HomeMy WebLinkAboutAgenda - 02-16-2016 - 4-d - OWASA Annual Update Presentation 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 16, 2016
Action Agenda
Item No. 4-d
SUBJECT: OWASA Annual Update Presentation
DEPARTMENT: County Commissioners PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Donna Baker, Clerk to the Board, 245-
January 28, 2016 Letter from OWASA 2130
Board Chair John A. Young Bonnie Hammersley, County Manager,
245-2300
Ed Kerwin, OWASA Executive Director,
968-4421
John A. Young, OWASA Board Chair,
968-4421
PURPOSE: To receive a presentation and information from the Orange Water and Sewer
Authority (OWASA) on recent activities.
BACKGROUND: OWASA Board of Directors' Chair John Young will make a presentation to
the Board of Commissioners on recent OWASA activities and specifically addressing the topics
outlined in the attachment. OWASA Executive Director Ed Kerwin will be at the meeting, and
Orange County's appointees to the OWASA Board, Terri Buckner and Barbara Middleton-
Foushee, have also been invited to attend.
FINANCIAL IMPACT: There is no financial impact associated with receiving the presentation.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated
with this item.
RECOMMENDATION(S): The Manager recommends that the Board receive the presentation
as information and provide any feedback as necessary.
2
Ae"Th IOWASAI ORANGE WATER AND SEWER AUTHORITY
A public, non-profit agency providing water, sewer and reclaimed water services
to the Carrboro-Chapel Hill community.
January 28, 2016
Mayor Pam Hemminger Mayor Lydia Lavelle Earl McKee, Chair of the Board
Town of Chapel Hill Town of Carrboro of Commissioners
405 Martin Luther King Jr. 301 West Main Street County of Orange
Boulevard Carrboro,NC 27510 PO Box 8181
Chapel Hill,NC 27514 Hillsborough,NC 27278
Dear Mayor Hemminger, Mayor Lavelle and Chair McKee:
We are pleased to submit this annual report on our services and initiatives.
Sewer system design for the Historic Rogers Road Area
Design and the process of getting construction permits are on schedule for completion in the fall
of 2016. Surveying, checking for underground rock and other information gathering in the
neighborhood are 95% complete. Design work to establish the basic sewer route was completed
in December 2015. The Rogers Eubanks Neighborhood Association (RENA), the Marian Cheek
Jackson Center, Orange County, the Towns of Chapel Hill and Carrboro and OWASA met with
residents on July 28, 2015 to discuss the design process and on December 8, 2015 to discuss the
County's acquisition of easements for the sewer lines.
Once there is a decision to proceed with construction, we estimate it will take about 19 months
for bidding, award of the contact and completion of construction. The estimated total cost of
design and construction is about $5.7 million, excluding costs for easement acquisition, sewer
connection fees, the private sewer connection pipes and related plumbing work.
Affordability outreach program
On October 22, 2015 we approved a plan to implement affordability outreach on a
permanent basis in 2016. The program is designed to increase awareness of options to reduce
OWASA bills and empower low-income customers and local agencies with information and
tools for bill reduction.
The program will draw on experience with our pilot program, which included work
with 14 community agencies including Orange County,the Towns of Chapel Hill and Carrboro,
and social service and affordable housing agencies; and a water conservation pilot project with
six low-income customers. Key upcoming items will include expanding our partnership to
involve rental property owners and managers, continuing to work with partners, helping
customers in need and proactive water conservation outreach.
400 Jones Ferry Road Equal Opportunity Employer Voice (919) 968-4421
Carrboro, NC 27510-2001 Printed on Recycled Paper www.owasa.org
OWASA Annual Report 3
January 28, 2016
Page 2
Advanced Meter Infrastructure (AMI)
AMI is a meter reading system including fixed antennae for remotely reading water meters with
batteries for data transmission. Vehicles would not be necessary for readings, with resulting
savings in energy and reduction in greenhouse gas emissions. AMI would enable faster
detection of leaks, customers could monitor their daily water use on line and AMI would not
require a rate increase. We completed a detailed feasibility study on AMI in January 2016.
On January 21, 2016, we approved a plan for community engagement including receiving
citizens' comments in our February 25, March 10 and March 24, 2016 Board meetings. We may
make a decision on whether to proceed with AMI at our March 24, 2016 Board meeting. I will
send you additional information soon and we invite your questions and feedback.
Financial management/rates
Fiscal Year 2016 is the fourth consecutive year with no increase in monthly water and
sewer rates. We continue to meet our financial performance objectives including our bond rating
of AA+. We are considering potential changes to our rate structure to help ensure that service
affordability, conservation, and equity across customer classes continue to be addressed and that
we have the financial capacity to sustain our infrastructure and services. If changes are proposed,
there will be a public engagement process.
Water supply/demand
Drinking water sales in calendar year 2015 averaged about 6.17 million gallons per day(MGD),
compared to 6.33 for the prior year. Drinking water use continues at levels not seen since the
early 1990s due to conservation and the University's use of reclaimed water.Reclaimed water
use reached a single-day record of 2.4 million gallons on August 21, 2015.
Energy management
Due to water conservation by our customers and our energy efficiency investments and practices,
we have reduced energy use per customer account by about 27%since 2006. Greenhouse gas
emissions related to our services and facilities similarly declined. We are developing an Energy
Management Plan and have been working with local government and University staff to
discuss potential opportunities for collaboration on energy efficiency and renewable
energy strategies. We expect to complete the plan by the end of 2016.
Our key draft objectives for developing the plan are:
1. Reduce use of purchased electricity by 35%by the end of Calendar Year 2020 compared
to the Calendar Year 2010 baseline.
2. Reduce use of purchased natural gas by 5%by the end of Calendar Year 2020 compared
to the Calendar Year 2010 baseline.
OWASA Annual Report 4
January 28, 2016
Page 3
3. Beneficially use all wastewater treatment plant biogas by 2022,provided the preferred
strategy is projected to have a positive payback within the expected useful life of the
required equipment.
Biosolids
On October 8, 2015 we decided to move toward recycling about 75% of our biosolids in "liquid"
form on approved farms (when practical), and recycling about 25% in dewatered form at a
composting facility in Chatham County. Our past practice was to apply about 50% of
our biosolids on farmland and dewater 50% for composting. Our Class A biosolids continue to
meet Federal standards for Exceptional Quality.
This approach will continue our partnership with local farmers and maintain flexibility for
alternative biosolids management strategies in the future.
Care to Share Customer Assistance Program (formerly Taste of Hope)
About 5% of our customers donate monthly with bill payments. We received about
$4,600 in 2015. We also encourage citizens to give directly to the Inter-Faith Council (IFC). In
response to an appeal by Executive Director Ed Kerwin to various businesses in July 2015, the
IFC received about$1,500 for the Care to Share program. Marketing included information in our
newsletter,bills, on the OWASA and IFC websites, and asking new customers to sign up as
donors.
Jordan Lake Allocation Request/Long-Range Water Supply Plan Update
On November 14, 2014 staff submitted OWASA's application to maintain our Jordan Lake water
supply allocation of about 5 million gallons per day for use in severe droughts and operational
emergencies. The earliest the NC Environmental Management Commission will make a decision
is likely July 2016. The decision on our Jordan Lake allocation will be important in how we
proceed with the update of our Long-Range Water Supply Plan which is currently underway.
Water conservation and the use of reclaimed water will continue to be a foundation for sustaining
our local water resources.
Capital projects
Capital investments, including debt payments for capital projects, account for about half of our
costs. In the past year, we invested about$6.3 million in projects to renew, replace and improve
our infrastructure to maintain the reliability and quality of our services and the structural
integrity of facilities.
Current projects
• Purefoy Road water line replacement(east of South Columbia Street)
• Plum Lane water line replacement
• Evergreen/Ridge Lane water line replacement(Gimghoul neighborhood)
OWASA Annual Report 5
January 28, 2016
Page 4
• Sewer replacement near Emory and Brigham Drives
• Renovating two of the four biosolids treatment tanks at our Mason Farm Wastewater
Treatment Plant
Completed in 2015
• Water line replacements on Ridgecrest Drive,The Glen and Briarbridge Lane
• Sewer renovation in Rangewood and other locations
• Replacing sewer over Morgan Creek near Rhododendron Drive
We would be happy to give you more detail on any of our initiatives or to arrange a tour of our
facilities. Please let Ed Kerwin, Executive Director(ekerwin @owasa.org or 919-537-2411) or
me know.
Sincerely,
On A. Young, Chair
OWASA Board of Directors
c: Ms. Bonnie Hammersley, Orange County Manager
Mr. Roger L. Stancil, Chapel Hill Town Manager
Mr. David Andrews, Carrboro Town Manager
OWASA Board of Directors
Ed Kerwin, OWASA Executive Director