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Download Volume 10, Issue 1 (2011) here.
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Asset Management Helps Communities Improve System Performance and Optimize Long-Term Funding Strategies
By Timothy P. Taber, P.E., BCEE
Managing an infrastructure system like a water or wastewater system or a transportation network is a delicate balancing act. At what point does it become more cost effective to replace a component rather than continue to maintain and repair it? There are inherent conflicting factors to manage, such as short-term versus long-term benefits, expenditures versus performance levels, planned and unplanned availability, or capital costs versus operating expenditures. An Asset Management program enables you to better manage critical infrastructure assets and ultimately, improve fiscal performance.
Essentially, asset management is the optimal selection, maintenance, operation, inspection, and renewal of assets to maintain a desired level of service at the lowest life cycle cost. Asset management helps organizations:
- Prolong the life of assets and capital investments
- Prolong the life of assets and capital investments
- Improve security and safety and reduce risks due to failed or poorly performing assets
- Treat all decisions as investment decisions to maximize limited financial resources
- Make costs transparent to support financial decisions
- Choose capital projects that meet the system’s true needs
- Base revenue needs on sound operational decisions
- Enhance the sustainable use of physical resources
- Ultimately move to a proactive approach to maintenance and managing assets
An asset management program can inventory select components of a system, or the whole system. Some programs involve specialized software packages, and others utilize a simple spreadsheet to track and value assets. The process typically begins with data collection, conditions assessments, and risk evaluation. The program also takes into account the type and age of the assets, the client’s unique needs, and industry best management practices.
State governments are recognizing the value of Asset Management. The New York Clean Water Revolving Fund, US Rural Development and others award additional points to those applications that include asset management components. In Pennsylvania, the State Assembly has taken up a bill that would require “wastewater systems to develop and implement asset management plans and document progress toward full-cost pricing.” On the federal level, asset management can help you comply with GASB-34 reporting requirements.
B&L can help you select and implement the most appropriate processes and tools and implement best asset management practices for your organization. For more information, contact Tim Taber.
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Smart, Green Growth Driving National Trend for Funding Policies
By Glenn Gidaly, AICP
The New York State Smart Growth Public Infrastructure Policy Act was signed into law on September 29, 2010. The Act states that all New York State funding agencies must utilize 10 Smart Growth and sustainability criteria when deciding how to spend infrastructure dollars, and to prioritize projects based on where infrastructure already exists.
The law targets infrastructure investments toward Main Streets, downtowns, brownfield areas, central business districts, municipal centers, and other priority growth areas. The Act aims to help struggling upstate regions to revitalize their downtowns, protect the environment and open spaces, and provide property tax relief. The Act also aims to minimize the environmental effects and additional infrastructure costs to communities caused by urban sprawl.
Each state infrastructure agency* has now been given the authority to create a Smart Growth Advisory Committee that will be charged with focusing on projects that meet 10 criteria:
- Use, maintain or improve existing water/sewer services
- Locate public infrastructure within municipal centers
- Promote development projects in exiting developed areas or in areas noted in Comprehensive Plan, Local Waterfront Revitalization Plan or Brownfield Redevelopment Plan
- Protect, preserve New York State resources
- Foster mixed land uses and compact development
- Provide for mobility through a variety of transportation choices
- Coordinate between State and local governments
- Promote community-based planning and collaboration
- Ensure predictability in land use codes
- Strengthen existing communities in ways that help reduce Greenhouse gas emissions
Some positive impacts that adherence to the new Smart Growth Policy Act can have on your municipality include:
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Hamlet redevelopment that limits sprawl, conserves open space and protects Critical Environmental Areas
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Promoting centralized water/sewer services
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Encouraging walkable communities
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Supporting new urbanist code development
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Concentrating new development patterns by encouraging in-fill development
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Reinforcing central location of important civic facilities; post offices, libraries, fire stations, public schools and community centers
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Emphasizing non-motorized transportation
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Supporting transit-oriented development
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Promoting “safe routes” to schools
Many funding agencies which municipalities historically have approached for assistance in financing water/sewer projects are already utilizing Smart Growth Act criteria. Very recently, new Project Scoring memos have been released from a number of funding agencies that detail how compliance with smart growth, which is considered to be a part of “green design”, can serve to earn your project additional points. In this era of diminishing funding resources and elevated competition for grants, getting all the scoring points you can is critical.
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The United States Department of Agriculture (USDA), Water/Wastewater Loan/Grant Program provides for Discretionary Points for smart growth and green projects.
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The New York State Environmental Facilities Corporation (EFC), under the Clean Water State Revolving Fund (CWSRF) and the Drinking Water State Revolving Fund (DWSRF) both acknowledge and provide additional points for better planned projects.
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The Green Innovations Grant Program (GIGP), administered by the EFC was launched last year as part of the Federal Stimulus Program. The EFC had such success with the GIGP that the Corporation is continuing the program with its own funds to promote innovative “green” projects around NYS. Again, such projects should highlight smart growth in order to compete better and to secure additional points in ranking and rating.
Barton & Loguidice has always been in the forefront in terms of pushing all manner of innovative planning techniques and methods such as form-based codes, transit-oriented development, senior overlay districts and, of course, Smart Growth. We can help you work within the Smart Growth Policy to encourage re-development in central areas of your communities and to secure affordable financing for the upgrade of vital central water and sewer services.
*State infrastructure agencies include:
- The Department of Transportation
- The Department of Education
- The Department of Health
- The Department of State
- The New York State Environmental Facilities Corporation
- The New York State Housing Finance Agency
- The Housing Trust Fund Corporation
- The Dormitory Authority
- The Thruway Authority
- The Port Authority Of New York And New Jersey
- The Empire State Development Corporation
- The New York State Urban Development Corporation
..and all other New York authorities. Any subsidiary of, or corporation with the same members or directors as, a public benefit corporation identified in this subdivision shall also be deemed to be within the definition of state infrastructure agency under this law.
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The NYS Office of Parks, Recreation & Historic Preservation (OPRHP) has announced that their Taconic Regional Headquarters project in Staatsburgh, NY earned a LEED Platinum certification. B&L was instrumental in assisting the OPRHP with this achievement, which transformed the old Anderson School Building into a benchmark sustainable office building.
- B&L’s staff provided a variety of design services, including high efficiency geothermal based HVAC system, rooftop photovoltaic energy generation, indoor environmental lighting & HVAC controllability, and high efficiency lighting systems with day-lighting control.
- Sustainable site design by B&L included porous site paving, stream/habitat restoration, onsite stormwater management, and native species landscaping (zero irrigation) – all elements that helped the project reach the LEED Platinum level.
The Regional Office provided the architectural, plumbing, and structural engineering services for the building.
 LEED Platinum is currently the highest level of certification within the US Green Building Council’s LEED system. At present there are only 10 LEED Platinum buildings in NYS, and the OPRHP offices is the first LEED Platinum building owned by the State of New York. For more on this project, contact Dean Mason.
Read the NYSOPRHP press release here.
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New York State Department of Labor Opinion on Wicks Law Suggests Process Piping and Pumping Belong to Plumbing Contract
By Richard A. Straut, P.E.
New York State General Municipal Law, Section 101, commonly known as the Wicks Law, requires “separate and independent bidding” of the following subdivisions of work for public works contracts “for the erection, construction, reconstruction or alteration of buildings, or any part thereof:”
- Plumbing and gas fitting;
- steam heating, hot water heating, ventilating and air conditioning apparatus; and
- Electric wiring and standard illuminating fixtures
Typically all other work is included in a General Construction contract.
 Wicks Law was first enacted in 1912 for the purposes of promoting fair competition among bidders and to protect workers’ rights. In the early 1960’s, $50,000 construction value thresholds were established for state contracts and local government contracts. The threshold remained at $50,000 until 2008, when Wicks Law reform increased the contract value thresholds to $3 million in New York City, $1.5 million in Nassau, Suffolk and Westchester Counties, and $500,000 in all other parts of the state.
For decades process piping and pumping systems have been included in the General Construction Contract. However, the Commissioner of Labor issued two opinions in 2010 – one concerning a wastewater treatment plant improvement project for Rockland County, and one for a wastewater treatment plant improvement project for the Village of Ellenville (Ulster County). Both opinions issued by the Commissioner determined that process piping and pumping systems work at these plants belongs in the Plumbing contract rather than the General Construction contract.
If these opinions stand, the change in policy is expected to have significant implications on water and wastewater facilities projects. Some of the issues that will have to be dealt with are:
- There will be more points of interface between the work of the Plumbing contractor and the General Construction Contractor, thereby requiring more attention to coordination of the contractors by the Owner and Engineer, whcih will increase the cost of projects.
- Since this work has not traditionally been included in the Plumbing contracts, it is not clear that the Plumbing contractors have the experience to complete process piping and pumping work.
- Some Plumbing contractors may not have the bonding capacity to bid the Plumbing contracts on projects involving a significant amount of process piping and pumping work.
At this point in time, NYSDOL is maintaining its position that the process piping and pumping systems be included in a Plumbing contract. Unfortunately, the department has not yet provided a guidance document to define specifically what is considered to be process piping and pumping systems. However, the opinion issued for the Village of Ellenville’s wastewater treatment plant improvements project suggested that process piping and pumping systems includes:
- All process pipes and pumps within buildings
- Aeration blowers and aeration piping, chemical feed pumps and piping / tubing
- Yard piping
- Pumps and piping that are supplied as part of an treatment process equipment package through the General Contractor must be installed by the Plumbing Contractor
The Associated General Contractors of New York State has announced its intent to “aggressively pursue” a challenge of NYSDOL’s opinion, and has been attempting to argue its point through Governor Cuomo’s administration. AGC has said that “legal action has not been ruled out.”
Most recently, NYSDOL wrote to the Village of Ellenville that the Village may award contracts for its project as originally bid, thereby reversing its prior directive that the Village may not award the contracts as bid. Indications are that NYSDOL will be issuing a policy statement regarding contracting of process piping and pumping systems in the future, clarifying it’s opinion, and defining a date after which all public works projects bid must comply with the policy.
B&L will be following these developments as they proceed through administrative and legal channels. If you have any questions about the status of Wicks Law interpretations and enforcement as they relate to your construction projects, please contact Rich Straut.
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B&L Expands Further into Hudson Valley with Newburgh Office
Left to right: Brian McGorman (John J. Lease Realtors), Donald Schmalzle (B&L Resident Engineer), Senator Bill Larkin, Newburgh Mayor Nicholas Valentine, Vincent Cappelletti (building owner), Glenn Gidaly, AICP (B&L Associate); Richard Straut, P.E. (B&L Senior Vice President); and Nicholas Pinto, P.E. (B&L President)
B&L announces the opening of a second Hudson Valley office in the City of Newburgh. Joining the firm’s sister Hudson Valley office in Ellenville, this office furthers the company's commitment to client service, and maximizes the engineering services B&L provides to the municipal, institutional, and industrial clients in the Hudson Valley.
“The new office location is a direct result of our underlying mission for the last 50 years – to serve clients," said Nicholas J. Pinto, P.E., President. "We are responding to the needs of our existing Hudson Valley clients while fostering new client relationships and extending the range of our services available to the region."
B&L provides civil and environmental engineering and planning services throughout the Hudson Valley, New York, and the eastern United States. The firm’s activities directly supported by the new office in Orange County include evaluating the Brown’s Pond raw water transmission main in the City of Newburgh, performing a water system assessment in the Village of Warwick, developing an all-hazard mitigation plan for the Town of Deerpark, and upgrading the HVAC at Washington’s Headquarters State Historic Site (also in the City of Newburgh).
"Over the years we’ve become very familiar with the needs of Hudson Valley communities, and the message is clear: there has been, and will continue to be, a need for high quality planning and engineering services in the region,” said Richard A. Straut, P.E, a Senior Vice President in B&L's Albany office, and officer-in-charge of the Newburgh office. “This new office demonstrates that we are here to stay, and well positioned to continue filling that need."
The office address is: 280 Broadway – Suite 12, Newburgh, New York 12550. The phone number is (845) 391-8360. Directions can be found here.
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