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HomeMy WebLinkAbout6 Stratigic Plan Workshop Agenda Item # O To: Board of Directors From: Peter Holzmeister Date: September 5, 2003 Subject: Strategic plan workshop Why this matter is before the Board: Each year the Board holds a strategic plan workshop to make sure the board and staff are on a common path. Together, the Board and staff think through important issues and decide how to deal with them. It is time again to conduct that workshop. History: We have held this strategic plan workshop for the past several years. Bob Rauch has facilitated the workshop each year. At the conclusion of the workshop, the Rauch flip charts are organized into a strategic plan document that is formally adopted by the Board. New information: Attached for your review is a report on the strategic issues identified last year. i TDPUD Action Plan for 2003 Issue 1. Broadband Issue 1.1: Board has decided to go into broadband business, unless there is a significant surprise or obstacle. This is a significant financial decision. We are developing a business plan. Action: Phase One Obtain anchor tenants Franchise agreement with the Town of Truckee Pilot project customers Obtain financing Status: Obtain Anchor Tenants: To date the District has received a letter if intent to receive Broadband services from the Tahoe Forest Hospital District, and 637 "Pre- Construction Offer" applications. We are continuing to receive applications at a rate of approximately 50 per week. Franchise Agreement with the Town of Truckee: This was accomplished. In addition, staff is currently negotiating similar franchises with Nevada and Placer Counties. Pilot Project customers: Due to the Board's wish to provide Broadband services to all customers a Pilot Project was not cost effective, thus not completed. Obtaining Financing: This task has not yet been accomplished. During the month of September staff will bring a recommendation to the Board for appointment of an underwriter, with a specific timetable for completion of this task. Phase Two Preparation of bid documents Award of construction contracts LAFCo approval Status: Preparation of Bid Documents: The District has gone to bid for the electronics and system design necessary to provide Broadband services with a closing date of September 19, 2003. The bid documents for the construction of the District's FTTU system, and the fiber optic cable, splice boxes, etc., will be brought before the Board for approval within thirty days. Award of Construction Contracts: Currently staff estimates the closing of Construction bids to take place in early November of this year. We expect project financing to be completed at approximately the same time, so the District should be in a position to award contracts by the end of November 2003. LAFCo Approval: The District has met all but one of Nevada County LAFCo's conditions for certification to provide Broadband services. We still need to assure LAFCo that District Water and Electric ratepayers, revenues and assets will not be at risk. We have been in contact with Nevada County LAFCo and have advised them that we intend to bring this final piece to them at their regular meeting in November 2003. Page 1 Issue 1.2: There are internal organizational issues. We will be adding broadband customers to billings. We need to determine who will perform maintenance, and ongoing marketing. Must address the realities of conducting the business—people, equipment, support systems, etc. Action: Prepare an organizational plan for submission to the Board Status: Staff has begun the process of developing an Organizational Plan for Broadband services that will be brought before the Board for review and possible adoption in October 2003. This plan will include methods and procedures for the installation of services at both residential and commercial accounts, the process in which a Customer Services Representative "signs up" a new customer, and how a CSR handles trouble calls, Broadband billing procedures and much more. We also intend lay out the new Broadband business unit's staffing requirements and initial budget. Issue 2. Water System Issue 2.1: New facilities for growth Pace of growth is strong and accelerating. Staffing increase equals 1 person per year. We do not have in-house money to front the new facility costs. Problem is cash flow. Action: a) Approach lenders willing to front the money on basis of repayment of projects b) Consider asking developers to front the money c) Consider formation of assessment district. d) Consider SRF funding e) Develop other methods of addressing this cash flow problem. Status: The problem for the District's water utility has been cash flow to support capital investment. We accomplished much during the past year to help with this problem. We sold land and set up a revolving fund to finance initial capital costs. We are in the process of forming a Community Facilities District that will provide funding for necessary water facilities. We have modified our electric facilities fee ordinance to require developers to advance funds, and we will soon bring a similar proposal to the Board related to water facilities fees. Issue 2.2: Water System Maintenance & Replacement Portions of the water system are aging. We are fixing the system in an ad-hoc manner. There is no managed systematic maintenance/replacement program that is cost effective. Action: Prepare a replacement plan. Prepare a system maintenance plan. Status: We have not accomplished this item. We have been focusing on preparation of the Finance Master Plan and securing funding for capital investment. We can turn to this matter next. Page 2 Issue 2.3: Regulatory changes Many new regulatory requirements are being imposed. Work is being pushed to the agencies rather than the regulator. Action: Bring added personnel requirement to the Board Status: We have not accomplished this item. We have been focusing on preparation of the Finance Master Plan and securing funding for capital investment. We can turn to this matter next. Issue 3. Corporation Yard Issue: Corporation yard The yard at headquarters is full. There are two other yards at different sites. Have one large property- 130 acres. We need 10 acres for a new corporation yard. We will sell the remainder of the property and use funds to pay for the building of our space needs. Action: Decide on piece we want to keep. Offer rest of property for sale. Status: We have not yet accomplished this item. It remains on our list of items to get to, but other pressing matters overshadowed this issue during the past year. Issue 4. Power Supplies Issue 4.1: Power supply Must renegotiate a reasonable contract - current contract too expensive. We are asking court relief for modification of the contract. May go to mediation. FERC is involved. Status: This item was accomplished. Issue 4.2: Change in facility fee Must increase the facility fee Action: Bring consideration to Board Status: This item was accomplished i Page 3 Issue 5. Organization/Staffinq Issue: Most issue solutions call for additional staff- both worker and management level. Broadband—will it be a new department, or fall under existing departments? Action Decision will be reached in time to meet broadband launch. Status: This item was not accomplished. We are waiting for the final launch of broadband. The impact of broadband and continued growth in water and electric customer base will together reshape the District, its staffing and its management processes for years to come. It will require a review of how we do business. Issue 6. Financial Master Plan Issue: Cash flow is a problem. We are fronting cash that will eventually be repaid by developers or will eventually be financed by long-term debt. We need to develop a finance master plan to anticipate the need for cash. This will be a tool to help decide on sources of cash to front projects, on proper cash reserves to establish and to help determine proper levels of rates and fees. Action: Bring in a financial consultant on a limited basis to clarify the requirements for a financial plan Status: This item was accomplished Issue 7. Technology Plan Issue: The District has invested in technology but we are not yet getting full benefit from the investment. We are not using the full capability of the technology that we have. The various components do not communicate with one another. Action: Develop a plan to take full advantage of our technology capability. Fund that plan in the budget even though it may require multiple years to fully implement. Status: The individual elements of a technology plan are being developed, but the plan is not yet puled together. Ian is developing a Work Management System. He also presented to the Board an Outage Management System. Mary has conducted a needs survey among the entire staff. She will next develop a proposal for a two or three level computer system, based on the sophistication and need of user. We have replaced old systems that are six years. We have replaced the system firewall and upgraded the network server. We have added a GIS server. We have deployed mobile GIS units for use in field. We have established design integration for GIS data in electric and water engineering. s Page 4 } Issue 8. Community Relations Issue: The District needs to inform its customers of programs and services. We are prohibited from using the cable television system owned by USA Media. District needs to pursue other means of getting our message out: Channel 6, Sierra Sun, mailers, and participation in community activities. Action: Develop a Community Relations Plan for submission to the Board of Directors Status: This item was not accomplished. Issue 9. Customer Service Issue: It has been years since the District reviewed the methods it uses to deal with its customers, especially in regard to billing processes. Over the years business practices have continued to implement new tools, such as ATM and credit card payments, e- commerce, simplified service application forms, and so forth. Action: Review District policies, procedures, and practices related to dealing with our customers and prepare a draft plan for submission to the board to modernize our customer relations. Status: Admin Services are exploring the use of credit and debit cards., as well as on-line banking services used by our customers to accept electronic payments. The District's deposit policy has been modified. We are evaluating the possibility of eliminating or substantially reducing deposits. Mary is at a conference where these issues are being discussed. She plans to report to the Board in November Issue 10. District Survival Issue: A permanent concern. Being big is good. Growth is critical Action: Continue managed growth. Look outside the "box" for regional opportunities to do a better job. Look over shoulder- bring in special district representative on LAFCo Do a good job 's Status: This is a somewhat vague task. It incorporates the other tasks in the strategic plan. We have been working this goal through various methods. r i Page 5 Issue 11. Board Processes Issue: Board needs to adapt and follow a set of norms. Board members need to agree on these norms. Action: Hold a Board workshop Status: This item was accomplished r Page 6 E