Quality on Tap March 2013 by Texas Rural Water Association

Quality on Tap! March 2013

In This Issue: TRWA Board Unanimously Approves Bylaw Amendments on Redistricting Status Report on Senate Bill 573 EPA Expands CCR Rule to Include Electronic Delivery Options

TRWA Today TRWA Board of Directors

TRWA Staff

Officers James Morrison President Huntsville (At-Large) Clay Hodges Vice President Greenville (At-Large)

Wanda Gaby Treasurer Alba (Dist. 11) Tommy Carswell Secretary Lufkin (Dist. 14) Scott Adams Immediate Past President Ft. Davis (Dist. 2)

District Directors John Frantz Chris Boyd Michael Taylor Pat Allen Brian Macmanus Leahmon Bryant Charles Beseda Dwayne Jekel Barry Miller Roy Perkins Bill Goheen Kent Watson

Hartley (Dist. 1) Aubrey (Dist. 3) Brownwood (Dist. 4) Marion (Dist. 5) Harlingen (Dist. 6) Greenville (Dist. 7) Penelope (Dist. 8) Cameron (Dist. 9) Gonzales (Dist 10) Kaufman (Dist. 12) Mabank (Dist. 13) Bryan (Dist. 15)

At-Large Directors

Kent Smith Itasca

Established in 1969, the Texas Rural Water Association (TRWA) is a statewide nonprofit trade association with an active membership consisting of more than 750 municipal utility districts, special utility districts, nonprofit water supply corporations, 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. 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

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Fred Aus Executive Director

Allison Kaminsky Communications Director

Celia Aguirre Environmental Services Director Refugio Rodriguez FMT Specialist Deborah McMullan Source Water Protection Specialist

Janice Gibbs, CPA Finance Director Pam Cantrell Administrative Assistant Angela Harris Administrative Assistant

Lara Zent Deputy Executive Director and General Counsel Pauline Word Legal Assistant

Nickie Morgan, CMP Member Services Director Lance Harrell Information Technology

Michael Vollmar Professional Development and Training Director Melody Bennett Administrative Assistant Len Klandrud Instructor George Patterson Instructor Dian Phinny Instructor Larry Bell Technical Assistance Director Raymond Curtis Wastewater Trainer Alex Eaves Wastewater Technician Paul King Circuit Rider Steven Mindt Technical Assistance and Training Specialist James Smith Circuit Rider William White Circuit Rider

Quality On Tap! Features: 6

Status Report on Senate Bill 573

TRWA Fights to Help Members Retain Eminent Domain Authority

By Allison Kaminsky, Texas Rural Water Association As anticipated, the expedited release resulting from the enactment of Senate Bill 573 has impacted several TRWA members.

On the Cover: Caddo Lake State Park © Texas Parks and Wildlife.

In Every Issue: President’s Message

Letter from the Executive Director 5 Keep It Legal 10 Answers to your legal questions

By Pauline Word, Texas Rural Water Association Senate Bill 18 required all entities claiming authorization to exercise the power of eminent domain in Texas to register with the state comptroller by December 31, 2012.

TRWA Goes to Washington

TRWA Board Unanimously Approves Bylaw Amendments on Redistricting

Is Your Cash Register Working Properly?

EPA Expands CCR Rule to Include Electronic Delivery Options

With equal represention in mind, the TRWA board approved a proposition to redistrict membership and reduce the size of the board.

Advertiser Index 26 Plan Ahead 27 TRWA’s Calendar of Events

New Ulm WSC Benefits from Free Training Program Offered by TRWA

By Raymond Curtis, Texas Rural Water Association. New Ulm WSC participated in TWDB and TRWA programs to cost-efficiently address and reduce sanitary sewer overflows.

Ask Larry 22

Answers to your technical questions

TRWA board members and staff attended NRWA’s annual Rural Water Rally in Washinton D.C.

By Paul King, Texas Rural Water Association Water meters have always been thought of as a water utility’s cash register. Is your cash register saving or losing you money?

By Allison Kaminsky, Texas Rural Water Association The EPA has made it easier for systems to deliver their CCRs to customers by allowing certain forms of electronic delivery.

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President’s Message The convention is just around the corner. I hope you have made arrangements to attend. Looking at the early registrations, this is shaping up to be one of our largest conferences ever. This will be a perfect opportunity to “get out of your box.” I challenge you to come a day early and take part in the Legislative Rally. You are well represented by a top notch lobby team at the Capitol on a regular basis, but the Legislators and their staff need to see and hear from you. Make an appointment with your representative and your senator, come to our orientation at the Legislative Briefing Breakfast, learn what our message is and “CHARGE THE HILL!” You will enjoy it and you can help the rural Texas cause. The concurrent workshops have been well planned and look to have something to offer everyone. Don’t forget, we get most of the topics for the workshops from the suggestions made on the critique sheets. We take your critiques and your suggestions seriously. If you didn’t see what you wanted at this conference, suggest it on the critique for next year. You might be surprised.

“You are well represented by a top notch lobby team at the Capitol on a regular basis.”

By all means, get caught up with your old friends, but make an effort to make some new friends as well. Sit with someone you don’t know at lunch or at the banquet. Often times some of the best lessons learned at these conferences are at lunch or in the hall at the breaks or in the Exhibit Hall. See You Soon,

James Morrison, President Texas Rural Water Association Board of Directors

Fight for the Waterhole, Frederic Remington © The Museum of Fine Arts, Houston 4

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Letter from the Executive Director There’s a new decoration at the TRWA office building. It is a print of a Frederic Remington painting, titled “Fight for the Waterhole” (see page 4). The subject matter of the painting comes in part from a story told by a Texas Ranger to Frederic Remington in the bar of the Menger Hotel in San Antonio many years ago. The painting shows several men perched on the edge of a depleted water tank with their guns drawn, protecting a dwindling resource. I have had this print hanging in my work place for the past 15 years because it helps inspire me every day in the water industry. Now, TRWA staff can see it and be even more inspired to fight every day for the interests of TRWA’s members. With the Texas Legislature now in full swing and the “sequester” and other funding challenges in Washington, D.C., it is the right time for all TRWA members to unite in our “fight for the waterhole.” That will mean fighting at the State Capitol to ensure funding for water projects that benefit rural water. It will mean fighting to protect our rate payers and the investments that have been made in our members’ systems as others seek creative ways to take what we have paid for. Those assaults on our members can come in the form of fireflow legislation, legislation to expand the reach of last session’s SB 573 or any number of ways. It will mean fighting for common-sense regulations at the federal and state level and fighting for funding for TRWA programs that benefit rural water and wastewater utilities. We’ll be discussing all of these topics and more at TRWA’s 44th Annual Convention, March 20-22. Join us for our Rural Water Day on Wednesday, March 20, as we head to the Capitol to make our voice for rural water heard. Participate in the PAC fundraising activities–who knows, there might even be an opportunity to get your own “Fight for the Waterhole” print. Attend the Annual General Session and Business Meeting while we work to make the association more unified than ever. Go to the workshops to learn about how TRWA is fighting for you on these and many other issues and what you can do to help.

“It is time for all TRWA members to unite in our ‘fight for the waterhole.’”

Above all, know that the TRWA Board and staff are working – and fighting – for rural Texas’ waterhole on your behalf every day.

Fred Aus, Executive Director Texas Rural Water Association

Quality on Tap! - March 2013

Status Report on Senate Bill 573 By Allison Kaminsky, Texas Rural Water Association

lot has happened since Senate Bill 573 was enacted by the 82nd Legislature in 2011. As anticipated, the bill has directly affected several TRWA members and impacted water and wastewater service areas industrywide in Texas. To date, six TRWA members have had land decertified under the new law: Aqua WSC, Crystal Clear WSC, DobbinPlantersville WSC, G&W WSC, RCH WSC and Tri-Community WSC. Three of these members have appealed the Texas Commission on Environmental Quality’s (TCEQ) decision in state district court, and one also has a federal lawsuit pending against TCEQ. The law amends the Water Code to authorize certain landowners to petition TCEQ to have their property removed from the existing retail service provider’s certificate of convenience and necessity (CCN), which designates the provider’s service area. So what makes SB 573’s “streamlined expedited release” different from previously existing law? It applies to landowners with 25 or more acres in specifically identified counties that are not receiving water or wastewater service, does not require the petitioner to demonstrate that an alternative service provider is available and TCEQ cannot consider whether the CCN holder is capable of providing service to the property. As long as all of the applicability requirements are met, TCEQ is required to grant a petition for streamlined expedited release within 60 days. TCEQ may require an award of compensation by the petitioner to the decertified retail public utility before another retail public utility may serve the area; however, compensation is not a condition of release. SB 573 took effect September 1, 2011 and affected counties with one million or more population and their adjacent counties. Smith County is also affected, though not meeting either of these constraints. The 33 specified counties covered by the law are as follows: 6

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Atascosa, Bandera, Bastrop, Bexar, Blanco, Brazoria, Burnet, Caldwell, Chambers, Collin, Comal, Dallas, Denton, Ellis, Fort Bend, Galveston, Guadalupe, Harris, Hays, Johnson, Kaufman, Kendall, Liberty, Montgomery, Parker, Rockwall, Smith, Tarrant, Travis, Waller, Williamson, Wilson and Wise. As of the publication of this article, 42 decertification petitions have been filed, and 27 have been granted by TCEQ. Six petitions were returned to the landowner for reasons such as insufficient mapping, no proof of land ownership, land not 25 contiguous acres and failure to demonstrate service not being provided. An additional petition was returned for being filed in an ineligible county. Four other petitions were pulled by the petitioner, but two of these were later refiled. In addition to the six TRWA members who have had land decertified, petitions have also been filed against five other members, three of which were returned or pulled by the petitioner. The other two are currently pending. Fifteen petitions have been filed against investorowned utilities (IOUs). One IOU in Smith County has garnered five petitions alone. Fourteen petitions have been filed against water supply corporations and seven against districts. Three cities also have been targeted. Clearly, the law is riddled with concerns for Texas systems and the impact has been wide. In December, TRWA filed comments on behalf of its member water systems on TCEQ’s rule proposal on implementing SB 573. The majority of TRWA’s comments addressed the rulemaking portions on timing of compensation for systems that have been decertified. TRWA understood that the intent of the Texas Legislature was that water and sewer systems would receive compensation, if warranted under the law, upon decertification of a portion of their service area. However, although 27 systems have been decertified since the law’s effective date, none have received

compensation. Even worse, the compensation analysis has not yet been initiated for any of these systems. Unlike the original expedited petition procedure, the petitioner does not have to provide a timeframe for needing service, nor does there need to be an alternative provider available to serve the area. Because of this, the timeframe for new service that would trigger compensation cannot be readily anticipated and can, in some cases, be several years from the time of decertification. TRWA asked TCEQ to revise its rule proposal so that water and sewer systems may be timely compensated for their loss of investment or that a timely compensation decision may be made at the time of the loss. TRWA requested a compensation determination no later than 90 days after TCEQ grants the petition. TRWA believes the factors in Texas Water Code Subsection 13.254(g) and 30 TAC Subsection 291.113(k) for determining compensation, such as debt service, impact on future revenues, expenditures for planning, contractual obligations and value of facilities, cannot be determined several years after decertification as circumstances will change. TRWA stressed that, in being unable to adequately determine compensation, the Legislature’s intent would be frustrated. There would be no guarantee that a retail public utility would be “made whole” and the commission runs the chance of impairing service and increasing costs to the remaining customers as a result of the decertification.

retail public utilities. On a positive note, TCEQ included an item in their rule proposal to make notification of a decertification petition to the CCN holder mandatory. From the outset, TCEQ has notified CCN holders by courtesy copy when responding to the petitioner. However, the law as passed does not require the petitioner or TCEQ to notify the CCN holder when a petition is filed. TRWA supports TCEQ’s proposal to make this mandatory. TCEQ held a public hearing on the rule proposal December 4, and the proposal is slated for adoption in March. To safeguard your system from SB 573 and needless land decertification, identify areas in your CCN where opt out requests are likely and then improve the availability of service to these areas. You should also keep abreast of neighboring utilities’ service plans, land use plans, impact fee studies and system capacities. Survey competitor utilities’ rates, connection fees and line extension policies and adjust your rates and fees where possible to stay competitive. You can also take efforts to educate the public on the “true cost” of service, such as incurring the cost of paying a city’s or municipal utility district’s tax rate even though connection fees and rates may be lower. You may even consider changing policies regarding service to new development, such as improving cost to new developers, contributing to infrastructure improvements, etc.

“TRWA’s lobby team is playing a defensive roll in regards to further unfavorable CCN legislation.”

TRWA also requested that the proposed rules be revised to clarify that the current definition of “service” in the Texas Water Code and in TCEQ’s rules is being applied when TCEQ reviews petitions filed. In this definition, “service” is understood to mean any act performed, anything furnished or supplied, and any facilities or lines committed or used by a retail public utility in the performance of its duties to its patrons, employees, other retail public utilities and the public, as well as the interchange of facilities between two or more

TRWA will continue to strongly oppose any bill that seeks to expand SB 573. TRWA’s lobby team is playing a defensive role in regards to further unfavorable CCN legislation. If you have any questions about this article or about SB 573 and how it affects your system, contact our Legal Department at 512-472-8591.

Quality on Tap! - March 2013

TRWA Fights to Help Members Retain Eminent Domain Authority By Pauline Word, Texas Rural Water Association

n 2011, the Texas Legislature enacted a law that substantially changed eminent domain practices for both public and private entities. Senate Bill 18 was introduced by Senator Craig Estes, R-Wichita Falls, and was passed during the 82nd Legislature. The bill, effective September 1, 2011, required any public or private entity claiming authorization to exercise the power of eminent domain in Texas to submit a letter to the state comptroller by no later than December 31, 2012. Those who failed to submit their letter, which registered the authority and explained the legal basis for its assertion of such authority, will lose their eminent domain power as of September 1, 2013. SB 18 also amended several procedural requirements, including that a decision to condemn must clearly state the intended public use of the property. It also affected the initiation of condemnation, requiring that a governmental body authorize the proceeding at a public meeting by a record vote. Because all TRWA district and water supply corporation members have this authority pursuant to Section 49.222 of the Texas Water Code, TRWA immediately took action to promote compliance within our membership. Those who frequent our website may have noticed on our home page a link to more information about the bill and instructions on how to register with the state comptroller. Attendees at any of our many conferences would have heard from our staff on the issue. Field staff also urged members during their regularly scheduled visits to take action so as not to lose their authority. In October 2012, TRWA began sending direct alerts to members via e-mail. Those who did not have a valid e-mail address on file received the notice by fax or ground mail in November. On November 15, the comptroller

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published a list of entities that had filed up to that date on their website. TRWA crosschecked it with our membership list to find that only half of our members had filed at that time Field staff took action by calling each system on our identified list and urging our members to file in the last weeks of the year. As of the January 29 published list, we had achieved 100 percent compliance by our district members, and compliance by all but three cities and 19 WSCs. What you do not know is that on November 5, 2012, TRWA submitted three separate filings to the state comptroller on behalf of our members listing all city, district and WSC members and their respective eminent domain statutory authority. The comptroller accepted this list and will include it in the agencyâ&#x20AC;&#x2122;s report â&#x20AC;&#x153;as filed by TRWA on behalf of its members.â&#x20AC;? This list can be seen online at http://www.window.state.tx.us/sb18compliance/ lists.php. Though the comptroller is unsure of how the Legislature will interpret compliance in this way, we hope this will be a precautionary measure to protect those who did not file. The comptroller has submitted a report listing all entities that filed to the governor, the lieutenant governor, the speaker of the House of Representatives, the presiding officers of the appropriate standing committees of the Texas State Senate and the House of Representatives, and the Texas Legislative Council. TRWA will keep our members abreast of the situation and will continue to monitor eminent domain issues during the 83rd Legislative Session and going forward. If you have any questions about this article, please feel free to contact our legal department at 512-472-8591.

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

Over the weekend, vandals used a high-powered rifle to shoot our water tower. The incident left two 2-inch holes in the structure and caused water loss. We drained the tank and were making the repairs when the person came back and shot two additional holes. We are facing substantial bills to repair the damage and are working with our insurance agent to assess the situation. We also contacted local law enforcement officials, but they are not aware of what authority they have to pursue and prosecute the vandal. Is there anything in the law that addresses this type of vandalism/terrorism? Are we required to report this to any other regulatory authorities? A: I’m sorry to hear about these horrible events at your system. I am providing you with various sections of Texas and federal law that we found in our research that I hope will assist you and your local law enforcement office with addressing this matter. Section 341.033(i) of the Health & Safety Code requires public water systems to immediately notify TCEQ’s region office of any act of terrorism or act that results in damages against the system. TCEQ’s region office uses their discretion in determining whether to report the matter to the state or federal homeland security agencies or other agencies that investigate terroristic acts. TCEQ also advises that you notify local law enforcement, which you have already done. Texas Penal Code Section 22.07 addresses acts of terrorism. Subsection (a)(4) provides that a person commits an offense if he/she threatens to commit any offense involving violence to a person or property with the intent to “(4) cause impairment or interruption of public communications, public transportation, public water, gas, or power supply or other public service.” An offense under this subsection is a felony of the third degree. 10

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Another Texas law to share with your local law enforcement is Section 28.03 of the Penal Code. My reading of this section as a whole is that shooting the tower could be considered a “state jail felony,” regardless of the amount of pecuniary loss under Section 28.03(a)(4)(D) because the offender caused “impairment or interruption of public communications, public transportation, public gas or power supply, or other public service,” which includes public water supply subject to regulation by TCEQ. The part of this section that is used more frequently for any type of tampering or damage caused to a water system is Section 28.03(a) (3)(B), which classifies an act against a public water supply that causes impairment or interruption of service as a Class A Misdemeanor, regardless of the amount of pecuniary loss. Another part of this Section, Subsection 28.03(e), provides that it is a felony in the third degree if a person causes property damage that is more than $20,000 and less than $100,000, and provides that if there are multiple incidents, the damages may be aggregated. To give you an idea of what penalties may be imposed for these types of felonies in Texas, Chapter 12 of the Penal Code provides that a person who commits a state court felony may receive a sentence of 180 days to two years in jail, plus up to $10,000 in fines. Penalties for a felony in the third degree include two to 10 years of jail time, plus up to $10,000 in fines. Subsection 12.35(c)(1) also states that a person who is found guilty of a state court felony must be punished for a third degree felony if a deadly weapon was used. The federal law on this issue comes with harsher penalties, as set forth in 42 United States Code Annotated Section 300i-1, if it can be proven that the person intended to contaminate the system or interfere with operations with the intent of harming persons.

It provides that a person who “tampers” with a public water system shall be imprisoned for not more than 20 years or fined, or both. Civil penalties may be imposed for up to $1,000,000. “Tamper” is defined as (1) to introduce a contaminant into a public water system with the intention of harming persons; or (2) to otherwise interfere with the operation of a public water system with the intention of harming persons.” Q: We are a small WSC and do not have the funds to maintain a full-time office presence in the community. We have a secure drop-box in a local office strip center where members may deposit their monthly water payments. One of our members recently complained and said that we are required to have an office. Is there a requirement in the law that we have an office and maintain regular office hours? A: No, there is no requirement that a water supply corporation maintain an office. However, you must have a secure place where you keep the water system’s records, and if the system is exempt from ad valorem taxation, you are subject to the Public Information Act. This means, if requested, you are required to make the water system’s records available for a member of the public to review. Some small systems keep their records and hold board meetings in the home of a board member. Your member may have been aware of a requirement in TCEQ’s rules that requires certain investor-owned utilities to maintain a local office. See 30 Texas Administrative Code Section 291.81(d)(3). Water districts are also required to maintain an office and office hours. Texas Water Code Section 49.062(a) provides that a district board designate and maintain one or more regular offices for conducting the business of the district and maintaining the records of the district, which may be located either inside or outside the district’s boundaries. Q: May WSC board members receive free water service? A: TRWA recommends against it. There are limitations on the amount of compensation that

board members of water supply corporations may receive under the law. Furthermore, the water supply corporation’s members typically do not respond well to board members setting rates that they do not pay themselves. Texas Water Code Sec. 67.006 sets limitations on the amount of compensation that officers of a water supply corporation may receive and does not provide any compensation provision for directors who are not officers. I also recommend that you check your bylaws on this issue. The USDA model bylaws, which many water supply corporations have adopted, provides that directors shall not receive any stated salary for their services, except as provided for by state law.

“There are limitations on the amount of compensation that board members may receive under the law.” Q: An individual is planning to construct a residence within our water supply corporation’s CCN, but our water main doesn’t extend to the planned home site. The individual has volunteered to install the necessary water main at his expense and is aware that it will become the WSC’s property and responsibility at some point after installation and connection to the existing main. We are preparing a legal agreement and I need to know if there is a state statute that governs the timing of the change in ownership for that new water main section. Is it immediate, after one year, two years, etc.? A: To my knowledge there is not a statute or rule that governs this issue, but TRWA recommends that you include in the agreement that the transfer take place immediately upon completion of the construction. TRWA’s sample tariff addresses this issue in Section F, pertaining to non-standard service requirements: Continued on page 12 Quality on Tap! - March 2013

Continued from page 11

7. Dedication of Water System Extension to WSC. a. Upon proper completion of construction of all on-site and off-site service facilities to meet the level and manner of service requested by the Applicant (the “Facilities”), the Facilities shall become the property of the WSC. The Facilities shall thereafter be owned and maintained by WSC subject to the warranties required of Applicant under Subsection (b). Any connection of individual customers to the Facilities shall be made by the WSC. b. Upon transfer of ownership of the Facilities, Applicant shall warrant materials and performance of the Facilities constructed by Applicant for ____months following the date of the transfer.

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This language is also included in the nonstandard service agreement in TRWA’s sample tariff that may be useful to you in drawing up this agreement. We also have included a sample line dedication agreement as part of this package.

TRWA Goes to Washington The National Rural Water Association (NRWA) held its annual Rural Water Rally in Washington, D.C. on February 11-14, 2013. TRWA was well represented, with TRWA’s National Board member Kent Watson, TRWA’s Executive Board members James Morrison, Clay Hodges, Wanda Gaby and Scott Adams, and TRWA Executive Director Fred Aus in attendance. The TRWA team visited the offices of all thirty-six Congressional Districts from Texas, as well as the offices of both U.S. Senator John Cornyn (R-TX) and U.S. Senator Ted Cruz (R-TX). TRWA members advocated for funding for the services that TRWA provides to water and wastewater systems statewide. A highlight of the Capitol visits was time spent with U.S. Representative Ralph Hall (R-Rockwall), a longtime friend and champion of rural water. This is another example of the TRWA Board fighting for our members’ interests every day.

Congressman Ralph Hall, longtime friend and champion of rural water, meets with TRWA during the Rural Water Rally in Washington D.C.

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Quality on Tap! - March 2013

TRWA Board Unanimously Approves Bylaw Amendment on Redistricting

arly last year, TRWA Board President James Morrison met with some members who expressed concern about the lack of equal representation among TRWA’s districts. Since that time, the Board has gone through several drafts and revisions of a redistricting proposal that would adequately meet the needs and desires of the membership. A version of that proposal, titled Proposition 1, was included in the 2013 Annual Convention brochure that you should have received in late December. Though Proposition 1 was approved by the Board, a second proposal, Proposition 2, was submitted for consideration as an alternative. On January 30, the TRWA Board held a special meeting to discuss the redistricting issues and the proposals, and a compromise was reached and unanimously approved. The revised proposition is based on Proposition 2, but adopts language from both proposals to accomplish the same goals of equitable representation. It reduces the Board from 18 to 14 members and eliminates the At-Large Director positions, Associate Director positions

and the use of proxy voting for TRWA Board positions. This proposition, now titled Proposition 1 (Modifed), was sent out to membership in early February and posted on TRWA’s website. Membership will have the opportunity to vote on these Bylaws amendments either in person or by proxy at the Annual Convention in conjunction with the District Caucuses on Friday, March 22, 2013. The Board has recommended the approval of Proposition 1 (Modified), and feels it will further unify the membership and carry us toward our goal of “Progress through Unity.” If approved, the Bylaws amendments will become effective immediately; however the TRWA Board of Directors will need to determine an implementation timeline and transition process. Please review the modified Proposition 1 (page 15) for your reference. TRWA and its Board ensure you that your voices are heard and we are proud to have united on this significant issue in response to your needs. Please feel free to contact us or your district director if you have any questions.

D S A C o a t i n g s , I n c . • D B A D e e p Sou t h Coa t i n g s

Rural Water Systems Blasting -- Painting Inspections Power Washing/Disinfection

Deep South Coatings Established 1983

P . O .- B o x 3 4 7 6 • L u f k i n , T e x a s 7 5 9 0 3 • ( 9 3 6 ) 6 3 4 - 3 1 7 6

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Proposition 1 (Modified) Amend the TRWA Bylaws as follows:

Amendment #1 Eliminate At-Large Director Positions Article 8.04 is deleted and all relevant Articles of the TRWA Bylaws are amended to delete any and all references to At-Large Director Positions. (Proviso: If approved, this amendment will reduce the size of the board. It shall become effective the sooner of March 2014 or the TRWA Board of Directors implementation timeline and transition.)

Amendment #2 District Designation Article 7.01 of the TRWA Bylaws is amended to read as follows: District Designation. The state shall be divided into fourteen (14) geographical districts, with approximately equal number of active member systems to the extent possible, for the Association. Each member system shall be assigned to that district in which the member systemâ&#x20AC;&#x2122;s principal office is located. The Board of Directors of the Association may modify the boundaries of the geographical districts from time to time and may reassign Members to the geographical districts as modified. Article 8.01 of the TRWA Bylaws is amended to read as follows: General Powers. The affairs of the Association shall be governed by a fourteen (14) member Board of Directors. The Board of Directors may establish such committees and confer such powers thereon as the Board shall determine. The Board of Directors may hire an Executive Director and confer such powers on the Executive Director as the Board shall determine. (Proviso: If approved, all relevant Articles of the Bylaws are amended accordingly. This amendment will reduce the number of districts from 15 to 14 and also reduce the size of the Board to have 14 district directors. It shall become effective the sooner of March 2014 or the TRWA Board of Directors implementation timeline and transition.)

Amendment #3 Eliminate the Use of Proxy Voting Article 6.04 of the TRWA Bylaws is amended to eliminate voting by proxy. All relevant Articles of the TRWA Bylaws are amended to delete any and all reference to proxy voting (Proviso: If approved, the amendment will be effective for the next TRWA election process. The Board of Directors shall determine new election procedures utilizing the TRWAâ&#x20AC;&#x2122;s recommended election procedures as a template including voting by absentee ballot.)

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New Ulm WSC Benefits from Free Training Program Offered by TRWA By Raymond Curtis, Texas Rural Water Association

anitary sewer systems that are properly designed, operated, and maintained are meant to collect and transport all of the sewage that flows into them to a wastewater treatment facility for appropriate treatment. However, if there is significant infiltration or inflow, the collection system is poorly operated and maintained or the system lacks adequate capacity to collect, store or treat flows for treatment, sanitary sewer overflows (SSOs) can occur. An SSO is an unauthorized discharge of untreated or partially treated wastewater from a collection system or its components (e.g., a manhole, lift station, or cleanout) before reaching a wastewater treatment facility. SSOs have a variety of causes, including but not limited to blockages, line breaks, sewer defects that allow storm water and groundwater to overload the system, lapses in sewer system operation and maintenance, power failures, inadequate sewer design and vandalism. SSOs are a problem for most wastewater collection systems. This is especially true of smaller wastewater systems that do not have the resources to effectively maintain the collection system. The Texas Commission on Environmental Quality (TCEQ) is strongly encouraging all systems to correct all infiltration and inflow problems. While TCEQ recognizes that the total elimination of SSOs is unlikely, the agency has launched an initiative to reduce the number of SSOs that occur each year in Texas and to address them before they harm human health, safety or the environment. To assist small wastewater systems in evaluating their collection system, the Texas Water Development Board (TWDB) has a program that loans smoke testing equipment to the systems for 30 days. Smoke testing is a preventative maintenance practice that pinpoints the location of potential points of inflow and infiltration. This enables the system 16

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TRWA’s USDA—Rural Development training program allows rural systems to obtain training at no cost.

to set priorities and budget for repairs to areas needing the most rehabilitation. The New Ulm Water Supply Corporation, which also owns and operates a complete wastewater system, requested this assistance from TWDB. They also contacted Raymond Curtis, wastewater trainer for the Texas Rural Water Association (TRWA) about using this as an opportunity for training for their system, as well as for other utilities in the area. Curtis contacted Scott Galaway, field representative in the Inspection and Field Support Services Division at TWDB, and explained TRWA’s United States Department of Agriculture–Rural Development technical assistance and training program. Through the program, TRWA is able to provide on-site technical assistance to wastewater systems to help reduce exposure to waste-related health and safety hazards and also to enhance the sustainability of wastewater systems in rural and small communities. He requested that New Ulm WSC training be open to all surrounding systems. Galaway was very encouraging and receptive

to this. With his approval, TRWA staff printed and mailed brochures to the surrounding systems inviting them to attend this free training. A total of seven operators representing six systems came to New Ulm for this training. After an introduction by Curtis, Galaway reviewed the need for smoke testing and explained the benefits. He then showed the equipment and explained its operation. After a thorough review of the equipment, operation, testing and safety, the class then went into the field. They then tested several wastewater lines in the New Ulm WSC system. All students received hands-on training with the equipment. After completing the four hour class, each student received four hours of TCEQ Wastewater continuing education credit.

identify areas of the sewer system that need improvement. The USDA â&#x20AC;&#x201C; Rural Development training program allows rural systems to obtain training on this method and the equipment used at no cost. To receive more information on the TWDB equipment loan program, contact the Texas Water Development Board at 281895-0722. To learn more about the USDA â&#x20AC;&#x201C; Rural Development wastewater training program, contact the Texas Rural Water Association at 512-472-8591.

The TWDB program of loaning smoke testing equipment to systems and the expertise of their field staff can be very beneficial to rural wastewater systems. Smoke testing is the most efficient and cost-effective way to locate and

Quality on Tap! - March 2013

Is Your Cash Register Working Properly? By Paul King, Texas Rural Water Association

he water meter has always been thought of as a water utility’s cash register. But just as a meter helps you properly charge for water use, a poorly maintained or worn out water meter can actually lose you money. Save your system money and water by keeping your meters in good repair and by implementing a meter change out program. To adequately maintain your meter, you must first understand how they work. The most common water meter used for a residential customer is the positive displacement (PD) meter. PD flow meters measure fluid flow by precision-fitted gears or rotors as flow measuring elements. These elements have known and fixed volumes that are displaced between the gears and the rotation of the rotors are proportional to the volume of the fluid being displaced. These meters work well with viscous fluids or other fluids with little to no straight run requirements. Two common methods of positive displacement measuring are Oscillating Piston meters and Nutating Disk meters. Both methods rely on the water to physically displace the moving measuring element in direct relation to the amount of water that passes through the meter. The piston or disk moves a magnet that drives the register.

PD meters normally have a built-in strainer to protect the measuring element from rocks or other debris that could stop or break the measuring element. PD meters normally have bronze, brass or plastic bodies with internal measuring chambers made from molded plastics and stainless steel. Often, brass meters contain anywhere from 5 to 40 percent zinc, which is added for tensile strength, and lead. With lead rules changing, some meter companies are staying ahead of the curve by coating the inside of brass meters with plastic to prevent lead from leaching when water flows through the meter. A PD meter is an accurate way to measure water flow for your customer but, as is the case with anything with moving parts, they can wear out. As the meter wears out, it is always to the customer’s advantage. Meters will usually not read higher but instead will read lower, thus increasing water loss and a loss of money for the water system. A good rule of thumb on a meter change out program is to replace your meter after 10 years or a million gallons, whichever comes first.

“A m e t e r r e p l a c e m e n t program does cost money, but the investment will be returned in the long run.”

PD meters are generally very accurate at low to moderate flow rates typical of residential and small commercial users, and are common in sizes from 5/8 of an inch to two inches. Because displacement meters rely on all water flowing through the meter to “push” the measuring element, they generally are not practical in large commercial applications requiring high flow rates or low pressure loss. 18

Quality on Tap! - March 2013

For example, let’s assume a household uses 6,000 gallons a month and your water system charges $3.00 per thousand gallons. If your water meter is reading 85 percent, this would result in a loss of $32.40 a year for this household. Multiply that by the amount of customers you have and the losses in your revenue can be quite significant. Other ways meters are losing revenue for water systems is that many water systems are not using the meter equivalents set by the American Water Works Association (AWWA). These have been an industry standard for

Figure A

Meter Size in Inches 5/8 x 3/4 3/4 1 1 1/2 2

AWWA Meter Equivalent 1 1.5 2.5 5 8

many years; however, some systems charge one base rate for all meters regardless of meter size. For larger meter equivalents please consult TRWA’s sample tariff. (See figure A) By charging based on meter size, the normal household (5/8” x ¾”) is charged at whatever your monthly minimum is, let’s say $24.00. If a customer had a full ¾ inch meter it would be $36.00 monthly minimum, up to the 2 inch meter which would be a monthly minimum of $192.00. By using the correct meter equivalent, the customers with larger meters end up paying for the full capacity the system has to maintain. The Texas Commission on Environmental Quality (TCEQ) allows a water system to charge the equivalent rate because they count a 2 inch meter as eight customers and they expect the water system to have the required capacity to supply these larger meters. So instead of requiring 200 gallons of ground storage tank capacity for a normal household meter, the system would have to maintain 1,600 gallons of ground storage tank capacity for a customer with a 2 inch meter. This carries over to elevated storage tank, pressure tank and pumping capacities also.

it easier to track and reference. Digitized information makes it difficult for the customer to refute usage and charges when office staff can look up the exact day and time the water was used from one sample meter reading. Increasing revenues for a water system in these hard economic times is not easy, and sometimes you have to spend money to make money. A meter replacement program does cost money, but the investment will be returned by the properly working meter in the long run. Forward thinking systems can replace meters through their rates if they depreciate the cost of the meters over the 10 year replacement period. The meter equivalents will also increase revenues for systems that are not using them at this time. In the long run, if you take care of your cash register and keep it working properly it will take care of you.

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Another option would be to switch to a remote read technology or Automatic Meter Reading (AMR). Whether it is due to adverse weather, such as hurricanes or wildfires, or the systems have meters in areas that are difficult to read due to aggressive animals or barbed wire fences, many water systems are moving toward these new technologies. These innovations have made it as easy as driving by the house to collect the system’s meter readings. It has also made it easier on office staff by generating computerized information on the customers’ day to day usage, making Quality on Tap! - March 2013

EPA Expands CCR Rule to Include Electronic Delivery Options By Allison Kaminsky, Texas Rural Water Association

exas Rural Water Association (TRWA) members will be pleased to know the U.S. Environmental Protection Agency (EPA) has validated the option to electronically deliver Consumer Confidence Reports (CCRs). In January 2013, the EPA announced that certain forms of electronic delivery are in compliance with regulation, adopting a more flexible interpretation of the requirement to “mail or otherwise directly deliver” the report to customers. We support this movement and believe the expanded interpretation of the CCR Rule’s delivery option will make doing business easier and more efficient for our membership. Over the years, many TRWA members have voiced their desire to deliver these reports electronically. When the EPA began its Retrospective Review of the CCR Rule in October 2011, TRWA staff began actively advocating on behalf of our membership, noting that there has been much advancement in technology and there are more communications tools at our disposal than there were when the rule was defined in 1998. Many other stakeholders also shared this belief, and the EPA began evaluating several electronic delivery methods to determine which, if any, met the existing requirements set forth in the original rule. The Retrospective Review was completed in December 2012, and the EPA concluded that the delivery requirement is not restricted to post office or hand delivery, in so far as the delivery option chosen is providing the report directly to customers and that the system is making a “good faith effort” to reach non-bill paying customers and meeting multilingual requirements. They did not change or replace any existing requirements; instead, they reviewed the language already in place and provided clarification on their interpretation and also provided recommendations on how to meet them. There are two approaches that are currently allowable under the rule: 20

Quality on Tap! - March 2013

1. Paper CCR delivery with a customer option to request an electronic CCR 2. Electronic CCR delivery with a customer option to request a paper CCR Though the allowance for electronic delivery was made, the EPA notes that not all forms of electronic delivery are consistent with the requirement to “directly deliver” the report to each customer. For example, the use of social media to circulate CCRs is not in line with the requirement, as it would require customers to sign up for a membership-based network to receive the information. The use of automated phone calls would also not comply, due to the fact that the entire content of the report could not be provided in the phone call. Further, if the system is aware of a customer’s inability to receive an electronic report, the system must provide the CCR in an alternative fashion. Paper or electronic communication providing a link to the report online must have a URL that directly links to the report in its entirety prominently displayed, and must also have a notice explaining the nature of the link. If the link requires further navigation on the customer’s part to access the full report, this method is not in compliance. Currently, the following methods of delivery are explicitly approved by the EPA: • Mail with complete paper copy • M ail with notification that CCR is available on website via a direct URL containing the complete CCR • E -mail to a valid e-mail address with a direct link to the URL containing the complete CCR • E -mail to a valid e-mail address with the complete CCR included as an attachment • E -mail to a valid e-mail address with the complete CCR embedded as an image within the e-mail

Electronic delivery options not considered above are not necessarily out of compliance. If a system would like to employ the use of additional delivery options, it is recommended that you consult with the EPA first to ensure it meets the intent of the rule. Before switching over to electronic delivery of your CCR, there are a few things to consider. First, you should reach out to your consumer base and provide advance notice of the change in your delivery approach. This will give your customers the opportunity to voice any concerns and allow them to designate a preferred method of delivery. You may also want to gradually move over, first providing a combination of paper and electronic delivery. You should also track any e-mail failure notifications and manage your database regularly. Recipients with an invalid address should receive the report by an allowable alternative means. Finally, if you are using a database associated with e-billing, consider sending a separate e-mail dedicated to the delivery of the CCR, as opposed to attaching it to a water bill. Some customers employ automatic payment and do not open their e-bills. We recognize that the electronic delivery option is more convenient and cost-effective, providing relief for rural and smaller systems on a budget. Systems switching over to electronic delivery will save on printing and mailing costs, and will consume less of our limited natural resources. Providing the report online can also increase your readership and encourage the open dialogue between you and your consumer base about water quality. Customers will have access to more timely information, as well as more information beyond what is required.

customers would be able to provide an annual notice to customers via public posting or door to door delivery stating that the report is available upon request. TRWA advocated to the Governor’s Office that this waiver would be very helpful to small water systems, while still protecting the public’s ability to obtain this information. If the Governor issues this waiver, small water systems will have additional options in the way they provide the CCR to their customers. TRWA will continue to support membership in your desire to more efficiently conduct business in ways that are both beneficial to the system and the customer. If you have any questions about this article, please contact us at 512-472-8591.

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Additionally, Governor Perry has received a request to waive the customer delivery requirement for systems serving fewer than 10,000 customers, which he is authorized to do under federal law. This waiver would allow systems serving between 500 and 9,999 customers to publish their CCR in a local newspaper and inform customers that a report will not be mailed or otherwise directly delivered, but will be made available upon request. Systems with less than 500 Quality on Tap! - March 2013

Ask Larry

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

Our system is run by two Class “C” operators with the help of our board president. We do not have a manager. Are these operators the only employees authorized to read the well meter as part of their job description? Also, should the data associated with flushing the lines once a month be read by Class “C” operators and sent to the state? A: There are certain functions that may only be performed by the level of operator required for your size and type system. In April 2012, TCEQ updated its staff regulatory guidance document on the issue of what duties must be performed by a licensed operator and what duties may performed by another individual “under the direct supervision” of a licensed operator. An individual must hold a Class “D” or higher PWS operator license to perform any process control duties. The guidance document states if an individual holds a license but does not hold the highest level of license that is required for the system according to 30 TAC§290.46(d), the individual always must perform process control duties under the direct supervision of an operator with the required level of license for that system. Process control duties are defined in 30 TAC §290.38 (63) as “[a]ctivities that directly affect the potability of public drinking water, including: making decisions regarding the dayto-day operations and maintenance of public water system production and distribution; maintaining system pressures; determining the adequacy of disinfection and disinfection procedures; taking routine microbiological samples; taking chlorine residuals and microbiological samples after repairs or installation of lines or appurtenances; and operating chemical feed systems, filtration, disinfection, or pressure maintenance equipment; or performing other duties approved by the executive director.”

Quality on Tap! - March 2013

TCEQ’s guidance document states that the following are not considered process control duties and can be accomplished by an unlicensed individual under the direct supervision of a licensed operator who holds an applicable level of license for the system: • line leak repair • water meter reading • water line excavation • disinfection procedures for new water line installation and water storage rehabilitation prior to activation • distribution flushing (i.e. flushing fire hydrants and dead-end mains) • operation of valves within distribution lines • new construction • water well pump and service pump replacement • water storage and pressure maintenance facility inspection “Under the direct supervision” includes providing oversight either by being physically present on-site or available by remote means, including but not limited to telephone and radio. Regardless of what the rules and guidance allow, some systems, as a matter of policy, only allow their employees who are properly licensed to have access to their water plants and well sites. Limiting access gives these boards the peace of mind that any operational actions or duties are being performed by properly trained and licensed operators. These systems should have a detailed job description that specifies the level of operator required to perform the required job functions. Other systems have assigned certain functions to unlicensed operators/contractors and are using the TCEQ rules and guidance about “under direct supervision” as justification

or authority. These systems’ unlicensed operators should only conduct or perform the operational activities that they have been instructed to complete by the system’s licensed operator(s). A pitfall to this approach is that some issues arise in the day-to-day operations that require an immediate assessment by a licensed operator. Not having a licensed operator actually doing these types of duties may cause delays in response or correction time if the unlicensed operator has to get in touch with the system’s licensed operator to resolve the problem. The unlicensed operator may not be able to resolve the problem if they do not properly describe the operational issue or don’t understand what the licensed operator is asking them to do to correct the issue. The bottom line is that it is up to each system’s board or council to determine whether their entire system or just some functions of the operations processes will be completed by a licensed operator or by someone working under the direct supervision of a licensed operator who is available by phone, two-way radio or other type communication method.

Q: What counts as a customer complaint for purposes of documentation and maintaining the records? For example, we have some customers who call when they do not have water and it turns out that it is because there is a break on their side of the meter or their cut-off valve is turned off. Do we record this as a complaint? A: Customer complaints occur on the best and worst run systems, as well as on the largest and smallest systems. There is no getting away from them and, yes, all complaints should be recorded, addressed and maintained in accordance with the corporation’s or district’s records retention policy. The Texas State Library & Archives Commission (TSLA) issues record retention schedules for utilities. These guidelines are mandatory for districts, but we also recommend that water supply corporations adopt a records retention policy and use these schedules as

guidelines. The prescribed period in the TSLA retention schedule for records of customer complaints is until final settlement of the complaint plus two years. The TSLA schedule recommends the record include the name and address of the complainant, the date and nature of the complaint, and the adjustment or disposition made. The two-year retention period is consistent with TCEQ’s rule on this issue for investor-owned utilities, which is 30 Texas Administrative Code Section 291.81(b)(4). TCEQ’s rules for investor-owned utilities also serve as good guidance on how WSCs and districts should handle customer complaints. These rules require that, upon receipt of a customer service complaint by letter or telephone, the utility promptly conduct an investigation and report its finding(s) to the complainant. Section 291.82(a) of TCEQ’s rules provides that if the customer requests the opportunity to dispute any action or determination of a utility under the utility’s customer service rules, the investor-owned utility shall provide them with an opportunity for review and that service not be disconnected pending that review. If the customer is uncooperative by not allowing an inspection or refuses to participate in the review within five working days of requesting it, the utility may disconnect service under the disconnection rules. Systems should review their “grievance procedures” every so often to stay familiar with existing policies. The following typical complaints may be used to define and develop a plan of action for the system’s complaint policy: • meter is not registering properly—test it now • leak on the customer’s side of the meter • leak on the system’s side of their meter • no water pressure • no water at all • dirty/gritty/sandy water • water smells funny Continued on page 24 Quality on Tap! - March 2013

Continued from page 23

• pressure is too high • water looks like milk • someone (other utility company) is outside digging near their meter or your water line • water is too hot • cannot get the soap off when I shower/ bathe; water is too soft/too hard • system could not have read my meter because it is covered with dirt, leaves, water, mud, crawfish, snakes, ants, bees, etc. • there is a big/little/muddy hole in my yard/pasture/driveway where they fixed a leak/installed the water line, etc. Many of these “complaints” may be resolved by the person answering the phone, speaking directly to the customer in the office or by response to letters, e-mails, texts or other means by which the customer or public contacted the system. All system staff should be educated on how to respond to the types of common complaints listed above and others that your system frequently receives. Good communication between the office and field staff is also essential. System personnel should be trained on how to properly “log in” each complaint and use the correct form the system has developed. As recommended in the TSLA schedule, the record should include the name and address of the complainant, the time/date and type of complaint and the “follow up” portion showing how the complaint was resolved. This could include contact with staff on the phone or by some physical efforts by field staff to correct or address the complaint, or explain that the issue must be resolved by the customer such as in the case of issue(s) on the customer’s side of the meter. These “complaints and resolutions” should also be noted on the monthly operating reports that are reviewed by a supervisor, manager or at a board meeting. Then these complaint documents are to be kept on file for a period of two years following the final settlement of each complaint.

Quality on Tap! - March 2013

Is this a pain in the ankles? Yes, but if these “little” complaints do not get addressed and settled correctly and in a timely manner they could blossom into a major issue, which can be bad for the staff, management and even the board.

Quality on Tap! - March 2013

Advertiser Index AIA Insurance Agency........................................... page 9 AquaSurance.................................................................17 Capps Insurance Agency..............................................24 Childress Engineers......................................................25 Daniel & Brown, Inc.......................................................21 DeepSouth Coatings.....................................................14 DN Tanks........................................................................12 Dunham Engineering....................................................12 Hayes Engineering........................................................25 J.F. Fontaine & Assoc., Inc...........................................19 Leonard Water Services, LTD.......................................25 Maguire Iron...................................................................17 Pittsburg Tank & Tower Maintenance Co., Inc............21 Russell Drilling Co., Inc................................................25 Smith Pump Company, Inc...........................................25 Tabor & Associates, Inc................................................25 Tank and Vessel Builders.............................................25 Texas Aquastore............................................................13 TraC-N-Trol, Inc..............................................................25 USA Blue Book............................................... back cover Velvin and Weeks..........................................................24 Weisinger, Inc................................................................19

Quality on Tap! - March 2013

Plan Ahead CONFERENCES:

March 20-22, 2013

Annual Texas Rural Water Association Convention, Renaissance Austin Hotel, Austin, TX

June 20-21, 2013

Office Professionals Conference, Omni La Mansión del Rio, San Antonio, TX

July 17-18, 2013 Technical Conference, Galveston Island Convention Center, San Luis Hotel & Hilton, Galveston, TX

OPERATOR TRAINING COURSES: Water Credit Courses

Basic Water Works Operations: Mesquite, April 23-25  San Antonio, May 1-3 Customer Service Inspections: Meadowlakes, March 12-13  McKinney, March 26-27  New Braunfels, April 9-10  Jasper, May 29-30 Groundwater Production: Sherman, March 19-21  Jacksonville, April 16-18  Lorena, May 14-16  Coldspring, May 21-23 Surface Water Production 1: Sherman, May 7-9 Water Distribution: Springtown, March 26-28  San Antonio, May 15-17

Water and Wastewater Credit Courses

Chlorinator Maintenance: Converse, May 7-9  San Antonio, May 29-31 Chlorine Use, Handling, Safety & SCBA: San Antonio, April 23 Pump & Motor Maintenance: Mesquite, March 26-28  Waco, April 2-4  San Antonio, April 17-19  Bastrop, April 30-May 2 Valve and Hydrant Maintenance: Harlingen, April 23-25 Water Sampling & Field Analysis: San Antonio, April 24 Water Utility Management: Harlingen, May 21-23  Greenville, May 29-31 Water Utility Safety: San Antonio, March 20-22  Pittsburg, April 30-May 2

Wastewater Credit Courses

Wastewater Treatment: San Antonio, April 3-5 Wastewater Collections: San Antonio, April 10-12

Quality on Tap! - March 2013

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