1. 2014 Pasco County Citizens’ Academy Utility Services Branch Session IX Thursday, November 20, 2014 Conducted at the Solid Waste Resource Recovery Facility located at 14230 Hays Road (first entrance). Tour will be of the Waste-to-Energy plant. Pasco County Utilities 6/6/2016 Citizens' Academy 1

2. AGENDA Utility Services Welcomes You Bruce Kennedy, P.E. 1.Overview of Utility Services Branch 2.Tour of the Waste-to-Energy plant 3.Water, Wastewater, and Reuse Systems 4.Integrated Solid Waste Management System 5.Cost of Service: Rates, Fees, and Charges Pasco County Utilities 6/6/2016 Citizens' Academy 2

3. 1.Overview of Utility Services Branch Mr. Bruce Kennedy, P.E. Assistant County Administrator for Utilities Pasco County Utilities 6/6/2016 Citizens' Academy 3

4. MISSION STATEMENT Providing our community, customers, and future generations with high quality, efficient, and innovative water, wastewater, and solid waste services. VISION Be recognized as a leading public utilities organization. Pasco County Utilities 6/6/2016 Citizens' Academy 4

5. VALUES Safety Responsiveness Integrity Respect Communication Accountability Excellence Innovation Pasco County Utilities 6/6/2016 Citizens' Academy 5

6. Significant challenges Utility Services facing to increase quality and lower cost of services to customers Increased customer level of service demands Financial constraints Aging infrastructure Security and emergency response concerns Growth Climate change and reduced environmental footprint pressures Stricter regulatory requirements Retirement of experienced staff and related workforce shortages Pasco County Utilities - Challenges 6/6/2016 Citizens' Academy 6

7. Pasco County Utilities – Strategic Plan 6/6/2016 Citizens' Academy 7

8. Pasco County Utilities- Strategic Alignment 6/6/2016 Citizens' Academy 8

9. Pasco County Utilities - Organization 6/6/2016 Citizens' Academy 9

10. Water / Wastewater / Reclaimed Water Water, potable supply, and fire protection Wastewater collection, treatment and disposal Irrigation services - reclaimed water Solid Waste Management Services Residential Curbside Recycling Collection Private collection Services Transfer station Waste-to-Energy plant Landfill operations Streetlight Services Administration of residential subdivision lighting districts Pasco County Utilities – Core Services 6/6/2016 Citizens' Academy 10

11. Total personnel: 466 budgeted, 436 filled, 30 vacancies Current active customer accounts: -Solid Waste 200,000 residential and 8,000 commercial -Streetlight 78,000 residential only -Water/Sewer 100,000 residential/commercial -Reclaimed 12,000 residential/commercial/agricultural Some customers have multiple services; everybody is a solid waste customer. Current monthly water/sewer billing activity at 100,000 per month or 1.2M bills per year. Pasco County Utilities - Enterprise 6/6/2016 Citizens' Academy 11

12. Operating revenue $149M per year Water/Sewer/Reclaimed - $100M Solid Waste - $45M Streetlights - $4M Operating Expenses $117M per year Administration, Engineering, and Customer Service - $12M Water/Sewer/Reclaimed - $63M Solid Waste - $38M Streetlights - $4M Pasco County Utilities - Enterprise 6/6/2016 Citizens' Academy 12

13. $500M in total long-term debt Water/Sewer - $446,503M; Solid Waste - $69M Capital Project Budget $82M for FY2013-14 Five Year CIP of $179M Pasco County Utilities - Enterprise 6/6/2016 Citizens' Academy 13

14. 2.Tour of the Waste-to-Energy Plant Mr. Kevin Pliska Plant Manager Pasco County Utilities 6/6/2016 Citizens' Academy 14

15. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 15

16. Background Design, Construction, and Service Agreements signed in 1988 Construction 1988 – 1991 Commercial Operations Begin - May 1991 APC Retrofit 2000 Service Agreement Extension 2007 Service Agreement Extension 2013 Pasco County Utilities– Waste-to-Energy Facility 6/6/2016 Citizens' Academy 16

17. Facility Performance Consistently Exceeds Contractual Performance Guarantees by Wide Margin Environmental Guarantees On-Line Availability Processing Pasco County Utilities–Waste-to-Energy Facility 6/6/2016 Citizens' Academy 17

18. Boiler Availability Has Continued to Increase Pasco County Utilities – Waste-to-Energy Facility 6/6/2016 Citizens' Academy 18

19. Historical Environmental Emissions – Mercury Pasco County Utilities – Waste-to-Energy Facility 6/6/2016 Citizens' Academy 19

20. Historical Environmental Emissions – Lead Pasco County Utilities – Waste-to-Energy Facility 6/6/2016 Citizens' Academy 20

21. Historical Environmental Emissions – Dioxin/Furons Pasco County Utilities – Waste-to-Energy Facility 6/6/2016 Citizens' Academy 21

22. Historical Environmental Emissions – Cadmium Pasco County Utilities – Waste-to-Energy Facility 6/6/2016 Citizens' Academy 22

23. Historical Environmental Emissions - Carbon Monoxide Pasco County Utilities – Waste-to-Energy Facility 6/6/2016 Citizens' Academy 23

24. Service Agreement Extension through 2024 Continue the County’s Best Public Private Partnership Assure Continued High Performance and Asset Protection Avoid Costly and Complicated Procurement Process Only One Other Qualified Firm Covanta is Sole Source Provider of Low NOx Technology Extension Terms and Conditions Benefit and Favor Pasco County Pasco County Utilities – Waste-to-Energy Facility 6/6/2016 Citizens' Academy 24

25. Costs and Benefits of Extension Costs – Addition four Percent Net Energy Share to Covanta ($13.2MM over Remaining Term to December 31, 2024) Benefit - $14.5MM in Asset Preservation and Upgrade Projects Benefit – Additional $3.6MM in County Savings from other T & C Changes All Additional Energy Share Funds must be Spent on Asset Preservation Projects or Funds are rebated to the County Pasco County Utilities – Waste-to-Energy Facility 6/6/2016 Citizens' Academy 25

26. Asset Preservation and Upgrade Projects LN Nox System to Lower Air Emissions and Meet Likely Future APC Control Regulations Ash System Mods to Enhance Ash Recycling Opportunities and Metals Recovery Rates Boiler Economize Replacement (6 of 12 banks) Boiler Superheater Replacement (all 3 units) Air Preheater Replacement (all 3 units) Cooling Tower Fans and Stack Replacement Roof Replacements Roof Fans and Additional Ventilation Elevator Upgrade Distributed Control System Hardware and Software Upgrades High Voltage Equipment, Relay, and Motor Protection Upgrades Replace Closed Cooling Water Heat Exchangers Replace both Refuse Cranes Pasco County Utilities – Waste-to-Energy Facility 6/6/2016 Citizens' Academy 26

27. 3. Water, Wastewater, and Reuse Systems Mr. Michael J. Carballa, P.E., BCEE Utilities Engineering and Contracts Management Director Pasco County Utilities 6/6/2016 Citizens' Academy 27

28. Pasco County Utilities – System Overview 6/6/2016 Citizens' Academy 28 How Much Water? Drinking Water - 23 million gallons per day (MGD) Wastewater - 20 MGD Reclaimed Water 20 MGD Over $600 MM in Supporting Infrastructure Assets for Over 110,000 Service Connections 2,500 miles of sub-surface pipeline 1,500 miles of sanitary sewers 600 sewage pump stations 6,300 fire hydrants 20,000 manholes Six (6) administrative/support facilities Fifteen (15) plant complexes

29. Pasco County Utilities – Water System TBW Tri County System Map 6/6/2016 Citizens' Academy 29

30. Pasco County Utilities – Water System TBW and Pasco Ground Water Wells - Wellfield 6/6/2016 Citizens' Academy 30

31. Pasco County Utilities – Water System 6/6/2016 Citizens' Academy 31

32. Pasco County Utilities – Wastewater System 6/6/2016 Citizens' Academy 32

33. Pasco County Utilities – Wastewater System 6/6/2016 Citizens' Academy 33

34. Pasco County Utilities – Wastewater System 6/6/2016 Citizens' Academy 34 Shady Hills Wastewater Treatment Plant

35. Pasco County Utilities – Master Reuse System 35

36. Pasco County Utilities – Reuse System 6/6/2016 Citizens' Academy 36

37. Pasco County Utilities – Major Capital Projects 6/6/2016 Citizens' Academy 37 Capital Planning – Over $179 MM in Five (5) Year CIP Major Projects Currently Under Construction Deer Park Diversion Project Boyette Reservoir Project Multiple Utility Relocation Projects Major Projects Currently Under Design or Design Development Wesley Center WWTP Expansion Shady Hills WWTP Repairs and Refurbishment Embassy Hills Diversion Project

38. 4.Integrated Solid Waste Management System Mr. John P. Power Solid Waste Director Pasco County Utilities 6/6/2016 Citizens' Academy 38

39. Pasco County Utilities 6/6/2016 Citizens' Academy 39

40. Collection Disposal Recycling Household Hazardous Waste Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 40

41. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 41 COLLECTION Pasco County does not pick up your trash and recycling. Trash and recycling are picked up by a licensed, private hauler who you pay directly for the service. Your HOA or CDD may pay this for you. This is known as “subscription” service. Curbside trash is collected twice a week. The maximum you can be charged for this service is $12.44 per month. If you have trash service, you have recycling service. It does not cost extra. Recycling service must be provided at least twice per month. Your hauler provides the schedule for both trash and recycling. Any Pasco resident can drop off their trash in normal amounts at our Solid Waste facilities without charge.

42. DISPOSAL Your trash is incinerated to produce electricity. We have some landfill operations. For example, construction and demolition debris is buried in our Class III landfill at the West Pasco Resource Recovery facility. Each single-family residential property is assessed $62.00 per year on the non-ad valorem section of the property tax bill. This covers the cost of disposal of normal household waste generated from each household. Multifamily and mobile residences are charged a pro-rated fee. This fee has not changed for nine years. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 42

43. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 43 RECYCLING No more blue bags. Now we have ‘Choose & Use Your Own Container.’ Put a sticker your permanent container. And, put it at the curb on your recycling day. No paper at the curb, but there are over 100 drop-offs County-wide. Look for the Green Fiber FROG container at schools, fire stations, libraries and parks. Plastics coded #1, #2, #3, #4, #5, and #7 Metal food cans aluminum cans clear, green, and brown glass bottles, and jars.

44. HOUSEHOLD HAZARDOUS WASTE (HHW) You don’t think you have hazardous waste in your home? Think again. Cleaning chemicals, pool chemicals, fertilizers, paint products, vehicle fluids, and household batteries are part of HHW. HHW is any substance that poses a substantial hazard to human health or the environment, including water and wildlife. The County has two permanent drop-off locations in Pasco: one on the east side and one on the west side. Electronics, monitors, televisions, computer CPU’s, are all handled as HHW. All these items must be dropped off and cannot be picked up at the curb. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 44

45. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 45 Dade City Closed Landfill

46. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 46 Dade City Closed Landfill

47. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 47 Dade City Closed Landfill

48. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 48 Dade City Closed Landfill

49. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 49 East Pasco Transfer Station

50. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 50 East Pasco Transfer Station

51. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 51 East Pasco Transfer Station

52. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 52 East Pasco Transfer Station

53. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 53 Shady Hills Class I Landfill

54. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 54 Shady Hills Solid Waste Facility

55. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 55 Shady Hills Landfill and Waste-to-Energy Facility

56. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 56 Shady Hills Landfill and Waste-to-Energy Facility

57. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 57 Ridge Road Closed Landfill

58. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 58 Ridge Road Closed Landfill

59. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 59 Ridge Road Closed Landfill

60. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 60 Ridge Road Closed Landfill

61. Pasco County Utilities – Wastewater 6/6/2016 Citizens' Academy 61 Shady Hill Wastewater Treatment Plant

62. 5.Cost of Service: Rates, Fees, and Charges Mr. Robert Sigmond Fiscal and Business Services Director Pasco County Utilities 6/6/2016 Citizens' Academy 62

63. SOLID WASTE PRICE INDEX STATE OF FLORIDA WASTE-TO-ENERGY (WTE) PLANTS Hillsborough County WTE Facility$ 68.16/Ton Lee County Solid Waste R&R Facility$ 34.93/Ton McKay Bay WTE Facility$ 71.00/Ton Pasco County WTE Facility$ 56.70/Ton Bay County WTE Facility$ 47.50/Ton Key West/Southernmost R&R Facility (Monroe County)$169.00/Ton Miami-Dade County R&R Facility$ 85.51/Ton Palm Beach County – North R&R Facility$ 42.00/Ton Pinellas County WTE Facility$ 37.50/Ton WTE North Broward Incinerator/WMI$ 41.48/Ton WTE South Broward Incinerator/WMI$ 41.48/Ton AVERAGE FOR FLORIDA WTE PLANTS$ 63.21/Ton Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 63

64. Pasco County Utilities – Solid Waste 6/6/2016 Citizens' Academy 64 Solid Waste Revenue FY2015 Electrical Sales22,633,590 Assessments18,976,000 Tipping Fees1,470,000 Recycling Sales400,000 Material Recovery WTE540,000 Miscellaneous1,664,275 45,683,865

65. Pasco County Utilities – Solid Waste 6/6/2016Citizens' Academy65 Solid Waste Expenditures FY2015 Personnel Services3,151,019 Contracted Services22,902,858 Material (Power, Rental, Communications)1,369,897 Indirect Costs156,735 Debt Services7,043,500 Miscellaneous1,663,693 36,287,702

66. Pasco County Utilities – Water/Wastewater 6/6/2016 Citizens' Academy 66 Water / Wastewater Revenue FY2015 Water Sales38,500,000 Sewer Sales52,000,000 Reclaimed Sales1,000,000 Fees Charged3,580,785 Miscellaneous746,286 95,827,071

67. Pasco County Utilities – Water/Wastewater 6/6/2016 Citizens' Academy 67 Water / Wastewater Expenditures FY2015 Personnel Services22,021,189 Contracted Services40,511,618 Material (Power, Rental, Communications)6,905,397 Indirect Costs1,680,108 Debt Services15,850,968 Renewal and Replacement4,368,204 Miscellaneous1,289,063 92,626,547

68. Debt Service Water / Wastewater Moody’sFitchStandard and Poor’s Series 2006$ 5,800,000.00Aa2AAAA Series 2009A$ 31,715,000.00Aa2AAAA Series 2009B$115,655,000.00Aa2AAAA Series 2014A$ 52,800,000.00Aa2AAAA Series 2014B$ 47,100,000.00Aa2AAAA PrincipleInterestTotal September 30, 2014$258,870,000.00$237,060,458.00$495,930,458.00 Solid Waste Moody’sStandard and Poor’s Series 2008DA 1 AA Series 2011A 1 AA PrincipleInterestTotal September 30, 2014$ 54,970,000.00$ 13,988,250.00$ 68,958,250.00 TOTAL$313,840,000.00$251,048,708.00$564,888,708.00 Pasco County Utilities – Debt and Bonds 6/6/2016 Citizens' Academy 68

69. Pasco County Utilities 6/6/2016 Citizens' Academy 69

70. Wrap-up – Bruce Kennedy Thanks for attending Handout For more information about Utility Services, visit our website at: www.pascocountyutilities.comwww.pascocountyutilities.com Pasco County Utilities 6/6/2016 Citizens' Academy 70