2000-2001 Performance Report and 2001-2002 Business Plan

Water and Sewer System

City of Winston-Salem, N. C. October 2001

Contents
Page Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Description of Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Performance Information by Program:

I. II. Water Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Water Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

III. Wastewater Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 IV Wastewater Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 V. Biosolids Disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 VI. Industrial Waste Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 VII. Billing/Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Financial Information:
I. Operating Budget Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

II. Capital Improvement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Managements Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Appendix (Organizational Chart, Maps, Fees, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

ii

Mission Statement

The mission of the Winston-Salem City/Forsyth County Utilities Division is to treat and distribute water and collect and treat wastewater in compliance with all State and Federal regulations, and maintain the lowest cost to customers of any major system in North Carolina.

-1-

Description of Programs
1. Water Treatment. This division operates two conventional water treatment plants. The R.W. Neilson plant is located in the southwestern portion of the county and treats raw water supplied by the 95 million gallon per day capacity Idols Pump Station. The R.A. Thomas Plant is located near the downtown area and can treat both river water and water from the city-owned Salem Lake. The plants have a combined capacity of 72 million gallons per day. This capacity is anticipated to be exceeded by the year 2004; therefore, a new water treatment plant is currently under design with plans for construction to be completed by that time. Water Distribution. This division provides potable water to residential, commercial and industrial customers. The water distribution system roughly covers the entire county with the exception of the northeastern portion. The distribution system consists of approximately 1,833 miles of water mains ( July 2001). This division maintains the water distribution system including mains, valves, hydrants, connections and meters. It installs water connections at the request of customers, services and changes water meters, performs cut-ons and cut-offs at the request of customers and/or the Billing Office, and oversees the backflow prevention program. Wastewater Collection. This division provides wastewater collection to residential, commercial and industrial customers. The sewer system serves approximately 64% of the occupied dwellings/businesses within the county. The wastewater collection system consist of approximately 1,353 miles of sewer mains ( July 2001). This division maintains the collection system including the mains, manholes, sewer connections, and force mains. It installs sewer connections at the request of the customers. Wastewater Treatment. This program includes two wastewater treatment plants and 44 wastewater pump stations. The Archie Elledge plant is located on the southwestern side of Winston-Salem and has a capacity of 30 million gallons per day. The Muddy Creek Wastewater treatment plant is located on the southern border of Forsyth County and is permitted for 21 million gallons per day. Biosolids Disposal. This program is responsible for disposing of the wastewater treatment plant biosolids in a manner that is considered beneficial reuse. Liquid wastewater sludge is applied to farm land in agronomic rates that provide valuable nutrients to the farm operators but is controlled so that operators are protected from over fertilizing or any harmful constituents that may be present in the sludge. Industrial Waste Control. This is the branch of Utilities Division that regulates industrial dischargers to the wastewater system. This program is responsible for determining surcharge bills for the customers as well as enforcing discharge permits that protect the wastewater treatment facilities. Billing/Customer Service. This program is responsible for ensuring that accurate, timely bills are issued and is instrumental in answering customer questions about water and sewer bills. This program is also responsible for issuing new water/sewer connection permits, processing service request and requests for transfer of service, in addition to answering questions about accounts disconnected for non-payment. Beginning in January 2001, the Customer Service and Water Billing Operations were transferred to the City of Winston-Salems Revenue Department.

2.

3.

4.

5.

6.

7.

-2-

Performance Information by Program I. Water Treatment

Program Goals 1. To consistently produce drinking water that meets or exceeds all regulatory requirements.

2. To produce drinking water in a manner that is competitive and efficient, allowing the City/County Utility Commission to maintain the lowest rates of any major city in North Carolina. 3. To provide exceptional service to all customers. 4. To operate the water treatment plants without employee injuries or accidents. Performance Measurements Effectiveness Actual 1999-00 Objective 2000-01 Actual 2000-01 Objective 2001-02

Number of Drinking Water Standards violated per year Ratio of average daily demand to system capacity Number of lost time accident per year Number of water quality samples analyzed due to complaints

0 60% 1 110

0 61% 0 100

0 60% 0 108

0 61% 0 100

Efficiency Personnel cost per million gallons* Energy cost per million gallons Other operating cost per million gallons of water produced Total Cost per million gallons $124 $106 $118 $349 $136 $114 $112 $362 $143 $113 $122 $378 $148 $114 $118 $380

Workload Indicators * Million gallons per day (average)** Million gallons per day (maximum) 43.4 63.7 44.4 66.0 41.2 58.0 43.5 66.0

Personnel cost increase shown is due to implementation of the new market-based pay plan which began in July 2000. ** The decrease in water production is due to less consumption by our industrial customer base.

-3-

I. Water Treatment (cont.)

FY 2000-01 Program Accomplishments

C C

Began construction of Northwest Water Treatment Plant. Began construction of the access road and transmission main from the Yadkin River to the NWWTP site. All permits were obtained for the construction of the NWWTP and related facilities. Completed detailed design for the dam/intake/raw water pump station at the Yadkin River. Land was obtained for future Neilson Water Treatment Plant expansion. Began Competitive Assessment of Water Division. Began construction of the 2 million gallon Glenn High Water Tank.

C C C C C

FY 2001-02 Key Objectives

C C C

Acquire land for water treatment residuals disposal. Complete the cleaning of the second 15 million gallon raw water reservoir. Complete the rebuilding and upgrades to various screens, pumps and valves at remote water pumping facilities. Continue the improvements of Supervisory Control and Data Acquisition (SCADA) at both water plants. Begin design of Thomas Water Treatment Plant standby generator and finished water pumping facility. Complete upgrade of the 421 Pumping Station. Complete upgrade of Thomas filter gallery and valving. Complete construction of the access road and transmission main from the Yadkin River to the NWWTP site. Complete construction of the 2.0 million gallon elevated storage tank at Glenn High. Begin construction of the dam/intake/raw water pump station at the Yadkin River. Maintain construction schedule for the NWWTP.

C C C C

C C C

-4-

Performance Information by Program II. Water Distribution

Program Goals 1. Supply potable water to residential, commercial, and industrial customers in sufficient quantity to meet customer demands. 2. Install new water connections at the request of customers. 3. Maintain the water distribution system (includes mains, valves, hydrants and connections/ meters). Performance Measurements Effectiveness - Percent of 3/4" water connections installed within ten days of permit issuance Percent of water meters changed out (based on 97,369 - 07/99) Unaccounted Water Number of Lost Time Accidents Actual 1999-00 Objective 2000-01 Actual 2000-01
Objective

2001-02

80%*

100%

^^
10.00% 7.70% 0

100%

7.81% 9.50% 5

10.00% 5.00% 0

10.00% 5.00% 0

Efficiency - Work hours per meter changed out Work hours per 3/4" water connection installed

0.28

0.30

^^ ^^
10,157 533

0.30

17.93

16.50

16.50

Workload Indicators - Meters changed out - 3/4" water connections installed - Main Breaks

7,500 464 377

9,600 500 225

^^

10,500 500 377

Water Distribution System contained 1,833 miles of water mains as of July 2001.
^^ The System that maintains this production data was not supported for a portion of the year; therefore,

data is unreliable and incomplete.

* There was a large increase in connection requests associated with price increases that went into effect
July 1, 2000. Staff is researching the use of contracted resources to prevent future delays in service.

-5-

II. Water Distribution (cont.)

FY 2000-01 Program Accomplishments

C C

Construction of the raw water main for the NWWTP is one-third complete. Construction of Phase I of 30"/36" main from the Thomas Water Plant to the Union Cross Tank is complete. Design is complete on the 30"/36" Skylark/Walker Road main from the NWWTP to Ziglar Road. Design is complete on the hydraulic tie recommended by Pitometer to tie Union Cross Road to NC 66 via High Point Road and Watkins Ford Road. Design complete on Phase I of the 24" water main to be located along Lewisville-Clemmons Road as recommended by the Pitometer Study.

C C

FY 2001-02 Key Objectives

C C

Design will begin for Phase II 30"/36" main from Thomas Water Plant to the Union Cross Tank. Begin design and construction for replacement of 2-inch and smaller mains as identified by the Construction & Maintenance staff. Perform a Unidirectional Flushing Pilot project to use as a planning/learning phase for a unidirectional flushing team. Contract backflow prevention testing and rebuilding. Contract connection installation, utilizing crews for repair and maintenance needs on the system. Evaluate water main rehabilitation options. Perform an unaccounted for water audit on 6-month data.

C C C C

-6-

Performance Information by Program III. Wastewater Collection

Program Goals

1. Collect and transport wastewater discharged by residential, commercial and industrial customers to the Wastewater Treatment Plants. 2. Maintain the wastewater collection system to minimize blockages and sanitary sewer overflows (SSOs) through regular washing, dragging, right-of-way (ROW) maintenance and inflow/infiltration studies. 3. Install new and renewed sewer connections at the request of our customers.

Performance Measurements
Actual Objective Actual Objective

Effectiveness - Percent of 4" sewer connections installed within ten days of permit issuance - Mainline Stoppages per mile of sewer main - SSO Volume (gallons) per mile of sewer main S Number of lost time accidents Efficiency - Work hours per mile of right-of-way mowed (City) - Work hours per mile of sewer main cleaned - Sewer Volume spilled per gallons treated Workload Indicators - Number of new 4" sewer connections installed - Mainline sewer stoppages - Miles of sewer mains cleaned - Total SSO Volume (MG)

1999-00

2000-01

2000-01

2001-02

75% 7.01 870 1

100% 7.00 750 0

^^
7.02 394 1

100% 7.00 375 0

32

30.50 17.00 0.008%

^^ ^^
0.0045%

30.50 17.00 0.0045%

^
0.0094%

298 189

^
1.154

250 185 75 1.0

257 193 78.8 0.533

250 185 80 0.5

Wastewater Collection System contained 1,353 miles of sewer mains as of July 2001.

^ This data is unreliable due to inaccuracies in the reporting of the performance report.
^^ The System that maintains this production data was not supported for a portion of the year; therefore,
data is unreliable and incomplete.

-7-

III. Wastewater Collection (cont.)

FY 2000-01 Program Accomplishments
C C

Reduced Sanitary Sewer Overflow (SSO) spill volume by 53.8% from the previous fiscal year. Contracted sewer outfall reclamation for recovering overgrown outfalls, as an exercise in preventative maintenance and also as needed for repair work.

C C

Contracted services for Chemical root control in sewer mains. Selected CDM as an engineering firm to develop a master plan for GIS/GPS inventory of the sewer system. Completed the Master Plan and have received a proposal for beginning the inventory in accordance with the plan. Completed and submitted application to NCDENR for the required Collection System Permit. Selected CDM as the engineering firm to evaluate the current condition of the Ardmore Branch Outfall and to design a rehabilitation plan for making improvements. Transferred easement/Right-of-way mowing services to Roadway Appearance Division and are currently evaluating the feasibility of this plan.

C C

FY 2001-02 Key Objectives

C C

Complete the design and begin construction of the Ardmore Branch Outfall. Award a contract for cleaning and CCTV inspection of sewer mains for meeting the annual cleaning requirements and also determining system repair and rehabilitation needs. Award a pipe lining contract to begin lining sewer mains known to have high inflow/infiltration and other problems warranting immediate rehabilitation. Continue the design of the Abbotts Creek Pump Station and sewer system. Complete design and begin construction of the South Fork Pump Station and force main. Continue design of the Walkertown sewer system. Continue utilizing contracted services for chemical root control in lines with high root infiltration, to assist in minimizing required maintenance, and to assist in reducing sewer overflows. Begin implementation of requirements from the Collection System Permit.

C C C C

-8-

Performance Information by Program IV. Wastewater Treatment

Program Goals
1. Operate wastewater treatment plants and pump stations to meet or exceed all regulatory requirements. 2. Treat wastewater in a manner that is competitive and efficient allowing the City/County Utility

Commission to maintain the lowest rates of any major city in North Carolina. 3. Deliver exceptional service to all customers. 4. Operate the wastewater treatment facilities without employee injuries or accidents.

Performance Measurements Effectiveness

Number of monthly NPDES permit violations Number of weekly/monitoring (minor) permit violations Monetary value of fines assessed by North Carolina Department of Environment and Natural Resources Number of lost time accidents Actual 1999-00 Objective 2000-01 Actual 2000-01 Objective 2001-02

1*

$0 5

$0 0

$0 1

$0 0

Efficiency - Personnel cost per million gallons Energy cost per million gallons Operational costs per million gallons of wastewater treated Total cost per million gallons Total cost per pound of BOD

$306 $118

$329 $137

$331 $129

$345 $131

$310 $734 $0.27

$393 $859 $0.34

$343 $803 $0.28

**$410 $886 $0.31

Workload Indicators - Million pounds of BOD treated Million gallons per day (average) Million gallons per day (maximum)

33.14 33.67 48.33

31.43 34.50 --

34.09 32.69 50.04

35.20 34.20

* The violation shown was due to an industrial spill which temporarily inhibited the Elledge Plants nitrification process. ** Operational cost have increased due to the operation of the dewatering facility. The FY 2000-01 operational cost only reflect a part-time operation of this facility.

-9-

III. Wastewater Treatment (cont.)

FY 2000-01 Program Accomplishments
C

Completed construction and began operating the Biosolids Dewatering Facility at the Elledge Plant. Completed replacement of the floating covers on the #2, #3, and #4 digesters at the Elledge Plant.

Completed construction of the Activated Sludge Basin Step Feed Project at the Elledge Plant. These facilities are expected to save an estimated $300,000 annually in power costs. Continued revising the 201 Facility Plan (Required for State Revolving Loan Funding). Continued installation and start-up of a new MAXIMO inventory and maintenance management system. This system is accessible by all utility plants via the citys PC network. Initiated design of upgrades for the Abbotts Creek and South Fork Pumping Stations. Began design for odor control facilities at the Muddy Creek Plant.

C C

C C

FY 2001-02 Key Objectives

C

Complete evaluation of sludge drying as an alternative method of biosolids disposal for the Wastewater Treatment Plants. Replace all three 72 inch diameter screw pumps at the Muddy Creek Plant. Design and begin construction of odor control facilities for the Muddy Creek Plant and for the Kernersmill Pumping Station. Complete replacement of the digester covers at the Elledge Plant. Complete design and begin construction of upgrades to the South Fork and Abbotts Creek Pumping Station. Design and construct improved mixing facilities at the Frye Bridge Road Dechlorination Facility which serves the Muddy Creek Plant. Replace the three FMC Bar Screens at the Elledge Plant. Design and construct mixers for the secondary digesters at the Elledge Plant.

C C

C C

C C

-10-

Performance Information by Program V. Biosolids Disposal

Program Goals 1. To dispose of wastewater treatment plant biosolids in an efficient and environmentally safe manner and follow all State and Federal requirements. 2. To deliver exceptional service to all land application customers.

Performance Measurements
Effectiveness Actual 1999-00 Objective 2000-01 Actual 2000-01 Objective 2001-02

Percentage of times state permit requirements are met

98%

100%

97%

100%

Efficiency - Cost per Dry Ton of biosolids land applied* $189.92 - Cost per Dry Ton of biosolids dewatered and landfilled $417.15 - Average cost per Dry Ton of biosolids disposed of $231.20 - Percent of plant sludge production handled by land application* 68% Workload Indicators - Dry Tons produced - Dry Tons landfilled - Dry Tons land applied - Dry Tons disposed of - Million Gallons applied** - Number acres permitted - Number of customer complaints associated with Land Application *

$191.00 $425.00 $236.00 80%

$189.76 $328.30 $208.32 79%

$194.35 $350.00 $230.00 80%

9,283 1,405 6,328 7,733 30.10 6,623 0

9,300 2,400 6,900 9,300 33 8,500 0

8,480 1,098 7,098 8,196 34.4 6,910 4

9,300 2,400 6,900 9,300 33 8,500 0

The actual percentage of sludge production handled by land application was only 68.2% during FY 19 99-00 versus a target of 80%. Our inability to meet the goal was primarily caused by unavailability of land and abnormally wet weather during the spring of 2000. Although the percentage of total sludge production disposed of by land application during FY 2000-2001 was only one percentage point below the goal, we expect that continued development in the region will result in the loss of enough suitable farm land over the next seven years to prevent our b eing ab le to utilize land ap plicatio n as the p rimary m eans o f Biosolids D isposal. ** Sludge is measured in dry tons for production purposes based on percent solids of the liquid product. The Land Application C ontract is measured in liquid gallons.

-11-

V. Biosolids Disposal (cont.)

FY 2000-01 Program Accomplishments
C

When compared to the cost of dewatering and disposal in a lined landfill facility, the current Biosolids Disposal Program represents a net annual savings of $983,360 for the City/County Utility Commission.

FY 2001-02 Key Objectives

C

Continue to make use of all available permitted land in order to land apply 33 million gallons

of liquid sludge each year.

C

Evaluate modifying the program to include the land application of dewatered sludge and evaluate construction of cake storage facilities. Initiate an engineering review to evaluate our long-term biosolids disposal strategy.

-12-

Performance Information by Program VI. Industrial Waste Control

Program Goals 1. Protect the publicly owned treatment works (POTWs) from the potentially harmful effects of industrial discharges. 5. Provide a means of billing industrial customers for surcharges by quantifying Biological Oxygen Demand and Suspended Solids content of the waste stream.

3. Provide assistance to the industrial customers in meeting the Citys Sewer Use Resolution. 4. Deliver exceptional customer service to all customers. Performance Measurements
Effectiveness Actual 1999-00 Objective 2000-01 Actual 2000-01 Objective 2001-02

Number of Discharge Permit violations (minor) issued to significant industrial users (SIU) Percent of SIUs in compliance with permit Percent of SIUs in compliance with enforcement orders

134 85% 100%

75 90% 100%

83 85% 100%

70 90% 100%

Workload Indicators Number of SIU inspections performed Number of commercial site inspections Number of permits reissued/modified Surcharge Revenue (Million Dollars)* Number of enforcement activities initiated by IWC staff 37 45 10 2.9 2 40 5 10 2.0 2 41 5 8 2.5 1 41 10 41 2.3 1

Surcharge Revenue Objective for 2002-02 is lower than 2000-01 actual due to a slow down in the economy.

-13-

VI. Industrial Waste Control (cont.)

FY 2000-01 Program Accomplishments
C

Conducted a workshop for industrial dischargers to educate and assist them in ways to reduce discharge violations. Developed a draft Oil and Grease Control Policy as required by State regulations regarding Sanitary Sewer Overflows. Developed a Standard Operating Procedures Manual for Flow Monitoring for use as a training tool and to provide documentation of responsibilities.

FY 2001-02 Key Objectives

C

Work with the Utility Commission and NCDENR to approve and adopt revisions to the Sewer Use Resolution. Implement the Oil and Grease Control Program.

- 14 -

Performance Information by Program VI. Billing/Customer Service

Program Goal 1. Read all residential meters in no less than 50 days or no greater than 70 days, all commercial meters in no less than 25 days or no greater than 35 days. 2. Render all bills within 10 days of reading date. 3. Process expeditiously all field investigation requests. 4. Process expeditiously all new connection (permit) requests. 5. Process new service and transfer of service per customers request. Performance Measurement Effectiveness
-

Actual 1999-00 1/100 1/$.98 2.7% 99%

Objective 2000-01 1/102 1/$.99 0% 100%

Actual 2000-01 1/100 1/$.98 0% 100%

Objective 2001-02 1/102 1/$.99 0% 100%

Ratio of misread meters to meters read Ratio of revenue billed to revenue collected Percent of time billing period exceeded 70 days Percent of field investigations completed within 5 days (new objective for 1999-00)

Efficiency Cost per bill rendered Work hours per field investigation Work hours per meter read $4.14* .28 .030 $3.90 .20 .030 $4.53* .25 .030 $4.00 .20 .30

Workload Indicators * Number of residential meters read Number of commercial meters read Number of field investigations Number of new permit requests Number of accounts 555,899 9,087 29,610 2,995 100,142 572,893 9,084 46,000 2,800 102,568 582,145 9,189 29,064 2,631 102,755 585,000 9,200 32,000 2,800 103,000

Includes period 13 charges as of August 14, 2001.

- 15 -

VI. Water Billing/Customer Service (cont.)

FY 2000-01 Accomplishments
C

Collected $36,736,083.95 in water, sewer, storm water and industrial surcharge revenues from July 1, 2000 - June 30, 2001. Reorganized with the Revenue division to improve customer service and operation efficiencies. Began the replacement of the current Utility Billing/Customer Service system with the Cayenta System. Placed various billing reports on Cold storage.

C C

FY 2001-02 Key Objectives

C

To bill between $38,500,000 and $40,000,000 between July 1, 2001 and June 30, 2002 and to collect within or under 1% of total annual billings. Complete the Utility Billing/Customer Service system implementation on schedule. Update policies and procedures to support the new system. Analyze potential realignment of resources for more efficient and effective business practices.

C C C

- 16 -

Operating Budget Summary

Expenditures by Program Actual FY 99-00 Administration Water Distribution Billing/Customer Service W ater Treatment Wastewater Collection W astewater Treatment Assessment Collection Subtotal Deb t and Lease Expe nse Total Expenditures by Object Personnel Supplies and Services Subtotal Capital Outlay Deb t and Lease Expe nse Capital Contributions Transfer to Capital Projects Fund Total Resources by Category Actual FY 99-00 W ater Charges Sewer Charges Industrial Surcharge Investment Inco me(Lo ss) Other Fund Balance Appropriation Total Resources Addition to Capital Reserves 17,279,434 15,261,277 2,828,533 7,118,010 2,712,144 0 45,199,398 5,941,889 Actual Positions Full -Time Part-Time (Person W eeks) FY 99-00 320 0 Budgeted FY00-01 18,954,000 16,154,000 2,400,000 3,500,000 2,265,500 0 43,273,500 2,528,300 Budgeted FY00-01 316 0 Actual FY00-01 17,292,275 15,733,264 2,623,587 (6,060,510) 3,110,261 0 32,698,877 (8,629,217) Actual FY 00-01 316 0 Budgeted FY 01-02 20,905,000 18,056,040 2,768,780 3,500,000 2,700,000 0 47,929,820 5,847,370 Budgeted FY 01-02 299 0 879,970 5,621,875 2,430,701 5,564,904 3,735,926 9,066,088 140,715 27,440,179 11,600,375 39,040,554 Actual FY 99-00 11,841,894 15,598,285 27,440,179 119,955 11,600,375 0 97,000 39,257,509 Budgeted FY 00-01 983,760 5,431,090 2,230,790 5,893,910 3,868,640 11,468,040 436,000 30,312,230 10,315,650 40,627,880 Budgeted FY 00-01 12,911,370 17,400,860 30,312,230 117,320 10,315,650 0 0 40,745,200 Actual FY 00-01 1,260,243 6,244,570 2,696,577 5,677,523 3,685,290 9,579,115 128,426 29,271,744 11,138,098 40,409,842 Actual FY 00-01 12,749,526 16,522,218 29,271,744 153,180 11,138,090 765,080 0 41,328,094 Budgeted FY 01-02 1,046,710 5,804,870 676,480 6,287,930 3,806,880 11,864,810 2,461,430 31,949,110 10,072,950 42,022,060 Budgeted FY 01-02 13,114,900 18,834,210 31,949,110 60,390 10,072,950 0 0 42,082,450

- 17 -

Capital Improvement Plan

ENVIRONMENTAL HEALTH
Pro ject T itle Budget Year 2001-2002 Planning Year 2002-2003 Planning Year Planning Year 2004-2005 2003-2004 Planning Year 2005-2006 Total Proposed

Expenditures Water and Wastewater Treatment Digestor Cover Replacements #6, #7, and #8 Digestor Gas Utilization at Elledge WWTP Elevated Tank Rehabilitation Project Thomas Plant Finished Water Pump Station Northwest W ater Treatment Plant Residuals Manageme nt Evaluation/Storage Screw Pump Replacement - Muddy Creek WWTP South Fork Pum p Station and Force M ain Replacement W ater and W astewater Plant Cap ital Improvements W ater Treatment Plant Modernization - Phase II Total Funding Sources Revenue Bonds $35,162,470 $6,296,000 $7,107,500 $336,000 $0 $48,901,970 2,300,000 1,450,510 672,000 1,150,000 26,400,000 300,000 1,039,590 600,000 1,250,370 0 $35,162,470 0 0 336,000 4,140,000 0 1,320,000 0 0 0 500,000 $6,296,000 0 0 332,500 0 0 0 0 0 0 6,775,000 $7,107,500 0 0 336,000 0 0 0 0 0 0 0 $336,000 0 0 0 0 0 0 0 0 0 0 $0 2,300,000 1,450,510 1,676,500 5,290,000 26,400,000 1,620,000 1,039,590 600,000 1,250,370 7,275,000 $48,901,970

-18-

ENVIRONMENTAL HEALTH
Pro ject T itle Budg et Year 2001-2002 Planning Year 2002-2003 Planning Year 2003-2004 Planning Planning Year Year 2004-2005 2005-2006 Total Proposed

Water Distribution and Wastewater Collection 2-Inch W ater M ain Re place ment (W inston-Salem Only) 16-inch Water M ain - Walkertown W ater Tank 30-inch & 36-inch Feeder M ains from the Northwest Water Treatment Plant 30-inch & 36-inch Feeder M ains to the Union Cross Elevated Water Tank Annexation W ater and Sewer Projects - Clemmons Annexation W ater and Sewer P rojects - Kernersville Annexation Water and Sewer Projects -Winston-Salem Ardmore Branch Outfall Clem mon s 24-In ch W ater Line Extension (980 Service Level) Kernersville Sewer System Improvements Lower Abb ots Creek Infrastructure W astewater Co llection S ystem Im provements W ater and Sewer Utilities Mapping Project W ater D istribution System Improvements Total Funding Sources Revenue Bonds $486,000 $500,000 $500,000 0 185,300 1,590,700 3,899,350 0 0 1,140,390 0 0 621,380 621,380 621,380 963,410 639,230 480,190 5,441,300 1,527,100 0 377,360 724,700 0 150,000 500,000 650,000 480,000 483,500 0 500,000 4,152,780 3,666,220 625,000 625,000 560,000 100,000 0 0 800,000 800,000 800,000 $15,584,190 $10,758,990 $8,868,490 $0 $0 $1,486,000 0 0 1,776,000 0 0 3,899,350 0 0 1,140,390 0 0 1,864,140 749,660 210,720 3,043,210 0 0 6,968,400 0 0 1,102,060 0 0 1,300,000 0 0 963,500 0 0 8,319,000 0 0 1,810,000 0 0 100,000 0 0 2,400,000 $749,660 $210,720 $36,172,050

$15,584,190 $10,758,990 $8,868,490

$749,660 $210,720 $36,172,050

-19-

Managements Comments

<

The challenge for the water and sewer system management is to continue to provide high quality services and products to the customers while maintaining low costs. The water and sewer rates for the City-County Utility Commission are currently among the lowest in the southeastern United States and the Commission has the lowest combined residential water and sewer rate in North Carolina when compared to the other major cities. The Commission also maintains one of the highest bond ratings in the U.S. for a public utility. Over the past several years, a tremendous effort has been made to improve safety awareness and training. Employees serve on various teams of a Central Safety Committee to increase employee awareness and knowledge. The results of this effort have been demonstrated through a significant decrease in accidents requiring medical attention over the past two years. The division also has been very active in the Employee Suggestion Program. During the past year employee suggestions have been implemented with projected savings of over $130,736. The Water Treatment Program will have as its major challenge for the next two years the construction of the proposed Northwest Water Treatment Plant. Incorporating an efficient design with the capabilities to comply with pending water quality regulations will tax both the staff and the design engineer working on the project. Other challenges for the water treatment program will be preparing to operate the new facility with minimal impact on staffing requirements. Water Distribution is not targeted for major changes in the upcoming year. The Pitometer Study has been completed and a number of recommendations have been made to prepare for future growth and improvements to our system. Also, over the next several years, we propose to identify and replace our 2-inch mains. The division is working on a flushing program to deal with water quality issues and will evaluate the Backflow Prevention Program to determine whether to privatize the program or increase staff to meet goals. Other objectives will be focused on meeting our established goals. Wastewater Collection will have several new challenges during the next year. New enforcement policies implemented during 1998-99 and new reporting and permitting requirements included in the Clean Water Act of 1999 will have significant impacts on the operation of the collection systems. Capital Improvement Programs already in place to deal with rehabilitation of the collection system will be emphasized during the coming years. The primary focus for the Wastewater Treatment program will be to continue to find and implement cost cutting strategies. The operations staff reduced the cost of wastewater treatment by 6% over 1998-1999. Actual costs were 15% below budgeted cost for 1999-2000. 20

<

<

<

<

<

<

<

Managements Comments (cont.)

<

The Biosolids Disposal program and the Land Application program will continue to face new challenges in acquiring suitable land for applying wastewater plant sludge. Each year more and more of the land in surrounding counties is developed or sold making it unavailable for the program. Regulations pertaining to this program continue to restrict operational flexibility. The staff is continuing to research alternative solutions for the program including expanding into other counties and new technologies for the treatment of the sludge. The Customer Service program will be undertaking the design and implementation of a new billing system. This project will require a major allocation of time for the management team of this program. The goals of this project include the reduction of system maintenance and operational costs as well as improved customer service functions. Management will be undertaking an update of the 1988 Water and Sewer Rate Study to maintain an equitable balance of charges for water and sewer service.

<

<

21

Appendix

22

Contents

Page # Related Boards and Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1 Organization Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-2 Utility Rate Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-3 Asset & Liability Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-4

ii

Related Boards and Commissions

The City-County Utility Commission, an eleven member citizen board, was created by the WinstonSalem Board of Alderman and the Forsyth County Commissioners in 1976 to oversee the water and wastewater operations in Forsyth County. The Commissioners are jointly appointed by the Board of Aldermen and the County Commissioners.

Winston-Salem/Forsyth County Utility Commission

J. Hugh Wright, Chairman J. Andrews Hancock George L. Little, Jr. Stephen D. Poe Melvin J. Scales J. Hill Stockton

Pat W. Swann John A. Redding, Sr. Raymond D. Thomas L.C. Woolard, Sr. Charles A. Coone

A-1

A-2

Utility Rate Comparison

Water & Sewer * Winston-Salem Durham Charlotte Greensboro Raleigh $28.78 (1) $56.28
(2)

BOD** $ 0.14/lb $ 0.15/lb $ 0.25/lb $ 0.08/lb $ 0.33/lb

Suspended Solids** $ 0.08/lb $ 0.06/lb $ 0.16/lb $ 0.08/lb $ 0.08/lb

$49.34 (3) $45.10 (4) $40.59 (5)

Water rates are based on an average residential customers monthly bill (1,600 Cubic Feet). Changes shown here include water, sewer, and any obligatory water and sewer administrative fees. ** BOD and Surcharge rates are per pound of pollutant. Notes: (1) Sewer rate increase effective January 1, 2000. W-S anticipates a 5% increase on water and sewer rates effective January 1, 2001. (2) No rate increase for fiscal year 2000-01. (3) Water and sewer rate increase effective July 1, 2000. (4) No rate increase for fiscal year 2000-01. (5) No rate increase for fiscal year 2000-01.

A-3

Asset and Liability Summary _________________________________________

ASSETS:

2001

2000

Cash and Investments Restricted Cash and Investments Restricted Investments Held by Trustee All Other

28,451,215 $ 108,858,564 350,549,478

18,002,426 83,257,763 342,301,627

Total Assets

487,859,257 $

443,561,816

LIABILITIES AND FUND EQUITY:

2001

2000

Total Current Liabilities Contracts Payable from Restricted Assets Total Long-term Liabilities Total Liabilities

5,254,750 684,678 171,421,888 177,361,316

$ 4,964,158 1,051,034 116,165,386 122,180,578

FUND EQUITY Contributed Capital Retained Earnings Total Fund Equity

173,100,436 137,397,505 310,497,941 $ 487,859,257

173,100,436 148,280,802 321,381,238 $ 443,561,816

Total Liabilities and Fund Equity

A-4