(Western Kentucky Region)

Date/Time

Tuesday, March 16, 2010

8:30 a.m. – 12:00 p.m. (CDT)

Location

Muhlenberg County Career Advancement Center

50 Career Way (off Hwy. 189)

Central City (Powderly), Kentucky

Topic/Speakers

“Hire Right – Fire Right”

Tracey Walls

Human Resource Professional, TVA

&

Leigh Douglas

Kentucky Office of Employment and Training

To Pre-register

Sandy Gary, Muhlenberg Co. Water District #3

270.525.6333

sandygary@bellsouth.net

or

Kentucky Rural Water Association

270.843.2291

j.cole@krwa.org

Cost

No Fee

By Christopher Palmeri and Nanette Byrnes

The once red-hot bottled water industry has lost its sparkle. The $12-billion-a-year business has gotten whacked in the past year by the weak economy, an environmental backlash against plastic bottles, and competition from trendy canteens, often filled with tap water. That has left water marketers taking drastic steps to win back consumers, including a 3D Super Bowl ad and investments in the Fijian rain forest.

U.S. consumers gulped 8.9 billion gallons of bottled water in 2008, a 2.3% increase from the previous year, according to the research firm Beverage Marketing. That’s a sharp decline, though, from the 8% to 12% annual growth the business enjoyed earlier in the decade, when such celebrities as Paris Hilton posed with Evian bottles and consumers drove around with cases of bottled water in the backs of their cars and SUVs.

Some of the biggest players in the industry are now reporting disappointing results. Industry leader Nestlé, owner of the Perrier, Poland Spring, and Arrowhead brands, says its water sales were flat in the U.S. through the first nine months of 2008 and down 3% globally. At Coca-Cola (KO), volumes of “still” beverages remained flat in the third quarter, due largely to declines in its Dasani brand. PepsiCo (PEP) saw its noncarbonated beverage volume fall 5% in the same period. Sales of its No. 2-selling Aquafina brand fell by double digits. The faltering economy is of course the biggest problem, as companies and cash-strapped consumers cut back on everything from trips to the convenience store to deliveries of five-gallon jugs. That has prompted a price war, with 24-bottle cases selling for as little as three-for-$10 in supermarkets.

Too Much Plastic

The environmental issue is close behind. Green activists have been agitating for years that all those billions of plastic bottles were an eco-disaster. Recently, their complaints have gotten heard. Cities such as Seattle and San Francisco have told their municipal offices to stop buying water in small plastic bottles. And high-end restaurants in New York and Los Angeles that used to fatten up customers’ checks by pushing “sparkling or tap” have stopped for fear of being seen as environmentally incorrect.

Don’t blame us, says Joseph Doss, president of the International Bottled Water Assn., a trade group. He’s quick with stats that say plastic water bottles represent just 0.3% of the waste in landfills, and points to recycling programs such as one in Hartford, Conn., where residents get store coupons for returning used bottles. He notes that plenty of other refreshments get served in plastic. “It’s just unfortunate people are turning it into a tap-water-vs.-bottled-water issue,” Doss says. “Consumers are making other beverage choices, including teas, soft drinks, and juices.”

That’s a position Nestlé is also taking, putting messages on its bottles reminding customers that a typical 12-oz. soda contains 10 tablespoons of sugar and that substituting a bottle of water every day would eliminate 3,560 tablespoons of sugar a year. Nestlé has also been a leader in reducing the amount of plastic used in its bottles from 15 grams two years ago to 12.5 grams now. Later this year it will release a new version of its “eco-shape” bottle that will contain only 10 grams, even though the lighter bottles strike some consumers as easy to spill. “We had to teach people, flimsy is good,” says Kim Jeffery, chief executive of Nestlé Waters North America.

Here Come Refillable Bottles

Other companies are also brushing up their eco-credentials. Groupe Danone, maker of Evian, is transporting its bottles by train in Europe to lessen the use of exhaust-spewing trucks. Fiji Water—which had to lay off 40% of its staff in December due to a weakened sales outlook—launched an educational Web site called Fijigreen.com and is contributing funds to reduce logging on the South Sea islands where its water is sourced. This month, Coke opened a bottle-to-bottle recycling plant in Spartanburg, S.C., that will use old bottles to produce enough plastic for nearly 2 billion new 20-oz. bottles every year.

Coke and Pepsi, meanwhile, have substantially cut back advertising for their Dasani and Aquafina brands, according to market researcher TNS Media Intelligence. Instead, the beverage behemoths are cranking up spending on flavored waters, for which they can charge higher prices. Coke paid a staggering $4.1 billion for Glaceau, maker of the Vitaminwater brand, in 2007. Since then it is heavily promoting the brand as a sports drink, with spots featuring athletes airing on the ESPN (DIS) cable networks. Pepsi, meanwhile, is featuring its SoBe Lifewater in a 60-second, 3D ad during the Super Bowl on Feb. 1.

When it comes to what’s cool, though, the bottled water business must now compete with a hot new product: refillable bottles made by such companies as Sigg, CamelBak, and Kleen Kanteen. And for now, at least, the tap-water crowd has the high ground in the battle over who is greenest. “The bottled water business hasn’t figured out a way to address the fundamental fact that municipal pipes are the most environmentally friendly way to distribute water,” says Paul Shustak. His company, KOR Ideas, sells a reusable plastic “hydration vessel” made, in case you’re curious, without any hormone-disrupting Bisphenol A.

Palmeri is a senior correspondent in BusinessWeek’s Los Angeles bureau. Byrnes is a senior writer for BusinessWeek in New York.

Water districts, water associations, and municipal utilities from around Kentucky were eligible to submit samples of their water, straight from the tap. This year’s conference, attended by nearly 400 participants, was themed Bridging the Gap. Representatives from the private sector, related industries, and from water and wastewater service providers, offered excellent perspectives and initiatives promoting sustainable practices to bridge today’s utility management gaps and challenges. Industry professionals were on hand to demonstrate the best and latest in supplies, materials, and services appropriate for utilities’ needs.

While the water from Hardin County Water District #2 was selected as the most appealing, second place was awarded to Manchester Water & Sewer in Clay County; with third place going to Warren County Water District.

Because of the quality of the drinking water from Hardin County Water District #2, Kentucky has a great chance of winning the national Best Tasting Water Contest in Washington, D.C., during the Rural Water Rally, an annual legislative event for the 48 state affiliates of the National Rural Water Association. The competition is part of the Quality on Tap! campaign to emphasize the high quality and, consequently, taste of America’s public drinking water.

Best Tasting Water Award

Accepting the award includes Shaun Youravich, Water Treatment Manager; James Jeffries, General Manager; and Scott Clark, Administrative Manager.

Tuesday morning sessions began with Clay Kelly, Mark Sneve, and Mark Askin, Strand Associates; James Jeffries, Hardin Co. Water District #2; and Damon Talley, Attorney at Law, leading discussions examining Managed Wastewater Service in Rural Kentucky.

Julie Roney and Julie Smoak, Kentucky Division of Water addressed some of the possible infrastructure modifications and changes in New Drinking Water Regulations-IDSE/Stage 2 DBP Rule and Capacity Development.

Tuesday afternoon sessions included Aaron Keatley, Kentucky Division of Compliance Assistance, on Regulations-New Water & Wastewater Operator Cerification Rules. Christal Wade, WKU-Center for Water Resource Studies reviewed recent changes in state regulations’ effect on utility staffing with The Water Training Institute (WTI): A Bridge into our Profession. Robert Mohan, The Neil Group, LLC, ended the day’s sessions discussing the six stages of change and Excelling Through the Chasms of Change.

The day concluded with a Membership Appreciation Reception providing everyone an opportunity for fellowship and great food.

On Wednesday morning, Clem Wethington demonstrated New Tools for Building Better Utilities (recordkeeping and reporting); Vernon Brown, USDA Rural Development, and John Covington, KIA, led a team discussion on Filling the Infrastructure Gap for Water & Wastewater Utilities. Sessions concluded with a presentation on Diversity-Stregthening Relationships by Recognizing Differences, by Barbara Crow, Water Utility Professional.

Kentucky’s Best Tasting Water Luncheon and contest finished off the successful conference. Guest Speaker, John Padalino, Special Assistant, Office of the Administrator, USDA Rural Delevopment, provided an update on Rural Development funding and activities, while a panel of judges including Gene Birk of WBKO News; Paulette McKinney, Insurors of Kentucky; John Covington, KIA; Barbara Crow, Water Professional; Vernon Brown, USDA Rural Development; and Jimmy Adcock, Public Service Commission, were trying to determine the Best Tasting Water in Kentucky from a total of 17 water samples provided by utilities competing for the coveted award. Hardin County County Water District #2 was chosen to have the ”tastiest” water, with second place awarded to Manchester Water & Sewer; and third place going to Warren County Water District.

Because of the quality of the drinking water from Hardin County Water District #2, Kentucky has a great chance of winning the national Best Tasting Water Contest in Washington, D.C., during the Rural Water Rally, an annual legislative event for the 48 state affiliates of the National Rural Water Association.

KIA would like to thank the KIA Board Members for their determination and diligence throughout this demanding time in KIA’s history. They would also like to thank all the other participants that had a part in pulling these projects together: all the utilities, project engineers, Area Development District staff, project administrators, the e-Clearinghouse, Community Development Block Grant, Appalachian Regional Commission, U.S. Rural Development, Capital Projects and Bond Oversight Committee, Finance and Administration Cabinet Office of the Secretary, Office of Legal Services for Finance, Office of Financial Management, Public Service Commission, Peck, Shaffer & Williams PLLC, and Division of Water.

A Herculean effort was afforded by all to meet the ARRA and SRF requirements for 60 ARRA projects and 24 Base Program projects in 9 months. Prior to ARRA, KIA’s largest annual production of loans was 30 in 12 months.

The two loans, totaling $ 2,753,000, allow for a comprehensive inspection and repair of the city’s sewer system, including a detailed sewer system assessment followed by a major sewer rehabilitation project in two collection system basins. Due to the extensive deterioration of the lines found during the initial inspection, significant rehabilitation of existing lines is required.  “Sewer, water system and infrastructure concerns are some of the most crucial to ensuring that towns across the Commonwealth continue to thrive,” said Gov. Beshear. “

Through the CWSRF loans, the city of Princeton will be able to improve all-important public service facilities in their community.” Princeton will receive a Kentucky Infrastructure Authority (KIA) base program CWSRF loan of $1,149,256 and a KIA ARRA CWSRF loan of $1,103,744. Principal forgiveness of $575,051 will be offered for the ARRA CWSRF loan, which will save the community approximately $35,000 annually in debt service payments. “I am always pleased when the city of Princeton receives funds and that is especially true when that money is directed at making much needed, long overdue improvements to the sewer lines,” said Sen. Dorsey Ridley, of Henderson. “I am a champion of improving sewer services and providing clean, reliable water.” “This grant is very important to the Princeton Water Department and will allow us to complete badly needed sewer renovation,” said Rep. Mike Cherry, of Princeton. “I am particularly gratified to see such examples as this of federal stimulus money going to grassroots, infrastructure projects.”

BY SALLY U. MILLS

Earlier this year I participated in a panel discussion at the 2008 AWWA Annual Conference and Exhibition Workshop, Knowledge Succession: Attracting the Talent You Need, Retaining the Knowledge You Have. In partnership with three young professionals, I conveyed the personal experiences that motivated us to pursue a career in the drinking water industry. In preparing for this discussion, I developed a short questionnaire for new and young water professionals throughout the United States and Canada. I received nearly 40 responses from new and young professionals representing public and private agencies in water operations, engineering, planning, management, laboratory services, systems analysis, customer service, administration, conservation, and manufacturing. The following is a summary of the results.

With a slight turn of the wrist, an entire nation can expect a supply of safe, clean drinking water to flow from the tap. This everyday convenience stems from our nation’s forefathers who understood the importance of water to the health and prosperity of a community. Their ingenuity and good sense led to the construction of intricate piping networks to deliver water from untainted sources to residents of metropolitan areas. What began in the early 1900s as an age of new technology now serves as an example of our nation’s top achievements in engineering and public health. Today, according to the National Research Council Water and Technology Board (2008), nearly 1 million miles of water distribution pipe span the United States, delivering a continuous and dependable supply of safe, clean drinking water to more than 300 million people.

Thousands of skilled men and women are responsible for providing the nation with this vital public service. As water professionals, we understand the importance of providing a dependable supply of safe, clean drinking water for the continued preservation and protection of our nation’s health and well-being. We recognize water as a fundamental component in the development of sustainable practices for the alleviation of poverty and hunger and protection of the natural world. We know that water is essential for life. The question is, does anyone else?

MAKE THE CONNECTION: WATER INDUSTRY AND SOCIALLY MEANINGFUL CAREERS

One of the most difficult hurdles in recruiting new and young professionals to the water industry is education. Considering the nearly 1 million miles of pipe that are buried underground, the water industry is, for the most part, an “out of sight, out of mind” industry. Taken for granted by many, only a small percentage of the population is aware of water’s complexity or the massive amounts of infrastructure and the number of skilled professionals needed to ensure the continuous and proper delivery of tap water.

When asked to describe the circumstances that led to their career in water, nearly one third of the respondents listed employment ads and professional placement agencies. The remaining two-thirds attributed their decision to pursue a career in water to personal conversations and invitations to apply from someone they knew and respected. Specifically mentioned were family and friends currently working in the water industry, high school instructors, career counselors, and college professors. More than half of these respondents also credited the school setting for providing them with the opportunity to learn about the water industry through career fairs, internships, professional presentations, and scholarships.

Highlighting the social effect of working in the water industry is imperative for recruiting new and young professionals. According to Tulgan and Martin (2001), career choices of the younger generation are driven by their quest for opportunities to play meaningful roles in work that helps others. The desire for socially meaningful careers is evident in today’s new and young water industry professional. When asked to explain their motivation for continuing to pursue a career in the water industry, more than 50% of the respondents specifically mentioned personal satisfaction in providing their community with an essential service as an influencing factor in their decision to continue their career in water. Nearly 75% of the respondents mentioned social responsibility in public service, environmental protection, and sustainable development as highly attractive features of the water profession.

ACCENTUATE THE POSITIVES: SECURITY, HEALTH CARE, AND RETIREMENT

When asked to describe the advantages of working for their agency, respondents provided an array of answers ranging from progressive and proactive mission statements to incentives for carpooling. However, the most common advantage,mentioned by 50% of all survey respondents, was health insurance and retirement benefits. Other common advantages, salary and job security, were included by 30% of all respondents. In addition, respondents noted that the health care coverage and retirement benefits commonly associated with working in the water industry served as significant incentives for attracting them to their employers.

According to Koc (2008), the younger generation has a desire for jobs that provide financial security. When asked to rate job attributes in terms of how important they are in selecting a job or employer, more than 19,000 students ranked companies offering job security second and good insurance packages third. Armour (2005) notes that the younger generation’s attraction to financial security stems from witnessing the financial insecurity of previous generations and the dot.com bust. Other influencing factors include outsourcing, rising health care costs, and dwindling social security. The permanence of infrastructure and the nation’s never-ending expectation and need for sufficient quantities of high-quality water provide many new and young professionals with a sense of stability and security, especially during economic downturns.

It is clear that job security, health care insurance, and retirement benefits are attractive to new and young professionals. When advertising open positions, many employers note, “generous benefits package.” If possible, employers should provide more detail. Many new and young professionals entering the workforce might not be aware of what is included in a generous benefits package. If possible, employers should also look into expanding benefits to give employees more options, such as alternative health care and financial planning services. Most important, employers must be committed to protecting current benefits. Sadly, two of the respondents noted current reductions in their health care benefits and attributed these cuts as having a significant influence on their decision to look for a new job, preferably in the water industry.

WORK–LIFE BALANCE: KNOWING WHY IT’S IMPORTANT

Today’s generation places a high priority on personal and family-related goals compared with career goals, and, as such, want jobs that accommodate their families and personal lives. According to Gerkovich (2001), today’s generation is less willing to sacrifice, compromise, and make trade-offs than other generations have been. Growing up with the highest percentage of two working parents and/or divorced-parent families, these latchkey kids have first-hand knowledge of the effects working parents have on childhood.

Today’s generation wants a life that includes work, but they also want a life that includes family, friends, and recreation. When asked what organizations could offer to retain current employees and attract future employees, common suggestions from respondents included flexible work schedules and telecommuting options. Those respondents with children suggested paid maternity leave, the opportunity to work part time or leave the workforce temporarily, job-share options, and child-care benefits. A few respondents noted healthy living programs and even suggested gym memberships and workout facilities for the office.

Common among new and young professionals is the need for a comfortable working environment. Spending at least eight hours of every day in the office, new and young employees place a high value on a friendly working environment. When asked to list advantages of working for their agency, nearly 25% of the respondents noted a high level of satisfaction with their co-workers. Offices that support interoffice activities and encourage employee interaction are appealing to the younger generation.

INVEST IN YOUR EMPLOYEES

Throughout the questionnaire, respondents expressed a desire to find careers that allow them to use their education, apply their experience, hone their skills, continue to learn, and, most important, pursue pro- fessional growth opportunities.

Investing in employees generates security and cultivates loyalty. For example:

• Allowing an employee to work indepen- dently is an indication of trust.
• Offering education and training oppor- tunities suggests grooming for future and/or additional responsibilities.
• Instituting mentoring and outlining advancement potential suggests promotion possibilities.
• Developing cross-training, hands-on training, and rotational programs implies preparation for future opportunities.
• Including new and young professionals in succession planning shares future intentions.
• Invitations to participate in site visits and to work with upper management denote coaching.
• Education reimbursement and career development programs show support for the individual, not only the employee.

Thirty percent of all respondents noted “growing challenges and dynamic nature” as one of the many benefits to working in the water industry. Not surprising when you consider the reputation of today’s generation to constantly improve. Fortunately, the water industry is an industry with endless opportunities for today’s generation to try different things. It is when there is a lack of opportunity to grow and try new things that new and young professionals leave. Though some employers may not consider it worthwhile to invest so wholly in new and young professionals, the lack of investment could lead to an exodus of these individuals. Providing a nurturing work environment will not only attract new and young professionals but also retain them for years to come.

CONCLUSION

Today’s generation wants socially meaningful professions. They want good benefits and a balanced life. They want to grow in their jobs and learn new skills. If an employer cannot provide these job attributes, then employees will seek jobs with better benefits, professional growth opportunities, and personal fulfillment.

Unfortunately, the challenges facing today’s water industry are only outweighed by the challenges of tomorrow. As Baby Boomers begin their exodus into retirement, the next generation of water professionals is faced with the challenge of antiquated infrastructure, growing demands for water, dwindling sources of supply, and rising concerns regarding water quality. If the water industry is to continue providing our nation with a dependable supply of safe, clean drinking water, it must make strides to attract and retain new and young professionals.

Doing so will require educating the youth of the nation on the importance of water and the diversity of the industry.  It will require accentuating the benefits of working in the industry as well as protecting those benefits. It will require a shift in workplace attitudes that are respectful and supportive of family and personal needs. Finally, it will require a leap of faith by employers to unselfishly invest in, educate, train, and groom their new and young professionals. Implementing such workplace practices and attitudes will not only attract new employees but will ensure the protection and expansion of this industry’s greatest recruiting tool—its current employees.

—Sally U. Mills is the water quality program coordinator for the city of Tigard, Ore.  She currently serves on AWWA’s Young Professionals Committee and can be reached at sally@tigard-or.gov.