Managing the Water and Wastewater Utility - Table of Contents
Part I Water and Wastewater Utilities-History, Regulations, and Management
1. To Understand Where You Are Going, Understand Where You Have Been (or, How the Water and Wastewater Utilities Enabled the Development of Modern Civilization)
A. Back to the Beginning Ancient Water Infrastructure
B. Roman Advances in Engineering and Construction
C. Sanitation after the Collapse of the Roman Empire
D. The Great Sanitary Awakening
E. Technological Advances Improve Municipal Water Systems
1. Cast Iron Pipe Makes Pressure Water Distribution Systems Possible
2. Steam Energy Makes Pumping Practical
3. The Search for Uncontaminated Water Sources
4. Filtration and Disinfection Reduce Health Risk
5. Early Water Quality Standards of Limited Effectiveness
6. Municipal Water Systems Create Need for Sanitary Sewers
F. Wastewater-Out of Sight, Out of Mind
G. Secondary Treatment Processes are Developed
H. The Environmental Movement Overtakes the Sanitation Movement
I. The Revolution of the 1960s Raised Standards of Performance
J. The Development of Utilities as Regulated or Publicly Owned Businesses
K. Deregulation of Privately Owned Monopolies and Privatization of Public Agencies
L. Suggestions for Further Reading
2. Following All the Rules
A. Where the New Rules Come From
B. Understanding the Process
C. Federal Agencies with Rule-Making Power
D. Influencing Developing Laws and Regulations
E. The Action is in the Committees
F. The Clean Water Act and the Safe Drinking Water Act
1. The Clean Water Act
a. Title I-Research and Related Programs
b. Title II and Title VI-Grants for Construction of Treatment Works
c. and Clean Water State Revolving Loan Funds
d. Title III-Standards and Enforcement
e. Title IV-Permits and Licenses
f. Title V-General Provisions
g. Title VI-State Water Pollution Control Revolving Funds
2. The Safe Drinking Water Act
G. Suggestions for Further Reading
3. Leading and Managing in a Changing Environment
A. Why Do Utilities Need to Change the Way They Are Managed?
B. Factors Driving Change
C. Leadership and Management
1. Acceptable Risks
2. Leadership Traits
3. Leadership Skills
4. Building Relationships, Understanding, and-Most Important-Trust
5. Listening to Understand
6. Effective Meetings
7. Public Speaking
8. Public Information
D. Management
1. Planning
2. Organization and Staffing
3. Direction
4. Control
E. Suggestions for Further Reading
4. Strategic Planning: the Fine Art of Deciding Where You Want to Go
A. What Will it Take to Become a High-Performance Utility?
B. Is the Utility in a Crisis?
C. Strategic Planning and Continuous Improvement
D. What is the Goal of the Strategic Planning/Continuous Improvement Process?
E. How To Get Started
F. Training
G. Developing a Strategic Plan
H. Covering the Bases
1. Process and Terminology
2. History of the Utility
3. Mission
4. Vision
5. Strengths, Weaknesses, Opportunities, and Threats
6. Strategic Initiatives
7. Goals and Objectives
8. Developing Support for the Strategic Plan
I. What Do You Do Next?
J. Suggestions for Further Reading
5. Continuous Improvement-The Fine Art of Getting Where You Want to Be
A. Changing the Utility Culture
1. Managing in a Public Environment
2. Consequences of Failure in Service
3. Managing a Monopoly
4. Managing the Infrastructure Assets
B. What Can Be Changed? What Needs to Be Changed?
C. Redesign Critical Work Processes
1. Putting Process Redesign Tools to Work
2. Continuous Improvement Means Teamwork
3. Analytical Techniques
4. Producing a Process Redesign Report
5. Problems That Can Develop During Process Redesign
6. Employees at All Levels Implement the New Programs
D. Transitioning to a Self-Changing Organization
1. The Management Function in the Change Process
E. Suggestions for Further Reading
Part II Managing the Money
6. Introduction to Utility Accounting
A. Getting the Best Financial Information and Putting it to Use
B. Good Financial Management
C. Where Do the Accounting Rules Come From?
D. Financial Accounting
E. Fund Accounting Overview
F. The Enterprise Fund-"Business Model" Accounting Rules Within a Fund
G. Defining Some of the Accounting Jargon
H. Governmental Accounting Standards Board Statement 34 and Asset Management
1. Straight Depreciation or Modified Method?
2. Condition Assessment
3. The Impact on Bond Interest Rates
4. Infrastructure Asset Management Programs
7. Managing the Money-Measuring, Controlling, Reporting, and Verifying the Numbers
A. Measuring and Reporting on the Utility's Business
B. Financial Statements
1. Consolidated Annual Financial Report
2. Stand-Alone Utilities
3. Government-Wide Financial Statements Versus Fund Financial Statements
C. The Monthly Revenue and Expense Report
D. The Balance Sheet, or Statement of Net Assets
E. Statement of Revenues, Expenses, and Changes in Fund Net Assets
F. Statement of Cash Flows
G. Management's Responsibility for Financial Management
H. Internal Control Structure
1. Control Environment
2. Risk Assessment
3. The Accounting System and Information Management
4. Control Activities and Procedures
5. Monitoring
6. Finding Balance-When Is Enough Control Enough?
7. Too Much Red Tape?
I. Understanding and Managing the Audit Process
1. Internal Audits
2. External Audits
8. Budgeting: The Planning Element of Money Management
A. Budgeting for Operations
1. Budgeting as a Strategic Visioning Tool
2. Budgeting as a Management Tool: The Budget Process
3. The Budget Document-Putting it all Together
a. Budgeting Revenue
b. Budgeting Expenses
c. Steps on the Evolutionary Ladder of Modern Budgeting
i. Line-Item Budgeting
ii. Organizational/Activity-Based Budgets
iii. Performance-Based Budgeting
d. Management Checklist for the Budget Function
B. Capital Budgeting
9. Rate Setting: What Will It Cost, What is Affordable, and Who Should Pay?
A. Rate Setting Overview
B. Setting Revenue Objectives and Managing Reserves
C. Setting the Rate Structure
D. Operational Revenue Sources
E. Capital Revenue Sources
F. The Strategic Plan
G. Pricing Logic
H. Rates Structures for Industrial and Commercial Customers
I. Wastewater Service Charge Characteristics
J. Industrial and Commercial Wastewater Rate Characteristics
K. Calculating Fees for New Water and Wastewater Customers
L. Rate Structure Implications of Various Capital-Forming Techniques
M. Suggestions for Further Reading for Chapters 6-9
Part III Managing Operations and Maintenance
10. Managing Operations
A. Operations Mission
B. Taking Charge of Operations
1. Gaining Credibility and Using it Effectively
2. Communications
3. Regulatory Compliance
C. The Technical Side of Operations
1. Taking Care of the Process
2. Taking Care of the Equipment
3. Keeping the Plant Clean, Neat, and Sanitary
i. Some Thoughts About Odor Control
ii. Odor Patrols
iii. Operational Responses
iv. Design and Construct Solutions to Odor Problems
4. Documenting, Communicating, and Managing Operational Data
D. Accomplishing the Mission with Excellence
1. Worker Safety
2. Process and Facility Security
3. Cost Control
11. Maintenance Management
A. Infrastructure Asset Management
B. Staffing
C. Principles of Modern Maintenance Management
D. Safety
E. Getting From the Reactive to the Scheduled Maintenance Mode
F. High-Performance Leadership Characteristics
G. High-Performance Management Characteristics
H. Major Maintenance Program
I. Training
J. Collection and Distribution System Maintenance
1. Essential Skill Sets of Field Personnel
2. Computerized Maintenance Management Systems for Collection
3. and Distribution Systems
4. Mapping Systems
K. Suggestions for Further Reading for Chapters 10-11
12. Privatization
A. What is Privatization?
1. Contract Operations
2. Asset Transfer
3. Investor-Owned Utility
4. Outsourcing
5. Cost-Effectiveness of Contract Operations
6. Public Sector Efficiency Improvements
B. Reasons for Contract Operations
C. Successful Contract Operations
1. The Request of Proposals Process
i. Stimulating Competition
ii. Selection Criteria
iii. Staffing Flexibility
iv. The Contract
v. Scope of Work
vi. Risk
vii. Incentives
2. Managed Competition
D. The Agency's Contract Administrator
E. Using the Competitive Pricing Model to Improve the Public Operation Efficiency
F. Suggestions for Further Reading
Part IV Managing Capital Improvements
13. Capital Improvements, Master Plans, and Capital Budgets
A. Long-Term Planning Criteria
1. Demographics
2. Land Use
3. Levels of Service
4. Environmental Issues
5. Asset Management and Infrastructure Rehabilitation
6. Regulations
7. Interface With Other Utilities
8. Planning Timeframes
B. Master Plans
C. Capital Improvements Plan
D. Financial Management Plans
E. Capital Budget Process
F. Managing the Planning Process
G. Public Participation
H. Suggestions for Further Reading
14. Managing the Design Process
A. Role of the Engineering Manager
B. Project Management System
1. Scope of Work
2. Selecting and Hiring Consultants
i. Request for Qualifications
ii. Request for Proposal
iii. Interview
iv. Selection
v. Authority
vi. Rotation
vii. Consider a Retainer Contract for Small Projects
viii. Cost
ix. Consultant Project Manager Expertise
3. Negotiating the Design Contract
4. Keeping the Project on Track
5. Internal Project Teamwork
6. Cost Control and Budgets
7. Schedules
C. Project Management Issues
1. Be Perfect
2. Understaffing
3. Tell Versus Sell
D. Design Elements
1. Predesign
2. Final Design
i. Record Drawings (As-Builts)
ii. Potholing
iii. Site Walk
iv. Cost Control
v. Bids
E. Specialty Design Services
1. Design Services During Construction
2. In-House Engineering Management
3. Discipline Versus Matrix Management
4. Function-Based Organizational Structures
5. Skill Specialization Versus Staffing Flexibility
6. Balance Design Talent
7. Teamwork
8. The Silver Bullet
F. Suggestions for Further Reading
15. Managing the Construction Process
A. Seek Success or Avoid Failure?
B. Key Roles During the Construction Phase
1. Desirable Qualities of a Construction Manager
2. In-House or Consultant Construction Management?
3. Should You Use the Design Consultant for Construction Management?
i. Following the Specifications
ii. Technical Issues
iii. Special Training for the Construction Team
iv. Written Reports
v. Shifting Allegiance of the Construction Management Team
vi. Working with City and County Public Works Pavement Inspectors
vii. Helping the Government that Owns the Street
viii. Community Mitigation
ix. Construction-Related Permits
1. Community Relations
2. Dispute Avoidance
3. Construction Claims and Lawsuits
E. Litigation with Cities or Counties
F. Suggestions for Further Reading
Part V Information Technology
16. Information Technology
A. The Essential Components
1. Planning for the Long Term
B. Computers
C. Operating Systems
D. Applications and Information Management Systems
1. Enterprise Resource Planning
2. Integrated Financial Applications Systems
3. Enterprise Asset Management/Computerized Maintenance Management
4. Information Technology Uses Throughout the Utility
5. License Management
6. Who Provides the Application and Database Service?
E. Networks
1. Local Area Networks and Wide Area Networks
2. Network Types
3. Network Topologies
4. Network Protocols and Architectures
1.1 Stormdrain constructed in Harappa, Pakistan, circa 2550 B.C.E
1.2 Pit cast iron pipe at the R. D. Wood Foundry, Florence, New Jersey, in the 1880s
2.1 The road from issue identification to utility response
2.2 Organization of governmental units responsible for environmental laws and regulations
2.3 The legislative process, simplified
4.1 The instigation of a utility change process
4.2 The strategic planning process creates internal alignment on the
utility's mission, defines a vision of what the utility can be, prioritizes
the opportunities and threats, and directs the resources and management
attention on a limited number of achievable goals
4.3 Utility management and business systems
6.1 Accounting rules overview
6.2 Fund groups and fund types within groups
6.3 Typical financial functions
7.1 The utility's money machine
7.2 New structure of governmental financial reports
7.3 Statement of utility operations
7.4 Typical balance sheet of a water and wastewater authority
7.5 Statement of revenues, expenses, and changes in net assets
7.6 Statement of cash flows
7.7 Distinctions between accounting and auditing
8.1 Putting it all together
8.2 Typical budget cycle
9.1 Typical revenue and reserve trends resulting from triennial rate changes
10.1 Managerial and technical knowledge is applied at every level in the utility
11.1 Idealized maintenance labor transition curve
11.2 Geographical information systems can display a wide variety of information, including pipe size and material
13.1 Fitting the various planning elements together
13.2 Written description of a project included in a capital plan
14.1 Organization A
14.2 Organization B
14.3 Organization C
15.1 Sample project presented for board approval at the time of bid acceptance
16.1 Information sources and uses in an EAM system
16.2 Application service provider service components
List of Tables
4.1 Examples of action plans developed to meet objectives designed to meet goals
8.1 Key performance indicators' measured quantities for various qualities of performance
9.1 Cost recovery rate model-allocation of various costs to service
13.1 Planning timeframes