Billy Cobb, Jr. Columbus Water Works October 23, 2015

Transcription

1 Billy Cobb, Jr. Columbus Water Works October 23, 2015

2 Agenda 1. A Little About CWW 2. Sustainability 3. The Importance of Planning 4. CWW Planning 5. CWW Planning Implementation

3 Columbus Water Works Provides water and wastewater services to City of Columbus, as well as contractual services to Fort Benning, Harris County and Talbot County CWW is a component unit (Enterprise Fund) of the Columbus Consolidated Government Operates under a five member Board of Water Commissioners FY 14/15 Budget - $70 million Customer Base - 67,004 active water 60,315 active sewer One of nine 2014 AMWA Sustainability Award Winners

4 CWW s Destination is Sustainability American Society of Civil Engineers defines sustainability as: A set of Economical, Environmental, and Social Conditions - the triple bottom line- in which all society has the capacity... This is too complicated...

5 CWW s Destination is Sustainability What we need to know from the ASCE definition is that sustainability has 3 main aspects: Economic, Environmental, and Social (These are the AMWA Award criteria) Simpler definition: A program, development, or project that meets the needs of the present without compromising the ability of future generations to meet their own needs.

6 Different Routes to the Same Destination

7 RAG Presentation Example

8 CWW s Key Plans Information Technology Master Plan Energy Gap Analysis Project Champion Facilities Master Plan (FMP) Asset Management (AM) Program Capital Improvement Plan (CIP) Five Year Financial Plan Five Year Strategic Plan

9 Master Plan

10 IT Master Plan A document that evaluates the need to replace IT infrastructure due to obsolescence, not meeting the need, etc... Network Enhancements Customer Information System (CIS) Accounting System (Lawson) Maximo LIMS (Lab work) Hachwims Syclo Up and Coming Technology ie... Cloud computing, smart devices, etc...

11 Energy GAP Analysis An evaluation of a companies Energy Management Program to determine areas needing improvement.

12 Columbus Water Works Energy Management Approach and Objectives A central component of Columbus Water Works approach to delivering reliable, low cost service is the development of an energy management program that addresses the increasing role and impact that the cost of energy consumption has on water treatment /distribution and wastewater collection/treatment pricing. Columbus Water Works has a strong history of energy management with a focus on efficient and reliable operations. An Energy Management Program was established to guide in minimizing the impact of rising energy costs for the future.

13 Electrical Rate Description Real Time Pricing (RTP) Innovation providing flexibility for your electricity purchases The cost of producing electricity changes each hour of the day. Real-Time pricing (RTP) enables consumers to make informed energy purchases based on the energy cost forecast in each hour. Proper management of your energy use can mean lower energy bills and increased production. Two Basic Products to choose from: RTP - Day Ahead (RTP - DA) Customers receive a price forecast one day in advance. The next day s hourly price is published by 4:00 PM on the business day prior to being effective. RTP - Hour Ahead (RTP - HA) Customers receive a price forecast one hour in advance. How it Works: Georgia Power works with you to develop a Customer Base Line (CBL) which represents your typical energy usage pattern. Consumption above the CBL is billed at the RTP price. Consumption on the CBL is billed at your standard rate. If consumption is below the CBL, Georgia Power buys back the energy at the RTP price

14 Equipment/Operational Items Completed Automation of aeration blowers at wastewater plant Operators minimize load by the use of operational strategies assisted by SCADA system during On-Peak time periods. Installed two 1.75 MW generators at the Wastewater Treatment Plant that utilize the methane gas generated from the CBFT3 process Takes advantage of the extremely valuable methane in the digestion process to fuel generators Began a program to collect yellow grease from customers (starting with apartment complexes) and adding to digester to increase the methane production while reducing the amount of grease added to the collection system. Installed four (4) 600 kw (Total 2.4MW generators at the Water Treatment Plant that enable peak shaving operations necessary to decrease electric demand and energy consumption during peak periods. Installed Fine Air Diffusion at SCWRF

15 GREASE RECYCLING & PHARMACEUTICAL DISPOSAL EVENTS

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17 ENERGY GAP ANALYSIS ALIGNS WITH EXISTING STRATEGIC GOALS & PLANS Reliable service for water and wastewater Strive to be energy neutral Continuation of improving energy efficiency Establish procedures for energy saving operating practices Maintain financial stability and sustainability Promote efficient and environmentally responsible energy use 17

18 Energy GAP Analysis Example: SCWRF has two generators (each capable of providing about 40% of the power required to run the plant). Generators can run on digester gas or natural gas. Only enough digester gas to run one generator

19 Energy GAP Analysis Question: At what cost of electricity and natural gas is it economical to run the second generator on natural gas? It is not as simple as comparing electrical cost per kilowatt hour (kwh) vs. natural gas cost per kwh. Other costs to consider: Cost of generator maintenance Standard Operation and Maintenance costs Rebuild maintenance Depreciation Cost of running the generator Cost of replacing fluids

20 Project Champion A CWW Employee that develops and justifies a project.

21 CWW s Green Parking Lot

22 Chattahoochee RiverWalk

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24 Community Participants Columbus Water Works PATH Foundation Community Foundation of the Chattahoochee Valley, Inc. Friends of Columbus River Link MidTown Gehl Architects Columbus Consolidated Government RiverWalk

25 Facility Master Plan A document that evaluates various infrastructure needs for predetermined planning horizons. The needs can be due to capacity limitations, regulatory changes, etc... Updated in 5 year increments Evaluates projected population growth for planning horizons

26 Facility Master Plan Evaluates System Capacities for each planning period NCWRF (Hydraulic and process) SCWRF (Hydraulic and process) Water Distribution System (Hydraulic) Waste Water Collection System (Hydraulic) Evaluates the impact of proposed regulations Determines projects to alleviate the capacity and regulatory limitations.

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28 Asset Management Is a process for minimizing Asset Life Cycle Costs, while maintaining a level of service.

29 Asset Management

30 Asset Management Purchase a new car ($300,000) Has expected life, if maintained properly Maintenance: Change Oil Flush Coolant System Tune up Battery Replacement Etc.. At some point car starts breaking down Alternator goes out Starter Fuel pump Etc... Level of Service (LOS) or Cost Requires Replacement LOS Car keeps breaking down and can t get to work It costs more to repair the car than it would to buy a new one. For water and sewer systems data is critical to tracking LOS and asset costs.

31 Relative Asset Replacement Projections Water Supply Plant $ Millions All Water Mains Wastewater Plant All Sewers Years

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33 CIP Development / Prioritization A list of infrastructure improvement projects. List of projects come from each planning document. For the 5 year planning horizon there were 70 projects at approximately $100 Million. List needs to be prioritized How do you compare a sewer line project to a water plant project? Develop criteria based on where we want to be. i.e. The Strategic Plan Results: A prioritized list of projects.

34 Asset Management Strategy Teams IT Master Plan Project Champion Energy GAP Analysis Facilities Master Plan CIP List of Projects

35 Strategic Plan Sets the direction of an organization through mission, vision, values and goals with implementation tasks. Strategic Plan used to develop criteria for prioritizing CIP projects. Projects can be generated from Strategic Teams as PWP s to be included in the CIP list.

36 MISSION

37 VISION

38 Our Core Values Guide our decisions and actions 1 Integrity 2 Customer-Focused 3 Employee-Oriented 4 Environmental Stewardship 5 Innovation 6 Community Leadership

39 Our Strategic Initiatives Enhance Customer Satisfaction Strengthen Regional Partnerships Leverage Information Technology Optimize Infrastructure Performance Develop Sustainable Workforce Maintain Financial Stability

40 Key elements of our Strategic Program Performance Benchmarking Industry Standards Internal Performance Metrics Strategy Team Activities Performance Work Plans Personal and Professional Development Communications Stakeholder and Customer Considerations Stakeholder Interviews Online Survey Customer Satisfaction Survey Customer Door Hanger Program Strategic Goals Community Outreach and Partnerships Oxbow Meadows KCBC Partners In Education United Way Fort Benning

41 Asset Management Strategy Teams IT Master Plan Project Champion Energy GAP Analysis Facilities Master Plan CIP List of Projects Strategic Plan Prioritized CIP List

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43 Financial Plan An analysis of the company s projected expenditures Operational, Capital and Investment to determine revenue needs.

44 Demand Projections v. Actual In thousands of CCF Customer FY 2014 Water Usage FY 2014 Wastewater Usage Class Projected Actual Projected Actual Commercial 1,901 1,731 1,892 1,663 Industrial 1,988 1,571 1,351 1,556 Multi-Unit 1, Residential 5,983 5,347 4,069 4,193 Com Irrigation Res Irrigation 1, Other Total 12,614 11,007 8,303 8,402 This is like your paycheck

45 Audited Expenses Operating Expenses - $ 26,216, Operating Expenses - $ 31,618,506 Five (5) Year Difference - $ 5,401,819 Average Increase Per Year - $ 1,080,364 Average Annual Increase % This is like paying for your groceries, electric bill, etc...

46 CIP Update Project Funding Source Status Number of Projects Estimated Cost Columbus Funded ( ) 16 $25 Million Projected 2016 Bond +/- 30 $40 Million Status of 2014 Bond Issue Projects in Design 10 Projects in Construction 3 Projects not started 3 This is like your House and Car payments

47 Total Forecasted Expenditures $70 $60 $ Millions $50 $40 $30 $20 $10 $0 CWW Expenditures (excludes Ft. Benning) FY FY FY FY FY $55.96 $57.87 $60.85 $62.91 $65.77 This is like all your bills added together

48 Financial Coverage Senior Debt Service Coverage Must maintain a 1.2 times ratio as required by bond covenants MADS Coverage Should maintain 1.2 times ratio to demonstrate ability to issue additional debt All Obligations Coverage Must maintain a 1.05 times ratio as required by State mandate Current All Obligation coverage ratio is 1.62

49 Current 5-Year Rate Plan 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2015 Actual Proposed Plan 3.90% 3.90% 4.95% 4.95% 4.95% Adopted **System Average 3.88% 0.00% 4.95% 4.73% 4.88% Average bill increases are calculated for a 20 CCF user 5-year average rate increase: 3.69% Note: According to data from the AWWA/RFC National Water and Wastewater Rate Survey ( ), the national average bill increase has been approximately 6.7% annually.

50 Projected 5-year Rate Plan 2015 Proposed 2016 Projected 2017 Projected 2018 Projected 2019 Projected Proposed Plan 4.95% 4.95% 4.95% 4.95% 4.95% Adopted **System Average 4.88% *According to the data from the AWWA/RFC National Water and Wastewater Rate Survey ( ), the national average bill increase has been approximately 6.7% annually. This trend is expected to continue in future years. **System Average includes all customer classes; Residential, Customer & Industrial

51 Asset Management Strategy Teams IT Master Plan Project Champion Energy GAP Analysis Facilities Master Plan CIP List of Projects Strategic Plan Prioritized CIP List Financial Plan Funded CIP

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