From our early days spent leisurely romping around the backyard and digging in the sandbox we all should have learned a lesson or two about sharing.
Whether it was your favorite yellow shovel and pail or the hard lessons you later learned working in the water and wastewater business—it's important that we all heed our mothers' stern warning… "You’d all better start getting along or I'll tan your hide!"
Call it what you want—consolidation, regionalization, cooperation, restructuring or just plain ol' sharing—the bottom line for many smaller communities is that with literally billions of dollars worth of upgrades and repairs needed in the coming years to keep our nation's water and wastewater systems operating safely, the time has come to start working together. There's a big job ahead of us.
In this issue of the Safe Drinking Water Trust eBulletin we'll remind you of some of the great words of wisdom your mother imparted upon you and show you how to apply them to your interactions with other systems.
So let's get our elbows off of the table, sit up straight, stop making faces at our little sister and take a few minutes to read through these helpful tips…Or else we may just end up regretting it when dad gets home.
Additional Resources
www.hereinreality.com/funnystuff/otherstuff/virtualmom.html [1]
United We Stand. Divided We Sink?
Under the 1996 reauthorized Safe Drinking Water Act (SDWA), it was clearly noted that states cannot provide assistance to any system that fails to prove and maintain its system capacity (a system's technical, financial or managerial ability to ensure continued compliance with the SDWA and to provide safe drinking water).
System consolidation, regionalization and resource-sharing options are simply tools for capacity building that have the potential to play a large role in the future of the water industry. But like any tool, it all depends on how you use it, and the skill of the user.
In a regionalization scenario, water systems are physically, or even just administratively, tied together to form a system that provides water to a whole region. Another, relatively similar, approach is consolidation, which is in essence, regionalization on a smaller scale with a stronger system taking on a struggling system.
In contractual assistance or under an informal resource sharing agreement, systems agree to lend each other a hand. The level of assistance can range from contracting specific services (e.g., billing and lab services) from another system while maintaining autonomy to physically connecting two or more systems to ensure an adequate water supply.
Tip: Check out this month's Management-At-A-Glance section of the Safe Drinking Water Trust eBulletin for an in-depth explanation of regionalization and other resource-sharing options.
Based on the larger picture of infrastructure needs, funding levels and the desire for independence, systems and their customers should clearly decide their own future if the need for change is evident.
This is why opportunities for resource sharing with other systems should never be ignored. However, (remember how your mother always warned your about the company you keep?) it is very important that you weigh your options carefully to avoid putting your system into a situation that would be less than beneficial to your customers.
Much like a dentist's drill, consolidation and other skill-sharing scenarios are not always pleasant or enjoyable when the actual process is being completed, but they can help to cut away decayed tissue, expose the real root of the problem and allow for repair and healing to occur. You most likely wouldn't want to undergo the process if it isn't really needed, but at times it can provide a great deal of relief.
Additional Resources
http://www.epa.gov/safewater/sdwa/theme.html [2]
Can't We All Just Get Along?
To help drive home the industry's pressing need for a little cooperation it might be helpful to consider that the nation's nearly 700,000 miles of distribution lines will experience roughly 237,600 breaks next year—now is anyone willing to take on this challenge alone…any volunteers?
Regionalization and resource sharing among water and wastewater systems are not new ideas. However, they are issues that many people in the business seem to be talking about these days. For those who are in favor of merging systems—even on a relatively small scale—the ideas would seem to be the best things since sliced bread.
Potential benefits include:
• Economics of Scale—A larger pool of ratepayers gives you a larger pool of—paying customers of course!
• Consolidation of Services—Billing services, certified operators and other administrative functions can be put together to eliminate unnecessary duplication.
• Access to Capital and Lower Cost of Capital—The bigger you are the more attractive you look to potential funding sources.
• Greater Buying Power—It's a pretty sure bet that if you're buying in bulk, things will generally be a little cheaper. Call it the "Sam’s Club effect." We all know how much money you can save when buying, lets say, potato chips in bulk at your local Sam's Club. Of course, on the downside…it usually takes a rather large pickup truck to haul your entire "savings" home with you.
On the other hand, some people just aren't too keen on the whole concept. Remember: just because your friends all jumped off of the bridge doesn't mean that you have to follow them…now does it?
Potential challenges to consolidation include:
• Our Way or the Highway—Some systems may desire to continue to operate independently. Remember, the largest obstacle to any regionalization or resource sharing attempt will always be—people. Just like with their high school football teams, communities take a great deal of pride in who they are and what they do and it can often be difficult to bring two systems together as one team.
• Location, Location, Location—Systems may be so geographically isolated that consolidation will be economically difficult.
• Political Boundaries—In some cases, systems that are interested in consolidating may be located in different jurisdictional boundaries, so there may be greater initial resistance to share services.
Those who are in favor of system consolidation say that a streamlined approach will lead to stronger systems that are better positioned to meet the future needs of your customers.
However, for many systems, the idea of letting someone else have a say in how you run your system can be intimidating. But it doesn't have to be that way.
The notion of working with other systems to find a mutually compatible approach to resource sharing can take on many forms, from consolidation to the informal sharing of operator services to help cover vacations.
For any approach to work, interested systems must work toward: good communication, strong leadership, customer confidence, and common agendas to make the sharing scenario work smoothly.
Additional Resources
www.ruralsociology.org/annual-meeting/2003/GasteyerS.pdf [3]
Little Kingdoms…Lead to Polluted Moats.
More than 40 years ago, poor-quality water united a number of rural towns in northwestern Vermont. While the process wasn't always easy, the results have been positive for everyone concerned.
The mere fact that the "water was so bad you could chew it" in some localities and getting harder to find (remember: like money, water doesn't grow on trees!) in others led to the creation of the Champlain Water District, according to Peter L. Jacob, chair of Champlain's board of water commissioners.
Describing a situation where nearly a dozen small towns in Chittenden County served as "little kingdoms," Jacob described in a recent American Water Works Association article a situation where industry leaders seldom spoke to each other.
In the spring of 1966, water commissioners from Essex and Williston met with the South Burlington board to discuss forming a consolidated water district. By an overwhelming majority vote, the communities united.
"Water was the one thing we knew we all needed," said Jacob. "We all put away petty differences and solved our problems."
While it hasn't always been an easy path to follow, the regionalized water district has allowed the communities to address many of the region's water problems—together.
Additional Resources
www.epa.gov/ogwdw/smallsys/pdfs/capacitydevelopstudyv15.pdf [4]
A Well-Thought-Out-Plan: A Reservoir of Ideas.
As with any well-thought-out plan, the first step system managers/operators must take before they can begin to consider sharing resources or a consolidation plan is to take a good look at what they already have.
One of the best ways to do this is to complete a self-evaluation of your water or wastewater system.
Once you have determined your individual system's strengths and weaknesses, then you will have the knowledge you need to begin exploring the wide range of resource-sharing options that are available, or who knows, you might even come up with a few of your own that others haven't even dreamt of yet.
Below you will find a link to a helpful self-evaluation tool that will give you an in-depth look at the health of your system.
Now quit slouching, remember to wash behind your ears, and most importantly, play nice and remember to share.
Additional Resources
www.cdphe.state.co.us/wq/Drinking_Water/pdf/SystemsofConcern/ColoradoPWSSelf-Evaluation.pdf [5]