performance measurement and strategic planning april 23, 2015 flip mellinger director marion county...
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Marion County UtilitiesPerformance Measurement
and Strategic Planning
April 23, 2015
Flip MellingerDirectorMarion County [email protected]
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Brief HistoryMarion County Utilities – born in 1995Purchased major private Utility service area -
2001Purchased Florida Water Services assets –
2003Agreed not to raise rates for 5 years
Seriously underfunded – lacked sufficient manpower Maintenance deferred – Assets failing
BCC forced to raise rates – Tiered Rate Structure
5 year plan:9% April 2009, 9% October 2009, 9% October
2010, 4.5% October 2011, 4.5% October 2012
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Old Stonecrest PlantFlorida Water allowed System to run into ground.
Consisted of a McNeil Plant,2 Rain for Rent tanks, and 2 US Water portable Plants
Very inefficient andineffective - compliance failure
No available capacity
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Loch Harbor WWTP
• Supports Loch Harbor Condominiums
• Badly deteriorated metal structure
• Metal has been patched several times
• Plant has exceeded its useful life
• Flows being sent to Stonecrest Water Reuse Facility
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ImpactsOverall 36% rate increase +
Implementation of water conservation tiered rate structure
Some customers saw water bills more than double
Major political issue
BenchmarkingUtilities track:
28 Performance data points Higher than normal labor expenditure to track
38 Performance Measures Calculated from the measures above
MCU uses 22 Key Benchmarks (Goals)
Some examples……
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Key Benchmarking ResultsO&M cost per million gallons wastewater:
Marion County UtilitiesFlorida
Benchmarking Consortium
2012/13 Average1
2014 2013 2012 2011 2010 2009
$2,521.27 $2,694.18 $2,930.73 $2,844.65 $2,904.36 $3,561.35
$1,737.29(County)
$3,211.84(City)
1Florida Benchmarking Consortium FY12/13 Annual Service Report (WW064f-City and WW064f-County)
Resulting Goals & ObjectivesReduce direct costs per MG wastewater:
Continue to regionalize
SCADA Implementation Greater control of plants – reduced electricity Less manpower
Upgrade / modernize facilities for efficiency
Reduced from 11 WWTPs to 6 – going to 5
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Stonecrest WRF
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Accomplishments:Significantly reduce operations and
maintenance costs $15.5M in 2008 to $11.7M in 2013
Improve Bond ratings Moodys from A1 to Aa3 Standard and Poors to AA-
Refinance old Debt – net savings of nearly $5M
Reduce Rates – 9% reduction on October 1st
Questions?
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