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Five Year Strategic Plan: FY2013-2017

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Five Year Strategic Plan: FY2013-2017 NORTHAMPTON BUCKS COUNTY MUNICIPAL AUTHORITY Five Year Strategic Plan: FY2013-2017 Working Document as of 11/07/2012 FIVE YEAR STRATEGIC PLAN: FY2013‐ 2017 November 2012 All trademarks, service marks and other marks belong to their respective owners. The statements, configurations, technical data, and recommendations in this document are believed to be accurate and reliable at the time of publication, but are presented without warranty. Working Document Subject to Revision. ii FIVE YEAR STRATEGIC PLAN: FY2013‐ 2017 TABLE OF CONTENTS NORTHAMPTON BUCKS COUNTY MUNICIPAL AUTHORITY ........................................................ I CHAPTER 1 – INTRODUCTION TO FIVE YEAR PLAN .............................................................................. 1—5 PURPOSE OF THE PLAN .......................................................................................................................................... 1—5 MAINTENANCE OF THE PLAN ................................................................................................................................ 1—5 CHAPTER 2 - ABOUT THE AUTHORITY ...................................................................................................... 2—7 AUTHORITY MISSION, VISION AND PRINCIPLES ...................................................................................... 2—7 Mission .............................................................................................................................................................. 2—7 Vision ................................................................................................................................................................ 2—7 Principles .......................................................................................................................................................... 2—7 POPULATION AND DEMOGRAPHICS: .......................................................................................................... 2—7 CHAPTER 3 - THE PLAN: CONTINUOUS IMPROVEMENT AND CHANGE ......................................... 3—9 AUTHORITY OPERATIONAL PHILOSOPHY: TOTAL PRODUCTIVE MAINTENANCE (TPM) .......................... 3—9 THE HUMAN ELEMENT ................................................................................................................................... 3—9 Succession Planning & Change Management: ................................................................................................. 3—9 THE AUTHORITY WATER OPERATIONS OVERVIEW: (PWSID – NO. 1090089) .................................... 3—10 H2O REGULATORY REQUIREMENT / COMPLIANCE STANDARDS ........................................................ 3—11 LONG TERM WHOLESALE WATER SUPPLY AGREEMENT WITH BCWSA ............................................. 3—12 THE AUTHORITY SANITARY SEWER OPERATIONS OVERVIEW ......................................................... 3—13 INTRODUCTION ............................................................................................................................................ 3—13 The Authority’s SERVICE AREA FLOWING TO THE NESHAMINY INTERCEPTOR (BCWSA) ................. 3—16 INFLOW AND INFILTRATION ( I&I ) ........................................................................................................... 3—17 THE AUTHORITY’S I&I ABATEMENT PROGRAM .................................................................................... 3—18 CONDITION OF EXISTING SYSTEM ............................................................................................................ 3—26 CORRECTIVE ACTION PLAN (“CAP”) ....................................................................................................... 3—29 LITAGATION & PENDING ISSUES OF CONSIDERATION ........................................................................ 3—33 FINANCES OF THE AUTHORITY .................................................................................................................. 3—34 AUTHORITY DEBT ........................................................................................................................................ 3—34 CAPITAL RESERVES ..................................................................................................................................... 3—34 CAPITAL BUDGET ........................................................................................................................................ 3—34 2013 OPERATIONAL BUDGET .................................................................................................................... 3—35 CAPITAL PLAN (5 YEAR PLAN) ................................................................................................................... 3—36 Working Document Subject to Revision. iii FIVE YEAR STRATEGIC PLAN: FY2013‐ 2017 THIS PAGE INTENTIONALLY BLANK Working Document Subject to Revision. iv FIVE YEAR STRATEGIC PLAN: FY2013‐ 2017 Chapter 1 – Introduction to Five Year Plan Purpose of the Plan The purpose of Northampton, Bucks County, Municipal Authority (”Authority”) 5 year strategic plan (“Plan”) is to provide a long range forecast of necessary sanitary sewer / water improvements and maintenance activities to meet the needs of our community. The Plan provides policy makers and the community with a strategic approach to the implementation and administration of improvements and maintenance projects. Decisions about improving the Authority’s infrastructure must be made not only on the basis of need, but also on the basis of availability of resources, and long-term impact on the community. The Plan identifies the Authority’s infrastructure, establishes priorities and provides for an allocation of resources to meet those objectives. It is prudent for the Authority to retain adequate capital reserve balance for unexpected conditions and events due to the capital intensive nature of a utility. Maintenance of the Plan The Plan represents an ongoing working planning tool for projected monetary infrastructure and maintenance needs during the next five years. While the improvements in the proposed Plan are not “written in stone”, they do provide a sound framework for allocating, planning and forecasting personnel and finance requirements. The cost projections in the Plan are educated estimates using 2012 dollars amounts for capital projects, which will be refined during subsequent processes including budget deliberation, feasibility studies, alternative analysis studies and bidding processes. In addition, the Plan and subsequent annual amendments will be presented to the Authority Board for annual review, update and annual forecast planning purposes. The purpose of the Plan is to provide a living document that identifies the Authority’s infrastructure needs, skill set staffing requirements, development objectives, regulatory requirements and appropriate allocation of resources. The projects and initiatives are designed to meet the Authority’s current and future needs while providing a safe environment and safe drinking water for our ratepayers in a fiscally responsible manner to our bond holders. Certain statements in this Plan are forward-looking statements These forward-looking statements are predictions based on our current expectations and assumptions regarding future events and may relate to, among other things, our projected capital expenditures and related funding requirements, our ability to repay debt, our ability to finance current operations , the impact of legal proceedings and potential fines and penalties, regulatory or legal developments or rate adjustments. Actual results could differ materially because of factors such as decisions of governmental and regulatory bodies, including decisions to raise or lower rates; changes in laws, governmental regulations and policies, including environmental, health and water quality and public utility regulations and policies; weather conditions, patterns or events, including drought or abnormally high rainfall; changes in customer demand Working Document Subject to Revision. 1—5 FIVE YEAR STRATEGIC PLAN: FY2013‐ 2017 for, and patterns of use of, water, such as may result from conservation efforts; our ability to obtain permits and other approvals for projects; changes in our capital requirements; our ability to control operating expenses and to achieve efficiencies in our operations, electricity, fuel, water and other raw materials that are needed for our operations; cost overruns relating to improvements or the expansion of our operations; changes in general economic, business and financial market conditions; access to sufficient capital on satisfactory terms; restrictive covenants in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt. Working Document Subject to Revision. 1—6 FIVE YEAR STRATEGIC PLAN: FY2013‐ 2017 Chapter 2 - About the Authority The Authority is an independent, governmental entity, created under the Pennsylvania Municipal Authorities Act as amended (“Act”) to provide public water and sanitary sewer services to its ratepayers. The Authority is responsible to its bondholders, ratepayers and regulatory agencies. Income to operate the Authority is derived directly from the service revenues provided by ratepayers using the public water and sanitary sewer services. The Certificate of Incorporation was issued to the Authority by the Secretary of the Commonwealth on December 31, 1964. Articles of Amendment
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