Effectively Managing Your Water System Project Rural Community Assistance Partnership Practical solutions for improving rural communities © 2012 All rights.

Effectively ManagingYour Water System Project

Rural Community Assistance PartnershipPractical solutions for improving rural communities

© 2012 All rights reserved. Rural Community Assistance Partnership, Inc. This presentation may not be used in any for-profit venture without permission from RCAP, Inc.

Western RCAP

Rural Community

Assistance Corporation

(916) 447-2854

www.rcac.org

Midwest RCAP

Midwest Assistance Program

(952) 758-4334

www.map-inc.org

Southern RCAP

Community Resource Group

(479) 443-2700

www.crg.org

Northeast RCAP

RCAP Solutions

(800) 488-1969

www.rcapsolutions.org

Great Lakes RCAP

WSOS Community

Action Commission

(800) 775-9767

www.glrcap.org

Southeast RCAP

Southeast Rural Community

Assistance Project

(866) 928-3731

www.southeastrcap.org

Rural

RCAP National Office

1701 K St. NW, Suite 700

Washington, DC 20006

(800) 321-7227

www.rcap.org | [email protected]

Community Assistance

Practical solutions for improving rural communities

Partnership

This training was created by

Introduction

This training module will enable you to:

identify and list anticipated tasks of managing a project prior to beginning a water-treatment project

demonstrate and develop confidence to successfully manage a water project 

explain concepts and terms associated with the management of a water-treatment project

identify common challenges associated with managing a water-treatment project

During this training module, we’ll be describing:

what to expect before starting a project

the general process of managing a project

how to avoid some of the common pitfalls and problems while managing a project

Introduction

Smallville doesn’t currently have a public water system to provide water to its residents. The residents currently obtain water through private wells.

There is little point in building a water system just for the sake of it. Smallville needs to determine if there is a genuine need for a public water system.

Smallville needs water!

Polluted groundwater/wells

Other quality or quantity issues

Poor fire service from existing sources

Promotion of growth

Consumers’ complaints

Why build a water system?

Rural CommunityAssistancePartnership (RCAP)

Primacy agencycapacity-developmentprograms

Primacy agency complianceassistance staff

Rural Water Associations Primacy agency engineering services programs University environmental training programs

Technical assistance providers

Your system’s business plan must: identify the water-supply needs of the area identify alternatives to address those needs evaluate the alternatives recommend a specific alternative identify how the organization that will implement that

alternative will be structured and operate demonstrate that the operation of the proposed

alternative will be financially viable for a period of at least five years

Business plan

Your business plan must contain a facilities plan:

an assessment of the currentand future water-supply needs

a description of alternatives with both construction and operatingcosts and a rationale for the approach 

Facilities plan

Your business plan must contain a management plan:

documentation that the applicant has the legal right and authority to construct, operate, and maintain the system

a management and administrative plan

an operation and maintenance plan

Management plan

Your business plan must contain a financial plan:

Projections and assurances

that the system’s revenues and

cash flow will be sufficient for

meeting the costs of

construction, operation and

maintenance for at least five

full years from initiation of operations

Financial plan

The feasibility study is an engineering report that addresses: source treatment type distribution system construction, operations and maintenance and other

costs customer base capacity vs. need/demand

Feasibility study

Begin by sending a request for proposals (RFP) toengineering firms.

Interested firms will respond tothe RFP, and you will need tointerview your top choices.

Engineering services may notneed to be bid competitively.

Ask questions related to yourstudy and to the firm’s pastwork history.

Hiring an engineer

loans

grants

loan/grant combinations

bonds

Funding your project

1. Every proposed water system must complete a _____ _____ as a requirement of the permitting process.

2. Polluted _____ is a good justification for further investigating the need for a public water system.

3. If you qualify, you may be able to receive low- or no-cost assistance with managing the project from a _____ _____ provider.

Exercise #1

4. A business plan contains three main sections: the _____ plan, the _____ plan, and the _____ plan.

5. RFP stands for ______ _____ _____.

6. _____ surveys may be required by some funding sources.

Exercise #1 (continued)

Issue an RFP for design. Interview engineers and choose one. Finalize feasibility study:

– source– treatment type– distribution system– customer base– capacity– costs– O&M requirements

System design

System designs must be submitted and approved by your state’s primacy agency.

System designs must be accompanied by the business plan.

Protect your system: Make sure your system owns its design drawings.

Get design approved

Construction will be bid competitively– Fair and competitive bidding process– Avoids conflict of interest and legal complications

Change orders in writing, approved by board

Excessive cost changes may be re-bid

Timely inspections and corrections

System construction

Office and equipment– Computers– Furniture– Software

Staff– Operators– O&M– Office help

Start-up considerations

Tap fees for connection

Rate structure– Flat rate: A set amount

paid monthly, quarterly or

annually– Charge based on amount

of water used

Structuring rates

A way to plan for the future

Emergency reserves

Annual budgeting

Test your water

In-house testing

External laboratory testing

Quality Control

1. Change orders should always be in _____ form.

2. It is important to specify the ____ of the design drawings.

3. The construction of the water system will have to be _____ competitively; there are extensive requirements associated with this process.

Exercise #2

4. You want to make certain you receive the _____ drawings following construction.

5. The fee paid by customers when first connecting to the system is the ___ ___.

6. It is critical to keep a close eye on your _____ at start-up, or you may wind up with cash flow problems.

Exercise #2 (continued)

Project management is a complex process that follows a general order.

Board members and personnel of water systems can avoid a painful learning curve by being familiar with the project-management process and knowing what to expect.

This familiarity can result in avoidance of problems and cost overruns throughout the project.

You aren’t on your own. Technical assistance providers, consultants, and engineers can help you through the process.

Summary

For more help

Get RCAP’s comprehensive guide on constructing and developing water and wastewater infrastructure.

66 pages of how-tos and tips for a successful project.

Find it online at www.rcap.org/commpubs

Also on that page, find other RCAP guides on other topics mentioned in this training module.

Questions?

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