Wastewater Utility ManagementWastewater Utility Management

Guidance Briefing Guidance Briefing for Elected Officialsfor Elected Officials

Prepared by the Inter-Agency Technical Assistance Committee on Wastewater Systems

in Maryland

AgenciesAgencies

• Maryland Department of the EnvironmentMaryland Department of the Environment

• Maryland Department of Housing and Maryland Department of Housing and Community DevelopmentCommunity Development

• Maryland Department of PlanningMaryland Department of Planning

• United States Department of Agriculture, United States Department of Agriculture, Rural DevelopmentRural Development

IntroductionIntroduction• Local officials are responsible for the Local officials are responsible for the

success or failure of their community’s success or failure of their community’s wastewater system.wastewater system.

• Their responsibilities include Their responsibilities include management, financial and legal management, financial and legal obligations.obligations.

IntroductionIntroduction

• This presentation is an outline of those This presentation is an outline of those responsibilitiesresponsibilities

• The agencies involved strongly The agencies involved strongly encourage all local officials to seek encourage all local officials to seek detailed training on these and related detailed training on these and related topicstopics

ContentsContents

1.1. Legal and Compliance IssuesLegal and Compliance Issues2.2. Liability IssuesLiability Issues3.3. OperationalOperational4.4. Financial ManagementFinancial Management5.5. Long-range PlanningLong-range Planning6.6. Asset ManagementAsset Management7.7. Emergency Response PlanningEmergency Response Planning8.8. Public RelationsPublic Relations9.9. SummarySummary10.10. ContactsContacts

Legal and Compliance IssuesLegal and Compliance Issues

Be familiar with all applicable laws and regulations:Be familiar with all applicable laws and regulations:

• Clean Water ActClean Water Act• NPDES – permit requirements

• Emergency Planning and Emergency Planning and Community Right to Know Act (EPCRA)Community Right to Know Act (EPCRA)• Emergency Response Planning• Releases of hazardous substances

Legal and Compliance IssuesLegal and Compliance Issues

• Employment LawsEmployment Laws• OSHA/MOSH regulations • Family Leave • Equal Opportunity, etc.• Americans with Disabilities Act

• County Water and Sewer County Water and Sewer comprehensive plan and regulationscomprehensive plan and regulations

Liability IssuesLiability Issues

• An official who fails to take steps to have a An official who fails to take steps to have a basic understanding of the activities basic understanding of the activities

CAN be liableCAN be liable for damages resulting from for damages resulting from ignorance or passive negligence.ignorance or passive negligence.

• Anyone with authority over the utility system Anyone with authority over the utility system maymay be subject to liability claims even if not be subject to liability claims even if not the “owner”the “owner”

Liability IssuesLiability Issues

• Liability issues may relate to:Liability issues may relate to:

• Failure to comply with federal, state, and local laws that address workplace issues

• Risk Management• Disasters and emergency preparedness• Negligence

• Liability claims can result in the assessment Liability claims can result in the assessment of fines and/or punitive damagesof fines and/or punitive damages

Know what is happening; consult plant operatorsKnow what is happening; consult plant operators

OperationsOperations

• Basic knowledge of the operationsBasic knowledge of the operations• Wastewater collection and treatment

procedures

• Discharge requirements and limitations

OperationsOperations

• Record keeping requirementsRecord keeping requirements

• NPDES permit• Wastewater treatment volume reports• Discharge monitoring reports • Laboratory data• Maintenance records

OperationsOperations

Certification and TrainingCertification and Training

• Operator CertificationOperator Certification– Only certified staff may be employed

• To comply with regulations• Operate the facility safely and efficiently; and• For liability issues.

OperationsOperations

Certification and TrainingCertification and Training

• Officials must support continuing educationOfficials must support continuing education– Provides significant benefits

• Efficient O&M• Higher productivity

• Continuing Education RequirementsContinuing Education Requirements– Minimum CE hours required for license renewal

Financial Management and PlanningFinancial Management and Planning

• Business planningBusiness planning

• Capital and financial planningCapital and financial planning

• Financing capital improvementsFinancing capital improvements

• Record keeping requirementsRecord keeping requirements

• Rate SettingRate Setting

Financial Management and PlanningFinancial Management and Planning

Business PlanBusiness Plan

• Facilities plan

• Management and administration

• Operations and maintenance

• Financial

Financial Management and PlanningFinancial Management and Planning

Capital and Financial PlanningCapital and Financial Planning

• Short and long term Capital Short and long term Capital Improvement Program (CIP) plansImprovement Program (CIP) plans

• Identify types of Improvements Identify types of Improvements neededneeded• Major facilities• Extensions• Service installations• Capital equipment• Capitalized services

Financial Management and PlanningFinancial Management and Planning

Financing Capital ImprovementsFinancing Capital Improvements

• Capital recovery chargesCapital recovery charges– System development charges– Impact fees– Capacity charges

• State revolving loan fundsState revolving loan funds• Federal and state grantsFederal and state grants• Operating revenuesOperating revenues• Investment incomeInvestment income• Bond issuanceBond issuance

Financial Management and PlanningFinancial Management and Planning

Record Keeping and Source DocumentsRecord Keeping and Source DocumentsMaintain the “paper trail”Maintain the “paper trail”

• Canceled checks• Invoices• Billing statements• Receipts• Meter readings• Credit receipts• Purchase orders

Regulation-required records must be retained for system operational data in addition to financial record keeping

Financial Management and PlanningFinancial Management and Planning

Budgeting• Formulate Policy

• Plan Operations

• Track Financial Performance

• Report Financial Results

• Maintain/Sustain Services

Revenue Requirements• Projected Costs – Non-Rate Revenue = Rate Revenue Requirement

Financial Management and PlanningFinancial Management and Planning

Setting RatesSetting RatesGoals and objectives:Goals and objectives:

• Financial adequacy• Cost recovery• System sustainability• Legality• Fairness and equity• Impact on customers• Simplicity and ease of implementation• Water conservation philosophy and goals• Revenue and rate stability over time

Long-range PlanningLong-range Planning

• Analyze 10- to 20-year requirements

• Identify any service area expansions

• Identify major facilities required to serve both existing and new service areas

• Prepare and adopt a capital improvement and/or replacement program

• Adopt and provide a long-term plan to the county for inclusion in the county Water and Sewer plan

Asset ManagementAsset Management

““A combination of management, A combination of management, financial, economic, engineering, and financial, economic, engineering, and other practices applied to physical assets other practices applied to physical assets with the objective of providing the with the objective of providing the required level of service in the most cost-required level of service in the most cost-effective manner”effective manner”

Asset ManagementAsset Management

Core Asset Management IssuesCore Asset Management Issues::

• Asset Inventory and condition evaluationAsset Inventory and condition evaluation

• Setting goals for required level of serviceSetting goals for required level of service

• Identification of assets critical to sustained Identification of assets critical to sustained performanceperformance

Asset ManagementAsset Management

Core Asset Management IssuesCore Asset Management Issues::

• Strategies to minimize life cycle cost, plan Strategies to minimize life cycle cost, plan for capital replacement, operation and for capital replacement, operation and maintenancemaintenance

• Long-term financing strategy replacement Long-term financing strategy replacement and sustainabilityand sustainability

Asset Management BenefitsAsset Management Benefits

• Improved financial management and use of Improved financial management and use of resources resources – Better long range planning reduces overall

annual costs

• More efficient and focused O & MMore efficient and focused O & M– Predictive and preventive rather than reactive– Extends asset lifecycle

• Utility managed like a business making risk-Utility managed like a business making risk-based decisionsbased decisions

Asset Management BenefitsAsset Management Benefits

• Utility moves from Utility moves from crisis management to informed decision-making through data analyses

• ReducesReduces risk of system failure and service down time

• Provides Provides more consistent service levels over time

Emergency ResponseEmergency Response

• Emergency Planning and Community Emergency Planning and Community Right to Know Act (EPCRA)Right to Know Act (EPCRA)

• Bio-Terrorism Bill 0f 2002Bio-Terrorism Bill 0f 2002

Emergency ResponseEmergency Response

• New Safe Drinking Water Act Section New Safe Drinking Water Act Section 14331433– Vulnerability Assessments – Emergency Response Plans (ERP)

• Applicable State and Local LawsApplicable State and Local Laws

Public RelationsPublic Relations

Effective public education campaigns improve Effective public education campaigns improve conservation and appreciation for wastewater conservation and appreciation for wastewater staff and local officials.staff and local officials.

• Heighten awareness of the system’s role in the Heighten awareness of the system’s role in the community and what it takes to sustain that community and what it takes to sustain that systemsystem

Public RelationsPublic Relations• Are an opportunity to keep customers informed Are an opportunity to keep customers informed

about services, environmental protection, public about services, environmental protection, public health benefits and citizen responsibilitieshealth benefits and citizen responsibilities

• Highlight sound management and service Highlight sound management and service practicespractices

• Encourage public participation at meetingsEncourage public participation at meetings

• Can include open houses to show the public Can include open houses to show the public what occurs at the WWTPwhat occurs at the WWTP

SUMMARYSUMMARY

• Local Officials have a number of responsibilities for the operation of their wastewater system: – Legal – Financial– Managerial

• The best defense against liability is knowledge of these responsibilities and the system’s requirements

• Maryland Department of the Environmentwww.mde.state.md.us 410-537-3567

• Maryland Department of Housing and Community DevelopmentMaryland Department of Housing and Community Developmentwww.mdhousing.org 800-756 0119 ext. 7236

• Maryland Department of Planning

www.mdp.state.md.us 410-767-4500

• United States Department of Agriculture, Rural Developmentwww.usda.gov/rus/water/index.htm 302-857-3625

ContactsContacts

Wastewater Utility ManagementWastewater Utility Management

Guidance Briefing Guidance Briefing for Elected Officialsfor Elected Officials

Prepared by the Inter-Agency Technical Assistance Committee on Wastewater Systems

in Maryland