QUALITY ON TAP!
September/October 2014
TCEQ Adopts New Rules Implementing the Fireflow Law Also Inside: Pattison WSC Wins TCEQ’s Substantial SWP Program Implementation Award TRWA Launches Contest to Rename “Quality on Tap!” 2014 Salary Survey Report and Rate Study Analysis Now Available www.trwa.org
TRWA Today TRWA BOARD OF DIRECTORS
Fred Aus Executive Director
Officers Clay Hodges Pat Allen Brian Macmanus Barry Miller James Morrison
TRWA STAFF Allison Kaminsky Communications Director
President Hunt (Dist. 7) Vice President Guadalupe (Dist. 9) Secretary Cameron (Dist. 6) Treasurer Gonzales (Dist. 5) Immediate Past President Walker (Dist. 13)
District Directors John Frantz
Hartley (Dist. 1)
Bruce Alexander
Medina (Dist. 2)
Chris Boyd
Denton (Dist. 3)
Teresa McAnally Member Services Director Lance Harrell Information Technology Lara Zent Deputy Executive Director and General Counsel Pauline Word Legal Assistant Larry Bell Technical Assistance Director Raymond Curtis Wastewater Trainer Alex Eaves Wastewater Technician Paul King Circuit Rider James Smith Circuit Rider William White Circuit Rider Celia Eaves Environmental Services Director Deborah McMullan Source Water Protection Specialist
Delores Goode
Lampasas (Dist. 4)
Steven Mindt Technical Assistance and Training Specialist Refugio Rodriguez FMT Specialist Janice Gibbs, CPA Finance Director
Hill (Dist. 8)
Pam Cantrell Administrative Assistant
Kent Watson
Brazos (Dist. 10)
Angela Harris Administrative Assistant
Kevin Spence
Franklin (Dist. 11)
Michael Vollmar Professional Development and Training Director
Vickie Armstrong
Kaufman (Dist. 12)
Melody Bennett Administrative Assistant
Charles Beseda
Jerry Pickard
Sabine (Dist. 14)
Len Klandrud Instructor George Patterson Instructor Dian Phinny Instructor
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. TRWA is dedicated to helping directors, managers and operators provide efficient service and clean, safe drinking water to their customers. Through onsite technical assistance, education and information exchange, TRWA helps its members better meet their needs as well as the needs of their customers. 2
Quality on Tap! - September/October 2014
CONTACT THE EDITOR Quality on Tap is a bimonthly publication of the Texas Rural Water Association. Your comments and opinions, as well as editorial and advertising inquiries, are welcomed and should be directed to the Editor, Allison Kaminsky, at (512) 4728591 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!
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Features:
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In Every Issue: President’s Message Letter from the Executive Director Ask Larry
By Lara Zent, Texas Rural Water Association On August 20, TCEQ adopted new fireflow rules setting the minimum fireflow standard a municipality may impose on a WSC or IOU operating in its limits or ETJ.
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Answers to your legal questions
Advertiser Index
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Plan Ahead
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TRWA’s Calendar of Events
ON THE COVER: Possum Kingdom State Park © Texas Parks and Wildlife
Pattison WSC Wins TCEQ’s Substantial SWP Program Implementation Award By Deborah McMullan, Texas Rural Water Association After several years of planning, hard work and the implementation of an innovative ongoing public education effort, Pattison WSC’s efforts were recognized in August
Answers to your technical questions
Keep it Legal
TCEQ Adopts New Rules Implementing the Fireflow Law
Conference and Beyond — TRWA Conferences at 16 Tech a Glance By Teresa McAnally, Texas Rural Water Association Read more about upcoming conferences and a short recap of the Training and Technical Conference in July.
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TRWA Launches Contest to Rename “Quality on Tap!”
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TRWA Briefs
If you submit the winning name, you could win your system four registrations to a TRWA event of your choice! 2014 Salary Survey Report and Rate Study Analysis Now Available; TRWA Awards of Excellence Recognize Those Who Shine Above the Rest; TRWA Board Member Kent Watson Elected Treasurer of NRWA; New TRWA/EPA Sustainability Workshop A Success; Water Conservation Advisory Council Adds New Category in Awards Program for Small Systems; TRWF Receives Grant from the Texas Veterans Commission; TRWA Courses Qualify for College Credit through University of Phoenix; Enter the PH2OTOSTREAM Photo Contest Today! Quality on Tap! - September/October 2014
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President’s Message Life in Rural Texas without Water Driving around your system, have you ever thought, “What would be here if there was no water here?” Many years ago, I had the pleasure of receiving a personal tour of the south end of my county from Paul Matthews, a retired banker and true gentleman. Paul picked me up on a Sunday afternoon and said he would drive because he knew where he wanted to go. Paul said he wanted to show me all the old farms in the area. As we drove, Paul told me all about the people who farmed the land 50 years ago. He could even recall their names, how much cotton they grew and where they were now. I asked Paul, “In all your days, what do you think was the greatest thing to happen to this end of the county?” He answered, ”the building of the lake and rural water.” Paul said rural water was the reason that most people still live in the rural county areas.
“We need to consider how our rural water systems are part of the rural economy and how we can improve that economy...”
As we drove back, we passed through a small town. Stopping at the light, Paul said, “Look at all these businesses and that big school; none of those things would be here if there were no water.” I believe Paul was right. We need to consider how our rural water systems are part of the rural economy and how we can improve that economy as we face drought, growth and everything else. Maybe the best way is through our budgets. Do you make purchases at local businesses and use local businesses when you need things repaired? Do you pay salary and wages that are fair and comparable to other rural water systems in your part of the state? If you want to check out the latter, get a copy of the TRWA 2014 salary survey report. This year’s survey contains information from nearly 250 systems statewide. You can compare your employees to similar systems in size or by type of system. Contact TRWA to reserve your copy. Keep Texas Rural.
Clay Hodges President Texas Rural Water Association
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Quality on Tap! - September/October 2014
Letter from the Executive Director Stand Up and Be Recognized I’ve been spending a lot of time this year talking with people about the professionalism of the rural water and wastewater industry in Texas. Everyone in our industry plays a key role in ensuring that people get affordable, reliable drinking water and wastewater service. It is too often taken for granted in our society. Unfortunately, it takes events like the water main break in downtown Los Angeles or the blue algae scare in Toledo, Ohio to cause the average citizen to reflect on the true value of water in their lives and what life is like without water or wastewater service. But at TRWA we are fighting hard every day to support the important role you play in your communities, not only for public health but also for economic development, growth and sustainability. You are the backbone of the infrastructure that makes the ongoing economic “Texas Miracle” happen. And some folks are starting to notice. Reader’s Digest recently listed water and wastewater treatment plant and system operators at number two – just after registered nurses – on a list of “10 Jobs that Americans Can’t Live Without.” And here are some things we can do to further our cause. First, check out the results of the 2014 TRWA Salary Survey Report and the 2014 TRWA Rate Study. Thank you to the nearly 250 TRWA member systems who responded to the surveys this year. Those who did will be able to get a free copy of each report. Otherwise, the reports will be available through the TRWA website starting the week of October 20. The reports provide a good snapshot of prevailing wages and rates among rural water and wastewater systems across the state, and they are invaluable tools in your budget planning for 2015. Second, nominate someone for a TRWA Award of Excellence. TRWA will recognize an outstanding Manager, Operator and Secretary/Office Manager of a member rural water system. More details, including the application form, are available at TRWA’s website, and the deadline for nominations is November 19, 2014. Third, nominate a TRWA member water system for a Blue Legacy Award. This award from the Water Conservation Advisory Council recognizes water suppliers that have demonstrated outstanding and innovative commitment to promoting responsible management of water. And, thanks to TRWA’s input, this year there is a new category to recognize a water system serving a population of less than 10,000. The deadline for nominations is November 3, 2014, and it would be great to have numerous nominees from among TRWA member systems. To get more details about all of these, go to the TRWA Briefs section starting on page 22 of this magazine. Thanks for all you do to improve the professionalism of our industry, but help us tell your story about all the ways we are working to Keep Texas Rural in the best of ways!
“You are the backbone of the infrastructure that makes the ongoing economic ‘Texas Miracle’ happen.”
Fred Aus Executive Director Texas Rural Water Association Quality on Tap! - September/October 2014
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Quality on Tap! - September/October 2014
Quality on Tap! - September/October 2014
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TCEQ Adopts New Rules Implementing the Fireflow Law By Lara Zent, Texas Rural Water Association
O
n August 20, 2014, the Texas Commission on Environmental Quality (TCEQ) adopted new fireflow rules setting the minimum fireflow standard a municipality may impose on a water supply corporation (WSC) or investor-owned utility (IOU) operating in its limits or extra-territorial jurisdiction (ETJ). The new standard is a minimum sufficient water flow of at least 250 gallons per minute for at least two hours and a minimum sufficient water pressure of at least 20 pounds per square inch, in addition to the system’s maximum daily demand. The rules at 30 Texas Administrative Code Section 290.46(y) took effect on September 11, 2014. The rules implement House Bill (HB) 1973, 83rd Legislature, 2013. HB 1973 created new Section 341.059 of the Texas Health and Safety Code allowing a city by ordinance to require a WSC or IOU that provides service in its city limits or ETJ to provide water for emergency fire suppression. As part of the same rule package, TCEQ also adopted 30 TAC Sec. 290.45(a)(2) to reflect that the commission will require additional system capacity if a system is unable to meet the capacity requirements for providing fireflow pursuant to Sec. 290.46(y). The Texas Rural Water Association successfully advocated for several provisions that were included in HB 1973 that protect and provide reasonable limits for water systems on this issue. TCEQ also adopted these provisions in its rules. First, the standard only applies to a “residential area,” which means “an area used principally for private residences that is improved with at least 100 single-family homes and has an average density of one home per half acre.” Second, an ordinance may not require a utility to build, retrofit or improve infrastructure in existence at the time the ordinance is adopted. Next, a municipality that has a municipal utility may not require a WSC or IOU to provide a standard greater than that provided by the municipal utility. Also, if a municipality does not own a municipal utility, it may not require a WSC or IOU to provide a standard
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Quality on Tap! - September/October 2014
greater than the minimum standard provided by law and TCEQ’s rules. A municipality that seeks to use a WSC’s or IOU’s water for fire suppression must enter into a written memorandum of understanding with the WSC or IOU to provide for the necessary testing of fire hydrants and other relevant issues pertaining to the use of the water and maintenance of the hydrants. Further, TCEQ, not the municipality, has enforcement authority over this issue and there are no monetary penalty provisions written into the law. Finally, Sec. 341.0359(h) contains a liability protection provision stating a WSC or IOU is “not liable for a hydrant’s or metal flush valve’s inability to provide adequate water supply in a fire emergency.” TRWA was actively involved in the rulemaking process at TCEQ with the goals of ensuring the implementation of HB 1973 was consistent with TWRA’s understanding of the statutory intent, and that the rules were clear about how TCEQ would implement the protections in the law TRWA worked so hard to secure. TRWA submitted written comments, presented comments at a public hearing held on the rules, presented comments at two commission agendas meetings where the commissioners considered the TCEQ staff’s proposed rule language, and met with TCEQ staff. TCEQ incorporated one of TRWA’s written comments defining the standard that cities may set that do not have their own municipal utility; however, they did not incorporate TRWA’s other requested language. HB 1973 required the commission to establish a fireflow standard that cities may adopt by ordinance. The law provides the minimum standard and the factors TCEQ is required to consider in setting a standard. TRWA understood the legislative intent was to have uniformity and predictability for utilities on what it means to provide fireflow. Instead, TCEQ adopted only a minimum standard that is identical to the minimum standard set forth in the statute. This approach thereby allows cities to set any standard
above that minimum, with the only “ceiling” being the flow the municipal utility itself is able to provide. Another concern TRWA voiced is the rules do not describe how TCEQ will determine whether a municipality is meeting its own standard and, therefore, whether that standard applies to a WSC or IOU serving in its jurisdiction. TRWA suggested two approaches, neither of which TCEQ agreed to adopt in its rules, but both of which they verbally agreed to do in practice. The first is if a WSC or IOU is aware that a municipality is not meeting a fireflow standard the municipality has adopted by ordinance, an affected WSC or IOU may report this to TCEQ so TCEQ may determine the standard does not apply to the affected utilities. Second, if a municipality reports to TCEQ a WSC or IOU is not meeting its fireflow ordinance, TCEQ must investigate whether the municipality is meeting the standard before TCEQ may require the WSC or IOU to comply with it. TRWA also advocated that the rules require a municipality to notify WSCs and IOUs that serve in its limits or ETJ when it has adopted a fireflow standard that applies to these utilities. TCEQ’s rule requires a municipality to provide a copy of its ordinance to TCEQ within 60 days of approval. TRWA urged TCEQ to also require that a municipality provide a copy to affected utilities within the same timeframe. TCEQ did not agree to include this requirement in the final adopted rule. TRWA acknowledges that rural water systems providing service in urbanizing areas will need to plan and be prepared to provide water for fireflow. The Legislature made its first attempt at requiring this new standard in HB 1973. TRWA was able to successfully advocate that a number of protections be included in the bill to protect the financial integrity of these systems going forward. We expect more bills to be filed on the issue of fireflow, and this will be a continuing challenge for the Association and its member systems. If you have questions about these rules or this article, please contact us at (512) 472-8591.
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Quality on Tap! - September/October 2014
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Ask Larry A Q&A column with TRWA Technical Assistance Director Larry Bell
Q:
We are replacing a line and trying to move it out of the county right-of-way (ROW). One landowner refuses to grant an easement. He had a meter and service on his property about seven years ago from the line in the ROW, but when he drilled his own well he terminated service so we pulled the meter. Since this customer had service before, can we require an easement as a condition of future service as part of this project now? A: Section 49.218(d) of the Texas Water Code provides water supply corporations and districts with the authority to require an easement as a condition of service at the time that service is being requested, but not as a condition of future service. If the landowner is not currently requesting service and refuses to voluntarily sign an easement, you cannot force him to do so unless it is by condemnation. Here are a few options for you to consider in handling this situation: (1) Offer to install a meter connection at no charge on their property now so it will be available should they ever want to have a meter in the future. This may be an incentive for them to sign an easement for the installation of that water connection/tap and allow the new water line onto their property at this time; (2) Install this landowner’s new line in the ROW and inform this landowner that should he want a meter reinstalled in the future, he would have to pay to relocate the water line onto his property and sign an easement at that time; or
(3) Go through the condemnation process and pay the legal, appraisal, court costs and the assessed value of the easements. This process can take several months and be quite costly, so we always recommend trying to negotiate with the landowner first. Q: TCEQ recently inspected our facility and requested a review of our well records. Unfortunately, we did not have the records available. Some of our wells are from the previous water system we took over and that system did not have any records to transfer. We already searched TCEQ central records, but could only find the driller’s logs and sanitary easements for the wells. TCEQ is requesting that we seek approval for the wells, conduct the 36-hour pump test and water quality analysis and submit all these with the driller’s logs and sanitary easements that have an engineer’s seal of approval. What records do we need for these wells to obtain overall approval from TCEQ? A: The TCEQ rules are very clear that if a system does not have well records for each well, they can be served with a Notice of Violation by the TCEQ inspector. It does not matter how or when this well in question was traded, sold, inherited or transferred to your system. TCEQ still requires every system to maintain well records and the most common ones are listed below: •
Drillers Log – Shows the driller’s record of the types of dirt, clay, rock or sand that was observed as the drilling of the well was done.
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Electric Log – This is the “electric resistivity” chart recording taken by a set of equipment that gives a pretty accurate readout of the types of geological formations that were drilled through.
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Annular Alignment – This shows the well is more or less “vertically straight” without any bends in the casing or drill hole that would compromise the setting of a well motor and pump assembly. Continued on page 12
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Quality on Tap! - September/October 2014
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Continued from page 10
•
Cement Log – This states that the contractor used a certain type and volume of cement to fill the voids and all annular spaces outside the casing pipe.
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36-hour Pumping /Production Test – This would have been conducted by the driller to determine the maximum or sustained yield of that particular well. This would include the record showing the drawdown every five minutes after the pump was turned on until the drawdown stabilized. The drawdown is recorded every 30 minutes to one hour until the pump is turned off. Once the pump is turned off, the recovery rate of the well would also be logged to determine how quickly the water level was returned to the “static” water level before the pump was turned on.
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Chemical analysis – A complete testing to determine what, if any, minerals and metals were present in the well sand. This report must be completed by a lab approved by the state.
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Disinfection Log – The detailed report of how much and type of chlorine was added to the completed well and any amount of potable water used to flush the disinfectant out into the gravel pack of the well. This also includes the pumping records to demonstrate this concentrated disinfectant was pumped from the well properly.
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Bacti Samples – You must maintain the test results of the three-consecutive daily bacti samples after the well was disinfected.
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Engineer’s documentation of the request for approval by TCEQ of the original plans and specifications for this well and related production piping and facilities.
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Final Approval Letter by TCEQ allowing the system to begin using that well for a public water supply.
I recommend that you try to contact the previous system owners or managers and hopefully someone with past knowledge of this well will come forward with their copies of these reports. Otherwise, you will have to go through the process of recreating each of these reports/records. If you have the driller’s logs, you should be able to tell the dates of drilling, and from these you may be able to gather more information from the Texas 12
Quality on Tap! - September/October 2014
Water Development Board or the Texas Department of Licensing and Regulation, which regulates well drillers. You may get lucky and find that some of these records will be housed at one of these other agencies. These two agencies also run a joint website for well report submissions and searches, which can be accessed at: https://texaswellreports. twdb.state.tx.us/drillers-new/index.asp. Q: We submitted an application for a new production well to TCEQ in June, but due to various issues and requests for additional information, our request will be delayed until November. Is TCEQ approval necessary for our contract well driller to drill a test well in the interim? I understand the need for TCEQ approval for a public water supply production well. A: TCEQ does not require approval of test wells, except when a public water system (PWS) completes a test well that will become a PWS production well. In these situations, TCEQ recommends submitting the request for approval prior to drilling the test well so that scheduling of the driller does not have to occur twice. If a proper submittal is made around 60 days prior to the scheduled test hole drilling, chances are the review at TCEQ will be complete and the PWS will not have to lose the time with re-mobilization. The real question is whether or not you and the engineer feel that this initial test hole will deliver the right quantity and quality of water. If so, then follow the submission and approval route I explained above. When the test well results are back, then the “final” well completion stages should continue without too much delay. If you have a technical question you would like answered, please e-mail Larry.Bell@trwa.org.
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Pattison WSC Wins TCEQ’s Substantial SWP Program Implementation Award By Deborah McMullan, Texas Rural Water Association
A
fter several years of planning, hard work and the implementation of an innovative ongoing public education effort, Pattison Water Supply Corporation was awarded the Substantial SWP Program Implementation Award at TCEQ’s Annual Public Drinking Water Conference. Pattison’s Steering Committee consists of Hollis Ulbricht, Jr., Committee Chairman, Connie Turner, General Manager, Doug Boatright, Robert McCallum and Bill Matthews. With the old saying of “our children are our future” in mind, the Steering Committee set their goals for source water protection education of the local school-aged children. This has been an ongoing effort that the Steering Committee has continued to build upon. The Committee started off small by maintaining an in-office display of free conservation and water protection fliers for customers. Adding to this theme, coloring books based on water protection, small candies with protection quotes and stickers were given out to school-aged children at various holidays throughout the year. One of their most successful events evolved into a joint effort with the Pattison Volunteer Fire Department in hosting an annual Trick-or-Treat Water Protection and Fire Safety Festival. Various booths are offered for children and parents to visit. These booths contain educational materials and crafts that teach the children about water protection. Brochures are offered for the adults on subjects such as rainwater harvesting, Xeriscaping and proper use of pesticides/fertilizers, to name a few. Each year has seen over 400 children, as well as their parents in attendance. Pattison WSC has graciously opened its doors to local home school groups to assist them with hydrology, water conservation and protection education modules. This includes tours of their water plant, how the water is treated before consummation, demonstration of hydrology and contamination using a water model, and 14
Quality on Tap! - September/October 2014
Representatives from TCEQ with Deborah McMullan, TRWA Source Water Protection Specialist, and Connie Turner, General Manager of Pattison WSC, at TCEQ’s Public Drinking Water Conference.
experiments/crafts to teach the students about the importance of water and its protection. With the idea that conservation is an important part of protection and the help of a local landscape company, Pattison WSC designed and implemented several gardens planted with native low water plants and grasses. Signage was installed to give plant information. This is an ongoing effort to show the public how native landscaping, better known as Xeriscaping, can be attractive and a great way to conserve water usage. This has proven to be a successful effort as many of the customers have requested more information on plants for this area of Texas. In August of 2013, the Steering Committee added an additional educational effort in the form of a “Customer Appreciation and Back to School Open House” during the last week of the summer break. Attendees watched films on the water cycle,
viewed presentations on aquifer hydrology and how contamination may occur using a water model, participated in a tour of the native plant landscaping and a booth housing recycling efforts that their county has recently made available to the citizens. All of Pattison WSC’s efforts have been a great success, as many parents have indicated that their children have embraced the importance of having plenty of clean water for the future. These children are insisting that conservation and protection be practiced within their own homes. Many of the children are working hard to help the adults change old habits into new good habits where water is concerned. Does your system do something that stands out? E-mail editor@trwa.org or call 512-472-8591 and tell us your story! You could see your system highlighted in the next issue of Quality on Tap!
Quality on Tap! - September/October 2014
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Tech Conference and Beyond — TRWA Conferences at a Glance By Teresa McAnally, Texas Rural Water Association
T
he TRWA Training and Technical Conference at the Galveston Island Convention Center provided over 200 attendees with information and training for water system managers, operators and office staff. The conference kicked off with the annual golf tournament at the Galveston Country Club. Forty golfers enjoyed the 18-hole multi-level greens that saw great competition between old and new friends. Sponsored by AIA Insurance/TRWA, the proceeds from the tournament benefit the Texas Rural Water PAC. First day conference highlights included a regulatory update, how to survive a TCEQ inspection and a guide to utilizing social media. Attendees had the opportunity to view the latest water and wastewater industry products and services at the Tech Conference exhibit hall. Fortyeight vendors exhibited with products and services ranging from water technologies to pumps and tanks. Morning and afternoon breaks were generously sponsored by TraC-n-trol, Micro-Comm, Highpoint Insurance Group, Rural Pipe & Supply and Clow Valve. The buffet lunch was sponsored by Juan Moran-Lopez, TWDB, gives a handsAIA Insurance. on demonstration of how to use leak detection equipment during one of the breakout sessions at Tech Conference. 16
Quality on Tap! - September/October 2014
Conference
The winning team of the annual golf tournament, held in conjunction with the TRWA Training & Technical Conference in July, poses with their awards.
sessions continued on Thursday with topics ranging from utilizing wastewater as a source of drinking water, how to prepare for natural disasters and an update from the Texas Rural Water Foundation. Next on the conference schedule will be the Fall Management Conference in San Antonio, held in conjunction with the Water Districts Conference, at the Omni Colonnade Hotel on October 15-16, and the Fall Management Conference in Dallas at the Hilton Rockwall Lakefront Hotel on November 5-6. Agenda highlights include a preview of the 2015 Legislative Session, regulatory updates, long-range financial planning, as well as human resources training. The TWCA/TRWA Water Law Seminar is scheduled for January 22-23, 2015 at the Omni Downtown Austin Hotel. Topics will include groundwater updates, financing of water projects and the recent transfer of economic regulation of utilities from the Texas Commission on Environmental Quality to the Texas Public Utilities Commission. Registration for this event will open in early November, so check back soon on our website for further details and online registration. If you have questions about any of our upcoming conferences, please contact TRWA’s Member Services Director Teresa McAnally at (512) 4728591 or e-mail meetings@trwa.org.
Keep It Legal
Answers to Members’ Questions by Lara Zent, TRWA General Counsel and Deputy Executive Director
Q:
Is it the responsibility of the customer to notify a water system of their sales tax exemption status and provide a certificate? If an exempt entity notifies us, provides a certificate and has past tax charges, how far back – if at all – are we required to give a credit for those charges? I am thinking of schools, public colleges, churches, etc. that receive water service from us. A: The Texas Comptroller’s Office advises that an entity may either refer a customer who claims an exemption from sales tax to the comptroller to request a refund, or refund the amount of sales tax paid. If you choose the second option and refund the money, you may deduct that amount from your next sales tax return payment. They advise you to keep good records by issuing a credit memo and keeping the receipt in your files. The statute of limitations on sales tax refunds is four years. Customers who are not automatically exempt by law from sales tax should present a sales tax exemption certificate to claim the exemption. These type organizations are required to register with the comptroller to get that certificate. The comptroller maintains a sales tax exempt database at the following URL: http://window.state.tx.us/taxinfo/ exempt/exempt_search.html, and you may look up any entity to see if they are sales tax exempt. Political subdivisions of the state, such as school districts, are automatically exempt from sales tax under Texas Tax Code 151.309, and therefore do not need a sales tax exemption certificate. Q: We have a local handyman who mows our district property and keeps our plant area free of weeds. We are concerned about safety and liability issues with him working around our equipment. He is not an employee. What options do we have? A: If this person does not have their own insurance or workers’ compensation coverage, the Texas Workforce Commission recommends that your district cover this person on the district’s workers’ compensation insurance policy so the district is protected if he gets injured while
performing work for the district. The concern in doing this, however, is that by placing this person on the district’s insurance, the federal government may view him as an employee for purposes of social security and Medicare taxes, etc., instead of as an independent contractor. The following are some suggestions that will demonstrate this person is an independent contractor despite being covered under the district’s workers’ compensation policy. First, an insurance rider that covers this person should clearly state that this person is not an employee of the district. Second, it’s important you have in place a negotiated contract with this individual that clearly states this person is an independent contractor, has other customers and is not an employee. Other language in the contract should specify this person owns his company/ business, uses his own equipment and pays his own costs, and also that any extra work he does outside the scope of the agreement must be authorized and agreed to prior to his performing the work. It also is important that you request this individual invoice the water system for his services each month on his own stationery. Q: Is it legal for a WSC, as a non-profit corporation, to hold a raffle as a fundraiser for system improvements to try to keep rate increases to a minimum? A: No, it’s not legal, and even if it were, we would not recommend it. Raffles are considered a form of gambling in Texas, which is generally illegal. There is an exception for charitable organizations to hold raffles under the Charitable Raffle Enabling Act in the Texas Occupations Code. A water supply corporation is not considered a charitable organization for purposes of this Act. I understand your board’s hesitancy to raise rates for system improvements, but it’s important that they do so. This is the equitable way for all your customers to share in the true cost of receiving the water service. We recommend systems evaluate their revenue requirement on a yearly basis and make small incremental increases, as needed, in Continued on page 18 Quality on Tap! - September/October 2014
17
Continued from page 17
the water rates so customers are not hit with rate shock when the board has to raise rates significantly after several years of no increases. Q: We have an employee who is secretly recording his conversations with the manager during work hours. He has been a poor performer, but complains about the way the manager treats him, so we think he’s trying to build a case against the WSC. We are concerned about this behavior, but we are unsure how to deal with it. Is it legal for him to do this?
September 1, 2014. These issues are still governed by Chapter 13 of the Water Code; however, the new PUC rules are located at Title 16, Texas Administrative Code, Chapter 24. If you have a legal question you would like answered, please e-mail legal@trwa.org.
A: Yes, legally, he may secretly record those conversations. Texas Penal Code Section 16.02 states that a party to a conversation may record the conversation or give permission to record it, even without the other parties’ knowledge or consent. So, if the employee is secretly recording his conversation with the manager, it’s legal for him to do so. He cannot legally record a conversation between two other people where he is not a party to the conversation. Q: In one area of our system, we have allowed a customer to receive the city’s water service instead of ours, because the city is in a better position to serve this customer. We have one other customer in the area, but it’s not economically viable for us to continue to serve there, so we would like to shut down that line. Do you know of any legal reason we cannot do so? A: If the other customer is in your system’s certificate of convenience and necessity (CCN) area, then you have the legal obligation to continue to provide service to them. You cannot just shut down the line and cut them off. Even if they are not in your CCN area, since you have been serving them, the TCEQ may require you to continue to do so. If the city can and is willing to serve that customer too, then I recommend you work out a deal with the city to become the service provider for that area of your system. The simplest way to do this is to file an agreement with the Public Utility Commission (PUC) of Texas under Section 13.248 of the Texas Water Code, transferring that portion of your CCN area to the city. As a reminder, jurisdiction over CCNs and rates transferred from the Texas Commission on Environmental Quality to the Texas PUC on 18
Quality on Tap! - September/October 2014
CoBank is proud to support the rural water industry. We are committed to continuing to
Jake Good
support this vital industry, and to helping
Vice President 303-793-2226 jgood@cobank.com
ensure that America’s rural communities have access to safe and reliable water.
You can depend on CoBank’s experienced team of professionals to provide financial solutions customized to meet your needs. For more information about CoBank, please call a relationship manager or visit www.cobank.com.
www.cobank.com Please send inquiries to: Water@CoBank.com or CoBank, attn: Water Services
TRWA Launches Contest to Rename “Quality on Tap!”
W
hat’s in a name?
When you think of rural Texas, what springs to mind? What is it that separates us from other states? Nobody knows the answer to that better than our members, who work hard every day to provide their communities with quality water, so that’s why we need your help! If you are creative with words, we have just the contest for you! The Texas Rural Water Association is asking the readers of Quality on Tap to help us select a new name for our magazine! As some of you may know, “Quality on Tap!” is a national brand and grassroots public relations and awareness campaign promoting water utilities and the technical professionals who ensure water quality across the nation. Although the campaign sends a great message, we would like the name of our magazine to reflect its Texas roots! “We’re interested in names that reflect Texas’ spirit and the unique nature of the rural water industry,” said TRWA Communications Director Allison Kaminsky. “And who knows that better than our members? I’m really looking forward for our readers to show us their style.” The system suggesting the winning name will receive four (4) free registrations for a 2015 TRWA conference of their choice! The magazine will also give the system recognition in the January/February issue, where the new title will premier. If you would like to participate, use one of the following methods to submit your entries:
•
E-mail your entry to editor@trwa.org, and include “Magazine Rebranding Contest” in your subject line
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Fax your entry to TRWA’s office at (512) 4725186, RE: Magazine Rebranding Contest
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Tweet your entry to @TexasRuralWater
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Check our Facebook page (www.facebook. com/TexasRuralWaterAssn) for the contest announcement and post your suggestion on the comments thread, or send it to us in a direct message.
TRWA members are encouraged to submit as many suggestions as they would like; individual entries will be considered on behalf of their system. In the case of duplications, the individual who was first to submit the name will be considered as the qualifying entrant. The contest ends at 11:59 p.m. on Friday, November 28, 2014, and five entries will be shortlisted for consideration by the TRWA Board of Directors at their December meeting. The winning entrant will be contacted in December, prior to the magazine’s first publication under the new moniker. There is no cash alternative to prizes. This contest is open to all TRWA members and their staff; TRWA staff is not eligible to participate. Let’s acknowledge the importance of our rural water professionals by giving this magazine a name it deserves! If you have questions about this contest, contact the editor at (512) 472-8591.
Quality on Tap! - September/October 2014
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Quality on Tap! - September/October 2014
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TRWA Briefs 2014 Salary Survey Report and Rate Study Analysis Now Available
T
hank you to all of the systems that participated in this year’s survey – after removing duplicates, we received 248 completed surveys by the August 15 deadline. This is a much larger sample than the 2013 survey, meaning more accurate information and the ability to further target data in areas that are of importance to you!
If you have a representative attending one of our upcoming conferences, you will be able to pick up your copy at the registration desk. If you would rather have it mailed to you, please contact our office after October 16. If you would like to purchase the reports, they are available in our store at www.trwa.org. Each report is $100 if purchased separately, or $175 if purchased together. If you have any questions about the survey or how to get your copy, please contact us at (512) 472-8591.
TRWA Board Member Kent Watson Elected Treasurer of NRWA
New to the Salary Survey Report this year are summary pages of salaries for part-time employees in three positions: General Manager, Manager/ Operator and Office Manager. For these three positions, the data sets for part-time employees were extracted and reported separately, with the intent of providing a more accurate snapshot of these wages. We also reported on two positions that had not previously been included: Distribution Operator and Customer Service Representative. We were unable to report on the positions of Instrument Technician or Wastewater Collections Operator due to lack of participation in these categories. New to the demographics summary are metrics on annual operating budget, wastewater meters, and wholesale sales and treatment. We also added several new features to the Rate Study Analysis this year. This year we included a statewide wastewater rate and fees summary page. We also refined our questions based on member feedback and added an “Additional Renters Deposit” category in the fees charged section. Further, due to the larger number of participants, we were able to report on average water loss percentage, miles of pipe, meter set fees and trip fees. We hope these additional categories will better inform our members on operational, salary, benefits and rates trends statewide. We would like to extend our sincere gratitude to all those who participated in this survey. The record number of responses we received has enabled us to produce an accurate representation of our members’ salaries and rates. We hope to only improve upon this and continue to publish useful resources for our Texas rural water industry professionals. If you participated in the survey, your system will receive one complimentary copy of each report. 22
Quality on Tap! - September/October 2014
C
ongratulations to Kent Watson, TRWA Board Director representing District 10, who was elected as Treasurer of the National Rural Water Association (NRWA) Board of Directors! Pictured above is Watson with outgoing NRWA President and Man of the Year Doug Anderton at the NRWA WaterPro Conference, which was held in Seattle, WA on October 6-8, 2014. We are proud to have a board member representing Texas on the NRWA Executive Committee.
TRWA Awards of Excellence Recognize Those Who Shine Above the Rest
T
ime is running out to nominate yourself or one of your colleagues for one of the highest honors TRWA has to offer—a TRWA Award of Excellence! Every year, rural water systems across Texas
submit nominations for these prestigious awards honoring excellence, dedication and achievement. All employees of TRWA member utilities are invited to recognize an outstanding manager, operator or secretary/office manager for going above and beyond the call of duty. The submission deadline is November 19, 2014, so don’t miss this opportunity to identify a professional who surpasses the rest. Manager of the Year, Operator of the Year and Secretary/Office Manager of the Year awards will be presented at our 2015 Annual Convention. The Convention will be held March 18-20, 2015 in Austin, Texas. We encourage the nominee and the nominating officer to attend the Convention, where winners will be presented with a special ribbon for their name badge, an engraved plaque and a cash prize. Registration for the Annual Convention will available on the TRWA website by mid-December. Winners will also be recognized in the May 2015 issue of this magazine. Nomination forms can be found on the Texas Rural Water Association’s website at www.trwa.org. You can either fill the form out online or download it and mail or fax it to the TRWA office. A detailed essay is required as part of the process. The nomination form contains a list of categories that should be considered when writing your essay. Categories include, but are not limited to: •
Accuracy/Attention to Detail
•
Attitude
•
Computer Knowledge
•
Customer Relations
•
Employee/Board Relations
•
Innovation
•
Leadership
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Long-Range Planning
•
Media Relations
•
Organization
•
Problem Resolution
•
Project Coordination
•
Records Maintenance
•
Resource Management
You must address at least six of the categories listed in the nomination form; however, any additional categories, achievements or qualities you wish to note are encouraged.
Please remember that eligibility is limited to employees of TRWA member utilities and that former award winners are not eligible. Each nominee may only be nominated for one of the three awards. All entries must be postmarked or delivered by November 19, 2014 to be considered. If you have any questions about the nomination form or the awards process, please contact TRWA Communications Director Allison Kaminsky at (512) 472-8591 or Allison.Kaminsky@trwa.org.
New TRWA/EPA Sustainability Workshop A Success
O
n September 11, TRWA conducted a Sustainable Management of Rural and Small Systems workshop in Terrell, TX to help rural and small systems address a full range of challenges and improve the management of their operations and infrastructure using tools developed by EPA, USDA and small system managers. The workshop was a great success. We had nearly 25 in attendance from both member and non-member systems, and we received very positive feedback from attendees. Because TRWA was the first rural water association to conduct a workshop like this, representatives from EPA Region 6 and Florida Rural Water Association attended to observe. We will be conducting three more similar workshops over the course of the next year as part of a contract with the EPA. Keep an eye out in this magazine and on our website for dates and more details on how to attend.
TRWA Environmental Services Director Celia Eaves leads a discussion during the Sustainability Workshop in Terrell. Quality on Tap! - September/October 2014
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TRWA Briefs Water Conservation Advisory Council Adds New Category in Awards Program for Small Systems
T
he Water Conservation Advisory Council is now accepting nominations for the 2015 Blue Legacy Awards in water conservation. The Blue Legacy Award is an annual award program that recognizes the outstanding water conservation efforts and successes of entities and individuals. The award in municipal water conservation is open to municipalities, wholesale water providers, water supply corporations, water supply districts and utility districts. Recognition is given to those who have demonstrated their commitment to responsible management of water resources & to those who have overcome challenges faced by municipal water suppliers. Thanks to TRWA’s participation in the Council, there is an exciting development in the 2015 awards! For the first time ever, the municipal conservation awards will have a category for retail or wholesale suppliers serving a population of fewer than 10,000. TRWA successfully advocated to the Council for the creation of this category earlier this year with the hopes that a number of our members will self-nominate for this honor. This is a great opportunity for TRWA members to potentially receive recognition for their water conservation efforts. (Note: Larger TRWA member systems can still be nominated for the category serving a population of fewer than 50,000.)
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Quality on Tap! - September/October 2014
The nomination period for the 2015 Blue Legacy Awards will remain open until November 3, 2014. Awardees will be chosen by panels organized by the Council, notified by support staff and invited to attend an award ceremony in early 2015. To learn more about the 2015 Blue Legacy Awards, visit www.savetexaswater.org or contact Katherine Thigpen, Council Support Staff, at Katherine.Thigpen@TWDB.Texas.Gov or (512) 4631667.
TRWF Receives Grant from the Texas Veterans Commission
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e are very excited to announce that the Texas Rural Water Foundation has been awarded a grant by the Texas Veterans Commission for the Veteran Employment Program. The grant from the Veterans Commission will help the Foundation pay for the training of 10 veterans new to the water utility industry. The grant will help to cover the cost of course and license fees, so that your system doesn’t have to bear those costs. If you are looking for a new employee or have recently hired a veteran at your water utility, please get in touch with one of the Veteran Employment Program Specialists at the Foundation. The Foundation was created in 2010 by the Texas Rural Water Association to support and expand on the Association’s work. Housed in the Association’s office, new Foundation programs have been developed by AmeriCorps VISTA members under the management and oversight of the Association’s staff. Part of the Foundation’s mission is to bring new interest and talent to the water utility industry in rural Texas. The Veteran Employment Program, one of our inaugural projects, addresses just that. Veterans in Texas are looking for work, and they are great candidates for jobs at water utilities just like yours. If you would like to help Texas Veterans while also ensuring a bright future for your utility, please contact us about getting involved with the Veteran Employment Program today. We only have until July to use the funds from our grant to meet our grant’s objectives. Whether your utility is seeking a new entry-level operator or has recently hired an experienced veteran who needs training for a higher level license, we can help you cover these expenses. If you have any questions or would like to know more about the Veteran Employment Program, please do not hesitate to contact our one of our
Veteran Employment Program Specialists at (512) 472-8591. For more information, please visit the Texas Rural Water Foundation’s website at www.texasrwf.org/#!utilities/cat0.
TRWA Courses Qualify for College Credit through University of Phoenix
T
exas Rural Water Association offers the training; you get the credit. Your experience may count toward your degree.
PH2OTOSTREAM is our response to a need for images from, and for, rural Texas – a way to share rural Texas and its water and wastewater needs with the greater public. This amateur photography contest will provide both TRWF and TRWA with images to use freely throughout all communications and promotions. Ask yourself: what do you see when you look at the utility responsible for your drinking water or wastewater treatment? What are the visible effects of – and responses to – drought and water conservation in your region? Do you have any historical images representing how far we have come from the days of hand pumps and buckets?
Some of your most important learning occurs outside the classroom–often on the job. As a result of a new partnership between University of Phoenix and Texas Rural Water Association, members like you can transform your real-world knowledge and training into college credit through Prior Learning Assessment (PLA).
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
Certain Texas Rural Water Association training may qualify for college credit toward degree programs at University of Phoenix. You may be eligible to receive additional credits toward your associate or bachelor’s degree for prior training and certificates completed with Texas Rural Water Association.
•
Water Conservation and Drought: Images of the many impacts of drought, as well as the water conservation measures developed in response
•
Rural Water History: Images of historically significant artifacts, and/or scanned historical images depicting the history of Texas’ early rural water systems
You may be able to apply additional relevant learning, work and life experiences toward college credits. Qualify by creating a professional training portfolio or writing an experiential learning essay.
Each category winner will receive a $100 cash prize and be spotlighted in a future issue of this magazine. The Grand Prize winner will be selected from the category winners and will also receive a matted and framed print of their photo. All finalists will receive a letter of recognition, and all entered photos may be featured on TRWF and TRWA program materials, websites and social media.
To learn more about PLA and which Texas Rural Water Association courses may be eligible for credit, visit phoenix.edu/trwa or call 866-354-1800 to speak with a University of Phoenix representative. Certain states limit cumulative degree program credits awarded through Prior Learning Assessment. PLA credit can only be applied toward undergraduate programs. For details please contact a University of Phoenix representative at 866-3541800.
Enter the PH2OTOSTREAM Photo Contest Today!
W
e are proud to announce the Foundation’s PH2OTOSTREAM photo contest is now accepting entries! As part of our continuous efforts to shine a spotlight on the past, present and future of rural water, we need your help.
The contest is open to the general public; however, TRWF and TRWA volunteers/staff and their immediate family are not eligible to participate. All entry packages must be received by January 15th, 2015. Winners will be notified in mid-February, and highlighted in a spring issue of this magazine. For more information about this contest, including eligibility requirements, rules and guidelines, and to download a contest release and entry form, please visit the Texas Rural Water Foundation’s website at www.texasrwf.org/#!photostream/cduo. 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.
Quality on Tap! - September/October 2014
25
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A water utility in the Hemphill, Texas area is minimizing its operations. We are selling off water storage tanks, chemical storage tanks, day tanks, chemical spill pallets, two 10hp intake pumps and motors, over 1500 feet of 2� poly pipe, two Hach 1720 Turbidimeters, two Hach CL17’s (old model), new Foxboro Storage Tank Pressure Gauges, an electronic filter valve, four filter pumps/motors, plus numerous fittings and many other items. If interested please contact us for more information. Please Contact: Phone: (409) 625-1583 E-mail: phwscwater@gmail.com
Advertiser Index AIA Insurance Agency.......................................... Page 7 American Flow Control ................................................ 11 Capps Insurance Agency ............................................. 11 Childress Engineers .....................................................20 Chlorinators Incorporated ...........................................20 CoBank ..........................................................................18 Daniel & Brown, Inc. .....................................................21 DN Tanks .......................................................................15 DSA Coatings ................................................................21 Dunham Engineering ...................................................18 Environmental Improvements .....................................15 Hayes Engineering .......................................................24 J.F. Fontaine & Assoc., Inc...........................................19 Jim Cox Sales, Inc ........................................................13 KSA Engineers ..............................................................12 Maguire Iron ..................................................................21 Pittsburg Tank & Tower Maintenance Co., Inc ...........20 RG3 Meters................................................................6, 20 Russell Drilling Co., Inc. ..............................................21 Tank Connection........................................................... 11 Texas Rural Water Foundation ....................................19 TraC-N-Trol, Inc. ............................................................19 USA BlueBook .............................................. Back Cover Velvin and Weeks .........................................................10
Plan Ahead CONFERENCES: November 5-6, 2014 Fall Management Conference, Hilton Dallas Rockwall Lakefront, Dallas
January 21-22, 2015 TWCA/TRWA Water Law Seminar, Omni Hotel Downtown, Austin
March 18-20, 2015 46th Annual Convention, Renaissance Hotel, Austin
OPERATOR TRAINING COURSES: Water Credit Courses Basic Water Works Operations: Lorena, November 11-13 Surface Water Production 2: Denton, October 21-23 ď ł New Braunfels, November 18-20 Water Distribution: Forney, October 28-30 Water Utility Management: Harlingen, October 28-30 ď ł San Antonio, December 2-4 Water Utility Calculations: San Antonio, October 21-23
Water and Wastewater Credit Courses Chlorinator Maintenance: Denton, November 4-6 Customer Service Inspections: Harlingen, December 16-17 Pump and Motor Maintenance: November 11-13 Valve and Hydrant Maintenance: San Antonio, November 4-6
Wastewater Credit Courses Basic Wastewater: Harlingen, November 11-13 Wastewater Collections: San Antonio, September 16-18
Public Funds Investment Act Courses Renewal: Dallas, November 4
1616 Rio Grande| Austin, TX 78701-1122 Telephone: (512) 472-8591 | Fax: (512) 472-5186 www.trwa.org