Update on Implementation of Triennial Strategic Plan ( ); Strategic Priorities for FY 2015/ Debby Cherney Deputy General Manager August 19, 2015

EMWD – Business Practices and Standards 2 What are the Key Business Practices and Standards that define EMWD to its stakeholders? Superior customer and community service. Sound planning and appropriate investment. Highly reliable water, recycled water and wastewater service. Public and environmental health. Fiscal responsibility. Exemplary employer. Transparency.

Triennial Strategic Plan 3 The Strategic Plan translates these standards into seven key Strategic Objectives approved by the Board: 1.Achieve an optimal balance of water supplies at a reasonable cost. 2.Provide safe, reliable and cost-effective collection and treatment of wastewater and beneficial reuse of biosolids. 3.Maintain financial stability and provide responsible stewardship of public funds. 4.Improve operational efficiency through industry leading processes and practices. 5.Become the “Employer of choice.” 6.Seek mutually beneficial community outreach and partnerships; constructive advocacy with all stakeholders 7.Exceed customer expectations in all facets of our service.

Triennial Strategic Plan Strategic Priorities for FY New Priorities added in FY Most are Multi-Year Efforts Completed / Substantially Completed 34 For FY : Propose to add 15 new strategic priorities By Fiscal Year-End, staff expects to have completed 61 of the 77 total strategic priorities STRATEGIC PLAN STRATEGIC PRIORITIES Specific Actionable Projects and Goals, Target Dates & Lead Staffing

Water Supply & Reliability 5 Strategic Priorities: -Supply Diversity & Reliability -Groundwater Basin Model Update – Completed -MoVal Groundwater Development Program -Indirect Potable Reuse Project Development -Water Shortage Contingency Plans and Drought Management – Completed -Evaluate Long-Term Water Supplies for the Hemet/San Jacinto Area – Completed -Develop Additional Water Supplies for Hemet/San Jacinto Areas – New -Advance EMWD as Groundwater Sustainability Agency for the Region – New -Metropolitan Integrated Resource Planning and regional Infrastructure Collaboration - New

Water Supply & Reliability (Con’t) 6 Strategic Priorities (con’t): -Supply & System Redundancy -Local Water Banking Project Action Plan -Perris II Desalter Program Development and Funding Strategy -Recycling -RCWD Recycled Water Agreement – Completed -East Diamond Valley Recycled Water Storage – Completed (deferred) -Quality -CDPH Corrective Actions from Sanitary Surveys – Completed

Water Supply & Reliability (Con’t) 7 Strategic Priorities (con’t): -Water Use Efficiency -Water Loss Control – Completed -Salinity Management -Santa Margarita River Salt & Nutrient Compliance – Completed -Brine Management Strategy – Completed -Drought Related Water Quality Concerns

Wastewater Collection & Treatment 8 Strategic Priorities: -Quality -Basin Plan & Discharge Salinity Compliance – Completed -Wine Country Infrastructure Design and Implementation -Quail Valley Sewer System (Sub-Area 9) -Recycling -Optimize Secondary Treatment Process to Improve Recycled Water Production Reliability – Completed -Discharge Permit Amendment for the TVRWRF 23 MGD Expansion - New

Finance & Treasury 9 Strategic Priorities: -Financial Stability -Long-Range Financial Model - Completed -Reduce Debt Service Costs by Optimizing Debt Portfolio - Completed -OPEB Funding Strategy - Completed -Cost of Service Study -Replacement and Refurbishment Planning Model - Completed -Improved Capital Planning Process -Revised Rates & Charges – New -Risk Management Program Enhancements - New

Operational Efficiency 10 Strategic Priorities: -Business Processes and Technology -Modernizing Accounting Operations -Information Delivery Strategy - Completed -Mobile Network Solution Strategy -Procurement Policy & Procedure Update - Completed -HR/Payroll System Replacement -One GIS Strategy – Completed -Contract Administration System – New - Management System – New -Comprehensive IT Master Plan - New

Operational Efficiency (Con’t) 11 Strategic Priorities: -Energy Independence -Solar Power Generation -Energy Management Plan - Completed -Air Quality Compliance for Biogas -Maintenance -Asset Life Monitoring and Replacement Forecasting - Completed -RWRF Chlorine Equipment Maintenance Program -Heavy CNG Fleet Conversion -Facilities Aesthetics – Repair & Refurbishment -MWD Collaboration for Chlorine Supply Chain Reliability and Maintenance Training -Potable Water Pump Station Optimization - New

Operational Efficiency (Con’t) 12 Strategic Priorities: -Planning -Flow Monitoring and Calibration of Sewer Model -Partner with MWD for Procurement of Chlorine - Completed -Evaluate New Business Tenant Types

Human Resources & Safety 13 Strategic Priorities: -Workforce Excellence -MOU Negotiations – Completed -MOU Implementation – Completed -Supervisory Skills Development Program – Completed -Internship Program – Completed Labor Negotiations – New -Succession Planning – New -Apprenticeship Program Development - New

Human Resources & Safety (Con’t) 14 Strategic Priorities: -Safety/Security -Safety Excellence Report / Cal-Star Recertification – Completed -Emergency Preparedness and Security Plans -System Vulnerability Assessment

External Affairs 15 Strategic Priorities: -Community Relations -Communication, outreach & media initiatives -Comprehensive interagency coordination – Completed -SJRWRF Educational Facility Revitalization -Partnerships -Legislation addressing County Water Co. – Completed -County Water Company of Riverside System Transfer -Opportunities to leverage District resources – Completed -MWD Policy Initiatives -Business Outreach Program – Completed -Interagency Development Outreach (Land Agencies) -Diamond Valley Lake Land Use Ad Hoc Committee Facilitation - New

External Affairs (Con’t) 16 Strategic Priorities: -Advocacy -Increase EMWD’s Policy Influence -Legislation on Tiered Rates - New -Responsible Regulation -WateReuse Recycled Water Reform Act – Completed

Customer Service 17 Strategic Priorities: -Customer Awareness -District-wide customer opinion survey - Completed -Tap Water program - Completed -Customer Service Technology -Automated Metering Infrastructure (AMI) -Interactive Voice Response (IVR) Replacement - Completed

Strategic Priorities Recommendation 18 Approval of the FY 2015/16 Strategic Priorities as presented, with 15 new additions

Next Strategic Planning Cycle 19 Goal: Move to Calendar Year Planning Cycle to Facilitate Budget Preparation and Discussions OctoberNovemberDecember Board Special Workshop Management Forums Board Workshop: Draft Plan Employee Town Hall Meetings Board Adoption of Triennial Strategic Plan – 2016 to 2018

Contact Information Debby Cherney Deputy General Manager (951)