Safe Water From Every Tap Improving Water Service to Small Communities (1997) / Chapter Skim
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5: Ensuring Small Water Supply System Sustainability
5: Ensuring Small Water Supply System Sustainability
Pages 153-186
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From page 153... ...
Rather than focusing solely on how to comply with the latest regulations, water systems and regulators need to assess the sustainability of these systems -- that is, their long-term ability to provide adequate water service while adapting to new regulations and customer demands. This chapter discusses processes for evaluating the sustainability of small water systems.
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From page 154... ...
System Capacity and Capabilities Small systems today face severe challenges, including rapidly increasing regulation, declining water quality and quantity, legal liability for failing to meet the SDWA or other purveyor responsibilities, financial distress, and customer resistance. A system's ability to deal with these challenges depends to a great degree on its managerial, technical, and financial capabilities.
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From page 155... ...
Policymakers need to develop innovative water resource allocation solutions to promote sustainable water service -- and small systems must share the responsibility of balancing competing water resource allocation needs. Community or other political resistance to change is another challenge frequently facing systems trying to address supply or treatment problems.
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From page 156... ...
Recognizing that a financial incentive may be required to get agreement at the local level, Washington State provides grant monies in a "matching" format to pro mote comprehensive assessment or planning efforts. Washington has also devel oped a financial viability test that new systems must pass before being allowed to be formed.
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From page 157... ...
Hydraulic analysis supplement with other plans and 3. Water quality and policies conformance with standards J
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From page 158... ...
PUBLIC HEALTH PERFORMANCE APPRAISALS Whatever a state sees as its regulatory role, its central motivation should be to protect public health and ensure reliable water service at a reasonable cost. This requires evaluating the performance of small water systems in a structured and objective manner.
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From page 159... ...
should award state revolving fund (SRF) monies for drinking water systems only to states with structured programs for conducting public health performance appraisals of water systems regulated by the SDWA.
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From page 160... ...
Elements of a Public Health Performance Appraisal The public health performance appraisal process (or licensing or permit criteria process) should require documentation and evaluation of several key
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From page 161... ...
For that reason, it is worth examining what these plans involve and the role they play in performance appraisals. Small Water System Plans Every water utility should create a comprehensive plan that specifies how the utility will affordably meet present and future demands while complying with SDWA and other regulations.
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From page 162... ...
Regardless of the format used for the water system plan, the plan should include the following elements: • Evaluation of existing system characteristics: A water system plan should include a description and inventory of system facilities and their general condition, as well as an analysis of their capability to supply sufficient water quality and quantity to meet existing and projected demands. The analysis should include an evaluation of raw and treated water quality for each source and the distribution system and of the condition, capacity, and reliability of the source of supply, storage facilities, and system piping.
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From page 163... ...
C Water quality and conformance with standards D
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From page 164... ...
This is one of the most critical parts of the plan and as such warrants detailed description. Financial Viability Evaluations A financial viability evaluation seeks to measure a system's "ability to obtain sufficient funds to develop, construct, operate, maintain and manage a public water system on a continuing basis in full compliance with federal, state, and local requirements." (WADOH, 1994)
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From page 165... ...
If the system lacks sufficient revenue to meet expenses, it should either raise its water rates or reduce nonessential expenses. • Test 2: Is there an adequate operating cash reserve?
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From page 166... ...
OTHER NONPROLIFERATION TOOLS Public health performance appraisals are just one tool that states can use to curb the proliferation of small water systems. The various tests used in performance appraisals can be used separately, and in a variety of ways, in nonproliferation policies.
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From page 167... ...
For a number of reasons, it is difficult to say at this point how well various nonproliferation efforts are working. However, the number of drinking water systems in this country has grown dramatically, suggesting that proliferation of nonsustainable systems is likely to be a continuing problem, increasing the need for mandatory public health performance appraisals.
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From page 168... ...
In July 1996, Congress established a federally backed SRF program specifically for improving drinking water systems.
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From page 169... ...
A brief explanation of each type of relationship and some relevant policy and procedural issues typically evaluated by the restructuring agent before assuming an assistance role are outlined below. Direct Ownership Direct ownership transfers responsibility for ownership and operation from the utility in distress to a restructuring agent.
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From page 170... ...
682-1611 Water Resources Cost-Share Revolving Fund Cooperative agreement (501) 682-1611 Community Loan Fund Loans (501)
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From page 171... ...
233-8911 Kentucky Drinking Water Loan Fund (local government, fund B2) Loans (502)
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From page 172... ...
231-2621 Indian Health Service Grants (405) 945-6800 Oregon Water Development Loan Fund–Oregon Water Resources Department Loans (503)
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From page 173... ...
741-6636 Construction Grants Texas Community Loan Fund Loans (512) 458-7542 Utah Utah Drinking Water Board Loan Program Loans (801)
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From page 174... ...
334-1639 Conservation Commission Water Quality Research Grant Program Grants (206) 459-6141 Department of Ecology, State Revolving Fund State revolving fund (206)
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From page 175... ...
• Capital improvement, purchasing costs, and rate structures: Financing of local improvements and purchasing costs, if any, must either be spread throughout all of the new utility customers or assigned specifically to the residents of the restructured system. This may affect whether identical rates are used for all customers, or whether the restructured customers will pay a capital surcharge in their rates.
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From page 176... ...
For example, Washington State may place a failing water system under the responsibility of a county
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From page 177... ...
A contract service program enables a restructuring agent (such as another utility or a private contractor) to provide professional support to existing or new systems at
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From page 178... ...
Such responsibilities may include routine system operation and maintenance, periodic performance monitoring, required water quality monitoring, wholesale purchasing, equipment maintenance, scheduled repair activities, on-call emergency assistance, utility billing services, or other tasks. Some of the major contract considerations in providing this type of service are as follows: • System improvements: If improvements are needed to enhance reliability, safety, or water quality, then the restructuring agent must determine whether they are to be completed or scheduled for completion before providing service.
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From page 179... ...
Restructuring Agents Any number of organizations or private or public utilities may serve as restructuring agents. Most fall into one of four categories: (1)
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From page 180... ...
The task force's final report, Community Involvement Opportunities in Water–Wastewater Services, outlines different activities a rural electric system might be able to assume and an overview of the various issues involved in working with rural water and wastewater systems. Regional Water Authorities Regional water authorities may be composed of a consortium of several water purveyors or a single municipal or county government with territorial responsibilities.
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From page 181... ...
In most cases, state public utility commissions regulate investor-owned utilities, so their level of service, pricing structure, and accounting and recordkeeping practices are closely scrutinized and regulated. Nonetheless, the economies of scale and the entrepreneurial expertise of investor-owned utilities make them effective candidates for small system assistance.
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From page 182... ...
For instance, an expectation that a utility immediately comply with water quality standards with a subpar system might discourage them from purchasing it. • Politics: Local political issues, including voter resistance to water system ownership changes and budget conflicts, may discourage some potential restructuring agents from active involvement in restructuring if such issues lead the restructuring agent to fear political resistance to its efforts.
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From page 183... ...
• State public utility commissions should allow adjustments to the rate base of utilities to reflect the cost of acquiring a failing system. • State public utility commissions should allow restructuring agents to depreciate systems for which they have assumed responsibility.
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From page 184... ...
In other words, people don't fear change -- they fear loss." Good communication skills can help a debate focus less on what is being lost than what is being gained. The appropriate strategy and tactics to minimize this fear of loss and develop a viable solution depend on the missions and characteristics of the restructuring agent and the small system being assisted.
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From page 185... ...
• The federal government should provide state revolving fund monies and rural utility service grants and loans for drinking water systems only to states with official public health performance appraisal programs. This will ensure that federal funds are not used to prop up unsustainable water systems.
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From page 186... ...
Washington, D.C.: National Rural Electric Cooperative Association. Wade Miller Associates.
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