MONROE COUNTY WATER AUTHORITY ANNUAL REPORT

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Amelia Ryan
5 years ago
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1 ANNUAL REPORT

TO OUR CUSTOMERS: MANAGEMENT TEAM Nicholas A. Noce Executive Director Richard J. Metzger, P.E. Executive Engineer Raymond W.

Prestidge Director of Finance & Business Services MCWA supplies water to more than 25,000 fire hydrants.

is the safe, high quality drinking water that flows from taps in our homes every day.

On the pages of this report, however, we emphasize another aspect of safety the steps we take to ensure that fire

This is by no means a simple task, since MCWA supplies water to more than 25,000 fire hydrants.

hydraulics system and a diligent regimen of personal inspection and maintenance.

example in this report. The important thing is that the water is there and accessible when the need arises.

extensive training our employees participate in with local fire departments.

2 TO OUR CUSTOMERS: MANAGEMENT TEAM Nicholas A. Noce Executive Director Richard J. Metzger, P.E. Executive Engineer Raymond W. Benshoff Executive Director of Operations Stephen M. Savage, P.E. Director of Engineering Kathleen A. Prestidge Director of Finance & Business Services MCWA supplies water to more than 25,000 fire hydrants. When area residents associate the word safety with the Monroe County Water Authority, the most obvious connection is the safe, high quality drinking water that flows from taps in our homes every day. Clearly, that is a top priority at MCWA. On the pages of this report, however, we emphasize another aspect of safety the steps we take to ensure that fire fighters in our communities will always have the water they need to protect lives and property. This is by no means a simple task, since MCWA supplies water to more than 25,000 fire hydrants. Assuring that each hydrant is working and has the appropriate flow level depends on a sophisticated, underground hydraulics system and a diligent regimen of personal inspection and maintenance. Extinguishing a fire may require anywhere from 100,000 to more than a million gallons of water, as cited in an example in this report. The important thing is that the water is there and accessible when the need arises. Municipalities are not charged for these large amounts of water used for fires, or for the water used in the extensive training our employees participate in with local fire departments. And, we don t let budget concerns stand in the way of personnel or equipment needed to deliver water at all times through a smoothly functioning system. We strive to have a water supply infrastructure, including our fire hydrants that work to perfection. We redouble our efforts every year to keep it that way. That is our proud commitment to public safety. Nicholas A. Noce Nicholas A. Noce Executive Director BOARD OF DIRECTORS Scott D. Nasca Vice-Chairman Joseph R. Rulison Treasurer Wendy Bleier-Mervis Robert W. Hurlbut Allen S. Bernstein Sheryal A. Volpe

FOR MONROE COUNTY FIREFIGHTERS, THE WATER IS A GIVEN In the early hours of a cold Sunday morning in February 2017, a fire erupted in a vacant, twostory structure that had been the Country Inn and

With a huge head start on fire fighters, the inferno quickly escalated into a three-alarm blaze.

Rochester media statistically chronicled the magnitude of the event, noting the three-alarm blaze, the 17 responding companies, the eight hours of burning, and the significant financial loss.

3 FOR MONROE COUNTY FIREFIGHTERS, THE WATER IS A GIVEN In the early hours of a cold Sunday morning in February 2017, a fire erupted in a vacant, twostory structure that had been the Country Inn and Suites in Henrietta. The building, closed and undergoing renovations to become a senior living facility, had no fire alarm system and the sprinklers were out of service. With a huge head start on fire fighters, the inferno quickly escalated into a three-alarm blaze. Eventually, 17 fire companies assisted in the battle, and they managed to keep the fire from spreading to other nearby buildings. The structure was a total loss, but, fortunately, no one was injured. Rochester media statistically chronicled the magnitude of the event, noting the three-alarm blaze, the 17 responding companies, the eight hours of burning, and the significant financial loss. One statistic, however, was taken for granted as always and went unreported: the fire fighters used well over one million gallons of water. For the Monroe County Water Authority, a sudden draw of one million gallons is relatively rare, though it happens from time to time with major fires. In this case, those on duty at the Shoremont facility could watch the monitoring devices record the huge draw on the supply in real time. But it is common for fire departments and the public at large to take for granted that the water would be available when needed and that s just the way MCWA wants it. The Authority goes to extraordinary lengths to provide safety for the Greater Rochester community by having working hydrants and a sufficient supply of water for fire fighters to do their jobs. Providing this reliability depends on an extensive and sophisticated system that is constantly checked and rechecked to be sure it is working perfectly. MCWA s customer area includes more than 25,000 fire hydrants, arranged wherever possible to be no more than 500 feet apart. Each of five full-time inspectors checks approximately two dozen hydrants a day, spending some minutes on each to assure proper performance. Preventive maintenance includes winterizing the hydrants so they will continue to work, even on Rochester s most frigid days, and each hydrant gets a fresh coat of bright yellow paint at least once every seven years to keep it easily visible. The inspectors task is made even more challenging because hydrants in different towns may be made by different manufacturers, and each type has its own nuances. The inspectors make many routine adjustments, and they call on repair crews for more serious issues. MCWA strives to repair or replace any hydrants with a problem in 24 hours. MCWA offers training for any and all fire service organizations in the area that request it. A typical session includes instructions on the hydraulics of the system, what to expect and not expect, and exactly how to open and close a hydrant. The fire departments are also given contact information, so they will know who and how to contact the entity responsible for any given situation. The best fire, of course, is one that never starts. But when the inevitable happens, area fire departments are ready. And the Monroe County Water Authority is there to provide the most necessary commodity. A DAY IN THE LIFE OF A HYDRANT INSPECTOR Over the years, Kevin Harman has inspected hundreds of fire hydrants, operating as one of five MCWA inspectors who spends every day giving special care to these ubiquitous yellow guardians of public safety. In the summer, I can usually inspect 20 to 30 hydrants a day, Kevin said. In the winter, it might be 15 to 20. But every one gets the same routine to be certain it is operating and draining perfectly. The approach, he said, is to slowly open the valve on the hydrant to make sure the valve is working. When a fire hydrant is first opened, the barrel or housing of the hydrant fills with water. Hydrants are designed with a drain or weep hole at their base, which allows any water contained in the hydrant to drain out. This drainage keeps water from stagnating in the hydrant, keeps the internal parts of the hydrant from rusting or seizing up, and keeps the hydrant from freezing in the winter. When we find a hydrant that isn t properly draining, Kevin said, we might shut the nozzle and build up the pressure to force the water through the weep holes to clear them out. At times, we might have to flush the hydrant to get rid of any impediments. If we run into more significant problems, a repair crew is called out immediately. The goal, Kevin said, is to be sure every one of the 25,000 hydrants in the MCWA system is checked at least once a year. One statistic, however, was taken for granted as always and went unreported: the fire fighters used well over one million gallons of water. MCWA EMPLOYEE BRINGS PERSPECTIVE TO ROLE AS VOLUNTEER FIRE FIGHTER Even though his dad had been a long-time volunteer fire fighter in Mumford, Tom McGinnis hadn t been all that interested in joining him. Then came the huge ice storm that hit the Rochester area in March 1991, and Tom was one of the many volunteers who pitched in to deal with fallen trees, blocked roads, and downed wires. Turns out, he enjoyed the work and recognized the efforts of the fire department and he s been a Mumford fire fighter now for 27 years. He s also been an MCWA employee since 2001, which gives him some perspective on how fire departments rely on the Authority, and how the Authority goes to great lengths to provide an accessible water supply. When a huge blaze broke out on a spring afternoon at the Metalico scrap metal facility by the Rochester airport, the Mumford Fire Department was one of several crews responding. In this situation, however, Tom s role would be of knowledgeable advisor. Another MCWA employee and I went from work to the scene and realized that it would be best if water could be brought in by tankers, said Tom. We knew how to make that happen, and eventually tankers from East Avon, Scottsville and Mumford filled up multiple times and delivered some 3,000 gallons of water to the site. Whether making field service calls as a mechanic at MCWA or responding to fires with the Mumford volunteers, Tom s focus is on safety.

OPERATING STATISTICS (2008-2017 UNAUDITED) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 TOTAL WATER OUTPUT (MILLION GALLONS) Lake Ontario Production 18,846 17,931 17,816 18,844 17,991 17,090

4 OPERATING STATISTICS ( UNAUDITED) TOTAL WATER OUTPUT (MILLION GALLONS) Lake Ontario Production 18,846 17,931 17,816 18,844 17,991 17,090 17,811 18,063 18,483 16,552 Miscellaneous Purchases & Production ACTIVE CUSTOMERS Retail 170, , , , , , , , , Wholesale 17,687 19,296 19,385 20,404 20,588 21,928 17,603 18,125 18,608 18,570 Total 188, , , , , , , , , WATER SALES (MILLION GALLONS) Residential & Commercial 13,244 12,804 12,798 13,136 13,453 12,871 12,733 12,686 13,729 12,466 Large Commercial & Industrial 2,640 2,525 2,550 2,545 2,531 2,535 2,495 2,382 2,588 2,505 Wholesale 1,714 1,737 1,771 1,816 1,849 1,389 1,338 1,375 1,512 1,461 Total 17,598 17,066 17,119 17,497 17,833 16,795 16,566 16,443 17,829 16,432 WATER PURCHASES (NET EXCHANGE) 2,447 2,891 2,911 2,531 3,517 3,279 2,718 2,361 2,983 3,537 REVENUES (000 S OMITTED) Residential & Commercial $41,080 $40,153 $39,945 $41,689 $44,375 $45,018 $47,300 $48,987 $53,741 $52,189 Large Commercial & Industrial 5,117 4,919 4,968 5,164 5,184 5,242 5,439 5,308 5,901 5,865 Wholesale 3,147 3,175 3,239 3,482 3,554 2,661 2,646 2,829 3,205 3,245 Total Metered 49,344 48,247 48,152 50,335 53,113 52,921 55,385 57,124 62,847 61,299 Fire Service ,225 1,250 1,275 1,299 Interest Earnings 1, Federal Int. Subsidy Series 2010B Taxable Build America Bonds 2,059 2,003 1,855 1,859 1,852 1,865 1,876 Other 3,158 3,286 3,244 3,272 3,426 3,389 3,391 3,608 3,608 2,773 Total $54,617 $52,608 $52,285 $56,878 $59,527 $59,294 $61,975 $63,932 $69,740 $67,440 OPERATING EXPENSE (000 S OMITTED) Production/Transmission $12,416 $11,012 $12,459 $12,695 $13,685 $14,713 $12,904 $12,282 $13,102 $12,673 Engineering 2,265 2,427 2,620 2,761 2,407 2,852 3,373 3,554 3,709 3,448 Facilities, Fleet & Operations 11,195 10,771 11,122 11,509 11,716 11,201 12,975 12,933 11,671 12,831 Finance & Business Services 6,445 7,597 8,030 8,964 5,258 5,836 6,013 6,036 6,136 6,494 Administration ,909 4,640 6,865 8,217 8,629 7,437 Total $32,989 $32,499 $34,910 $36,685 $37,975 $39,242 $42,130 $43,022 $43,247 $42,883 NET REVENUE $21,628 $20,109 $17,375 $20,193 $21,552 $20,052 $19,845 $20,910 $26,493 $24,557 CASH CAPITAL PROGRAM $15,082 $9,503 $6,914 $5,835 $12,452 $4,633 $9,364 $16,443 $18,878 $14,662 CAPITAL LEASE PAYMENTS $1,584 $1,493 $1,436 $1,421 $1,376 $1,303 $1,231 $641 $620 $586 WATER REVENUE DEBT SERVICE $4,303 $4,310 $4,319 $8,193 $7,991 $10,020 $10,568 $10,619 $10,837 $10,863 COVERAGE EXCLUDING OBLIGATIONS ON LEASE FACILITIES

PERFORMANCE METRICS FINANCIAL HIGHLIGHTS MCWA POPULATION > 500K - TOP QUARTILE NATIONAL - TOP QUARTILE POPULATION > 500K - MEDIAN NATIONAL - MEDIAN Providing excellent service to our customers begins

5 PERFORMANCE METRICS FINANCIAL HIGHLIGHTS MCWA POPULATION > 500K - TOP QUARTILE NATIONAL - TOP QUARTILE POPULATION > 500K - MEDIAN NATIONAL - MEDIAN Providing excellent service to our customers begins with maintaining high standards of operational performance. We are again proud to report top percentile rankings in our performance as measured against national benchmarks for system integrity, labor efficiency, operations costs, and affordability. American Water Works Association (AWWA) Benchmarking PERFORMANCE INDICATORS Customer Accounts Per Employee WATER SALES (gallons In millions) Increase 2017 Metered (Decrease) Consumption From 2016 Residential & Commercial 12,536.7 (1,192.3) Industrial 2,434.3 (153.7) Water Districts 1,461.5 (50.5) City of Rochester 3, Total 19,969.7 (842.3) OPERATING REVENUES (dollars in thousands) Increase 2017 (Decrease) Amount From 2016 Residential & Commercial $52,189.3 $(1,552.1) Industrial 5,865.4 (36.0) Water Districts 3, Fire Services 1, Other 2,771.7 (833.6) Total $65,371.0 $(2,358.0) NATIONAL - TOP QUARTILE MCWA CITY OF SYRACUSE ERIE COUNTY ONONDAGA COUNTY NATIONAL - MEDIAN CITY OF ROCHESTER MONTHLY COST OF WATER COMPARISON 2017 Monthly Cost of Water for a Typical Customer Based on 7,500 Gallons per Month $27.11 $28.50 $29.70 $29.78 $33.09 $34.20 $35.12 OPERATING EXPENSES (dollars in thousands) Operating Departments Increase 2017 (Decrease) Actual From 2016 Administration $ 7,437.7 $(1,191.5) Production/Transmission 12,915.8 (428.6) Engineering 3,447.9 (261.5) Facilities, Fleet & Operations 12, ,159.2 Finance & Business Services 6, Total $43,125.9 $ (364.9) $ $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00

6 CUSTOMER BASE Large Commercial and Industrial Sales 1000 Gallons Lidestri Foods, Inc. (2 meters) 402,609 Xerox 203,419 Rochester Institute of Technology (4 meters) 155,437 Wegmans 1500 Brooks Avenue (2 meters) 63,539 Delta Sonic (4 meters) 60,375 Tech Park Owner, LLC (2 meters) 46,460 Bouduelle USA, Inc. (f/k/a Birdseye), Bergen (2 meters) 44,161 Darien Lake Theme Park 39,481 Nazareth College (2 meters) 28,135 Arctic Glacier 24,617 Subtotal 1,068,233 Remaining 472 Accounts 1,449,669 Total 2,517,902 Customers Sales Water Districts By Town 1000 Gallons Wayne County Water & Sewer 4, ,410 Genesee County 3, ,918 Village of Brockport 1, ,761 Sea Breeze Water District 3, ,633 Village of Hilton 1, ,262 Livingston County Water & Sewer 1,050 82,000 Village of Victor 1,011 71,189 Town of Clarendon ,078 Town of Murray ,464 Village of Holley ,121 Town of Farmington Total 18,570 1,461,454 Residential and Customers Sales Small Commercial By Town 1000 Gallons Town of Greece 33,055 2,166,369 Town of Irondequoit 16,644 1,027,027 Town of Henrietta 13, ,937 Town of Perinton 14, ,203 Village of Fairport 2, ,431 Town of Webster 13, ,050 Village of Webster 1, ,036 Residential and Customers Sales Small Commercial By Town 1000 Gallons Town of Penfield 12, ,903 Town of Brighton 10, ,813 Town of Gates 10, ,907 Town of Pittsford 8, ,996 Village of Pittsford ,574 Town of Chili 9, ,947 Town of Victor 4, ,620 Town of Ogden 4, ,703 Village of Spencerport 1,321 81,204 Town of Parma 3, ,155 Village of Hilton 192 7,295 Town of Hamlin 2, ,857 Village of East Rochester 2, ,279 Town of Mendon 1, ,572 Village of Honeoye Falls ,517 Town of Clarkson 1, ,384 Town of Sweden 1, ,042 Town of Riga 1,200 67,955 Village of Churchville ,472 Town of Rush 1,130 63,386 Town of LeRoy ,703 Village of LeRoy 1, ,252 Town of Pembroke ,720 Village of Corfu ,458 Town of Wheatland ,574 Village of Scottsville ,868 Town of Richmond 1,044 44,213 Town of Darien ,700 Town of West Bloomfield ,975 Town of Kendall ,206 Town of Stafford ,225 Town of Bergen ,067 Village of Bergen ,857 Town of Byron ,139 Town of Pavilion ,215 Town of Caledonia 32 2,341 Village of Caledonia Town of East Bloomfield Town of Lima Town of Covington Total 184,718 12,453,106 To review our audited financial statements, please visit:

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Organization Name Location Unit No. Career Field Rochester Pet Sitting Monroe County Post 444 Animal Careers Lollypop Farm Fairport Post 99 Animal

Organization Name Location Unit No. Career Field Rochester Pet Sitting Monroe County Post 444 Animal Careers Lollypop Farm Fairport Post 99 Animal Careers American Institute of Architects Rochester Post