TRWA Board in 1988 in Dallas. Watson has served on almost every committee and in every officer position on the Board, including four years as President of TRWA. Watson currently represents Texas on the National Rural Water Association Board of Directors and serves on its Executive Committee. Please join us Friday, April 6th at RuralWaterCon for a luncheon beginning at 11:30 AM to honor Kent Watson and recognize our 2017-2018 Emerging Leaders Program graduates. Quench â&#x20AC;&#x201D; November / December 2017 29

ClassifiedAds Angus Water Supply Corporation - Water Operator

Dog Ridge Water Supply Corporation - General Manager

Angus Water Supply Corporation has an open position for a full time Water Operator. Angus Water Supply Corporation is located 6 miles south of Corsicana off of Interstate 45.

Dog Ridge Water Supply Corporation (DRW) in Belton, TX distributes purchased water to approximately 1,500 customers in rural Bell County and parts of Belton. DRW is seeking a General Manager to provide guidance, oversight, and preparation for the future of this system.

Qualified applicants must be able to work in all weather conditions. The applicant must have a Class C Texas Drivers License and be able to pass a drug test and a criminal background check. Any past experience working for a water utility company would be a plus. Starting hourly pay will be based on past experience in the water utility field. Overtime will be paid after a 40 hour work week. Some weekends and after hours may be required. This position will be opened until filled. Applicants may pick up an application and submit a resume at Angus Water Supply Corporation 212 FM 739 in Angus Texas. You may mail a resume to Angus Water Supply Corporation 212 FM 739 Corsicana, Texas 75109, or any questions you may call 903-874-6773.

Advertiser Index

AIA Insurance Agency........................................... Page 6 Allied Tank Service........................................................13 Childress Engineers......................................................24 CoBank...........................................................................23 Daniel & Brown, Inc.........................................................7 Ferguson Waterworks...................................................24 HRM Land Acquisition Solutions...................................7 J.F. Fontaine & Associates...........................................27 KSA Engineers...............................................................13 M&M Tank Coating Co...................................................21 Maguire Iron...................................................................24 NewGen Strategies & Solutions...................................16 Pittsburg Tank & Tower Maintenance Co., Inc............27 Preload, LLC..................................................................23 Russell Drilling Co., Inc................................................16 Schaumburg & Polk, Inc...............................................21 Smith Pump Co., Inc. ....................................................24 Tank Connection............................................................16 Texas Aquastore............................................................13 30

Quench â&#x20AC;&#x201D; November / December 2017

Applicants must have a proven track record in management, excellent written and verbal communication skills, ability to direct both field and office personnel, have working knowledge of H.R. requirements and workforce regulations, prepare and administer budgets, forecast short and long range plans, able to interact with Engineers, C.P.A.â&#x20AC;&#x2122;s, builders and contractors, regulatory agencies, and a board of directors. Have a first in-last out, lead by example attitude. A background in water distribution, T.C.E.Q. license (or license-able) at a C level (minimum), and management experience are definitive requirements. We offer competitive salary (D.O.E.), health insurance, paid sick leave, holidays and vacation. Resumes may be submitted to Water3258@yahoo.com

Plan Ahead CONFERENCES: April 4, 2018

TRWA/USDA Rural Development Engineering Conference, Omni Fort Worth

April 5-6, 2018

RuralWaterCon 2018, Omni Fort Worth

June 7-8, 2018

Office Professionals Conference, Westin San Antonio Riverwalk

July 11-12, 2018

Technical and Training Conference, San Luis Resort and Galveston Island Convention Center

OPERATOR TRAINING COURSES: Water Credit Courses

Basic Water Works Operations: Argyle, February 20-22  Harlingen, March 27-29  Mesquite, April 17-19  San Antonio, May 8-10  Lorena, May 22-24  San Antonio, June 12-14 Groundwater Production: San Antonio, February 27-March 1  Argyle, February 20-22  San Antonio, September 11-13 Surface Water Production I: San Antonio, March 6-8 | Surface Water Production II: San Antonio, April 24-26 Water Distribution: Greenville, April 24-26  San Antonio, May 22-24  Harlingen, June 12-14  San Antonio, August 28-30 Water Laboratory: San Antonio, August 14-16  Coldspring, August 28-30  Harlingen, October 23-25 Water Sampling & Field Analysis: San Antonio, June 19

Water and Wastewater Credit Courses

Chlorinator Systems and Chemical Handling: Texarkana, March 20-22  Coldspring, May 8-10  Argyle, July 17-19 Chlorine Use, Handling, Safety SCBA: San Antonio, June 20 Customer Service Inspections: Harlingen, April 17-18  San Antonio, March 13-14  San Antonio July 31-August 1  Harlingen, October 9-10 Pump and Motor Maintenance:  Lorena, February 13-15  San Antonio, July 24-26,  San Antonio, November 6-8 Valve & Hydrant Maintenance: Greenville, March 6-8  San Antonio, April 10-12  Harlingen, July 31-August 2  San Antonio, October 16-18 Water Utility Calculations:  San Antonio, March 20-22  San Antonio, June 5-7,  San Antonio, October 9-11 Water Utility Management:  San Antonio, July 17-19  San Antonio, October 23-25 Water Utility Safety: Coldspring, March 13-15  San Antonio, October 2-4

Wastewater Credit Courses

Basic Wastewater: Dayton, February 12-15  Harlingen, May 1-3  San Antonio, September 25-27 Operations of Activated Sludge Plants: San Antonio, February 13-15 Wastewater Collections: San Antonio, February 21-23  Harlingen, February 27-March 1  San Antonio, September 18-20 Wastewater Laboratory: San Antonio, June 26-28 Wastewater Technology: San Antonio, August 20-24 Wastewater Treatment: San Antonio, May 1-3

Public Funds Information Act Training Initial and Renewal: Fort Worth, April 4

Quench — November / December 2017 31

1616 Rio Grande| Austin, TX 78701-1122 Telephone: (512) 472-8591 | Fax: (512) 472-5186 www.trwa.org

RuralWaterCon 2018

Fort Worth, teXas April 4 - 6 at the Omni Hotel