1. The East Orange Water Commission presented by Mayor Lester E. Taylor III and EOWC President Michele Antley City of East Orange 44 City Hall Plaza, East Orange, NJ 07018 tel (973) 266-5151 mayor@eastorange-nj.gov www.eastorange-nj.gov

2. Overview of the EOWC Created in 1909 Of 565 municipalities in New Jersey, East Orange is one of only three (3) municipalities to own and operate a water entity Services the City of East Orange, Village of South Orange and properties in Millburn (approximately 88,000 customers) Currently pumps up to 7 million gallons per day, but could pump up to 11.2 at full capacity East Orange Water Reserve covers 2,400 acres with 18 (mostly artesian) wells

3. Years of Neglect Upon being sworn in on January 1, 2014, Mayor Taylor was presented with a EOWC that suffered from:  Aging infrastructure  Fiscal and technical mismanagement  Misreporting of contaminant levels  Increasing water rates  Loss of customers  Damaged reputation due to ethical and criminal misconduct by former EOWC employees

4. Significant Financial Loss Lack of routine maintenance over more than a decade necessitated $10-$20M in infrastructural improvements Inferior customer service and poor fiscal management resulted in $3M deficit (CY2014) Operating budget approx. $20M

5. First Steps Removed prior Board and installed new Board of Commissioners Administration is working cooperatively with Board to preserve, protect and enhance East Orange’s water supply Successful negotiations with NJDEP, South Orange Village, and Newark Water Department to reduce fines, improve customer service and reduce dependency on outside provider.

6. Next Steps Market entity to get new subscribers Create jobs for residents Additional revenue for municipal budget Access to STEM education and experiential opportunities for students

7. EOWC Governance Michele Antley appointed by Mayor and elected by Co-Commissioners as President Understanding role and responsibilities of Commissioners, i.e. governance vs. day-to-day management Operate asset in accordance with modern 21 st Century practices Implement policy

8. Current Projects Working on increasing the volume and quality of the water by approving two contracts:  Well Rehabilitation Project Phase II  Installation of an Airstripper Device Air stripping is a very reliable way to remove volatile organic compounds from drinking water.

9. Air Stripper Device VOC- Contaminated Water Air + VOC Contaminants Treated Water Forced Air from Blower Packing Media

10. Air Stripper Facility Rendering

11. Management and Best Practices After completing fair, open and competitive procurement process, contract was awarded to Veolia Water North America, one of the world’s leading water suppliers In first 60 days, we’ve already realized hundreds of thousands of dollars of cost savings and/or efficiencies to minimize cost and maximize productivity Training existing staff to expedite EOWC self-sufficiency