HomeMy WebLinkAbout13 District Organization Agenda item # 1.3
Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: September 10, 2004
Subject: District organization
WHY THIS MATTER IS BEFORE THE BOARD: This matter was discussed at a
recent workshop. The board favored holding a second workshop with Glenn
Reiter to delve deeper into organizational issues.
HISTORY: Attached are the two reports prepared by Glenn.
NEW INFORMATION: There is no new information to share at this time.
RECOMMENDATION: I recommend that we have a thorough discussion of
organizational issues. At the conclusion, we should hopefully reach consensus
on identifying our next step.
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TRUCKEE DONNER
PUBLIC UTILITY DISTRICT
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Phase I Report
July 2004
PURPOSE OF REPORT
PURPOSE OF REPORT
BACKGROUND
The District has recently added two water companies to its existing service area and is in the
process of developing a Broadband service. The District is also experiencing growth as people
seek out the beauty and recreational opportunities in the area. What was once a small town has
now become a popular recreational area. Based on the General Plan it is estimated that the
District is approximately 30-40% developed and there will be more growth. As in any growing
area, the demand for public services grows, the public infrastructure necessary to serve the area
is no longer sufficient to this growth. Service reliability is taken for granted, outages, even for
short periods are not generally accepted. In addition, the development of the internet has
expanded the home/office communications needs as well as recreational entertainment, thus,
placing a greater demand on the communications services as well.
It is estimated that 50% of the homes are occupied full time. This results in larger peak demands
rduring times of higher occupancy.
The District's management staff is nearing retirement age and it is necessary to plan now for a
smooth transition as the key staff members retire.
PURPOSE
In response to the foregoing, the District wants to improve internal communications,
management information and develop an organization and management team that will meet these
new demands in an efficient and cost effective manner. The purpose of the Phase I Report is to
address those items.
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EXECUTIVE SUMMARY
The District's concern about growth and the development of a new business are timely and
reflect a pro-active approach to managing the District. The following is a brief summary of the
issues addressed and the findings thus far. This first phase was to look at the areas of concern
and determine the magnitude of the problem and any other concerns that should be addressed.
DiSTRlCT ORGANIZATION
Currently 5 positions reporting to the General Manager. It is recommended that consideration be
given to reorganizing as follows:
1. Finance, Administration, General Services
2. Operations, Engineering-Technical Services
3. Broadband
The development of a General Services that provides common services to all departments will
eliminate duplication of effort and equipment, i.e. snow removal, equipment purchasing, and
maintenance.
ACCOUNTING
The development of a job costing system to augment what the District currently has can address
such issues as:
' 1. Timely budget and cost reporting
2. The closing of work orders
3. Status of capital spending
4. Identification of developer initiated cost vs. District cost
5. The number of funds
a. General Fund
b. Enterprise Funds
i. Electric
ii. Water
' iii. Broadband
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eJOB COSTING
Job/Activity based cost accounting takes the traditional departmental line item budget one step
higher. It ties line items to activities. This provides management with the ability to evaluate the
1 cost effectiveness of the activities performed by the various departments. This information will
help the District more accurately estimate developer initiated projects and collect ALL the costs
1 associated with that activity.
PURCHASING AND WAREHOUSE
The use of bar coding can assist in capturing the data necessary for inventory control, cost
allocation and re-ordering. A closed warehouse is the most effective way of controlling
inventory and providing accurate information for inventory control and job costing. However,
the District does not normally run a 24/7 operation and if it is necessary to make repairs off hours
the crews will need access to parts etc. Thus, it may be necessary to compromise warehouse
operations until the District runs a 24/7 operation.
This activity lends itself to a general services function, and with the help of the operating
departments a system can be developed that meets the needs of the operating departments and at
the same time provides adequate information for inventory accountability and job costing.
GIS
Including financial information could assist in the collection and tracking of reimbursement
contracts. As the District grows, the ability to tie cost information to the GIS may prove
' invaluable. This information combined with a job costing system provides management with the
tools necessary to make sound financial decisions and develop appropriate and equitable rates
' and charges.
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PLANNING AND SCHEDULING
Currently the District does not have sufficient staff to have a preventive maintenance program.
The use of a planning and scheduling system will enhance system reliability and eventually
reduce cost. The water system lacks redundancy and thus is vulnerable to system outages. A
preventive maintenance program can partially make up for lack of redundancy. In addition, it
will reduce costs by reducing unforeseen system break downs and system outages.
OPERATIONS VERSUS CAPITAL CONSTRUCTION
The implementation of a Planning and Scheduling system with Job Costing will provide the
District with necessary tools to properly control and account for these two major activities.
-MANAGEMENT INFORMATION SYSTEMS (MIS)DEPARTMENT
' A MIS department would be a valuable service. However, the District's customer base is
relatively small at this time. It may not be cost effective to establish a separate department for
this service. A partial solution could be the enlargement of the GIS service if that can be
practically worked out. Obtaining the necessary skilled personnel could be a challenge.
INTFR-DEPARTMENTAL COMMUNICATIONS
The District currently accumulates large amounts of useful data. Getting the data to the right
' people in the right format on a timely basis is the challenge. A first step in addressing this issue
is to request from each department specifically what information they need and in what format.
Further, what reporting interval is expected? This initial request would provide guidance to the
software vendor that is currently updating the District's software. Follow-up effort will be
required to get this working to everyone's satisfaction. It will require change and education to be
successful. Sharing information will result in some extra effort and change in the way people
' work. The advantage/reward for this change has to be something everyone appreciates.
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ALLOCATION OF TASKS
' The development of an organization relations guide is an excellent tool for insuring the right
department/personnel are doing the right tasks and coordinating with those who need to be
involved. This is discussed in more detail later in this report.
WAREHOUSE OPERATIONS
Maintaining the right parts in the right quantity can be addressed by having a closed warehouse
where a person in charge of parts issues the parts. This person would keep track of what parts
are taken, by whom and for what job. This information allows purchasing to restock at the most
opportune time. Part control reduces inventory and storage costs and facilitates proper cost
' allocation. However, for an operation the size of TDPUD it may not be cost effective.
Fortunately, recent technology may allow the District to achieve the same results as a closed
warehouse through the use of bar coding similar to Home Depot, Albertsons etc. This will
require the cooperation and training of staff that use the facility. However, the rewards may be
' appreciable.
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SERVICE AREA
SERVICE AREA OBSERVATIONS
The District's staff is well acquainted with the service area however; it may be worthwhile to
contrast this service area with those not subject to extreme weather conditions and environmental
regulations.
WEATHER
The area can expect snow 7 months out of the year and depths of 14 feet or more. The frost line
penetrates down 4 feet. Wind speeds of close to 55 mph can bring down limbs, trees, and even
facilities under the right icing conditions. Repair of broken water lines, or downed power lines
in these conditions is trying and very costly. A good portion of the labor effort is directed to
isnow removal.
EmiRolx'MENTAL REGULATIONS
' Compliance with environmental regulations is time consuming and costly. The restrictions on
digging and construction, forces the District to complete a lot of work in very little time. This is
going to be reflected in higher costs.
WATER SYSTEM
The water system has 36 tanks, 29 pump stations, i 1 wells, and 44 pressure zones with numerous
pressure regulating valves. The system has little or no redundancy, such as a looping grid or
secondary water sources. There is no backup power and during the summer months there is
sufficient storage for about an hour of peak demand in the event of a break down or power
failure. The system can handle a fire flow of 1,500 gpm. A 1,500 gpm flow for 2 hours will
require 180,000 gals of water. Fire pumps can supplement storage; however, if there is a power
outage, there is not sufficient gravity feed to provide an adequate margin of safety. There is no
' ability to cross connect to other zones nor is there any adjacent agency to provide mutual aid.
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' The system is experiencing about 180 leaks per year. Of the 10.000 + accounts only the
commercial accounts are metered (approximately 600) and many of these are not working
' properly. The water utility staff of 12 does not have enough time to operate the system, repair
leaks, and perform preventive maintenance. Valves are not exercised;pumps are not checked for
efficiency nor routinely overhauled. The staff has performed maintenance on the wells.
However, the tanks are not on a routine cleaning and painting schedule. Fortunately, there has
been virtually no vandalism at tank and pump station sites. These sites are not protected and are
subject to easy entry and vandalism. In addition, the tank cage ladders are not secure. As the
area grows, it is just a matter of time until problems occur.
F_XAMYLE OF WORK EFFORT
One way to contrast labor hours required in the District versus most other water agencies in
California is to look at the effort required to change a meter. In most or California, meters are
set in a relatively shallow meter box visible from the curb. A meter change out will take
approximately 20 minutes and done by 1 utility person with a pick up. Meters in Truckee are 4
feet below the surface packed with insulation. In many cases, a backhoe is required to dig down
and remove the meter vault to have the meter replaced. This can take up to 4 to 6 hours. If this
' has to be done in the snow, more equipment may be required and the time is sure to be doubled.
This is obviously a good argument for not having meters. On the other hand, this is not
conducive to water conservation or equitable cost allocation. As in any business, it is necessary
' to track what is produced and what is sold. Running a water system without meters is like
running Wal-Mart without computerized cash registers.
' USA SERVICE
' With the growth in the area, there are many calls for utility locations. The GIS can provide
excellent locations for its facilities but the water system portion is not complete. The effort to
' locate water facilities is time consuming and takes labor hours from operations and maintenance.
Once the GIS has the necessary data the effort to locate water facilities should reduce.
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ELECTRIC SYSTEM
The electric utility is the major business and one most subject to weather. High winds and ice
bring down power lines. There are over 6,000 poles to account for and maintain. The GIS has in
' its database the location and condition of theses, which greatly facilitates system replacement
and budgeting. Since most of these structures are above ground, locating it is not as big a
problem as water. However, it is more subject to weather as a result.
The electric system already has much of its needed resources in place and thus its capital needs
are not as extensive as the water system.
The timely closing of work orders has been a subject of discussion as well as accounting for
small items used in system maintenance and repair. It will be necessary to come to agreement as
to what items should be expensed versus those capitalized. The use of job costing software can
assist in work order management and cost accounting. The most difficult job is capturing the
data in the field. This will require training and cooperation by everyone in order to produce
timely and relevant management information.
DISTRICT STAFF
The most important asset of any organization is its staff. The District has a well trained and
experienced staff. However, some of the District's key management staff is approaching
retirement age. The District has recognized this and is acting in sufficient time to insure a
smooth transition to the next team.
The task at hand is for the existing experienced staff to develop an organization plan that will
provide for this smooth transition. Since the District is adding another service it is a good time
to re-examine how it is organized and the skills that will be required for the added responsibility
of providing Broadband service.
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DISTRICT ORGANIZATION
Currently the General Manager has 5 staff members reporting directly to him. The District is
going through major changes in a relatively short period. The acquisition of two water
' companies, starting broadband services, exceptional growth, and the preparation for a smooth
transition will place tremendous demands on the management team and particularly the GM.
The District does not have unlimited resources, thus, the importance of streamlining the current
organization.
ACCOUNTING AND BILLING
' The current use of one bank account to pay all bills is sound practice. The use of an enterprise
fund for each business is likewise standard practice. The current practice of allocating cost when
the check is prepared can be enhanced with the use of job costing. The use of job costing
' provides management the ability to make sound financial decisions in a timely manner.
However, the allocation of cost is only part of job costing.
Tracking the four major cost items by activity is the key to job costing.
' For example, to determine the cost of fixing a leak requires the following information:
1. Labor hours by skill and trade
' 2. Equipment
3. Material
' 4. Outside services
This is easier said than done. Gathering that data requires the cooperation of all involved. This
' can be difficult for field crews who are concerned with getting the work done and not necessarily
filling out forms to record their use of resources.
SUGGESTED ORGANIZATION
The District's major activities-- electric, water, and now broadband have many similar needs that
may best be provided by a "general services ." All of the departments need the following:
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' I. Human Resources Services
2. Insurance
t3. Risk Management
4. Safety Programs
5. Public Relations
An organizational structure that may streamline the District would consist of three major
departments and the Assistant General Manager reporting to the GM:
I Finance & Administration
a. Accounting
b. General Services
' c. IT
2 Operations
' a. System Operations
b. System Development and Engineering
' c. Technical Services
d. Water Engineering
e. Electric Engineering
' f. Facilities Master Plan
g. USA Location Service
3 Broadband
FINANCE AND ADMINISTRATION
This department would be responsible for the following:
' I Budgeting
' 2 Financial Planning
3 Rate Analysis
4 Job Costing
' 5 Auditing and Accounting
6 Management Information
7 General Service
8 GIS
9 IT
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OPERATIONS
This department would be responsible for the following:
1 Water
a. Operations
b. Preventive Maintenance
' c. Repair
2 Electric
' a. Operations
b. Preventive Maintenance
' e. Repair
' 3 Broadband
a. Operations
1 b. Preventive Maintenance
c. Repair
GENERAL SERVICES
This section would be the primary in-house service organization. It would own, maintain, and
repair all rolling stock. The equipment would be `rented"to each operating department at a rate
that pays for operations as well as replacement.
Since all departments need snow removal, it may be appropriate for this department to be
responsible for this activity.
As the number of customers grow it may be necessary to have personnel on duty 24/7. An initial
' staffing for 24/7 would be a person for dispatching, customer trouble desk, and warehouse
control. The on duty person would determine if the customer call requires immediate action and
if so call out and dispatch the appropriate crew. If parts were required this same person would
open the warehouse and issue the parts.
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Other services that could be provided by this department are as follows:
1 Human Resources Services
2 Insurance
3 Supplies
4 Equipment
5 Dispatching
6 Purchasing
7 Warehousing
8 Communications Equipment
This section would also be responsible for the provision of these services either by District
employees or by contract, which ever is most cost EFFECTIVE.
The ability to procure services cost effectively will be based on the District's ability to have
management information that accurately records what it cost to perform specific services. The
development of a job costing system will be a major contributor to the success of this effort.
INFORMATION-COMMUNICATIONS
' During the course of this study, it was found that the major departments feel that better
' communications and management information would be a great help. As business increases, it is
only natural that the flow of information needs to increase but it should be relevant information.
Accumulating more data in itself is not necessarily the answer. Assembling concise and relevant
information is the key to any organization. Every business has key indicators that indicate how
the business is performing. Early warning indicators help avoid surprises and reduce wasted
resources playing catch up.
For example, tracking individual cost items may provide a lot of detailed information about what
is purchased but it does not reveal how it was used. Relevant data will assist in making decisions
regarding the use of contract services versus in house effort.
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Knowing the cost of ownership provides a sound basis for purchasing and replacing equipment.
Matching labor hours to activities will assist in determining the number of personnel to properly
operate and maintain District facilities.
BUSINESS PLAN
The addition of broadband services will require an analysis of the District's resources and how
they can best be organized for each of the operating departments. The development of a business
plan that identifies what the District has and what it will need for the next 5 to 10 years will be
an important element in the success of the new business venture.
' SUMMARY
The result of the Phase I Reconnaissance Study indicates that management's concerns were
timely and correctly perceived.
There are two major categories that require attention: 1) District organization. The District is
growing rather rapidly and at the same time developing a new service for the community.
Additional resources will be needed, but before they are added it is necessary to inventory what
the District has and how it best be organized. 2) Management Information and
Communication. This area is of vital importance in order to take full advantage of the resources
it has available now and in the future. Knowledge of the condition of existing District facilities
and equipment as well as future needs is necessary for the proper organization and staffing of the
District. During the staff interviews it was evident that there was an appreciation of timely
information and the sharing of that information. This was evidenced by the discussions on the
closing of work orders as well as the accounting for developer deposits.
ORGANIZATION RELATIONS GUIDE
The development of an organization relations guide can assist in developing better
communications throughout the organization. As the operation becomes bigger and more
' complicated it is only natural that the relationships between groups will likewise change. One
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way to address this is develop an organization relations guide. In essence, this guide or matrix
lists the major activities performed by each operating unit. Each activity is then examined to
determine who else is involved and how they are involved.
The table below is an example of an activity and who may be involved.
Board Chief Asst Water Electric Broadband
of General Finance General Utility Utility Utility
Activity Directors Manager Officer Manager Manager Manager Manager
Budget Preparation N I R C C C C
Budget Adoption A A C I I I I
O en work order N N I I R R R
Responsible Party R
Must Approve A
Must Inform I
Requires Coordination with others C
No action required N
The development of the above matrix by department can assist in developing clear lines of
communications and authority. It provides an opportunity for all departments to look at their
responsibilities and how they relate or impact other departments. In many cases this effort brings
out duplication of effort or overlapping authorities. In some instances it points out that no one is
' really responsible.
Fortunately, the District has identified these needs in sufficient time to address them and will
prepare a plan to accommodate the growth and the new service as described above.
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' RECOMMENDATION f
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It is recommended that the District proceed to Phase II of the study. This effort will examine in
more detail the previously discussed areas of concern. The development of a business plan will r
provide the Distract with an immediate and long-range plan to address the challenges the District
is cu rently facing. Appendix A is a listing of tasks and the estimated time for each task.
Move to Phase II by developing a business plan that addresses the following issues:
1. District Organization
a. Four Major Departments
b. Management Succession and Training
2. Management Information and Communications
a. Job Costing
' b. planning and Scheduling
e. Budgeting
' d. Financial Management and Reporting
e. Accounting by Electric Construction Unit
f. Integration of Financial Information with GIS
i. Reimburse Contracts etc
3. Immediate and Long Term Finance Plan
a. Operational Cash Flow
b. Capital Requirements
' i. Water
ii. Electric
' iii. Broadband
c. Replacement Requirements
i. Maintenance Cost vs. Capital Investment
4. Operating Plan
a. Planning and Scheduling
' b. Dispatching
C. System Reliability
' d. Energy Management
e. System Redundancy
' f. Staffing Needs
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TRUCKEE DONNE
PUBLIC UTILITY DISTRICT
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Phase II Report
July 2004
SUBMITTAL LETTER
Reiter - Lowry - Consultants
July 15, 2004
Mr. Peter Holzmeister, General Manager
Truckee Donner Public Utility District
11570 Donner Pass Road
P. O. Box 309
Truckee, CA 96160
eRE: Scope of Work for Phase II
Dear Peter:
Attached is the draft scope of work for Phase II. I believe it covers all the concerns you reviewed
with me. Please review and comment.
' It is difficult to estimate accurately the time required for each task as the degree of involvement of
' a committee and or board could vary greatly.
' It is very important to understand the District's vision. To that end, I would suggest that, a
Board-Staff workshop be scheduled to provide policy guidance in the preparation of the plan.
This is a major turning point for the District. The decisions made today will affect the District
and community for many years to come. It is important that everyone envision the same goal.
I look forward to assisting you in this effort.
Respectfully,
Glenn
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2535 Keuner Blvd,#2A5,San Diego,CA 92127
INTRODUCTION
Introduction
The results of the Phase I study identified specific areas requiring change or enhancement. The
' following is a detailed list of tasks designed to address those areas in Phase I. The proposed
work plan has been divided into three major categories.
A. Management Information and Communications
B. Financial Management and Planning
C. Operations and Organization
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MANAGEMENT INFORMATION
AND COMMUNICATION
A. AL4,NAGEAIENTINFORuATtoNANDCOA7MITA7CATION
A-I. IDENTIFY INFORMATION REQUIRED BY THE BOARD OF DIRECTORS AND MANAGEMENT
The successful management of any business is the ability to control the operation such that the
goods or services provided are done in the most cost effective manner as possible while
providing customer satisfaction. This task involves working with the Board of Directors and
staff in identifying what information will provide them with the knowledge that the District is
performing in the manner expected by the Board and Public.
' Water, Sewer and Power utilities are usually in a non-competitive market. While customers can
not take their business elsewhere they can change who is providing the service. On the other
hand, Broadband service does have competition and thus customer satisfaction will be a driving
force. The ability to monitor customer service will be very important.
' A-2. KEY BUSINESS INDICATORS
Levels of service will be identified and key indicators established to measure the success in
providing the services established by the Board of Directors and management.
' Management and the operating departments will identify other key operating indicators to assist
staff tracking on the internal services.
' A-3. IDENTIFY WHO NEEDS WHAT INFORMATION BY DEPARTMENT
' This task will identify who needs what information to assist them in the performance of their
responsibilities. This will include the identification of the type of information, level of detail,
' format, and frequency required. It will also be important to identify who is responsible for
producing the information along with any departments that contribute to the development of that
' information.
' A-4. COORDINATE WITH SOFTWARE VENDOR TO PRODUCE NEEDED SOFTWARE
Since the District is currently upgrading its software, it is an excellent opportunity to work with
' the vendor to insure that the new software can generate the required reports. The information
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' from the previous tasks will be shared with the vendor to determine what will be required to
produce the desired reports.
A-5. INTEGRATE CIS INTO THE MANAGEMENT INFORMATION SYSTEM
The District's current GIS will be reviewed to determine what information can be included in the
GIS database- An example would be the recording of reimbursement contracts on pipe line
extensions.
A-6. COMMITTEE MEETINGS AND PRESENTATIONS
' It is planned that as the progress reports staff and committee/Board meetings, be held to report
on the progress to-date and to obtain input during the entire process.
A-7. DEVELOP CUSTOMER SERVICE/CALL CENTER
' The District currently has customer service people at the front counter as well as personnel who
answer customer phone calls. After hours, an answering service takes calls unless a major
outage results in many calls. Then standby personnel will come to the office and take the calls.
With the increased growth in customers as well as the addition of Broadband service, calls will
obviously increase. In order to provide prompt and accurate response in a cost effective manner
it may be necessary to develop a customer/call center on a 24-7 basis. An evaluation of the
' number and type of calls now and in the future will assist in determining what would deliver the
most satisfaction. It is assumed that this service will be included in the Board of Directors and
Management establishment of service levels. For example, how quickly will a request by a
customer for a service check or installation be handled, 24-7 or during business hours?
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FINANCIAL MANAGEMENT
AND PLANNING
B FINANCIAL MANAGEMENT AND PLAAALNG
B-1. COORDINATION WITH SOFTWARE VENDOR
The development of a financial management system will involve the software vendor. As
reports are identified it may be necessary to customize the current software. Alternatively, it
may be possible to download information from the main computer to individual personal
computers to produce the required report. One solution may not fit all.
' B-2. JOB COSTING/ACTIVITY PROGRAM/WORK ORDER CONTROL/DEVELOPER DEPOSITS
' The use of the job costing capabilities of the software will require the cooperation of all the
departments. It will require accurate information from the field as well as the office. The best
software can not produce accurate reports without accurate and timely data. For this effort to be
successful, it will be necessary for everyone to buy into the program. The introduction of Job
Costing requires a commitment to the program. There has to be an understanding of the rewards
of using such a system. There is a difference between detail and useful detail. Job Costing is a
' means whereby the cost of performing an activity is identified. A department may have very
accurate accounting of labor hours for the department but that in it self will not identify the cost
' of an activity. For example; the labor hours required reconditioning a pump or motor clearly
identifies bow the departmental labor resources are being used. This information can assist
management in determining if the pump or motor should be replaced rather than repaired. Many
times replacement is far more cost effective than constant repair.
Another example of an important piece of management information is the labor hours spent on
water line breaks, and where these breaks occur. This information will allow the engineers to
determine the most opportune time and order of pipeline replacement. Integration of cost data
with the GIS system will enhance the District's ability to plan efficiently system replacement in a
cost effective manner.
B-3. COORDINATE WORK ORDER SYSTEM WITH JOB COSTING
' The District issues work orders for developer related work. The labor, material, equipment, and
outside services expended on the work can be captured and included in the job costing system.
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This facilitates the proper allocation of costs between District operations and developer costs. It
will permit timely accounting and reporting on the expenditure of developer deposits. If it is
found the developer deposit is almost depleted it affords the District the opportunity to request
' additional funds and avoid drawing from District reserves to cover developer costs.
B-4. REIMBURSEMENT CONTRACT ADMINISTRATION
' Accurately tracking reimbursement contracts is time consuming and sometimes frustrating.
' Contracts can run over a long period of time and involve the expenditure of District funds as well
as the developers. The integration with the job costing system will assist in making this effort
' more accurate and timely.
B-5. SHORT AND LONG TERM FINANCIAL PLAN MODEL
A comprehensive financial model will be developed that will allow the District to do "what if
' analysis" based on various assumptions. This model will assist in developing early warning
indicators for the Board and management. In addition, it will assist in predicting when rate
increases would be necessary.
B-6. BUDGET REPORTING AND REPORT FORMATS BY DEPARTMENT
Each department will be interviewed to determine what information they need and when it is
needed. With the assistance of the finance department and software vendors, reports will be
developed to meet the departmental needs.
B-7. SHORT AND LONG TERM CAPITAL FUNDING
' Based on the District's CIP the Financial Model a funding plan will be developed to demonstrate
alternative funding programs. It may be desirable to fund capital on a pay-as-you-go basis or the
' use of debt financing. The advantages and disadvantages will be demonstrated.
' B-H. ESTABLISHMENT OF FUNDS
Based on the final organizational plan and departmental needs for information the number of
' funds will be recommended to meet the required need for detail.
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B-9. POTENTIAL FINANCIAL INFORMATION INTEGRATION WITH GIS
' Once the departmental needs for information are agreed to, it will then be possible to assess the
ability and cost effectiveness of integrating financial information into the GIS system.
' B-10. TRACKING/BILLING/COLLECTION OF DEVELOPER RELATED EXPENSES
' Using job costing and possibly the GIS system for the tracking of developer related expenses
will preclude the use of the general fund to carry developer costs until the District can re
' reimbursed. The thrust of this effort is to put a system in place such that the District does not
advance funds for developer related projects.
B-11. CIP COST ESTIMATING AND COST CONTROL
' The use of job costing for the CIP will assist the District in cost estimating and reduce cost over
runs. The historical data captured in the job costing system will increase the District's ability to
' estimate project costs and further provide early warnings that the costs are escalating faster than
projected. An accurate data base of historical CIP costs is an invaluable tool in project cost
estimating. The CIP will be reviewed to determine its current projected cost and
recommendations .will be made if appropriate, regarding potential update of costs. A cost
tracking procedure will be recommended for integration with the job costing system.
Truckee Donner PUD—Phase II Report
Page 7 Reiterlpwry-Consultants
......................... . .... . .
OPERATIONS AND
ORGANIZATION
C. 0PERAT10,VSA NV 0RGAA7ZATION
C-I IDENTIFICATION OF NUMBER OF DEPARTMENTS AND REPORTING STRUCTURE
' The recent expansion of the water system coupled with the potential of providing Broadband
service affords the opportunity to look at the way the District is organized and how it may be
better organized to meet the expanded needs of the District. This task will involve an
examination of the major activities and tasks associated with each. There may be opportunities
' to reduce redundancy by having one department or section providing common services for the
other departments. An example would be the use of one department or section being responsible
for warehouse, purchasing,public relations, purchasing, snow removal etc.
' C-2. MANAGEMENT SUCCESSION
The District's key management staff is approaching retirement and it is timely to begin planning
for this eventuality. An organized plan of transition and training will be developed such that
when the time comes for a change the staff will be trained and ready to assume their respective
' roles. It is assumed that the replacement of key staff will be accomplished by internal
promotion. This in turn requires preparation for their replacement as well.
' C-3. MANAGEMENT TRAINING
' This effort will include a review of the skills required now and in the future. Potential
replacements for the key management positions will be reviewed to determine what training or
additional skills will be necessary to prepare them for their new responsibilities. A training
program will be recommended.
' C-4. ORGANIZATION AND RELATIONS GUIDE
' The value of this effort lies in the preparation more than the final product itself. This task
involves the identification of the tasks performed by each department. It identifies who is
' responsible for performing the task and just as important who else is involved and their
relationship to the task. This is an opportunity to insure that there is no overlapping of
responsibility or duplication of effort. It can also identify is something has fallen through the
cracks.
' Truckee Donner PUD—Phase II Report
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C-5. STAFFING PLAN
' Based on information from the foregoing tasks a review of the Districts' staffing plan will be
done. This will include an identification of additional personnel if needed and specific skills. In
some cases, a specific shill may not be justified and it may be cost effective to outsource when
needed.
C-6. FEASIBILITY OF A MANAGEMENT INFORMATION DEPARTMENT OR SECTION
After completion of the foregoing tasks it may be determined that, a separate group may best
meet the information needs of the departments. The cost effectiveness of such a service would
be examined and a recommendation made. It may be possible to approach the development of
the service in phases.
' C-7. POTENTIAL INTEGRATION WITH DISPATCHING AND CALL CENTER
Customer service, inquiries, and dispatching will be reviewed to determine what the best
configuration is to provide outstanding customer service.
' Periodic workshops with the Committee/Board will assist in developing an organization that
' meets their expectations.
Truckee Donner PUD—Phase II Report
Page 9 Reiter.Ipwry-onsultants
Board of Directors
General Assistant General
Manager
Manager Power Supply
I
uty General Deputy General Deputy General
Manager Manager Manager
perations- Finance-Admin Broadband
ngineering
Systems Systems
Operations DEn iineerint& Technical Services
9 9
Information Finance&Accounting General Services
Technology
Truckee Donner
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tag;4"al,y
Note:Positions In Blue Comprise
Strategic Planning Committee __ --__- ..- Y. q �„ „�,r�„
APPENDIX A
Plan Development Appendix A
Phase II Task List
' Task Description Hours
Management Information -Communications
A-1 Identify information required by the Board of Directors and management 8
A-2 Key business indicators 6
A-3 Identify who needs what information by department 12
A-4 I Coordinate with software vendor to produce needed information 24
A-5 Integrate GIS into the management information system 6
' A-6 Committee meetings and presentations 18
A-7 Develop Customer Service/Call Center 12
' Financial Management and Plannin
B-1 Coordination with Software vendor 8
B-2 Job costing/Activity program/Work order control/Developer deposits 12
' B-3 Coordinate work order system with job costing 6
B-4 Reimbursement contract administration 4
B-5 Short and Long Term Financial Plan Model 60
' B-6 Budget reporting and report formats by dept. 8
B-7 Short and Long Term Captial Funding 12
B-8 Establishment of Funds 4
B-9 Potential Financial Information Integration with GIS 6
B-10 Tracking/Billing/Collection of Developer related Expenses 8
B-11 CIP cost estimating and cost control 6
' B-12 Warehouse and inventory control 5
Operations and Organization
' C-1 Identification of Number of departments and reporting structure 8
C-2 Management succession 4
C-3 Management training 4
' C-4 Organization and Relations Guide 24
C-5 Staffing Plan 8
C-6 Feasibility of MIS department 8
C-7 Potential Integration with Dispatching&Call Center 4
Estimated Hours 285
Principal Cost $42,750
Research Assistant $1,500
Out of Pocket Travel $2,620
' Total Estimated Budget $46,870
711512004 3:29 PM
Y.00001 TmckeeWhase ll Tasks.xls