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Home My WebLink About10 Stratigic Plan 2004 Agenda Item # �® UA a VVV O To: Board of Directors From: Peter Holzmeister Date: October 31, 2003 Subject: Strategic Plan for 2004 Why this matter is before the Board: Each year the Board adopts a strategic plan based on the notes from the strategic plan meeting facilitated by Bob Rauch History: On September 10, 2003 the Board held a special meeting to discuss strategic issues facing the District. Bob and Martin Rauch facilitated the meeting. There was a lively discussion in which Directors and members of the management staff participated. Bob and Martin kept notes of the discussion on flip charts New information: Barbara Cahill typed the meeting notes into the usual format of our annual strategic plan, a copy of which is attached. Recommendation: I recommend that the board adopt the attached Strategic Plan. TRUCKEE DONNE . c Utility. D istric Memorandum To: Board of Directors From: Peter Holzmeister Date: September 10, 2003 A. STRATEGIC PLANNING- Summary of discussion Water Issue 1: Long term lifecycle replacement of aging infrastructure. Aging. Excessive leaks (120 per year). Costly and time consuming effort to keep system running. This is taking resources from needed preventative maintenance. Issue 2: Long-term water supply r need better understanding of basin hydrology and yield ➢ Arsenic rule could impact water supply Coordination with Placer County Water Agency r Should consider role and need for surface water-adequacy of long term supply Issue 3: Management Information Systems (MIS) Spend too much time on administration Record keeping Support Services Issue 4: Corporation Yard ➢ Out of space Issue 3: MIS Need to Bar Code and track inventory ➢ Not linked to GIS or accounting ➢ Going backward y This is a cost and efficiency issue. Less errors Electric Issue 3: MIS r Have portable GIS. How to do work orders. Need to take advantage of it for efficiency. ➢ Design Integration Outage management Page 1 Broadband Issue 3: MIS ➢ Need to integrate GIS with broadband ➢ Question: outsource or In-house management of network itself Admin Services Issue 5: How the District interfaces with customers--based on 20 year old practices ➢ Service applications ➢ Deposits ➢ Payment options Responses- outage respond time Issue 3: MIS Work order accounting; closing process- 20 year old and overloaded ➢ Must rethink process or add people y Newer information systems such as GIS not integrated with work order This is not a technology problem- first rather a management process. Need to tie systems in separate departments together. Departments- starting to bump heads. Can't share information. General Manager Issue 6: Finance Master Plan v Now that have this tool, staff must use it for projections, cash management, cash flow, etc- Taught us we have challenges for water capital, reserves ➢ How much Issue 7: Internal Management Processes — 1. We have grown in terms of customers. 2. Organization needs to change-realize how organization works and change ourselves. 3. Also adding new services, but using same managerial processes as 20 years ago. Need to change management to match new reality. Issue 8: Water Meters v People calling saying I want a meter. Previously part-time. Now permanent. Why do I pay same as neighbor with huge lot and use. Need to evaluate issue- are there politically acceptable ways to implement? B. KEY ISSUES: Importance 1. Corporation Yard AA 2. Water System Replacement A 2A. Long term water Supply 3. Management Information Systems- AA 4. Finance Master Plan- Take tool and test ideas and make decisions AA 5. Organization and management A 6. District survival A 7. Customer relations interfaces - 8. Water Meters C Page 2 C. ACTION PLAN Issue 1: Corporation Yard No place to store equipment and material v Broadband will cause more problems v Location: 130 acres of land; keep 30 acres (10 for corporation yard) Question: How much space do we need with broadband? Have calculated basic need for space for both electric and water?- pole storage How much under roof? How much parking, turn around, storage? Space, layout plan, costs, finance Sell remaining property Action 1.1: Study space needs and vehicle turnaround space etc. Pole storage Get a consultant to do plan. Make sure keep enough land for future needs (hard to buy in future). Identify costs. Financing. CEQA Who: Kathy Neus retains consultant to complete a study of property needs and location; and coordinates with staff When: Needs list by October 2003 Basic Plan (Site plan and specs) and cost by February 2004 Funding CEQA Construction Issue 2: Water System Replacement ➢ Aging infrastructure. Premature failure Action 2.1: Real issue is put together a systematic replacement plan with current priorities and long-term lifecycie replacement. Who: Ed Taylor When: January 2004 Issue 3: Management Information System Need help analyzing the problem and suggesting solution Need to make information available ➢ Have to interface with the utility software- NISC y GIS is infrastructure data (Ian is trying to interface with NISC) y Work flow process what does final process need to be. Action 3.1: Find a consultant (similar to finance consultant) to advise on how to proceed Who: Peter Holzmeister When: Consultant recommendation- March 2004 Page 3 ... Issue 4: Finance Master Plan `r Current expenditures upwards of$30 million next fiscal year. > Consider need at this stage for CFO = Have a financial master planning TOOL but not yet a plan. w In place all operating costs and future costs. Also growth projections Have not established levels of reserves. a Board issue (consultant suggested 10-15% operating reserves) ➢ Board should wrestle with issue of how much of rates should support debt? Board should wrestle with rates. Previous goal was to keep as low as possible. May need higher rates to meet future needs. We should compare ourselves with other water agencies. Need to deal with policy questions and cash reserves (which impacts rates). Action 4.1: Finance workshop v Develop policy on reserves, debt, rates and fees Add annual investment for replacing facilities Who: Peter Holzmeister When: November 2003 (during financial workshop for Budget calendar) Issue 5: Organization and Management Staff already at max. Difficulty getting beyond fires. But we have trouble getting to the big picture. Several key managers not too many years form retirement. What about succession plan? ➢ We grew 20% recently with acquisitions, but only 10% in people ➢ Growth will continue and compound the challenge. Assistant General Manager has multiple responsibilities. Maybe only 1/3 devoted to AGM role. Is this adequate? Human Resources-an organizational challenge too- consider HR manager? y Growth Perspective: 80% increase in customers; 40% in staff If you don't address these issues now, will have serious problems in the future. We should not band aid this. Should do right. ➢ Summary of new needs: Human Resources Assistant General Manager Finance ➢ Need more focus, direction, accountability Action 5.1: President appoint a ad hoc committee to develop a new organizational plan to bring to Board Who: Board president and committee (Ron Hemig, Jim Maass and Peter Holzmeister) When: Before end of year Issue 6: Continuance of quality and economy of service ➢ LAFCo built in bias against District government-establish relationship ➢ Town of Truckee has wanted to consolidate with the TDPUD Five-year service reviews-are services provided by the right supplier ➢ Review of sphere of influence of District v On other hand are opportunities for cooperative ventures that could save money, improve service, etc. Page 4 Action 6.1: Follow LAFCo Who: Peter Holzmeister When: Ongoing Issue 7: interface with customers Have not analyzed how we interface/communicate with customers from start ➢ Old application ➢ Reconsider deposit policy Consider new ways for customers to pay: ATM, credit card, etc ➢ Is our answering service adequate? What are options? Should we keep local? Action: 7.1: Reconsider Customer Interfaces Consider other utilities or services that do this Who: Mary Chapman (service applications) When: December Action 7.2: Answering service- seek local resources where possible Who: Steve Hoilabaugh When: June 2004 Action 7.3: Develop an outreach plan- Include web, print, email tree, TV, ads, etc. Target by area (Budget) Question: Is our communication and outreach adequate" ➢ We were kicked off TV ➢ Still do newspaper ads ➢ Are responsive to press ➢ Quarterly newsletter is not quarterly ➢ Do undertake community events Do we need to provide more resources? Who: Scott Terrell When: October 2003 Page 5