Strategic Plan for March 2013 to February 2014

October 11 & 12, 2012

Strategic Planning Meetings

EPWU Executive Staff Mtg. Aug. 16

PSB Meeting
Approval of Strategic Plan

Oct. 11 & 12
Nov. 14

Strategic Planning Goals

Outlines what has to be done, who is going to do it, and when it will be accomplished (road map that needs to be flexible)
Identifies ways that the organization can reduce costs, complete programs more efficiently, and identify and addresses new initiatives Five year plan that is updated annually

Implementation of Strategic Plan

President/CEO incorporates the goals and objectives into work plans and evaluates employees performances. EPWU staff continuously addresses the goals and objectives and prepares progress reports. Periodic and special reports are provided to the Public Service Board. EPWUs strives to exceed the best public and private utility standards and regulatory benchmarks.

Strategic Issues

Strategic Issues for 2013/2014

Drought Population Growth System Reliability Energy Land Management Financial Planning Stormwater Management

Communications and Conservation

Government/Policy Research

Transition of President/CEO

Operations & Technical Services

Principal Drivers
Drought
Water Resources

Energy
Stormwater Management

Aging Infrastructure

Drought

Available Water at Elephant Butte for the Region

1,200 50% 1,000 40% Thousand Acre-Feet 800 30% 600 400 20%

Beginning of Season 11% of capacity

200
0 10%

0%

End of Season 0.2% of capacity

Drought - Outlook
Outlook
Surface water allotment uncertain
Budget target 25,000 acre feet allotment

Redundancy of water supply Goal of maintaining 160MGD ready groundwater and desalination supplies

Million Gallons
169.5 179.5 189.5

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

149.5

159.5

199.5

195 Calendar Year

Peak Water Demand

163

EPWU Peak Monthly Daily Demand

MGD 170 160 150 140 130

120
110 100

2005

2006

2007

2008
Year

2009

2010

2011

2012

June

July

August

Drought - Response
Projects underway Paisano line Partello line (Northeast/Central) Shearman pump station modifications Wellhead RO re-drilling Recommended Projects Immediate well drilling program EPEC (2), Other EPWU Customers (2) FY13/14 larger well drilling program Additional storage for valley pressure zone

Paisano Valley Line

Will Carry Groundwater from Wells in Canutillo to Downtown and Near West El Paso

Existing Line Proposed Line

Northeast/Central Drought Project

Will Carry Groundwater from Wells in Northeast El Paso to Central El Paso and Near Eastside

Desal Plant Wells Shearman 10 MGD West Pressure Zones NE Pressure Zones Airport/Montana Partello Pressure Zones 15 MGD Wells

16 MGD Paisano

6 MGD Canutillo Well Field Canal WTP Valley Wells Rogers WTP

Water Resources

Water Resources Region E Update

Region E Plan update
Basic assumptions require a fresh look The next official revision due in 2016 Drought strategies will be expedited

Water Management Strategies for EPWU and Projected Demands (2011 Plan)
250,000

Additional Water Management Strategies-year 2020

200,000
Dell City Groundwater Capitan Reef Groundwater

Acre-feet per year

150,000

Additional Conjunctive Use Recharge Agricultural Drain Water

100,000
Additional Reclaimed Supply Additional Conservation

50,000

Current Reclaimed Supply Conjunctive Use EPWU Demand

0 2010 2020 2030 2040 2050 2060

Water Resources Current Planning

Planning underway 2012/13
Indirect Potable Reuse Expansion of Jonathan W. Rogers water plant Agricultural drain water study of agricultural impacts Update importation cost estimate Mesilla model update Hueco Bolson solute model NW reclaimed water upgrade UTEP reclaimed water

Northwest Reclaimed Water Upgrade

NW WWTP Site
Northwest Wastewater Treatment Plant Cl2

Reuse Water Influent to Pump Station Advanced Treatment System MF/NF

HSO3 Acid

Reclaimed Water System Pump Station pH

Reclaimed Water System

RO

Solids

Brine

Rio Grande Outfall

To Haskell WWTP (discharge to MH located at NWWWTP) 24

Imagine the result

Water Resources Future Planning

Projects to begin 2013/14
Phase II Partello line Additional storage for valley pressure zone Injection of treated surface water Additional conservation Additional reclaimed projects - Blackie Chesher - Rio Bosque

Phase II Partello Line

Injection of Treated Surface Water

Blackie Chesher Project

Bustamante / Rio Bosque

Budgeted for a reclaimed water line from Bustamante to Rio Bosque MOU with City and possible land swap involving Palisades to transfer Rio Bosque to PSB inventory Agreement of EPCWID#1 Groundwater modeling beneath the Bosque Determination of how much water the Bosque requires Agreement with UTEP on the management of the Bosque

2010 Irrigation Season Effluent Flow Distribution 42,500 Transfer 2,240

Fred Hervey 3,630

Uses 3,630

Northwest 4,800
Uses 1,040
EPCWID#1 4,667

Haskell 12,900
Uses 840 EPCWID#1 12,000 Available 60

Bustamante 21,170
Uses 180 EPCWID#1 13,333

Available 0

Available 0

Available 7,660

All units in acre feet Irrigation Season from February 15 to October 15 Note, NW underfilled EPCWID#1 obligation by 907

In Season Total

7,720

2009-10 Non-Irrigation Season1 Effluent Flow Distribution

17,395 ac-ft

Fred Hervey 1,826

Uses 1,826

Northwest 2,808
Uses 285 EPCWID#1 2,333

Haskell 5,216
Uses 70 EPCWID#1 0 Available 5,146

Bustamante 7,545
Uses 13 EPCWID#1 0 Available 7,532

Available 0 ac-ft

Available 189

All units in Acre-feet 1Non-irrigation Season from October 16 to February 14

Non-Season Total

12,867

Bustamante Reclaimed Water Demands (af/y)

Existing Customers Blackie Chesher Park Del Valle Elementary 180 70 70

Del Valle High

Soccer fields Total

60
10 390

Available
Transfer to HRS IPR Project

7840
2000 4500

(7660+180)

Rio Bosque

950

Potential Water Management Strategies

(in acre feet)
2010 Additional Conservation Additional Reclaimed Water Supply Bustamante Indirect Potable Reuse Recharge of Groundwater with Treated Surface Water Desalination of Agriculture Drain Water Canal Plant Brackish Groundwater Desalination Lower Valley Brackish Groundwater Desalination Additional Conjunctive Use Groundwater from Capitan Reef Groundwater From Dell City Area Total Proposed Additional Supply for EPWU 0 44,200 67,200 94,900 2020 3,000 2,000 10,000 8,000 2,700 2,500 11,000 5,000 2030 7,000 10,000 10,000 9,000 2,700 2,500 11,000 15,000 2040 11,000 15,000 10,000 10,000 5,400 2,500 11,000 20,000 10,000 2050 16,000 20,000 10,000 11,000 5,400 2,500 11,000 20,000 10,000 10,000 115,900 2060 22,000 24,000 10,000 12,000 5,400 2,500 11,000 20,000 10,000 20,000 136,900

Water Resources Next Steps

In order to develop these sources, the following must happen
TCEQ permitting of Indirect Potable Reuse projects Additional groundwater modeling
Sustained yield of Mesilla Bolson Yield of Hueco Bolson under changing circumstances

Stormwater Management

Stormwater Management
Drainage Design Manual (DDM) update is complete
Pending Crabtree Group, Inc. work on NW Master plan to incorporate any of their ideas Extensive public approval process next

Copia Pond (25 ac-ft) Added Q to Existing Ponds (7 ac-ft)

San Diego Pond (6 ac-ft)

Houston Pond (27 ac-ft)

Morenci Pond (28 ac-ft)

Armendariz Pond (6 ac-ft)

Magnolia Pond (9 ac-ft)

Magnolia System

Cebada System 3,031 cfs Gateway Pond (11 ac-ft)

175 cfs

Cebada Pond (7 ac-ft)

Channel 938 cfs

B&B Report 540 cfs URS Report cfs max Exist 205-260 cfs

Lower Magnolia Pond (14 cfs / 28 cfs) Dallas PS 170 cfs

Magnolia PS (175 cfs) 300 cfs

Cebada PS 785 cfs 590 cfs

Energy

Process Efficiency
Wastewater Completing Roberto Bustamante wastewater treatment plant analysis Starting Haskell Street wastewater treatment plant analysis Feasibility of chemical addition at all plants Initiating Bustamante efficiency design

Water Derceto energy management system implementation Programmatic improvements to SCADA Replacement of leak detection system

Energy - Outlook
Gas
Stable low pricing

Electricity
EPEC no increase Backup generation subject to bond issuance Drought makes KBH loads critical Solar still not economical

Aging Infrastructure

Rehabilitation - Wells
Aging Water Well Infrastructure EPWU routinely uses wells that are over 50 years old Evaluation of well construction materials and age of well to develop a systematic replacement plan Maintaining current well capacity (Replacement of old wells) Additional well capacity from new wells to meet future demand

Rehabilitation-Deferred Projects
PROJECT NAME Planned Sewer Line Phase 3 Planned Water Line Phase 8 Planned Water Line Phase 9 COST $2,500,000 $2,440,880 $1,131,400

Planned Water Line Phase 10

Planned Water Line Phase 11 Mesa-Crestmont 24Water Line Lone Star Force Main Boone Siphon Rehab Total

$1,060,250
$ 800,000 $1,000,000 $ 430,000 $ 180,000 $9,542,530

Strategic, Financial & Management Services

Financial Planning
Rate increases
Continued drought and emphasis on conservation will likely decrease revenue Maintaining bond ratings Debt service coverage at 2X Need to increase cash reserves Additional revenue will be needed to fund major water supply projects Reserve fund needed for major water supply projects

Continue to take advantage of low interest rate environment by refunding bonds and building infrastructure

Land Management
Phasing of master planned land Need to budget for infrastructure needed to serve the development Land management in accordance with revised City/PSB Land MOU Proactive approach to land management Annual declaration of inexpedient land City involved earlier in process Biannual report to City Council

Human Resources
Transition of President/CEO Succession Planning Many employees, including key managers, will be eligible for retirement within the next 1-5 years. Recruitment Would like to make amendments to City Charter

Information Technology
Maximize use of systems Cloud technology Access to date thru technology Shift from traditional IT infrastructure to an always-on, work anytime, anywhere environment Standardize SCADA system Continue following the recommendations in the IT Strategic Plan

Customer Service
Automated Meter Reading (AMR)
Implement for new development in master planned communities

Call Center and Emergency Response Dispatch Analysis

Out of City Projects, Research, Government Affairs

Out of City Services Colonias

Approach the Border Environment Cooperation Commission (BECC) about funding to update County Master Plan
Identify funding for remaining Colonias

Research
Define and identify CHIWAWA priorities CHIWAWA Concentrate Management Policy Analysis Project In progress with WateReuse and Water Research Foundation funds Could allow for opportunities to develop additional desal projects Possible additional research projects Triple bottom line analysis of desalination versus conventional water treatment

State Legislative Session in 2013

Water Conservation (reduce consumption - statewide) Implementation of State Water Plan (regional solutions) Desalination (concentrate disposal issues) Energy/Water (State monitoring Fed. Legislation for increased barriers, regulations, fees, etc.) Taxes (Revenue Generation, Education, increased sales tax, etc.) Expanded SRF Program Solar Power (not a priority)

Government/Legislative
Agendas to include: Federal: Water supply projects Providing reclaimed water to UTEP, Blackie Chesher Park, others State: Legislative Agenda Defense Funding for the State Water Plan Inclusion of water supply costs when charging impact fee City: - Possible assumption of Rio Bosque Park - Transfer of Palisades to City

Conservation & Communications

Per Capita Consumption

GPCD

230 220

Water Conservation Ordinance Adopted

210 200 190 180 170 160 150 140 130 120
1985 1991 1995 2001 2005 2011 2013
1987 1989 1993 1997 1999 2003 2007 2009 2012

Year 2000 Goal 160 gpcd Year 2010 Goal 140 gpcd Goal for 2020 130 gpcd

2012 135 gpcd

Conservation Goals 2013-14

Decrease consumption
Enforcement of water conservation ordinance to achieve compliance and increase awareness Voluntary reduction through conservation education campaign Convene Water Conservation Advisory Committee Water Smart Home Revisions to drought and water management rule

Conservation Goals 2013-14

Increase our visibility that fosters exposure of TecH2O to the region Increase attendance Robust events and workshops schedule Maintain the quality and manage the quantity of our educational programs Increase attendance and exposure of satellite facilities Increase revenue and funding streams that support our goals

Communications Update
Increased awareness of EPWU programs and initiatives Media relations and special events Social Media Twitter YouTube Facebook 26,957 El Paso residents reached Website Increased visits to conservation page by 75% Public education campaigns Conservation Less is the New More Stormwater (Illegal dumping and system improvements)

Communications Goals 2013-14

Keep customers at our website
Re-design More user-friendly, simplified Make website a true marketing tool More updated information Increased IT support

Continue public education campaigns

Conservation (increased efforts) Stormwater (Illegal Dumping and System Improvements) Sustainability

Public Comment

Next Steps
Review and agreement on parking lot items Tomorrow's session

Final Outcomes and Report