Transcript [Insert Title] - Rural Community Assistance Partnership (RCAP)

Rural Community Assistance Partnership
Practical solutions for improving rural communities
Effectively Managing
Your Water System Project
© 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.
This training was created
by
Rural
Community Assistance
Partnership
Practical solutions for improving rural communities
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
RCAP National Office
1701 K St. NW, Suite 700
Washington, DC 20006
(800) 321-7227
www.rcap.org | [email protected]
Southeast RCAP
Southeast Rural Community
Assistance Project
(866) 928-3731
www.southeastrcap.org
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
Introduction
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
Smallville needs water!
 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.
Why build a water system?
 Polluted groundwater/wells
 Other quality or quantity issues
 Poor fire service from existing
sources
 Promotion of growth
 Consumers’ complaints
Technical assistance providers
 Rural Community
Assistance
Partnership (RCAP)
 Primacy agency
capacity-development
programs
 Primacy agency compliance
assistance staff
 Rural Water Associations
 Primacy agency engineering services programs
 University environmental training programs
Business plan
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
Facilities plan
Your business plan must contain a facilities plan:
 an assessment of the current
and future water-supply needs
 a description of alternatives
with both construction and operating
costs and a rationale for the approach
Management 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
Financial 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
Feasibility study
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
Hiring an engineer
 Begin by sending a request for proposals (RFP) to
engineering firms.
 Interested firms will respond to
the RFP, and you will need to
interview your top choices.
 Engineering services may not
need to be bid competitively.
 Ask questions related to your
study and to the firm’s past
work history.
Funding your project
 loans
 grants
 loan/grant combinations
 bonds
Exercise #1
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 (continued)
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.
System design
 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
Get design approved
 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.
System construction
 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
Start-up considerations
 Office and equipment
– Computers
– Furniture
– Software
 Staff
– Operators
– O&M
– Office help
Structuring rates
 Tap fees for connection
 Rate structure
– Flat rate: A set amount
paid monthly, quarterly or
annually
– Charge based on amount
of water used
Annual budgeting
 A way to plan for the future
 Emergency reserves
Quality Control
 Test your water
 In-house testing
 External laboratory testing
Exercise #2
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 (continued)
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.
Summary
 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.
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?
?