5 Million Customers 3.4 Million Customers

85,000 Customers

2.2 Million Customers

CLIENTS

Smart Utility Systems (SUS) is a business solutions company focused on delivering optimized digital platform solutions for Customer Engagement, Mobile Workforce, and Business Analytics to the Utility industry.

• Established in 2009, HQ in Southern California, offices in Santa Clara, Singapore, India

• Smart Grid Product of the Year 2015, 2016 SAP Pinnacle Award 200% annual growth

• Management with one hundred +years of collective utility experience

• Energy and Utilities Industry commitment – SUS only works with Utilities

PARTNERS / EXPERIENCES

WHO WE ARE

9.7 Million Customers

SOLUTIONS

Smart Customer Mobile (SCM)

Smart Mobile Workforce (SMW)

Smart iQ Analytics (SiQ)

About Us

400,000 Customers

16,000 Customers

SUS Confidential

26,000 Customers

175,000 Customers

2

Unified Modules Across Devices iOS / Android / Windows Phone / Browser / Multilingual

SUS Confidential

English

Spanish / etc.

3

Utility Branded Portal

SUS Confidential

SUS Builds, Deploys and Maintains Portal with Your Branding

4

Utility Branded Mobile App

SUS Confidential

SUS Builds, Deploys and Maintains Mobile Apps with Your Branding

Cal American Water Home Screen

City of Newport BeachHome Screen

Cal American Water Report Water

Waste

City of Newport BeachModules

5

SUS Confidential

Ongoing Industry Recognition

April 16, 2016 LA Times

“Glendale has a consistent track record of implementing innovative programs to help our customers save money and conserve,” Steve Zurn, the utility’s general manager, said in the statement. “We are always looking for proven and verifiable technologies to better engage our customers.”

6

WATER SOFTENER RULES AND REGULATIONS REVISIONS

WATER SOFTENING 101

Water hardness is a measure of specific minerals in water that can impact the performance of various household and commercial functions

“Hard Water” is a measurement of mainly Calcium and Magnesium levels in water

Water Softener units use “ion exchange” technology to remove hardness

Brine and backwash discharge are byproducts of “regenerating water softeners” that enter sewer

TYPICAL WATER SOFTENERS

ResidentialCommercial / Industrial

WATER SOFTENING PROCESS

WATER SOFTENING PROCESS

CODE STATUTES AND DISTRICT RULES & REGULATIONS

District R&R’s currently prohibit use of self-regenerating water softeners

Two Statutes, Health & Safety Code and California Water Code, require specific conditions be met to allow for restricting residential water softener use

Codes do not provide policy on restriction of non-residential water softener use

Health &Safety Code: Local agency must have specific findings through independent studies showing restriction is “necessary means” of Waste Discharge or Permit compliance

Water Code: Specific findings by Regional Board on impacts to water quality objectives be substantiated to “control” salinity input from residential water softeners

No findings have been made by Region 9 of San Diego Regional Water Quality Control Board or by MNWD / SOCWA

Relief of District’s prohibition would not have noticeable impact on wastewater salinity levels

Revisions will reference compliance with Health & Safety Code Section 116775, et seq.

STAFF RECOMMENDATION

Sections 5.B.2, 5.J.1.k, and 12 of District’s Rules and Regulations be modified (per Exhibit A) and adopted to comply with Health and Safety Code Section 116775, et seq

Questions?

Year

2013 2.54 2.88 4.08 4.79 5.99 6.07 5.81 6.53 5.26 3.92 2.52 2.49

2014 2.82 2.64 4.09 5.54 6.39 6.45 6.54 6.23 5.21 3.94 3.16 1.91

2015 2.52 3.02 4.96 5.31 4.48 5.75 5.69 6.27 5 3.88 3.24 2.35

2016 1.87 3.82 3.98 5.16 4.63 June 13, 2016

ET (Inches)

-

1,000

2,000

3,000

4,000

January February March April May June July August September October November December

Historical Monthly MNWD Water Purchases & EvapotranspirationAF

-

1,000

2,000

3,000

4,000

SWRCB Monthly Target & MNWD Water Purchases

2015/2016 Production 2013 Production SWRCB Target

AF

June 13, 2016

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Cumulative Monthly Water Purchases versus SWRCB Allocation

2013/2014 Production SWRCB Target 2015/2016 Production

AF

June 13, 2016

0.0%

12.5%

25.0%

37.5%

50.0%

Single Family Residential Accounts Above Tier 2

June 13, 2016

94 89 101 154 131 159 102 148 134 187 173 110 70 78 83 119AF in Tier 3, 4, 5

0

250,000

500,000

750,000

1,000,000

1,250,000

Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16

Potable Usage by Tier

Tier 1 Tier 2 Tier 3 Tier 4 Tier 5

ccf

0%

25%

50%

75%

100%

Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16

Tier 5 1.5% 1.4% 1.1% 1.8% 1.6% 1.4% 4.3% 7.3% 7.0% 9.2% 9.6% 7.5% 5.6% 5.4% 5.0% 7.1%

Tier 4 1.4% 1.2% 1.1% 1.7% 1.7% 1.6% 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Tier 3 3.3% 3.0% 3.0% 3.8% 4.1% 4.3% 0.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Tier 2 23.8% 30.1% 36.1% 39.0% 40.0% 43.8% 41.9% 44.7% 40.4% 39.2% 36.2% 22.9% 26.8% 30.3% 33.7% 38.1%

Tier 1 70.0% 64.3% 58.7% 53.7% 52.6% 48.9% 52.6% 48.0% 52.6% 51.6% 54.3% 69.6% 67.6% 64.3% 61.3% 54.8%

Percent Potable Usage by Tier

Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 June 13, 2016

0

400

800

1,200

Jan

-13

Mar

-13

May

-13

Jul-

13

Sep

-13

No

v-1

3

Jan

-14

Mar

-14

May

-14

Jul-

14

Sep

-14

No

v-1

4

Jan

-15

Mar

-15

May

-15

Jul-

15

Sep

-15

No

v-1

5

Jan

-16

Mar

-16

May

-16

Monthly MNWD RW ProductionAF

June 13, 2016

0

100

200

300

4001

1-2

01

0

1-2

01

1

3-2

01

1

5-2

01

1

7-2

01

1

9-2

01

1

11

-20

11

1-2

01

2

3-2

01

2

5-2

01

2

7-2

01

2

9-2

01

2

11

-20

12

1-2

01

3

3-2

01

3

5-2

01

3

7-2

01

3

9-2

01

3

11

-20

13

1-2

01

4

3-2

01

4

5-2

01

4

7-2

01

4

9-2

01

4

11

-20

14

1-2

01

5

3-2

01

5

5-2

01

5

7-2

01

5

9-2

01

5

11

-20

15

1-2

01

6

3-2

01

6

5-2

01

6

Total Turf Removal Applications by Month

Residential Commercial

Applications

June 13, 2016

0

500,000

1,000,000

1,500,000

11

-20

10

1-2

01

13

-20

11

5-2

01

17

-20

11

9-2

01

11

1-2

01

11

-20

12

3-2

01

25

-20

12

7-2

01

29

-20

12

11

-20

12

1-2

01

33

-20

13

5-2

01

37

-20

13

9-2

01

31

1-2

01

31

-20

14

3-2

01

45

-20

14

7-2

01

49

-20

14

11

-20

14

1-2

01

53

-20

15

5-2

01

57

-20

15

9-2

01

51

1-2

01

51

-20

16

3-2

01

65

-20

16

Total Turf Removal Application Size by Month

Residential Commercial

Square Feet

June 13, 2016

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

11

-20

11

1-2

01

2

3-2

01

2

5-2

01

2

7-2

01

2

9-2

01

2

11

-20

12

1-2

01

3

3-2

01

3

5-2

01

3

7-2

01

3

9-2

01

3

11

-20

13

1-2

01

4

3-2

01

4

5-2

01

4

7-2

01

4

9-2

01

4

11

-20

14

1-2

01

5

3-2

01

5

5-2

01

5

7-2

01

5

9-2

01

5

11

-20

15

1-2

01

6

3-2

01

6

5-2

01

6

Total Turf RemovedSquare Feet

June 13, 2016