Quench — November/December 2015 by Texas Rural Water Association

2016 Funding for the SWIFT Program Now Open

Also Inside: Save the Date for RuralWaterCon 2016 Discounted Equipment Available through Federal Surplus Property Program

November / December 2015 www.trwa.org

TRWA Today

TRWA Board of Directors

Officers

Leadership Team Lara Zent Executive Director and General Counsel

Larry Bell Technical Assistance Director

Clay Hodges President Hunt (Dist. 7)

Celia Eaves Environmental Services Director

Pat Allen Vice President Guadalupe (Dist. 9)

Janice Gibbs, CPA Finance Director Allison Kaminsky Communications Director Angela Russell, CMP Member Services Director

Michael Vollmar Professional Development and Brian Macmanus Secretary Training Director Cameron (Dist. 6)

Office Staff

Barry Miller Treasurer Gonzales (Dist. 5)

James Morrison Immediate Past President Walker (Dist. 13)

Pam Cantrell Accounting Support Specialist

Angela Harris Member Services Coordinator

District Directors

Finley Barnett Taylor (Dist. 1)

Chris Boyd Denton (Dist. 3) Delores Goode Lampasas (Dist. 4) Charles Beseda Hill (Dist. 8)

Kent Watson Brazos (Dist. 10)

Kevin Spence Franklin (Dist. 11)

Vickie Armstrong Kaufman (Dist. 12)

Vacant District 14

TRWA is dedicated to helping directors, managers and operators provide efficient service and clean, safe drinking water to their customers. Through on-site technical assistance, education and information exchange, TRWA helps its members better meet their needs as well as the needs of their customers. 2

Quench — November/December 2015

Pauline Word Legal Assistant

Thomas Acker, Jr. Instructor

Michael Beadnell Instructor

Ross Brookbank FMT Specialist

Alex Eaves Wastewater Technician Paul King Circuit Rider Len Klandrud Instructor Steven Mindt FMT Specialist George Patterson Instructor

Charles Perkins Circuit Rider

Refugio Rodriguez FMT Specialist

Established in 1969, the Texas Rural Water Association (TRWA) is a statewide nonprofit trade association with an active membership consisting of more than 750 nonprofit water supply corporations, special utility districts, municipal utility districts, small-town water departments, investor-owned utilities and individual members. 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.

Jeramie Judd Training Support Specialist Deborah McMullan Assistant Projects Manager

Field Staff

Bruce Alexander Medina (Dist. 2)

Melody Bennett Project Support Specialist

Anne Ruthstrom Source Water Protection Specialist

James Smith Circuit Rider

William White Circuit Rider

Contact the Editor Your comments and opinions, as well as editorial and advertising inquiries, are welcomed and should be directed to the Editor, Allison Kaminsky, at (512) 472-8591 or at editor@trwa.org. Find TRWA on Facebook “Like” our Page and join the conversation at: www.facebook.com/TexasRuralWaterAssn

Follow TRWA on Twitter! Find us at @TexasRuralWater for all water industry news and @TRWALegislative for legislative updates relevant to you!

Features:

The TRWA Membership Drive is Now Underway

Save the Date for RuralWaterCon 2016

By Angela Russell, Texas Rural Water Association Have you renewed your membership for 2016 yet?

By Allison Kaminsky, Texas Rural Water Association TRWA’s annual convention is set for March 22-24, 2016 in Fort Worth!

9 27

In Every Issue: Letter from the Executive Director

Keep it Legal

Advertiser Index

Plan Ahead

TRWA’s Calendar of Events

Discounted Equipment Available through Federal Surplus Property Program

By Colleen Zarek, Texas Rural Water Foundation This program is a great opportunity for utilities to obtain equipment at an affordable price.

By John Padalino, Kemp Smith LLP This article is the third in a five-part series focused on sustainable utility management, centering on the fifth and sixth principles.

5 10

Answers to your legal questions

Art of Sustainability: 10 Principles of 14 The Sustainable Utility Management

Ask Larry

Answers to your technical questions

Effectively Managing Inventory Space and Costs

By David Wheat, Krausz USA Five tips to help with the balancing act between costs and space while ensuring you have the repair products you need.

O n the C over : Cypress Creek P hoto C redit : Riley Engemoen, Pedal South; Rural Texas Water Category Finalist in TRWF PH 2OSTREAM 2015

2016 Funding for the SWIFT Program Now Open

Support the Texas Rural Water PAC

From the Hole

TRWA Says Goodbye to Two Longtime Employees

By Bech Bruun, Texas Water Development Board The application period for the second roud of SWIFT program funding opened on December 1, 2015.

The Texas Rural Water PAC funds support state and federal candidates who will take a stand on issues that matter to Texas rural water. By Michael Beadnell, Texas Rural Water Association One of TRWA’s new instructors shares his tales from the road teaching classes at host water systems.

In Memoriam: Raymond Curtis; TRWA Instructor Len Klandrud Retires

TRWA Briefs

Don’t Miss Early Bird Prices on Eminent Domain Filing Service; Now Accepting Applications for 2016 TRWF Scholarships; Absentee Voting Ensures You Have A Voice in TRWA Elections; TRWF PH2OTOSTREAM Photo Contest Deadline Extended. Quench — November/December 2015

Quench â&#x20AC;&#x201D; November/December 2015

Letter from the Executive Director

The TRWA Board of Directors met the first week of December and decided on many important issues for 2016, including approving the Association’s budget, setting legislative priorities for the 2017 session and promoting me to be TRWA’s new Executive Director. I am so honored and excited about the opportunity to serve the Association and our members in this capacity. I welcome your ideas about new programs you would like to see TRWA offer and how we can better serve you.

In 2016 we will be working on three legislative initiatives for the 2017 session. It’s important to start as soon as possible educating our state representatives and senators on these issues, and we need your help. Here are suggestions from our lobbyists, former Senator Buster Brown and Jennifer Brown, on ways to reach out and get to know your local representatives and senators: • • • • • • • •

Invite them to visit your water system Attend a campaign event Invite them out for coffee If you see or read an article about them, cut it out and send it to them with a note Place their campaign sign in your yard Volunteer for their campaign Go online and sign up for their email newsletter and updates Organize a small fundraising event (coffee/breakfast) for them

Here are our three legislative initiatives we would like you to discuss with your representatives and senators: •

•

Certificate of Convenience and Necessity (CCN) Decertification—Senate Bill 573 passed in 2011 with good intentions meant to give an easy out to landowners and developers who were in CCN areas where the service provider was unable or unwilling to provide service. However, there have been unintended consequences that have hurt both consumers and utilities by undermining utility planning and investment efforts. Systems that have made significant facility investments and have full capability to serve their CCN areas are being decertified. In many of these cases, cities are forcing developers to decertify by withholding approvals for district creation, plats, permits, etc. In addition, the law was intended to compensate or make decertified systems “whole.” Of the 83 systems decertified, only a handful have received any compensation. Groundwater permitting—Many groundwater districts are basing groundwater permit limits on the amount of land an applicant owns. This system does not work for a retail public utility that is required to serve an entire community from a well site that may only be an acre or less in size. TRWA attempted to fix this law in 2015 and will continue to work on this issue to ensure rural communities have the groundwater resources they need. Assistance with obtaining Texas Water Development Board funding—TRWA was successful in getting language into the law a few sessions ago giving TWDB authority to contract for hands-on assistance to rural systems in obtaining and using TWDB money. Although this program is in the law, it hasn’t been funded. TRWA would like to work with the legislature to obtain funding for this program that would benefit rural communities.

“It’s important to start as soon as possible educating our state representatives and senators on these issues, and we need your help.”

I wish you and your families a very happy holiday season! I look forward to working with you in 2016! Best regards,

Lara Zent Executive Director and General Counsel Texas Rural Water Association

Quench — November/December 2015

The TRWA Membership Drive is Now Underway By Angela Russell, Member Services Director, Texas Rural Water Association

t’s membership renewal time at TRWA! Have you renewed your membership for 2016 yet? If you are a current TRWA Member, you will have received your renewal statement in the mail. If you have not received your renewal statement, please email membership@trwa.org. Please renew by March 18, 2016 in order for your system to be eligible to vote at TRWA RuralWaterCon in March. You may have noticed a slight increase in your dues from last year. The TRWA Board voted to increase dues in order to cover the costs of inflation, so we can continue to provide you with the best possible support and services in the years to come. The last time dues were raised was four years ago. TRWA Members receive many benefits for their membership fees, including: •

•

Lobbying: Members interests are represented at the state and federal level by TRWA’s lobby team who work to influence legislative and regulatory issues that impact water systems. Legal Services: TRWA employs a full-time attorney and a paralegal who respond to questions from member systems relating to legal issues faced by water utilities. TRWA maintains a legal defense fund to assist members with representation regarding issues that have a statewide impact. Education and Training: Members benefit from TRWA’s comprehensive training program for water and wastewater operators, managers and board members. Most of our courses are approved for TCEQ operator license credit. TRWA’s operator certification program provides training for obtaining or renewing state water and wastewater operator licenses. Technical Assistance: Field representatives of TRWA provide training and onsite technical assistance to TRWA members on issues such as preventative maintenance, leak detection, water audits, rate analysis, budgeting and management issues. TRWA members also receive discounts to RuralWaterCon, the Technical and Training Conference, Office Professionals Conference, Water Districts Conference and Fall Management Conference, as well as a subscription to Quench, TRWA’s award-winning magazine. Quench — November/December 2015

Win A Kindle Fire!

Systems that renew their membership online by February 26 will be entered to win a Kindle Fire! Go to www.trwa.org, log in to your system profile and click on the red “Renew Your Membership Now” banner. If you need assistance logging into the website for the first time, please email: membership@trwa.org. In addition to utility membership, individuals employed by or serving as a director of a TRWA member system can also sign up for a TRWA individual membership. For a $60 annual fee, individual members receive a magazine subscription, legislative updates, and reduced registration fees for our conferences. Associate Members will have more opportunities to interact with systems at the 2016 conferences and receive recognition through additional event sponsorship opportunities. TRWA is dedicated to providing training, technical and legal assistance to our members. TRWA is proud to be one of the preeminent water and wastewater trade associations in the nation. Together, we can accomplish great things. If you have questions about membership or need assistance logging in to our website, please contact our Member Services Department at 512-472-8591 or by email at membership@trwa.org.

Save the Date for RuralWaterCon 2016 By Allison Kaminsky, Communications Director, Texas Rural Water Association

ave the date! TRWA’s RuralWaterCon is set for March 22-24, 2016 at the Omni Fort Worth! Complete with informative breakout sessions, several networking opportunities, an exhibit hall and District caucuses, TRWA’s 47th annual convention is an event not to be missed. We have changed up our regular format this year to accommodate the needs and schedules of our members. First, RuralWaterCon events will run from Tuesday to Thursday, instead of the usual Wednesday to Friday schedule. We have also restructured the order and timing of events to release attendees by 3:00 p.m. on Thursday, so everyone will have plenty of time to enjoy their holiday weekend. New this year, we will be holding a competitive clay shoot in place of our annual golf tournament. This event, cosponsored by AIA Insurance Agency, will be held the afternoon of Tuesday, March 22. Details about this event will be included in the RuralWaterCon registration materials that will be sent to all member systems by the end of December. Tuesday evening, attendees are invited to attend our welcome reception, during which you can mingle with your peers and enjoy a first look at the exhibit hall! Gold-level sponsors of the Texas Rural Water Political Action Committee (PAC) will also be invited to attend a special reception with Texas Senator Charles Perry, Chairman of the Senate Agriculture, Water and Rural Affairs Committee, at this time. This PAC reception will give members direct access to the senator and will include photo opportunities as well. The official RuralWaterCon program begins Wednesday morning with an opening general session, complete with keynote speakers Senator Perry and NRWA President Charles Hilton, as well as a presentation of the 2016 Awards of Excellence winners and Texas Rural Water Foundation Scholarship recipients. The general session will be immediately followed by the Annual Business Meeting, where we will discuss all TRWA updates, including items up for consideration during the annual elections. A complimentary lunch will then be served in the exhibit hall, where attendees can

learn about some of the latest product and service advancements in the industry. We have an exciting and varied lineup of educational topic choices that will begin Wednesday afternoon with three concurrent tracks of sessions running until 5:00 p.m., including a special track of topics geared specifically toward board members. Following sessions, attendees will have a short break to freshen up and meet up with spouses before making their way down to a pre-banquet happy hour. Doors to the President’s Banquet will open at 6:00 p.m., and will begin with a live auction benefitting the Texas Rural Water PAC. Entertainment at the banquet will be provided by “3 Fools on 3 Stools,” an interactive production combining music, humor, games and prizes. Thursday morning will begin with District caucuses, where official delegates representing each member system will have a chance to discuss and vote on official TRWA business. Information about TRWA elections will be sent out with registration materials, so keep an eye out in the mail for information on whether your District has a candidate up for reelection in 2016. The morning will round out with another block of educational breakout sessions, followed by the Chuck Wagon Luncheon. Attendees of this luncheon will be the first to know the results of the morning election, and will also be the first to see the premiere of TRWA’s third annual video production featuring narratives from our very own members. After lunch there will be two more blocks of concurrent sessions, and then attendees can make their way home safely to enjoy their holiday weekend with their families. This only scratches the surface of what is sure to be an exciting and fulfilling event! Registration and a full agenda will be posted online by the end of December at www.trwa.org, and each member system will receive a registration packet in the mail at this time as well. If you have any questions about this convention, please contact us at 512-472-8591 or email meetings@trwa.org. We hope to see you there!

Quench — November/December 2015

Quench â&#x20AC;&#x201D; November/December 2015

Effectively Managing Inventory Space and Costs By David Wheat, Materials Manger, Krausz USA

anaging water pipe clamps and couplings inventory is an issue that all water utilities need to control. With a small inventory, utilities can save on space and money, but if there is a hitch with deliveries or a sudden spike in demand, installers won’t have what they need for repairs. Utilities often have tight budgets, meaning that a larger inventory to better supply clamps and couplings is not an option. This is especially true in smaller utilities where the amount of space for inventory can be very tight. This balancing act between cost and space can be tricky, but with these five tips, utilities can ensure they have the repair products they need while keeping storage costs down. Evaluate how much stock is needed throughout the year Before deciding on how much inventory you need, take a careful 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. Do you notice periods when the demand for certain clamps or couplings is high and other periods when it’s low? See if you can manage inventory based on past records and decide which products should be in high supply and which ones can be lower. Additionally, knowing the size and types of pipes that are in the ground can help predict what kind of repair tools to store. Use repair products that can be used in a number of applications If you store clamps and couplings that can be used in a number of applications, then you don’t need to keep as many repair products in stock and space is reduced. There are products on the market that offer full transition couplings 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. These space savings are significant as one of these products can take the place of three traditional ones given its capacity to be used on a variety of pipes and repair situations.

Some couplings, for example, can be stab-fit between two separate pipes or repair the pipe by wrapping it around the damaged section. These products offer high versatility to connect to a wide variety of piping materials and diameters, and give installers the flexibility to make repairs within an extensive range of circumstances. Take weather patterns into consideration Weather can play a key role in when repair supplies will be in high demand and how fast you can obtain them. Repairs are frequent when the ground shifts during the spring thaw, or other times of the year when the weather is harsh (e.g. hurricane season). Keep in mind when ordering products that orders will 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 nation. Implement a streamlined purchasing system Use software programs for both inventorying product and ordering. Small utilities may rely on a paper checklist and a clipboard or simply go by memory, which can be unreliable. Make it easy to keep track of supplies and ordering so there is no confusion around ordering supplies. Assign a number for each product you order to supply categorization and keep track. Make sure ordering is done by just one person Delegate one person to be the purchasing manager to ensure multiple orders aren’t placed unnecessarily. The designated purchasing manager should keep track of inventory and be informed of any changes in supply needs. A good purchasing manager will also ask vendors if they offer discounts for buying in volume or for paying the entire invoice within a specified amount of time. Regardless of the size of the utility, inventory is important to manage to keep costs down and ensure repair parts are available when crews need them. By following these tips, you can ensure that costs are lower and easily managed while ensuring you have the parts when a pipe break occurs.

Quench — November/December 2015

Ask Larry

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

We are a water supply corporation and have a member who owns two accounts with us. Currently, one account is in arrears in the amount of $225. Our membership fee is $200. From what I understand, I can pull the meter on the delinquent account. The other account is current. The owner just told us that she is in the process of selling the property for the delinquent account. What can we do to avoid having to write off this amount? The owner no longer wants anything to do with this property (or accounts). A: If the current member is not going to pay the $225 past due bill on the account they own but do not live in, then the WSC may disconnect and remove/lock that meter and then apply the membership fee to that bad debt in accordance with the terms of its Tariff. The system must send a written notice stating its policy allowing for termination of water service for non-payment of a water bill.

the WSC need not refund any remaining balance of a liquidated membership. Also, it is important to ensure that the memberships are held by the same owner. You should not terminate a membership held by an owner that is different than the owner of the delinquent account. In some cases, the amount of the delinquent debt exceeds the amount of membership fees available to satisfy the debt. In those cases, a WSC may pursue legal action to recover a debt, although in many cases, the amount of legal fees and expenses required to pursue collection of the debt is prohibitively costly. In these cases, your system may refer the debt to a debt collection firm. Q: Once a meter is paid for and placed onto a property, who owns the meter? I always have understood it to be the WSC’s property. Is it supported in writing?

“You should also ensure that your sanitary control easement is adequate for the location of the new well.”

Next check out your tariff to see if there is language in Section E under Membership stating members having more than one membership must keep all membership accounts current or additional memberships can be liquidated by the board to satisfy the outstanding balance. If the tariff authorizes liquidation of a second membership under these circumstances, then the WSC may notify the member that the other membership also will be liquidated and that the second meter will be locked/ pulled on a certain date if the remaining $25 is not paid. This letter/ notification should specifically explain why the second membership is being liquidated, and specify the date that the meter will be locked / pulled if the delinquent sum is not paid in full. The letter also should state the balance of the “second” membership fee will be refunded if the memberships are refundable. NOTE: The above statements are true only if the WSC’s membership fees are “REFUNDABLE”. If the membership fees are not refundable, then 10

Quench — November/December 2015

A: The meter never belongs to anyone except the WSC. It is considered part of the WSC’s water system, and the WSC has to maintain, service and replace the meter as needed, and not the customer/ member of the WSC. When a new customer pays the cost of installation of a meter, they are paying for the equipment and labor required for the WSC to provide and install a meter for service to the customer’s property. The customer is not purchasing ownership of the meter. Yes, TRWA has made tariff and district service policy amendments over the years to clarify the meter belongs to the system and not the owner of the property or customer. Below is our language from Section E Ownership of Equipment in the TRWA sample tariff. You should check your tariff for similar language. 5. Ownership of equipment. All water meters and equipment and materials required to provide water or wastewater service to the point of customer connection; water meter or service tap, is the property of the Corporation upon installation, and shall be maintained by the water system only.

Q: Do you know of any spacing restrictions for drilling a replacement well? Can we locate a replacement well 10 feet from the old well or does it have to be a minimum distance away from the old well, and what is that distance? Also the well that failed is about 50 feet from our other active producing well. Is there any restriction on placing the replacement well with respect to this other active well? A: The only spacing I’m aware of may be imposed by a groundwater conservation district in your area and of course the need to consider allowing sufficient distance between these other wells to keep from causing the drilling activities from polluting the aquifer over where the producing well is located. You should also ensure that your sanitary control easement is adequate for the location of the new well.

Hickory Water Supply 3193 MSWT Melvin, Texas 503,898 Gallons Potable Water Owner: San Angelo Water Utilities General Contractor: Archer Western

If your new well is too close to the older “producing” well so that service from the existing well may be impacted by drilling activities, you may need to consider connecting to another system for a temporary period to keep the customers supplied with potable water service that meets TCEQ requirements. Most systems I’ve talked with indicate their well drillers want to move over at least 10 feet from a “bad” well to drill the new replacement well. So if there is a groundwater conservation district in your county, please contact them as they may have other regulations in place now that restrict drilling within a certain number of feet of an existing well. It also is likely any new well would be subject to construction and operating permit requirements established by the groundwater conservation district. If you have a technical question you would like answered, please email Larry.Bell@trwa.org.

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Discounted Equipment Available through Federal Surplus Property Program By Colleen Zarek, Foundation Development Specialist, Texas Rural Water Foundation

he need to replace or upgrade equipment and infrastructure can place a serious financial burden on many rural communities. Fortunately, the Federal Surplus Property Program (FSPP) is a great opportunity for water utilities to obtain equipment at an affordable price. The program started in 1949 when President Truman created the General Services Administration (GSA) by signing the Federal Property and Administrative Services Act. The program, overseen by the GSA, allows federal agencies to give property they no longer need to certified non-federal organizations for a service charge that is much cheaper than the open market price. The program works like this: federal agencies work with GSA to dispose of surplus property, some of which is offered to State agencies, such as the Texas Facilities Commission (TFC). In Texas, property is requested by the TFC, and is then either shipped to a TFC warehouse or remains where it is. Once the property is allocated to the TFC, organizations can search available property through the TFC website at: http://www.tfc.state.tx.us/ divisions/supportserv/prog/fedsurplus/. If the item an organization wants is not found, they can submit a “want list” to the TFC. The TFC will then search for the item either by visiting federal installations or by searching GSA’s online inventory. After interested organizations contact the TFC staff requesting property and their account status is verified, they receive the property and submit their payment, which is considered a handling fee and is used to support the program, as it is not funded by the legislature. The handling fee is determined by the condition and demand of the item, but is usually significantly less than the open market cost and is, therefore, considered a donation from the federal government. Hence, participating organizations are called “donees.” After the transaction is complete, the donee must submit the required compliance paperwork and be available for site visits. It is important to note that “direct pick-ups,” meaning picking up equipment from the TFC warehouse 12

Quench — November/December 2015

This 15 KW generator, located in Fort Worth, is available for a $1,900 service charge. In the open market, this generator would cost roughly $3,100.

instead of having it delivered, will save on shipping costs. Eligible organizations include: cities, counties, state agencies, political subdivisions, public and private schools, colleges, universities, museums, libraries, medical institutions, child care centers, drug abuse treatment centers, public airports, educational radio stations, utility providers and other conservation agencies, select veterans service organizations (per the For Vets Act of 2013), service educational activities (such as the Boy Scouts and Girl Scouts, YMCA, Red Cross, JROTC, etc.), and providers of assistance to the homeless, impoverished or elderly. As long as a utility is a city-owned utility, a municipal utility district (MUD) or special utility district (SUD) that can provide its charter or legislation stating its boundaries, or a nonprofit utility that also holds a Certificate of Convenience and Necessity (CCN), it should be eligible. Water districts and water supply corporations (WSC) should all qualify. To begin the process, interested organizations need to fill out an Application for Eligibility, which can be found on the Texas Facilities Commission

website at http://www.tfc.state.tx.us/divisions/ supportserv/prog/fedsurplus/forms/. A guide for filling out the form can be found on the TRWF website at www.texasrwf.org under “Utility Resources.” In Texas, there are three warehouses containing surplus property. They are located in San Antonio, Fort Worth and Austin. Some items currently in stock that might be useful include: • • • • •

Generators General Tool Kits Trucks and Work Vehicles Power Tools Loading and Digging Equipment

Planning and Design Services for your Water System TREATMENT STORAGE DISTRIBUTION ksaeng.com | 877.572.3647

Upon receiving property, the donee has one year to put it to use. When the property begins being used, a “Compliance Period” starts in which the federal government performs compliance checks and retains ownership. Ownership is officially transferred to the donee when the Compliance Period is completed. For more information please contact the following: Questions about eligibility & participation: Megan Sim megan.sim@tfc.state.tx.us 512-463-4551 State Surplus Property Program Marios Parpounas, Director marios.parpounas@tfc.state.tx.us 512-463-9709 Sonya Gil (for information on state vehicles, including retired DPS vehicles) sonya.gil@tfc.state.tx.us 512-463-2544 Federal Surplus Property Program Kristy Fierro, Assistant Director kristy.fierro@tfc.state.tx.us 512-463-3458 Jim Virdell (to submit property requests) jim.virdell@tfc.state.tx.us 512-475-3705 Or visit the Federal Surplus Property Program webpage at: http://www.tfc.state.tx.us/divisions/ supportserv/prog/fedsurplus/.

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Quench — November/December 2015

The Art of Sustainability: 10 Principles of Sustainable Utility Management

Principle 5: Financial Viability, and Principle 6: Infrastructure Stability By John C. Padalino, Partner, Kemp Smith LLP This article is the third in a five-part series focused on sustainable utility management.

n the previous issue, we focused on employee and leadership development and operational optimization and how vital those principles are to building community support for your water or wastewater system. This article is the third in the series based on 10 principles of system sustainability listed in the Rural and Small Systems Guidebook to Sustainable Utility Management. The Guidebook was published in conjunction with the Environmental Protection Agency (EPA) while I was at the U.S. Department of Agriculture (USDA) serving as the Administrator of the Rural Utilities Service. This article examines how financial viability and infrastructure stability play a role in sustainability. Principle 5 — Financial Viability Financial viability speaks for itself: Do you have a rate structure in place to allow you to pay the bills, save for rainy day events and plan for long term projects? With a system optimization program centered on condition-based monitoring and predictive machinery, setting rates and planning for future events should become easier. After all, it is just math. But let’s take a look at what happens when you ignore the financial viability of your system. The island and territory of Guam has been a strategic naval base for the United States since World War II. There are thousands of soldiers, sailors and support personnel on the island in addition to the local Guamanians. The Ordot Landfill is located near the Village of Ordot on the Island of Guam. The Ordot Landfill was established in a ravine, which slopes steeply to a river. The site has been a dumping ground since the 1940s, serving as Guam’s primary landfill for industrial and municipal waste. Since the 1990s, the EPA has charged the government of Guam with the responsibility of cleaning up and eventually shutting down the 14

Quench — November/December 2015

landfill. The landfill is literally on fire. In 2010, during the Recovery Act, the government of Guam came to USDA asking for an $88 million loan and a $15 million grant to finance the construction of a new landfill. USDA had concerns about the ability of Guam to pay back the loan and properly manage the grant. The legislature in Guam had to pass a bill stating that no free service or use of the landfill would be permitted. After deciding not to take the loan from USDA, the legislature subsequently repealed the “no free service” legislation. Today, the Ordot Landfill has been closed, there continues to be political turmoil over the new and old landfills and the government does not collect enough fees from the new landfill to service the debt on over $200 million in bonds the government issued to finance the new landfill. This is a textbook example of what not to do. The “Field of Dreams” was a movie, not a financial strategy. If you build it, they may not come. In June 2012, the city council of Glendale, Arizona, decided to spend $324 million on the Phoenix Coyotes, an ice hockey team that plays in Glendale’s Jobing.com Arena. Overall, Glendale is not only on the hook for $15 million per year over two decades to a potential Coyotes owner, but also a $12 million annual debt payment for construction of its arena. In return, according to news sources, the city receives a measly “$2.2 million in annual rent payments, ticket surcharges, sales taxes and other fees.” Even if the Coyotes were to dominate the league like no other in recent memory and return to the Stanley Cup Finals year after year, the city would still lose $9 million annually. You may think that the pro sports example is not relevant to a rural water system, but don’t let that fool you. During my time at USDA, we saw an example of a rural water system in the Midwest that operated on the same philosophy of “If you build it, they will come.” The system kept taking on more and more debt to build, build and build some more. The economic downturn meant the number of new

hookups did not meet expectations. By the time the system realized it was in trouble, it owed USDA and private bondholders over $135 million. In order to work itself out of the mess, the water system fired most of its entire construction crew, raised rates, and had a complete change in management. The water system had to decide if it was a construction company or a water utility. We examined a few extreme examples of what happens when you lose focus on financial viability. Before a system could even be considered for a grant by USDA, there will be a focus on the system’s financial viability. For example, USDA requires that user charges be reasonable and produce enough revenue to cover operations and maintenance, debt service, a debt reserve equal to cover one annual average loan installment, and a short lived asset account. If user charges are below what other similar systems charge, USDA will only provide enough grant that is in line with those similar systems. In other words, even if a system is grant eligible, it may have to raise user charges to receive the grant. Principle 6 — Infrastructure Stability Infrastructure stability goes hand-in-hand with operational optimization. Another way of looking at it is to ask: Do you have a capital improvement plan? An investor may want to know not only what you need funding for today, but also what will you need over the life of a loan. Many infrastructure loans have a term of 30 or 40 years. So, you may look for funding for a booster station today, but need a loan for the water tank seven years from now. All of these decisions will impact your finances and the amount of debt you can take on. But, let’s look at a solution on the wastewater side that could help. A medium-sized city in Ohio had aging digesters —almost a half-century-old. The old digesters could no longer keep up with the effluent requirements

and the state regulatory agency was regularly citing the city for permit violations. The cost of upgrading the digester was going to be in the millions. In addition, the treatment plant paid over $200,000 in energy costs and half a million dollars in sludge disposal fees. The city’s knight in shining armor was a renewable energy company with methane digester technology. The city and company negotiated a public private partnership. The city leased the digester from the company in exchange for the company’s agreement to retrofit the digesters, keep the city in compliance and to provide electricity generated from the methane. The plant uses 60 percent of the electricity generated and the company sells the remaining 40 percent on the grid. A capital investment plan and some creative thinking can help turn your utility from a wastewater treatment facility into a water resource recovery facility. The future will require utilities to not only know everything about their physical assets, but to look at innovative approaches to improving the facilities through partnerships like the one in Ohio. *** John Padalino most recently served as the Administrator for USDA’s Rural Utilities Service where he was engaged in public policy issues affecting the utility industry. He served in several other positions at USDA from Chief of Staff to the Under Secretary for Rural Development to Acting Principal Deputy General Counsel. John is a partner at Kemp Smith LLP where he represents clients by providing strategic advice on corporate operations, government affairs, and utility issues. John is a public finance and utilities expert working primarily with water and wastewater systems, telecommunications companies, electric cooperatives, renewable energy developers, and lenders across the United States.

Quench — November/December 2015

Keep It Legal Answers to Members’ Questions by Lara Zent, TRWA Executive Director and General Counsel

uring my tenure as the Interim Executive Director, we were fortunate to be able to enlist the assistance of several expert attorneys to help us in answering some of the challenging legal questions we receive from member water systems on a daily basis. A few of these responses are featured in this edition of the column. Attorney Gregg Kronenberger provided the following responses to TRWA member questions: Q: We are a special utility district. Can an hourly employee bank overtime hours as comp time and use at a future date? A: The federal Fair Labor Standards Act, 29 U.S.C. sections 201, et seq. (the “FLSA”) is the law that provides for the payment of minimum wage and overtime. It is the law applicable to your questions on compensatory or “comp” time.

compensatory time. The payment should be at the average of his regular rate for the last three years, or his final regular rate, whichever is higher. Q: Is it a state or federal law that an employer must give a 15 minute break in the morning and afternoon to employees? Does this apply even if the employee is allowed to leave his desk anytime to use the restroom facilities, eat at their desk and make brief personal phone calls? A: There is no state or federal law that mandates break time. It is simply a customary practice to grant a “coffee break” or a “smoke break.” The time is ordinarily compensable; unlike lunch break time, because employees are expected to be ready to perform work. A lunch break is usually not compensable, and employees should not be required to eat at their desk or otherwise be required to perform employment duties during this time period.

“A system should require both spouses to sign an easement on a homestead, unless a trained lawyer has advised the system otherwise.”

The FLSA generally provides that all employers must pay their non-exempt employees one and one half times their regular rate of pay for all hours worked over 40 in a workweek.

However, under section 7(o) of the FLSA, a political subdivision of a state, which includes SUDs, can give employees “compensatory time off” in lieu of overtime. The amount of time off should be equal to one and one half times the hours of overtime worked. So instead of getting paid 15 hours for working 10 hours of overtime, the employee would get 15 hours of compensatory time off. Under subsection 7(o)(2) an employer that is a political subdivision can only pay comp time if there is an “agreement or understanding” with the employee prior to the performance of work for the payment of comp time in lieu of overtime. Your employee handbook should address comp time, or you should have employees sign a memorandum acknowledging their understanding that they may be paid comp time. Also under subsection 7(o)(4), an employee upon termination must be paid for his unused 16

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Attorney Jim Bradbury provided the following response to a TRWA member question:

Q: Are both spouses required to sign an easement on their homestead property? What if the property is not their homestead? We have lots of absentee landowners who use their land only for recreation. A: The homestead is strictly protected in Texas and is Constitutional in power, Art 16, Section 50. Absent a few rare situations under Section 5.001 of the Family Code, a system should require both spouses to sign an easement on a homestead, unless a trained lawyer has advised the system otherwise. As to non-homestead property, it does vary depending on whether the property is separate or community. If the property is separate and confirmed to be separate property by someone who understands how to make such a determination, then only that person’s signature is required for an easement or other interest.

As to community property, it can differ on a few factors. Property acquired during marriage is presumed to be community whether both spouses are on the deed or only one, so for a system to be safe, it should always assume property held by a person who is married is community until proven otherwise. Best practice note: unless the grantors push back for some reason, always get both signatures if possible as it eliminates risk. Where land is owned as community property, it can be managed separately by one spouse and, in that case, only the signature of the managing spouse is required. However, absent a clear written agreement or language in a deed that property is separately managed, a system should assume real property held by a married couple is jointly managed and both signatures should be obtained. A deed with only one spouse’s name is not enough to allow a system to solely rely on a single signature. The above advice also applies equally in the condemnation context. Short Analysis: •

Homestead Property—must obtain both signatures.

•

Separate Property—if confirmed to be separate, only one signature required.

•

Community Property—unless a confirmed written document verifies that the property is separately managed, both signatures should be obtained.

Attorney Tony Corbett provided the following response to a TRWA member question: Q: We have a customer whose property is located about 1800 feet from the main line. Around 12 years ago, someone for our system moved the meter from the main line to just inside the fence line of the property owner’s home, making us responsible for the line

running across the owner’s property. We have had a lot of maintenance issues on that line. Can we move the meter back to the main line, thus making the owner responsible for his line running across the pasture? If we notify the owner of our plans and then do it, will it be legal? What is your opinion on the matter? A: You are asking about the authority to move an existing meter and thereby transfer responsibility for ownership/maintenance of a waterline to the customer. It seems that a former customer requested, and the WSC agreed, to move the meter location. If this is the case, it appears to me a contract was reached between the parties regarding the new meter location and responsibility for the line in question. The conduct by the parties since the meter relocation also supports this transfer of responsibility since the WSC has repaired the line on multiple occasions over the years. I think it would be problematic for the WSC to unilaterally rescind the “contract” without the approval of the other party. You should review the corporation’s files and see if there is any old documentation between the parties that may be relevant or that reflects the agreement between the parties. You also may want to see if there is an easement in place for the waterline. The original easement, if there is one, likely would not cover the waterline, so you may want to consider securing an easement. If the line is as problematic as you indicate, it may be appropriate for the WSC to construct a new line to replace the old line. In the long run, this should reduce your operation, maintenance and repair costs. You could do this in connection with getting a new easement. If you have a legal question you would like answered, please email legal@trwa.org.

Call the Easement People

Need help finding your easements or determining the tracts of land that don’t have your easements? We can help!

We Locate Easements Quench — November/December 2015

2016 Funding for the SWIFT Program Now Open By Bech Bruun, Chariman, Texas Water Development Board

n 2015, the Texas Water Development Board (TWDB) approved over $9 million in financial assistance for agricultural and rural projects from the State Water Implementation Fund for Texas (SWIFT) program*. We anticipate the sponsoring entities of these projects will save more than $1 million on those projects through the SWIFT program’s cost-effective financing.

To meet our state’s growing water demand, we need to develop water projects that will both increase and maximize our existing water supply. The 2012 State Water Plan identifies hundreds of projects, with a total capital cost of $53 billion. Water providers will need nearly $27 billion of that total capital cost in state financial assistance—hence the importance of the SWIFT program.

On December 1, 2015, the application period for the second round of the SWIFT program funding opened. Entities will have until February 5, 2016, to submit a preliminary, two-page application.

Texans know how critical water is to our future. In 2013, the Texas Legislature and the people of Texas overwhelmingly approved the creation of the SWIFT program. They understand that investing in our state’s water infrastructure over the next 50 years will ensure that Texas remains the country’s most influential economic force.

Projects listed in the approved 2016 Regional Water Plans and the subsequent 2017 State Water Plan will be eligible for SWIFT program financial assistance. That means if your community has a project listed in the new regional water plan, now is the time for you to begin the SWIFT application process. In addition to the agricultural and rural projects funded through the SWIFT program in 2015, we approved projects to help meet Texas’ diverse water needs. Those projects include transmission lines, wells, land acquisition, seawater desalination, brackish groundwater treatment desalination, canal linings, reservoirs and metering systems. We want to make an even bigger impact with the 2016 funding cycle, and we want to ensure that rural communities are well represented. Our state water plan tells us that in the next 50 years water demand will increase by 22 percent while existing water supply will decrease by about 10 percent. That is why it is more important than ever to turn our planning efforts into projects. Without additional water infrastructure in place, Texas could face significant water shortages in the future. *The SWIFT program includes two funds, the State Water Implementation Revenue Fund for Texas (SWIRFT) and the State Water Implementation Fund for Texas (SWIFT). Revenue bonds for the program are issued through the SWIRFT. 18

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Rural communities and agriculture play a major role in our state’s economy. Each year, these communities contribute billions of dollars to the Texas economy, helping to ensure that Texas remains on the forefront of economic growth. The TWDB recognizes the importance of your communities and the contributions you make to the state. As Texas continues to grow, it is vital that we take steps now, like utilizing the funding available from the TWDB through the SWIFT program and our other financial assistance programs, to make sure the demands of the future aren’t limited by our current water infrastructure. The solutions to the state’s water needs are as diverse as the state’s geography. Communities in the Panhandle face different challenges than those in East Texas, not the least of which is the difference in rainfall. There is no one-size-fits-all solution. Fortunately, the regional water plans and state water plan—on which SWIFT funding is based—rely on communities determining their own futures. As Chairman of the TWDB, I have traveled to your communities and seen first-hand the need for financing projects listed in our state water plan. My fellow TWDB Board member Kathleen Jackson has also traveled the state meeting with countless community leaders and citizens who are concerned about the future of water. Our travels have allowed

us to see the need and demand for turning water management strategies in the state water plan into reality. In order to meet this reality, we need the help of the agricultural and rural communities. We encourage you to spread the word of the SWIFT financial assistance program and continue to be engaged in the water planning process. We are here to assist, but need your help. Ask questions, tell a friend and get involved. Step up to the plate and secure funding for your water needs. We value and respect the commitment and dedication of the agricultural and rural communities. Together we can ensure that water management strategies develop beyond plans and into reliable and dependable water sources for our state. That’s a reality we can all agree is worth working hard to achieve. To apply for funding from the SWIFT program or the TWDB’s other financial assistance programs, please visit the TWDB’s financial assistance page at www.twdb.texas.gov/financial/index.asp or contact the TWDB at (512) 463-0991 or Financial_ Assistance@twdb.texas.gov.

Bech Bruun was appointed chairman of the Texas Water Development Board by Governor Greg Abbott on June 10, 2015. He has served as a Board Member of the Texas Water Development Board since September 1, 2013. A native of Corpus Christi, Bruun resides in Austin with his wife Glenna and their children Cilla Kay and Radford. The Texas Water Development Board’s mission is to provide leadership, information, education, and support for planning, financial assistance, and outreach for the conservation and responsible development of water for Texas.

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Support the Texas Rural Water PAC

RWA is kicking off its annual Texas Rural Water Political Action Committee (PAC) fundraising campaign. The Texas Rural Water PAC is the bipartisan state and federal political action committee of the Texas Rural Water Association. PAC funds support the campaigns of state and federal candidates who will take a stand on issues that matter to Texas rural water. Each year, TRWA members contribute to the fundraising campaign so that the Texas Rural Water PAC can support legislators who will have a positive effect on our members’ future. By contributing to the Texas Rural Water PAC, you can affect the political process by ensuring that Texas rural water is fairly and effectively represented. 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. These contributions support our effort to elect individuals to public office who will give rural water fair and effective representation. The Texas Rural Water PAC Board reviews candidates’ effectiveness, committee assignments and voting records to determine which ones to support. There are two ways you can support TRWA’s PAC. The first is by making an individual contribution, which will earn you one of three levels of sponsorship: •

Gold level, an individual contribution of at least $300;

•

Silver level, an individual contribution from $200 to $299; and

•

Bronze level, an individual contribution from $50 to $199.

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. PAC Sponsors will be able to display their pride in rural water with rewards, which will be given to contributors at each level. Sponsors at all levels will also receive special recognition at RuralWaterCon in March, and gold-level sponsors will be invited to attend a special reception with Senator Charles Perry, Chairman of the Senate Agriculture, Water and Rural Affairs Committee, on Tuesday night of the convention. Suggested contribution amounts are guidelines; however, individuals may contribute more or less. Individuals may legally contribute up to $5,000 per calendar year. To make a contribution, please complete and return the Texas Rural Water PAC Contribution Form and make your personal check payable to the “Texas Rural Water PAC.” You can find this form on our website by clicking on the “Legislative” menu item on the top navigation pane and viewing the “Texas Rural Water PAC” page. These forms will also be mailed to each system in January 2016. The second way you can support the 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 duration of Convention in the Exhibit Hall, and a live auction of our premium items will be held Wednesday, March 23 in conjunction with the President’s Banquet. We encourage members to donate unique and locally sourced items for the auctions. 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, 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 Texas Rural Water PAC’s strength lies in the involvement of water professionals like you. By pooling your contributions with 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 show your support for Texas water. Become a sponsor and help us Keep Texas Rural! Quench — November/December 2015

From the Hole Tales from the road by Michael Beadnell, Instructor for Texas Rural Water Association

n late October, I had the pleasure of teaching a Water Distribution Class, hosted by Bistone WSC in Mexia, Texas. Having spent time in Mexia in the past, I was aware of the translation differences that many of the nonresidents have with pronunciation of Mexia as “ma Hair.” My recent web search gave me comfort to see the latest town moto was “Mexia, a nice place no matter how you pronounce it.” Arriving around noon, I was expecting to have the classroom set up and to visit with the crew before going to the hotel. Things weren’t any different in Mexia then any other utility corporation that I’ve been to on a Monday. It was a typical Monday— the crew was in the field fixing a leak and my point of contact had gone to Waco to get some parts to address it. I followed a backhoe to the treatment plant and met one of the operators, Andy Smiley. Andy parked the backhoe and opened the Lake Mexia Pavilion for me so I could test and check all the electronic equipment, lay out free literature, set the tables for ultimate impact and arrange a participation area. He told me he and another operator there were going to be in my class the following morning. Realizing he had a repair to tend to, I decided to save my explanation of water works essay examinations, Sir James Watts and the advantage of reputation until class the next day. I told Andy I would lock up and return back to the treatment plant once completed. Surrounding the Lake Mexia Pavilion is a dock, a boat ramp, recreation area and rent cabins, all controlled and managed by Bistone WSC. The pavilion was erected to its present condition with funds collected from the rent cabins. Conveniently placed and scattered around the shoreline, the cabins are just a stone toss from the lake and all have electricity, outdoor grills and scenic views. Once I finished setting up the classroom, I made my way back to the Bistone office. The office is located on beautiful Lake Mexia just miles from the pavilion. Brent Locke is the General Manager of the corporation and has been for 25 years. Walking into Brent’s office, I noticed his Members Only 24

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The class breaks from lecture format both day one and day two for group participation activities.

Double “A” Club framed certificate. The prestigious organizational award looked oddly different than my member certificate, the 462nd one to be issued. A closer examination revealed that it was because Brent was awarded his much earlier—about 200 members earlier. Curious, I inquired, “Please tell me some interesting history about Bistone WSC.” Much to my surprise, Brent explained that the corporation doesn’t use the beautiful lake to supply water for their customers, but instead draws from a wellfield a short distance away in a place called Pleasantville. Originally, Mexia got its water from a natural spring at Fort Parker. Then, because the oil boom of the 1920s hit, the population went from 4,000 to 50,000 within days. Mexia tapped the Midway Aquifer to supply the water needs of the growing community until it became contaminated. When you make oil, it comes with a byproduct, and that byproduct is a wastewater. That wastewater is salt water. The oil patch was very new in Texas and there weren’t environmental rules on how it was supposed to be disposed of properly. Non-point source seepage and runoff from the byproduct’s unregulated dumping got into the Midway Aquifer and it became polluted with salt water. The Navasota River became nearly as salty as the ocean. Bistone WSC started as a joint effort with Mexia,

which is in Limestone County, and Wortham, which is in Free Stone County. The lake was built and used until 1982, and then because of a severe drought, they decided to go back to groundwater and another aquifer. Bistone WSC still uses Lake Mexia, but only for emergencies. The main source for their customers is groundwater pumped from their water plant located a short distance away in Personville. I arrived to teach the class Tuesday morning around 7:00 a.m. and the pavilion was already open, coffee was made and Andy had snacks laid out. We got started with paperwork and passed around an issue of Quench for the students who were unfamiliar with our publication. Instruction started with factors that affect flow, followed by characteristics of safe drinking water. We went over chapters 1 through to fire hydrants. The first day ended with group participation where attendees took turns preforming color change tasks with reagents. Wednesday, I arrived to the same hospitality I experienced on Tuesday. During the instructional period of the class, we went over chapters 5 to meters. Afterward, we broke into groups and performed free and total residual tasks then simulated taking bacteriological samples. On Thursday we finished up the Construction chapter. I presented my Math 101 PowerPoint (everything you ever wanted to know about calculations, but were afraid to ask) and we finished the Calculations chapter in time to take the final exam. The whole class was eager to learn and willing to participate. It was a pleasure to be their Instructor. If you are interested in hosting a TRWA training class, you can fill out a Course Request Form online at: www.trwa.org/?CourseRequestForm. You may also contact our training department by calling 512472-8591 or emailing training@trwa.org.

Quench â&#x20AC;&#x201D; November/December 2015

TRWA Says Goodbye to Two Longtime Employees In Memoriam: Raymond Curtis

t is with a heavy heart that we announce that our dear friend and colleague, Raymond Curtis, passed away over the weekend. He was part of our rural water family for over 40 years. He worked for TRWA as a wastewater circuit rider and trainer for the past 17 years. Raymond Wesley Curtis, 63, of Rosebud, died Sunday, November 1, 2015 in a Seguin Hospital. Services were held at 1:00 p.m. Thursday in CookGerngross-Green-Patterson Funeral Home in Rosebud. Rev. Allen Bramlett officiated, and he was laid to rest in Pictured left to right: TRWA Executive Director Lara Zent, Powers Chapel Cemetery near Rosebud. Wastewater Technician Alex Eaves, Wastewater Trainer

Raymond was born December 13, 1951 in Rosebud Raymond Curtis, Circuit Rider Paul King, Circuit Rider James Smith, Circuit Rider William White, and Technical to John and Allie Williams Curtis. He lived in Houston Assistance Director Larry Bell. and Falls County most of his life. He achieved the two highest available certificates in the water and wastewater industry issued by the State of Texas. He spent the majority of his life mentoring and assisting people in the water and wastewater industry. He married Shirley Dach in 1971. He was preceded in death by his parents and his wife, and is survived by several cousins. The above photo was taken at this year's NRWA WaterPro Conference in Oklahoma City in late September. This was one of the last times we were able to come together as a team and spend time with our dear friend Raymond Curtis. Raymond, we will miss you always and think of you often.

TRWA Instructor Len Klandrud Retires

fter 18 years of service to the Texas Rural Water Association, Instructor Len Klandrud will teach his last TRWA class this month so he can begin his retirement in January 2016. Len started with TRWA in 1997 as a Sampler and served as the on-the-job trainer for new samplers. He volunteered to take the required classes to become a TNRCC/TCEQ approved Water and Wastewater Instructor while continuing to perform his normal sampling duties. Among Len’s many accomplishments have been his development of the 8-hour, 10-hour and 16-hour TRWA Customer Len accepts a plaque honoring his 18 years of Service Inspection manuals. He was also instrumental in the service during TRWA’s December Board holiday authoring of TRWA’s Basic Water manual, one of TRWA’s very first dinner. manuals to be completed and approved by TNRCC. “Within the TRWA family, Len has been regarded by employees (both present and past) as someone you can count on, turn to for help and know you are getting the best information possible. He has truly been a very valuable asset to TRWA and everyone who has worked with him over the years,” said Michael Vollmar, TRWA’s Training and Professional Development Director. We thank him for his hard work and dedication over the years! Join us in wishing Len the best of luck and happiness in his retirement! 26

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TRWA Briefs Don’t Miss Early Bird Prices on Eminent Domain Filing Service

he early bird deadline to sign up for TRWA’s eminent domain filing service is January 15, 2016. TRWA is offering a subscription service to assist systems in complying with SB 1812. This new state law requires all entities with eminent domain authority to file an annual report with the Texas Comptroller. This includes water supply corporations, districts and cities. The early-bird deadline to secure the $150 member price is Jan. 15. After Jan. 15, the fee increases to $250 for members. TRWA will handle the filing for subscribing systems this year and subsequent years so you have one less report to file. All systems with eminent domain authority must file an annual report with the Comptroller by Feb. 1, 2016 or face up to $2,000 in penalties. To sign up visit, http://www.trwa.org/?SB1812. Questions? Contact us at 512-472-8591 or eminentdomain@trwa.org.

Now Accepting Applications for 2016 TRWF Scholarships

e are now accepting applications for the Texas Rural Water Foundation’s 2016 scholarship programs! Whether you are a student looking to pursue a higher education in a concentration related to the water and/or wastewater industry, or you are a system operator or manager pursuing continued education and career advancement, we encourage you to take advantage of one of these opportunities! Student scholarships are designed to help defray the costs of tuition, fees, books and/or room and board for the recipient. These funds are our investment in the future of the water and wastewater industry in rural Texas. We encourage children of TRWA member system board members and staff, as well as other interested students to apply. We are particularly interested in supporting students who seek a career in the water and/or wastewater industry. Former student scholarship recipients are invited to apply for a continued scholarship for additional funds. To be eligible, these applicants must provide transcripts to demonstrate they are in good 28

Quench — November/December 2015

academic standing, and remain in a concentration related to the water and/or wastewater industry. Each TRWA member system will receive at least one packet containing the application forms for both the Student Scholarship Program and the Operator/ Manager Scholarship Program. If you or someone you know is interested in applying, please ask your general manager for the desired packet. These application forms, along with eligibility information, are also available for download on the Texas Rural Water Foundation’s website at www.texasrwf.org. Please share these opportunities with your peers and community members who may benefit from one of these programs. The number of scholarships and the amounts awarded will be based upon the number of qualified applicants and the amount of funds available. Historically, student recipients have received $1,000 to be applied toward the academic year, and operator/manager recipients have received up to $250 for TRWA-approved courses taken during the program year. Scholarship recipients will be announced at the 2016 RuralWaterCon, to be held March 22-24 in Fort Worth, Texas. All recipients will be contacted directly with information on how to receive payment. Recipients will also be recognized in the April/ May issue of this magazine. For more information, visit www.texasrwf.org or you may contact Allison Kaminsky, communications director, at Allison. Kaminsky@texasrwf.org or 512-472-8591. We look forward to hearing from you!

Absentee Voting Ensures You Have a Voice in TRWA Elections

eep an eye out in the mail for your official TRWA Election absentee voting packet in early 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 March Elections. District caucuses will be held in conjunction with RuralWaterCon at the Omni Fort Worth on the morning of March 24, 2016. If you cannot send a representative of your system to participate in your District’s caucus, please cast an absentee ballot to ensure your interests are represented. Each 2015 member system will receive their packet via U.S. Mail no later than February 9, 2016.

Official ballots (originals only) must be received at the TRWA Office by 5 p.m. on March 18, 2016 or delivered in-person at the Credentials Committee Booth by 5 p.m. on March 22, 2016. TRWA membership must be current by March 18 for your vote to count. Note: Absentee ballot must be accompanied by a signed Delegate Certification Form to be valid. Election details and more detailed absentee voting procedures will be included in your RuralWaterCon registration packets, being mailed out in late December. After you have had a chance to review these materials, if you still have any questions about the absentee voting process, you may direct them to TRWA’s Communications Director, Allison Kaminsky, at 512-472-8591 or allison.kaminsky@trwa.org.

TRWF PH2OTOSTREAM Photo Contest Deadline Extended

hotographers now have until January 15, 2016 to submit their photos to the Texas Rural Water Foundation’s annual PH2OTOSTREAM contest. Contest categories under consideration include:

•

Rural Texas Water: A general category for images representing the rural water and wastewater utility industry

•

Water Infrastructure: Images of the technology that drives water utilities

•

Utility Operators in Action: Images depicting utility personnel working in the field

•

Rural Water History: Images that provide a pictorial history of rural water. If you have images of your system’s ground breaking, your original board, historically significant artifacts, etc., we encourage you to scan your images and send them in!

Each category winner will receive a $50 cash prize and be spotlighted in a future issue of Quench. The Grand Prize winner will be selected from the category winners and will also receive a matted and framed print of their photo. For eligibility requirements, rules and guidelines, and to download a contest release and entry form, please visit www.texasrwf.org. If you have any questions or inquiries about the contest or rules, you may call the Foundation Development Team at (512) 472-8591 or e-mail them at foundation@texasrwf.org with the subject “Photo Contest Inquiry.”

Resourceful

Be ! n a r e t e V a e r i H

Many veterans already have the skills needed to work in the water industry.

Help them continue to serve. Contact the Texas Rural Water Foundation Veteran Employment Program: 1616 Rio Grande Austin, TX 78701 www.texasrwf.org • foundation@texasrwf.org • 512-472-8591 Quench — November/December 2015

Classified Ads Wastewater Technician

General Manager

Texas Rural Water Association

Steamboat Mountain WSC

TRWA is looking to fill a USDA Wastewater Training and Technical Assistance position to schedule, conduct and facilitate presentations to board members, employees, operators, bookkeepers, or other staff during onsite technical assistance contacts with rural and small municipal wastewater systems and to develop and manage program administrative affairs in order to complete the program contract requirements. Requirements for this position include: 1. Ability to travel approximately 85 percent of the time and shall have and maintain a valid Texas Driver’s License. 2. Bachelor’s degree, high school, and / or other equivalent training relating to wastewater system’s management and operations. 3. Possess and maintain a valid TCEQ Collection or Wastewater License (“B” License preferred). 4. Familiarity and knowledge of the CLEAN Water Act, TCEQ rules, Open Meetings, Public Information Acts, as well as other state and federal laws which govern water systems and issues facing small systems. 5. Hold or be able to obtain TCEQ certification as an instructor that can provide accurate and detailed oral and written presentations in classroom training. 6. Prefer 5 years management and operations experience with a rural system or small municipality. 7. Extensive well-rounded knowledge of budgeting, management, operations, and planning in all aspects relating to small systems needs. 8. Have knowledge of computer-based word processing, data entry and spreadsheets, with a willingness to learn other new programs and procedures as they relate to compliance with the program. If you are interested in learning more about this position, please email Larry.Bell@trwa.org. 30

Quench — November/December 2015

Steamboat Mountain WSC is looking for candidates to fill a General Manager vacancy in Tuscola, Texas. The requirements for this position are as follows: 1. Minimum 2 Years management experience or bachelors degree in business or accounting. Experience in water industry a plus. 2. Be familiar with Microsoft Office and its components. Excellent computer skills necessary. 3. Be able to manage a rural water system with 2,000 connections and supervise three employees. Learn how to back up the office and work in the field. Excellent public relations skills a must. 4. Be able to be on call when needed and work overtime when required. Steamboat Mountain WSC offers the following benefits: 1. Pay will depend on experience. 2. Ten paid Holidays a year 3. Vacation and sick time 4. Matching 401K retirement plan 5. Company truck to take home Interested applicants please send resume to: rjonessteamboatmt@taylortel.net.

Plan Ahead CONFERENCES:

March 22-24, 2016

RuralWaterCon, Fort Worth, Omni Fort Worth Hotel

June 9-10, 2016

Office Professionals Conference, San Antonio, Hyatt Regency Riverwalk

OPERATOR TRAINING COURSES: Water Credit Courses

Basic Water Works Operations: Terrell, January 5-7 Surface Water Production 1: Denton/Aubrey, January 12-14  Edinburg, February 23-25 Surface Water Production 2: Denton, February 17-19 Water Distribution: Edinburg, January 5-7  Gainesville, January 12-14  Rio Bravo, February 2-4

Water and Wastewater Credit Courses

Chlorinator Maintenance: Harlingen, January 12-14  Brownwood, January 20-22  Terrell, February 17-19 Customer Service Inspections: College Station, January 27-28 Pump and Motor Maintenance: Winnsboro, February 2-4 Water Utility Safety: Argyle, January 26-28  Texarkana, March 1-3

Wastewater Credit Courses

Basic Wastewater Operations: Harlingen, February 9-11 Operation of Activated Sludge Plants: Quitman, February 23-25 Wastewater Collections: Quitman, January 26-28 Wastewater Lab: Texarkana, January 13-15

Public Funds Investment Act Training PFIA Renewal: Fort Worth, March 21 PFIA Initial: Fort Worth, March 22

Advertiser Index

AIA Insurance Agency........................................... Page 8 Childress Engineers......................................................23 Daniel & Brown, Inc....................................................... 11 DN Tanks........................................................................13 DSA Coatings.................................................................22 Ferguson Waterworks...................................................20 Global Treat.................................................... Back Cover Hayes Engineering........................................................15 HD Supply......................................................................21 J.F. Fontaine & Assoc., Inc...........................................22 KSA Engineers...............................................................13 Maguire Iron...................................................................25 NewGen Solutions.........................................................19 Pittsburg Tank & Tower Maintenance Co., Inc..............6 RG3 Meters................................................................4, 19 Russell Drilling Co., Inc................................................13 Smith Pump Co., Inc......................................................15 Tabor & Associates, Inc................................................17 Tank Connection............................................................22 Texas Aquastore............................................................ 11 The Easement People...................................................17 TraC-N-Trol, Inc..............................................................22 Utility Service Group, Inc..............................................25 Velvin and Weeks..........................................................25

Quench — November/December 2015

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

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Gas Feed Systems

Fiberglass Shelter

Houston, Texas Chlorine Analyzers

Gas Detectors

Emergency Shut-Off Valves

The Industry Leader in Chlorine Disinfection Systems and Service _ _ _ _ _ _ _ _ _ _ _ Call 877-844-8802 www.globaltreat.com

Chemical Induction System

Automatic Valve

Chemical Feed Accessories

Tablet Feeders