1. John Ward Director of Engineering Services March 3, 2015
Fiscal Year 2015 / 16 Second Quarter Enterprise Performance Measures Update
John Ward
Director of Engineering Services
March 3, 2015

2. Fiscal Year 2015-16 Second Quarter Enterprise Performance Measure
Enterprise Measures provide a summary of the District’s performance in a single graphic report.
Twelve proposed measures organized by the following categories:
Efficiency
Reliability
Service
Safety
Financial Performance
Goal: Provide the Board of Directors critical and timely business and financial information and identify trends.

3. Efficiency - Water Operating Cost per AF Delivered
Metric: Monthly water operating cost per acre foot (AF) delivered per month during the previous six months. Specifically, it measures the operating cost for water, including purchased water cost, O&M, energy, support costs, and administration relative to total acre feet sold. Importance: This metric serves as an indicator of operational efficiency related to the purchase, treatment, pressurization, and distribution of potable water. Goal: The fiscal year goal is $1,325 / AF, which is the average water service operating cost per acre foot from the fiscal year 2015/16 budget ($115 million operating cost for 86,700 acre feet in sales). Results: Results are affected by a 12% decline in water sales. Operating costs per acre foot were maintained by reduced treated water purchases and lower energy costs.
Q1 Notes:
GOAL: $1,325
Q4 Notes:
GOAL: $1,291
The average for April through June is $1,209.

4. Efficiency - Wastewater Treatment Operating Cost per MG Treated
Metric: Monthly wastewater operating cost per million gallons (MG) treated per month during the previous six months. The costs include treatment, collections, recycled disposal, energy, sludge hauling, support costs, and administration. Importance: This metric is an indicator of wastewater system efficiency. Goal: The fiscal year goal is $3,492 / MG, which is the average wastewater service operating cost per million gallons from the fiscal year 2015/16 budget ($57.0 million operating cost for MG over 365 days). Results: Performance is within two percent of goal.
Q1 Notes:
GOAL: $3,492
Q4 Notes:
GOAL: $3,292
The average for April through June is $3,300. June - premature failure of MVRWRF ($21,090) and Pala Lift II ($30,765) & biofilter drain TVRWRF ($38,093); $110,624 SWRCB fine sewer overflow French Valley (January 2013); tertiary cloth filter socks ($74,964) & duraflo liners ($16,658) PVRWRF.

5. Efficiency – Recycled Water Operating Cost per AF Delivered
Metric: Monthly recycled water operating cost per acre foot (AF) per month during the previous six months. Specifically, it measures the total operating cost for recycled water, including transmission, pumping, energy, storage, and support costs relative to total acre feet sold. Importance: This metric provides the District with a long term indication of recycled water system efficiency. Goal: The fiscal year goal is $203 / AF, which is the average recycled water operating cost per acre foot from the fiscal year 2015/16 budget ($6.7 million operating cost for 33,000 acre feet in sales). Results: Trend exceeded goal as sales dropped compared to Q2 14/15.
Q1 Notes:
GOAL: $203
Q4 Notes:
GOAL: $180

6. Efficiency – CIP Budget Execution
Metric: Capital Improvement Program - Actual Project Expenditures versus Project Budget measures the District’s ability to implement the Planned CIP and adhere to schedule and cost commitments. The District score is presented as a rolling 12 month average. Importance: This metric tracks progress of CIP execution and allows for refinement of CIP budget estimates and project prioritization. Goal: The fiscal year goal is to spend 80 percent or more of the budgeted CIP projects. Results: Trend has been improving with recently deployed budget management tools.
Q1 Notes:
GOAL: => 80%

7. Reliability– Customer Hours Out-of-Service
Metric: Sum of the hours out of water multiplied by the number of water accounts affected per event divided by For example, if 100 customer accounts are out of water for ten hours, the measure would reflect one Out-of-Service hour per 1000 accounts for that event. Importance: This metric measures the District’s performance related to restoring water service to our customers. Goal: The fiscal year goal of six hours per 1000 accounts has been established based on 12- months of performance. Results: Performance in Q2 was satisfactory with a spike in October due to two pipeline leaks.
Q2 Notes:
GOAL: 6
DATE                                   HOURS                 # of Events
October:                             745                       18
November:                         388                       12
December:                         475                       17
Largest Events
Outage #             Date                      Reason                                            Area                  # of Customers       Hours                  Total Hours            Emergency/Planned
1866                     10/4/15               Leak                                                  Perris                 61                              1.5                        91.5                         Emergency
1874                     10/20/15             Leak                                                  Sun City            12                               6                           72                             Emergency                                       
1876                     10/22/15            3 New Valves Installed                  Menifee            47                              10                         470                           Planned – Contractor Work
Q1 Notes:

8. Reliability – Wastewater Treatment Reliability
Metric: This metric is intended to measure the District’s performance related to Wastewater Treatment Facility Production Uptime. It represents the average uptime of various treatment processes. Importance: RWRF production affects the Recycled Water Supply. Goal: A goal of 98 percent uptime has been established based on twelve months of data. Results: The trend has remained favorable over Q2.
Q2 Notes:
GOAL: 98%
Q1 Notes:

9. Reliability – Wastewater Spills of Collection and RWRF Systems
Metric: Measures the number of spills in the Wastewater collection and treatment facilities. Within the treatment facilities, a spill is defined as raw or secondary sewage spills greater than 1,000 gallons, tertiary greater than 50,000 gallons, or any effluent that left the plant property. Importance: This metric measures the District’s compliance with regulatory requirements. Goal: The fiscal year goal of less than three spills per month has been established based on 24 months of data and industry benchmarks. Results: With the exception of one brine spill in August, the trend has remained favorable over the past two quarters.
Q2 Notes:
GOAL: 3
Q1 Notes:
We had one SSO in the month of August.  
An air vac broke off on the brine line just outside the Desalters, approximately 12,500 gallons of brine was released. Some entered Salt Creek channel.

10. Service – Customer Satisfaction Score of Last Experience Survey
Metric: Measures the weighted average score of the Last Experience Surveys received. The surveys include customer service call-ins as well as customers who have recently contacted the District regarding a system concern. Importance: This metric provides staff with a leading indicator of customer satisfaction related to recent customer contact. Goal: The fiscal year goal is to receive 90 percent Satisfaction of all survey responses. Results: Results remain favorable in Q2.
Q1 Notes:
GOAL: 90
During the month of July 2015 the customer service call-in score was 86.87%.  This result is due to the Water Shortage Contingency Plan, rate changes and change in delinquency process.

11. Safety – Injury and Illness Rate
Metric: Measures the District’s Injury and Illness Rate as defined by OSHA (Annual Sum of recordable injury / illness multiplied by 200,000 and divided into the Annual Sum of Hours worked by all employees). The District score is presented as a rolling 12-month average. Importance: This metric measures the effectiveness of the District’s Total Safety Culture. Goal: The fiscal year goal of 4.25 has been established based on six months of data. Results: The trend has been favorable with performance exceeding the goal for Q2.
Q2 Notes:
GOAL: 4.25
Q1 Notes:
Due to a correction in the hours worked, and a reclassified injury from 2014, you will find different numbers from January through September for the rolling 12 month average.

12. Financial – General and Admin
Financial – General and Admin. Costs as a Percent of Total Operating Cost
Metric: Monthly non-allocated general and administrative (G&A) costs as percent of total operating costs (including the G&A costs) during the previous six months. The District score is presented as a rolling 12-month average. Importance: This metric measures the non- allocated G&A costs to support the general administrative facilities and operations of the District. Goal: The fiscal year goal is 9.4 percent, which is the level from the fiscal year 2015/16 budget ($19.9 million non-allocated G&A relative to $210.8 million cost; $19.9/$210.8 = 9.4 percent). Results: Trend is within 5% of goal in Q2.
Q1 Notes:
GOAL: 9.4%
Q4 Notes:

13. Financial Performance – Net Operating Margin (Revenue Minus Cost)
Metric: Monthly operating revenue (water, wastewater, and recycled) less operating costs during the previous six months. Importance: This metric measures the net operating margin of the District’s services. If margins are insufficient, net contributions to District reserves are impacted. Goal: The fiscal year goal is $1.86 million per month, which is from the fiscal year 2015/16 budget ($221 million in operating revenue less $198.4 million in operating cost = $22.3 million annual operating margin). Results: Net operating margins increased in December as result of lower treated water purchases relative to budget ($1.6 million below budget) and higher tier 4 sales (Stage 4b of WSCP).
Q1 Notes:
GOAL: $1.86 M
Q4 Notes:
GOAL: $0.97 M

14. Financial – Investment Performance Compared to 3-Year Treasury Yield
Metric: Annualized investment yield of District’s portfolio compared to the three-year US Treasury yield. Importance: This metric measures the investment performance of the funds managed by the District. Goal: The fiscal year goal is to exceed the three- year US Treasury yield benchmark each month, which varies. Results: Yields declined beginning in June as a result of an $80 million new money financing increasing the investment in the LAIF funds at ~0.30 percent. Funds remain liquid as this cash will be used to fund projects through March Treasury rates anticipated to escalate throughout the fiscal year.
Q1 Notes:
GOAL: > THREE-YEAR TREASURY YIELD
Q4 Notes:
Yields declined in June as a result of an $80 million new money financing increasing the investment in the LAIF funds at 0.23%.  Funds are remain liquid as this cash will be used to fund projects over the coming six to nine months.

15. Summary
For the first quarter of FY , 10 out of 12 measures are performing better than the goal.
Two measures are not meeting the respective goal:
Water Operating Cost per AF
Recycled Water Operating Cost per AF
Next quarterly report is scheduled for June of 2016.
Q1 Notes:
Q4 Notes:

16. John Ward
Director of Engineering Services
(951) Ext. 4453