ALAN S. DILLON
NEW JERSEY
BUREAU OF SAFE DRINKING WATER
NEW JERSEY WATER ASSOCIATION
OCTOBER 21, 2015
CAPACITY DEVELOPMENT
LONG TERM VIABILITY
Capacity Development Program
Background
Technical Capacity:
Refers to the adequacy, operation and maintenance of the system’s infrastructure.
Infrastructure includes the source water, treatment, storage and distribution network of the water system.
Refers to the ability of qualified personnel with technical knowledge to operate and maintain the system.
Capacity Development Program
Background
Managerial Capacity:
Refers to the expertise required of the personnel who administer the overall system operations. Refers to the system’s demonstration of clear ownership, organized staffing, effective interaction with regulators, and effective interaction with customers
Capacity Development Program
Background
Financial Capacity:FF Refers to the monetary resources available to a water system to support the cost of operating, maintaining, and improving the water system. Refers to the demonstration of sufficient revenues, credit worthiness and fiscal management and controls.OPERATORS
Public
health
is
rapidly
expanding
both
in
scope
and
in
the
application
of
technical
methods.
The
necessity
for
training
was
an
important
reason
for
the
passage
of
laws
in
1918
requiring
licenses
for
persons
employed
as
superintendents
or
operators.
The
necessity
for
employing
trained
and
qualified
personnel
has
become
imperative.
Preface to the New Jersey State Department of Health’s Rules and Regulations on Licensing of Superintendents or Operators of Public Water Treatment Plants, Public Sewage Treatment Plants,and Public Water Supply Systems, published 1966.
NEW JERSEY REGULATIONS
CLASS 3 & 4 WATER SYSTEMS NEED
FT OPERATOR
FULL TIME OPERATOR – 7 HOURS PER
DAY, 5 DAYS PER WEEK, 35 HOURS PER
WEEK
EXCEPTION - FULLY AUTOMATED
SYSTEM
NEW JERSEY OPERATORS
2010
FACILITIES
T-3 33
T-4 36
OPERATORS
206
168
Looks like there’s enough after all…….. SO WHAT’S ALL THE FUSS ABOUT????
Is
there
really
an
operator
shortage
in
New
Jersey?
DISTRIBUTION
CLASS SYSTEMS LICENSEES W‐1 115 436 W‐2 190 586 W‐3 76 210 W‐4 26 176 TOTAL 407 1,408 TREATMENT
CLASS SYSTEMS LICENSEES T‐1 372 472 T‐2 156 618 T‐3 32 222 T‐4 38 174 TOTAL 598 1,486 Sept 2015 data
NEVER TRY TO
TEACH A PIG TO SING
IT’S A WASTE OF YOUR
TIME AND IT ANNOYS
THE PIG
BSDW
RESPONSE
IF WE CAN’T DEFEND A DECISION
BASED ON REGULATION, RATIONALITY
AND THE PROTECTION OF PUBLIC
HEALTH, WE SHOULDN’T HAVE MADE
IT IN THE FIRST PLACE.
RESOLUTION
CAPACITY DEVELOPMENT
CAPACITY DEVELOPMENT
PROTOCOL FOR NEW REQUESTS
DO T-3 & T-4 FACILITIES HAVE SUCCESSION
PLANNING IN PLACE ?
DO UTILITIES ALLOW APPROPRIATE
TRAINING FOR IN HOUSE STAFF TO ACHIEVE AND MAINTAIN CERTIFICATION ?
DO YOU PRACTICE FULLCOST PRICING?
CAPACITY DEVELOPMENT
PROTOCOL FOR NEW REQUESTS
DO YOU HAVE AN ASSET
MANAGEMENT PLAN??
WHY DO MUNICIPAL BUDGET
SHORTFALLS AFFECT WATER SYSTEM
OPERATIONS ??
69 systems surveyed, 68 responses
1) Operator’s Name, License held, Hours/week 2) Back‐up Operator’s Name, License held, Hours/week 3) List all licensed personnel and T license held
4) If you plan to have staff certified, indicate anticipated time to acquire each level of license
5) Do you plan to hire outside personnel?
BSDW
Succession
Planning
44
of
69
had
full
‐
time
LO,
full
‐
time
back
‐
up
LO
and
holding
appropriate
licenses
2
had
issues
with
primary
LO
coverage
14
had
issues
with
back
‐
up
LO
coverage
9
had
issues
with
both
Do
systems
in
NJ
have
adequate
coverage?
Working
cooperatively
with
systems
to
ensure
adequate
coverage
Since
the
survey,
some
issues
resolved:
primary
LO
coverage
– Was
2,
Now
zero
back
‐
up
LO
coverage
– Was
14,
Now
4
Both – Was
9,
Now
zero
GOOD
NEWS
OPERATOR CERTIFICATION
NJDEP PROVIDES FULL TUITION DISCOUNT
FOR INTRODUCTORY AND ADVANCED COURSES IF YOU ARE ELIGIBLE TO TAKE THE TEST.
NJDEP ALLOWS UNIVERSITY OF
CALIFORNIA-SACTO COURSE TO SUBSTITUTE FOR INTRO COURSES.
NJDEP PAYS FOR INITIAL LICENSING AND
TESTING FEES FOR VSWS OPERATORS.
OPERATOR CERTIFICATION
NJDEP PROVIDES 50% DISCOUNT FOR
OPERATORS WHO ATTEND RUTGERS UNIVERSITY OPERATOR TRAINING CENTER COURSES.
NJDEP PROVIDES FREE CONTINUING
EDUCATION THROUGH NEW JERSEY RURAL WATER.
NJDEP SUBSIDIZES NJAWWA CONTINUING
EDUCATION COURSES.
CAPACITY DEVELOPMENT
NJDEP HAS SUPPORTED THE CREATION OF
A NEW CIVIL SERVICE POSITION
REGARDING OPERATOR APPRENTICESHIPS.
NJDEP HAS PROPOSED A NEW OPERATOR
APPRENTICESHIP PROGRAM
IMPORTANT ASPECT OF THESE PROGRAMS
ARE THAT THEY ARE
PERFORMANCE/GOAL BASED.
Exam
Pass
Rates
T‐1 T‐2 T‐3 T‐4 ALL T # pass # exam % pass # pass # exam % pass # pass # exam % pass # pass # exam % pass % pass 2010 46 10344.7% 31 8735.6% 17 3745.9% 1 16 6.3% 39.1% 2011 63 12152.1% 46 11141.4% 17 3943.6% 8 2828.6% 44.8% 2012 52 11844.1% 38 9042.2% 10 2835.7% 5 1435.7% 42.0% 2013 49 11642.2% 39 8744.8% 13 4231.0% 3 1717.6% 39.7% 2014 58 10256.9% 39 6758.2% 18 5135.3% 12 2352.2% 52.3%
T
‐
1
T
‐
2
TOTAL
2010
46
31
77
2011
63
46
109
2012
52
38
90
2013
49
39
88
2014
58
39
97
New
Operators
What can I do to ensure my utility has adequately trained and certified staff to operate it?
YOU CAN PREPARE YOURSELF
Sustainability
Workforce
Planning
for
Water
Utilities
–
Successful
Recruiting,
Training,
and
Retaining
of
Operators
and
Engineers
2008 study co‐sponsored by AWWA Research Foundation and USEPA http://www.waterrf.org/PublicReportLibrary/91237.pdf
Resource
1) Marketing attractors to the industry and to your utility
Top attractors to young people (hiring)
Most effective retention strategies
2) Broadening the pool of candidates
Standard certification reciprocity agreements between States
Streamlining hiring policies (e.g., residency requirements)
Retirees, displaced workers, veterans
3) Developing standard training programs, apprenticeships
Relationships with educational institutions
Strategies
for
Recruitment
and
Retention
of
Utility
Personnel
1)
Gap
Analysis
Inflows
and
outflows
anticipated
next
5
years
2)
Workforce
Practices
Assessment
Compare
current
practices
vs.
most
effective
practices
How
to
Get
Started
1)
Does
your
system
currently
have
adequate
coverage?
2)
Do
you
have
a
succession
plan
for
your
system?
3)
If
your
operator
left
tomorrow,
how
easily
can
a
new
operator
take
on
the
job?
DUTIES AND RESPONSIBILITIES
WORK IN PROGRESS
DUTIES AND
RESPONSIBILITIES
T-1
Regularly check the system status of flows.
Adjust chemical feed rates, calculate dosage rates
and add chemicals as needed. Confirm chemical
strength, prepare chemicals, and measure
amount chemical used.
Minimum time required 2-5 hours weekly.
DUTIES AND
RESPONSIBILITIES
T-2
Backwash pressure filters as required.
Adjust chemical feed rates, calculate dosage rates
and add chemicals as needed. Confirm chemical
strength, prepare chemicals, and measure
amount chemical used.
Minimum time required 5-20 hours weekly.
DUTIES AND
RESPONSIBILITIES
T-3
Monitor additional groundwater unit operations
Operate simpler surface water treatment
facilities to with regard to turbidity reduction
and evaluation CT requirements.
Full time – 35 hour week
DUTIES AND
RESPONSIBILITIES
T-4
Monitor multiple additional sophisticated
groundwater unit operations
Operate largest and most sophisticated surface
water treatment facilities with regard to turbidity
reduction and CT evaluations.
Full time – 35 hour week
DUTIES AND
RESPONSIBILITIES
W-1
Monitor water system pressure and storage
facilities
Conduct valve exercise program
DUTIES AND
RESPONSIBILITIES
W-2
Same responsibilities as W-1
Estimated time requirement is 5 to 20 hours per
week
DUTIES AND
RESPONSIBILITIES
W-3
Same responsibilities as W-1 with additional
monitoring of differential pressure gradients,
booster stations and storage facilities
Estimated time requirement is 35 hours per
week
DUTIES AND
RESPONSIBILITIES
W-4
Same responsibilities as W-3
Estimated time requirement of 35 hours per
week.
O&M MANUAL
http://www.nj.gov/dep/watersupply/doc/ops_plan_temp.docO&M MANUAL
O&M MANUAL
O&M MANUAL
EPA’s Asset Management Tool
CUPSS
Check Up Program for Small Systems
What is CUPSS?
Check Up Program for Small Systems
• Designed for small and medium-sized drinking water and wastewater systems • Establishes and keeps track of goals and
milestones
• Saves time by storing all information in one place
• Track inventory, tasks, and finances • Develop a personalized Asset Management
Plan
Get CUPSS
• FREE download at: www.epa.gov/cupss/ At this site, you can also: • Register your copy of CUPSS • Find training events
Asset Inventory
• What assets do I have? • When was it installed? • How much did it cost?
• When was the last major repair?
• What maintenance will you perform on it this year?
• What is the typical routine maintenance and when is it performed?
• Do you have or know where to get replacement parts?
• Will you be financially prepared to replace a major component if it fails?
O&M Tasks
• What are routine tasks?
• How often are they performed? • Do you keep records of completing
these tasks? Where?
• How do you ensure that tasks are completed?
Finances
• What are my sources of revenue? • What are my expenses?
• How much will it cost to repair/replace an asset?
• When will I have to repair/replace an asset?
CUPSS MODULES
1) My Inventory 2) My O&M 3) My Finances 4) My Check Up Reports 5) My CUPSS PlanMy Inventory
• Identify your assets
• Basic Information
• Type, Name, Location
• Status and Condition
• Condition, Consequence of Failure (CoF), Redundancy, Can asset be repaired/replaced?
• Cost and Maintenance
• Installation Date, Original Cost, Expected Useful Life, Replacement Cost, Frequency of Routine Maintenance
• Manufacturer and Supplier
• Model Number, Manufacturer, Supplier Name, Address/Contact of Supplier
My Inventory (cont.)
• Create/edit a personalized schematic
• Visual representation of all assets
• My Capital Improvement Projects
• Lists all assets that need to be repaired,
rehabilitated, or replaced and recommended dates of action
• Asset Risk Matrix
• A graph that shows the risk category of each asset • Plots the probability of failure against the
My O&M
• Create future O&M activities
• Schedule tasks
• Daily, Weekly, Monthly, Annual Tasks
• Track current O&M activities
• Alerts you if a task is past due
My Finances
• Revenue - User rates, Grants, Loans/bonds, Reserve fund, Interest, One-time fees, Bulk sales, Contract sales, Product sales, Other
• Expenses - Maintenance, Equipment costs, Salaries and benefits, Supplies, Chemical costs, Contracts, Utility costs, Monitoring and testing, Emergency costs, Rent or mortgage, Insurance, Services, Training costs, Billing costs, Fees, Security, Capital improvements, Debt payment, Capital reserve contribution, Emergency reserve contribution, Other
• Graph your Financial Data
• Shows aggregated totals for actual and budgeted revenue and expenses for each year
Operating Expense
• High ratio indicates operating efficiency (expenses low relative to revenue)
• Debt Ratio = Total Liabilities Total Assets
• Measure of utility’s debt
• Sales Ratio = ____Sales____ Total Revenue
• Low ratio indicates utility is overly reliant on outside funding
• Expense Ratio = Operating Expense Total Expense
• High ratio indicates most expenditures are for operations. Low ratio indicates that utility is not likely to meet capital-related expenses, which may cause system to deteriorate more rapidly.
My Check Up Reports
1) My Asset Check Up
• Displays summary report of all assets
2) My Financial Check Up
• Assists with long-term financial planning • Estimates capital improvement needs based on
asset consequence and probability of failure • Anticipates future growth of system • Anticipates cost increases due to inflation
My CUPSS Plan
• 7 steps:
1) Utility Profile
2) Mission and Level of Service (LOS) Agreement
3) Critical Assets 4) O&M Strategy
5) Capital Improvement Plan (CIP) 6) Financial Management Strategy 7) Finalize Plan
More Information
• For more information or to download CUPSS, check out EPA’s website at:
• www.epa.gov/cupss
• We plan to run CUPSS user training sessions soon • If you have any questions or are interested in attending
CUPSS user training, please contact: Joe duRocher (609) 292-5550 [email protected]
DWSRF
THE PROPOSED FFY2016 PRIORITY SYSTEM,
INTENDED USE PLAN AND PROJECT PRIORITY
LIST DOCUMENT
DRINKING WATER FINANCING
The Proposed Priority System document is
posted on the Department’s web site at
http://www.nj.gov/dep/watersupply/dws_loans.
html
and look for Proposed 2016 IUP
Engineering Services Contract
• In March 2014, NJDEP approved a $400,000 contract with New Jersey Water Association. • Systems serving less than 3,300 customers may access a pre‐approved list of consulting engineers to provide assistance in assessing needs of system and assistance in completing DWSRF applications and submittals for systems. • Includes : •Development of a preliminary asset management assessment and engineer's recommendation for needed improvements, as well as lower cost alternatives, •Engineering services for small water systems applying to the DWSRF loan program, such as prep of planning docs, design docs, and loan applicationsChanges to the FFY2016/SFY2017 Drinking
Water Revolving (DWSRF) Loan Program
Small Systems Water Loan
•
Designed to facilitate small system access to DWSRF financing•
Eligible candidates are active public community water systems and nonprofit non‐community water systems serving ≤ 10,000 persons.–
Active is defined as systems having an active PWSID n the NJDEP’s NJEMS database and who are responsible for at least two complete prior years of requisite public water system compliance sampling.Very Small Water Systems Loan
•
Very Small Water System defined as serving a population ≤ 500•
“DEP only” loan for very small systems•
Can receive a principal forgiveness (PF) “loan” up to $500,000, as long as they supply at last 15% of the project costs themselves using outside lenders or the NJDEP base program if credit worthy•
Larger systems can utilize this program to make infrastructure improvements to the smaller water system that they have acquired.Small Systems Water Loan
•
For systems serving a population ≤ 10,000•
Can receive a loan up to $1M with project costs allocated as follows:•
50% as Principal Forgiveness•
25% as zero interest loan•
25% as NJEIT market rate•
With priority as follows •Serving population ≤ 500 •Serving population 501 to 3,300 •Serving population 3,301 to 10,000Small System Loans
•
In FFY 2016, the NJDEP will also provide VSWS
or SWS loans to larger (> 10,000 statewide)
more viable water systems which are willing to
take ownership of small water systems in the
calendar year 2015 or later, and make needed
capital improvements.
•
Therefore, the larger water systems would be
eligible for the same enhanced loan terms as
the otherwise eligible small water system.
Restrictions to VSWS and SWS Loan Program
•
Limit of $500,000 principal forgiveness for any individual water system in any three year funding cycle.•
VSWS and SWS loans are unavailable to private and public utilities who serve >10,000 persons statewide, except these larger systems can utilize the VSWS and WSWS to make infrastructure improvements to small water systems that they have recently acquired (since 2015) Principal Forgiveness for Municipally Owned Systems for Treatment of a Primary Contaminant•
Municipally owned systems needing treatment for a primary contaminant, as follows:•
20% of total project costs (up to $2M) will be awarded as principal forgiveness loans•
$40% of total projects costs (up to $4M) will be awarded as zero interest loans from NJDEP •40% of total projects costs (up to $4M0 will be awarded as a loan at market rate from the Trust•
If total project cost is more than $10M, balance greater than $10M will be 75% zero interest from NJDEP and 25% market rate from TrustReadiness to Proceed
•
Proposing to grant priority status to DWSRF ranked projects that are ready to proceed based on the date of project approval.•
A listing of active projects and key milestone dates with target dates or actual completion dates for all active drinking water projects on the DEP website and the NJEIT website will be posted quarterly.•
Strong incentive for applicants to submit necessary application related documents and secure approvals as soon as possible.How Readiness to Proceed affects PF
•
Projected amounts of principal forgiveness funds must be less than 30% of the capitalization grant.•
For the FFY 2016 fiscal year, principal forgiveness money will be allocated in priority order to: 1. Very Small Systems 2. Small Systems 3. Municipal systems with a primary contaminant issue –Any unused principal forgiveness funds not used in a calendar year will be transferred to the next calendar year.Equipment Loans
• Proposing to reserve up to $1M for equipment purchases. • For the purposes of the equipment purchase reserve, equipment is limited to portable generators and other equipment where construction services (such as the installation of a pad to support a generator) are not needed to effectuate the project.Questions?