Todd Frank, an intern at the National Association of Wastewater Transporters, is developing an Excel spreadsheet with a feasibility study for pumpers considering building their own wastewater treatment facility. “Determining whether to build a processing plant is more complicated than just knowing what you pay to offload at a municipality,” Frank says. “You need receiving and processing equipment, electricity, holding tanks, polymers, odor control, dried solids and water disposal – it’s a long list with subcategories such as renting a building or constructing one.”

The spreadsheet begins with an input sheet where pumping contractors enter operating costs. The time-value money sheet then inserts expenses or recurring costs into the expense line and separates items into building depreciable assets and equipment depreciable assets. “I depreciated the building over 10 years and the equipment over five, but pumpers should talk to their accountants because they have multiple ways to depreciate items,” says Frank, a senior majoring in business administration at Ohio’s Ashland University.

To determine the bottom line, the program multiplies the number of gallons processed per year by disposal costs, then subtracts business expenses, depreciation and taxes to determine a net operating profit. “That’s similar to your net income,” Frank says. “The program adds depreciation to net operating profit to get free cash flow.”

The software takes the free cash flow from 10 years, discounts it into current dollars, and compares that number to the cost of equipment in today’s dollars. If cash flow from operations is greater than the cash flow of equipment, then it is financially feasible to start a processing facility.

To find the cost and freight of treatment components, Frank included links to manufacturers. “Doing this research emphasizes even more clearly everything that pumpers need to get started,” he says. “But it is important to remember that this is only the first step in the process. To determine the final number, pumpers must talk to their accountants and tax preparers. If it is possible for the plan to work, they know how to change the numbers and make it happen.”

Frank and his father, Tom Frank, who owns a full-service septic business in Huntsburg, Ohio, will talk about the program during Education Day at the Pumper & Cleaner Environmental Expo International. “You don’t have to be Excel literate to use the spreadsheets and understand what is going on,” Frank says. “It’s basically plugging in numbers and seeing what they say.” The spreadsheet is free for NAWT members at www.nawt.org.

 

Attention Arizona Inspectors – Oct. 11-12

All inspectors for the Transfer of Property inspection program are required to attend an Arizona Department of Environmental Quality-approved course before initiating a real estate inspection. If you have not attended a course, consider attending the University of Arizona-sponsored NAWT Inspection Training & Certification course approved by ADEQ.

Your successful completion of the two-day course and certification test will result in being listed as a certified inspector with both NAWT and ADEQ. This list is posted on the NAWT website (www.nawt.org) and is visited by property owners and real estate agents engaged in the Arizona Transfer Inspection Program under AAC R18-9-A316.

The training will be Oct. 11-12 at the Maricopa County Cooperative Extension office, 4341 E. Broadway Road, Phoenix, Ariz.; 602/827-8200. The meeting time is 8 a.m. to 5 p.m. both days for first-time students and 8 a.m. to 5 p.m. the second day for recertifying students. Instructors are David Gustafson, P.E., and James Anderson, Ph.D. For more information, contact Janine Lane, janinel@cals.arizona.edu, or at 928/782-5882.

 

Education Day at the Expo

The Pumper & Cleaner Environmental Expo International provides attendees with informative, constructive and industry-oriented seminars. During Education Day on Monday, Feb. 27, 2012, NAWT is providing a lineup of speakers with valuable information for you and your company:

8 a.m. What do I need to know about DOT requirements and why should I get involved with a professional? Bob Kolvey, Motor Carrier Compliance and Safety

9:30 a.m. Detailed pump and float discussion; covering how to set floats properly. Kit Rosefield; California Onsite Wastewater Association Education Coordinator

11 a.m. Certification and septic inspections: this could introduce inspection procedures and talk about importance of certification. Jim Anderson, NAWT Education Coordinator

1 p.m. What I need to evaluate to determine my facility costs. Tom and Todd Frank, Tim Frank Septic Tank Cleaning, Huntsburg, Ohio

2:30 p.m. Maintenance frequency standards and requirements. Jeff Rachlin; Onsite Management Inc.; West Chester, Pa.

4 p.m. Working with small communities on their wastewater treatment needs. David Gustafson; University of Minnesota