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DEVELOPING A STRATEGIC PLAN FOR ORANGE WATER AND SEWER

AUTHORITY [OWASA]ALAN RIMER P.E. DEE – CHAIR OWASA BOARD OF DIRECTORS

After more than a year of work with the OWASA Board and Staff, including stakeholder input, the Strategic plan was approved

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WHO IS OWASA?

• WE PROVIDE DRINKING WATER, WASTEWATER AND RECLAIMED WATER SERVICES FOR OVER

80,000 PEOPLE IN THE TOWNS OF CHAPEL HILL AND CARRBORO AND THE UNIVERSITY OF

NORTH CAROLINA AT CHAPEL HILL

• ANNUAL REVENUES ARE APPROXIMATELY $37 MILLION

• 129 FUNDED STAFF POSITIONS (135 ARE AUTHORIZED AND IS DOWN FROM 150 SEVERAL

YEARS AGO)

• THE UNIVERSITY IS OUR LARGEST CUSTOMER (ABOUT 22% OF DRINKING WATER SALES)

MISSION, VISION & VALUESMISSION – WE ARE A COMMUNITY-OWNED UTILITY PROVIDING OUR CUSTOMERS HIGH QUALITY

AND RELIABLE WATER, WASTEWATER, AND RECLAIMED WATER SERVICES THROUGH RESPONSIBLE AND CREATIVE STEWARDSHIP OF THE RESOURCES WE MANAGE

VISION – WE PROVIDE EXCELLENT SERVICE SO THAT IF OUR CUSTOMERS COULD CHOOSE THEIR

WATER AND WASTEWATER UTILITY, THEY WOULD ALWAYS SELECT OWASA. WE ARE A TRUSTED STEWARD OF THE COMMUNITY, ENVIRONMENTAL, AND FINANCIAL RESOURCES WE MANAGE.

VALUES – • WE PROVIDE QUALITY DRINKING WATER • WE ARE ENVIRONMENTALLY RESPONSIBLE •WE PROVIDE EXCELLENT SERVICE • WE VALUE OUR EMPLOYEES • WE PROVIDE AFFORDABLE SERVICES • WE EMBRACE SUSTAINABILITY • WE SUPPORT THE COMMUNITIES WE SERVE • WE SEEK INNOVATION AND CREATIVITY

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HOW ARE WE GOVERNED?THE OWASA BOARD OF DIRECTORS

THE OWASA BOARD HAS A PRESCRIBED SET OF RESPONSIBILITIES

• REPRESENT OUR CUSTOMERS’/STAKEHOLDERS INTERESTS

• ESTABLISH POLICIES

• ADOPT BUDGETS; SET RATES, FEES AND CHARGES

• AUTHORIZE ISSUANCE OF REVENUE BONDS

• HIRE EXECUTIVE DIRECTOR, GENERAL COUNSEL AND AUDITOR

Customers

Board of Directors

Auditor Executive Director

General Counsel

Chapel Hill Town Council (appoints 5)

Carrboro Board of Aldermen (appoints 2)

Orange County Board of Commissioners (appoints 2)

WATER SUPPLY& WASTEWATER DISPOSALWATER SUPPLY

UNIVERSITY LAKECANE CREEKQUARRY RESERVOIRJORDAN LAKEJONES FERRY ROAD WATER TREATMENT

PLANT

WASTEWATER MANAGEMENTMASON FARM WASTEWATER TREATMENT

PLANTRECLAIMED WATER TREATMENT

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450 MG Storage

200 MG Storage

3 BG Storage

JONES FERRY PLANT HAS A CAPACITY OF 20MGD

Mason Farm WWTP

MASON FARM PLANT HAS A CAPACITY OF 14.5 MGD PEAK MONTLY FLOW

THE RECLAIMED WATER SYSTEM CAN DELIVER 3 MGD TO UNC AND ONE EXISTING NON-UNC CUSTOMER

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WATER CONSUMPTION HAS DROPPED DRAMATICALLY

UNC WATER CONSUMPTION FEATURES SWITCH TO RECLAIMED WATER USE

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DEVELOPING THE STRATEGIC PLAN

• APPOINT A LEADER TO GUIDE DEVELOPMENT OF THE STRATEGIC PLAN

• SEVERAL ON BOARD HAD EXPERIENCE IN LEADING SUCH EFFORTS

• JOHN YOUNG [VICE-CHAIR] LED THE ONE YEAR PROCESS

• DEFINE THE CHARACTERISTICS OF A GOOD PLAN

• THE DISCUSSION LEADING TO THE PLAN DEVELOPMENT [FREE EXCHANGE OF IDEAS, FACTS,

ANALYSIS] AND A SHARED UNDERSTANDING OF SAME PROVED TO BE MORE IMPORTANT THAN THE

ACTUAL PLAN

• FOCUS ON A FEW SELECT CHALLENGES/OPPORTUNITIES

• NOTE THAT THE STRATEGIC PLAN IS VERY DISTINCT FROM AN OPERATING PLAN AND BUDGET

• THE OPERATING PLAN COVERS THE DAY-TO-DAY BUSINESS

• WILL ULTIMATELY COVER ASPECTS OF THE DEVELOPED STRATEGIC PLAN

• WHEN DEVELOPED THE PLAN IS A PRIORITIZED PLAN OF ACTIONS THAT PRODUCE FUNDAMENTAL CHANGE IN THE ORGANIZATION

• SET GOALS THAT ARE SMART SPECIFIC, MEASURABLE, ATTAINABLE, RELEVANT, TIMED

• ALSO IMPORTANT TO REACH CONSENSUS ON WHAT ARE NOT STRATEGIC PRIORITIES

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THE PROCESS

• STEP 1: DEFINE AND PRIORITIZE THE MOST CRITICAL AREAS OF CHALLENGES AND OPPORTUNITIES [THE FIVE STRATEGIC TOPICS]

• STEP 2: IDENTIFY THE FULL RANGE OF STRATEGIC ACTIONS THAT COULD BE TAKEN FOR EACH OF THE PRIMARY CHALLENGES-OPPORTUNITIES

• STEP 3: EVALUATE THE STRATEGIC ALTERNATIVES AND CHOOSE THE MOST DESIRABLE ACTIONS

• STEP 4: PREPARE SMART ACTION PLANS. REVIEW AND UPDATE THE ORGANIZATION’S VISION, MISSION, AND VALUES. FINALIZE THE STRATEGIC PLAN DOCUMENT

THE PROCESS INVOLVED THE BOARD AND THE STAFF”S SENIOR LEADERSHIP PROCESS STEPS INCLUDED:

THE TIMELINE

• ORIGINAL TIMELINE WAS GOING TO BE SEVERAL MONTHS

• WORK BEGAN IN EARNEST IN FEBRUARY 2013

• AFTER SEVEN EXTRA MEETINGS AND 15-20 HOURS OF MEETING TIME AND LOTS OF HOMEWORK THE FINAL PLAN ADOPTED IN MARCH 2014

• TO ACHIEVE THE TIMELINE CERTAIN GROUND RULES WERE DEVELOPED

• AWE! ADMIRE THE WISDOM IN EVERYONE

• PSS! PLEASE DON’T BE REDUNDANT + SAY IT ONCE + SUMMARIZE CONCISELY

• PT! POSITIVE THOUGHTS

• CR! COURTESY & RESPECT

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INITIAL STRATEGIC TOPICS• AFFORDABILITY/COST MANAGEMENT

• CUSTOMER SATISFACTION

• RESOURCE MANAGEMENT & INFRASTRUCTURE SUSTAINABILITY

• KNOWLEDGE MANAGEMENT

• FINANCIAL SUSTAINABILITY/SECURITY AND FINANCIAL ASSUMPTIONS

• BENCHMARKING

• ENVIRONMENTAL STEWARDSHIP & CONSERVATION

• TECHNOLOGY

• ROLE IN COMMUNITY

ADOPTED STRATEGIC INITIATIVES FOR 2014 - 2017

• EACH STRATEGIC INITIATIVE HAD:

• GOALS

• ACTIONS

• MEASURES OF SUCCESS

• THE WHOLE STRATEGIC PLAN CAN BE FOUND ON THE OWASA WEB SITE AT:

HTTP://OWASA.ORG/CLIENT_RESOURCES/ABOUT/2014 03 13- ADOPTED OWASA_STRATEGIC PLAN.PDF

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• GOALS – VARIOUS MIXES OF WATER SUPPLY AND DEMAND PROJECTIONS THAT MEET FUTURE CONDITIONS AND UNCERTAINTIES, ENHANCED RELIABILITY, MAINTAIN JORDAN LAKE WATER SUPPLY ALLOCATION, DEVELOP OR AMEND TRANSFER AGREEMENTS WITH DURHAM AND CARY

• ACTIONS – UPDATE LONG RANGE WATER SUPPLY PLAN, PREPARE CONSERVATION PLAN, SUBMIT APPROPRIATE APPLICATION FOR JORDAN LAKE ALLOCATION, WORK WITH DURHAM AND CARY STAFF TO DEVELOP INTER-LOCAL AGREEMENTS

• MEASURES OF SUCCESS – UPDATED PLAN PROVIDES A CLEAR AND RESPONSIBLE PATH FORWARD TO ENSURE A RELIABLE HIGH QUALITY WATER SUPPLY FOR NEXT 50 YEARS SUPPORTED BY ALL STAKEHOLDERS, REDUCE RESIDENTIAL WATER USE THROUGH ADDITIONAL CONSERVATION, ALLOCATION REQUEST GRANTED, NEW OR AMENDED TRANSFER AGREEMENTS IN PLACE

• GOALS – ENGAGE STAKEHOLDERS TO UNDERSTAND THEIR PERCEPTIONS ABOUT OWASA,PROVIDE STAKEHOLDERS INFORMATION ON UTILITY, ENCOURAGE CUSTOMERS TO USE WATER WISELY

• ACTIONS – COMMUNITY ENGAGEMENT COMMITTEE, BOARD AND STAFF WORK TO DEVELOP APPROPRIATE ACTIONS TO ACHIEVE THE GOAL(S)

• MEASURES OF SUCCESS – STAKEHOLDERS TRUST OWASA TO MAKE INFORMED DECISIONS ABOUT OUR SERVICES, REDUCE WATER USE BY X%, REDUCE GREASE INDUCED OVERFLOWS, REDUCE IMPROPER DISPOSAL OF PHARMACEUTICALS AND PERSONAL CARE PRODUCTS TO SEWER, PROVIDE STAKEHOLDERS THE INFORMATION THEY NEED TO FACILITATE FEEDBACK

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• GOALS – SELECT AND IMPLEMENT A NEW CUSTOMER BILLING AND FINANCIAL MANAGEMENT

SYSTEM

• ACTIONS – DEVELOP BUSINESS REQUIREMENTS TO EVALUATE CANDIDATE SYSTEMS, DEVELOP

AN IMPLEMENTATION PLAN

• MEASURES OF SUCCESS – ALL ESSENTIAL BUSINESS REQUIREMENTS AND CANDIDATE SYSTEMS

IDENTIFIED, BEST SYSTEM IDENTIFIED BASED ON SELECTION CRITERIA, IMPLEMENTATION IS

SUCCESSFUL

• GOALS – FINANCIAL RESERVE FUNDS SET AT APPROPRIATE LEVEL, EFFICIENT PROCESS PROVIDES

STAKEHOLDER INPUT AND ALLOWS BOARD TO MAKE INFORMED DECISIONS, AFFORDABILITY TARGET SET APPROPRIATELY, THE RIGHT AND TIMELY INVESTMENTS ARE MADE TO SUSTAIN INFRASTRUCTURE

• ACTIONS – USE SCENARIO BASED FINANCIAL MODELING, REFINE CIP REVIEW PROCESS, REFINE RATE

SETTING PROCESS, ANALYZE AND REAFFIRM OR MODIFY AFFORDABILITY TARGET, COMPLETE ASSET MANAGEMENT PROGRAM TO INFORM CAPITAL INVESTMENT DECISIONS

• MEASURES OF SUCCESS – FISCAL PERFORMANCE MEASUREMENTS ARE SET AND MET, BUDGET

AND CIP DELIBERATIONS ARE BETTER INFORMED, AFFORDABILITY REFLECTS BEST PRACTICES

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• GOALS – COST EFFECTIVE MEASURES TO REDUCE OUR USE OF ENERGY AND ASSOCIATED GREENHOUSE GAS (GHG) EMISSIONS

• ACTIONS – DEVELOP A COMPREHENSIVE ENERGY MANAGEMENT PLAN, ADOPT THE PLAN AND IMPLEMENT

• MEASURES OF SUCCESS – PLAN PROVIDES A CLEAR PATH FORWARD FOR EFFECTIVE ENERGY MANAGEMENT, ENERGY SAVINGS ARE ACHIEVED, GRANTS, REBATES AND INCENTIVES ARE RECEIVED FROM OUTSIDE ENTITIES TO FUND ENERGY MANAGEMENT EFFORTS, GHG EMISSIONS ARE CONTINUALLY REDUCED COMPARED TO BASELINE YEAR, KWH PER MG OF POTABLE WATER AND MG OF WASTEWATER TREATED ARE REDUCED

• GOALS – PROVIDE COST-EFFECTIVE, ACCURATE, RELIABLE AND TIMELY WATER METERING INFORMATION FOR CUSTOMER AND STAFF TO ENHANCE SERVICE

• ACTIONS – EVALUATE BUSINESS CASE AND DETERMINE WHEN AND HOW AN ADVANCED METERING INFRASTRUCTURE (AMI) SHOULD BE IMPLEMENTED, DEVELOP AN IMPLEMENTATION PLAN

• MEASURES OF SUCCESS – BOARD MAKES A WELL-INFORMED AMI IMPLEMENTATION DECISION, ACCURATE RELIABLE WATER USE INFORMATION, CUSTOMERS HAVE ACCURATE , TIMELY WATER USE INFORMATION, REDUCED ENERGY USE AND CARBON FOOTPRINT RELATED TO METER READING AND FIELD SERVICE FUNCTIONS

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• GOALS – LAND ASSETS PROVIDE THE EXPECTED VALUE TO FULFILL OWASA’S MISSION AND

THE ASSETS ARE PROPERLY MANAGED

• ACTIONS – DEVELOP A LONG-RANGE PLAN FOR SUSTAINABLE MANAGEMENT OF OWASA

FOREST LANDS, DETERMINE NEED FOR ASSETS, DETERMINE APPROPRIATE OWNERSHIP

MODELS, ADOPT AND IMPLEMENT NEW OR REVISED LAND MANAGEMENT POLICIES

• MEASURES OF SUCCESS – FORESTS ARE EFFECTIVELY MANAGED, LAND ASSETS PROVIDE

EXPECTED VALUE

SOME THOUGHTS AS WE MOVE FORWARDFROM THE BOARD CHAIR AND EXECUTIVE DIRECTOR

• THANKS FOR THE BOARD’S DEDICATION TO THE PROCESS AND ADHERING

TO “RULES OF ENGAGEMENT”

• THE THERE IS NO DOUBT THAT BOARD MEMBERS ARE MUCH MORE KNOWLEDGEABLE ABOUT

THE ORGANIZATION & OPERATION

• THE BOARD HAS A MUCH BETTER UNDERSTANDING OF THE CHALLENGES AND

OPPORTUNITIES AHEAD.

• THE STAFF TIME TO PREPARE AND PARTICIPATE WAS EXTENSIVE, BUT THEY STRONGLY BELIEVE

THAT THIS WAS TIME WELL SPENT

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• THROUGH THE PROCESS THE BOARD GOT TO KNOW THEMSELVES AND STAFF MEMBERS BETTER WHICH WE HOPE WILL LEAD TO BETTER TEAMWORK

• THE BOARD LEARNED HOW TO WORK MORE EFFECTIVELY WITH EACH OTHER. MOST DISCUSSIONS WERE PRODUCTIVE AND IT SEEMED THAT THE BOARD LEARNED TO DO A BETTER JOB OF REACHING CONSENSUS ON KEY ISSUES WHILE RESPECTING ALL POINTS OF VIEW.

• THE BOARD CAME AWAY FROM THE PROCESS FEELING A REAL “OWNERSHIP” FOR THE PLAN

• THE PROCESS TO SEEK PUBLIC INPUT WAS GOOD. WHILE FEEDBACK WAS LIMITED, THE PROCESS WAS IMPORTANT. AND WE ACTUALLY GOT MORE FEEEDBACK ON THIS THAN MANY OTHER EFFORTS WE HAVE REACHED OUT TO THE PUBLIC ON

QUESTIONS?

Orange Water and Sewer Authority 400 Jones Ferry RoadCarrboro, NC 27510919-968-4421www.owasa.orginfo@owasa.org

Alan Rimer, P.E.OWASA Board Chair arimer@owasa.org