MCWA Team Wins NY State Title In Annual AWWA ‘Top Ops’ CompetitionThe American Water Works Association hosts annual competitions across the country to test the on-the-job knowledge of water utility employees, and MCWA is always quick to field a team.

The competition, known as Top Ops, is set up in a “college bowl” format, where teams of water operators vie against each other in a fast-paced, question-and-answer tournament. A moderator poses a series of questions covering a wide range of technical subjects, and the first team to answer each correctly receives points for doing so.

Questions may range on topics from basic water technology sciences to plant and laboratory safety to process control situations. This means it requires both a breadth and depth of knowledge to be an effective contestant.

In 2016, the MCWA team took home first place in the New York State Competition. Our team also won in 2011, 2013, 2014, 2015 and 2016.

ANNUAL REPORT

2016

M O N R O E C O U N T Y W A T E R A U T H O R I T Y

M O N R O E C O U N T Y W A T E R A U T H O R I T Y

475 Norris DriveRochester, New York 14610-0999

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To our customers:

BOARD OF DIRECTORSLarry M. Magguilli

Chairman

Scott D. Nasca Vice-Chairman

Joseph R. Rulison Treasurer

Wendy Bleier-MervisRobert W. HurlbutAllen S. BernsteinSheryal A. Volpe

MANAGEMENT TEAM

Nicholas A. Noce Executive Director

Richard J. Metzger, P.E. Executive Engineer

Raymond W. Benshoff Executive Director

of Operations

Christian E. King, P.E. Director of Production

& Transmission

Kathleen A. Prestidge Director of Finance & Business Services

Stephen M. Savage, P.E. Director of Engineering

It’s always gratifying to be recognized for one’s efforts, and MCWA has received a number of honors and awards in 2016.

While we are proud of all of these achievements, we take particular pride in the J.D. Power Award as the highest rated water purveyor in the Northeast in terms of customer satisfaction. And the reason for that pride lies in those last two words: customer satisfaction.

Providing outstanding service to our customers has long been a priority for MCWA, and that goal has been made a reality by our truly dedicated employees. To have a highly respected, independent research organization validate their hard work is a fitting salute—and an incentive to redouble our efforts going forward on behalf of our valued customers.

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ANNUAL REPORT

2016

J.D. Power is a global marketing information services company providing performance improvement, social media, and customer

satisfaction insights and solutions. The company’s quality and satisfaction measurements are based

on responses from millions of consumers annually.

It’s always gratifying to be

recognized for one’s efforts,

and MCWA has received

a number of honors

and awards in 2016.

Larry M. Magguilli Chairman

Nicholas A. NoceExecutive Director

J.D. Power Ranks MCWA Highest In Northeast in Customer SatisfactionOutstanding customer service has long been a priority for—and hallmark of—the Monroe County Water Authority.

Even so, when the prestigious J.D. Power research organization in 2016 named MCWA the top water supplier in the Northeast in terms of customer satisfaction, it came as a bit of a very welcome surprise.

“We are extremely proud to be recognized by the results of this thorough, independent study,” said MCWA executive director Nicholas Noce. “We were a little surprised, however, because J.D. Power had never rated water delivery systems before.

“The most gratifying aspect, of course, is that this award is solely the result of direct input from our customers,” Noce said. “And, it’s all made possible by the skills, dedication and commitment to service of our MCWA employees.”

In announcing its 2016 Water Utility Residential Customer Satisfaction Study, J.D. Power noted: “Water utility companies need to stay up to date regarding their customers’ needs and expectations. Utilities that understand their attitudes, behaviors, and preferences are better able to target performance improvement initiatives that can increase overall customer satisfaction and garner support for infrastructure improvements.”

J.D. Power researchers identified six “satisfaction drivers” to help build a customer satisfaction index. The factors were: delivery, price, billing and payment, conservation, communications, and customer service.

The researchers conducted 28,000 online interviews with water utility residential customers across the United States, then weighted the results to reflect the experiences of some 86 million residential customers served by the 84 large water utilities included in the study.

At the conclusion of the comprehensive study, J.D. Power presented top awards to four utilities ranked highest in customer satisfaction in their regions—MCWA in the Northeast, Illinois American Water in the Midwest, Miami-Dade County in the South, and California Water Service in the West.

Erie Canal Crossing Pipeline: Public Works Project of the YearMCWA’s installation of an overhead, 24-inch-diameter water supply transmission line across the Erie Canal in the southeast service area has been recognized as a 2016 Project of the Year by the American Public Works Association (APWA).

The need for the new line stemmed from the increased population in recent years in the Town of Perinton and similar growth in municipalities in Wayne and Ontario Counties. That area had been dependent upon a single 16-inch-diameter transmission line across the canal near the Kreag Road Pump Station.

Originally planned as a second bored pipe crossing under the canal, the project was changed to an overhead bridge approach to avoid environmental ground water problems. After extensive regulatory compliance and permitting processes, construction began in late 2013 and was substantially finished in the spring of 2016.

The completed project included environmental considerations, such as dealing with a wetland area near the pump station, and installation of a sediment detention pond to protect against erosion. Because of its strength, aesthetics and sustainability properties, weathering steel pipe was chosen as the construction material for the bridge. Because the bridge is within the Erie Canal Heritage Trail, approval for the project was received from the New York State Office of Parks, Recreation and Historical Preservation.

M O N R O E C O U N T Y W A T E R A U T H O R I T Y

MCWA Receives Two Directors Awards From ‘Partnership for Safe Water’MCWA was honored in 2016 with two Directors Awards from the Partnership for Safe Water, one for the Shoremont Water Treatment Plant and another for the Webster Water Treatment Plant.

The Partnership for Safe Water is a cooperative effort among the Environmental Protection Agency, the American Water Works Association, the Association of Metropolitan Water Agencies, the National Association of Water Companies, the Association of State Drinking Water Administrators, and the Water Research Foundation.

The Partnership’s objective is to encourage water suppliers to minimize the risk to consumers through continuous improvement in surface water treatment plant performance.

To be eligible for a Directors Award, a utility must initiate a number of steps, including a rigorous self-assessment program, a plan to address opportunities to improve, and an overall commitment to continuous improvement.

2007 2008 2009

TOTAL WATER OUTPUT (MILLION GALLONS) Lake Ontario Production 20,981 18,846 17,931 Miscellaneous Purchases & Production(1) 121 122 148

ACTIVE CUSTOMERS Retail 170,264 170,679 171,387 Wholesale 18,052 17,687 19,296 Total 188,316 188,366 190,683

WATER SALES (MILLION GALLONS) Residential & Commercial 14,416 13,244 12,804 Large Commercial & Industrial 2,846 2,640 2,525 Wholesale 1,753 1,714 1,737 Total 19,015 17,598 17,066

WATER PURCHASES (NET EXCHANGE) 1,766 2,447 2,891

REVENUES (000’S OMITTED) Residential & Commercial $43,926 $41,080 $40,153 Large Commercial & Industrial 5,453 5,117 4,919 Wholesale 3,218 3,147 3,175 Total Metered 52,597 49,344 48,247 Fire Service 612 630 643 Interest Earnings 2,635 1,485 432 Federal Int. Subsidy Series 2010B Taxable Build America Bonds Other 3,239 3,158 3,286 Total $59,083 $54,617 $52,608

OPERATING EXPENSE (000’S OMITTED) Production/Transmission(2) $11,973 $12,416 $11,012 Engineering 2,256 2,265 2,427 Facilities, Fleet & Operations 10,807 11,195 10,771 Finance & Business Services 6,379 6,445 7,597 Administration 717 668 692 Total $32,132 $32,989 $32,499

NET REVENUE $26,951 $21,628 $20,109 CASH CAPITAL PROGRAM $13,011 $15,082 $9,503 CAPITAL LEASE PAYMENTS $1,862 $1,584 $1,493 WATER REVENUE DEBT SERVICE $4,470 $4,303 $4,310 COVERAGE EXCLUDING OBLIGATIONS ON LEASE FACILITIES(3) 6.03 5.03 4.67

Explanatory Notes(1) Miscellaneous Purchases and Production includes water purchases from Erie County and Town of Ontario, and production at the Corfu plant.(2) Includes Upland Improvements/City Contract-Capital.(3) Coverage calculation revised retroactively to include Interest Earnings and Federal Subsidy in net revenue.

2010 2011 2012 2013 2014 2015 2016

17,816 18,844 17,991 17,090 17,811 18,063 18,483163 159 161 151 165 144 156

172,470 173,134 173,554 180,238 181,677 182,394 183,65119,385 20,404 20,588 21,928 17,603 18,125 18,608

191,855 193,538 194,142 202,166 199,280 200,519 202,259

12,798 13,136 13,453 12,871 12,733 12,686 13,7292,550 2,545 2,531 2,535 2,495 2,382 2,5881,771 1,816 1,849 1,389 1,338 1,375 1,512

17,119 17,497 17,833 16,795 16,566 16,443 17,829

2,911 2,531 3,517 3,279 2,718 2,361 2,983

$39,945 $41,689 $44,375 $45,018 $47,300 $48,987 $53,7414,968 5,164 5,184 5,242 5,439 5,308 5,9013,239 3,482 3,554 2,661 2,646 2,829 3,205

48,152 50,335 53,113 52,921 55,385 57,124 62,847636 664 793 982 1,225 1,250 1,275253 548 192 147 115 98 145

2,059 2,003 1,855 1,859 1,852 1,8653,244 3,272 3,426 3,389 3,391 3,608 3,608

$52,285 $56,878 $59,527 $59,294 $61,975 $63,932 $69,740

$12,459 $12,695 $13,685 $14,713 $12,904 $12,282 $13,1022,620 2,761 2,407 2,852 3,373 3,554 3,709

11,122 11,509 11,716 11,201 12,975 12,933 11,6718,030 8,964 5,258 5,836 6,013 6,036 6,136

679 756 4,909 4,640 6,865 8,217 8,629$34,910 $36,685 $37,975 $39,242 $42,130 $43,022 $43,247

$17,375 $20,193 $21,552 $20,052 $19,845 $20,910 $26,493$6,914 $5,835 $12,452 $4,633 $9,364 $16,443 $18,878$1,436 $1,421 $1,376 $1,303 $1,231 $641 $620$4,319 $8,193 $7,991 $10,020 $10,568 $10,619 $10,837

4.02 2.46 2.70 2.00 1.88 1.97 2.44

ANNUAL REPORT

2016Operating Statistics(2007-2016 UNAUDITED)

M O N R O E C O U N T Y W A T E R A U T H O R I T Y

Large Commercial Sales and Industrial 1000 Gallons

Lidestri Foods Inc. 414,620Xerox 196,060Rochester Institute of Technology 177,347Wegmans-1500 Brooks Ave. 68,176Delta Sonic 63,331Tech Park Owner LLC 49,990Darien Lake Theme Park 42,722Nazareth College 38,059Bouduelle USA Inc 28,214Monroe County Pure Waters 22,190Subtotal 1,100,709Remaining 469 Accounts 1,558,676

Total 2,659,385

Customers Sales Water Districts By Town 1000 Gallons

Wayne County Water & Sewer 4,360 333,815Village of Brockport 1,798 288,967Sea Breeze Water District 3,129 210,449Genesee County 3,500 205,812Village of Hilton 1,810 167,611Livingston County Water & Sewer 1,050 86,602Village of Victor 1,012 73,983Town of Clarendon 784 58,677Village of Holley 763 45,310Town of Murray 390 39,710Town of Farmington 12 704

Total 18,608 1,511,640

Residential and Customers Sales Small Commercial By Town 1000 Gallons

Town of Greece 32,930 2,389,189Town of Irondequoit 16,607 1,107,346Town of Perinton 14,055 1,086,339 Village of Fairport 2,054 130,949Town of Henrietta 13,218 1,018,673Town of Webster 13,688 984,204 Village of Webster 1,574 154,415Town of Penfield 12,478 955,833Town of Brighton 10,088 950,229Town of Pittsford 8,942 773,122 Village of Pittsford 674 51,207Town of Gates 10,255 696,661Town of Chili 9,556 674,025Town of Victor 4,315 408,177Town of Ogden 4,937 359,798 Village of Spencerport 1,313 89,836Town of Parma 3,622 221,354 Village of Hilton 191 7,317Town of Hamlin 2,612 176,584Village of East Rochester 2,385 164,386Town of Mendon 1,885 151,843 Village of Honeoye Falls 856 66,938Town of Clarkson 1,811 139,734Town of Sweden 1,280 117,249Town of Riga 1,189 73,492 Village of Churchville 841 47,026Town of Rush 1,126 70,328Town of LeRoy 803 62,460 Village of LeRoy 1,713 109,271Town of Pembroke 585 53,877 Village of Corfu 285 12,815Town of Wheatland 610 50,355 Village of Scottsville 743 44,847Town of Richmond 925 36,030Town of Kendall 746 34,115Town of West Bloomfield 378 33,588Town of Darien 377 33,494Town of Stafford 522 26,409Town of Pavilion 341 23,288Town of Bergen 250 22,144 Village of Bergen 420 22,098Town of Byron 393 21,179Town of Caledonia 30 2,520 Village of Caledonia 6 794Town of East Bloomfield 20 1,066Town of Lima 12 781Town of Covington 10 635

Total 183,651 13,658,020

ANNUAL REPORT

2016

CustomerBase

M O N R O E C O U N T Y W A T E R A U T H O R I T Y

MCWA Team Wins NY State Title In Annual AWWA ‘Top Ops’ CompetitionThe American Water Works Association hosts annual competitions across the country to test the on-the-job knowledge of water utility employees, and MCWA is always quick to field a team.

The competition, known as Top Ops, is set up in a “college bowl” format, where teams of water operators vie against each other in a fast-paced, question-and-answer tournament. A moderator poses a series of questions covering a wide range of technical subjects, and the first team to answer each correctly receives points for doing so.

Questions may range on topics from basic water technology sciences to plant and laboratory safety to process control situations. This means it requires both a breadth and depth of knowledge to be an effective contestant.

In 2016, the MCWA team took home first place in the New York State Competition. Our team also won in 2011, 2013, 2014, 2015 and 2016.

ANNUAL REPORT

2016

M O N R O E C O U N T Y W A T E R A U T H O R I T Y

M O N R O E C O U N T Y W A T E R A U T H O R I T Y

475 Norris DriveRochester, New York 14610-0999

RETURN SERVICE REQUESTED

MCWA Team Wins NY State Title In Annual AWWA ‘Top Ops’ CompetitionThe American Water Works Association hosts annual competitions across the country to test the on-the-job knowledge of water utility employees, and MCWA is always quick to field a team.

The competition, known as Top Ops, is set up in a “college bowl” format, where teams of water operators vie against each other in a fast-paced, question-and-answer tournament. A moderator poses a series of questions covering a wide range of technical subjects, and the first team to answer each correctly receives points for doing so.

Questions may range on topics from basic water technology sciences to plant and laboratory safety to process control situations. This means it requires both a breadth and depth of knowledge to be an effective contestant.

In 2016, the MCWA team took home first place in the New York State Competition. Our team also won in 2011, 2013, 2014, 2015 and 2016.

ANNUAL REPORT

2016

M O N R O E C O U N T Y W A T E R A U T H O R I T Y

M O N R O E C O U N T Y W A T E R A U T H O R I T Y

475 Norris DriveRochester, New York 14610-0999

RETURN SERVICE REQUESTED