Quench - July/August 2018

Desalination: A Reliable Piece of the Water Supply Pie

Also Inside:

Historic Funding Available for Rural Water and Wastewater Infrastructure System Hosts First District Meeting as Part of TRWA's Emerging Leaders Program July / August 2018 www.trwa.org

TRWA Today

TRWA Board of Directors

Officers Brian Macmanus President Cameron (Dist. 6)

Chris Boyd Vice-President Denton (Dist. 3) Bruce Alexander Secretary Medina (Dist. 2)

Barry Miller Treasurer

Gonzales (Dist. 5)

Pat Allen Immediate Past President Guadalupe (Dist. 9)

District Directors Mark Gardenhire

Shackelford (Dist. 1)

Delores Atkinson Lampasas (Dist. 4)

Clay Hodges Hunt (Dist. 7) Charles Beseda Hill (Dist. 8)

Kent Watson Brazos (Dist. 10)

Kevin Spence Franklin (Dist. 11)

Shirley Thompson Kaufman (Dist. 12)

Robert Nettles Walker (Dist. 13)

Rhonda Shaw Rusk (Dist. 14)

Established in 1969, the Texas Rural Water Association (TRWA) is a statewide nonprofit trade association with an active membership consisting of approximately 750 nonprofit water supply corporations, water districts, small-town water departments and investorowned utilities. In addition, more than 200 water industry suppliers participate in TRWA activities as associate members. TRWA members provide water and wastewater service to 2.5 million customers throughout Texas.

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

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Quench — July / August 2018

Leadership Team

Lara Zent

Allison Kaminsky

Lisa Adams

Larry Bell

Celia Eaves

Janice Gibbs, CPA

Trent Hightower

Jason Knobloch

Angela Russell, CMP

Executive Director and General Counsel Deputy Executive Director Foundation Development Director Technical Assistance Director Professional Development and Training Director Finance Director Assistant General Counsel Environmental Services Director Member Services Director

Melody Bennett

Ross Brookbank

Pam Cantrell

Emily Collins

Kelsey Copeland

Patti Flunker

Angela Harris

Andrew Montemayor

Ariane Walker

Amanda Wilson

Project Support Specialist Assistant Projects Manager, Environmental Services Accounting Support Specialist Administrative Assistant Communications Specialist Executive/Legal Assistant Project Support Specialist Instructional Designer Training Support Specialist Member Services Coordinator

Thomas Acker, Jr.

Michael Beadnell

Nathan Cantrell

Alex Eaves

Paul King

Deborah McMullan

Steven Mindt

Charles Perkins

Bruce Pearson

Refugio Rodriguez

James Smith

Quentin Turner

William White

Scott Willeford

Gilbert Ybarbo

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

Office Staff

Field Staff

Contact the Editor

Editorial and advertising inquiries may be directed to the Editor, Allison Kaminsky, at 512-472-8591 or editor@trwa.org.

Join the conversation at: www.facebook.com/TexasRuralWaterAssn Find us at @TexasRuralWater and @TRWALegislative for industry and legislative news relevant to you!

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Historic Funding Available for Rural Water and Wastewater Infrastructure

Congress has provided a historic level of funding that included $5.2 billion for USDA loans and grants for water and wastewater infrastructure in rural communities.

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Protecting Ourselves from Mother Nature's Extremes

By William White, Texas Rural Water Association In extreme seasonal temperatures, we need to protect ourselves from cold and heat related injuries and know how to treat them.

Major Rivers City Boundaries (2015) 09/25/2017

25 28

12

Letter from the Executive Director Keep it Legal Answers to your legal questions

Ask Larry Answers to your technical questions

Advertiser Index Plan Ahead

TRWA’s Calendar of Events

Desalination: A Reliable Piece of the Water Supply Pie

By Kyle Frazier, Texas Desalination Association Innovations in advanced water treatment and other technologies are allowing us to access, treat, move and use water in ways that are new and necessary.

17 New Wastewater Discharge Rule for Dental Offices

In Every Issue: Letter from the President

4 5 14 18 31 31

On the Cover: "Gallery Pond Wheel," North Alamo WSC, PH 2OTOSTREAM 2018 Category Finalist

By Alex Eaves, Texas Rural Water Association Learn about new standards and requirements to reduce the discharge of mercury-containing amalgam from dental offices into publicly owned treatment works.

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Salvage Your Scrap for America Recycles Day

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Why a Maintenance Reserve Plan is Important for Your System

25

27

28

By Lisa Adams, Texas Rural Water Association America Recycles Day, a program of Keep America Beautiful, is a nationally recognized day dedicated to promoting and celebrating recycling.

By Paul King, Texas Rural Water Association Water systems that maintain their assets are much more likely to provide safe and reliable drinking water for their customers.

System Hosts First District Meeting as Part of TRWA's Emerging Leaders Program

By Jaleesa Auzenne, TRWA Emerging Leaders Program Harris County MUD No. 50 brought together representatives from local systems and county agencies to increase awareness of community concerns and develop community engagement.

Recognize Excellence through TRWA's Awards Program

By Allison Kaminsky, Texas Rural Water Association Every year, rural water systems across Texas submit nominations for these prestigious awards honoring those who exemplify excellence, dedication and achievement.

TRWA Briefs

National Rural Water Conference Comes to Texas; Save the Date for Our Fall Conferences; Pass the Hat for PAC this Fall; Call for Presentation Proposals; TRWA to Offer New Sales Tax Exemption Certification Service Quench — July / August 2018 3

President’s Message Howdy Texas Rural Water Association!

Texas heat is here. I hope each of you is doing your best to deliver "best in class" customer service, despite the numerous obstacles that are always thrown our way. I also hope each of you find some down time during these warm months to enjoy your family and friends on the lake, river, beach, pool or wherever, and simply reflect on your many joys and blessings. It is amazing how so many of our fun memories are developed around a source of water.

“We are still very short of our PAC goal this year, and we need each TRWA member to contribute to help close the gap.”

Much is going on with your great Association. TRWA is preparing to welcome all the great folks from National Rural Water Association (NRWA) at the WaterPro Conference in Fort Worth, Texas on September 17-19, 2018. Come join us as we recognize our own Kent Watson as the new incoming NRWA President! Congratulations to Kent on a job well done representing us with NRWA and for many years of service to TRWA. We also have our combined Fall Management & Districts Conferences in South Padre Island this year from October 3-4, 2018. This is a new location for TRWA, and I hope you will come and enjoy the warm October weather and palm trees here in Deep South Texas. Maybe you can get some fishing in too.

Our 2018 PAC fundraising efforts are picking up this Fall with "Pass the Hat for PAC." We are still very short of our PAC goal this year, and we need each TRWA member to contribute to help close the gap. This is a simple and less expensive way to make a difference in our legislative efforts. Please pitch your $10 in the hat in your September or October board meeting. Then have your manager send the money in to the PAC with a personal check. It is simple and effective. Please participate and make a difference for candidates that support Rural Water!

Until next time, keep the water going with a smile.

Be Good,

Brian E. Macmanus, P.E. President Texas Rural Water Association

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Quench — July / August 2018

Letter from the Executive Director

I would like to thank everyone who attended one of our summer conferences! Both the Office Professionals Conference in June and the Training and Technical Conference in July were very well-attended. We had the opportunity to try out some new ideas with attendees, such as our new interactive conference app Sli.do. We are excited to implement another new idea, which is to form an Exhibitor Advisory Committee to help us improve the experience in our exhibit hall for future conferences.

As Brian mentioned, we hope to see you in September at the NRWA WaterPro Conference in Fort Worth. As the host state, we have several fun events planned throughout the week, including a golf scramble the morning of Sunday, September 16, and a clay shoot later that afternoon. Get a team together and come on out for some friendly competition with our fellow state associations! As a bonus, this year the stars have aligned to bring the WaterPro Conference to the great state of Texas at the same time we will be inducting as NRWA President our own Kent Watson, who has been Texas’ representative on NRWA’s board for 10 years. If you plan to attend the conference, please be our guest at the President’s Reception on the evening of Tuesday, September 18 and help us celebrate Kent and his new position. More details about this year’s WaterPro Conference and its surrounding events can be found on page 28 of this issue.

Next, we will be hosting our regional Fall Management Conferences in South Padre Island on October 3-4 and in Frisco on November 7-8.

These conferences are designed to keep attendees in-the-know about the latest issues, including a 2019 Legislative Preview, regulatory updates, policies every system should have in place, and the newly required Water Loss Auditor Training. Those attending the South Padre event will also get the added benefit of being able to attend any session at the Districts Conference (and vice versa), which will be held concurrently at the same location. Our Districts Conference focuses on the legal, regulatory and management issues unique to water districts.

“Your feedback is greatly appreciated and is used to refine our programs and member benefits.”

Providing quality and relevant training and education that helps you do your job more effectively is a big part of our mission, and we are always looking for ways we can improve. We have decided to try something new this year and put out a call for presentation proposals for our 2019 conferences. If you have an idea for a presentation and/or are interested in speaking at one of our conferences, turn to page 29 of this issue to learn more.

Please remember to fill out our membership survey if you haven’t already.

Your feedback is greatly appreciated and is used to refine our programs and member benefits. After all, we are here as an Association to serve you—our members!

My best,

Lara Zent Executive Director and General Counsel Texas Rural Water Association

Quench — July / August 2018 5

O

ne of the numerous benefits of a membership with the Texas Rural Water Association you hold in your very hands — our bimonthly magazine, Quench.

Year by year, our magazine has become more and more popular, thanks to you, our loyal readers!

To ensure the continued success of Quench, we have decided to implement a new subscription process for 2017. This will help us speak to the increased demand and associated production costs by ensuring an accurate and manageable distribution list.

Your membership with TRWA will continue to include complimentary subscriptions to Quench: •

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

•

Associate Members — One (1)

•

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

•

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

We will issue your system’s complimentary copies of Quench to the main mailing address for your utility, beginning with our January/February issue, until any updates are received.

If you have any questions or if this new subscription process creates a financial hardship for your system, please contact us at editor@trwa.org or call (512) 472-8591.

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Quench — July / August 2018

Historic Funding Available for Rural Water and Wastewater Infrastructure

I

n March 2018, Congress provided a historic level of funding that included $5.2 billion for United States Department of Agriculture (USDA) loans and grants for water and wastewater infrastructure in rural communities under 10,000 population. At this level, USDA, under the leadership of Secretary Sonny Perdue, have the necessary resources to completely address the $3 billion backlog and ensure additional investments are targeted to rural communities with the greatest infrastructure needs.

“Robust, modern infrastructure is foundational for quality of life and economic opportunity — no matter what zip code you live in,” Assistant to the Secretary for Rural Development Anne Hazlett said in a news release on July 16, 2018. “Under Secretary Perdue’s leadership, USDA is committed to be a strong partner in addressing rural infrastructure needs to support a more prosperous future in rural communities.”

“For decades, elected officials from the local county supervisor to the President have placed aging infrastructure as one of the top priorities. These efforts have now come to fruition,” National Rural Water Association (NRWA) CEO Sam Wade stated.

“Small communities and rural water and wastewater systems are highly encouraged to apply for USDA loans and grants now. Since Congress has clearly recognized the need by providing robust funding levels, we must fully utilize these resources to strengthen Rural Water.”

Replacement projects, upgrades needed to existing assets and other work not needing extensive environmental review that could be started very soon are candidates for funding in the current cycle.

Please consider for immediate action near-term items on your capital improvement plan or items that have shown signs of failure, such as mains with a history of numerous breaks. If your system is not fully metered, this availability of funds now presents a great opportunity.

Rural community leaders can apply for these funds electronically by using the interactive RD Apply tool, which can be accessed online at: https://www. rd.usda.gov/programs-services/rd-apply.

They can also apply or get assistance with an application through one of USDA Rural Development’s state or field offices. In Texas, the contact is Community Programs Director Michael Canales who can be reached at 254-742-9780. Most loans and grants are originated and serviced in the Area Office. You can visit the USDA RD website at https://www.rd.usda.gov/contact-us/state-offices/ tx to get the contact information for the Area Office relevant to your county. Please give USDA RD a call to talk about your project.

Quench — July / August 2018 7

Protecting Ourselves from Mother Nature's Extremes

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By William White, Assistant Technical Assistance Director, Texas Rural Water Association

s I am writing this, the temperatures have been well over 100 degrees for several days, but when I thought of this topic, our state was suffering colder than normal temperatures.

I arrived at a water plant late in the day, and the operator was leaving to check repairs he had made at a pump station that was damaged due to freezing temperatures. The operator stopped to talk to me and was shivering as he talked. I realized he was soaking wet and turning blue. Like many operators at small systems, he was working alone and was dedicated to getting his system back up and running, all the while neglecting himself. He wisely decided to go home and get into dry clothes and get warmed up before returning to the pump station. As I left the system, I thought about how many operators, myself included, have put themselves in similar situations and how easily it could turn into disaster. I want to discuss cold and heat related injuries and how they can be prevented.

Since it is still summer, I think it is only proper to discuss heat related illnesses first. Water systems require work to be done during the day, which in Texas during the summer means regularly working in temperatures exceeding 100 degrees.

Excessive humidity only amplifies the effects of high temperatures, creating a higher heat index (heat felt by the body). Here are a few terms used when discussing heat waves: Excessive Heat Watch – Favorable conditions for a heat event to meet or exceed Excessive Heat Warning criteria in the next 24–72 hours.

Heat Advisory – Heat index values are forecasted to meet daytime highs of 100 to 105 degrees for 1 to 2 days.

Excessive Heat Warning – Heat index values are forecasted to meet daytime highs of 105 to 110 degrees for at least 2 days.

While temperatures above 100 degrees are dangerous, we can be affected by heat injuries at even lower temperatures during strenuous activity.

Let’s discuss heat related illnesses and how we can prevent them.

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Quench — July / August 2018

Heat Cramps – Muscular pains and spasms usually in the abdomen or legs that are an early sign the body is having a hard time dealing with the heat.

To treat heat cramps: • • • •

Get to a cooler location and rest Lightly massage and stretch the cramped muscles Drink an electrolyte fluid such as sports drinks, fruit drinks or drink water Do not take salt tablets

Heat Exhaustion – More severe than heat cramps, often affecting those working in heavy clothing in hot, humid conditions. Signs of Heat Exhaustion include cool, moist, pale, clammy or flushed skin; headache; dizziness; nausea; weakness and exhaustion. To treat heat exhaustion: • •

• •

Move to cooler location with air flow Remove and/or loosen as much clothing as possible and cover with cool, wet cloths or towels. Fanning or misting with water can also help.

Drink a minimum of 4 ounces of sports drinks, fruit juice or water every 15 minutes. Do not take salt tablets.

If a person suffering heat exhaustion does not improve, refuses water, vomits or becomes unconscious, call 9-1-1 and seek medical treatment.

Heat Stroke – Ignored and untreated, heat exhaustion can become life-threatening heat stroke.

Heat stroke occurs when the body is overwhelmed by heat and begins to stop functioning. Signs of heat stroke include extremely high body temperature; red skin, which could be dry or moist; rapid, weak pulse; rapid, shallow breathing; confusion; vomiting; seizures; and change in consciousness. To treat heat stroke: • •

Call 9-1-1! Heat stroke is a life-threatening condition, and medical attention is required.

Rapidly cool the body by immersing it in cold water or spray with cold water. If you are unable to immerse or spray with water, sponge with ice cold wet towels.

• •

Cover with bags of ice If you can’t measure the patient’s temperature, apply rapid cooling treatments for 20 minutes or until the person improves. Even if the person improves, seek medical attention.

Take proactive measures to reduce your chance of succumbing to heat-related illnesses.

•

• • •

• • •

•

Stay hydrated. Even if you are not thirsty, drink plenty of liquids. Avoid caffeine and alcohol. One trick is to drink from a frozen jug of water as it melts. If you feel thirsty you are dehydrated.

Eat smaller meals more often Avoid moving back and forth between extreme heat and extreme cold Wear lightweight, loose-fitting, light colored clothing. Avoid dark colors which absorb heat from the sun and synthetics that do not wick away sweat or allow air flow.

Slow down and take more breaks to allow the body to cool down Change work hours to avoid extreme mid-day temperatures Set up a system to check on those working in extreme heat such as a buddy system or having them check in with the office on a set schedule Use wet towels or “cooling cloths” around the neck to cool the blood in the neck, which cools the body. When feeling hot, run cool water over the wrists, which cools the blood in arteries and veins close to the skin the in wrists.

We know that work must be done in the extreme heat of the Texas summer, but we need to ensure workers do not succumb to heat-related illnesses.

With each bout of heat-related illness/condition the body loses its resistance and becomes more susceptible to be affected again.

Now to discuss the cold-related injuries Frostbite and Hypothermia, which can become limb or life threatening.

Frostbite is the freezing of a specific body part such as toes, fingers, ears or nose. Frostbite is caused by exposure to temperatures or wind chill below freezing. Signs of frostbite include lack of feeling in the affected area and the skin is cold to the touch and appears waxy or discolored (flushed, white, grey, yellow, purple or blue). To treat frostbite: • •

Move to a warm location Handle area gently and DO NOT rub, since ice

• • • • •

crystals in the tissue could cause damage if handled roughly Warm gently, soaking in warm water (100-105 degrees) until the area appears red and feels warm Loosely bandage with a dry, sterile bandage separating fingers or toes if they are affected Do not break any blisters Do not allow the area to re-freeze Seek medical attention, as frostbite can cause the loss of limbs

Frostbite is rare in most of Texas, but can occur during freezing weather, especially working in wet conditions as many utility workers do each year.

Hypothermia is a cold-related emergency that can quickly become life threatening. It is a failure of the body’s warming system, causing the body to cool. While hypothermia is often associated with freezing temperatures, any cooling of the body below 95 degrees is dangerous and can become life threatening. Signs of Hypothermia include shivering, numbness, glassy stare, apathy, weakness, impaired judgement, and loss of consciousness. To treat hypothermia: •

• • • • • • •

Call 9-1-1 immediately. If this is not an option, treat and seek medical attention as soon as possible to prevent death or serious permanent injury.

Move to a warm location Monitor breathing and circulation and provide CPR if needed Remove wet clothing and dry the person Warm slowly, putting on dry clothes and wrapping in blankets Hot water bottles/chemical heat packs wrapped in a towel may be applied Do not warm too quickly, such as immersing the body in warm water, as dangerous heart arrhythmias can occur Warm the core first, and then move out to the hands and feet. Warming the hands and feet first then moving to the core can cause shock.

Since not working around water in cold weather is not an option for water operators, precautions can be taken to lessen your chance of succumbing to coldrelated injuries.

• •

Be aware of wind chill Dress appropriately • layer clothes and choose insulating layers that are made of materials that do not lose Continued on page 10 Quench — July / August 2018 9

Continued from page 9

•

• • • •

• •

their insulation properties when wet. Wear outer layers that repel water such as rain coats.

• Wear insulated water-proof boots or waders • Wear gloves and a hat to prevent heat loss Drink plenty of warm fluids, avoiding caffeine and alcohol. Caffeine and alcohol can have a short-term warming affect, but then can cause a cooling affect by restricting blood vessels.

Stay active to maintain body heat Eat good balanced meals to give your body warming “fuel” Do not spend more time than necessary in the cold Keep extra clothes handy so if you become wet you can change into dry clothes. Many systems have clothes dryers to dry wet clothes, allowing operators to stay in dry clothes.

Get out of the cold if signs of frostbite or hypothermia appear Work in pairs in cold weather or have a checkin system to keep track of workers

While the water utility industry requires employees to work day and night in all weather conditions, with a little vigilance, we can keep ourselves and our colleagues safe from becoming a heat- or coldrelated casualty. The most valuable asset any water system has is its employees, and while we do not want customers without service, the health and safety of system employees must come first.

Illness and treatment information in this article comes from the American Red Cross. If you would like to learn more, visit their website at www.redcross. org.

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Quench — July / August 2018 11

Desalination: A Reliable Piece of the Water Supply Pie

By Kyle Frazier, Executive Director, Texas Desalination Association

T

he drought of 2011 is a bad, recent memory— and there are current signs of its return. Many people and places in Texas are now looking hard at new, reliable sources of water. Of course, we know from 8th grade science class and the hydrological cycle that there is no new water on the planet. We have the same amount of H2O now as we did when dinosaurs walked the earth. But innovations in advanced water treatment and other technologies are allowing us to access, treat, move and use water in ways that are new and necessary.

of which provide municipal drinking water. But this shows just a tiny fraction of the opportunity that exists, and what we have not yet done as a state is to tap in to our vast marine resources along the 3,300 miles of Texas coastline. That will change soon. Eleven seawater desalination projects are listed in the 2017 State Water Plan. As you read this, municipalities, water authorities, water developers and engineers are negotiating, maneuvering and planning to bring seawater desalination to the Texas coastal region.

Desalination of brackish groundwater and marine seawater provide real opportunities for Texas.

Desalination is not a new thing. The technology to remove salt and contaminants from brackish groundwater and seawater has been around for many years—even the early Egyptians were known to have used a form of thermal desalination for water treatment. But in the drought-prone environments of today, desalination technology is rapidly changing— improving and becoming more energy efficient, environmentally responsive and economically viable.

Most of Texas’ brackish groundwater desalination plants are small but important intermittent-type facilities. The map on the subsequent page shows the distribution, size and source water of existing municipal brackish desalination facilities in Texas with a design capacity of more than 0.023 million gallons per day. Brownsville, El Paso and San Antonio operate significant and scalable brackish groundwater desalination operations — all with attention on increased efficiency and expansion.

The cost of desalination has been the perceived barrier for this water treatment technology to get the attention it deserves in Texas. While desalination costs vary considerably by location, a 2012 study by the Texas Water Development Board (TWDB) determined that total production cost of desalinated brackish groundwater in Texas ranged from $1.09 to $2.40 per thousand gallons. A report by the Texas Tribune the same year showed that Houston water customers paid $4.19 per thousand gallons for their drinking water.

Today, desalted brackish water can be a reliable piece of a city’s water supply portfolio. In rural parts of west and south Texas, brackish groundwater is gaining in favor as surface waters and fresh aquifers decline due to demands from people, industry and recurring drought. With vast brackish groundwater reservoirs below the surface—estimated at 2.7 billion acre-feet by TWDB —some innovators in our state are already tapping in to these underground resources for drinking water and industry.

More than 100 brackish groundwater desalination plants are in operation today in Texas, about half 12

Quench — July / August 2018

It’s time for Texas—with a fast-growing population of 500 persons per day, huge geographic size, ecological diversity and susceptibility to drought—to move decidedly forward with desalination technology to meet growing needs and water supply demands.

Currently eight of the 16 state water-planning groups have desalination in their plans for the future. Some would say these plans far underestimate the potential for desalination to factor in to our state’s future water supply, especially considering the drought-tolerance of this technology.

Texas’ industrial base continues to invest billions of dollars each year in new or refurbished infrastructure, so when it comes to desalination, opportunities abound. Combining the increase in population with a large industrial base and everchanging weather patterns means that desalination will continue to grow across all sectors of the market in Texas.

The Texas Desalination Association (TexasDesal) was established in 2011 in response to the effect of a multi-year drought on municipal, agricultural and industrial water supplies, including those needed for oil and gas production. The record-breaking heat,

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Outreach efforts are also part of TexasDesal’s mission. The Association hosts an annual education conference attracting more than 300 participants from federal, state and local government agencies, state legislators, state regulators from multiple agencies, the public, academia and desalination industry experts and suppliers. This year’s conference, TexasDesal 2018 on September 13-14, will bring together water leaders from Texas and around the world to present the latest water treatment, development, regulations and risk management.

Go to TexasDesal2018.com for more information and to register.

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Interstate Highways US Highways Major Rivers City Boundaries (2015)

fire and drought conditions made it clear that surface water is not sufficient to meet Texas’ growing needs.

The state’s historic dependence on that limited supply has become a liability for public safety and economic prosperity. Texas must create new water supplies, and the obvious source is below our feet and in the Gulf.

While desalination and water recycling are not new to Texas, they have lacked unified vision and representation. Since 2011, the members of TexasDesal have been involved at the state level educating decision-makers about the need to incorporate desalination and recycling into long-term water supply planning. Streamlining state agency permitting processes as it pertains to desalination and recycling water has been a TexasDesal priority.

The interest level continues to be high among our elected officials, including Texas Governor Greg Abbott. He and other politicians have traveled to Israel to visit desalination and reuse facilities and witness the positive effects of desalination and reuse in Israel.

Texas needs desalination and the Texas Desal Association is here to help the public, industrial, agricultural, military, academic, regulatory and legislative sectors interact and become educated on

TexasDesal also funds a scholarship program for higher " ) " education students, undergrads to doctoral candidates who are engaged in water resource planning and/ or research. The scholarship fund is named for Ed Archuleta, widely recognized as the driving force behind the Kay Bailey Hutchison Desalination Plant in El Paso that opened in 2007 and stands today as the largest inland desalination plant in the United States. Recipients of the Ed Archuleta Desalter Scholarship will be announced and awarded at Texas Desal 2018. ) "

) "

Cameron ) "

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15

30 mi

09/25/2017

As you plan for the success of your community’s future, consider desalination as a drought-proof water supply. Learn more about desalnation, the association, membership and the annual conference at TexasDesal.org.

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Keep It Legal Answers to Members’ Questions by TRWA Assistant General Counsel Trent Hightower

Q:

A third-party electronic billing company has established a website that allows our customers to pay their water bills electronically. We have no relationship with this company, have not signed a contract with them, and, in fact, we have an agreement with a different vendor to handle our electronic payments. When customers use the unauthorized site to pay their bill, the company remits the payments to our system; however, the payments are often late, subjecting customers to late fees and shutdown of water services even if they paid on time. Is this legal?

A: This is an issue we’ve been hearing a lot about lately. The short answer is that, while this is legal, these third-party billing companies often use tactics that can easily mislead your customers. One of the largest such companies is called Doxo, a startup partially funded by Amazon founder Jeff Bezos. The premise of the company is to provide consumers with a one-stop bill payment option—instead of visiting different sites to pay their water bill, car insurance and various credit card bills, users can pay everything all in one convenient location (for a fee, of course).

While that may sound convenient, customers should beware. The Doxo payment interface often looks as if it is being operated by the water system itself. The system’s logo, contact information and other information one would expect to see on the system’s website is right there—it all looks very official, but it’s not actually affiliated with the water system n any way. Customers usually come across this alternate payment site by doing a Google search for their water system and a term like “online bill pay.”

Quite often, the Doxo payment portal is one of the top options, even ahead of a water system’s actual direct bill pay portal on their own website. While all of this could easily mislead an unwary customer, it is legal. Doxo actually does remit payments to their intended recipients and their sites do contain a small disclaimer that they are “an all-in-one bill pay service” that is “not affiliated” with the utility. Aside from the fees associated with using the site, the main 14

Quench — July / August 2018

drawback is that Doxo doesn’t always remit payment to the recipient before the bill’s due date, which can result in a customer being hit with a late fee on a bill that they thought they paid on time. To date, at least one utility in California has filed a lawsuit against Doxo for infringing on its trademark by using its logo and other property on the third-party site.

So, what can water systems do to ensure their customers don’t receive a late fee or shutoff notice when using a third-party site like Doxo? First, you should do a quick online search for your system’s name and the term “Doxo” to see if one of these third-party payment portals exists for your system.

If it does, put a notice on your system’s website indicating that Doxo is not affiliated with the system for purposes of making online payments, and inform your customers that you cannot guarantee that payments made through Doxo will be credited to their account before they are due. Be sure to direct customers to your preferred online payment vendor, if you have one, and make sure it is clear where customers can click to use that vendor’s payment portal. Finally, send the same information to your customers by traditional mail and/or email. When coming directly to your website to make a payment, they usually won’t encounter the Doxo site, but if they do a Google search for your online payment page they may inadvertently end up on the Doxo version instead.

Q: Our system is seeking a loan from a local bank, and we are currently soliciting bids for the most competitive interest rate. One of the banks has indicated that they might be able to provide us a with a better interest rate because the interest they will collect on that debt is exempt from the bank’s income taxes. Is this true?

A: This is one of those questions that depends on whether your system is a water supply corporation (WSC) or a special utility district (SUD). The short answer is that banks do not pay income tax on interest earned on debt issued to SUDs, but they do pay income tax on that interest if the loan is to a WSC. The relevant federal tax regulation is 26 C.F.R. 1.103-1, which states that “interest upon obligations

of a state…or any political subdivision thereof… is not includable in gross income[.]” The regulation further defines “political subdivision” as “any division of any state or local government unit which has been delegated the right to exercise part of the sovereign power of the unit.” This definition applies to SUDs, which have been recognized repeatedly as political subdivisions of the state, but not WSCs, which are nonprofit corporations.

There are references in certain sections of the Texas Water Code that state that WSCs are political subdivisions for specific purposes. However, the Texas Attorney General has issued an opinion that those provisions are limited solely to the chapters in which they appear. None of those provisions apply in to this situation, so banks owe taxes on income generated from loans to WSCs. Q: Our WSC is located in a very high-growth area. Due to oil field activity in our service area, we are getting more service requests than our system’s manpower and infrastructure can handle, and we currently have a waiting list of several weeks to install new service. Can we place a moratorium on new memberships? What else should we be aware of as it relates to the Public Utility Commission’s (PUC) service rules?

this to applicants, even if the expected date is several months away.

Second, notify applicants of the increased demand your system is experiencing due to the oil field activity in your area. If possible, provide numbers to document just how many new connections have been requested recently, and compare that to what your system considered to be typical under more “normal” conditions in your area. Finally, document the steps your system is taking to improve the situation, such as plans for hiring additional personnel, and let applicants know that you are trying to speed up the process.

Q: I have a question about the location of meters. Many years ago, two neighboring landowners agreed that the “back” landowner’s meter would be placed on the “front” landowner’s property to cut down on costs. They also agreed to have a line go across the front property to the back property, and our system agreed to this arrangement. Today, the new owner of the front property is concerned about leaks and wants the line and meter moved. Who pays for that?

"The primary takeaway here is to always follow your tariff and PUC rules when providing service to customers."

A: As a threshold matter, you absolutely should not flatly deny service or place a moratorium on new accounts. PUC Rule 24.85 explicitly requires “[e]very retail public utility shall serve each qualified service applicant within its certificated area as soon as is practical after receiving a completed application.” Subsection (b) of that rule states that the failure to provide service within 30 days of an expected date or within 180 days of receipt of a completed application constitutes a refusal to serve, and may result in the assessment of administrative penalties and revocation of the utility’s certificate of convenience and necessity (CCN).

The good news is that subsection also contains the qualifier “except for good cause shown,” which means that your system needs to be able to show the PUC that “good cause” exists for the delays. First, if construction is necessary to establish service and cannot be completed within 30 days, Rule 24.85(a) (5) requires systems to provide applicants with a written explanation of the construction as well as an expected date of service. You should always provide

A: While this seems at first glance to be an issue between the two landowners, there is cause for the system to be concerned. PUC Rule 24.86(a)(3) states that “meters shall be located on the customer's property, readily accessible for maintenance and reading and, so far as practicable, the meter shall be at a location mutually acceptable to the customer and the utility.” Thus, even if the parties are able to work out between themselves where the meter and line should be located, the system could be on the hook for the cost associated with moving them.

The PUC has been known to request a copy of systems’ tariffs which were in effect at the time a particular service was installed, sometimes going back several decades to decide who is liable for issues relating to compliance. In at least one case, the PUC ruled in favor of a customer when a system could not provide a written policy to support a service that was installed in the 1970s.

The primary takeaway here is to always follow your tariff and PUC rules when providing service to customers. This is the best way to avoid placing the system in the middle of private property disputes, and Continued on page 16 Quench — July / August 2018 15

Continued from page 15

the most effective way to avoid liability assessments from the PUC. Q: Are WSCs exempt from paying sales taxes?

A: There is a common misconception among water systems that, since they are nonprofits, WSCs are fully exempt from paying sales taxes. While this is not the case, Sec. 151.355(5) of the Tax Code allows nonprofit water supply corporations to obtain tax exemptions on qualified purchases through a certification process at TCEQ, which will certify systems as a regional provider for purposes of tax exemption if they meet specific criteria.

Many systems and their vendors do not realize they need this certification and conduct business as if the system is tax exempt. Unpaid sales taxes are often discovered when the Comptroller audits a vendor, which can lead to high unpaid tax bills for water systems. Some systems are aware the certification is required, but don’t know how to obtain it and take their chances that they won’t be caught.

Other systems feel that it’s too complicated or don’t have the time to submit the documentation for

TCEQ approval, so they continue to pay the sales tax unnecessarily. Any qualifying system that has not received its certification is either paying taxes unnecessarily or could be exposed to a surprise overdue tax bill at any time.

The TRWA Legal Department will now file the necessary paperwork with the TCEQ on behalf of member systems, similar to the eminent domain filing service we have offered for a few years. This one-time certification process will prevent systems from paying taxes on a wide range of qualified purchases and expenses. For more information about the service, please visit the "Legal" tab of the TRWA website at www.trwa.org or contact the Legal Department at 512-472-8591.

If you have a legal question you would like answered, please email legal@trwa.org.

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New Wastewater Discharge Rule for Dental Offices

By Alex Eaves, Wastewater Technician, Texas Rural Water Association

O

n July 14, 2017, the US Environmental Protection Agency (EPA) adopted new pretreatment standards, record keeping and reporting requirements to reduce the discharge of mercury-containing amalgam from dental offices into publicly owned treatment works (POTWs). The complete rule can be found in Title 40 of the Code of Federal Regulations Part 441. The effective date for these requirements was July 19, 2018.

The TCEQ may also consider additional factors and require a POTW to develop a TPDES pretreatment program.

These regulations mean that dental offices who receive wastewater service from a POTW (directly or indirectly) are subject to several requirements, including the requirement to submit a One-Time Compliance Report to the pretreatment Control Authority to demonstrate their compliance with the law.

What if I am a POTW and the Control Authority?

To determine if this rule affects your wastewater system, determine first if you are a POTW and then if you are the pretreatment Control Authority.

Is my wastewater treatment plant a POTW? • •

Yes, if owned by a municipality or a political subdivision such as a municipal utility district (MUD) No, if owned by an individual, corporation or cooperative corporation such as a sewer or water supply corporation

•

One or more industrial users of the POTW meet the definition of “categorical industrial user.”

Still not sure? TCEQ has developed a list of Control Authorities. Check to see if your system is on the list at: https://www.tceq.texas.gov/permitting/ wastewater/pretreatment/dental-office-wastewaterdischarge-rule.

Affected dental offices must submit a OneTime Compliance Report to you that includes the information required by the rule. A sample report can be found at www.epa.gov/eg/dental-effluentguidelines. TCEQ has also created a helpful sample report, Form TCEQ-20808 “One-Time Compliance Report for Dental Discharges,” for those dental offices that are required to submit the report.

If you have questions about this article, contact TRWA Wastewater Technician Alex Eaves at alex. eaves@trwa.org.

Am I the Control Authority?

For most systems, TCEQ is the Control Authority.

The POTW is the Control Authority if the POTW's Pretreatment Program has been submitted and approved by TCEQ. However, the TCEQ may require the development of a Texas Pollutant Discharge Elimination System (TPDES) pretreatment program when the POTW (or combination of wastewater treatment plants) meets the following conditions: • •

The total design flow is greater than 5 million gallons per day; Industrial or commercial customers of the POTW discharge pollutants into the wastewater system that either pass through the treatment plant or interfere with its operation; or Quench — July / August 2018 17

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

Q:

Are transmission lines required to maintain 35 pounds per square inch (PSI) at all times? Our engineer has requested a pressure study because portions of our transmission lines fall below that threshold when the pumps are turned off. Is the study necessary?

A: This is a great question and one many systems have had to deal with over the years. Many years ago, I knew of systems that had remote wells and transmission lines for treated or untreated water to be delivered to a main storage tank for distribution to retail customers. Most of these systems did not maintain 35 PSI while the pumps were off on the transmission lines.

However, a May 2018 Guidance from the staff of the TCEQ Plan and Technical Review Section regarding minimum pressure requirements reflects the current Rule 290.44(d). This rule requires a minimum of 35 PSI on all transmission lines to keep any seepage from external ground water or surface water sources from contaminating the transmission lines.

The staff Guidance does provide systems with direction on how to obtain an exception to this requirement. Systems seeking an exception must demonstrate to the TCEQ’s satisfaction that the water transmission line has been designed to maintain a minimum internal pressure of 5 pounds per square inch gauge (PSIG) above any external hydrostatic pressure. This includes, but is not limited to, any combination of expected maximum seasonal groundwater elevation and ponded surface water elevation. The Guidance also includes all supporting documentation that must be provided to TCEQ. One final comment about the pressure study: it may be worthwhile to pay for this study if it identifies just one or two sections of the transmission lines with pressure below 35 PSI, because the system could then request an exception for the higher elevations only and not the entire stretch of the lines. For example, if the only place the pressures falls below 35 PSI is at the top of a hill which has no ponds or other potential ground water in that area, 18

Quench — July / August 2018

the TCEQ would have fewer objections than if the area in question is under a river, lake, stock tank or swamp.

Q: When TCEQ changed its rules relating to the maximum number of connections for lines of various sizes in the 1980s, we did not upgrade the size of a 2-inch line that had almost the ten connections allowed for a line of that size. We now have a new customer who wants service on that line, but the new connection will likely affect pressure for the other customers. Can we deny service to this customer? Weren’t we “grandfathered in” when the new rules went into effect?

A: You cannot deny service to this customer if they comply with all your system’s rules for service.

PUC Rule 24.85 states that “every retail public utility shall serve each qualified service applicant within its certificated area as soon as is practical after receiving a completed application.”

The “grandfathering” of established lines is a pretty common misunderstanding among operators, managers and board members across the state.

Many of them assume that since TCEQ didn’t write them up for lines that were too small at the time the agency enacted the new rules, the old lines were “grandfathered” in and considered compliant, but that is not the case. While TCEQ did not require systems to replace all older lines when the new rules went into effect, it still requires systems to comply with its pressure requirements. Essentially, the TCEQ did not give systems a pass for having lines that were too small, it simply gave them time to get into compliance with the new rules.

Additionally, you should be aware that the “85 percent rule” (TCEQ Rule 291.93(3)) applies here, even for this older line that was in the ground before the rule was enacted. This rule requires systems to maintain a 15 percent “cushion” on the maximum capacity of their lines. So, for example, the capacity limits found in TCEQ Rule 290.44 require a maximum of 10 connections on a two-inch line.

However, the “85 percent rule” actually means that

once a system has eight connections on that line, it’s time to upgrade to a larger size to accommodate future connections because the ninth connection will put the system above the 85 percent threshold required by the rule. This is very important to keep track of for planning purposes, even for old lines that were in place before these rules were enacted.

Q: A current member of our WSC wants to add a second meter on their property. We would like to give members a cost break on subsequent meters. Can you explain why we have to charge customers for the cost of a full membership for a subsequent meter if they are already a member?

Q: What can you tell me about the new “electronic read” meters on the market today?

How common are they compared to the traditional positive displacement manual read meters?

A: Discrimination is a primary issue that must be addressed up front in this situation. The term “discrimination” applies to all the functions relating to customer policies, rates, fees and charges. If a system provides the same level and manner of service to two groups of customers (such as new applicants and existing members), what is the difference in cost for installing a new meter? There is no difference in the cost of materials or labor for installing the same size meter and service lines regardless of whether the work is for an applicant who has never been a member or for an existing member. Systems must apply the same nondiscriminatory policy when setting rates, fees or other charges as well, and if the system provides the same type of service, then the prices should be the same for each group.

A: TRWA hasn’t tracked the number of systems that have installed “electronic read” meters, whether they be the AMR (drive-by) or AMI (instrumental gathered information) meters. I have visited several systems who have purchased AMR meters that are compatible with the AMI meters. By doing this, when they get a few more meters, they can begin replacing the meter tops with these newer AMI tops.

This eliminates the need for a system to conduct manual drive-bys and allows all meters to be read from the whole system in a matter of minutes from the office.

The side benefit of the AMI technology is that when someone reports a leak in the system, this type of meter allows the system to read meters in that section to determine if the leak is from their system lines or from overwatering or leaks on the customer’s side.

Over the past year I’ve talked to at least a dozen systems with existing AMR meters who are upgrading or replacing them due to older meter batteries not holding up. Other systems are installing AMR Meters for the first time, installing AMR Meters in high density or high-traffic areas or upgrading to AMI meters.

Most of these systems have had positive comments about the dependability of these newer types of meters, and some reported only a 5 percent re-read when the meters were originally installed (this percentage typically went down as they got the bugs worked out). Most of the re-reads were because the brand of meters the system had installed used exterior-mounted antennas, which were susceptible to a variety of hazards, such as gophers, dogs or lawn mowers. Others were due to leaks grounding out meters. In the last couple of months, I’ve heard from some systems that they were moving to totally enclosed and sealed registers. The elimination of external parts should reduce the need for re-reads due to malfunctions.

When the board decides to enact an up-front capital improvement fee or equity buy-in fee, those fees may only be charged to new applicants. Even existing members become applicants when they apply for an additional meter, because these fees allow the system to recuperate for facility capacity in place or pay for new improvements yet to be installed. This way, the existing customers’ rates don’t have to go up to pay for new growth in the system.

If the system waived up-front fees for current members when they wanted a second meter, or if it made new applicants (those without an existing meter) pay more for the same type of meter installation, this would be considered discrimination.

Additionally, the Public Utility Commission (PUC) requires that all fees, charges, rates and policies be administered based on the justifiable costs associated with each type of charge, fee, rate, or policy. Systems can’t charge different disconnect fees for disconnecting the same size meter installations. It only takes one aggrieved party to protest discriminatory fees to the PUC, which will require the system to produce written justification and calculations showing why one group’s meter installations cost more than the other group's.

If you have a technical question you would like answered, please email larry.bell@trwa.org.

Quench — July / August 2018 19

Salvage Your Scrap for America Recycles Day

W

By Lisa Adams, Foundation Development Director, Texas Rural Water Association

hat happens to recycled items? When you choose to recycle, these used materials are being converted into new products, reducing the need to consume natural resources.

Recycling is also important for saving energy and reducing the amount of garbage in landfills. Most importantly, one of the best benefits to recycling is the impact it has on the earth and our quality of life.

November 15, 2018 is America Recycles Day (ARD), a program of Keep America Beautiful. ARD is a nationally recognized day dedicated to promoting and celebrating recycling in the United States. Every year on or around November 15, communities are encouraged to come together to clean up and recycle materials that can be salvaged.

The Texas Rural Water Foundation’s Salvage Your Scrap campaign was created to encourage our members to recycle and to clean up their scrap.

Through generous donations from our member systems, some have donated some or all the money they receive from recycling to benefit the TRWF’s Veteran Employment Program (VEP). This program matches veteran candidates with positions at rural water and wastewater systems and provides assistance in the training and exam process for operators. For more information about the VEP, please call 512-472-8591.

How can you help to make a difference with recycling in your community, while at the same time, raising money for your office petty cash (or to donate to the VEP)?

Like many others around the globe who have taken the pledge to recycle, TRWF challenges you and your company to start preparing for Salvage Your Scrap 2018! The system who donates the most at the end of the year will win a feature article in the spring issue of Quench.

The deadline to submit your Salvage Your Scrap donation is December 31, 2018. For more information about this program, please visit www.texasrwf.org or call 512-472-8591.

Here are some suggestions to get you started with your own Salvage Your Scrap campaign: 20

Quench — July / August 2018

Reach out to your members/customers to bring their unwanted and unused scrap metal to your site, but be prepared for the response, so you know where to store it all.

Contact and partner with local businesses, hospitals, automotive shops, community leaders and surrounding school districts, and encourage them to collect as much scrap material as they can, so you can recycle it for them at your local recycling company. Not only are you helping them to get things cleaned up and developing public and community relations, but you get to keep the check, too!

South Rains Special Utility District was our 2017 winner. They donated $1,281.35, thanks to their Salvage Your Scrap leader and General Manager, Rachel Webb.

By visiting www.AmericaRecyclesDay.org, you can register and host an event in your area. Once registered, your event will show up on the interactive ARD event map online. There are also toolkits available to help promote and campaign your event to your local communities.

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Why a Maintenance Reserve Plan is Important for Your System

A

By Paul King, Circuit Rider, Texas Rural Water Association

maintenance reserve account will help you maintain a level of service your customers desire. Water systems that maintain their assets are much more likely to provide safe and reliable drinking water for their customers. This account also makes you look at the best approach and lowest cost for rehabilitating, repairing or replacing assets. Challenges that face water systems include determining the optimal time to rehabilitate, repair or replace aging assets; increasing demand for service; resistance to rate increases; diminishing resources; customer service expectations; increasing regulation; responding to emergencies because of asset failure; and protecting assets.

Benefits of a maintenance reserve plan include: • • • •

•

prolonging the life of your assets with an effective operation and maintenance plan meeting customers’ demands by sustaining your system justifying rate increases with operational and financial planning budgeting focused on critical asset and sustaining performance, meeting service expectations and increasing regulatory requirements helping to anticipate and respond to emergencies

You might ask, how do we set one up? The first step is to know your assets and their current state of repair or disrepair in some cases. Unless your system is brand new, some information might be difficult to find; however, it is an important part of justifying your plan. As a last resort, you can estimate the life of your assets, but over time, as you rehabilitate, repair or replace these assets, your inventory list will become more and more accurate and justifiable. Preparing an asset inventory and system map is easy if you ask and answer these five questions: • • • 22

What do I own?

Where is it?

What is its condition?

Quench — July / August 2018

• •

What is its useful life?

What’s it value?

After compiling your list, you should rate the assets you have. It could be something as easy as a 1 to 5 scale – 1 meaning it has many years left in its life cycle and 5 meaning we better replace that before summer gets here. The next thing you should do is determine your assets’ value and replacement cost, because it is important to use replacement cost not original cost of assets.

Next, you should look at your required and sustainable level of service. This will help you implement your plan and communicate to your customers what you are doing. Quality, quantity, reliability and TCEQ requirements are elements that can define level of service and system performance goals. You can also use the information from your maintenance reserve account to help explain costs associated with your water system. You should analyze current trends and try to anticipate customer demand and satisfaction with your system. You can do this by asking yourself these questions: “What level of service do my customers demand? What does TCEQ require? What is my system’s actual performance? What are the physical capabilities of my system?”

When communicating to the public about service goals that describe your system’s performance targets, letting them know about new regulatory requirements can go a long way in making rate increases more palatable for your customers.

By using level of service standards to track your system’s performance, you will also help your system maintain good customer relations over time.

Knowing which assets are critical to maintain is a must for sustaining performance. We all know assets fail; how we maintain them and plan for their failure is vital in a good maintenance reserve plan. Not all assets are equal when it comes to maintaining performance and operational standards.

For example, if you have only one well, it is critical to maintaining performance. On the other hand, if you have three high service pumps and one fails,

Minimizing life cycle cost and optimizing personnel can save a system a lot of money.

Line # Asset Category Original Cost Current Cost Service Annual Operation and maintenance (source of supply, Life Maintenance (O&M), personnel, plants & facilities) (Years) Reserve maintenance reserve and the capital improvement budget 1 Wells 75,000.00 250,000.00 30 8,333.33 accounts for about 85 percent 2 Supply Mains 1340,000.00 3,760,000.00 60 62,666.67 of the typical water system’s Pumping Plant budget. A maintenance reserve 3 Structures and 1,430,000.00 6,490,000.00 30 216,333.33 plan enables a system to Improvements determine the lowest cost 4 Pump 2,080,000.00 3,050,000.00 25 122,000.00 options for providing the Water Treatment Plant highest level of service.

5 Structures and 550,000.00 2,100,000.00 30 70,000.00 This helps you optimize the Improvements work O&M crews do, where 6 Filtration Media 250,000.00 260,000.00 30 8,666.67 they are doing it and why.

Transmission and Maintenance reserve programs Distribution Plant help you make risk-based decisions by choosing the 7 Tanks 950,000.00 1,770,000.00 50 35,400.00 right project, at the right time, 8 Distribution Mains 12,070,000.00 35,000,000.00 60 583,333.33 for the right reasons. Moving 9 Services 6,990,000.00 9,000,000.00 30 300,000.00 from reactive maintenance to 10 Meters 2,850,000.00 4,580,000.00 20 229,000.00 predictive maintenance can 11 Hydrants 19,900.00 35,000.00 45 777.78 be achieved by asking: What General Plant alternative strategies exist for managing O&M, personnel, 12 Computer Equipment 2,000.00 3,500.00 4 875.00 maintenance reserves and 13 Trucks 35,000.00 55,000.00 10 5,500.00 capital improvement budget 14 Tools 500.00 800.00 20 40.00 accounts? What strategies 15 Generators 35,000.00 43,000.00 5 2,866.67 are the most feasible for my 16 Communication 1,200.00 2,300.00 10 1,400.00 organization? What are the Equipment costs of rehabilitation, repair and replacement for critical 17 SCADA Equipment 10,000.00 14,000.00 10 1,400.00 assets? Know the cost and 18 Totals 28,688,600.00 66,413,600.00 1,647,422.78 benefits of rehabilitation versus replacement. For example, let’s say you have a 1980 motor that is 75 percent it is not as critical as your well because you have efficient and you have had it rewound twice—the two more pumps. Critical assets are those assets motor depreciates in efficiency each time you have you decide have a high risk of failing due to age, it rewound, and it costs you money and electricity. condition and major consequences if they do fail.

You may want to look at the cost of a 2018 motor You must decide how critical each asset is and that can be up to 98 percent efficient, and figure in rank them accordingly. To do this, consider the your electrical savings. Look at life cycle costs on following questions: How can the asset fail? How all critical assets and spend your money based on often does the asset fail? What is the probability and asset conditions. consequence of this asset’s failure? What does it cost to repair the asset? What are the other costs, Lastly, how will you pay for your maintenance such as social or environmental, that are associated reserve plan? Developing a long-term funding with asset failure? After that, determine the strategy is critical to the implementation of a probability of each asset’s failure and list them by maintenance reserve plan and knowing the full failure type. Analyze failure risk and consequences cost of revenues generated by your water system and update your vulnerability assessment and Continued on page 24 emergency response plan regularly.

Example Maintenance Reserve Accounts

Quench — July / August 2018 23

Continued from page 23

will help you determine your system’s financial forecast. Your system’s financial forecast can then help you decide what changes need to be made to your system’s long-term funding strategy. Revising your rate structure may be necessary, depending on how you answer the following questions: Does your system have enough money to maintain your asset for the required level of service? Is your rate structure sustainable for your system’s long-term needs? You can also think about funding your maintenance reserve plan from current revenues or financing asset rehabilitation, repair and replacement through borrowing or other financial assistance; however, I would only suggest this if you have a lot of critical assets at the end of their life cycle.

Remember, maintenance reserve accounts are not built in a day—they slowly grow over time. It is up to you to make sure you have enough in reserve when you need it.

If you have any questions about this article, please contact TRWA Circuit Rider Paul King at paul.king@trwa.org.

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Quench — July / August 2018

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System Hosts First District Meeting as Part of TRWA's Emerging Leaders Program

By Jaleesa Auzenne, TRWA Emerging Leaders Program Graduate

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his article is about a small municipal utility district located in Barrett Station, Texas that hosted its first TRWA District 10 meeting.

On October 25, 2017, Harris County Municipal Utility District No. 50 brought together representatives from local county agencies and members and non-members of TRWA to increase awareness of community concerns and develop community engagement. As a member of TRWA’s Emerging Leaders Program inaugural class, I took on the planning and organization of the meeting as my individual project required for graduation.

As many of us remember, Hurricane Harvey devastated many parts of eastern Texas that fall within the parameters of TRWA District 10. In wake of this catastrophic storm, the needs of HCMUD 50’s system and community became a motivating factor to promote building relationships with local elected officials, agencies and other systems in the form of the District 10 meeting.

Providing relevant information that all systems could benefit from was most important. The District 10 meeting highlighted safe and reliable alternative water supply and provided a panel discussion about emergency response and management.

Mr. Rick Moffatt, General Manager of Southern Montgomery County MUD, was the keynote speaker and shared viable approaches to reclaimed water.

He discussed why systems should use alternative water supply, the benefits of implementing an alternative water supply program, and much more.

Attendees at the District 10 meeting listen to a panel discussion about emergency response and management.

Harris County MUD No. 50 staff pose with TRWA District 10 Board Director Kent Watson during their first District 10 meeting as part of the Emerging Leaders Program.

Mr. Moffatt’s presentation was followed by an indepth panel discussion about emergency response and management. Members of the panel were representatives from Harris County Engineering Department, Harris County Attorney’s Office, and TRWA Technical Assistance Director Larry Bell.

Attendees were able to engage with the panel and ask questions relevant to their systems and communities. The panel provided insight and expertise on how to prepare for future disasters, as well as services that each respective organization offers to water and wastewater utilities.

By bringing together local agencies and regional water and wastewater systems to share ideas and concerns, the District meeting promoted progress and development in the communities the systems serve. However, it is not an easy task to coordinate so many people from different backgrounds with different priorities together for an event. In fact, my excitement may have shaded me from the realities of undertaking the task to plan a District meeting.

Yet, with the community supporting me, the District 10 meeting was a success.

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For example, it is a daunting thought for a MUD to take on an expense that was not budgeted, especially after unexpected expenses resulting from Hurricane Harvey. One thing I have learned as a member of the TRWA Emerging Leaders Program is to explore all resources, including seeking outside help for sponsorships. HCMUD was fortunate to receive a total of $2,500 in sponsorship funds from District consultants and TRWA. In appreciation to our sponsors, display tables were available for each sponsor’s use. Attendees were able to stop by and speak with the sponsors while even getting a few goodies.

Our sponsors are not the only participants to help make the District 10 meeting hosted by HCMUD 50 a success. The HCMUD 50 Board of Directors and staff all contributed in various ways. No one learns about a successful event without receiving some sort of invitation, and the Board of Directors made it a priority to reach out to neighboring systems who were not members of TRWA. A goal for the District 10 meeting was to increase awareness of the support and services offered by TRWA to water and wastewater utilities in the surrounding area.

All things considered, coordinating the District 10 meeting was the perfect vessel to synthesize what I learned from the TRWA Emerging Leaders Program with real world experience. Like Douglas Adams said, “to give real service, you must add something which cannot be bought or measured with money, and that is sincerity and integrity.”

Continuing to host and attend TRWA District meetings helps to build a network between local elected officials, county agencies, and other water and wastewater systems. Building these networks gives a voice to our systems and helps us better serve our customers. HCMUD 50 looks forward to attending and hosting District 10 meetings in the future and we hope to see you all there too.

TRWA will begin accepting applications for the 2019-20 Emerging Leaders Program class this winter. If you have any questions about this program or would like to be placed on the interest list, please contact leadership@trwa.org.

Code Updates In-Service Cleaning NEW TANKS — Rick DiZinno (270) 826-9000 ext. 2601

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EXISTING TANKS — Patrick Heltsley (270) 826-9000 ext. 4601

Recognize Excellence through TRWA's Awards Program

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By Allison Kaminsky, Deputy Executive Director, Texas Rural Water Association

on’t miss the opportunity to nominate your system or one of your colleagues for our TRWA Awards of Excellence! Every year, rural water systems across Texas submit nominations for these prestigious awards honoring those who exemplify excellence, dedication and achievement.

Our individual awards were created to recognize the shining stars of our member utilities, seeking to honor their spirit and commitment in support of their system and the larger community. Individual awards are given in the following categories.

The Excellence in System Management award recognizes any manager of a member utility who exemplifies exceptional leadership and oversight skills. This includes general managers, superintendents, assistant general managers, system managers, plant managers, etc. We want to hear about what makes these leaders so important to you!

The Excellence in Administration award is meant for any and all office personnel whose support and dedication keep their utility’s office administration running smoothly on a day-to-day basis. This includes office managers, administrative assistants, bookkeepers, accounting clerks, customer service representatives, secretaries, receptionists, etc. Take this opportunity to appreciate someone who makes your life easier.

The Excellence in Operations award is designed to recognize any personnel who are instrumental in the technical operations of your utility, and go above and beyond the call of duty in their work. This could include any operator, instrument or maintenance technician, field manager, utility service worker, etc., whose expertise and hard work are an invaluable asset to your system. Don’t miss your chance to recognize your employee or coworker for working tirelessly to keep your system operations running smoothly.

This year, we will also give out two system-wide awards in the category of Excellence in Grassroots Engagement—one for systems serving 1,500 or fewer connections and another for those serving

more than 1,500 connections. This award is designed to applaud utilities that have successfully launched a grassroots campaign or activity in their community to foster political participation, raise awareness, garner support for an issue, raise money, and/or build brand recognition.

Use this opportunity to showcase your hard work and share your ideas with your industry peers who can learn from your successes. To nominate your system, fill out our Awards of Excellence nomination form and tell us in 1000 words or less the details of your activity or campaign. Consider the following: • • • • • •

What goals were you trying to achieve?

How did you get started?

How was your campaign or activity implemented?

What resources did you need?

What made your approach unique?

What has been the impact of your efforts?

Only TRWA member systems are eligible, but anyone can nominate your system for this award!

Do you already have a person or a campaign in mind while reading this article? Good! Get started on your nomination now and submit it online at www. trwa.org. Please remember that eligibility is limited to TRWA members and their employees and that former award winners are not eligible. All entries must be postmarked or delivered by February 1, 2019 to be considered.

All award winners will be honored during the Awards Ceremony at RuralWaterCon in March and will be featured in the spring issue of this magazine.

Individual winners will each receive a $500 prize and a commemorative plaque. The system-wide winners will each receive a $1000 prize and commemorative plaques.

If you have any questions about the nomination form or the awards process, or if you are interested in sponsoring one of the awards, please contact the TRWA Communications Department at (512) 4728591 or editor@trwa.org.

Quench — July / August 2018 27

TRWA Briefs

our pre-conference events at www.trwa.org. We hope to see you there!

National Rural Water Conference Comes to Texas

Save the Date for Our Fall Conferences

his year’s National Rural Water Association WaterPro Conference will be held in Fort Worth, Texas on September 17-19, 2018! We encourage you to join us as we support our national affiliate while benefitting from essential training sessions and invaluable networking opportunities.

egistration is now open for our Fall Management Conferences and our Water Districts Conference, to take place in South Padre Island and in Frisco/Dallas this fall.

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On Sunday, September 16, TRWA will be hosting two pre-conference events. First, we will be holding a four-person scramble at the Golf Club at Fossil Creek. The scramble will kick-off with a shotgun start at 8:30 a.m. and players will enjoy door prizes and closest to the pin and longest drive contests.

Bring cash to participate in tournament contests and to purchase mulligans and beverages. Winners will be announced, and prizes will be awarded at the end of the event.

If golfing isn’t your sport, join us in the afternoon at the Alpine Shooting Range for a Sporting Clays Tournament. Starting at 2:00 p.m., teams of up to four shooters will get to show off their skills on a variety of shooting clays courses. Points will be tallied, and winning teams will be announced at the end of the event. Shuttles will be available to take participants to and from the host hotel, which is the Omni Fort Worth Hotel. So get a team together and come out for some friendly competition amongst your state and national peers at one of our preconference events.

The WaterPro Conference officially begins the morning of September 17. Educational sessions will offer attendees 30 hours of continued education focused on water and wastewater systems.

Courses will focus on technology innovations, utility management, energy and environment, security, financial sustainability, board leadership, and more!

When you’re not in class, visit the exhibit hall, which will host more than 130 industry vendors that provide technological advancements and system support. Attendees can take advantage of many opportunities to network with system experts in a variety of fields and make connections with federal officials, funding agencies and other system staff.

More information, including the full agenda and registration, is available now at www.

WaterProConference.org. You can also register for 28

Quench — July / August 2018

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On October 3-4, we will be hosting both our Fall Management Conference and our Districts Conference concurrently at the South Padre Island Hilton Garden Inn. Attendees who register for one of these two events have the added benefit of choosing from classes from either one of the conference educational programs. Fall Management topics range from open meetings act training and policies every system should have in place to emergency preparedness and water loss auditor training. Districts Conference topics will include the different authorities of the TCEQ and the PUC, securing future water supply, and public outreach and public relations. Both conferences will include a 2019 legislative preview, regulatory updates, and hiring and firing best practices.

If you can't make it down to South Padre Island, we will be holding the Fall Management Conference again in the Dallas/Frisco area on November 7-8 at the Embassy Suites.

For full agendas, visit our website at www.trwa. org and check under the "Conferences" tab. We are applying for operator certification credit for courses at all three conferences, and we are also applying for continuing legal education credit for the Fall Management Conferences.

If you have any questions about any of these events, please don't hesitate to call us at 512-4728591 or email meetings@trwa.org.

Pass the Hat for PAC this Fall

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RWA is challenging your system to "Pass the Hat for PAC" in support of Rural Water at your monthly board meetings during the months of August, September and October. The Texas Rural Water Political Action Committee (PAC) is composed of hundreds of individuals like you who want to make a difference by giving to a fund that helps candidates and public officials who support rural water and are effective leaders.

During the fundraising campaign, we are asking the general managers and/or board members of TRWA member systems to request small donations (less than $10) from the board and management level staff at their fall board meetings. To comply with the Open Meetings Act, be sure to include the PAC fundraiser on the agenda for the meeting so your board members may discuss it and take up the collection.

The system manager or board member who collects the funds can then send in a personal check for the total amount collected, made payable to the Texas Rural Water PAC, accompanied by a completed PAC Remittance Form, which can be found on our website under the "Legislative" tab.

We will be tracking the contributions made between September 1 – October 31 for a friendly competition between districts and systems. In the November/December issue of Quench, we will announce the winning TRWA District and the winning system. The highest collective contributor's system will also win a special prize. Last year's winners were District 6 for overall participation, and North Alamo WSC for raising $430 to support our cause.

Help us reach our 2018 fundraising goal of $50,000 in 2018! If each of TRWA's 750 member systems raises just $50 during this initiative, we will collectively raise $37,500. Every dollar counts, and through our collective contributions, we can help keep effective leaders in office.

If you would like to learn more about the PAC, please visit www.trwa.org and click on the "Legislative" tab on our menu to read about the PAC, see how much we've raised so far and even make an online donation!

Call for Presentation Proposals

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e are currently accepting presentation proposals for the 2019 TRWA Conference schedule! If you have an idea for an educational session and would like the opportunity to present at one of our 2019 conferences, let us know!

Presentations should seek to address current issues utilities are facing, as well as day-to-day operations. Presentations that market specific products, vendors and services will not be accepted.

Organizations may submit a maximum of three presentation proposals.

TRWA encourages broad participation; however, time limitations make it impossible to accept all the proposals submitted. Proposals will be reviewed by the TRWA Conference Planning Committee based on a number of factors. Major factors in the selection process include clarity, appropriateness for the intended audience, relevance to the industry, and industry trends and research. The Planning Committee also tries to achieve a balance of topics and interests including those requested by attendees in conference evaluations. Please note that we may request an alternative approach. For example, you may be asked to form a panel with other presenters speaking on a similar topic or be a part of a roundtable discussion.

The deadline for submitting a presentation proposal is Monday, September 17, 2018. To submit, visit our website at www.trwa.org and click on the "Conferences" tab on the main menu. You can also send proposals to Celia.Eaves@trwa.org.

TRWA to Offer New Sales Tax Exemption Certification Service Contrary to popular belief, water supply corporations (WSCs) are not fully exempt from paying sales taxes; they can, however, obtain a certification from TCEQ that entitles them to sales tax exemptions on qualified purchases. More than 400 WSCs across the state currently lack this certification and are either paying sales taxes unnecessarily or could owe substantial amounts in back taxes in the event of an audit.

The TRWA Legal Department now offers a sales tax exemption certification service for systems that have not been certified by TCEQ as a regional water/ wastewater provider. This one-time certification process will prevent your system from paying taxes on a wide-range of qualified purchases and expenses over the life of your system. Please note that the TCEQ determines whether a system qualifies as a regional provider, and not all WSCs will qualify.

The cost for this service is $375 for TRWA members or $575 for non-members. For more information about this new member benefit, please visit the TRWA website at www.trwa.org and click on the "Legal" tab or contact the Legal Department at 512-472-8591.

Quench — July / August 2018 29

Rural Water Crossword Rural Water Crossword 1 2 3 4

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Across 2 Interna onal sports organiza on hos ng the World Cup 4 Salvage Your ___: Collect your spare metal and recycle it! Funds go to the Texas Rural Water Founda on 6 Water source that is open to the air 8 Bird of prey 10 Lasagna-loving cartoon cat 11 Astrological constella on also called "the hunter" in Greek mythology 15 Situa on occurring when water contains something other than water 18 Chemical element also known as Cl2 19 ____ Falls: three waterfalls on the USA/ Canada border where more than six million cubic feet of water flows every minute 30

Quench — July / August 2018

Down 1 Largemouth ___: Texas freshwater fish 3 Regulatory agency that ensures the safety of public drinking water 5 Dog with short legs origina ng in Wales 6 A small, narrow river 7 Only naturally formed lake in Texas 9 Largest county in Texas 12 Unwanted flow of water in the reverse direc on 13 Water source that is present below the Earth's surface 14 Right to cross or otherwise use someone else's land for a specified purpose 16 Au ____: Goodbye, in French 17 Regulatory agency that oversees water and sewer u lity regula on

Plan Ahead CONFERENCES:

September 17-19, 2018

National Rural Water Association's WaterPro Conference, Fort Worth Convention Center

October 3-4, 2018

Fall Management and Districts Conferences, Hilton Garden Inn South Padre Island

November 7-8, 2018

Fall Management Conference, Embassy Suites Dallas-Frisco

OPERATOR TRAINING COURSES: Water Credit Courses

Basic Water Works Operations: Argyle, September 25-27 Water Laboratory: Coldspring, August 28-30  Harlingen, October 23-25  Gonzales, November 6-8 Water Distribution: San Antonio, August 28-30 Groundwater Production: Lorena, August 21-23  San Antonio, September 11-13

Water and Wastewater Credit Courses

Chlorinator Systems and Chemical Handling: Customer Service Inspections: Hallsville, September 11-12  Harlingen, October 9-10  Bastrop, October 16-17  Lorena, November 6-7 Pump and Motor Maintenance: San Antonio, November 6-8 Utility Safety: Harlingen, September 11-13  Atascosa, September 18-20  San Antonio, October 2-4 Utility Calculations: San Antonio, October 9-11 Utility Management: Gonzales, August 28-30  San Antonio, October 23-25 Valve and Hydrant Maintenance: Brownwood, September 18-20  San Antonio, October 16-18

Wastewater Credit Courses

Basic Wastewater: San Antonio, September 25-27 Wastewater Collections: San Antonio, September 18-20 Wastewater Technology: San Antonio, August 20-24 Wastewater Treatment: Tom Bean, October 2-4

Public Funds Information Act Training

Initial and Renewal: South Padre Island, October 2 Initial and Renewal: Dallas/Frisco, November 6

Advertiser Index

AIA Insurance Agency........................................... Page 6 Allied Tank Service........................................................24 American Flow Control................................................. 11 Childress Engineers......................................................24 Chlorinators Incorporated............................................13 CoBank...........................................................................16 Daniel & Brown, Inc.........................................................7 DN Tanks..........................................................................7 HRM Land Acquisition Solutions.................................24 J.F. Fontaine & Associates...........................................18 KSA Engineers...............................................................10 Live Oak Bank................................................................ 11 Maguire Iron...................................................................24 Pittsburg Tank & Tower Maintenance Co., Inc............26 Preload, LLC..................................................................21 Russell Drilling Co., Inc................................................24 Schaumburg & Polk, Inc...............................................21 Smith Pump Co., Inc......................................................20 Tank Connection............................................................26 Texas Aquastore............................................................10 USA Bluebook................................................ Back Cover Quench — July / August 2018 31

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