Agenda - 02-20-2018 4-a - OWASA Annual Update Presentation

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OWASA Annual Report January 23, 2018 Page 4 As part of our regulatory monitoring, we test every three years for lead in tap water at 30 homes built between 1983 and 1985. The results from this testing in 2017 were that 90% of samples tested below the detectable level of 3 parts per billion (ppb). In 29 of the water samples, lead was below the detectable level of 3 ppb. We found lead in one sample at a level of 4 ppb, which is below the Federal action level of 15 ppb. We continue to offer drinking water quality testing to all of our customers free of charge. Quality of our treated wastewater and biosolids In July 2017, we received the Platinum Peak Performance Award from the National Association of Clean Water Agencies for seven consecutive years of meeting all standards for the quality of our treated wastewater. Our treated wastewater has phosphorus and nitrogen levels well below the limits set by the State for our Mason Farm Wastewater Treatment Plant. We also continue to meet all standards for the quality of the treated wastewater solids, and our Class A biosolids (the solid residue from wastewater treatment) meet federal environmental standards for “exceptional quality.” We recycled our biosolids primarily to enhance the soil on approved farmlands in Orange, Chatham and Alamance Counties. Some biosolids are recycled at a private composting facility in Chatham County which makes a soil additive for landscaping. Energy management In April 2017, the Board adopted an Energy Management Plan that included a suite of strategies to help us work towards our Board-set energy management goals to: • Reduce our use of purchased electricity by 35% by 2020 compared to a 2010 baseline. • Reduce our use of purchased gas by 5% by 2020 compared to a 2010 baseline. • Beneficially use all Mason Farm Wastewater Treatment Plant biogas by 2022, provided the preferred strategy is projected to have a positive payback within the expected life of the required equipment. • Formally engage local governments and partners in discussion about potential development of biogas-to-energy projects at the wastewater treatment plant. • Seek proposals for third-party development of renewable energy projects on OWASA property. This plan is a key milestone to improve the environmental impact of our operations, reduce costs, and improve reliability. It represents our first formal, comprehensive, organization-wide evaluation of ways we can better manage energy across all our facilities. On February 22, 2018, the Board will receive and discuss an update to the Energy Management Plan. Diversity and Inclusion Program We are proceeding with our Implementation Plan for the Employee Diversity and Inclusion Program. Our consultant, VISIONS, Inc., has trained a Diversity Leadership Group, Diversity Recruitment Group and a Diversity Resource Group as well as the OWASA Board of Directors. 5