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CONTENTS<br />

November/december 2011<br />

COVER STORY<br />

22<br />

Pioneering Spirit in Colorado<br />

Consolidated Mutual <strong>Water</strong> Company gets ahead of the curve by implementing an<br />

aggressive in-house pipe bursting program for water main replacement.<br />

By Jim Rush<br />

22<br />

26<br />

32<br />

FEATURES<br />

26<br />

Hybrids: No Longer Just for Cars<br />

Georgia water utility employs both mobile and fixed networking for automated meter<br />

reading.<br />

By Pam Malone<br />

28<br />

HDD and <strong>Water</strong><br />

Horizontal directional drilling (HDD) offers innovative alternatives to meeting water supply<br />

challenges.<br />

By Michael Lubrecht and Dan Ombalski<br />

30<br />

Protecting our Future<br />

Advanced asset management plays a critical role in the keeping our vital infrastructure<br />

operating at the highest level.<br />

By Greg Baird<br />

32<br />

Public-private Partnerships<br />

Public-private partnerships (P3s) in the water sector are used increasingly as a means for<br />

addressing infrastructure around the globe.<br />

By Bob Bailey and Peter Nicol<br />

4 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


For more information visit www.uimonline.com/info


36<br />

34<br />

Teaming Up for <strong>Water</strong> Delivery<br />

Tampa Bay <strong>Water</strong> and Veolia <strong>Water</strong> North America complete largest design-build-operate<br />

water treatment facility in U.S. history.<br />

36<br />

Protective Coating for Wastewater Facility Concrete<br />

Surfaces — Best Practices<br />

Coatings can be an efficient and cost-effective technical solution for protecting and renewing<br />

sanitary sewer tanks, pipelines and appurtenances.<br />

By Jeff Maxcy and Tom Iseley<br />

DEPARTMENTS<br />

10 Publisher’s Message<br />

11 News<br />

17 Maxwell Report<br />

18 Washington Report<br />

19 Financial Report<br />

40 Calendar<br />

41 Advertising Index<br />

42 Commentary<br />

Chairman<br />

Sandy Robinson<br />

Vice President<br />

Malcolm Pirnie<br />

Steve Allbee<br />

Director-Gap Analysis<br />

U.S. EPA<br />

WATER UTILITY INFRASTRUCTURE MANAGEMENT<br />

The Journal of Finance and <strong>Management</strong> for <strong>Water</strong> and Wastewater Professionals<br />

Michael Deane<br />

Executive Director<br />

National Association of <strong>Water</strong> Cos.<br />

Editorial Advisory Board<br />

Ken Kirk<br />

Executive Director<br />

National Association of Clean <strong>Water</strong><br />

Agencies<br />

Susan M. Mays<br />

Communications Task Force Chair<br />

<strong>Water</strong> Partnership Council<br />

Steve Maxwell<br />

Managing Director<br />

TechKNOWLEDGEy Strategic Group<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> (ISSN 2150-1009) is published six times per year. Copyright<br />

2011, Benjamin Media Inc., P.O. Box 190, Peninsula, OH 44264. USA All rights reserved. No part<br />

of this publication may be reproduced or transmitted by any means without written permission<br />

from the publisher. One year subscription rates: complimentary in the United States and Canada,<br />

and $99 in other foreign countries. Single copy rate: $10. Subscriptions and classified advertising<br />

should be addressed to the Peninsula office. POSTMASTER: send Changes of Address to <strong>Water</strong><br />

<strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong>, P.O. Box 190, Peninsula OH 44264 USA.<br />

Canadian Subscriptions: Canada Post Agreement Number 7178957. Send change address information<br />

and blocks of undeliverable copies to Canada Express; 7686 Kimble Street, Units 21 & 22,<br />

Mississauga, ON L5S 1E9 Canada<br />

Scott Haskins<br />

Vice President-<strong>Water</strong> Business Group<br />

CH2M Hill<br />

Bill Hillman<br />

Executive Director<br />

NUCA<br />

Tom Iseley<br />

Chairman<br />

BAMI-I<br />

Professor/Director CEMT<br />

IUPUI<br />

Troy Norris<br />

Special Advisor<br />

Gene Schiller<br />

Deputy Executive Director<br />

Southwest Florida <strong>Water</strong><br />

<strong>Management</strong> District<br />

Doug Stewart<br />

Principal Asset <strong>Management</strong> Consultant<br />

GHD<br />

6 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


<strong>Water</strong> Optimization & Efficiency – Part II<br />

January 18, 2012<br />

2:30-3:30 pm EST | Cost: FREE<br />

To register, go to www.uimonline.com/index/webinars<br />

In the second of the series of four <strong>Water</strong> Optimization & Efficiency webcasts, Black & Veatch explores some of the options<br />

available to handle workforce issues currently facing utility managers. For many, labor costs represent the largest utility<br />

budget line item. However, reactive workforce reductions to meet pressing financial concerns can jeopardize an organization’s<br />

service levels as well as long-term sustainability. The second free webcast in the series addresses Labor, and will<br />

be held on Wednesday, January 18th at 2:30 EST.<br />

Attendees at the webinar will hear about:<br />

• Addressing the generational issues in your workforce<br />

• Change is good, you first. A look and managing workplace change<br />

• Assessing, measuring and managing staff to ‘rightsize’ your operation to maintain service levels and hold the line on costs<br />

sponsored by<br />

If you missed Part 1 of the series, you can watch the archived webinar here:<br />

www.uimonline.com/index/webinars<br />

2012 Educational Series<br />

Webinars<br />

are Free<br />

* Earn<br />

.1 CEU<br />

*There is a $10 administrative fee for attendees requiring a CEU<br />

certificate. It is the responsibility of attendees to contact their state<br />

approval boards to verify whether they accept webinars for credit.<br />

For more information visit www.uimonline.com/info


CONTRIBUTORS<br />

Pamela A. Malone serves as the Vice President of Strategic Development for Itron’s <strong>Water</strong> Group. Malone’s<br />

experience in the water industry spans over two decades and her role is multi-faceted including business development,<br />

government and regulatory affairs. Malone holds JD and MBA degrees from the University of San Diego<br />

and a degree in electrical engineering from Marquette University.<br />

Michael Lubrecht is a licensed geologist in Washington State and is the Senior Geologist with Directed<br />

Technologies Drilling, Inc., in Bremerton, Wash. He has worked in water resources development, environmental<br />

remediation, highway engineering, and coal exploration at various locations across North America. He currently<br />

resides near Seattle.<br />

Dan Ombalski, PG, EIT, is an engineer and geologist and the President of Directed Technologies Drilling Inc.,<br />

at the firm’s Pennsylvania headquarters in Bellefonte. He has worked as an environmental consultant, surveyor<br />

and civil engineer, and has pioneered many of the drilling techniques described in the article.<br />

Gregory M. Baird is Managing Director and Chief Financial Officer of AWI “Aging <strong>Water</strong> <strong>Infrastructure</strong>”<br />

Consulting. He is an experienced municipal finance and utility management professional, including serving as<br />

chief financial officer for Aurora, Colo., and has a Master’s in Public Administration (MPA) from Brigham Young<br />

University’s Marriot School of <strong>Management</strong>.<br />

Bob Bailey is the President of the <strong>Water</strong> Business Group for CH2M HILL. In this role, he has worldwide responsibility<br />

for the development, project performance, and risk management of all CH2M HILL water, wastewater and<br />

water resource projects.<br />

Peter Nicol is the Global Business Development Director for CH2M HILL’s <strong>Water</strong> Business Group. Nicol is a<br />

professional engineer with 30 years of experience, and has played key roles on some of the most significant<br />

water and wastewater treatment projects in Canada.<br />

Jeff Maxcy is a construction manager with CH2M HILL. He graduated from Mississippi State University in 1985<br />

with a bachelor’s in construction engineering and started working with CH2M HILL in 1987 as a construction<br />

inspector. For the past 20 years he has been involved with determining how to specify and install waterproofing<br />

materials, concrete restoration materials and coatings properly in a sanitary sewer system.<br />

Tom Iseley, Ph.D., P.E., is a Professor and Director of Construction Engineering <strong>Management</strong> Technology,<br />

Purdue School of Engineering & Technology at IUPUI. Iseley has over 35 years of experience in the planning,<br />

design and construction of underground infrastructure systems. He served on the faculty of Mississippi State<br />

University, Purdue University and Louisiana Tech University.<br />

8 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


For more information visit www.trenchlessonline.com/info


FROM THE PUBLISHER’S DESK<br />

CWC and CWAA<br />

Acronyms are a way of life. CWC (for the Clean <strong>Water</strong> Council) and CWAA (for the<br />

Clean <strong>Water</strong> American Alliance) represent the more preeminent water coalitions in<br />

the United States.<br />

The CWC comprises 39 national organizations principally representing contractors,<br />

engineers, manufacturers, suppliers and labor unions. CWAA is more on the<br />

public-sector side and comprises water/wastewater organizations, private water companies,<br />

engineers and academicians.<br />

CWC is all about the construction of water infrastructure. The Council promotes its<br />

cause by advocating federal legislation, such as SRF funding and private activity bonds<br />

to address America’s enormous funding deficiencies for water and wastewater infrastructure.<br />

CWC is spearheaded by the National <strong>Utility</strong> Contractors Association and its<br />

Vice President-Government Affairs Eben Wyman, who directs CWC’s activities. CWC<br />

is doing great things and we were pleased to hold a reception honoring CWC at the<br />

UIM annual Asset <strong>Management</strong> conference held recently in Arlington, Va.<br />

News about CWC can be read online at: www.cleanwatercouncil.org. You will want<br />

to read about the legislative work under way regarding the Sustainable <strong>Water</strong><br />

<strong>Infrastructure</strong> Act that would eliminate the limits on tax-free bonds for water/wastewater<br />

projects. This would allow communities to go the capital markets for private<br />

financing for the construction and repair of these systems.<br />

CWAA is directed by its president, Ben Grumbles, who served as the Assistant<br />

Administrator for <strong>Water</strong> at the U.S. EPA from 2003-2008 and more recently led<br />

Arizona’s Department of Environmental Quality. CWA is all about water sustainability<br />

and improving public awareness of our environmental water issues. CWAA does<br />

this through two councils: the Urban <strong>Water</strong> Sustainability Council and the Business<br />

Advisory Council. The Sustainability Council is chaired by Kevin Shafer of the<br />

Milwaukee Metro Sewage Agency. The Business Council recently named Steve<br />

Maxwell, TechKNOWLEDGEy Strategic Group, as its chairman.<br />

CWAA is advancing its cause in many ways, including the establishment of the U.S.<br />

<strong>Water</strong> Prize program. To some, this program is modeled after the highly regarded<br />

Stockholm <strong>Water</strong> Prize. The inaugural <strong>Water</strong> Prizes were awarded in 2011, celebrating<br />

five individuals and institutions. The 2012 <strong>Water</strong> Prize nominations are open<br />

until Dec. 31. I encourage you to check out the CWAA at its website: www.cleanwateramericaalliance.org<br />

to consider making a nomination for the <strong>Water</strong> Prize.<br />

Lakewood Colorado <strong>Water</strong> Construction Efficiency<br />

Recently Jim Rush, Editor of UIM, and I had the opportunity to visit Lakewood<br />

Colo. We were drawn to the community by the work it is doing rehabilitating the<br />

drinking water system using the trenchless technology method of pipe bursting.<br />

Lakewood’s water is provided by Consolidated Mutual <strong>Water</strong> Company, which has<br />

some 400 miles of drinking water pipelines. The utility has an aggressive program<br />

that in 2011 replaced 34,000 ft of water mains, and using its own crew to complete<br />

the work. The efficiency by Consolidated Mutual <strong>Water</strong><br />

Company in carrying out this work so impressed us that we<br />

decided to present it as the cover story for this issue. Please take<br />

the opportunity to read about the fine water work being done in<br />

Lakewood.<br />

Publisher<br />

Bernard P. Krzys<br />

Associate Publisher<br />

Robert D. Krzys<br />

Editor<br />

James W. Rush<br />

Managing Editors<br />

Sharon M. Bueno<br />

Keith Gribbins<br />

Contributing Editors<br />

Bradley Kramer<br />

Pam Kleineke<br />

Kelly Pickerel<br />

Creative Director<br />

W. M. Conley<br />

Graphic Designers<br />

Sarah E. Hayes<br />

Chris Slogar<br />

Elizabeth Stull<br />

Director of Marketing<br />

Kelly Dadich<br />

Regional Sales Manager<br />

Dan Sisko<br />

Regional Sales Representative<br />

Lindsie Bowman<br />

Audience Development Manager<br />

Alexis R. White<br />

Web & Interactive Manager<br />

Mark Gorman<br />

Merry Christmas & Happy New Year<br />

Bernard P. Krzys<br />

President & Publisher<br />

Editorial & Advertising Offices<br />

1770 Main St., P.O. Box 190<br />

Peninsula, OH 44264 USA<br />

(330) 467-7588<br />

Fax: (330) 468-2289<br />

www.uimonline.com<br />

e-mail: info@benjaminmedia.com<br />

For Reprints, contact Wright’s<br />

Reprints at 877.652.5295.<br />

10 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


NEWS<br />

conferences<br />

UIM Conference Visits Arlington, Va.<br />

The UIM Asset <strong>Management</strong><br />

Conference was held at the Hilton<br />

Arlington Nov. 28-29 and attracted 85<br />

participants from across the country.<br />

The meeting was co-located with the<br />

Buried Asset <strong>Management</strong> Institute-<br />

International (BAMI-I) annual Board<br />

of Directors meeting, under the direction<br />

of Dr. Tom Iseley of IUPUI.<br />

The UIM Conference — with the<br />

theme “Resilient and Sustainable<br />

<strong>Infrastructure</strong>” — was planned in conjunction<br />

with Dr. Sunil Sinha of Virginia<br />

Tech. Following the BAMI-I meeting on<br />

Tuesday, Nov. 28, the UIM Conference<br />

began with a panel discussion that featured<br />

representatives from DC <strong>Water</strong>,<br />

the City of Baltimore, Baltimore<br />

County, the Town of Blacksburg (Va.)<br />

and United <strong>Water</strong>. The panel was moderated<br />

by Michael Deane, executive<br />

director of the National Association of<br />

<strong>Water</strong> Companies.<br />

Following the panel discussion there<br />

was a Clean <strong>Water</strong> Reception hosted by<br />

Benjamin Media and the Clean <strong>Water</strong><br />

Council. Wednesday, Nov. 30 featured<br />

the full slate of speakers who explored<br />

research and initiatives, utility perspectives,<br />

and funding, legislative and<br />

financing issues.<br />

The conference features high level<br />

attendees that include municipal engineers,<br />

consulting engineers, federal government,<br />

academia, private-sector utilities<br />

and more. The conferences are well<br />

known for discussion and networking.<br />

Sponsors for the event were RapidView<br />

IBAK, Cityworks and I.T. For more<br />

information, visit uimonline.com.<br />

Main Event Sponsor<br />

Tom Kiefer of Baltimore County speaks during the panel discussion at the<br />

UIM Conference.<br />

Table Top Sponsors<br />

Eben Wyman, NUCA Vice President-Government Relations, gives a presentation on<br />

government initiatives related to water and wastewater.<br />

November/December 2011<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 11


NEWS<br />

WEFTEC 2011 Attracts<br />

Strong Crowd to Los<br />

Angeles<br />

A total of 16,961 water professionals<br />

and 923 exhibiting companies from<br />

around the world attended WEFTEC<br />

2011, the <strong>Water</strong> Environment<br />

Federation’s (WEF) 84th annual<br />

Technical Exhibition and Conference,<br />

which was held Oct. 16-19 in Los Angeles<br />

The calm before the storm – the WEFTEC<br />

Exhibit Hall just before the doors opened<br />

for attendees.<br />

The conference offered attendees<br />

their choice of more than 900 presentations<br />

in 114 technical sessions, 37 workshops,<br />

eight local facility tours, as well<br />

as several high profile events. Key sessions<br />

and workshops featured in-depth<br />

topics such as private sewer system<br />

management, innovative applications<br />

of recycled water, water infrastructure<br />

investment, recent developments in<br />

membrane bioreactor technology, and<br />

improved energy efficiency for wastewater<br />

treatment plants and processes.<br />

Of particular interest was a highpowered<br />

<strong>Water</strong> Leaders Session that<br />

featured a panel of top leaders in the<br />

water community’s consulting, finance,<br />

and public service sectors. The group<br />

shared their perspectives on water in<br />

the coming decade, including some of<br />

the anticipated challenges and innovations<br />

in policy, governance, finance,<br />

infrastructure, public safety and health,<br />

technology and R&D. Moderated by<br />

former U.S. EPA Administrator G.<br />

Tracy Mehan III (Principal of the<br />

Cadmus Group), the panel included<br />

Gretchen McClain (President of ITT<br />

Fluid and Motion Control), Laurent<br />

Auguste (President and CEO of Veolia<br />

<strong>Water</strong> North Americas), Dan McCarthy<br />

(President and CEO of Black & Veatch<br />

<strong>Water</strong>), David Gray (Managing Director<br />

of Global Industrial Services for Credit<br />

Suisse), and Jeff Eger (WEF Executive<br />

Director).<br />

Another highlight was the <strong>Utility</strong><br />

Executives Forum that examined the<br />

challenges faced by utilities during this<br />

time of economic uncertainty. Attendees<br />

heard about the outlook for the water<br />

sector as well as opportunities for innovation<br />

by using new approaches to<br />

financing, organization and technology<br />

through firsthand accounts by venture<br />

capitalist David Henderson (Managing<br />

Director of XPV Capital Corp.), Richard<br />

Fox (Chairman & CEO of Camp Dresser<br />

& McKee) and top executives representing<br />

three utilities from across the country,<br />

Tim Houghton (Executive Assistant<br />

for the City and County of Honolulu,<br />

Hawaii), Bill Gaffi (General Manager of<br />

Clean <strong>Water</strong> Services, Hillsboro, Ore.),<br />

and George Hawkins (General Manager<br />

of DC <strong>Water</strong>, Washington, D.C.).<br />

WEFTEC 2012 is scheduled for Sept.<br />

29 through Oct. 3 in New Orleans, La.<br />

NAWC President of the Board Lisa Sparrow,<br />

President and CEO of Utilities Inc., speaks at<br />

the <strong>Water</strong> Summit.<br />

La Jolla Hosts NAWC<br />

<strong>Water</strong> Summit<br />

Every day, water service companies<br />

help provide essential water and wastewater<br />

services to nearly 73 million<br />

Americans. The voice of the private<br />

water service industry is amplified by<br />

the National Association of <strong>Water</strong><br />

Companies (NAWC) that successfully<br />

hosted its annual <strong>Water</strong> Summit in La<br />

Jolla, Calif., from Oct. 2 – 5.<br />

NAWC’s Summit provided a forum<br />

for more than 350 water industry professionals<br />

to exchange ideas and share<br />

solutions that serve customers and<br />

make a difference for our nation as a<br />

whole. Speakers offered a variety of<br />

perspectives on the realities and challenges<br />

in the water utility industry, as<br />

they focused on the theme of Public<br />

Service & Private Enterprise: A<br />

Powerful Combination for Moving<br />

<strong>Water</strong> Forward.<br />

The audience listened to featured<br />

water book authors Brian Fagan, Elixir:<br />

A History of <strong>Water</strong> and Humankind;<br />

Robert Glennon, Unquenchable:<br />

America’s <strong>Water</strong> Crisis and What to do<br />

About it; Steve Maxwell, The Future of<br />

<strong>Water</strong> – A Startling Look Ahead; and<br />

David Zetland, The End of Abundance:<br />

Economic Solutions to <strong>Water</strong> Scarcity.<br />

In their books, the authors discussed<br />

how water has shaped our lives, and<br />

will continue to do so in the future.<br />

Karen Barnes, from The Shelton<br />

Group, discussed how research and<br />

social media trends suggest a shift in<br />

water customers’ expectations and<br />

interest in receiving water info. Barnes<br />

outlined a few communications strategies<br />

utilities can use to strengthen programs,<br />

and highlighted the <strong>Water</strong>Sense<br />

supported campaign “Wasting <strong>Water</strong> is<br />

Weird.”<br />

Public leaders from San Diego and<br />

Los Angeles described how they set<br />

objectives for water infrastructure and<br />

service in the face of supply challenges<br />

during the “<strong>Water</strong> is Your Business:<br />

Local Leaders on Building<br />

Partnerships” session. Maureen<br />

Stapleton, General Manager, San<br />

Diego County <strong>Water</strong> Authority, shared<br />

her beliefs on working with the private<br />

sector to achieve goals. Other summit<br />

highlights included two panels focused<br />

on financial perspectives on regulation<br />

and its impact on access to capital, a<br />

panel dedicated to leadership in the<br />

workplace, a professor who spoke<br />

about California’s water challenges,<br />

and Ned Breslin, CEO, <strong>Water</strong> For<br />

People, who emphasized today’s urgency<br />

to solve global safe water issues.<br />

Eric Thornburg, President and CEO,<br />

Connecticut <strong>Water</strong>, ceremoniously<br />

passed the gavel to the new NAWC<br />

12 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


NEWS<br />

President of the Board, Lisa<br />

Sparrow, President and CEO<br />

of Utilities Inc., after the presentation<br />

of NAWC’S<br />

<strong>Management</strong> Innovation<br />

Awards wherein four member<br />

companies walked away with<br />

honors for their industrychanging<br />

ideas including<br />

Missouri American <strong>Water</strong> for<br />

their Hammerbodies Wellness<br />

and Safety Program; Baton<br />

Rouge <strong>Water</strong> Company for its<br />

Efficient Use of Segways;<br />

Middlesex <strong>Water</strong> Company’s<br />

Marsh <strong>Water</strong> Main<br />

Replacement Project, and<br />

CH2M HILL’s Sustainability<br />

Pilot Program which consisted<br />

of 57 community projects.<br />

And for the first time,<br />

members had the opportunity<br />

to earn the American <strong>Water</strong><br />

Works Association (AWWA)<br />

Customer Service Certificate,<br />

a recognized industry-wide<br />

certification. The program,<br />

developed by AWWA with<br />

support from NAWC, offers<br />

professional training to staff<br />

of water and wastewater utilities<br />

that do not have the<br />

resources available for an inhouse<br />

customer service training<br />

curriculum.<br />

The next NAWC <strong>Water</strong><br />

Summit will be held in<br />

Miami, Florida, at Turnberry<br />

Isle from October 7-10, 2012.<br />

American <strong>Water</strong> Summit<br />

Held in Atlanta<br />

The American <strong>Water</strong> Summit Conference<br />

met Nov. 9-10 in Atlanta. The event was<br />

organized by Global <strong>Water</strong> Intelligence of<br />

the United Kingdom. There were close to<br />

300 attendees.<br />

The “<strong>Water</strong> Investment Idol” judges were Steve<br />

Maxwell, Jeff Garwood, Mark LeChevallier and<br />

David Gray.<br />

The conference concentrated on four<br />

areas: 1) water and energy issues, including<br />

gas shale fracking, 2) investing in<br />

water, 3) desalination, and 4) public-private<br />

partnerships.<br />

Principal organizers of the event were<br />

Debra Coy, Svanda & Coy Consulting, and<br />

Steve Maxwell, TechKNOWLEDGEy<br />

Strategic Group. The conference was a blend<br />

of panel presentations and a networking<br />

roundtable session, including a unique <strong>Water</strong><br />

Investment Idol session modeled somewhat<br />

after the hit TV program “American Idol.”<br />

The main sponsor of the event was Pentair.<br />

Panel presentations included such titles as<br />

“<strong>Water</strong> and Energy,” “Inland Desalination<br />

and Scarcity Solutions,” “Breaking the Mold<br />

on <strong>Infrastructure</strong> Finance,” and “Growing<br />

Blue – Moving <strong>Water</strong> Up the Agenda.”<br />

There were 20 networking roundtables with<br />

discussion leaders and topics such as: Kevin<br />

Shafer, Milwaukee Metropolitan Sewerage<br />

District, “Sustainability in Wastewater<br />

Planning,” Ben Grumbles, Clean <strong>Water</strong><br />

America Alliance, “Hydraulic Fracturing:<br />

Fresh Facts and Critical Choices,” and Greg<br />

Heitzman, Louisville <strong>Water</strong> Co., “The<br />

Corporatized Municipal <strong>Water</strong> Co.”<br />

There were five “<strong>Water</strong> Investment Idol”<br />

presenters. Michael Curren, Atlantis<br />

Technologies, was the winner for his radial<br />

deionization water purification system. A<br />

unique electronic technology aspect of the<br />

conference was a system that enabled attendees<br />

to vote on various questions raised in the<br />

panel discussions. Results of the surveys<br />

were immediately shown on a large screen.<br />

Christopher Gasson, Global <strong>Water</strong><br />

Intelligence, noted this was the second<br />

America <strong>Water</strong> Summit held. The first was<br />

in 2010 and drew about 250 attendees.<br />

Christopher Gasson, Global <strong>Water</strong> Intelligence,<br />

and Kathy Shandling, IPWA.<br />

For more information visit www.uimonline.com/info<br />

November/December 2011<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 13


NEWS<br />

MEETINGS<br />

U.S. Conference of Mayors Meets in<br />

Washington D.C.<br />

Annually, the U.S.<br />

Conference of Mayors<br />

<strong>Water</strong> Council meets in<br />

Washington, D.C., at the<br />

St. Regis Hotel. This<br />

year’s meeting took place<br />

Oct. 27-28.<br />

Co-chairs for the council<br />

are Mayor Jennifer<br />

Hosterman, Pleasanton,<br />

Calif., and Mayor Stephanie<br />

Rawlings-Blake, Baltimore<br />

Md. Considering the meeting<br />

was being held in<br />

<strong>Water</strong> Council co-chairs (l-r) Stephanie<br />

Rawlings-Blake (Baltimore, Md.) and<br />

Jennifer Hosterman (Pleasanton,<br />

Calif.) presided over the meeting.<br />

Washington, D.C., there was considerable focus on matters related<br />

to the federal government. At the top of the list was a discussion<br />

on “Federal <strong>Water</strong> and Wastewater Mandates.”<br />

The general atmosphere of the mayors was that there is an<br />

ever-increasing number of unfunded mandates. The mayors<br />

discussed that with tighter municipal budgets, it is difficult to<br />

address these mandates. Discussing the wastewater mandates at<br />

the meeting were Susan Bodine, Barnes & Thornburg, and<br />

Adrienne Nemura, Limno Tech. Regarding the drinking water<br />

mandates, Tom Curtis of AWWA was present.<br />

The second day of these council meetings is usually devoted<br />

to innovations. Chad Carney of 3M made a presentation titled<br />

“A Sustainable and Cost Effective Rehabilitation Solution for<br />

Potable <strong>Water</strong> <strong>Infrastructure</strong>” based on 3M’s new water pipeline<br />

coating system. Veolia <strong>Water</strong> has developed a new<br />

approach to public-private partnerships based on performance<br />

contracting. Harald Jensen and David Gadis of Veloia made a<br />

presentation titled “A Winning Formula for Your City<br />

Winnipeg Alliance Reshapes How City Manages <strong>Water</strong><br />

<strong>Infrastructure</strong> Challenges.”<br />

There was a session on “System Efficiencies, Emergency<br />

Preparedness and Innovations.” A new <strong>Water</strong> Council member,<br />

PureSafe <strong>Water</strong> System’s Gerald Stoehr made a presentation on<br />

“Providing <strong>Water</strong> Supply in Disaster Events and Recovery<br />

Periods.” Another new <strong>Water</strong> Council member, Schneider Electric,<br />

made a presentation on “Energy Performance Contracting and<br />

Supply <strong>Management</strong> for <strong>Water</strong> and Wastewater Treatment.”<br />

Edwin Newell was there on behalf of Schneider Electric.<br />

As the meeting closed, the mayors met privately with U.S.<br />

EPA officials.<br />

ADVANCED METERING<br />

Aclara Provides Total AMI Solution to<br />

Town of Culpeper<br />

The Town of Culpeper, Va., has chosen Aclara to provide a<br />

total advanced metering infrastructure (AMI) solution for electric<br />

and water meters. Aclara is part of the <strong>Utility</strong> Solutions<br />

Group of ESCO Technologies Inc.<br />

Culpeper’s new AMI system will deliver remote meter reading<br />

to 5,000 electric and 6,400 water customers. It will employ<br />

Aclara’s TWACS power-line technology for reading electric<br />

meters as well as its STAR Network system for water meters.<br />

In addition, Aclara will supply enterprise meter-data-management<br />

(MDM) and consumer-engagement solutions to<br />

Culpeper. A web portal will provide access directly to usage<br />

data, allowing the town to better service its customers.<br />

Culpeper also will employ Aclara solutions to manage and<br />

restore services after power outages, control usage during peak<br />

electric demand, and implement acoustic leak detection to find<br />

water losses in the distribution system.<br />

“Access to near real-time information will help us understand<br />

events on our utility networks and to be proactive in our<br />

response to outages, tampering, theft and leaks,” said Mike<br />

Stover, Director of Light and Power for the Town of Culpeper.<br />

“For example, the ability to identify the extent of power outages<br />

without sending personnel to the field will exponentially<br />

improve our ability to restore services quickly.”<br />

BUSINESS<br />

Xylem Launches as New Global, Pure-play <strong>Water</strong> Technology Company<br />

Xylem Inc. (NYSE: XYL)<br />

announced Oct. 31 that it has completed<br />

its spinoff from ITT Corp.,<br />

and has begun operations as a $3.2<br />

billion standalone global water technology<br />

company. Xylem’s marketleading<br />

product brands, applications<br />

expertise and technological strength<br />

enable the transport, treatment, testing<br />

and efficient use of water in public<br />

utility, residential and commercial<br />

building services, industrial and agricultural<br />

settings. The company serves<br />

customers in more than 150 countries<br />

to address critical water issues such as<br />

growing water scarcity, aging infrastructure<br />

and more stringent environmental<br />

regulations.<br />

“I’m extremely proud to announce<br />

the launch of a unique company, the<br />

product of more than 100 years of<br />

experience in the water business and<br />

the collective work and expertise of<br />

our nearly 12,000 employees and<br />

our strategic partners around the<br />

world,” said Gretchen McClain, president<br />

and CEO of Xylem. “While our<br />

name has changed with the spinoff,<br />

our customers will find in Xylem the<br />

same commitment to providing local<br />

service to meet their specific needs<br />

while leveraging our global network,<br />

technological strength and applications<br />

expertise.”<br />

Xylem serves a $30 billion segment of<br />

the global water equipment and services<br />

market through a distribution network<br />

consisting of a direct sales force and independent<br />

channel partners. The company’s<br />

products and services address the full<br />

cycle of water and are key in the collection,<br />

distribution and use of water. Wellknown<br />

and respected product brands<br />

such as Bell and Gossett, Flojet, Flygt,<br />

Godwin, Goulds <strong>Water</strong> Technologies,<br />

WTW and YSI, among others, will continue<br />

their place in the water industry as<br />

a part of the Xylem portfolio.<br />

14 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


NEWS<br />

Allentown (Pa.) Selects Itron to Manage<br />

<strong>Water</strong> Resources<br />

Itron Inc. announced that the City of Allentown, Pa.’s<br />

Bureau of <strong>Water</strong> Resources will implement Itron’s mobile<br />

data collection solution for the collection and analysis of<br />

water meter reads. The solution will help Allentown reduce<br />

non-revenue-generating water through improved metering<br />

accuracy, enhanced leak detection capabilities and added<br />

tamper deterrents. Installation is expected to be complete<br />

by mid-2013.<br />

The City of Allentown, which serves 34,000 connections<br />

for 118,000 residents, will install more than 26,000 Itron<br />

advanced datalogging water modules while utilizing the<br />

nearly 6,000 Itron water modules the utility already has in<br />

place. Allentown’s mobile data collection solution will also<br />

include Itron mobile collectors and web-based data presentment<br />

software.<br />

The flexibility of Itron’s technology enables utilities, such as<br />

Allentown, to support future migration from mobile data collection<br />

to fixed network systems within the same platform.<br />

“The City of Allentown chose Itron’s solution because it has<br />

the flexibility we need,” said John Parsons, manager Program<br />

Development. “We now have a proven solution to address the<br />

City’s need for increased water meter accuracy in addition to<br />

improving leak detection and deterring meter tampering.<br />

“By choosing Itron’s mobile solution, we have the option<br />

to migrate to a fixed base system in the future with very few<br />

changes to our operations. We are excited about a new automated<br />

meter reading system that will be a definite enhancement<br />

to the very labor-intensive process that we currently<br />

have in-place, while at the same time increasing City revenues,”<br />

Parsons added.<br />

With the Itron solution, Allentown can leverage the benefits<br />

of advanced datalogging analysis to detect water loss,<br />

conserving water resources and creating operational efficiencies.<br />

The solution will also dramatically reduce the time<br />

it takes to read all meters in the system, going from several<br />

weeks per quarter to two or three days.<br />

Greenville (Miss.) Selects Mueller Systems<br />

The City of Greenville, Miss., has selected Mueller Systems,<br />

a leading provider of innovative water infrastructure products<br />

and services and technologically advanced metering systems<br />

for water, electric and gas systems, to upgrade its water system<br />

with a state-of-the-art advanced metering infrastructure<br />

(AMI) network and new water smart meters.<br />

Mueller Systems will provide the Greenville with The<br />

Mi.Net Mueller <strong>Infrastructure</strong> Network for Utilities – an<br />

advanced two-way AMI network – as well as Mueller Systems’<br />

Hersey water meters for approximately 13,500 service connections.<br />

The municipally owned utility that provides water<br />

services to more than 36,000 people throughout Greenville<br />

was scheduled to begin installing the Mi.Net System and<br />

water meters in November 2011.<br />

“The City of Greenville is always looking for new ways to<br />

strengthen its water system, especially when it comes to<br />

improving conservation, customer service and operational<br />

efficiency,” said Lorenzo Anderson, City Engineer for The<br />

City of Greenville. “Upgrading our service connections with<br />

smart meters and linking them together with the Mi.Net<br />

System will help us to better meet each of these objectives by<br />

reducing water loss, helping our customers to better understand<br />

their water usage behavior and how their water consumption<br />

affects their bills, and reducing operational costs.”<br />

The Mi.Net System enables utilities to improve operational<br />

efficiencies and customer service by fully automating<br />

the meter reading-to-billing process and linking meters,<br />

distribution sites and control devices in a single data network.<br />

Benefits provided by the Mi.Net System include ondemand<br />

meter readings, e-mail alerts and alarms based<br />

upon near real-time information as well as the ability for<br />

utilities to better manage their water and electric resources<br />

through on-going access to custom data and information. A<br />

recent enhancement to The Mi.Net System is Mi.Data – a<br />

web-based portal that enables municipalities to strengthen<br />

relationships with consumers by providing a consolidated<br />

view of water and electricity usage online.<br />

CONDITION ASSESSMENT<br />

Echologics Signs Agreement with<br />

United <strong>Water</strong><br />

Echologics, a developer and leading provider of acousticbased<br />

technologies for water loss management, leak detection<br />

and pipe condition assessment, secured a three-year<br />

master services agreement with United <strong>Water</strong>. The agreement<br />

enables any operating division of United <strong>Water</strong> to readily<br />

utilize Echologics leak detection and condition assessment<br />

services. United <strong>Water</strong> is one of the nation’s leading water<br />

and wastewater utilities, supplying services to approximately<br />

7 million people in the continental United States.<br />

The agreement between United <strong>Water</strong> and Echologics<br />

is the result of a successful transmission main leak detection<br />

pilot project, completed in fall 2010. The pilot<br />

included testing of approximately 5 miles of water mains,<br />

including large diameter reinforced concrete pipe, prestressed<br />

cylinder concrete and cast-iron pipe for United<br />

<strong>Water</strong> New Jersey (UWNJ), a subsidiary of United <strong>Water</strong>.<br />

During the survey, Echologics non-invasively located a<br />

major leak on a river crossing, which was discovered on a<br />

42-inch CIP water main, with an estimated loss of 100,000<br />

gallons per day, and was isolated without breaking ground<br />

or disrupting service. As a result of the survey, UWNJ was<br />

able to quickly repair the leak, avoiding potential catastrophic<br />

failure.<br />

“Leaks and aging water pipes present significant challenges<br />

to water service providers around the world,” said Antonio<br />

Vicente, Operations Engineer for United <strong>Water</strong> New Jersey.<br />

“By partnering with Echologics, United <strong>Water</strong> can take a proactive,<br />

efficient approach to mitigating water leaks and assessing<br />

the structural condition of pipes, before service is compromised.<br />

Using advanced technology to address these items<br />

head-on is critical for United <strong>Water</strong> to continue fulfilling its<br />

primary objective, which is to provide its customers with the<br />

highest quality drinking water.”<br />

November/December 2011<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 15


NEWS<br />

LEAK DETECTION<br />

Wachs <strong>Water</strong> Services Awarded Leak<br />

Detection Contracts<br />

Wachs <strong>Water</strong> Services announced that it has recently been<br />

awarded several multi-year contracts to inspect up to 4,000<br />

miles of critical water mains for leaks in Connecticut and Texas.<br />

The contracts have a combined value of approximately $1 million<br />

and further strengthen Wachs <strong>Water</strong> Services position as a<br />

leader in advanced leak detection solutions.<br />

The prolonged drought conditions in many parts of the<br />

United States over the summer have resulted in critical water<br />

pipelines bursting in record numbers around the country, causing<br />

significant repair backlogs, service interruptions, and business<br />

and road closures. Soil surrounding buried water pipelines<br />

dries and shrinks in the summer, and freezes and expands<br />

in the winter, which can cause water pipes to shift and develop<br />

leaks. If the water main is old or in a structurally deficient condition<br />

the changing ground conditions make the water main<br />

even more susceptible to leaks or failures.<br />

To help utilities manage the increase in water main breaks<br />

and to conserve water resources, Wachs <strong>Water</strong> Services will<br />

deploy a variety of leak detection solutions including correlator<br />

listening devices and the Investigator in-line condition assessment<br />

technology for small diameter distribution mains, and<br />

the LDS1000 in-line acoustic/CCTV system for large diameter<br />

water transmission lines.<br />

“We are creating a cost-effective portfolio of proven leak<br />

detection technologies that offer solutions for utilities of all<br />

sizes when dealing with water main breaks and water loss,” said<br />

Cliff Jones, Vice President of Business Development, Wachs<br />

<strong>Water</strong> Services. “We are helping utilities nationwide to develop<br />

proactive water pipeline management programs that reduce<br />

repair and replacement costs, and significantly minimize the<br />

impact of water main leaks.”<br />

GREEN INFRASTRUCTURE<br />

Report Released on Green <strong>Infrastructure</strong><br />

Barriers & Gateways<br />

The Clean <strong>Water</strong> America Alliance (Alliance) released a<br />

report, Barriers and Gateways to Green <strong>Infrastructure</strong>, in an<br />

international webcast recently as part of the Virtual H2O<br />

conference. It is based on a national survey conducted last<br />

Spring that solicited more than 200 utilities, NGO’s, government<br />

and private entities to determine what sorts of obstacles<br />

they experienced, and opportunities were revealed, when<br />

implementing programs.<br />

“Green infrastructure comes in many shades and slices and so<br />

do the benefits and barriers,” explained Ben Grumbles,<br />

President of the Alliance. “Green infrastructure pioneers need<br />

support, guidelines, and assurances to create the foundation of<br />

practice needed for more common adoption. A sustained campaign<br />

of education and collaboration will reduce risk and uncertainty<br />

and open the door for more communities and organizations<br />

to shift the paradigm from gray to green.”<br />

The report summarizes the results of the survey and is<br />

informed by the ongoing green infrastructure research and<br />

developed and refined through conversations with partner<br />

organizations including American Rivers, The Conservation<br />

Fund, Low Impact Development Center, Smart Growth<br />

America, and the Alliance’s Urban <strong>Water</strong> Sustainability Council.<br />

The research survey was funded by the Turner Foundation to<br />

help inform U.S. EPA’s upcoming Stormwater regulations due<br />

to be released December 2, 2011. It can be downloaded at<br />

http://bit.ly/gireport.<br />

The report was planned to be a stimulus for advancing<br />

policy and practice at the Urban <strong>Water</strong> Sustainability<br />

Leadership Conference, Oct. 3-5, in Milwaukee. U.S. EPA’s<br />

Nancy Stoner, the Acting Assistant Administrator for <strong>Water</strong>,<br />

addressed the stormwater rule and how it will impact urban<br />

water management.<br />

Key recommendations include urging EPA to use new stormwater<br />

regulations and permits to help drive green infrastructure,<br />

fully measure and account for economic and environmental<br />

benefits, embrace regional flexibility and results-oriented<br />

approaches, and focus increased federal funding for green infrastructure<br />

initiatives. Coordination among other federal agencies<br />

is critical, especially the USDA, U.S. Department of the Interior,<br />

and U.S. Department of Transportation. This can also be true at<br />

all levels of government. Only through greater coordination,<br />

education, and funding can green infrastructure be advanced<br />

meaningfully and sustainably.<br />

GeoTree Technologies a Finalist in National<br />

Cleantech Open<br />

GeoTree Technologies Inc has been selected as a finalist in<br />

the 2011 National Cleantech Open. GeoTree uses industrial<br />

waste materials to make products that are used for pipe and<br />

road infrastructure rehabilitation.<br />

“Unemployment is the key issue facing this country, and<br />

infrastructure is in a state of severe decay. We need to find solutions<br />

to these macro issues,” said Amir Hoda, President and<br />

CEO of GeoTree Technologies. “The reason for the Cleantech<br />

recognition is our ability to help solve these problems with<br />

solutions than are more cost-effective than current solutions.<br />

GeoTree’s technology fixes America’s infrastructure at a lower<br />

cost, while creating construction jobs, manufacturing jobs and<br />

green-collar jobs.”<br />

GeoTree’s technology rapidly creates a new structural pipe<br />

inside the old pipe, with little to no public disruption. This<br />

process requires no digging, virtually eliminating traffic delays<br />

and associated idling cars and trucks, thereby eliminating as<br />

much as 90 percent of the greenhouse gas emissions. This<br />

technology is being embraced by states, including Georgia,<br />

Virginia, Texas and Michigan.<br />

The Cleantech Open runs the world’s largest cleantech<br />

accelerator. Its mission is to find, fund and foster entrepreneurs<br />

with big ideas that address today’s most urgent energy, environmental<br />

and economic challenges. To date, it has helped raise<br />

over $300 million in capital and created an estimated 2,500<br />

green-collar jobs.<br />

GeoTree Technologies is located in Lafayette, Colo. For<br />

inquiries, please contact Benjamin Cook at 720-921-8810 or by<br />

email at info@geotreetechnologies.com.<br />

education programs of the Alliance. Recommendations were<br />

16 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


By Steve Maxwell<br />

M A X W E L L R E P O R T<br />

The “Lucky 13” Going Forward<br />

The stock market has not had a fabulous year in 2011 —<br />

the S&P 500 and the Dow Jones Industrial Average sit<br />

about where they started the calendar year, and are right<br />

now trading at around 90 percent of their yearly high<br />

point. <strong>Water</strong> stocks, lamentably, have done even worse. As<br />

one can see from a quick glance, while many of the stocks<br />

in our revised Table are trading at around 80 percent of<br />

their yearly highs, several are trading in the range of 60<br />

percent and a couple are trading down at around 50 percent<br />

of their high – notably Mueller <strong>Water</strong>, which continues<br />

to suffer on-going losses, and Aegion (the new name<br />

for Insituform).<br />

You will note that we have made several changes to our<br />

table of water stocks. First, we have lost a few companies<br />

due to industry consolidation and acquisition — notably<br />

Ameron and Nalco, which were acquired, respectively, by<br />

National Oilwell Varco, and Ecolab at strong valuations.<br />

Second, we dropped at least one company — Energy<br />

Recovery — due to its small size — less than $40 million<br />

in revenue, and continuing net losses. The company,<br />

which came to the public markets a few years ago with<br />

high expectations, has seen its stock price continue to<br />

decline — from about $9.00 to a current level of less<br />

than $3.00. Finally, we dropped a few other companies<br />

because they simply are not really that focused on water<br />

— i.e., less than 20 percent of their total revenues are<br />

derived from water. This included Danaher, Robbins and<br />

Myers, Federal Signal and URS Corp.<br />

One bright spot from the perspective of the security<br />

analysts has been the emergence of Xylem — the former<br />

water division of ITT — as<br />

a separate publicly traded company.<br />

Indeed, Xylem now represents<br />

one of the largest — if not<br />

the largest — publicly traded<br />

and pure-play water company<br />

available on the U.S. stock markets.<br />

It is likely to become somewhat<br />

of a bellwether for the<br />

health and growth prospects of<br />

the overall water industry.<br />

These changes leave us with a “Lucky 13” of more<br />

pure-play water companies whose performance we will<br />

follow going forward. The outlook for 2012 is certainly<br />

tenuous at best, as the global economy continues to<br />

face massive debt problems and political uncertainties<br />

in many parts of the world. However, many continue to<br />

believe that water companies represent a true asset<br />

play, and should be one of the better places to put your<br />

dollars for long-term appreciation.<br />

Steve Maxwell is Managing Director of TechKNOWLEDGEy<br />

Strategic Group (TSG), a Boulder, Colo.-based management<br />

consultancy specializing in merger and acquisition<br />

advisory services, and strategic planning for the commercial<br />

water and environmental industries. Maxwell is author<br />

of the annual <strong>Water</strong> Market Review, and a recent book titled<br />

The Future of <strong>Water</strong>. He has advised dozens of water firms<br />

on strategy and transactional issues, and can be reached at<br />

(303) 442-4800 or maxwell@tech-strategy.com.<br />

WATER DOLLARS<br />

Company Price % of<br />

52-wk hi<br />

Revenue EBITDA<br />

(000,000)<br />

Market Cap. Enterprise Val/<br />

EBITDA<br />

EBITDA/<br />

Revenue<br />

ROE Performance<br />

TSG Index<br />

Aegion (AEGN) 15.86 53% 928 88 $619 8.8 9.5% 4.8% 8.4<br />

Badger Meter (BMI) 29.3 64% 267 44 $440 9.9 16.5% 14.0% 14.0<br />

Calgon Carbon (CCC) 15.04 83% 535 88 $857 9.9 16.4% 13.0% 13.8<br />

Franklin Electric (FELE) 45.43 87% 809 122 $1,045 8.9 15.1% 14.0% 13.0<br />

Gorman-Rupp (GRC) 29.59 81% 351 61 $621 10.0 17.4% 16.0% 14.9<br />

Layne Christensen (LAYN) 23.45 62% 1,100 99 $457 4.8 9.0% 8.6% 7.7<br />

Lindsay Manufacturing (LNN) 53.93 63% 479 68 $685 8.6 14.2% 15.0% 12.7<br />

Mueller <strong>Water</strong> (MWA) 2.13 44% 1,340 96 $332 9.9 7.2% -9.0% 4.7<br />

Northwest Pipe (NWPX) 23.37 76% 466 31 $220 10.3 6.7% 3.0% 7.0<br />

Pentair (PNR) 36.74 87% 3,340 476 $3,637 10.4 14.3% 10.0% 12.2<br />

Tetra Tech (TTEK) 21.98 81% 1,790 202 $1,385 7.1 11.3% 12.0% 10.2<br />

Watts <strong>Water</strong> Tech. (WTS) 36.37 89% 1,390 191 $1,309 7.9 13.7% 6.4% 10.5<br />

Xylem (XYL) 24.35 86% 3,740 615 $4,505 9.0 16.4% 0.0% 10.9<br />

Total 16,535<br />

Financial data as of December 10, 2011<br />

November/December 2011<br />

TSG Index: December, 2011 8.84<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 17


W A S H I N G T O N R E P O R T<br />

Mobile (Ala.) Completes Consent Decree Work<br />

Mobile, Ala., has completed all work required under a<br />

2002 consent decree resolving the city’s violations of the<br />

Clean <strong>Water</strong> Act and Alabama <strong>Water</strong> Pollution Control<br />

Act. The city’s Board of <strong>Water</strong> and Sewer Commissioners<br />

(Board) has paid the original $99,000 (federal) and<br />

$15,000 (state) civil penalties, as well as stipulated penalties<br />

totaling $476,000, and implemented related environmental<br />

projects valued at an additional $2.5 million. As a<br />

result, on October 25, 2011, the U.S. Department of<br />

Justice filed a notice of termination of the Consent<br />

Decree with the U.S. District Court.<br />

Alabama and Mobile Bay Watch, Inc. (known as Mobile<br />

Baykeeper) were co-plaintiffs with the United States in<br />

the case and resulting consent decree against the Board.<br />

This action marks a significant accomplishment for the<br />

Board, and will result in long-term environmental and<br />

public health benefits for the Mobile Bay area. This is<br />

also the first major Clean <strong>Water</strong> Act consent decree<br />

involving a municipal sewer system to be terminated<br />

within Region 4 of the U.S. Environmental Protection<br />

Agency (EPA).<br />

Under the consent decree, the Board was required to<br />

develop and implement numerous <strong>Management</strong>,<br />

Operations and Maintenance (MOM) programs to address<br />

the Clean <strong>Water</strong> Act violations cited. These include programs<br />

to ensure adequate sewer capacity; address operational<br />

and maintenance failures; control corrosion and<br />

grease in the sewer pipes; ensure proper reporting and<br />

public notification of sewer spills; prepare contingency<br />

plans for emergency situations; and monitor the water<br />

quality in the creeks and rivers within the Board’s service<br />

area. EPA estimates the Board has reduced its raw sewage<br />

discharges to surface waters by over 2.8 million gallons<br />

per year since implementing the programs, substantially<br />

reducing contamination and the risk to public health.<br />

The Board also completed four supplemental environmental<br />

projects (SEPs) as required under the consent<br />

decree. Two of these SEPs funded purchases of environmentally<br />

valuable habitats in Mobile County, under the<br />

Alabama Forever Wild program, and within the Dog River<br />

watershed. One project supported the repair of private<br />

residential service laterals in low-income areas. The final<br />

SEP provided partial funding for the publicly available<br />

Mobile Bay area water quality monitoring database.<br />

The Board owns and operates two wastewater treatment<br />

plants (WWTPs), which discharge treated wastewater into<br />

Mobile Bay and its tributary, Three Mile Creek, as well as<br />

the transmission and collection systems that carry wastewater<br />

to the WWTPs for treatment. The 2002 consent<br />

decree resolved violations of both the Clean <strong>Water</strong> Act<br />

and the Alabama <strong>Water</strong> Pollution Control Act dating back<br />

to 1993.<br />

Specifically, the Board was cited for exceeding the effluent<br />

limits outlined in its WWTPs’ National Pollutant<br />

Discharge Elimination System permits, as well sanitary<br />

sewer overflows (SSOs) from the Board’s wastewater collection<br />

and transmission systems. SSOs pose a significant<br />

threat to public health and the environment, and remain<br />

a leading cause of water quality impairment. SSOs contain<br />

raw sewage and have high concentrations of bacteria<br />

from fecal contamination, as well as disease-causing<br />

pathogens and viruses.<br />

House Repeals Withholding Rule<br />

The House of Representatives overwhelmingly voted to<br />

repeal a rule that would withhold 3 percent of payment<br />

for government contracts as a way to ensure those companies<br />

pay taxes. The withholding rule, which was introduced<br />

in 2006 and scheduled to go into effect in 2013,<br />

was repealed by a 405-16 vote.<br />

Business groups had argued that withholdings create<br />

cash-flow problems for contractors, many of which are<br />

operating at low margins to begin with. The repeal will<br />

also have to be approved by the Senate before it can<br />

become law.<br />

EPA Announces Final Study Plan to Assess Hydraulic<br />

Fracturing<br />

EPA announced Nov. 3 its final research plan on<br />

hydraulic fracturing. At the request of Congress, EPA is<br />

working to better understand potential impacts of hydraulic<br />

fracturing on drinking water resources. Natural gas<br />

plays a key role in our nation’s clean energy future and<br />

the Obama Administration is committed to ensuring that<br />

we continue to leverage this vital resource responsibly.<br />

In March 2010, EPA announced its intention to conduct<br />

the study in response to a request from Congress. Since<br />

then, the agency has held a series of public meetings<br />

across the nation to receive input from states, industry,<br />

environmental and public health groups, and individual<br />

citizens. In addition, the study was reviewed by the<br />

Science Advisory Board (SAB), an independent panel of<br />

scientists, to ensure the agency conducted the research<br />

using a scientifically sound approach.<br />

The initial research results and study findings will be<br />

released to the public in 2012. The final report will be<br />

delivered in 2014. To ensure that the study is complete<br />

and results are available to the public in a timely manner,<br />

EPA initiated some activities this summer that were<br />

supported by the SAB and provide a foundation for the<br />

full study.<br />

The final study plan looks at the full cycle of water in<br />

hydraulic fracturing, from the acquisition of the water,<br />

through the mixing of chemicals and actual fracturing, to<br />

the post-fracturing stage, including the management of<br />

flowback and produced or used water as well as its ultimate<br />

treatment and disposal. Earlier this year, EPA<br />

announced its selection of locations for five retrospective<br />

and two prospective case studies.<br />

This administration continues to take steps to ensure<br />

that we can rely on this abundant resource for decades to<br />

come, including taking steps to fully understand any<br />

impacts related to the development of this resource. This<br />

study is in line with the priorities identified in the president’s<br />

Blueprint for a Secure Energy Future, and is consistent<br />

with the Secretary of Energy Advisory Board recommendations<br />

on steps to support the safe development<br />

of natural gas resources.<br />

18 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


ABC Predicts 2012 Will Be a<br />

Slow Year for Construction<br />

Associated Builders and Contractors (ABC) in November<br />

released its 2012 economic forecast for the U.S. commercial<br />

and industrial construction industry. “ABC’s analysis<br />

of construction trends indicates 2012 will be a year of<br />

gradual progress as advances in private construction are<br />

partially offset by ongoing declines in publicly financed<br />

construction,” said ABC Chief Economist Anirban Basu.<br />

“Nonresidential construction spending is expected to<br />

grow 2.4 percent in 2012 following a 2.4 percent decrease<br />

in 2011,” Basu said. “The pace of recovery in the nation’s<br />

nonresidential construction industry remains soft and<br />

2012 is positioned to be a year of slow gain. The first half<br />

of 2012 may be particularly challenging, a reflection of<br />

the soft patch in economic activity experienced during<br />

much of the first half of 2011.<br />

“ABC’s national Construction Backlog Indicator, which<br />

stood at 8.1 months for both the second and third quarters<br />

of 2011, is not expected to advance substantially and<br />

likely will remain in the vicinity of 8 months of backlog<br />

for much of 2012,” said Basu. “However, backlog is one<br />

month higher from the same time last year. A backlog of<br />

less than 8 months is associated with construction spending<br />

declines, while a backlog exceeding 8 months is statistically<br />

associated with future construction spending<br />

increases. Today’s level of backlog is consistent with flat<br />

construction spending.<br />

“Nonresidential building construction employment is<br />

expected to increase 0.4 percent in 2012 following lackluster<br />

0.6 percent growth in 2011,” Basu said. “Employers<br />

will continue to seek increased productivity among existing<br />

workers in order to boost weak industry margins.<br />

“There may be a degree of relief for construction contractors<br />

with respect to materials prices. In 2011, prices<br />

for construction inputs rose 7.5 percent,” said Basu. “ABC<br />

expects 2012 materials prices will rise 4.7 percent. Despite<br />

a sluggish construction recovery, input prices are likely to<br />

remain elevated as global investors retain significant ownership<br />

in commodities and hedge against risks emerging<br />

from Europe, the United States, China and Brazil.<br />

“The direction of the U.S. dollar will play a major role in<br />

determining construction input prices in 2012. However,<br />

the dollar’s direction is far from obvious,” Basu said.<br />

“Although the nation continues to run a large trade deficit,<br />

which implies further deterioration in the value of the dollar<br />

over time, investors often race to dollar-denominated<br />

assets during times of global financial stress. We are in one<br />

of those times now, which could keep the dollar inflated in<br />

2012. While this would create a more challenging environment<br />

for U.S. exporters, it would likely result in lower<br />

construction materials prices.”<br />

Construction Industry Loses 12,000<br />

Jobs in November<br />

The nation’s construction industry lost jobs for a second<br />

straight month, shedding 12,000 jobs in November, according<br />

to the Dec. 2 jobs report by the Department of Labor.<br />

During the past 12 months, the construction industry has<br />

FINANCIAL REPORT<br />

added 18,000 jobs, or 0.3 percent. The construction unemployment<br />

rate slipped from 13.7 percent in October to 13.1<br />

percent in November, and is down from 18.8 percent in<br />

November 2010.<br />

Nonresidential building construction employment<br />

decreased by 1,200 jobs for the month, but has added 9,900<br />

jobs, or 1.5 percent, from the same time last year.<br />

Nonresidential building construction employment currently<br />

stands at 668,700.<br />

The nonresidential specialty trade contractor subsector<br />

lost 3,500 jobs for the month and has lost 9,900 jobs, or 0.5<br />

percent, compared to the same time last year. Heavy and<br />

civil engineering construction sector employment fell by<br />

7,000 jobs in November and has shed 2,900 jobs, or 0.3<br />

percent, year-over-year.<br />

Residential construction building employment decreased<br />

by 3,000 jobs for the month and has lost 400 jobs, or 0.1<br />

percent, compared to the same time last year. The residential<br />

specialty trade contractor subsector added 3,000 jobs in<br />

November, partially offsetting losses experienced by nonresidential<br />

specialty trade contractors. Year over year, the<br />

residential specialty trade contractor subsector has added<br />

20,800 jobs, or 1.4 percent.<br />

Across all industries, the nation added 120,000 jobs as the<br />

private sector expanded by 140,000 jobs and government<br />

lost 20,000 jobs. The nation has added 1,600,000 jobs or 1.2<br />

percent. The unemployment rate dropped from 9 percent<br />

in October to 8.6 percent in November.<br />

“Today’s employment release will be heralded by many as<br />

a major indication of progress,” said Associated Builders<br />

and Contractors Chief Economist Anirban Basu.<br />

“Unfortunately, the nation’s nonresidential construction<br />

industry is, for the most part, not a participant in this positive<br />

dynamic.<br />

“Nonresidential building construction employment<br />

slipped again in November, at least partially a reflection of<br />

the weakness that overtook the economy earlier this year,”<br />

Basu said. “Heavy and civil engineering declined by 7,000<br />

jobs, likely a reflection of the winding down of federal<br />

stimulus spending.<br />

“While the nation’s overall unemployment rate is now<br />

below 9 percent for the first time since March 2011, the<br />

construction industry unemployment rate remains elevated<br />

at 13.1 percent,” said Basu.<br />

“Overall, the last 10 weeks have ushered forth a period of<br />

remarkably better news regarding the economic recovery,”<br />

Basu said. “During portions of the summer, it appeared that<br />

the economy was on the brink of recession. Financial markets<br />

were chaotic in August. Since that time, consumer<br />

spending and business confidence has been on the rise,<br />

translating into more robust employment gains.<br />

“However, because construction is a lagging indicator,<br />

construction activity needs to increase before we see the<br />

industry’s unemployment rate begin to decrease,” said Basu.<br />

“According to ABC’s 2012 Construction Economic Forecast,<br />

we can only expect to see gradual progress in construction<br />

activity next year.”<br />

November/December 2011<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 19


For more information visit www.uimonline.com/info


Pioneering<br />

Spirit in<br />

Colorado<br />

Consolidated Mutual <strong>Water</strong> Company Gets<br />

Ahead of the Game with Pipe Bursting<br />

By Jim Rush<br />

Celebrating its 85 th anniversary in 2011, the<br />

Consolidated Mutual <strong>Water</strong> Company (CMWC) in<br />

Lakewood, Colo., is continuing the pioneering<br />

spirit of the company founders who banded together<br />

to provide water for the growing population in the West.<br />

Serving a population base of approximately 85,000<br />

people in the communities of Lakewood, Wheat Ridge<br />

and unincorporated portions of Jefferson County, CMWC<br />

is in the midst of a pipe replacement program that is saving<br />

the community money while increasing water quality<br />

and reliability. Beginning in 2010, CMWC began a systematic<br />

program to replace aging water pipes using the<br />

trenchless replacement technique of pipe bursting.<br />

Even though the program has been in place a short<br />

time, the results are already evident. CMWC is increasing<br />

its pipe replacement program in terms of footage installed<br />

per year with less cost and disruption to customers. Other<br />

utilities, including the neighboring communities of<br />

Denver, Aurora and Golden, have taken notice as well. In<br />

fact, CMWC has hosted some 1,000 visits to its jobsites<br />

over the past two years to see if the success can be replicated<br />

elsewhere.<br />

Background<br />

As the City of Denver grew in the early 20 th century, so<br />

too did its suburbs. To the west of town, water was<br />

obtained by drilling deep wells that came with considerable<br />

costs. To help allay these costs, residents banded<br />

together and formed “mutual water companies” that<br />

provided wells, pumps and distribution piping. In 1926,<br />

four of these companies — the Oaks Mutual <strong>Water</strong><br />

Company, the Glen Creighton Mutual <strong>Water</strong> Company,<br />

22 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


the Wadsworth Mutual <strong>Water</strong> Company and<br />

the North Wadsworth Mutual <strong>Water</strong><br />

Company — merged to form the<br />

Consolidated Mutual <strong>Water</strong> Company.<br />

Through the years, CMWC expanded<br />

through additional mergers to its present<br />

service area of approximately 27 square<br />

miles and 400 miles of distribution. Instead<br />

of using the deep wells, which were not considered<br />

sustainable, CMWC acquires 70<br />

percent of its water through the City and<br />

County and Denver. To help offset the<br />

effects of rationing and ensure adequate<br />

water supply to sustain growth, CMWC<br />

acquired surface water rights and constructed<br />

the Maple Grove Reservoir and Treatment<br />

Plant, which were completed in 1957. These<br />

facilities now provide approximately 30 percent<br />

of the water supply.<br />

The CMWC piping network comprised<br />

mostly cast-iron pipe installed in the 1940s<br />

and earlier that was reaching the end of its<br />

useful life. The pipe was suffering from corrosion<br />

and tuberculation, which resulted in<br />

water main breaks and water quality issues.<br />

In the past, CMWC had relied on open<br />

trench replacement of water mains, which<br />

resulted in disruption to residents and businesses<br />

in addition to the high cost of surface<br />

restoration. Mike Queen, president of<br />

CMWC, estimates that open trench replacement<br />

cost the utility an average of $112 to<br />

$115 per foot.<br />

Looking for a Better Way<br />

After Queen was invited to view a pipe<br />

bursting program in Florida, he was intrigued<br />

by the process and initiated a pilot project in<br />

Colorado. After evaluating and testing bursting<br />

equipment and piping products, CMWC<br />

decided to proceed with a pipe bursting program<br />

to replace approximately 25,000 linear<br />

feet of water mains beginning in April 2010<br />

targeting areas with antiquated and undersized<br />

lines. In total, CMWC crews replaced<br />

27,000 linear feet of pipe in 2010.<br />

While many cities hire specialty contractors<br />

for pipe bursting projects, CMWC elected<br />

to use its own crews. “We’ve always done<br />

our own pipeline installation, so we’ve always<br />

had our own construction crew. And it is the<br />

opinion of the Board, and mine too, that if<br />

we’re going to own it and maintain it, we<br />

might as well install it so that we know what<br />

we are getting. We met with the construction<br />

crew prior to starting the pipe bursting program<br />

and said ‘this is the direction we’re<br />

going, we need you on board,’ and everybody<br />

bought into it,” Queen said.<br />

CMWC purchased a TT Technologies<br />

800G static pull pipe bursting system and<br />

McElroy fusion equipment to install DR 18<br />

Fusible C-900 PVC pipe from Underground<br />

Solutions. CMWC enlisted the technical<br />

Cast iron pipe installed in<br />

the 1940s was being<br />

replaced to increase system<br />

reliability and water quality.<br />

Advanced <strong>Water</strong> Treatment Technology<br />

Pipe replacement isn’t the only area of innovation at the Consolidated<br />

Mutual <strong>Water</strong> Company. CMWC recently upgraded its Maple Grove Treatment<br />

Plant. The plant upgraded its capacity to 15 mgd (expandable to 18 mgd) and<br />

uses GE’s ZeeWeed Ultrafiltration membrane as part of its primary and secondary<br />

treatment process.<br />

The membrane is a pressure-driven barrier to suspended solids, bacteria,<br />

viruses, endotoxins and other pathogens used to produce water with very high<br />

purity and low silt density. It can serve as a treatment for surface water, groundwater,<br />

and biologically treated municipal effluent (membrane bioreactor and tertiary treatment).<br />

It can also serve as a pre-treatment before reverse osmosis and other<br />

membrane systems.<br />

Plant operator Chuck Conway said that turbidity regulations were the primary<br />

driver installing the membranes as the Maple Grove Plant. The plant uses the<br />

ZeeWeed 1000 system membrane for primary treatment and 500 system membrane<br />

for secondary treatment.<br />

A full-scale ZeeWeed treatment facility is comprised of a given number of modular<br />

components: modules, cassettes, and trains.<br />

A module is the basic building block and the heart of a ZeeWeed system. Each<br />

module contains thousands of horizontally strung membrane fibers that have millions<br />

of microscopic pores in each strand. <strong>Water</strong> is filtered by applying a slight<br />

vacuum to the end of each fiber which draws the water through the tiny pores and<br />

into the fibers themselves. The pores form a physical barrier that allows clean water<br />

to pass through while blocking unwanted material such as suspended solids, bacteria,<br />

pathogens and certain viruses.<br />

Modules are joined together to form a cassette, which is the smallest operable<br />

unit of the filtration system. Each cassette can have a variety of module configurations<br />

depending on the amount of water that the cassette is required to treat.<br />

Multiple cassettes are joined to form what is known as a process train. The train<br />

is a production unit containing a number of cassettes immersed in a membrane<br />

tank. Multiple process trains form a ZeeWeed treatment plant.<br />

Feed water flows into the membrane tanks and treated water is drawn through<br />

the membranes during Production by applying a vacuum to the inside of the membrane<br />

fibers. The water removed by permeation is replaced with feed water to<br />

maintain a constant level in the tank.<br />

The particles that are rejected by the membrane pores remain in the process<br />

tank and are periodically removed by a process called a Backwash (BW). During a<br />

backwash, filtered water is reversed through the membrane fiber to dislodge any<br />

particles that may be physically lodged in the membrane fiber. Simultaneously,<br />

aeration scours any solids that are attached on the surface of the fibers.<br />

To prevent fouling of the ZeeWeed membranes operators are required to perform<br />

regular maintenance cleans (MC). Maintenance cleaning begins by draining<br />

the membrane tank and soaking the membranes in a cleaning solution for several<br />

minutes. The solution is then drained and chemical residues are flushed from the<br />

membranes before the system resumes normal operation.<br />

November/December 2011<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 23


assistance from the manufacturers when it initiated<br />

the pipe bursting program and have been fully self<br />

performing the installations with efficiency ever since.<br />

Typical pipe bursting runs are in the range of 500 to<br />

800 feet, but CMWC has successfully completed runs<br />

of 1,300 and 1,800 linear feet.<br />

The pipe bursting process consists of digging an<br />

entry pit and an exit pit instead of trenching along<br />

the whole length of the pipe alignment. A temporary<br />

bypass is needed to keep water flowing to residents<br />

and businesses during the process.<br />

Crews fuse the PVC pipe offsite and move it to the<br />

location when they are ready for the burst. The pipe<br />

bursting machine, which includes a series of rods that<br />

are strung through the pipe, attaches to a bursting<br />

head that is pulled through the existing pipe, breaking<br />

the pipe and expanding out into the soil while<br />

pulling in the new PVC pipe. Once in place, pits are<br />

dug to reconnect house connections.<br />

Pipe sizes being replaced are 4-, 6- and 8-inch. One<br />

unique feature about pipe bursting is that it allows<br />

the option to upsize the pipe. In most cases, CWMC<br />

is upsizing the pipe by 2 inches, including some<br />

instances of upsize 4-inch pipe to 8-inch.<br />

The first phase of the project started on April 26,<br />

2010, and was completed on Sept. 10, 2010. Due to<br />

the success of the program, CMWC increased the<br />

footage installed in 2011 to 34,000 linear feet, with<br />

plans to replace 40,000 feet in 2012. Previously,<br />

CMWC had been able to replace an average of 12,000<br />

feet of pipe per year through open-cut methods.<br />

CMWC purchased a second pipe bursting unit to<br />

allow crews to leap frog between job locations, which<br />

has helped increase production.<br />

CMWC’s Queen stated: “We saved $1.3 million<br />

using pipe bursting instead of the open-cut method<br />

on the first phase … and we anticipate the same cost<br />

saving results [for future projects].” He said that pipe<br />

bursting has cut replacement costs in half.<br />

Queen said that he sees resistance to pipe bursting<br />

at other utilities because of unfamiliarity to the<br />

method or a reluctance to try new technologies. “At<br />

some point you need to toss tradition aside and do<br />

what is best for the organization,” he said. “We are<br />

aggressively replacing our old cast-iron mains and<br />

in the next 15 years, our system will be in really<br />

good shape.”<br />

Andy Seidel, CEO and president of Underground<br />

Solutions, said CMWC is an example for other utilities<br />

and municipalities. “In a time of constrained<br />

municipal budgets and tight capital spending,<br />

Consolidated Mutual <strong>Water</strong> Company has shown<br />

that it is possible to do more with the same vs. settling<br />

for doing less,” he said. “The key variables to<br />

this equation of success are courage, discipline and<br />

an open mind.<br />

“This project is a call to action for utilities across<br />

the country — that with trenchless technology, they<br />

can gain ground on their infrastructure problems vs.<br />

falling behind.”<br />

Jim Rush is editor of UIM.<br />

Mike Queen, president of the Consolidated Mutual <strong>Water</strong><br />

Company, at a pipe bursting project site.<br />

The Fusible PVC pipe was fused at city-owned property and<br />

transported to the jobsite when needed.<br />

24 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> (UIM):<br />

Helping Municipal Leaders<br />

Make the Right Decision<br />

Managing water and wastewater systems requires a<br />

balancing act that includes inspecting and evaluating<br />

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been tasked with administering these important underground<br />

facilities knows that it is no easy task.<br />

So that’s where UIM comes in. UIM is designed to<br />

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officials keep their systems operating in peak condition,<br />

covering the above topics as well as broader management<br />

topics such as customer service, human resources and<br />

crisis management. UIM keeps executive decision-makers<br />

informed of the latest trends and technology affecting the<br />

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Don’t be left guessing when it comes to making<br />

the right decision, subscribe to UIM today.<br />

Renew your subscription today<br />

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Fax: 888.585.0180<br />

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1. What is your organization’s<br />

primary business (Check one)<br />

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and/or Plants<br />

B. <strong>Water</strong> ONLY Systems and/or Plants<br />

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3. Which infrastructure activities are you involved in<br />

(check all that apply)<br />

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B. Drinking <strong>Water</strong> Distribution<br />

C. Financial Planning<br />

D. <strong>Infrastructure</strong> Security Systems<br />

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2. Which title group best describes<br />

your job title (check one)<br />

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UIM1211


HybridS:<br />

No Longer Just for Cars<br />

Georgia <strong>Utility</strong> Employs Both Mobile and Fixed<br />

Networking for Meter Reading<br />

By Pam Malone<br />

As the saying goes, “The more you peel an<br />

onion, the more you discover.” The same can<br />

be said for selecting and deploying an<br />

advanced metering infrastructure (AMI) system.<br />

Holding the AMI onion in your hand, you think you<br />

know all there is to know about it. However, as your list of<br />

wants and needs becomes more defined, you discover that<br />

choosing the right AMI system seems more complex with<br />

each layer revealed.<br />

It may seem like all AMI solutions are built the same, with<br />

AMI vendors promising operational efficiency, improved<br />

customer service and system integrity. So where do you<br />

start What are the different layers of the AMI solution<br />

Will Rogers once said that an onion can make people cry,<br />

but there’s never been a vegetable that can make people<br />

laugh. This is the story of how one utility in northern<br />

Georgia found both laughter and tears when deciding<br />

which AMI system was right for them. Though AMI systems<br />

are no laughing matter, there’s no use crying over<br />

them either. With the right tools, in-depth research and<br />

information, you can discover what type of AMI system is<br />

right for you.<br />

Douglasville-Douglas County <strong>Water</strong><br />

and Sewer Authority<br />

Lori Camp, Billing and Customer Service Supervisor at<br />

Douglasville-Douglas County <strong>Water</strong> and Sewer Authority<br />

(DDCWSA), knew the utility needed to solve some problems.<br />

Over time, reading meters manually — even with a handheld<br />

device — became inefficient and it didn’t eliminate misreads,<br />

rereads or customer billing complaints. She knew all the<br />

buzzwords and acronyms, but didn’t know where to begin<br />

finding out if an AMI system was the right solution for<br />

DDCWSA; and if it were right, which type of system would<br />

address the utility’s immediate and long-term needs.<br />

Needs Identification Phase<br />

Similar to other water utilities embarking on an AMI<br />

program, DDCWSA formed a committee, and began<br />

examining specific departments and employees who<br />

would most likely be impacted by an AMI system. A sampling<br />

of employees was selected to be members of a<br />

special “AMI Impact” committee with representation<br />

from Purchasing, IT, Billing, Customer Service,<br />

Engineering and Meter Reading Departments.<br />

At first it seemed daunting to try to reconcile the<br />

wants and needs of so many functional areas into one<br />

cohesive unit. One employee even questioned whether<br />

any one AMI vendor could deliver the right combination<br />

of products and services to keep all stakeholders happy.<br />

Fortunately, each group played its part. Purchasing<br />

investigated the different AMI vendors and developed<br />

the appropriate bid specifications, formal Request for<br />

Proposal (RFP) and purchasing documents. Additionally,<br />

they researched whether one system was capable of<br />

retrieving at least 40 days of hourly interval data from<br />

meters whether gathered with a fixed network or mobile<br />

collection system. Also important to Douglasville was<br />

transparency in the evaluation process and that equal<br />

consideration be given to each competing vendor.<br />

The IT department evaluated each competing system’s<br />

ability to integrate AMI meter reading data into its<br />

billing software. Meanwhile, Billing wanted to know if<br />

the file transfers could be prepared to easily create a<br />

bill. Customer Service staff needed assurance that the<br />

data collected could be easily communicated to the enduser<br />

customer as an aid in resolving billing disputes. At<br />

the same time, Engineering was looking to see if an AMI<br />

system would enable the department to analyze flow<br />

rates, aggregated consumption and reverse flow from<br />

the datalogging information coming in from the AMI<br />

system. The Meter Reading department was equally concerned<br />

with ensuring that the read rate accuracy would<br />

not be compromised within the diverse topography of<br />

DDCWSA’s service area. Lastly, the utility wanted to be<br />

sure that the communications hardware would be compatible<br />

with different water meter types and installed<br />

and managed professionally.<br />

26 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


Background<br />

<strong>Utility</strong>: Douglasville-Douglas County<br />

<strong>Water</strong> and Sewer Authority<br />

Contact: Lori Camp<br />

Location: 30 miles west of<br />

Atlanta, Ga.<br />

Service connections: 42,000 over 200<br />

square miles<br />

The Douglasville-Douglas County <strong>Water</strong> and Sewer Authority (WSA) has been<br />

delivering quality water and wastewater service to Douglas County, Ga., residents<br />

since 1986. WSA’s goal is to protect, maintain, and enhance the environment,<br />

public health, safety, and welfare of the general public. Over the past 24<br />

years, WSA’s services, including the recent service of stormwater management,<br />

have won a plethora of national, state and local awards.<br />

AMI Solution and Vendor Selection<br />

Process<br />

DDCWSA gathered a list of AMI vendors and asked each<br />

company to make an informal presentation of its AMI solutions,<br />

products and services. It became clear after the initial presentations<br />

and product demonstrations that not all AMI systems are<br />

made equally. The differences were quite distinct. So, the utility<br />

decided to develop an RFP to guide it through the vendor selection<br />

process. Doing so gave DDCWSA more flexibility to select<br />

the right solution tailored to the utility’s specific needs and not<br />

be limited to a supplier’s off-the-shelf offering.<br />

The criteria outlined by DDCWSA were comprehensive,<br />

including compatibility with diverse brands of existing water<br />

meters. Additionally, the RFP required that the AMI system<br />

being proposed wouldn’t interfere with its existing SCADA<br />

equipment and that the system would seamlessly integrate into<br />

the utility billing system. Finally, for communication infrastructure,<br />

the utility required the vendor to utilize utility-owned<br />

property only, primarily for the placement of cellular data collectors<br />

that eliminate the need for additional land acquisition.<br />

Evaluation of each competitive RFP was also done by committee.<br />

The committee asked many questions, including, but<br />

not limited to: Did the vendor address each of the requirements<br />

outlined in the RFP Did the vendor have the required<br />

experience integrating collected meter data into its billing<br />

software Is the proposed system cost effective for the utility<br />

to operate The list of questions seemed to be endless.<br />

Each open-ended question revealed another layer of the<br />

“AMI onion.” This is where the potential for tears came in to<br />

play. In DDCWSA’s case, the box of tissues used to help absorb<br />

the tears turned out to be a proposal evaluation form. This tool<br />

enabled each department to evaluate the proposals from its<br />

own point of view. It asked each representative to rank the RFP<br />

responses related to each department’s wants and needs.<br />

The Right Choice — Itron’s Hybrid<br />

AMI Solution<br />

In the end, what DDCWSA thought it wanted at the<br />

beginning of their journey was not what it chose. The signs<br />

pointed to different paths. The path less obvious — but<br />

often the most valuable — was the hybrid path. That is, an<br />

AMI system consisting of multiple collection options — a<br />

combination of both mobile and fixed network meter reading.<br />

It assured a read-rate reliability threshold of 99 percent<br />

across the entire service territory regardless of the<br />

time of year, rain or snow, lush spring foliage or sparse tree<br />

limbs in fall. Additionally, the hybrid method enables<br />

detailed data logging regardless of whether mobile or<br />

fixed network meter reading is used.<br />

Itron provided a future-proof AMI system called<br />

“ChoiceConnect” that is migratable without having to<br />

change out embedded hardware. The system delivered<br />

the same meter read data to customer service representatives<br />

regardless of how the data were collected. Moreover,<br />

the system took into account the initial upfront costs with<br />

an eye toward long-term return on investment. As desired<br />

by DDCWSA, ChoiceConnect was seamlessly integrated<br />

into the utility’s existing billing software and system<br />

deployment was professionally managed.<br />

Camp advises: “Know your topography and how it may<br />

impact a meter-reading system. Let the vendor demonstrate<br />

and manage the software integration within the<br />

confines of your legacy or planned IT system. Leverage<br />

the wide variety of data collection devices at your disposal,<br />

including handhelds, drive-by automated meter<br />

reading (AMR) and fixed network communications. Make<br />

sure not only to accurately collect your data but also let<br />

software empower your utility to analyze it for the benefit<br />

of you and your customers.”<br />

Peeling the AMI “onion” layer by layer could make you<br />

cry; however, each layer that is peeled away can also help<br />

you discover more than you knew before. What you think<br />

you want actually may not be the right solution for your<br />

utility. Thinking outside of the box often reveals the best<br />

solutions. In DDCWSA’s case, a hybrid system was just<br />

what they needed.<br />

Pam Malone is Vice President, Strategic Development, for Itron.<br />

November/December 2011<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 27


Horizontal<br />

Directional<br />

Drilling:<br />

Enabling Innovative Approaches to<br />

<strong>Water</strong> Supply Challenges<br />

By Michael Lubrecht and Dan Ombalski<br />

The technology for extracting<br />

groundwater from subsurface<br />

resources hasn’t advanced<br />

appreciably since drillers abandoned<br />

shovels and buckets for mechanized<br />

well drilling rigs. Shovels gave<br />

way to cable tool rigs in the early 1800s<br />

and mechanical improvements incrementally<br />

led to current well-drilling<br />

technology, typically rotary drive rigs<br />

with automated casing drivers. Despite<br />

mechanic al advancements in advancing<br />

a borehole, however, the extraction<br />

technology has remained the same:<br />

drilling and casing a vertical bore that<br />

intercepts a water table. Even the venerable<br />

cable tool rig is still used for this<br />

purpose in some locales.<br />

Meanwhile, a relatively new technology,<br />

shallow horizontal directional drilling<br />

(HDD) for utility and pipeline<br />

installation, has evolved rapidly over<br />

the past three decades. Unlike the deep<br />

directional bores used in oil exploration<br />

and production, which can extend thousands<br />

of feet deep, shallow HDD is<br />

performed from just a few feet to a few<br />

hundred feet beneath the ground surface.<br />

Shallow HDD bores typically are<br />

started from the surface at an acute<br />

angle, and are guided to a subsurface or<br />

remote surface target using sophisticated<br />

electronics packages that enable the<br />

driller to navigate and steer the drill<br />

along a desired path.<br />

In the mid 1990s, this technology<br />

was adapted to install wells for the<br />

remediation of contaminated industrial<br />

sites, military bases, gas stations and<br />

other locations. The shallow depth<br />

capabilities, combined with the ability<br />

to steer a bore beneath obstacles along<br />

a predetermined path has greatly<br />

expanded the ability to access contaminated<br />

zones with appropriate treatment<br />

technologies.<br />

More recently, HDD has been applied<br />

to water resources development projects,<br />

with promising results. Vertical<br />

drilling is likely to remain a mainstay<br />

of the water industry, but HDD can be<br />

advantageous in some cases. This article<br />

explores some of the more challenging<br />

water development scenarios,<br />

and how HDD can provide a viable<br />

solution.<br />

Common to all of these water<br />

resources solutions are their utilization<br />

of HDD’s key benefits. They require<br />

only limited surface disruption — from<br />

a single, relatively small construction<br />

footprint, screens may be set tens of<br />

feet deep, while extending laterally for<br />

hundreds of feet in length, with no<br />

other effect on the surface environment.<br />

For wells that extend beneath<br />

fragile or protected ecosystems, this<br />

means that no roads must be constructed<br />

for installation or ongoing access<br />

for maintenance.<br />

Another advantage of horizontal<br />

wells is their favorable screen to riser<br />

ratio. A horizontal well only needs to<br />

penetrate the overburden above the<br />

aquifer once (twice in the case of a<br />

double-ended well). This surface penetration<br />

is offset between four and five<br />

times the target depth of the well.<br />

Once at depth however, the length of<br />

the screened interval is only limited by<br />

the rig capacity and local geology.<br />

A shallow, 50-foot deep well takes<br />

approximately 200 feet to achieve the<br />

target depth, but may be hundreds or<br />

even in excess of 1,500 feet in length.<br />

In contrast, a network of vertical wells<br />

drilled to intercept the same volume of<br />

aquifer would require multiple rig setups,<br />

multiple wellheads, and hundreds<br />

of feet of non-productive riser casing.<br />

Thin, Shallow or<br />

Perched Aquifers<br />

Many coastal or island communities,<br />

and some desert municipalities, must<br />

tap thin, shallow or vertically constrained<br />

perched aquifers for their water<br />

supply. In some locales, the best groundwater<br />

reserves are situated in thin, sinuous<br />

buried stream channels. Production<br />

of viable quantities of water from these<br />

formations can be challenging with vertical<br />

wells — drawdown at even minimal<br />

pumping rates quickly exhausts the<br />

supply adjacent to the well, with the<br />

potential for damaging the formation.<br />

Multiple wells, spaced at intervals and<br />

pumped at lower rates may provide a<br />

more continuous water supply, but are<br />

costly to install and maintain. In coastal<br />

or island communities, saltwater intrusion<br />

is a classic problem — overpumping<br />

of the “bubble” of potable water<br />

floating above a brackish or saline layer<br />

can cause irreparable damage through<br />

saltwater intrusion.<br />

In contrast, horizontal wells are ideally<br />

suited for these aquifers. A single<br />

horizontal well may be several hundred,<br />

up to a couple thousand feet<br />

long, intersecting the aquifer for most<br />

of its length and spreading the cone of<br />

depression along the full length of<br />

28 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


screen. The ratio of productive,<br />

screened well to unscreened riser casing<br />

is many times that of a single vertical<br />

well, and even more favorable compared<br />

to a network of vertical wells.<br />

Further, the horizontal well requires<br />

only one pump, and limited transfer<br />

piping to convey the water to distribution<br />

or treatment facilities. A vertical<br />

well network contains not only a high<br />

ratio of non-screened, non-productive<br />

casing, but each well requires its own<br />

pump, and the water must be conveyed<br />

to a central facility with multiple<br />

trenched pipelines.<br />

Groundwater in<br />

Connection to Surface<br />

<strong>Water</strong><br />

For communities adjacent to large<br />

bodies of surface water, such as lakes,<br />

reservoirs or rivers, water may be<br />

obtained directly from the body, or from<br />

multiple shallow wells installed along<br />

the shoreline. More sophisticated solutions<br />

include the Ranney collector type<br />

of well, with radial, horizontal laterals<br />

connecting to a central caisson.<br />

Fisheries agencies are becoming<br />

more demanding in the construction<br />

and ongoing maintenance of intake<br />

weirs that directly pull water from rivers<br />

and lakes, as protection of fish<br />

habitat is becoming an increasingly<br />

contentious issue. These structures are<br />

also prone to damage from storms and<br />

flooding. Vertical wells along shorelines<br />

have similar issues to the wells in<br />

thin aquifers noted above, in that their<br />

productive zones are limited and it<br />

usually requires many wells to achieve<br />

useable volumes. The Ranney collector<br />

system, first developed in the 1930s, is<br />

an effective technology to capture<br />

groundwater in connection with surface<br />

water, but the systems themselves<br />

are generally expensive to construct,<br />

with costs often exceeding $1 million<br />

for a relatively modest system.<br />

Horizontal directional drilling provides<br />

an elegant solution in these scenarios.<br />

One or more horizontal wells<br />

can be drilled from the surface, extending<br />

into the alluvial deposits or shallow<br />

sediments beneath surface water<br />

bodies. These wells take full advantage<br />

of the natural filtering capacity of the<br />

in situ sand and gravel, and protect<br />

the intake from flood damage or scouring.<br />

If additional capacity is required,<br />

multiple radial horizontal wells that<br />

gravity-drain to a central, vertical wet<br />

well can be installed. A Ranney collector<br />

system requires manned jack-andbore<br />

operations at the bottom of the<br />

caisson, with attendant requirements<br />

for dewatering and accommodation<br />

for worker safety. In contrast, since all<br />

of the work for a radial HDD collector<br />

is performed from the surface, the wet<br />

well can be of considerably smaller<br />

diameter than a Ranney collector caisson<br />

and none of the risks and costs of<br />

manned operations at depth are<br />

incurred.<br />

Fractured Bedrock in<br />

Mountainous Regions<br />

Mountainous terrain can pose both<br />

construction and operational challenges<br />

for water suppliers. On steep, sometimes<br />

unstable slopes it can be difficult<br />

to safely place a vertical drill rig in a<br />

position to effectively intercept waterbearing<br />

formations. In some fractured<br />

bedrock aquifers, the water-bearing<br />

joints run vertically, exacerbating the<br />

problem. In other areas, water production<br />

is from landslide masses that are<br />

relatively unstable. In more remote<br />

locations, getting power to the site to<br />

operate pumps is problematic.<br />

Horizontal directional drilling can<br />

provide a solution to many of these<br />

challenges. New advances in steerable<br />

air hammers has enabled the installation<br />

of wells in extremely difficult drilling<br />

conditions in fractured bedrock,<br />

landslide materials and buried talus.<br />

The ability to design a bore path that<br />

intersects known fracture systems can<br />

enhance water recovery. Further, horizontal<br />

directional wells can be drilled<br />

as gravity systems, requiring no pumps<br />

for operation. For smaller water systems<br />

that rely on natural springs as a<br />

source, HDD can be an excellent option<br />

to enhance recovery and maximize<br />

utilization of water rights.<br />

Aquifer Recharge and<br />

Brine Infiltration<br />

Point source discharges of potable<br />

water from water treatment systems are<br />

highly regulated and usually difficult<br />

to site. These include outfalls from<br />

municipal sewage plants, or discharges<br />

from facilities for treating industrial or<br />

remediation site wastewater. Permitting<br />

and design of such discharges must<br />

consider site ecology and wildlife<br />

impacts, erosion control, protection of<br />

the discharge structure from flooding<br />

or severe weather damage, and a host<br />

of other factors.<br />

Subsurface discharge of treated water<br />

can simplify permitting and design<br />

considerations. Horizontal wells can<br />

extend for hundreds of feet within a<br />

receptive aquifer, and can be designed<br />

to disperse high water volumes with<br />

slight impact to surface activities or<br />

ecosystems.<br />

At Sand City, Calif., a 750-foot horizontal<br />

infiltration well installed parallel<br />

to the beach and 50 feet below the<br />

low tide mark handles the entire waste<br />

brine stream from the city’s 300 acrefoot<br />

brackish water desalination plant.<br />

The well is drilled beneath protected<br />

Monterey Bay coastal dunes, which<br />

serve as habitat for endangered bird<br />

and reptile species. The horizontal well<br />

enables the waste brine (at nearly natural<br />

salinity as discharged from the<br />

plant) to mix with natural seawater<br />

beneath the sea floor before entering<br />

the bay, eliminating ecological issues<br />

related to potential salinity imbalances,<br />

and requiring no outfall structures,<br />

which were prohibited in the area.<br />

Conclusion<br />

Although vertical well drilling is a<br />

proven method to tap groundwater<br />

resources, and will continue to be a<br />

standard technology for water supply,<br />

HDD has made significant advances<br />

for water supply in unusual or difficult<br />

scenarios. If conventional drilling<br />

isn’t the answer to your water<br />

supply problem, lateral thinking may<br />

lead to better results.<br />

Michael Lubrecht, L.G., is a Senior Geologist<br />

and Dan Ombalski, PG, is President of<br />

Directed Technologies Drilling.<br />

November/December 2011 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 29


Protecting Our Future by Making Advanced Asset<br />

<strong>Management</strong> Decisions<br />

By Gregory M. Baird<br />

America’s economic dominance as a world power over the<br />

past several decades has been based on the strength and<br />

investment in its critical infrastructure. Without the infrastructure<br />

networks of drinking water systems, wastewater,<br />

ground transportation, waterways, oil, gas, electric, airports and<br />

seaports, our superpower engine of manufacturing both goods<br />

and services could never have been achieved. These early investments<br />

have built the foundation of our current expectations of a<br />

modern standard of living and have played a substantial role in<br />

the sustained prosperity and quality of life of our country.<br />

These complicated infrastructure networks are now more interdependent<br />

than ever before. Urbanization has layered these separate<br />

systems in an intensive public works infrastructure web. Each valued<br />

network (water, sewer, electric, etc.), each with its own unique purpose<br />

and critical functions, has different repair and renewal costs<br />

and timing requirements. Manual processes and individual human<br />

mental storage of these challenging relationships of risk and cost<br />

tradeoffs no longer meets the needs of public work and utility<br />

departments for municipal or private utility management companies.<br />

We are currently in a dynamic period of shifting “data rich and<br />

information poor” decision making to a more knowledgeable and<br />

discernible era of effective cost management for all assets.<br />

Our Challenging Future<br />

In order to make an organized transition from post-World War<br />

II practices to the emerging 21 st century of infrastructure technology<br />

and best practices, an approach to managing all of our capital<br />

assets is needed. At some point, an Excel spreadsheet just does not<br />

cut it for hundreds of thousands of assets worth billions of dollars.<br />

In the United States, the East Coast is lighting up with pipe failures<br />

due to both age and corrosion. <strong>Infrastructure</strong> intensive<br />

operations like water, wastewater and drainage with long-term<br />

assets coming to the end of their useful lives are presenting an<br />

overwhelming flood of funding and affordability issues. Likewise,<br />

the energy sector of oil, gas, electric and hydroelectric faces<br />

renewal issues. Unmanaged and un-forecasted, these basic systems<br />

will fail and utilities will be forced to restore service through<br />

unplanned emergency repairs requiring higher rates for customers.<br />

Public officials should protect the future affordability of these<br />

basic services by requiring infrastructure management best practices.<br />

Advanced asset management (AM) concepts, software tools<br />

and techniques that focus on managing cost-effective sustained<br />

performance to the customer at the lowest life-cycle cost and at an<br />

acceptable level of risk to the organization is the ultimate answer.<br />

Asset <strong>Management</strong> is the Answer<br />

In 2010, the New Jersey Clean <strong>Water</strong> Council, which has the<br />

statutory function of advising the Commissioner of the Department<br />

of Environmental Protection regarding issues related to clean<br />

water, explained that the New Jersey Section of the American<br />

Society of Civil Engineers (ASCE) in 2007 gave grades of D to<br />

wastewater utilities and C to drinking water utilities in New Jersey.<br />

The Council understood that for New Jersey to maintain a viable<br />

economy with a sound environment it must begin managing its<br />

infrastructure in a manner that produces the lowest life-cycle cost.<br />

The Council further believed that deferred maintenance (“run to<br />

failure”) might hold rates down in the short term but inevitably<br />

increases long-term costs and causes service disruptions that harm<br />

the customers and the environment, and is therefore self-defeating.<br />

The Council proposed that asset management, utility rates<br />

and utility accounting should be used to achieve sustainable utility<br />

functions and finances that minimize long-term costs.<br />

Managing Long-term Costs<br />

Communities put their economy and environment at risk when<br />

they ignore infrastructure asset management. The basic component<br />

of an asset management program includes the computerized maintenance<br />

management system (CMMS), but a work order system<br />

alone needs additional asset management software to take it to the<br />

next level. There are many choices of various types of asset management<br />

planning software, but finding one that is truly advanced and<br />

embeds the financial analysis and reporting component for all<br />

assets, across all asset types and all utilities, can be more difficult.<br />

The basic steps and components of asset management software<br />

include:<br />

1. Collecting and organizing tangible asset data from a broad range<br />

of paper and electronic sources to create the asset registry (AR).<br />

2. Integrating disparate database systems including GIS and financial<br />

packages for centralized tangible capital asset data manipulation<br />

that develops an enterprise inventory (EI).<br />

3. Performing integrated strategic short-term capital asset planning<br />

and maintenance management scheduling as part of the<br />

decision support (DS) process.<br />

4. Performing integrated long range, 10- to 100-year, capital asset<br />

planning and maintenance management forecasting as part of<br />

the decision support (DS) process.<br />

5. Tracking capital projects from inception through design and<br />

approvals all the way to construction as part of a capital projects<br />

(CP) procedure.<br />

Decision Support Asset <strong>Management</strong><br />

Software<br />

A best-in-class of advanced asset management decision support<br />

software for all assets comes from the Canadian infrastructure marketplace,<br />

which as a whole seems to be recognizing the neglect of its<br />

long-term infrastructure funding and embracing the application of<br />

best practice investment solutions. RIVA Modeling, a Toronto-based<br />

company, offers real-time asset valuation analysis decision support<br />

software that is extremely scalable to support an all assets management<br />

program roll out while embedding baseline financial performance<br />

monitoring. With successful integrations with SAP, CityWorks<br />

Computerized Maintenance <strong>Management</strong>, financial systems and<br />

other vendors combined with ESRI or Intergraph GIS, RIVA offers<br />

solutions to the most complicated layers of repair, replacement and<br />

renewal decision-making over a 10- to 100-year planning horizon.<br />

RIVA is a web-based client-server application that can interface<br />

with most common applications. The data can come from any<br />

ODBC-compliant source, so the user can leverage existing data and<br />

pull data from other databases to create a central asset registry or<br />

inventory of all assets and their attributes, eliminating the extra<br />

costs of separately maintained and isolated asset databases. The<br />

advanced modeling capabilities are used for asset valuation, estimation<br />

of deferred maintenance, condition assessment, estimating<br />

remaining service life and for the prioritization of maintenance and<br />

renewal programs. These capabilities have offered Canadian utilities<br />

the ability to handle PSAB 3150 infrastructure reporting<br />

requirements, which are stricter than GASB34and fit nicely with new<br />

international PAS 55 and ISO infrastructure policy developments.<br />

30 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


There are common issues across utilities including electrical generation,<br />

transmission and distribution, water, wastewater and sanitary.<br />

Utilities must maintain service levels regardless of credit and<br />

economic crisis, manage regulatory risks and respond to political<br />

objectives. Ultimately, the ability to continue meeting increasing<br />

demands will depend on good stewardship of the infrastructure<br />

portfolio. Utilities need the ability through advanced decision support<br />

software to understand costs, risk and renewal prioritization in<br />

the context of their budget and service level requirements.<br />

The Corporate Approach<br />

The management of physical assets and infrastructure is continuing<br />

to emerge as a key corporate objective. Top level executive<br />

support is critical because it offers integration with tactical and<br />

strategic planning throughout the entire organization to meet<br />

service levels and increasing demand from consumers.<br />

Asset management needs to be supported from a corporate<br />

level to leverage the cost savings of the layered urbanized systems<br />

and not just be a best practice. Toronto, Ottawa, Burlington,<br />

Prince George and other municipalities in Canada understand the<br />

concept. In this context, utilities that mitigate risks to their operations<br />

are proving to be more efficient in managing capital and<br />

operational expenditures. The City of Calgary is implementing<br />

this concept as it plans to fully integrate RIVA across the entire<br />

organization, first, in the utilities then expanding to roads, transit,<br />

parks, rec, corporate properties, information technology, etc.<br />

Empowering <strong>Infrastructure</strong> Asset<br />

Managers<br />

Asset managers require the functionality of integrating across different<br />

asset types at the street view, to make important decisions at<br />

a user defined level (block by block) with a rules-based approach.<br />

This effort offers the ability of prioritizing assets like water mains<br />

and allowing the timing of the investment to advance or defer or<br />

align water, sewer, storm, electric, road repair and replacement programs.<br />

An upgraded Formula Builder tool leverages the probabilistic<br />

modeling capability of the software to create, change and test trial<br />

models and calculations. It is this type of flexibility that allows asset<br />

managers to compare various asset management scenarios with different<br />

priorities or even asset deterioration curves. As new technologies<br />

develop to improve asset maintenance and repair and replacement<br />

activities it is imperative to have decision support software in<br />

place to accurately evaluate the different options available cast<br />

against a wide range of interdependent assets.<br />

Benefiting Financial Asset Managers<br />

As more capital is required to fund future repair and replacement<br />

programs and as the credit monitoring services and the financial<br />

markets continue to demonstrate signs of uncertainty, investors in<br />

both public (through traditional tax exempt bonds) and private<br />

utilities will demand a higher level of operational cost-effectiveness<br />

and asset management planning. Decision support asset management<br />

software will be required to demonstrate and report the financial<br />

analysis of the asset intensive activities. The results will also<br />

become the basis for tax or rate increase justifications. The power of<br />

these tools will also enable utility infrastructure fund managers the<br />

ability to better forecast earning yields and rate of returns.<br />

Asset Register Development<br />

The RIVA modules offer quick asset inventory and valuation at<br />

the user defined hierarchal structure and level of detail requested.<br />

The user friendly views can drill down from a city to a street level<br />

and the inventory of assets can be viewed both geographically and<br />

by asset category at every level. The valuation process applies economic<br />

factors to calculate the asset values. This data is critical in<br />

rolling up costs to demonstrate long-term infrastructure funding<br />

requirements against any projected budget shortfalls.<br />

Effectively Managing Deferred<br />

Maintenance<br />

The quintessential nature of infrastructure needs and constrained<br />

budgets makes deferred maintenance a reality. RIVA has<br />

a deferred maintenance user defined function to calculate the<br />

level of deference based on a set of events triggered by the user<br />

defined best practice. Modeling these scenarios creates the visible<br />

impact of the maintenance backlog against various user<br />

defined financial and economic factors and assumptions. The<br />

financial results develop a snapshot of long-term funding issues.<br />

Condition Assessment Flexibility<br />

RIVA has the ability to import condition assessment data from<br />

other sources and connect these data attributes to an asset at any<br />

level of detail. RIVA allows for almost any condition assessment<br />

tool or scoring metric to be used in RIVA for advanced analysis<br />

and scenario testing. Prioritizing takes effect as remaining service<br />

life and condition assessment data are used with maintenance<br />

and repair strategies while monitoring the bottom dollar impact<br />

of different scenario outcomes. The result of an advanced asset<br />

management program should be to build a prioritized, full lifecycle<br />

plan for maintaining and replacing any type of asset while<br />

offering the capability of including the organization’s best practices<br />

of sustaining those assets for the next 30 to 100 years. This<br />

process should include the forecasts of the costs, condition, service<br />

level and risk of the assets.<br />

Implementation Options<br />

As a best-in-class, RIVA offers tools to fit the organization’s recommended<br />

work plans into the actual budget and demonstrate the<br />

effect on condition, service level and risk with state-of-the-art graphing<br />

and map views. This functionality is offered for large agencies<br />

with in-house asset databases, GIS and extensive financial packages<br />

with an enterprise version or even hosted by RIVA “on demand” for<br />

municipalities with populations under 50,000 and corporations with<br />

fewer than 25,000 assets. The user configures RIVA to suit his or her<br />

requirements, thus enhancing and complementing the capabilities<br />

of existing asset management tools already used by the organization.<br />

A useful feature of RIVA is that it implements default models<br />

and processes that would allow users to begin implementing all<br />

features of the application with minimal starting data.<br />

Looking to the Future<br />

As with most software acquisition processes, understanding the<br />

various features and your own asset management best practices,<br />

business processes, financial reporting needs and requirements are<br />

a first step in developing the functional requirements. It is advisable<br />

to always schedule a demonstration well in advance of a formal<br />

procurement process in order to see what the future may hold.<br />

As utilities move forward with asset management programs, best<br />

practices will be standardized and more accurate benchmarking<br />

will become commonplace. All organizations with physical assets<br />

have an obligation to track and maintain those public assets. All<br />

municipalities and utilities are currently on a timeline of how<br />

sophisticated their asset management practices are. The approaching<br />

motivation to implement formal corporate asset management<br />

programs will occur as time progresses and the lack of asset planning<br />

catches up to the community public view.<br />

Gregory M. Baird is Managing Director and Chief Financial<br />

Officer of AWI “Aging <strong>Water</strong> <strong>Infrastructure</strong>” Consulting and can be<br />

reached at Greg.M.Baird@Aging<strong>Water</strong><strong>Infrastructure</strong>.org.<br />

November/December 2011<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 31


Public-private Partnerships:<br />

Exploring Synergies in the U.S. and Canadian <strong>Water</strong> Markets<br />

By Bob Bailey and Peter Nicol<br />

Public-private partnerships (P3s) in the water sector are used increasingly as<br />

a means for addressing infrastructure around the globe. In fact, government<br />

agencies have been created in the United Kingdom, Australia, across Europe<br />

and in Canada to support various forms of P3 implementation. Currently,<br />

Canada is seeing particularly strong growth in P3s. While P3s have been<br />

implemented in Canada for years, in 2009 the federal government created a<br />

the $1.25 billion P3 Canada Fund, which has contributed to increased use of<br />

P3s for infrastructure delivery. To date, the Canadian P3 model has been<br />

used for successful delivery of many health care, transportation, transit and<br />

building projects, and several water P3s are in the planning stage.<br />

32 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


P3 Implementation in Canada<br />

Public-private partnerships are business relationships<br />

between public and private entities that offer alternatives<br />

to traditional means of delivering service. The potential<br />

benefits of using P3s include: gaining access to privatesector<br />

capital and expertise; improving efficiency and<br />

life-cycle cost proformas; completing projects faster than<br />

with traditional models; and optimizing construction and<br />

performance risk-sharing. In the Canadian P3 model,<br />

funds for infrastructure projects are generally guaranteed<br />

by the government, making the risk-balance structure<br />

attractive to private companies and allowing the government<br />

to spread capital spending over a number of years.<br />

The private entity usually is not compensated until construction<br />

is complete; the onus of the construction performance<br />

is on the design-builder; and the private entity<br />

receives the balance of its payment from the government<br />

over a defined period during which the private company<br />

provides operations and maintenance for the project.<br />

With Canadian transportation projects, P3s have been<br />

implemented through the design, build, finance and<br />

maintain model, wherein the capital cost is paid out over<br />

a 10- to 20-year period. The Canadian P3 model is well<br />

established, is well funded, and has proven successes in<br />

transportation and healthcare infrastructure.<br />

CH2M HILL’s P3 experience in Canada includes partnering<br />

on numerous P3 contracts for transit and transportation<br />

projects, and work on the planning stages for<br />

water P3s. As Canadian water P3s move from planning<br />

to implementation, they are expected to set precedents<br />

for the evolution of P3s in the United States.<br />

P3 Opportunities and Challenges<br />

In both the Canadian and U.S. water markets, P3s can<br />

present utilities with opportunities and challenges. The<br />

challenges often involve real or perceived threats to the<br />

basic institutions that have served customers well over the<br />

years. In the United States, for instance, great success has<br />

been achieved with design, build and operate (DBO) projects<br />

for water infrastructure. In Canada, however, resistance<br />

to private-sector operation of water infrastructure is<br />

an issue that must be addressed for water P3s, as long-term<br />

operations and maintenance is an essential element of the<br />

P3 model.<br />

If P3s in North America are to be successful, it is important<br />

to recognize the unique aspects of water service delivery<br />

and risk, such as:<br />

• Project definition takes considerable engineering<br />

investment<br />

<br />

Owners must maintain control over specifications and<br />

technology selection<br />

<br />

Performance requirements are unique to each project<br />

• Technology solutions can be complex and site-specific<br />

<br />

<strong>Water</strong> facilities are unique<br />

Technology solutions must be carefully considered;<br />

for example, defining reliable treatment<br />

processes requires extensive water quality data,<br />

and an understanding of how raw water quality<br />

can change over time<br />

• Demonstrating performance takes time and expertise<br />

<br />

Developing appropriate metrics can be challenging<br />

<br />

Asset management and preventive maintenance are<br />

critical, and expectations must be carefully defined<br />

<br />

Operator skill is critical; control of operations is<br />

essential<br />

<br />

Seasonal adjustments are considerable<br />

<br />

Performance criteria are a blend of short-term “pass/<br />

fail” criteria and long-term averages<br />

A useful P3 model may be a hybrid of Canadian and<br />

U.S. delivery approaches, wherein the U.S. DBO model<br />

is applied in Canada and elements of the Canadian<br />

finance model are applied in the United States.<br />

Though government support is by no means required<br />

for the successful implementation of water P3s, the U.S.<br />

government is considering ways to approach funding for<br />

infrastructure projects. There are a variety of federallevel<br />

policy proposals currently under consideration<br />

aimed at increasing infrastructure investment and,<br />

thereby, creating jobs. The proposal most frequently<br />

cited by the Obama administration is an “infrastructure<br />

bank” (IBank), whereby a relatively modest federal<br />

investment of $10 billion would yield issue loans and<br />

loan guarantees to eligible water, transportation and<br />

energy projects of up to 50 percent of a project’s total<br />

cost. Loans would use approximately the same interest<br />

rate as U.S. Treasury securities and could be extended<br />

up to 35 years. Congress is deliberating on the president’s<br />

“American Jobs Act,” which includes the IBank<br />

proposal and a number of other ideas.<br />

While it is receiving less attention on the national<br />

radar, private activity bond legislation is another vehicle<br />

that would leverage a minimal cost by the federal government<br />

to create greater private sector investment and<br />

job growth in water infrastructure. Both ideas are bipartisan<br />

and each deserves serious consideration as the U.S.<br />

Congress works to keep pace with other governments in<br />

a global marketplace.<br />

However the P3 model evolves, we will continue to<br />

work with clients to deliver work under a variety of contractual<br />

and organizational models. In evaluating delivery<br />

alternatives, the optimal alternative is the one that<br />

best meets stakeholders’ goals for that project. The wide<br />

variety of alternative delivery methods offer owners<br />

choices that are good for our industry; every delivery<br />

method has its place on the continuum.<br />

Bob Bailey is the President of the <strong>Water</strong> Business Group for<br />

CH2M Hill. In this role, he has worldwide responsibility for<br />

the development, project performance, and risk management<br />

of all CH2M Hill water, wastewater and water resource<br />

projects.<br />

Peter Nicol is the Global Business Development Director for<br />

CH2M Hill’s <strong>Water</strong> Business Group. Nicol is a Professional<br />

Engineer with 30 years of experience, and has played key<br />

roles on some of the most significant water and wastewater<br />

treatment projects in Canada.<br />

November/December 2011 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 33


Teaming Up for<br />

<strong>Water</strong> Delivery<br />

A<br />

new 120 million-gallons-per-day (mgd) water<br />

treatment plant, among the world’s most sophisticated<br />

water treatment facilities, is now providing<br />

Tampa Bay <strong>Water</strong> customers with drinking water<br />

that exceeds federal and state drinking water quality standards.<br />

Thanks to an innovative approach taken by Tampa<br />

Bay <strong>Water</strong>, a public regional wholesale water provider, the<br />

new plant – designed, built and operated by Veolia <strong>Water</strong><br />

North America – is the largest design-build-operate (DBO)<br />

drinking water project in U.S. history, representing a<br />

potential model for other cities facing growing populations,<br />

tight budgets and water resource challenges.<br />

“We’re delighted that our partnership completed the<br />

new Tampa Bay <strong>Water</strong> Regional Surface <strong>Water</strong> Treatment<br />

Plant on time and under budget,” said Jerry Seeber, general<br />

manager of Tampa Bay <strong>Water</strong>. “This new facility is the<br />

backbone of our regional water service to more than 2.4<br />

million people. By every measure, whether water quality,<br />

cost or service, this project is a success.”<br />

Economic Benefits<br />

The cost savings from the project’s first phase was<br />

substantial – $80 million on what was originally projected<br />

to be a $200 million budget by Tampa Bay <strong>Water</strong>’s<br />

advisors. The speed of the project delivery by Veolia<br />

<strong>Water</strong> North America and its partners was escalated due<br />

to the unified approach offered by the DBO model.<br />

Guarantees for water quality, water quantity, project<br />

timelines, and operations and facility maintenance were<br />

established that are otherwise not available without private-sector<br />

involvement. Tampa Bay <strong>Water</strong> also reduced<br />

its own administrative and consulting costs through a<br />

single procurement.<br />

“By developing a Master <strong>Water</strong> Plan and using an alternative<br />

delivery approach, Tampa Bay <strong>Water</strong> has done what<br />

so many communities should be doing and yet have only<br />

begun to study, to provide a cost-effective, dependable and<br />

sustainable approach to water resources and water service<br />

for citizens and businesses,” said Laurent Auguste, president<br />

and CEO of Veolia <strong>Water</strong> Americas.<br />

Environmental Benefits<br />

The project also offers extensive environmental benefits.<br />

The region was previously dependent on groundwater<br />

supplies, which, when coupled with a rapidly growing<br />

population, was not sustainable and resulted in damage<br />

to natural ecosystems.<br />

Because of the substantial variability in quality of the<br />

region’s source water, Tampa Bay <strong>Water</strong> specifically selected<br />

Veolia <strong>Water</strong> Solutions & Technologies’ patented ACTIFLO<br />

clarification process, which is designed to treat water with<br />

high variability. The technology’s added benefit was a much<br />

smaller construction footprint. As a result, a hydrobiological<br />

monitoring program, which measures hydrological and biological<br />

conditions in area rivers and the local canal, has<br />

shown use of these source waters is sustainable.<br />

“Well-managed communities continue to attract new<br />

people and economic investment, but they also seek to<br />

maintain a good quality of life,” said Auguste. “This creates<br />

additional pressure on water resources. This pressure<br />

represents an exceptional challenge for many cities, and<br />

will continue to be a challenge for years to come. Solving<br />

34 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


Tampa Bay <strong>Water</strong>, Veolia <strong>Water</strong> North America<br />

Complete Largest Design-Build-Operate <strong>Water</strong><br />

Treatment Facility in U.S. History<br />

these water resource issues requires smart, creative models<br />

and creative approaches.”<br />

A Public-Private Partnership<br />

The relationship with Tampa Bay <strong>Water</strong> goes back to 2000<br />

when Veolia <strong>Water</strong> North America was chosen through a<br />

holistic procurement approach that required companies to<br />

form teams (or consortiums) that merged all engineering,<br />

construction and operational disciplines. The Veolia <strong>Water</strong><br />

North America bid team, which included Camp Dresser &<br />

McKee as well as Clark Construction, was selected in April<br />

2000 to design, build and operate (DBO) the publicly<br />

owned facility, which was completed in September 2002.<br />

This approach represented a significant deviation from<br />

the norm, and is the reason for Tampa Bay <strong>Water</strong>’s success.<br />

Typically, cities engage in single-step procurements.<br />

In these arrangements, companies first bid on engineering<br />

services, then on construction services and finally, on<br />

operational services should the municipality choose to<br />

engage in private-sector operational management.<br />

The DBO process chosen by Tampa Bay <strong>Water</strong> streamlined<br />

this project delivery process to the public’s immediate<br />

benefit. The process enabled greater technology, innovation,<br />

speed and flexibility among the bidding entities,<br />

because it set the outcome as more important than any<br />

prescribed methodology. High water quality at the lowest<br />

life-cycle costs could thus be achieved because Veolia <strong>Water</strong><br />

could bring all project disciplines to the table to establish<br />

integrated solutions and greater efficiency.<br />

Seeber stated that after the completion of the first<br />

phase of Veolia’s work, Tampa Bay <strong>Water</strong> member governments<br />

and their customers were provided with higher<br />

guaranteed water quality and project enhancements<br />

at an affordable, cost-effective price.<br />

In 2007, after five years of operational results, Tampa<br />

Bay <strong>Water</strong>’s board of directors unanimously approved an<br />

expansion of the Brandon, Fla., treatment facility, making<br />

it the nation’s largest DBO project, sharing the honor<br />

with Seattle Public Utilities’ 120-mgd Tolt Treatment<br />

Facility. The project’s second phase included an openbook<br />

accounting methodology to ensure transparency.<br />

“Who better to manage a facility than those with<br />

operational expertise who also understand and are<br />

responsible for how the treatment process was designed<br />

and the facility constructed” explained Seeber.<br />

The Tampa Bay <strong>Water</strong> Regional Surface <strong>Water</strong><br />

Treatment Plant blends source water from the Alafia<br />

River, the Tampa Bypass Canal, the Hillsborough River<br />

and the C.W. Bill Young Regional Reservoir, delivering<br />

raw water through a 72-inch diameter pipeline to the<br />

treatment plant process equipment.<br />

Treatment elements utilize a multi-barrier process<br />

including ballasted flocculation (ACTIFLO), ozonation,<br />

filtration through granular activated carbon gravity filters,<br />

disinfection, chemical dosing and solids processing.<br />

Adjacent to the regional water treatment plant are finished-water<br />

storage tanks and a pump station that supplies<br />

water to the Tampa Bay <strong>Water</strong> member governments’<br />

distribution systems.<br />

Auguste added, “Our employees are proud of the trust<br />

that has been placed in us and well recognize that this trust<br />

needs to be earned every day.”<br />

November/December 2011<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 35


Protective Coating<br />

for Wastewater<br />

Facility Concrete<br />

Surfaces —<br />

Best Practices<br />

Coatings can be an efficient and cost-effective<br />

technical solution for protecting and renewing<br />

sanitary sewer tanks, pipelines and appurtenances.<br />

Asset management principles and practices<br />

require wastewater utilities to look beyond the initial<br />

cost and focus more on long-term solutions and lower<br />

life-cycle costs. Premature failures of coatings have generated<br />

much concern regarding true life-cycle costs.<br />

Concrete coating systems for wastewater service must<br />

typically withstand immersion, harsh chemicals, abrasion,<br />

low pH and other challenging conditions. Premature<br />

coating failure is significantly higher with concrete than<br />

with steel, for example, due to several additional variables<br />

including moisture content, surface strength, surface<br />

irregularity, alkalinity, composition and porosity,<br />

which results in a difficult surface to effectively coat and<br />

protect. Other factors include surface preparation and<br />

coating system mixing, application and curing practices,<br />

to name only a few.<br />

Some of the most common concrete coating system<br />

defects and failure mechanisms in wastewater applications<br />

are:<br />

• Osmotic blistering<br />

• Pinholes and voids<br />

• Peeling<br />

These failures or defects will typically lead to premature<br />

concrete damage, compromising structure integrity<br />

and personnel safety and necessitating costly repair and<br />

premature infrastructure replacement.<br />

Many concrete coating products for wastewater service<br />

exist in the marketplace and new products are entering<br />

the market frequently. This paper provides a review of the<br />

importance of product and process validation and presents<br />

recommendations and lessons learned in specifying,<br />

applying and utilizing these products over the past 20<br />

years.<br />

By Jeff Maxcy and Tom Iseley<br />

Product Evaluation and Validation<br />

Product evaluation and validation is not a new concept,<br />

and has been demonstrated to be an important factor in<br />

achieving success. It provides the benefit of using materials<br />

that have already proven to be effective in similar<br />

applications.<br />

Owner representatives and consulting engineers have<br />

for many years realized the importance of reviewing new<br />

products and processes. Most of the larger utilities with<br />

support from consultants have developed product review<br />

committees (PRCs). However, small- to medium-size utilities<br />

tend to have no formal process. Even for utilities with<br />

PRCs, the review, validation and acceptance/rejection<br />

tend to vary significantly from agency to agency. Often<br />

this process is time-consuming, awkward, inconsistent,<br />

subject to political influence and expensive. This wide<br />

variance in how decisions are made to accept/reject products<br />

and processes results in major challenges and<br />

expense for the technical solution providers.<br />

In 2009, the City of Indianapolis and the Construction<br />

Engineering <strong>Management</strong> Technology (CEMT) program<br />

at the Purdue School of Engineering and Technology at<br />

IUPUI entered into a collaborative agreement that resulted<br />

in development of a 10-step new product review process.<br />

To date, more than 15 products have been evaluated<br />

through this innovative process at no expense to the City.<br />

The technology providers pay a fee. This program has<br />

been very successful. During 2010, both Fort Wayne, Ind.,<br />

and Zionsville, Ind., have entered into similar agreements<br />

with the university.<br />

Due to the strong interest in the new product review<br />

process from utilities and consultants across the nation, a<br />

new program will be launched to provide access to all new<br />

product review reports on a subscription basis. The nonprofit<br />

Institute of Product Validation (IPV) (www.institutepv.com)<br />

has been formed to manage the national<br />

program. Any utility or industry representative can subscribe<br />

to the IPV services and access the new product<br />

36 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


eports. Future reviews, validation and report development<br />

will be done utilizing an academic alliance. The<br />

academic alliance will begin with six universities throughout<br />

North America. The alliance is expected to continue<br />

to expand. The reviews will rotate among the universities<br />

and three universities will conduct peer reviews.<br />

Product Selection<br />

Concrete coating system selection, as well as specification<br />

writing, is challenging because of the number of<br />

variables involved. These include geographic location,<br />

the concrete mix design, admixtures, placement and finishing<br />

techniques. Concrete is also comparatively weak in<br />

tension, has an irregular surface, contains moisture and is<br />

easily contaminated.<br />

The first, and perhaps most important, step should be<br />

to develop an accurate understanding of the conditions<br />

and requirements unique to each project. After the<br />

requirements are known, system options can be evaluated<br />

to make informed decisions.<br />

It is important when selecting a product to simply read<br />

what is written under the general description on the<br />

manufacturer’s data sheet. The material should be specifically<br />

designed for wastewater exposure. While there<br />

are many materials that will stand up well, the manufacturer<br />

and applicator should be able to demonstrate successful<br />

experience and history with the selected products<br />

in similar applications. Manufacturers who might not be<br />

familiar with the unique corrosive environment within<br />

sanitary sewers will try to convince the engineer to specify<br />

materials that were not necessarily intended for sanitary<br />

sewer use. The products may hold up to the service,<br />

but their use without a proven history introduces an<br />

undesirable element of risk of major damage.<br />

Whenever available, the experience and lessons learned<br />

from installations within the utility’s system should be<br />

fully considered. When specifying a replacement system,<br />

an accurate understanding of any past failures and performance<br />

limitations is key to ensuring future success and<br />

improved performance. The specifier should also consider<br />

soliciting input from other wastewater utilities that<br />

can confirm performance of candidate systems, or provide<br />

additional case histories, lessons learned or other<br />

experiences that could be considered for the project.<br />

Another way to check likely performance of candidate<br />

concrete coating systems is to check if the material passed<br />

tests performed under severe service conditions by John<br />

Redner and Associates for the County Sanitation Districts<br />

of Los Angeles from 1983 to 2004. This publication is<br />

readily available and lists 39 products that have passed<br />

the test. However, even if the proposed products will hold<br />

up to laboratory tests, it does not mean that they will be<br />

able to be successfully installed in the field. Some of these<br />

products are difficult to work with and require extremely<br />

skilled applicators. Also, the inevitable variables associated<br />

with each unique job may have a detrimental effect<br />

on their performance. It is interesting to note that this<br />

product evaluation program was developed by a wastewater<br />

utility. Initially, it was developed to meet the needs<br />

and answer questions for this particular utility; however,<br />

it soon became recognized as a standard throughout the<br />

wastewater industry. The rapid recognition and acceptance<br />

of this program demonstrates the need for product<br />

performance validation information.<br />

Coating System Specifications<br />

In some cases, it might be appropriate to specify performance<br />

criteria instead of specific products. This<br />

approach is thought to shift some of the risk to the contracted<br />

installer, but has the downside that the applicator<br />

may not be the ideal technical person to select the best<br />

materials and processes to produce the desired performance.<br />

In most cases and particularly for critical or complex<br />

applications, these decisions are best made by an<br />

experienced and qualified protective coating specialist.<br />

It can be difficult to determine which standards should<br />

be included in a concrete coating system specification.<br />

Manufacturers often have performance criteria shown on<br />

their data sheets that are not necessarily important to the<br />

application. The system specifier should understand<br />

which tests are relevant, as well as what constitutes a passing<br />

test. For instance, a specification may list performance<br />

criteria from one manufacturer’s data sheet with a<br />

high value for a certain ASTM standard, but not necessarily<br />

be pertinent to the application. This value will essentially<br />

disallow some manufacturers that would otherwise<br />

perform well for the application. Always use the proper<br />

industry standards from NACE, ASTM, SSPC and ICRI<br />

when specifying, installing and testing coatings in a sewer<br />

system.<br />

Field Conditions<br />

Less-than-ideal conditions should be expected and can<br />

be especially difficult to overcome. For example, in existing<br />

sewers, the coating applicator will typically have to<br />

NEW<br />

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and individuals can resolve challenges facing the<br />

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Author: Steve Maxwell<br />

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*Shipping and handling not included.<br />

Selling price subject to change without notice.<br />

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Price:<br />

$34.99*<br />

Price:<br />

$34.99*<br />

resource center<br />

benjaminmedia.com/book-store<br />

330-467-7588<br />

November/December 2011<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 37


deal with sewer flows, groundwater leaks, contaminated<br />

substrate, insects, animals, traffic, dangerous gasses and<br />

so on.<br />

Less-than-ideal environmental conditions are also a<br />

challenge in properly applying concrete coatings and<br />

affect their long-term performance. Rain, heat, cold,<br />

humidity and extremely dry conditions make it difficult to<br />

apply coatings on the porous surface of concrete. Increases<br />

in surface temperature during the initial coat to bare concrete<br />

may cause expansion of air and solvent within the<br />

concrete surface resulting in pinholes and bubbling as<br />

they escape through the uncured film. Concrete moisture<br />

can also cause a substrate side amine blush that is concealed<br />

from routine inspection and later results in osmotic<br />

blistering in immersion service. Many times the applicator<br />

will start with acceptable conditions and changes<br />

occur throughout the day that may cause the work to be<br />

ruined, or questionable at the very least.<br />

Field conditions must be continuously monitored to<br />

understand and adjust for their potential effects on the<br />

coating system being installed. Often, it is beneficial to<br />

control the environment to the extent possible using techniques<br />

such as containment, temperature control and<br />

dehumidification.<br />

Qualification of Applicators<br />

Even the very best coating system will fail if not properly<br />

installed. Similar to product selection and specification<br />

writing, the use of a qualified applicator is a critical<br />

element of a successful coatings project. Inexperienced<br />

buyers often sort “painting contractors” into one single<br />

group. In reality, coating application typically involves<br />

very specialized processes and equipment, and the most<br />

qualified applicators are often the ones that specialize in<br />

a particular area, such as concrete tank linings, manhole<br />

coatings, floor coatings or structural steel.<br />

Specialization fosters the development of best practices,<br />

work efficiency and improved product quality. When<br />

the same processes are repeated, mistakes are usually<br />

reduced or eliminated, and the process can be continuously<br />

improved. Risks are reduced and the odds of success<br />

are increased. In contrast, using inexperienced applicators<br />

predictably results in a large learning curve. With<br />

complex coating and lining systems, this learning curve<br />

can be very costly.<br />

The best contractor on the last job might not be the best<br />

for the next job if the type of coating work to be performed<br />

is significantly different than the last time. The applicator’s<br />

area of expertise should be a prime consideration<br />

when developing a short list of bidders for a project.<br />

A good source to find qualified applicators is the<br />

manufacturer of the selected products. Generally, they<br />

will want to recommend qualified applicators to better<br />

ensure the success of their product. Some manufacturers<br />

of high-performance coatings only sell to contractors<br />

that have gone through some form of a manufacturer<br />

training and qualification program to become an<br />

“approved” applicator. Requiring the contactor to be a<br />

manufacturer-approved applicator is almost always a<br />

good idea. Proof of approval should always be in writing<br />

from the manufacturer.<br />

References and referrals from other past projects<br />

should always be required and fully investigated in the<br />

applicator selection process. To ensure the “low-bid” is<br />

meaningful, final consideration of bidders should be limited<br />

to only those that are truly qualified to perform the<br />

work. Otherwise, an apparent lower price may only be<br />

due to a lack of understanding of the project requirements.<br />

Accepting an inappropriately low bid from an<br />

inexperienced applicator contractor will predictably<br />

result in unsatisfactory results as well as change orders,<br />

schedule delays and excessive rework.<br />

In-Process Inspection<br />

Some coatings applicators do excellent work. Some do<br />

not. However, if an applicator knows that all of its work<br />

will be inspected thoroughly, it is far more likely to do a<br />

good job. Full-time, in-process quality control inspection<br />

helps ensure that the selected coating system is properly<br />

implemented.<br />

Although the utility owner should monitor and inspect<br />

the quality of the work, the applicator must be ultimately<br />

responsible for its performance, quality control and<br />

workmanship. In cases where the owner assigns an<br />

inspector, the applicator will often attempt to use the<br />

inspector as a gauge for its work. If problems arise, the<br />

applicator often responds by saying it was doing what it<br />

was told and it passed all inspections, suggesting it is not<br />

the problem of the applicator. This undesirable scenario<br />

blurs lines of responsibility because the owner’s inspector<br />

has inadvertently become part of the applicator’s<br />

work process. The system specifier must make it clear in<br />

the project procurement documents that the owner<br />

reserves the right to inspect, but has no burden or<br />

responsibility for the final outcome. It must be clear that<br />

quality control is the sole responsibility of the contractor.<br />

It is ideal for every coatings applicator to have its<br />

own qualified, full-time inspector working at all times<br />

during the installation process.<br />

Even when an applicator has a qualified inspector, it<br />

can still be difficult to always get quality workmanship.<br />

The inspector’s paycheck comes from the applicator,<br />

which sometimes makes it difficult to perform inspections<br />

and report in an effective and unbiased manner. For this<br />

reason, on larger or complex projects, it is usually advisable<br />

for the owner to hire a qualified NACE-certified<br />

coating inspector to monitor the work to ensure project<br />

requirements are being followed. This added oversight<br />

usually enables the applicator’s inspector to do a better<br />

job. However, as previously noted, the owner’s assignment<br />

of an inspector should never replace the requirement<br />

for the applicator to inspect its own work.<br />

Another useful tool to ensure project quality is to<br />

require that the applicator utilize a manufacturer’s technical<br />

representative to provide field training and verify<br />

on a continuous basis that work is being completed in<br />

accordance with the manufacturer’s requirements. The<br />

manufacturer should inspect storage, surface preparation,<br />

mixing, application, testing and should ultimately<br />

provide some form of a Certificate of Proper Installation.<br />

After all, the manufacturer is the expert with its material<br />

and is in the best position to resolve unexpected challenges<br />

that develop in the field.<br />

To the uniformed, this level of oversight and precaution<br />

might seem a little overboard. However, due to their cost<br />

and complexity, coatings and linings in wastewater environments<br />

have demonstrated an unusually high rate of<br />

failure compared with most other construction activities.<br />

38 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


The consequences of failure usually far outweigh the cost and<br />

inconvenience of the increased project oversight.<br />

Recommendations<br />

The ultimate success of a coatings project can be best assured<br />

by up-front product evaluation and validation. It is also necessary<br />

to spend the time to research and to gain an in-depth<br />

understanding of the conditions under which the coating system<br />

will be applied and the associated long-term exposure<br />

challenges. This knowledge, along with local experience and<br />

that of other users, is then applied to establish coating system<br />

performance criteria and to develop comprehensive specification<br />

of materials and methods. Other important steps to<br />

achieve success include qualification of material suppliers and<br />

applicators and comprehensive field quality control practices.<br />

Jeff Maxcy is a construction manager with CH2M HILL. He graduated<br />

from Mississippi State University in 1985 with a BS in Construction<br />

Engineering and started working with CH2M HILL in 1987 as a construction<br />

inspector. For the past 20 years he has been involved with determining<br />

how to specify and install waterproofing materials, concrete restoration<br />

materials and coatings properly in a sanitary sewer system.<br />

Tom Iseley, Ph.D., P.E., is a Professor and Director of Construction<br />

Engineering <strong>Management</strong> Technology, Purdue School of Engineering<br />

& Technology at IUPUI. Iseley has over 35 years of experience in the<br />

planning, design and construction of underground infrastructure<br />

systems. He served on the faculty of Mississippi State University,<br />

Purdue University and Louisiana Tech University. He founded the<br />

Trenchless Technology Center at Louisiana Tech and was a founding<br />

member of the North American Society for Trenchless Technology.<br />

For more information visit www.uimonline.com/info<br />

November/December 2011<br />

For more information visit www.uimonline.com/info<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 39


CALENDAR<br />

2012<br />

January 18-20<br />

80th Winter Conference<br />

of Mayors<br />

Washington, D.C.<br />

The U.S. Conference of Mayors annual winter meeting will be<br />

held at the Capital Hilton Hotel. Web: www.usmayors.org.<br />

February 12-15<br />

NACWA Winter Conference<br />

Los Angeles<br />

The National Association of Clean <strong>Water</strong> Agencies will host its<br />

Winter Conference – titled “<strong>Water</strong>shed Moment in the Making...<br />

Conquering the Challenges of the New Regulatory Frontier” – at<br />

the Omni Los Angeles Hotel. Web: www.nacwa.org.<br />

March 10-14<br />

Congressional City Conference<br />

Washington, D.C.<br />

The National League of Cities’ 2012 Congressional City<br />

Conference will be held at the Marriott Wardman Park hotel.<br />

Web: www.nlc.org.<br />

March 11-15<br />

No-Dig Show<br />

nashville, Tenn.<br />

The North American Society for Trenchless Technology’s annual<br />

No-Dig Show will be held at the Gaylord Opryland Hotel and<br />

Convention Center. The No-Dig Show is the largest event of its<br />

kind exclusively devoted to trenchless construction and repair.<br />

Web: www.nodigshow.com.<br />

June 3-6 Collection Systems 2012<br />

St. Louis<br />

Collection Systems 2012, themed “Show Me the Green:<br />

Confluence Planning, Implementation, and Regulations,” is<br />

being planned for the St. Louis Convention Center. The event is<br />

hosted by the <strong>Water</strong> Environment Federation’s Collection<br />

Systems Committee in cooperation with the Missouri <strong>Water</strong><br />

Environment Association. Web: www.wef.org/CollectionSystems<br />

March 12-16<br />

nuCA Convention<br />

Fort Worth, Texas<br />

The National <strong>Utility</strong> Contractors Association’s convention is<br />

being held at the Renaissance Worthington Hotel. The convention<br />

features a unique mix of keynotes, roundtables, presentations<br />

and networking opportunities. Web: www.nuca.com.<br />

April 22-25<br />

national Environmental<br />

policy Forum<br />

Washington, D.C.<br />

The National Association of Clean <strong>Water</strong> Agencies teams up for<br />

the annual National Environmental Policy Forum at the Washington<br />

Marriott. Web: www.nacwa.org.<br />

April 23-25<br />

Design-Build for<br />

<strong>Water</strong>/Wastewater<br />

Phoenix<br />

The Design-Build Institute of America’s annual <strong>Water</strong>/Wastewater<br />

conference will be held at the Renaissance Glendale Hotel &<br />

Spa.Web: www.dbia.org.<br />

June 10-14<br />

ACE12<br />

Washington, D.C.<br />

The American <strong>Water</strong> Works Association’s Annual Conference<br />

and Exposition (ACE) is the most comprehensive and diverse<br />

water conference in the world. The future demands that the<br />

water profession be more innovative, more efficient and more<br />

prepared than ever before. At ACE12, you will gain the knowledge<br />

and vision that are essential to your job and to your industry.<br />

Web: www.awwa.org.<br />

June 13-16<br />

80th Annual Conference of<br />

Mayors<br />

This annual event will bring mayors and policy makers from<br />

across the nation to Universal Studios Resorts. The U.S.<br />

Conference of Mayors is the official nonpartisan organization<br />

of cities with populations of 30,000 or more and creates<br />

a forum where mayors can share ideas and information.<br />

Web: www.usmayors.org.<br />

July 15-18<br />

NACWA Summer Conference &<br />

42nd Annual Meeting<br />

Philadelphia<br />

The National Association of Clean <strong>Water</strong> Agencies’ Summer<br />

Cofnerence and Annual Meeting – titled “Transformational<br />

Leadership. . . . Changing the Game for the Next 40 Years of<br />

Clean <strong>Water</strong>” – is being held at the Hyatt Regency Philadelphia<br />

at Penn’s Landing. Web: www.nacwa.org.<br />

August 19-22<br />

ASCE Pipelines<br />

Miami Beach, Fla.<br />

The American Society for Civil Engineers’ annual Pipelines<br />

Conference will be held at the Fontainebleau Miami Beach.<br />

Web: www.asce.org.<br />

September 9-12 AWWA DSS<br />

St. Louis<br />

The American <strong>Water</strong> Works Association’s Distribution Systems<br />

Symposium and Exposition will be held at the Hilton St. Louis at<br />

the Ballpark. Web: www.awwa.org.<br />

September 29-October 3 WEFTEC<br />

new Orleans<br />

WEFTEC 2012, the 85th annual technical exhibition and conference<br />

of the <strong>Water</strong> Environment Federation, heads to the Ernest N. Morial<br />

Convention Center in New Orleans. Web: www.weftec.org.<br />

October 7–10<br />

ICMA Annual Conference<br />

phoenix/Maricopa County,<br />

Arizona<br />

The International City/County <strong>Management</strong> Association will<br />

head to Arizona for its annual conference. Web: www.icma.org.<br />

October 7-10<br />

NAWC <strong>Water</strong> Summit<br />

Miami<br />

The National Association of <strong>Water</strong> Companies’ annual <strong>Water</strong><br />

Summit will be held in at Turnberry Isle. Web: www.nawc.org.<br />

40 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


PROFESSIONAL INDEX<br />

Company Website<br />

page<br />

2011 Educational Series<br />

Aclara www.aclaratech.com 44<br />

Benjamin Media www.benjaminmedia.com/book-store 9<br />

Resource Center<br />

Benjamin Media http://www.benjaminmedia.com/book-store 37<br />

Resource Center<br />

2011<br />

Educational<br />

Series<br />

Benjamin Media http://www.benjaminmedia.com/book-store 39<br />

Resource Center<br />

Recorded webinars shown here::<br />

www.uimonline.com/index/webinars<br />

Black & Veatch www.uimonline.com/index/webinars 7<br />

Webinar<br />

Webinars are Free<br />

BMI Online www.bmi-buyersguide.com 3<br />

Buyer’s Guides<br />

CTAM http://www.bami-i.com/certification-training-asset-management.html 20,21<br />

HDR<br />

Engineering www.hdrinc.com 3<br />

No-Dig 2012 www.nodigshow.com 5<br />

PipeLogix Inc. www.pipelogix.com 13<br />

TRS<br />

Niagara Falls www.trenchlessroadshows.com 43<br />

February<br />

I&I Reduction<br />

sponsored by<br />

March<br />

Low Pressure<br />

Sewers<br />

sponsored by<br />

May<br />

Flow Monitoring<br />

sponsored by<br />

HDPE Pipe<br />

sponsored by<br />

August<br />

Energy Action Plan<br />

September<br />

Clay Pipe<br />

sponsored by<br />

October<br />

Smart Metering<br />

sponsored by<br />

November<br />

<strong>Water</strong> System<br />

Optimization<br />

Efficiency<br />

sponsored by<br />

Underground<br />

Solutions www.undergroundsolutions.com 2<br />

2011 www.uimonline.com/index/webinars 41<br />

Webinar<br />

Schedule<br />

July<br />

Leak Detection<br />

sponsored by<br />

2012 Schedule<br />

Coming Soon!<br />

*There is a $10 administrative fee for attendees requiring a CEU certificate. It is the responsibility of<br />

attendees to contact their state approval boards to verify whether they accept webinars for credit.<br />

For more information visit www.uimonline.com/info<br />

November/December 2011<br />

<strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong> 41


COMMENTARY<br />

A New Year’s Resolution for Mayors:<br />

Save Millions in the New Year<br />

By Tony Radoszewski<br />

At the end of every year, it is a tradition to review the past<br />

12 months and to identify ways to do better in the coming<br />

year. Often, we make resolutions, like committing to exercise<br />

more or to quit smoking in order to benefit us or those we<br />

care deeply about. For mayors across North America, I submit<br />

that one resolution they can, and should, make is to save their<br />

community millions of dollars in 2012. Actually, it’s not that<br />

hard to do. Let me tell you how.<br />

All you need to do is to look to your aging and degrading<br />

water, sewer and stormwater systems for opportunities. Every<br />

mayor knows that their deteriorating underground infrastructure<br />

requires immediate attention and investment. And with<br />

capital resources tighter than ever, new strategies need to be<br />

employed to make those dollars go farther than ever. Tested<br />

and proven technologies exist today that have shown time and<br />

time again to save substantial expense while providing totally<br />

leak-free and water-tight, long-life, sustainable infrastructure<br />

options. Systems with superior resistance to rust, abrasion<br />

and deterioration are readily obtainable. Use of high-density<br />

polyethylene (HDPE) pipe enables deployment of greener solutions<br />

that conserve resources now and yield long-term savings.<br />

Resolve to rehabilitate or expand pipe systems in enlightened<br />

ways that are environmentally responsible and forward<br />

thinking. These choices will serve generations.<br />

For nearly 60 years the Plastics Pipe Institute has been providing<br />

real-life examples of technically enhanced pipe systems<br />

that also save millions of dollars. The status quo is not good<br />

enough – older materials like concrete, iron and steel along<br />

with conventional methods of installation were not developed<br />

for the demands of current times in mind. As they seek to improve<br />

the lives of their constituents, while balancing budgets,<br />

mayors should demand that their cities make wiser decisions<br />

that consider current alternatives and the long-standing impact<br />

of each option.<br />

Examples of forward-thinking cities that have actually prospered<br />

from acting similarly will help to solidify choosing to<br />

accept this challenge and acting upon this 2012 New Year’s<br />

Resolution:<br />

Mayor Jack Kirsey, Livonia, Mich.<br />

Project: Potable <strong>Water</strong> System<br />

We experienced an increasing number of incident reports<br />

of broken water mains that required digging up the streets to<br />

do the repairs, and it reached a catastrophic stage. Not only<br />

were we losing water, a valuable resource, but the cost to our<br />

taxpayers was significant. We had to find the best system that<br />

would last the longest and have the most realistic cost.<br />

Nearly 27,000 feet of our aging, deteriorated water system<br />

needed to be replaced with new and larger diameter pipes to<br />

provide for our increasing population. HDPE pipe is typically<br />

less expensive than ductile iron pipe. We saved more than<br />

$200,000 just for the pipe, not including cost associated with<br />

the labor and time that would be needed to handle and install<br />

the much heavier iron pipe. The end result is that we were<br />

able to do this project without raising the<br />

rate for water.<br />

Radoszewski<br />

Mayor Jack Hoffman,<br />

Lake Oswego, Calif.<br />

Project: Wastewater Interceptor Line<br />

A safe and reliable infrastructure is one of many components<br />

of a great community. Our city, like tens of thousands<br />

of cities across our nation, has an aging infrastructure. If we<br />

don’t responsibly invest and maintain it, we risk potential loss<br />

of property or life that could financially burden our citizens.<br />

Clean water, safe sewerage systems and good roads are just<br />

part of our paramount responsibilities.<br />

Our concrete and cast iron in-lake interceptor system needed<br />

to be upgraded. The system was corroded, undersized and<br />

at risk of failing in an earthquake. If a collapse was to occur,<br />

millions of gallons of untreated wastewater would enter the<br />

lake and millions of gallons of lake water would drain downstream<br />

to the receiving treatment plant and overwhelm its hydraulic<br />

capacity. The cost of the in-lake portion of the new<br />

system using HDPE pipe is estimated at $95 million, which<br />

is $25 million less than an around-the-lake pumped system.<br />

Mayor Barrie MacMillan, New<br />

Glasgow, Nova Scotia<br />

Project: Combined Sewer Overflow (CSO)<br />

We are upgrading our infrastructure at every chance we get<br />

because it’s important. The major area being upgraded to separate<br />

the storm water is a tidal estuary for salt and fresh water, and<br />

is the centerpiece of our riverfront revitalization. This combined<br />

sewer overflow reduction is a critical project for us. The large diameter,<br />

corrugated HDPE pipe is interesting because it seems to<br />

be a better product and is sustainable. Our engineer told me the<br />

thing that he liked about it was that it provided a good, tight seal.<br />

My engineering department is very confident about the plastic<br />

pipe and, most importantly, the project is within budget.<br />

Many other cities are charging ahead and taking care of their<br />

underground systems and their pocketbook. The City of Houston<br />

saved $2-4 million by using HDPE pipe and pipe bursting<br />

installation to replace a failed 42-in. pre-stressed concrete<br />

cylinder pipe (PCCP) water line. Miami-Dade will save an estimated<br />

$10 million by sliplining 1.5 miles of a failing 72-in.<br />

PCCP sewer force main with 63-in. HDPE pipe. Yet another<br />

example is in the city of Palo Alto, Calif., which is converting its<br />

entire municipal potable water system to HDPE materials. For<br />

many years the city used HDPE pipe in its gas system because it<br />

could be installed by boring instead of the open-trench method.<br />

So, mayors, let’s start the New Year off right. Make it your<br />

resolution to save your city millions of dollars in 2012 while<br />

giving your constituents peace of mind. It’s an easy thing to do!<br />

Tony Radoszewski is Executive Director of The Plastics Pipe<br />

Institute. For information visit: www.plasticpipe.org.<br />

42 <strong>Water</strong> <strong>Utility</strong> <strong>Infrastructure</strong> <strong>Management</strong><br />

November/December 2011


Uniting the<br />

Trenchless World<br />

Presenters from:<br />

Austria, Canada,<br />

Holland, Iran,<br />

New Zealand,<br />

UK, and USA<br />

Underground <strong>Infrastructure</strong> Research (UIR) International<br />

Conference and Trenchless Technology Road Show<br />

June 5-6, 2012 Scotiabank Convention Centre<br />

Niagara Falls, Ontario, Canada<br />

For more information visit www.trenchlessroadshows.com<br />

Platinum Sponsor:<br />

Gold Sponsors:<br />

For more information visit www.uimonline.com/info


For more information visit www.uimonline.com/info

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