ORANGE WATER AND SEWER AUTHORITY

Transcription

1 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. AGENDA MEETING OF THE OWASA BOARD OF DIRECTORS THURSDAY, JANUARY 26, 2012, 7:00 P.M. CHAPEL HILL TOWN HALL In compliance with the Americans with Disabilities Act, interpreter services are available with five days prior notice. If you need this assistance, please contact the Clerk to the Board at or aorbich@owasa.org. Announcements 1. Announcements by the Chair A. Any Board member who knows of a conflict of interest or potential conflict of interest with respect to any item on the agenda tonight is asked to disclose the same at this time. B. Update on the January 24, 2012 Presentation to Orange County Board of County Commissioners C. Chapel Hill Town Council Representatives and Chapel Hill Appointees to the OWASA Board of Directors will meet on Monday, January 30, 2012 at 8:00 AM in the OWASA Boardroom to discuss items of mutual interest 2. Announcements by Board Members A. Update on the January 26, 2012 Finance Committee Meeting (Amy Witsil) 3. Announcements by Staff A. Informational Presentation to Chapel Hill s 2020 Comprehensive Plan update process on Monday, February 6, 2012 at 5:00 PM, Chapel Hill Town Council Chamber (Ed Holland) Petitions and Requests 1. Public 2. Board 3. Staff CONSENT AGENDA Information and Reports 1. Semi-Annual Contractor and Consultant Performance Report (Stuart Carson) REGULAR AGENDA Information and Reports 2. Presentation by Robin Smith, Assistant Secretary for Planning and Policy in the NC Department of Environment and Natural Resources (NCDENR), on NCDENR s Ongoing Study of the Potential Development and Regulation of Shale Gas in North Carolina (Patrick Davis) 3. Financial Report for the Six Month Period Ended December 31, 2011 (Stephen Winters) 4. Progress Report on OWASA s Strategic Plan (Ed Kerwin) Discussion 5. Review of Drafts of the Following Budget Planning Documents: Statement of Strategic Issues and Policies, Planning Assumptions and Background Information, Fiscal Year 2013 Draft Budget Calendar (Stephen Winters) 6. Proposed Updates to OWASA s Financial Management Policy and Resolution Amending the Orange Water and Sewer Authority Financial Management Policy (Stephen Winters) 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

2 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. MEMORANDUM TO: Board of Directors THROUGH: Ed Kerwin FROM: F. Stuart Carson, P.E. DATE: January 19, 2012 SUBJECT: Semi-Annual Contractor and Consultant Performance Report It is OWASA policy to assess, through written evaluations, engineering consultant and construction contractor performance on all significant capital improvement projects. Final assessments are conducted on both the engineering consultant and construction contractors following the construction phase of each project. These final assessments are used when evaluating future proposals from those consultants and contractors desiring to perform work for OWASA. In addition, for large and/or technically complex projects, the performance of our consultants and contractors are assessed at an interim point in the project so that we can highlight to the consultant and/or contractor those areas which have gone well and those areas where the consultant or contractor needs to improve their performance in order to improve the chance that the project can be completed in a timely, high quality and cost-effective fashion. Here are the projects in the 6-month period from July through December 2011 included in this report: Water Line Rehabilitation/Replacement Projects (two separate consultant contracts) Bolin Creek Interceptor (Phase III) Sanitary Sewer Service Area Study Mason Farm Wastewater Treatment Plant Hydraulic and Treatment Capacity Study The attached table summarizes the evaluation results for these projects. The corresponding evaluation forms are available upon request. Please let me know if you need additional information. F. Stuart Carson, P.E. Engineering Manager Capital Improvements Program Attachment 1: Summary of Contractor and Consultant Ratings 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

3 ATTACHMENT 1 SUMMARY OF CONTRACTOR AND CONSULTANT RATINGS For the Period of July through December 2011 Page 1 of 3 Project CIP Multiple Water Line Rehabilitation/Replacement Projects CIP Multiple Water Line Rehabilitation/Replacement Projects CIP Bolin Creek Interceptor (Phase III) Consultant/Contractor Hazen & Sawyer, P.C. (Consultant) Philip Post & Associates (Consultant) HDR Engineering, Inc. of the Carolinas (Consultant) Park Construction Corporation (Contractor) Overall Rating Good Fair Good Excellent Comments Evaluation is for study, design, and bidding services under an ongoing water main rehabilitation or replacement multi-project contract Studies evaluating conceptual designs and layouts were exceptional Management of designs and permit preparations for three project sites were exceptional Project designs and/or study phase schedules were met Bidding services for the one project completed to date was well managed Consultant provided numerous value-added recommendations Evaluation is for design, bidding, and construction inspection services under an ongoing water main rehabilitation or replacement multi-project contract Took additional time and effort to understand OWASA s expectations and design needs Communication continually improved throughout the project Please note that this is the first work this consultant has performed for OWASA in several years and we expect future ratings to improve Evaluation is for completing final stages of the design, bidding, construction administration and construction inspection services Good adherence to the project schedule, obtaining permits, assisting in prequalification of bidders, and evaluation of bids Worked very cooperatively and responsively with OWASA and Town staff during all phases of the project Excellent verbal communication during construction with OWASA staff by the resident construction inspector Evaluation is for construction of a 30-inch diameter sanitary sewer main and replacement of an existing water main Project was completed more than 2 months ahead of schedule 1.2

4 ATTACHMENT 1 SUMMARY OF CONTRACTOR AND CONSULTANT RATINGS For the Period of July through December 2011 Page 2 of 3 Project CIP (continued) CIP Sanitary Sewer Service Area Study CIP Mason Farm Wastewater Treatment Plant Hydraulic and Treatment Capacity Study Consultant/Contractor Camp Dresser & McKee (Consultant) Hazen & Sawyer, P.C. (Consultant) Overall Rating Excellent Excellent Comments and under budget Clearly communicated implications to budget and schedule in a timely manner Worked cooperatively and proactively with the Town of Chapel Hill Impressive job site cleanliness throughout the project, private property was adequately protected, close-out and final restoration was excellent Excellent communication with OWASA throughout the project Provided timely and appropriate close-out documentation Evaluation is for a study of the entire sanitary sewer service area, including hydraulic modeling and identification of needed system condition and capacity improvements, allowing well informed prioritization of future projects Used a well-defined approach to meet project objectives, while remaining flexible and responsive to OWASA s evolving needs Considerable skill was displayed in communicating complex concepts in straightforward ways to a diverse audience Excellent understanding of, and response to, operational and strategic planning concerns ensured all project objectives were met High quality technical writing and graphics were aptly used to explain key concepts and study results Final report was high quality and is expected to be a useful tool for years to come Evaluation is for a study to identify needed improvements for compliance with upcoming Jordan Lake Rules limits Study was carefully planned and executed Study was critical to the master planning of the WWTP facility and it had significant positive impacts on the overall CIP Demonstrated considerable skill in fully understanding 1.3

5 ATTACHMENT 1 SUMMARY OF CONTRACTOR AND CONSULTANT RATINGS For the Period of July through December 2011 Page 3 of 3 Project CIP (continued) Consultant/Contractor Overall Rating Comments OWASA s concerns and consistently provided thoughtful and meaningful feedback and direction Identified changes and improvements that will result in significant operational cost savings and more reliable plant performance 1.4

6 AGENDA ITEM PRESENTATION BY ROBIN SMITH, ASSISTANT SECRETARY FOR PLANNING AND POLICY IN THE NC DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (NCDENR), ON NCDENR S ONGOING STUDY OF THE POTENTIAL DEVELOPMENT AND REGULATION OF SHALE GAS IN NORTH CAROLINA PURPOSE Provide information and a presentation on the North Carolina Department of Environment and Natural Resources (NCDENR) ongoing study of: (a) the potential development of shale gas in North Carolina, and (b) development of recommendations regarding the regulatory framework needed to ensure protection of public health and the environment if shale gas development is allowed to occur. BACKGROUND The North Carolina Session Law directed NCDENR to complete the shale gas study by May 1, The study will be completed with assistance from other State agencies and the Rural Advancement Foundation International. At the January 26 th meeting, Ms. Robin Smith, Assistant Secretary of NCDENR, will make a presentation to the Board on purpose and scope of the study; key study participants; the timetable for completion; and the public review and comment process. Ms. Smith will not be presenting or discussing any specific findings and recommendations, as those are still under development. NCDENR expects to issue the draft report in early-march, at which time the public review and comment period will begin. Two public meetings will be held, one of which will be at East Chapel Hill High School on Tuesday, March 27. ACTION NEEDED Receive and discuss Ms. Smith s presentation, and provide guidance to staff and Board Committee(s) as applicable. No formal action is requested. January 26,

7 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. MEMORANDUM TO: THROUGH: FROM: Board of Directors Ed Kerwin Patrick Davis DATE: January 19, 2012 SUBJECT: Presentation by Robin Smith, Assistant Secretary for Planning and Policy in the NC Department of Environment and Natural Resources (NCDENR), on NCDENR s Ongoing Study of the Potential Development and Regulation of Shale Gas in North Carolina Purpose Provide information and a presentation on the North Carolina Department of Environment and Natural Resources (NCDENR) ongoing study of: (a) the potential development of shale gas in North Carolina, and (b) development of recommendations regarding the regulatory framework needed to ensure protection of public health and the environment if shale gas development is allowed to occur. (Shale gas development that involves hydraulic fracturing of the underlying rock is also commonly referred to as hydro-fracking or fracking. ) NCDENR Presentation to Board Ms. Robin Smith, Assistant Secretary of NCDENR, will attend the Board s January 26 th meeting for the purpose of making a presentation on: (a) the legislative mandate; (b) the status of the ongoing study; (c) the study outline and approach; (d) key resource agencies and subject matter experts that are contributing to this important project; and (e) information about the timetable and process for release of the draft report and opportunity for public review and comment. Ms. Smith will not be presenting or discussing any specific findings and recommendations, as those are still being developed and will not be released until the draft report is made public. Background Geologists report that deposits of natural gas are located in shale formations under nearly 60,000 acres in North Carolina, including portions of Chatham, Durham, Lee, Moore, and Wake counties. Advancements in mining and drilling technology including horizontal drilling and hydraulic fracturing now make these deposits more accessible. 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

8 NCDENR Presentation on Ongoing Shale Gas Study January 19, 2012 Page 2 North Carolina s existing laws prohibit horizontal drilling and hydraulic fracturing. Gas companies and others believe our State would realize substantial economic benefits if this resource is allowed to be developed. During the 2011 Session, the General Assembly enacted Session Law , which among other provisions, requires NCDENR, in cooperation with the Department of Commerce, Department of Transportation, Attorney General s Office and Rural Advancement Foundation International, to conduct a study of the potential development of shale gas in North Carolina and make recommendations regarding the legal framework necessary for development of this resource. Section 3.(a) of the legislation is included as Attachment #1. The study must be presented to the General Assembly by May 1, The study language in Session Law speaks in terms of all of the State s oil and gas resources; however, NCDENR has stated that the study will focus on the shale gas resource that has been identified in the Triassic Basin. The study will note where any findings and recommendations may have broader application to other potential oil and gas resources. In October 2011, NCDENR issued and received public comments on an initial draft outline for the study. The draft was subsequently revised and is included as Attachment #2. In recent months, there have been several seminars and workshops and extensive media coverage on shale gas development and NCDENR s ongoing study. Attachment #3 is a copy of a PowerPoint presentation that Brooks Rainey Pearson, Policy Council, Energy and Climate, Nicholas Institute for Environmental Policy Solutions, made at a December seminar at Duke University. It provides a brief look at: pros and cons of natural gas; some Federal regulatory exemptions applicable to natural gas extraction; and general water quantity requirements and water quality characteristics wastewater from hydraulic fracturing Public Review and Comment on the Study NCDENR expects to issue the draft report in early-march 2012, at which time the public comment period will begin. NCDENR has scheduled two public meetings to present the study findings and receive comments on the draft report. Fortunately, one of the meetings will be held within our service area at East Chapel Hill High School on Tuesday, March 27, The meeting will be from 6:30 to 9:30 p.m. Closing We look forward to Ms. Smith s presentation, and to receiving the Board s questions and guidance regarding this matter. Thank you very much. Patrick Davis Sustainability Manager Attachments 2.3

9 Introduction and Section 3.(a) Wording From Session Law ATTACHMENT #1 2.4

10 (Following is Section 3.(a) which requires NCDENR to complete the shale gas study) 2.5

11 2.6

12 NCDENR December 6, 2011 Revised Outline of the Oil and Gas Study Under Session Law Executive Summary Section 1 Potential Oil and Gas Resources A. Overview of the Triassic basins Sanford sub-basin of the Deep River Basin Dan River Basin Durham and Wadesboro sub-basins of the Deep River Basin Buried Coastal Plain basins B. Estimates of technically recoverable gas Sanford sub-basin Dan River Basin Uniqueness of the geology in these basins C. Anticipated industry behavior Rates of well drilling Rates of gas extraction Section 2 Oil and Gas Exploration and Extraction A. How hydrocarbons are generated and trapped in the Earth B. Methods used to find hydrocarbons Geophysical methods Seismic reflection Gravity and magnetics Lithologic and geophysical logs Organic geochemistry indicators C. Methods to extract hydrocarbons Conventional drilling and well treatment Horizontal drilling Hydraulic fracturing Alternative fracturing techniques 1 Although the study language in Session Law speaks in terms of all of the state s oil and gas resources, the study will focus on the shale gas resource that has been identified in the Triassic Basin. The study will note where any findings and recommendations may have broader application to other potential oil and gas resources. 2.7

13 Section 3 Potential Infrastructure Impacts A. Water supply Existing water sources Existing water use Projected water demand (based on local water supply plans) Expected additional water use for drilling and hydraulic fracturing, including cumulative impacts from multiple wells B. Road and bridge infrastructure Existing condition and effects of increased use Safety considerations C. Transportation methods Pipeline availability D. Wastewater treatment Existing wastewater treatment capacity Wastewater treatment needs associated with oil and gas activity (both industrial and domestic wastewater) Section 4 -- Potential environmental and health impacts A. Constituents and contaminants associated with hydraulic fracturing B. Groundwater impacts Location of water supply wells (public and private) Potential for contamination by constituents of fracturing fluids Potential for methane release Well construction standards Spills and releases to groundwater Potential public health impacts C. Process wastewater Disposal On-site storage Potential for recycling D. Surface water impacts and stormwater management Erosion and sedimentation issues during production and following reclamation of well pads Post-development runoff Environmentally sensitive site design 2 2.8

14 Surface spills and releases from the well pad Spills and releases during transportation and storage Potential public health impacts E. Air quality impacts Air emissions, including fugitive emissions and flaring Greenhouse gases Air quality permitting requirements Potential public health impacts F. Impacts on fish, wildlife and important natural areas Threatened and endangered species Location of parks, designated state nature preserves, other significant natural areas Potential impacts to livestock from spills, releases and air emissions Potential impacts to fish and wildlife, including fragmentation of habitat Potential impacts to recreational fishing and hunting G. Management and reclamation of drilling sites (including orphaned sites) H. Management of naturally occurring radioactive materials (NORM) generated by the drilling and production of natural gas Potential public health impacts I. Potential for increased seismic activity J. Solid and hazardous waste generated in the extraction process Disposal methods Potential public health impacts Section 5 Potential economic impacts A. Estimate of jobs created Temporary vs. permanent jobs Type and quality of jobs Industry use of local labor vs. imported labor Ancillary job creation B. The timing of leasing, drilling, production and post-production costs as compared to the realization of economic benefits C. Impact on Existing Local Economy Agriculture Retirees 3 2.9

15 Wineries Local food industry Tourism Others D. Potential impacts to North Carolina energy consumers Extraction versus combustion of natural gas Consideration of energy security Available and necessary infrastructure to export natural gas E. Fiscal impacts to local government Roads and other infrastructure Emergency services Schools Social services Police and criminal justice F. Additional state resources needed to provide regulatory oversight Cost of implementing an oil and gas regulatory program Increased natural resource management costs, including review of impacts to threatened and endangered species Others G. Comparison of existing bonding requirements to those in other oil and gas states H. Comparison of existing severance taxes to severance taxes or royalty payments in other oil and gas states I. Use of special assessments J. Estimate of revenue generated by severance taxes or royalties at levels comparable to other oil and gas states K. Fees for permitting of oil and gas exploration and extraction activities Current environmental permitting fees in North Carolina Fees in other oil and gas producing states L. Recommendations for funding state regulatory oversight Appropriate level of severance taxes or royalty payments Recommendations for new or modified permit fees M. Other recommended uses for oil and gas revenue Improvement of water and wastewater infrastructure Remediation of contaminated sites Land and water conservation

16 Section 6 Potential social impacts A. Impacts on nearby communities from drilling operations Housing availability Property values Demand for social services B. Impacts on quality of life within nearby communities, including impacts on: Recreational activities Commercial and residential development Noise from construction and drilling operations Visual impacts from construction and drilling operations Crime rates Section 7 Proposed regulatory framework A. Guidance for development of a regulatory framework Coordination with existing and pending federal regulations STRONGER standards for state oil and gas programs State-by-state review of oil and gas programs, including enforcement Other sources of recommended standards Public comment Existing state policy B. Recommended policies to guide regulation of oil and gas development C. Recommended regulatory framework Public participation Interagency coordination Criteria for approval of exploration and development activities, including permit requirements Scope and frequency of inspection Compliance and enforcement procedures Data management Section 8 Consumer protection and legal issues A. Landowner property rights under existing North Carolina law B. Landowner rights and risks

17 Split estates Impacts to landowners, including disclosure Differences and similarities in approaches to protecting the rights of surface owners versus those of mineral owners C. Mineral leases and protection of landowners D. Forced pooling Section 9 Recommendations and Limitations A. Recommendations Whether or under what conditions N.C. should allow hydraulic fracturing and horizontal drilling Issues requiring further research Baseline data collection Additional recommendations (to be determined) B. Limitations of the Study Section 10 Other issues Appendix Session Law Summary of Public Comment

18 Shale Gas and Hydraulic Fracturing: Policy Overview Brooks Rainey Pearson Policy Council, Energy and Climate Nicholas Institute for Environmental Policy Solutions Natural Gas Pros Burns much cleaner than coal or oil, emitting approximately 45% less carbon than coal Emits very small amounts of sulphur dioxide, mercury, and particulate matter and Cons The rapid scale-up of large-scale unconventional natural gas extraction presents environmental challenges. The cumulative impacts of natural gas drilling on communities can be significant. Creates jobs and provides an economic boost to struggling rural communities Interfere with existing land uses, such as residential uses, and with natural resources, such as timber harvesting

19 1/17/2012 Natural Gas Extraction under Federal Environmental Regulations SDWA RCRA CERCLA EPCRA NEPA The EPA has never regulated hydraulic fracturing under the Safe Drinking Water Act, and it was formally excluded by the 2005 Energy Policy Act. The Solid Waste Disposal Act Amendments of 1980 excluded wastes associated with the production of natural gas from regulation under RCRA pending further assessment by the EPA In 1988, EPA upheld Congress exclusion. CERCLA liability does not extend to the oil and gas industry. The oil and gas industry is exempt from the reporting requirements of EPCRA due to EPA s 1988 exclusion of these waste materials from regulation as hazardous wastes. The Energy Policy Act of 2005 created a rebuttable presumption that oil and gas development activities are granted a categorical exclusion from NEPA. Source: NPC, Prudent Development,

20 1/17/2012 Pre-drilling information and baseline data Source: DOE National Energy Technology Laboratory Modern Shale Gas Development in the United States: A Primer Water Quantity

21 1/17/2012 Cumulative Adverse Impact on Communities, Ecosystems, Wildlife Source: DOE National Energy Technology Laboratory Modern Shale Gas Development in the United States: A Primer NYSERDA, "WATER-RELATED ISSUES ASSOCIATED WITH GAS PRODUCTION IN THE MARCELLUS SHALE"

22 1/17/2012 Waste water management by shale gas basin Source: DOE National Energy Technology Laboratory Modern Shale Gas Development in the United States: A Primer Air Quality Concerns Source: Earthworks 2010 Sources of Oil and Gas Air Pollution

23 1/17/2012 Natural Gas Extraction in NC Source: North Carolina Geologic Survey

24 AGENDA ITEM PURPOSE FINANCIAL REPORT FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2011 To inform the Board of Directors of OWASA s financial performance and fiscal position. BACKGROUND The financial report is comprised of a Statement of Net Assets (Balance Sheet), an Income Statement that includes a budget to actual comparison, graphical presentations of financial performance indicators and a Financial Management Policy Report Card. Highlights of the report include the following: Operating Revenues for the six month period exceeded budget by about $260,000 or 1.4%. Operating Expenditures were about $800,000 less than budget or 8.5%. Non-operating Income exceeded budget for the period by approximately $400,000 or 92%. Net Income less Debt Service was 29% over budget or roughly $1.6 million. Capital Improvement Program expenditures were approximately $1 million or 23% less than budget. The Finance Committee will review this information in a meeting to be held just prior to the January 26, 2012 Board Meeting. ACTION NEEDED Receive and discuss the Financial Report for the six month period ended December 31, January 26,

25 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. MEMORANDUM TO: Board of Directors THROUGH: FROM: Purpose The financial report for the six month period ended December 31, 2011 is presented to inform the Board of Directors of OWASA s financial position and financial performance in relation to budget. This report is unaudited and is substantially complete in terms of economic resource reporting (budgeted receipts and disbursements). Contents Statement of Net Assets (Balance Sheet) Income Statement Graphs of Key Performance Indicators Financial Management Policy Report Card Fiscal Performance Ed Kerwin Stephen Winters, CPA DATE: January 20, 2012 SUBJECT: Financial Report for the six month period ended December 31, 2011 Potable water sales for the six months averaged about 6.63 million gallons per day (MGD); 6.62 MGD was projected. Combined water and sewer revenue for the period was approximately $350,000 greater than budget. Revenue from new system connections exceeded budget by about $650,000, primarily as a result of a large number of meters being set at two large multifamily residential developments (Chapel Hill North and Chapel Watch) that had been dormant for many months; the construction effort was accelerated during the first six months of the fiscal year. Operating expenses for the first half of the year were approximately $800,000 under budget. We are monitoring monthly operating budget performance and will make budget execution adjustments throughout the remainder of the year as necessary. Operating expenses in the Wastewater Collection department were over budget by about $70,000. This is a result of a timing difference related to our root control program costs. We budgeted these costs to be spent evenly throughout the year but incurred all of the costs of the 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

26 Financial Report for December 31, 2011 January 20, 2012 Page 2 program in the first six months. Net Revenue less Debt Service for the six months was approximately $1.6 million greater than budget. Capital Improvement Program (CIP) expenditures were about $1 million less than budget but similar to the operating expense budget, the annual CIP budget is allocated evenly throughout the year. We are monitoring CIP budget performance and will make budget execution adjustments as necessary. The Finance Committee will review this information at its meeting on January 26, 2012 and present a summary report to the Board of Directors later that same evening. Stephen Winters, CPA Director of Finance and Customer Service 3.3

27 Orange Water and Sewer Authority Financial Report For the Six Month Period Ended December 31,

28 Orange Water and Sewer Authority Statement of Net Assets December 31, 2011 (unaudited) Assets Current Assets Cash $24,105,788 Receivables 3,355,360 Inventory 900,926 Prepaid expenses 159,353 Restricted cash 4,410,136 Total current Assets 32,931,563 Noncurrent Assets Capital Assets (net of depreciation) 273,489,017 Other noncurrent assets 14,188,955 Total noncurrent assets 287,677,972 Total Assets $320,609,535 =========== Liabilities and Net Assets Current liabilities Accounts payable and accrued expenses $2,622,371 Unearned income 606,206 Customer deposits 666,682 Total current liabilities 3,895,259 Noncurrent liabilities Bonds payable 89,245,000 Other noncurrent liabilities 2,372,000 Total noncurrent liabilities 91,617,000 Net Assets Contributed Capital 112,757,345 Net Assets at the beginning of the year 107,226,370 Year-to-date accrual basis net income 5,113,561 Total Liabilities and Net Assets $320,609,535 =========== Net income reconciliation: Accrual basis net income $5,113,561 Depreciation expense 4,767,674 Interest expense 1,588,645 Modified accrual basis net income $11,469,880 =========== 2 3.5

29 Orange Water and Sewer Authority Income Statement For the Six Month Period Ended December 31, 2011 (unaudited) Actual through December 31, 2011 Budget through December 31, 2011 Variance Percent Variance Operating Revenue: Water $9,948,079 $9,762,469 $185, % Sewer 8,497,337 8,285, , Reclaimed Water 244, ,945 (56,617) (18.8) Service Initiation Fees 96,575 82,330 14, Other 639, ,071 (107,250) (14.4) Refunds and Allowances (107,399) (121,180) 13, Total Operating Revenue 19,318,741 19,056, , Non-operating Income: Customer Fees 1,113, , , Interest 9,030 17,950 (8,920) (49.7) Loss on Sale of Fixed Assets (213,711) 0 (213,711) Total Non-operating Income 909, , , Total Income 20,227,775 19,530, , Operating Expense: General and Administrative 2,642,694 2,967, , Water Supply and Treatment 2,059,686 2,190, , Water Distribution 1,020,647 1,363, , Wastewater Treatment 2,326,788 2,415,558 88, Wastewater Collection 708, ,202 (70,878) (11.1) Total Operating Expense 8,757,895 9,574, , Net Income (modified accrual) 11,469,880 9,955,682 1,514, Debt Service 4,299,134 4,387,972 88, Net Income less Debt Service 7,170,746 5,567,710 1,603, Less: CIP Expenditures 3,805,922 4,934,500 1,128, Capital Equipment Expenditures 275, ,074 87, Net change in Fund Balance $3,089,561 $270,136 $2,819,425 1,043.7 ========= ========= ========= ====== 3 3.6

30 Orange Water and Sewer Authority Select Financial Data For the Six Month Period Ended December 31, 2011 Operating Revenues $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter FY11 Budget 9,822,659 7,856,826 7,450,088 9,279,879 FY11 Actual 10,512,968 8,958,264 7,809,611 8,826,215 FY12 Budget 10,104,916 8,951,982 8,154,527 9,558,764 FY12 Actual 10,539,231 8,779,510 Operating Expenses $5,250,000 $5,000,000 $4,750,000 $4,500,000 $4,250,000 $4,000,000 $3,750,000 $3,500,000 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter FY11 Budget 4,638,659 4,638,659 4,638,659 4,638,659 FY11 Actual 4,182,414 4,581,600 4,269,615 4,701,378 FY12 Budget 4,786,335 4,786,334 4,786,334 4,786,334 FY12 Actual 4,431,348 4,326,

31 Orange Water and Sewer Authority Select Financial Data For the Six Month Period Ended December 31, 2011 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Customer Fees (Service Availability Fees) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter FY11 Budget 180, , , ,794 FY11 Actual 445, , , ,844 FY12 Budget 227, , , ,751 FY12 Actual 675, ,501 Net Revenue less Debt Service $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter FY11 Budget 2,946, , ,494 2,443,285 FY11 Actual 4,527,494 2,786,024 1,478, ,346 FY12 Budget 3,361,321 2,208,388 1,410,933 2,815,170 FY12 Actual 4,413,955 2,756,

32 Orange Water and Sewer Authority Select Financial Data For the Six Month Period Ended December 31, 2011 FY 2012 Water Sales Projection (Average Day) Original FY 2012 Sales Projections Actual FY 2012 Water Sales Revised FY 2012 Sales Projections PW RCW PW RCW PW RCW July August September October November December January February March April May June Average Estimates shown in red MGD FY 2012 Total Water Demand Original Projection YTD Actual 6 3.9

33 Orange Water and Sewer Authority Select Financial Data For the Six Month Period Ended December 31, 2011 MGD FY 2012 Potable Water Demand Original Projection YTD Actual MGD FY 2012 Reclaimed Water Demand Original Projection YTD Actual

34 Orange Water and Sewer Authority Select Financial Data For the Six Month Period Ended December 31, 2011 $25,000,000 Working Capital Reserve $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Minium Reserve Requirement FY12 Actual Balance 1,300 1,200 1,100 1,000 Taste of Hope Program Donors and Donations (last 12 months) $1,000 $800 $600 $400 $200 $0 Number of Donors Amount Donated

35 Orange Water and Sewer Authority Financial Management Policy Report Card For the Six Month Period Ended December 31, 2011 Measurement Objective FY11 Results FY12 Goal FY12 YTD Results Working Capital Reserves Capital Improvements Reserve Rate / Revenue Stabilization Reserve Debt Burden to Asset Value Sufficiency of Revenues above Debt Requirements Cash Financing of Capital Debt Service Coverage Ratio Service Affordability Ratio 1 Greater of four months Operating expenses or 20% of succeeding three years CIP 2% of Net Capital Assets (Funding $400,000 per year until reach goal of approximately $6M) 5% of annual Water and Sewer Revenue (Funding $250,000 per year until reach goal of approximately $2M) Total Debt not more than 50% of Total Assets Annual Debt Service no more than 35% of Gross Revenue Annual revenues and reserves provide at least 30% of CIP funding Annual Net Income not less than two times Annual Debt Service Average annual OWASA bill not more than 1.5% of area median household income $20M $7.4M $22M $800,000 $1.2M $1.2M $500,000 $750,000 $750,000 30% < 50% 29% 24% < 35% 21% 100% > 30% 100% % 1.5% 1.81% M = million 1 Calculation based on median household income of $55,522 (per 2009 U.S. American Community Survey, the most recent information available) and average monthly household water use of 5,000 gallons

36 AGENDA ITEM PROGRESS REPORT ON OWASA S STRATEGIC PLAN PURPOSE OWASA s Strategic Plan establishes the key goals and objectives for the next several years to guide the organization s work and funding priorities. BACKGROUND The OWASA Board held a work session with staff on March 11, 2010 to discuss strategic planning. On March 25, 2010, the Board approved the OWASA Strategic Plan. Progress reports were provided to the Board on October 21, 2010; March 10, 2011 and September 22, At their October 27, 2011 meeting, the OWASA Board agreed with the Finance Committee s recommendation that the Strategic Plan be updated every two years with status reports provided annually. The next update to the Strategic Plan will begin in October, 2012 with Board adoption by January, January 26,

37 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. M E M O R A N D U M TO: FROM: Board of Directors Ed Kerwin DATE: January 20, 2012 SUBJECT: PROGRESS REPORT ON OWASA S STRATEGIC PLAN OWASA s Strategic Plan establishes the key goals and objectives for the next several years to guide the organization s work and funding priorities. While there are many goals and objectives that must be met (and sustained) to ensure that OWASA successfully fulfills its mission, it is essential to establish the organization s highest priorities given that funding and staff resources are limited. This progress report covers the period from March, 2010 to January, The OWASA Board held a work session with staff on March 11, 2010 to discuss strategic planning. On March 25, 2010, the Board approved the OWASA Strategic Plan. Progress reports were provided to the Board on October 21, 2010; March 10, 2011 and September 22, At their October 27, 2011 meeting, the OWASA Board agreed with the Finance Committee s recommendation that the Strategic Plan be updated every two years with status reports provided annually. The next update to the Strategic Plan will begin in October, 2012 with Board adoption by January, We have made important progress on our Strategic Plan s goals and objectives. We are especially proud of work to achieve greater efficiencies and improve our financial stability. Recently completed engineering studies concluded that our water and wastewater systems are in good shape and we have a well-informed plan moving forward. An essential objective which we continue to give very high priority is securing access to our Jordan Lake allocation. Staff looks forward to continuing our work with the Board and local governments to achieve our objective of a reliable water supply for current and future customers. Ed Kerwin Executive Director Attachment 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

38 OWASA Strategic Plan Update March 25, 2010 January 20, 2012 Strategic Plan Objectives A.1 Complete a comprehensive functional analysis to identify opportunities to reduce costs. The following cost reduction and/or efficiency measures have been taken since March 25, 2010: Effective May 31, 2010, eliminated the vacant Human Resources Director position and reclassified the Safety and Training Administrator position to the new position of Human Resources and Safety Manager. Net annual savings are about $80,000. Eliminated a vacant Administrative Assistant position in Fiscal Year (FY) 2012 with net annual savings of about $45,000. Implemented process modifications suggested by the Hydraulic and Treatment Capacity Study for the Mason Farm Wastewater Treatment Plant which are expected to save about $300,000 annually. Bond refunding in September, 2010 will result in about $2.3 million of savings over the life of the bonds. Effective January 27, 2011, reorganized the Finance and Customer Service Department to include the elimination of two vacant Manager positions. These actions have improved efficiency and resulted in an annual net savings of about $80,000. Initiated the replacement of energy intensive outdoor lighting with low energy fixtures, some controlled with motion sensors. Reduced telecommunications costs by over $10,000 per year by reviewing all telecommunications services, selecting lower cost vendors and eliminating obsolete or unnecessary services. Effective July 1, 2011, reduced health and other insurance benefit costs $64,000 by combining plans and using one vendor. Additionally, implemented employee wellness goals to achieve 3% credit on renewal rates for next FY. Employees successfully completed goals in December, 2011 which will result in expected savings of about $40,000. Future work: o Evaluate opportunities to streamline and improve issuance of service orders, with special focus on processing of service availability fees (new connections) and cutoffs. o Initiate a pilot project for Desktop Virtualization and Application Virtualization. o Review the current Work Order process for field crews and evaluate the use of CityWorks as a technology to give employees mobile remote access to the Work Order system. o Continue review to adequately define and optimize service levels in Distribution and Collections Department. o Continue review of lighting improvements to reduce energy cost and review of heating, ventilation and air conditioning controls to minimize heating and cooling needs. o Continue evaluation of opportunities to use digester gas (methane) as an energy resource at the Mason Farm Wastewater Treatment Plant. o Continue review of our process for dealing with delinquent customer accounts and related service terminations, identify areas for improvement and consider alternatives for addressing them. Page 1 4.3

39 Measure of success: Savings noted above. Complete by: Ongoing A.2 Continue implementation of improvements to the financial management and billing system and related recommendations from the consultant s report with emphasis on improved accuracy and timeliness of key financial data. Processes that have been improved/streamlined for the purpose of improving accuracy and/or efficiency and/or reducing costs are: Future work: New process for entering Purchasing Card transactions has been implemented. Redundancies in entering customer credit card payments have been eliminated as a result of implementing additional on-line information and services for customers (Customer Web). New process for issuing invoices for miscellaneous billings and recording cash receipts has been implemented. Implemented a more efficient UNC invoicing process. Created numerous quality control reports to assist in processing and verification of data. All miscellaneous billings (for services other than monthly water and sewer) are being migrated into a normal monthly billing cycle. This provides for better tracking of accounts receivable, reduces data entry and improves accuracy. Created a process to capture more layers of water and sewer revenue in order to enhance quality control of revenue. Moved responsibility for all invoicing to Customer Service. Implemented new functionality that allows more options for Taste of Hope donations. New purchasing module has been installed and implemented in almost all of the departments. (The final implementation steps will be complete by March 31, 2012.) This has improved the purchasing process and provided better control and visibility in monitoring budget performance and improved internal control related to the purchasing function. We have increased our focus on budget execution. We are making sure the departments are aware of how they are performing against their budgets and establishing contingency plans as appropriate. o Create and implement additional business intelligence reporting. o Streamline financial reporting, month-end close process, budget development and the process for forecasting revenues and expenditures. Measure of success: While objective measures for the above improvements are not yet available, we are achieving important efficiencies. Complete by: The process of identifying areas for improved efficiency and cost reduction is ongoing. Page 2 4.4

40 A.3 Adopt rate adjustments to ensure financial stability. For FY 2013, a rate study is underway and will be completed before the end of March, Additionally, we have compiled almost all of the information necessary for populating the FY 2013 financial model and will be prepared to make a recommendation to the Board regarding rates as part of the FY 2013 budget process. Measure of success: All objectives (except affordability measurement) of the Financial Management Policy are being met. Complete by: Ongoing A.4 Develop and implement a plan to increase our customers understanding of the value of water and the need for rate adjustments which reflect the true cost of OWASA s water, sewer and reclaimed water services. The Community Outreach Committee has been renamed the Outreach and Education Committee. The group has established a committee charge as well as goals and objectives. On June 9, 2011, the Outreach and Education Committee recommended and the Board of Directors adopted a set of Goal Statements and Objectives for community outreach and education; on July 13, 2011, the Outreach and Education Committee received and discussed the implementation plan for the Goal Statements and Objectives. These documents set forth detailed plans for communications related to the value and cost of our services. In related actions on September 22 and December 8, 2011, the Board of Directors approved the Committee s recommendations for (1) the branding program for OWASA (which focuses on water quality, customer service and stewardships as keys to OWASA s value proposition ), and (2) the public engagement and dialogue program. Measure of success: To be determined by future research (customer surveys). Complete by: The implementation plan includes deadlines for completing various outreach and education items as well as the implementation of ongoing processes. B.1 Develop a Comprehensive Asset Management Plan The following is a summary of the efforts to develop a comprehensive asset management plan for the above ground water and wastewater conveyance and treatment facilities. Individual prioritization plans have been developed through earlier engineering studies for our water and sewer mains and therefore are not included in the scope of this initial asset management effort. Data collection on above ground assets (treatment plants, pump stations, tanks, etc.) resides in the Computerized Maintenance Management System (CMMS) and includes features such as: equipment number, location, equipment type, manufacturer, acquisition date, useful life, replacement cost and service history. A similar database on the below ground assets (water & sewer mains) is maintained by the Engineering Department. Page 3 4.5

41 Future work: Purchase date, mileage, condition and maintenance information has been collected on OWASA s rolling stock (vehicles, backhoes, etc.) with the goal of making this portion of the asset plan an early success. An upgrade to the CMMS software utilized by the OWASA Maintenance staff has been completed. Work to develop an asset management plan for a portion of OWASA s assets by a grad student from the UNC Operations Research Department was completed and presented to several OWASA staff members. A Request for Qualifications (RFQ) for consultant assistance was completed and CH2M Hill of Raleigh was selected to assist OWASA staff with the development of an asset management plan. The Asset Management Team, Department Managers and Directors participated in an introductory asset management workshop conducted by the consultant. Individual staff interviews were conducted by the consultant to understand OWASA s current practices and procedures related to asset management. 24 OWASA staff members participated in a workshop to provide survey information that was used by the consultant in developing a gap analysis. Received consultant s report on gap analysis, which included a summary of current OWASA practices and identified additional needs (skill sets, resources, training, etc.) to close identified gaps. Received activity list, cost information and timeline for developing initial Asset Management Plan. o Develop standards and procedures for data management and collection. o Define staff roles and responsibilities. Review workflow and provide training to staff. Review existing asset information related to condition, criticality or consequences of failure for identified assets. Collect additional or new asset data where gaps exist. The asset information will be used along with other data (age, failures, remaining useful life, etc.) to determine a risk score for each asset. o Assemble, review and test assumptions in the asset management plan. o Produce Draft Asset Management Plan document with associated funding requirements for review and evaluation of the impact on our financial management plan. Measure of success: To be determined. Complete by: Updated schedule indicates initial asset plan to be complete in March, 2013 ongoing improvements beyond that. B.2 Complete ongoing engineering studies (Wastewater Treatment Plant Capacity Study; Water Distribution Model and Wastewater Collection System Evaluation) to improve our ability to identify and prioritize capital improvement projects. WWTP Hydraulic and Treatment Capacity Study: Complete. Like the hydraulic and treatment capacity portions of the study, the plant s optimization efforts have produced positive results that will Page 4 4.6

42 continue to yield significant cost savings for current and future customers. Information from the report was used to identify capital improvements in the FY Capital Improvement Plan. Water Distribution Hydraulic Model: Complete. This report identified areas of capacity and/or pressure needs to be addressed through The model results indicated that OWASA s system has relatively few deficiencies. Information from the report was used to identify capital improvements in the FY Capital Improvement Plan. Wastewater Collection System Evaluation (includes flow monitoring and computer modeled condition assessment): The final report was issued in November, Information from the draft version of this final report was used to identify capital improvements in the FY Capital Improvement Plan and information from the final report will be used to identify capacity needs and areas where additional (physical) assessment and inspection should occur in our system through Measure of success: These engineering studies provide information to further improve our ability to identify and prioritize capital projects needed to sustain our operation. Complete by: Action complete. Studies very similar to these will be performed periodically in the future (every five years or so) so that OWASA s capital investment plans will be kept well informed and up-to-date. B.3 Secure Future Access to OWASA s Jordan Lake Water Supply Allocation by working with the Jordan Lake Partnership and other stakeholders. OWASA continues to play an active role in the Jordan Lake Partnership, including assisting the Triangle J Council of Governments in developing the Triangle Area Regional Water Supply Plan (RWSP), which will provide information to support the allocation requests of individual Partners. The NC Division of Water Resources (DWR) is updating the Cape Fear River Hydrologic Model, which will be used to verify/validate yield estimates of existing water supply sources and the effects of future water withdrawals on downstream flows throughout the Cape Fear River basin. DWR currently projects a September, 2012 submittal deadline for draft allocation requests. Final applications would be due by the end of calendar year OWASA is continuing discussions to obtain local government approval to revise the 2001 Water and Sewer Management, Planning and Boundary Agreement (WSMPBA) to clarify that the Agreement does not constrain access to our Jordan Lake storage allocation. Future work: o Continue to seek approval from Towns of Chapel Hill and Carrboro for modification of the WSMPBA. o Submit application for 5 million gallons per day (MGD) Jordan Lake Level 1 water supply allocation. Measure of success: EMC approval for OWASA to retain its 5 MGD water supply allocation and convert its status from Level II (long-term future use) to Level I (for use within the next 5 years). Page 5 4.7

43 Complete by: 2012 C.1 Continue to evaluate and implement needed changes in compensation and development programs to attract and retain a diverse and high performing team of employees. In May, 2011 applicants were offered the option of applying for vacant positions completely on-line. The Board approved an average merit pay increase for employees of 2.5% effective October 24, In December, 2011 work began on the Employee Classification and Compensation Study. The study will analyze and recommend improvements in four areas: employee classifications, compensation structure, total compensation, and our performance appraisal/pay-for-performance system. Future work: o Working with the Board s Human Resources (HR) Committee, provide recommendation to the Board of Directors regarding the draft Final Report for the Employee Classification and Compensation Study (expected in spring 2012). o Meet with HR Committee to discuss additional opportunities to attract and retain a diverse and high performing team of employees. Measure of success: Attrition rate July 1, 2010 December 31, 2011 = 4.4% Diversity July 1, 2010 December 31, 2011: Male 78% Female 22% Minority 24% Complete by: Ongoing C.2 Develop a Succession Plan for Key Positions. Succession Plan for the Executive Director was accepted by the Board on June 10, Succession plans for key employees throughout the organization have been completed. Measure of success: There have been five internal promotions using the Skill Based Pay program. Complete by: Completed. Plans will be modified as needed as personnel changes occur. C.3 Complete development and field validation of OWASA infrastructure in the Geographic Information System (GIS). Substantial progress has been achieved, but much work remains and will require several more years of sustained effort. Recent accomplishments: Completed field validation of the locations and attributes of water distribution lines, fittings, hydrants, valves, etc. for 76% of OWASA s service area. Page 6 4.8

44 Future work: Purchased new survey grade global positioning system equipment to accurately locate the vertical and horizontal locations of key assets. Provides greater overall accuracy of GIS data especially for the wastewater collections system and less reliance (and associated costs) on outside surveyors. Integrated key information from the Customer Service database into the GIS database, thus enabling GIS users to view service and customer information through the GIS and WebGIS interfaces. o Field validation of the remainder of the water distribution system; improved accuracy of sewer system data in areas where problems have been specifically identified; and improved linkage between GIS and OWASA s Customer Service database. Improving the accuracy/functionality of this critical system will be ongoing. o Further integration between Customer Service and GIS databases; will provide access to historical consumption data through GIS. o Properly recorded or platted easements do not exist for substantial parts of OWASA s wastewater collection system, especially for the older portions that were constructed before OWASA began operating in The lack of documentation can interfere with our ability to access portions of our system, thereby preventing or limiting our ability to properly maintain, repair and rapidly respond to emergencies. This lack of documentation can also limit OWASA s legal authority to resolve or prevent encroachments where property owners place structures, driveways, plantings, etc. above or in close proximity to our underground infrastructure. These encroachments further complicate our access issues, posing challenges for OWASA work crews and contractors. Work is underway to define and identify the scope of the situation; resolving it may require additional resources. Measure of success: All employees regard GIS-based water and sewer information as highly accurate and reliable. Complete by: The validation of water features in the remainder of the service area and resolution of other known deficiencies will be completed by D.1 Implement new and improved online billing and account management features. Customer Web is up and running. Redundancies in entering credit card transactions have been eliminated as noted above. Approximately 31% of customers have registered for Customer Web and 13% have elected to receive their bills online versus receiving a paper bill by mail. Future work: o Promote increased use of Customer Web. Measure of success: Customer Web formally rolled out to customers October 28, 2010; redundant transaction processing eliminated by October 1, 2010; 10% growth per year in number of customers using online billing with 30% of customers using online billing by the end of the third year from implementation. Page 7 4.9

45 Complete by: 10% of customer base using online billing by June, 2011 (this measure was achieved) 30% of customer base using online billing by June, 2013 (currently at 13%) D.2 Develop a plan to measure customer satisfaction, now and into the future. Future work: o On November 3, 2010, The Outreach and Education Committee agreed that this survey should be deferred until after the budget process in The survey will be a part of the Outreach and Education Committee s implementation plan mentioned in Section A.4 above. Measure of success: Extent of customer participation in the survey. Complete by: November, However, the Outreach and Education Committee s implementation plan calls for development of future annual surveys of customers satisfaction and their perceptions of OWASA. Page

46 AGENDA ITEM REVIEW OF DRAFTS OF THE FOLLOWING BUDGET PLANNING DOCUMENTS: STATEMENT OF STRATEGIC ISSUES AND POLICIES, PLANNING ASSUMPTIONS AND BACKGROUND INFORMATION, FISCAL YEAR 2013 DRAFT BUDGET CALENDAR BACKGROUND OWASA s Financial Management Policy requires a review by Staff, the Finance Committee and Board of Directors of the strategic issues, policies, and economic assumptions that are expected to impact the preparation of the budget and rates. The identification of these key issues is intended to guide the Board and staff in the preparation of the annual budgets. The planning assumptions and background information reflect internal and external constraints that affect OWASA s operations and finances. The budget calendar includes the approximate dates of Board and Committee meetings at which budget matters are to be discussed and lists the dates by which major budget tasks are to be completed. The attached documents have been prepared by staff and will be discussed with the Finance Committee at its meeting on January 26, ACTION NEEDED Provide guidance to the Finance Committee and staff as appropriate on the budget planning documents for Fiscal Year January 26,

47 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. MEMORANDUM TO: Board of Directors THROUGH: Ed Kerwin FROM: Stephen Winters, CPA DATE: January 20, 2012 SUBJECT: Review of Drafts of the following budget planning documents: Summary of Strategic Issues Planning Assumptions and Background Information Fiscal Year 2012 Budget Calendar As part of the annual budget process, OWASA s Financial Management Policy requires a review of the budget calendar, strategic issues, policies, and assumptions that are expected to impact rates and the preparation of the budget. The attached documents have been prepared by staff and will be discussed with the Finance Committee at its meeting on January 26, The Summary of Strategic Issues is intended to guide the preparation of the annual budget and inform the organization s long-term comprehensive financial planning. The Planning Assumptions and Background Information reflects the legal, regulatory and contractual constraints to which we are obligated, and provides various assumptions. The Budget Calendar includes the proposed dates of Board and Committee meetings at which budget matters are to be discussed and the dates by which major budget tasks are to be completed. Stephen Winters, CPA Director of Finance and Customer Service Attachments: Drafts of the following documents: Summary of Strategic Issues Draft Planning Assumptions and Planning Background Document Fiscal Year 2012 Draft Budget Calendar 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)