HomeMy WebLinkAboutStratigic Plan1 | P a g e
Strategic Plan 2021-2024
Table of Contents
Executive Summary ................................................................................................................................ 2
Significant Challenges Moving Forward ........................................................................................ 2
Responsibility ....................................................................................................................................... 3
What the Future Holds ........................................................................................................................ 3
Financials ............................................................................................................................................... 4
Strategic Planning ............................................................................................................................... 4
History of the Truckee Donner Public Utility District ..................................................................... 5
Organization Overview ........................................................................................................................... 7
Organization Culture ............................................................................................................................... 7
Truckee Donner Public Utility District’s Mission ......................................................................... 8
Truckee Donner Public Utility District’s Values ........................................................................... 8
Cultural Emphasis ............................................................................................................................... 9
Staff Development ............................................................................................................................. 10
Strategic Planning Process ................................................................................................................. 12
Painting the Landscape .................................................................................................................... 12
Organization SWOT Analysis.......................................................................................................... 14
Community Outreach Process Overview: Engage.Involve.Enrich ....................................... 16
Community Outreach: The Community Survey ......................................................................... 17
Staff Development Process ............................................................................................................. 21
Board of Director Goals ................................................................................................................... 22
Projects to Achieve Goals: .............................................................................................................. 24
Environment Social Governance Model ...................................................................................... 33
Truckee Donner Public Utility District Innovation: Board of Director Initiatives .................. 38
Organization Financial Overview ....................................................................................................... 43
Appendixes .............................................................................................................................................. 45
Appendix A - Key Financial Information- Ratio & Trends ....................................................... 46
Appendix B – Audited Financial Reports 2020 .......................................................................... 47
Appendix C - Financial Master Plan – October 2019 ................................................................ 48
Appendix D - 2020 & 2021 Budget ................................................................................................. 49
Appendix E - Community Survey Results ................................................................................... 50
Appendix F – Focus Group Data Results .................................................................................... 51
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Executive Summary
Over the course of the past 93 years, the Truckee Donner Public Utility District has
adapted to many changes, including evolving infrastructure and technology standards,
expanding service territory, customer needs, increasing regulatory compliance, and
ever changing economic conditions. One thing that has not changed is the Truckee
Donner Public Utility District’s steadfast commitment to providing safe, reliable and
affordable drinking water and electric services to the community.
Never has the delicate balance of planning and adaptability been more important than in
our current environment. Having just gone through the COVID-19 pandemic and its
wide ranging economic impacts, the threat of devastating wildfires throughout the state
of California, and the increasing sense of urgency to adopt energy policies to mitigate
the effects of climate change, clearly we must be coordinated and nimble at the same
time.
One of the tremendous benefits of a community owned public utility is the opportunity to
continuously add value and quality of life to our rate payers and community. Through
community engagement and the public process, the District has and will continue to
evolve with the ever changing needs and expectations of the community we serve. This
is evident in the results of our recent community surveys in which 79% of participants
indicated the Truckee Donner Public Utility District has a critical role in the quality of life
here in Truckee. While we are proud of the tremendous approval rating with the
customers we serve, we also understand that this success is only a starting point. We
look forward to our continued collaboration in the years to come.
With the 2021-2024 Strategic Plan, the Truckee Donner Public Utility District looks
forward to taking on the challenges of providing innovative ways to improve our
customer experience, tailor services to meet emerging needs, ensure the success of
our socially and economically diverse community, and continue to build upon our quality
of life in Truckee.
Significant Challenges Moving Forward
As has been the case over the past 93 years, the future presents itself with new
challenges. These will come in the form of resource management, replacement of aging
infrastructure, wildfire mitigation, and the need to take an increasingly forward thinking
and strategic approach to energy resources and climate impacts. The Truckee Donner
Public Utility District has adopted strategic priorities to address these challenges head
on.
In 2019, the Truckee Donner Public Utility District adopted a Wildfire Mitigation Plan,
increasing the District’s investment in vegetation management from an annual expense
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of approximately $250K in 2015 to an annual expense of more than $1.5M in 2021.
Due to the nature of our geography and seasonal climates here in Truckee, the Truckee
Donner Public Utility District has a long history of investing in a higher standard of
infrastructure to endure the impacts of winter storms. The increasing focus on the
threat of wildfires has required the Truckee Donner Public Utility District to elevate this
effort in the form of increased vegetation management, innovative alternatives in
distribution system management and evaluation of new technologies and construction
standards. While the Truckee Donner Public Utility District has incorporated
underground utility construction standards with new development for more than 20
years, more than half of the existing distribution system remains overhead. The
Truckee Donner Public Utility District’s 2021-2024 Strategic Plan includes initiatives to
explore the feasibility of community wide undergrounding as well as other potential
wildfire mitigations measures.
Another key strategic priority for the Truckee Donner Public Utility District will be to
continue to build upon our commitments to carbon free energy and the reduction of
greenhouse gasses. Over the past decade, the Truckee Donner Public Utility District
has raised the bar in identifying opportunities to increase clean renewable energy
resources within our purchased energy portfolio. In 2021, the Truckee Donner Public
Utility District purchased power imports including 65% clean renewable energy. The
expectation is this will increase to 75% in 2022 as the Red Mesa Solar Plant comes on
line. While these accomplishments are well ahead of California State mandates, the
Strategic Plan includes initiatives for continued progress by identifying opportunities to
move toward 100% clean renewable energy.
Responsibility
The Truckee Donner Public Utility District’s 2021-2024 Strategic Plan establishes bold,
yet achievable goals for our organization moving forward. These goals are
accompanied by increasing costs of operation, labor and materials, investments in new
resources and infrastructure, and improvements in technologies. Recognizing this, it
will be essential for the Truckee Donner Public Utility District to increase efficiencies,
identify and pursue alternative funding opportunities and maximize the value of every
dollar.
What the Future Holds
In 2020, the Board of Directors identified the need to engage in the District’s first formal
Strategic Plan that would pivot from the perspective of the more traditional utility to
exploring innovative and visionary ideas for its future. The Strategic Plan is the guiding
document for the Truckee Donner Public Utility District’s goals moving forward,
including key components of community engagement and inclusion, staff development,
environmental stewardship and enhancements to safety and reliability.
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The Strategic Plan also includes new initiatives to explore opportunities and
partnerships moving forward, adding value and quality to our community. Initiatives,
such as; exploring local power generation, community broadband access, renewable
energy markets, and underground utility infrastructure will do just that.
While these initiatives do not come without significant costs, they address critical
challenges our community currently faces regarding climate change, safety, and
economic sustainability. Through collaboration with key stakeholders and partnerships,
the Truckee Donner Public Utility District along with our rates payers can be one of the
key partners in our community. As the Truckee Donner Public Utility District continues to
identify and plan for the challenges ahead, we continue to deliver the safe and reliable
services we all expect to ensure our long history of service excellence is carried
forward.
Financials
The District’s financial position includes $194M in assets and $63M in net position. The
District’s $44M operating revenue budget is comprised of $30M electric utility and $14M
water utility. Reserves total $30M (electric $25M and water $5M).
The District prepares a bi-annual budget with the next cycle occurring in the fall of 2021
for the budget years 2022 and 2023. The budget includes a 10-year financial forecast,
this cycle 2022-2031. This budget balancing effort will include the strategic plan initiative
drivers, as well as, forecasted revenue and cost growth factors.
Strategic Planning
Truckee Donner Public Utility District embarked on a formalized strategic planning
process in July of 2020. In late February, the challenges of the Pandemic (COVID 19)
presented themselves worldwide. The Truckee Donner Public Utility District Board and
staff showed fortitude, focus and courage to continue all strategic planning processes.
The process itself has been multi-faceted and designed to provide a critical roadmap
painting the future landscape of the Truckee Donner Public Utility District. This ten-
month process has been designed:
To engage the community, Board of Directors and staff to bring resources to the
community by focusing on resiliency and sustainability;
To pioneer new ideas;
To partner with customers and communities;
To position for future partnerships;
To give the opportunity for the Board and staff to engage with our stakeholders
and community to focus on collaborative initiatives that will make a difference in
our District and community;
To continue to build a vibrant culture during challenging times and beyond
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To provide the focused financial long-term health for the Truckee Donner Public
Utility District by developing overarching goals and strategies/ projects to achieve
these goals;
To evaluate processes and systems that need to be reinvented to ensure
effectiveness and efficiencies for our ratepayers, employees and the community;
To provide a high level of transparency and inclusivity; and
To provide a roadmap for the Truckee Donner Public Utility District’s future.
The Truckee Donner Public Utility District engaged Pamela Hurt Associates to help
design a unique strategic planning process that would include leveraging all four pillars
shown below simultaneously.
The District has
connected all
four of these
pillars with
different
activities, while
building on
future focused
ideas over the
last nine
months. Key to
this process
has been the Board of Directors and staff engaging with the community, participating in
both a community survey and neighborhood focus groups to help prioritize four Board of
Director Initiatives. These key Board Initiatives are to serve as catalysts for continuing
community partnerships where the Truckee Donner Public Utility District plays a vital
role with other districts, agencies the Town of Truckee, county, and state to enable our
community to continue to evolve and become all it can be.
History of the Truckee Donner Public Utility District
The Truckee Electric Company, owned by Cecil E. Edmunds, was a private generation
with electric services to a small number of people in the downtown area, operated by a
water wheel on the Truckee River. Following a five-year drought, the Truckee River had
limited water to turn the water wheel. Coupled with a desire to expand services,
residents drew up a petition calling for a special district formation to buy electricity from
the downstream generators owned by Sierra Pacific Power Company. In 1927, Nevada
County received the incorporated paper from the State of California. In accordance with
the provisions in the Public Utility District Act, Truckee Public Utility District was formed,
with Cecil E. Edmunds filling the first General Manager's role.
In the first 20 years, the Truckee Public Utility District served a few dozen houses and
shops in the downtown area contracting with Sierra Pacific Power Company to maintain
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lines. Not long after, Truckee's evolving community looked to the Truckee Public Utility
District to support other local government needs. During the 1940s, the Truckee Donner
Public Utility District began purchasing private water companies that purveyed water
from surrounding underground springs, supplying water to Truckee residents.
As Truckee grew, so did the newer generations of families with a need for water and
power. As the most significant government landowner of the time, Truckee Donner
Public Utility District provided essential community resources like public school sites
and recreational activities. Using the proceeds to expand the water and electric services
and environmental conservation for public resources, the Truckee Donner Public Utility
District embarked on drilling wells to provide water. In the late 1950s, the Truckee
Donner Public Utility District helped to develop and organize recreation for the
community. The General Manager, several Board of Directors, and community
members planned and built a community golf course on the property south of the
Truckee River. Known today as the Ponderosa Golf Course, it is a private/public
partnership that has stood the test of time. In the 1960s, the Truckee Donner Public
Utility District supported residents in forming a separate recreation and park district.
With the completion of Interstate 80 (I-80) in 1964, and a new agriculture station moving
from the Lincoln Highway (Donner Pass Road) to I-80, the Truckee Donner Public Utility
District identified the old agriculture station for the administrative and operating
headquarters. With expansion and tourism evident, the Truckee Donner Public Utility
District borrowed money from Rural Electrification Administration during the 1960s to
expand the electric system and to build the Truckee substation. The Truckee substation
is still in operation in the heart of Truckee. The Truckee Donner Public Utility District
purchased the Donner Lake distribution facilities from Sierra Pacific Power Company
and changed its name to the Truckee Donner Public Utility District.
Of notable interest in the 1970s, the Tahoe Donner subdivision began development with
its water and electric infrastructure, increasing total utility infrastructure by a factor of
five; both water and electric customers doubled.
Since 1980, the Truckee Donner Public Utility District has sought alternative energy
sources and pursued hydroelectric plants at Boca and Stampeded dams and joining
Utah Associated Municipal Power Systems (UAMPS) to secure the Public Power Model.
The community of Hirschdale was annexed and welcomed to the Truckee Donner
Public Utility District. Most recently, Glenshire Mutual and the Donner Lake Water
system were incorporated into the Truckee Main Water system, connecting all Truckee
communities.
The Truckee Donner Public Utility District occupies 45.5 square miles, beginning four
miles from the northern border just beyond Alder Creek Road, south to Placer County,
and 11 miles from just beyond the western shore of Donner Lake eastward to the rim of
Boca Dam and the Hirschdale community.
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Organization Overview
Local governance is a special system where districts can exercise its function and
responsibility to work together for the overall betterment of the community they serve.
Abraham Lincoln said it best “In this age, in this country, public sentiment is everything.
With it, nothing can fail; against it, nothing can succeed.”
The Truckee Donner Public Utility is a special district, formed in 1927, and governed by
five elected at-large, Board members. Each elected Board member serves four-year
staggered terms. Five Board of Directors serve as the governing body with respect to
policy and fiduciary responsibility. The policy and spending tools for local agencies to
take a collective action are; ordinances, resolutions, and action motions.
The General Manager, hired by the Board of Directors, is responsible for the
professional expertise to lead, manage, organize, and execute the mission statement of
the Truckee Donner Public Utility District and the goals of the governing body.
The General Manager’s Executive Leadership Team, best determines how to implement
and deliver policies and services through professional acumen while adhering to
Federal, State, and Local regulations and laws. The Executive Leadership Team is
responsible for integrating the mission and values of the organization.
The Truckee Donner Public Utility District’s Counsel is another key position critical to
effective and efficient working relationship. Serving as the “District’s” Counsel, this
position advises the Truckee Donner Public Utility District on its legal matters while
working closely with the Board of Directors and General Manager to ensure the highest
legal standard, ethical behaviors, and that community interests are met.
The General Manager coordinates between all internal and external entities to assure
the effective delivery of services meet the needs of the governing Board and
community. The special relationship between the General Manager, District Counsel
and the Board, provides essential relationships surrounding organizational performance,
organizational reputation, value to the community, community pride, and confidence.
Organization Culture
The success of the Truckee Donner Public Utility District, like any organization, is
dependent upon a strong organizational culture. The Truckee Donner Public Utility’s
culture is defined by priorities, behaviors, beliefs and values. As a public agency,
providing service to the Truckee community, the culture is built upon the foundation of
the values: Safety, Communication, Integrity, Accountability, Timeliness, and Work-Life-
Balance. Built upon this foundation is a commitment to provide an open and transparent
workplace, cultivate creative and innovative ideas to improve efficiencies, foster
opportunities for collaboration, reward operational excellence, maintain a high level of
customer service and continue to serve as leaders in management of environmental
and community resources.
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The Truckee Donner Public Utility District has in the past, and will continue in the future,
to strive to improve our reliable and sustainable service. In order to continue to improve
and achieve all of the exciting goals in our future, it is critical that the entire Truckee
Donner Public Utility District Team is involved in finding solutions and setting new
standards of success. By building trust, collaboration and a truly rewarding work
environment, the Truckee Donner Public Utility District will successfully deliver on our
commitment to contribute positively to the quality of life here in Truckee and solidify
ourselves as the employer of choice here in the Tahoe-Truckee basin.
Truckee Donner Public Utility District’s Mission
The Mission of the Truckee Donner Public Utility District is to provide reliable, high
quality utility and customer services while managing District resources in a safe, open,
responsible, and environmentally sound manner at the lowest practical cost.
Truckee Donner Public Utility District’s Values
In 2018, the Truckee Donner Public Utility District embarked on memorializing the
customs and behaviors of the Truckee Donner Public Utility District’s employees in our
values. These values emulate how staff achieves the mission through actions. In 2020,
a desire by employees to update and rank the organization’s values was completed
using employee meetings and an employee survey.
The Truckee Donner Pubic Utility District’s Values Are:
Safety – Safety is our way
Safety is our first priority. We are committed to the health and safety of our employees,
customers, and community through the continuous practice of prevention, education, and
awareness.
Communication – Send and receive
Foster positive engagement by creating a strong communicative environment that
includes; active listening, transparency, clear, concise, and the timely transmission of
information, with empathy and respect. This also includes providing and receiving honest
feedback.
Integrity – Honest and ethical
Highest quality service to the public and employees, utilizing honest and ethics as our
base principles.
Accountability – Own it
A strong performing team with the obligation and willingness to accept responsibility for
our actions, maintaining a sense of humility and inclusiveness.
Timeliness – Meet our goals and commitments
A highly effective agency and responsive organization meeting goals and expectations in
a timely manner.
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Work-Life-Balance – Work hard, play hard
We value every employee and foster a healthy work life balance culture, allowing
employees to bring their best selves to work every day
Cultural Emphasis
The Board’s strategic Goal #5 states: Developing an inclusive culture drives
organizational integration and success.
The focus on culture centers on being a value-based organization that aligns our values
in everything we do. This manifests the culture in a way that is authentic to the Truckee
Donner Public Utility District and our employees.
Having a values-based culture helps to provide structure, expectations, and consistency
for all Truckee Donner Public Utility District employees. It also provides stability,
commitment, and well-being for employees while at work. The goal is for all employees
to be able to focus on personal growth and achievement while serving our mission and
the Truckee community.
As part of the strategic planning process, a focused effort was placed on creating
processes that would enhance the values-based culture. One process included defining
organizational behaviors associated with each value. With an enthusiasm for
authenticity and to exemplify the values-based culture, all employees were provided the
opportunity to take part in defining core value behaviors for the Truckee Donner Public
Utility District. A train-the-trainer session for managers and employees provided by
Pamela Hurt Associates and Human Resources prepared facilitators to gather pertinent
information. Each department held meetings and produced examples of the behaviors
associated with each value. Each group voted on their top three behaviors for each
value.
After the meetings were completed, the voting results from each meeting were compiled
and analyzed by Human Resources to determine trends and the top behaviors for each
value throughout the organization. These results were shared with the entire team and
the Board of Director’s for greater understanding and to define expectations.
Defining behaviors associated with each value provides each Truckee Donner Public
Utility District employee guidelines and expectations of actions on a daily basis. As a
result of these meetings, employees quickly became empowered to act as
ambassadors, helping other employees to model the behaviors describing each value
and to be held accountable. This is a step to ensure the Truckee Donner Public Utility
District is “walking-the-talk”.
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Values and Behaviors:
Safety: Safety is our way of life
Look out for each other
Situational/work environment awareness
Creating safe work habits & spaces
Communication: Send and Receive
Collaborative two way communication
Set clear expectations with acknowledgment & understanding
from each party
Be respectful with who you are communicating with
Integrity: Honest and Ethical
Do the right thing when no one is watching
Be Consistent
Do what you say
Accountability: Own it
Own & Learn from your mistakes
Be responsible for your actions
Be honest with yourself & others
Timeliness: Meet our goals and commitments
Respect other peoples time
Be prepared
Be responsive
Work Life Balance: Work Hard / Play Hard
Have fun and healthy habits at work
Set boundaries for home and work life
Choose to have a positive attitude/outlook
Staff Development
With identified behaviors for each of the core values reflected in demeanor,
performance, and presence, it is also important to connect the values to Truckee
Donner Public Utility District processes. Adding values to processes provides formal
expectations and accountability. This reiterates the importance of the values and
emphasizes how they are connected in every business aspect.
Here are examples of how we will be implementing the core values into our processes:
The Why - Marrying Values to Culture
• Five employee meetings occurred facilitated by Managers
• Train the Trainer was held to ensure consistency of deliverables
• Department participation
• Electric: 18
• Water: 8
• District Clerk, IT and Linemen(last minute) 7
• Admin Services: 11
• HR, ELT, General Manager 7
• Total: 51/65 total employees = 78%
• Note: Jillian Steward, ELT members and General Manager attended meetings as well
Process
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As job descriptions are created or updated, an expectation of performing in
alignment with our core values will be included as an essential duty and
responsibility of all Truckee Donner Public Utility District employees. This will set
the cultural tone immediately for all new employees and reiterate the importance
of core values with current employees.
Utilizing the values and behaviors as rating criteria or qualifiers for interviews to
ensure candidates are a good fit with the Truckee Donner Public Utility District.
Incorporating these values into processes allows for a training opportunity with
mid-managers on how to assess if a candidate has these traits during an
interview.
Performance evaluation forms include performance ratings on each of the
values. Allowing employees’ evaluations to be inclusive of all aspects of their
employment, not just their specific job function.
The values are essential duties and responsibilities listed in each job description.
A recognition program with a value focus is implemented. Recognizing and
sharing examples of employee’s acting on our core values will highlight the
importance and create motivational opportunities for everyone to embrace the
values.
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Strategic Planning Process
Painting the Landscape
Strategic Planning addresses the “what and why” of strategic activities. It provides the
roadmap the Truckee Donner Public Utility District needs to pursue a specific strategic
direction. Painting the Landscape processes were developed by Pamela Hurt
Associates to engage the Board and Staff to roll up their sleeves and evaluate what is
working well with the traditional “core” business of the Truckee Donner Public Utility
District and what needs to be reinvented or improved. It also provides the opportunity to
define what ideas will take the Truckee Donner Public Utility District to the next level of
performance.
The Board and Staff facilitated in-depth meetings and workshops to:
Evaluate innovative ideas that needed to be explored and implemented over the
next three years to ensure the Truckee Donner Public Utility Districts resiliency,
relevancy to the community, sustainability, and success.
Visioning for the future. Using the concept of there is in the box, out of the box
and no box thinking, the Board and staff spent over 10 hours brainstorming ideas
under the heading of “no box thinking”. Knowing the changing economic horizon
and political/cultural/scientific (focus on climate change) issues, the Board and
staff wanted to evaluate the changing roles of utilities of the future and our
utilities impact on our community as it evolves.
Strategic Levers were defined by the Board with staff input.
What are strategic levers?
They refer to a strategy or capability that enables long term exceptional
performance to occur in an organization.
They are 40,000 foot, in the balcony concepts.
They are used to improve business performance and profitability.
They become the meat and potatoes of the strategic planning process.
Strategic levers must be linked, consistent and working together to ensure
maximum efficiency for integration.
They are meant to be catapulted out as appropriate. This ensures a nimble
approach to strategic planning.
Strategic Levers become the roadmap to the Strategic Planning Goals
During July and August, the Board and Staff developed the Truckee Donner Public
Utility District’s Strategic Levers. Much dialogue occurred to be sure the levers
encompassed all the ideas that were brainstormed during the early “Painting the
Landscape” workshops which focused on “Traditional, Visionary and Innovative” ways
of thinking about the utility’s future roadmap.
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Key to adopting the strategic levers is the organizations SWOT analysis which will be
discussed in detail in the next section. The SWOT outcomes were used as guideposts
when creating the strategic levers.
Concepts that were key discussion points to identify the strategic levers were:
Utilities can have a singular interest and thus create organizational mind
set/inertia towards change.
Risks associated with over and under leveraging of assets and structural
constraints.
It would be easy to revert to silos and a silo mind set.
Focus on becoming an economic engine for our communities.
Become an integral part or standard bearer for this community.
Develop partnerships everywhere.
Create sustainable methods that support delivery to our community.
Have a high level of civic engagement.
Truckee Donner Public Utility District’s Strategic Levers were identified listed below:
1. Organizational Integration
2. Engage with customers and our communities to identify opportunities
3. Modernization of this Utility
4. Take the best of private sector thinking to add value to our communities
5. Environmental Stewardship: Create a sustainable, resilient environment for all of our communities
6. Manage for Financial Stability and Resiliency
7. Developing an Inclusive Culture Drives Organizational Success
8. Be Welcoming and Transparent in How We Work
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Organization SWOT Analysis
A SWOT analysis is a simple but useful framework for analyzing the Truckee Donner
Public Utility District’s strengths, weaknesses, opportunities, and threats. It is a very
common tool used in the strategic planning process.
The SWOT
Identifies what the Truckee Donner Public Utility District does well;
Identifies gaps in organizational performance;
Helps to minimize risks; and
Takes the greatest possible advantage of identifying opportunities for future
success.
Painting the Landscape/SWOT
Traditional/Innovative/Visionary
Painting the Landscape
Threats
Opportunities
1. Organizational Integration Political/Regulatory
Environment
Mindset/Inertia
Lack of succession
planning
Authentic and evolving culture
and values
Operational Excellence
Become the standard bearer
for the community
Professional
development/learning
environment
2. Engage with customers
and our communities to
identify opportunities
Vocal minorities
Inspecting expectations
Jurisdictional
Partner with customers and
communities
Communicate, educate, and
understand needs
Identify new services that we
are well positioned to provide
Validate customer and
communities’ vision and
expectations
Pioneer new ideas
Leverage relationships
3. Modernization of the
utility
Capacity
Mindset/Inertia
Over and under
leveraging
Unmanaged risks
Security
Reduce costs and improve
services
Reliability/Resiliency
Position for future partnerships
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4. Take the best of private
sector thinking to add
value to our communities
Mindset/inertia
Lack of experience
Structural constraints
Legacy processes and
thinking
Become an economic engine
for our communities
Be customer and communities
driven
Leverage future partnerships
5. Environmental
Stewardship: Create a
sustainable, resilient
environment for all
communities
Competing priorities
Technical uncertainty
Lack of resources
Political and regulatory
landscape
Community
fatigue/saturation
Evolving customer
expectations and
financial impacts
Bring resources to the
community
Create sustainable methods
that support delivery to our
communities
Focus on sustainability and
resiliency
Become renewable and
carbon free
Establish community wide
GHG reductions
Be cutting edge/forward
thinking
6. Manage for financial
stability and resiliency
Regulatory landscape
Inverse condemnation
Broad economic
uncertainty
Attracting and retaining
talent
Legal liabilities
Cyber, technology risks
and data breaches
Leverage our economic engine
Provide resources in times of
crisis
Provide resources to pursue
organizational and community
needs/opportunities
Continue local financial
stability
Maintain local control
7. Developing an inclusive
culture drives
organizational success
Changes in leadership “One Utility” mindset
Attract, develop and retain
talent
8. Be welcoming and
transparent in how we
work
Special interest
interference
Reverting to silo
mindset
Lack of trust
Lack of community
engagement
Foster an engaged and
educated customer/
community
Be the trusted advisor
Maintain local control
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Community Outreach Process Overview: Engage.Involve.Enrich
The Truckee Donner Public Utility District’s strategic planning effort is based on four
pillars: Community; Truckee Donner Public Utility District Board of Directors; Truckee
Donner Public Utility District’s Executive Leadership Team; and Truckee Donner Public
Utility District’s employees. All are critical and interrelated in the process and through
effective communication inform each other. This section focuses specifically on an
innovative and comprehensive community outreach process used during this strategic
planning process.
Truckee Donner Public Utility District conducted an extensive community outreach and
input process that included Truckee Donner Public Utility District’s Board and staff but
also leveraged outside expertise in the community. Key target audiences included:
Customers and community
Local agencies/groups/non-profits
Industry partners
Hard to reach (Communidad Espanola and under 30-years old)
The community outreach process resulted in a rich experience with a meaningful
exchange of information for both the Truckee Donner Public Utility District Board/staff
and our extended community.
To engage and solicit input from the above target audiences, Truckee Donner Public
Utility District conducted a comprehensive communications and outreach effort using all
available communications channels including:
Direct calls/e-mails to over 50 local agencies, groups, non-profits
Robust traditional and aggressive digital marketing campaign
Compelling webpage, info-graphics/videos, and focus group sign-up tool
Weekly 15-second video testimonials from local influencers
Providing print, e-mail, and social medial kits to partners
Truckee Donner Public Utility District’s communication objectives included:
Raising awareness of the strategic planning process and the Board’s Strategic
Initiatives
Educating the community regarding the strong performance of the Truckee
Donner Public Utility District and the value of public power and water
Soliciting customer and community input regarding Truckee Donner Public Utility
District’s performance and potential Board initiatives
Truckee Donner Public Utility District, in order to solicit meaningful customer and
community input, also conducted two comprehensive engagements: Truckee Donner
Public Utility District formal community survey and Truckee Donner Public Utility District
Strategic Plan Neighborhood Focus Groups.
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Community Outreach: The Community Survey
The first effort to solicit community input was a comprehensive community survey
conducted by an outside expert with experience in the utility and government sectors.
From December 3, 2020 to December 13, 2020, Probolsky Research conducted a live-
interviewer telephone and on-line survey among Truckee Donner Public Utility District
customers and service area residents. A total of approximately 1000 community
members were contacted with 400 people being fully surveyed. This yielded a margin of
error of +/- 5%, with a confidence level of 95%.
The survey was designed to ensure that those who participated represented the full
demographics of the Truckee Donner Public Utility District’s community. The survey
included over 40 questions covering customer satisfaction with Truckee Donner Public
Utility District’s electric and water utilities along with input on potential Truckee Donner
Public Utility District Board of Director’s initiatives being considered during the strategic
planning efforts.
The community survey was presented by contractor Adam Probolsky directly to the
Truckee Donner Public Utility District Board in a public meeting. This information and
the final report were shared with the community and made available on the Truckee
Donner Public Utility District’s website.
The survey results were very positive and informative regarding the community’s
relationship with the Truckee Donner Public Utility District, the communities preferred
methodology of communication, and their interest in the Truckee Donner Public Utility
District’s Board’s strategic planning initiatives.
Key results were:
81% of respondents approve of the Truckee Donner Public Utility Districts job in
providing water
77% approve of the Truckee Donner Public Utility Districts job in providing
electricity
79% believe that their general quality of life is positively impacted by water and
electric infrastructure
87% rate their customer experience positively
92% say they agree that the Truckee Donner Public Utility District provides
valuable services
The community also weighed in on the Board of Directors strategic planning initiatives.
The community showed overwhelming support for the four Board of Director initiatives
(61%-78%) which are:
1. Undergrounding of Overhead Power Lines
2. High Speed Broadband
3. 100% Clean Renewable
4. Local Clean Power Generation-solar, hydro or biomass energy
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The survey results were invaluable providing specific feedback on:
Validating the Truckee Donner Public Utility District’s current communications,
programs, and services
Identifying areas to improve
Soliciting input on the Truckee Donner Public Utility District’s Board strategic
planning initiatives
Community Outreach: Neighborhood Focus Groups
The second component for community outreach in the strategic planning process
included direct engagement with the community. To accomplish this, the Truckee
Donner Public Utility District designed an innovative and compelling series of
Neighborhood Focus Groups. The focus groups distributed into neighborhoods (six
total) based on an understanding that the Truckee community responds well when
invited to engage with their own neighborhood.
This included one focus group conducted entirely in Spanish. Each neighborhood focus
group convened via Zoom due to COVID-19 safety considerations. Board members, the
Executive Leadership Team, Pamela Hurt Associates, and staff attended these
meetings. Moreover, staff were trained as facilitators, taking this important lead role in
the focus groups. Each neighborhood zoom was broken into “chat rooms” to provide
smaller group discussion.
The Neighborhood Focus Groups were:
Tahoe Donner/Donner Lake
Spanish Speaking Community
Prosser/Grays Crossing/Industrial Way/Downtown
Sierra Meadows/Gateway/West River Street
Make-up for all sessions
Glenshire/Old Greenwood/Olympic Heights
The Truckee Donner Public Utility Districts Neighborhood Focus Groups held between
January 7, 2021 and January 14, 2021, had a goal of 300 registrants. A resounding 540
community members registered and 251 attended.
Of notable mention, the Neighborhood Focus Groups communications and outreach
included a targeted effort to reach two community groups – Communidad Espanola and
the under 30-year-old population. These two groups have been historically
underrepresented. To accomplish this exceptional turn out, the Truckee Donner Public
Utility District’s website was dedicated to strategic plan/focus group outreach was
translated into Spanish along with key marketing and social media materials. Truckee
Donner Public Utility District also worked directly with our local partners; Sierra
Community House and Tahoe Truckee Unified School District, to leverage their
outreach channels and direct relationships. This included providing printed flyers,
talking points on participation, as well as, providing social media kits.
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Finally, the Truckee Donner Public Utility District engaged an experienced digital
engagement consultant for the overall focus group social media campaign which
included targeting community members under 30-years of age.
Results were documented and presented to the Truckee Donner Public Utility Board in
public workshops. This information and the final report were shared with the community
and made available on Truckee Donner Public Utility website. The end result, achieving
the prioritization of the Board’s initiatives, while strengthening the relationship of the
Truckee Donner Public Utility District’s relationship with our community.
The success of both community outreach processes were very effective due to the
engagement of Andria Gutierrez of IdealWild, to provide the design of an exceptional
digital marketing and social media plan.
This included:
Branding and copywriting
Website management
Community leader spots
Social Media Marketing and Advertising
Branding and Copywriting: “Help Piece
Together Our Future”
The campaign of “Help Piece Together Our Future” was used across all social media
platforms as well.
Social Media Platforms used consistently were:
Facebook/Instagram
LinkedIn
Twitter
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Social Media Advertising
Geo-targeted Advertising - neighborhood specific
The Truckee Donner Public Utility District’s extensive community outreach processes
became invaluable in understanding community needs. Serving to inspire the initial
General Manager Task Force Meetings on the Board’s four initiatives. This process also
demonstrates the collaborative value of listening to our community.
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Staff Development Process
Below are actions currently being implemented to enhance our staff development
process:
Updating and creating job descriptions, including aligning behaviors with values
are included in performance measures as an essential duty and responsibility
Implementing a thirty day check in with Human Resources focusing on new roles
for new hires
Updating performance evaluation forms to include performance ratings on each
of the values and to have a development focus
Manager training sessions were held on how to provide effective performance
evaluations using the new performance evaluation process
Core values behavior workshops focused on establishing behaviors for each core
value
Future Action Items:
Staff Professional Development & Engagement Year Planned
Establish a “Culture Club” to build engagement and collaborative,
community projects and events
2021
Create & Champion a recognition program that aligns with staff
development goals and Core Values.
2021
Develop a comprehensive and inclusive new-hire onboarding and
orientation program.
2021-2022
Continued to connect District Values to performance goals with a
focus on development through process updates such as interview
practices and performance management, and through facilitating
cross-departmental engagement opportunities.
2021-2024
Develop Standard Operating Procedures and “Employee Toolkit”. 2022
Establish a Leadership Academy for staff to identify and implement
education and personal development opportunities.
2022
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Board of Director Goals
One of the most important parts of the strategic planning process is the setting of
Board Goals. These goals are multi-year and contain the ability to focus on the
Truckee Donner Public Utility District’s mission. They focus both the Board and staff
on achieving a shared vision. Goals provide focus to the organization and serve as a
measurement of success. Guiding the direction of the Truckee Donner Public Utility
District so the Board and staff can measure organizational success together. They
serve as stepping stones to an end result.
Overarching goals usually have a financial, environmental, staff development,
community involvement, customer service and an organizational effectiveness
component. They also include one or two aspirational goals. Goals not only serve to
motivate employees but provide the stability for staff to trust the Truckee Donner
Public Utility District’s decisions and direction. They must be broad enough to allow
the Truckee Donner Public Utility District the economic ability to pivot as needed.
In this strategic planning process, goal setting evolved following the identification of
key strategic levers during the “Painting the Landscape” process, as described
earlier. The Board and Staff discussed the key components, the eight strategic
levers easily evolved to the top five Truckee Donner Public Utility District
organizational goals. Each department has defined key capital projects and
important projects for the Truckee Donner Public Utility District’s sustainability and
reliability that are included in this section of the strategic plan. These are both long
and short term projects that will be updated quarterly. They are nested under each of
the five Board Goals. Implementation of the projects will roll up to benchmarks and
milestones for achieving the goals. They are quantifiable and provide transparency.
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The 2021-2024, Truckee Donner Public Utility District’s Goals are:
We all have received a sharp reminder with the recent pandemic that predicting
circumstances into the future presents risks. Recognizing this, the big picture goals
laid out in the strategic plan are not set in stone but are open to a continuing process
of re-evaluation as conditions evolve. The economy will continue to change as will
social and environmental issues. It is important that this uncertainty does not deter
from visualizing and implementing the outcomes.
The Board and staff will evaluate the progress toward these goals and evaluate the
goals themselves over time. If goals are no longer useful and relevant, articulate new
ways to work towards the mission. Edit and update the goals and celebrate the ability
to be nimble and flexible. On the next few pages are the Capital Projects and as well
as projects that focus on the Truckee Donner Public Utility Districts sustainability and
resiliency. These will be shared and updated quarterly or more often as needed with
the Board of Directors.
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Projects to Achieve Goals:
Goal #1: Manage for
financial stability and
resiliency
Project Description
Year Planned
Electric Department Capital Projects
1. Martis Valley Substation Rebuild 2021-2023
2. Glenshire Substation 2021-2023
3. New Operations Building 2022-2024
4. TR-2 Feeder Building 2022
5. Truckee Substation Rebuild 2023-2024
Important Projects for District Sustainability and
Reliability
6. Pole Replacements Annually
7. Field Re-closer Replacements Annually
8. TR-2 Feeder Re-build 20222
Water Department Capital Projects
1. Pioneer Trail-Tahoe Donner Pipeline and
Pump Station Project
2021-2023
2. 6170 Tank #2 Project 2022-2024
3. Annual Pipeline Replacement Project 2021-2024
4. Northside Well Replacement Project 2022-2024
5. Water Storage Tank Maintenance and
Rehabilitation Project
2021-2024
6. Water Facility Metering Project 2021-2024
Important Projects for District Sustainability and
Reliability
7. Water Meter Testing and Replacement
Program
Annually
8. Comprehensive Predictive Maintenance
Program
Annually
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Finance and
Administrative Services
Capital Projects
1. Upgraded Customer Service Call System 2022-2023
Important Projects for District Sustainability and
Reliability
2. Re-engineer Work Order Workflow 2021-2022
3. Customer Service Business Process Review 2021-2022
4. New Debt Analysis and Debt Issuance Annually
Information Technology Capital Projects
1. SCADA Reliability Project 2021-2024
2. Procurement and Integration of New CMMS
Software System
2021-2024
3. SCADA Radio Replacement Project 2022-2024
Important Projects for District Sustainability and
Reliability
4. Enhanced Integration of NISC 2021-2024
5. Continued Network System Maintenance
and Security Upgrades
Annually
District Clerk and General
Manager’s Office
Capital Projects
1. Integration of LaserFiche Software Systems 2021-2023
Important Projects for District Sustainability and
Reliability
2. Grant Opportunities Annually
3. Explore Property Tax for District’s Key
Initiatives
2021-2023
Public Information and
Strategic Affairs
Capital Projects
Important Projects for District Sustainability and
Reliability
1. Strategic L&R engagement, education, and
advocacy on cost and benefits of local, State,
and Federal regulations and mandates
Annually
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Goal #2: Environmental
Stewardship
Project Description
Year Planned
Electric Department Capital Projects
1. Energy Limiting Fuses- ELF Fuse
Replacements (Wildfire Mitigation)
2021-2025
2. Transformer upgrades w/ plant based
biodegradable insulating fluid
Annually
Important Projects for District Sustainability and
Reliability
3. Continued investment in renewable and
clean energy generation resources to meet
State requirements of 60% RPS and 40%
carbon-free by 2030 and 2045 respectively
2021-2030
4. Local Clean Power Generation 2021-2030
5. Vegetation Management (Wildfire
Mitigation Plan)
Annually
Water Department Capital Projects
1. Water Pump Efficiency Assessment (Energy
Efficiency)
2021-2024
2. Water Quality Monitoring Program Annually
Important Projects for District Sustainability and
Reliability
3. Water Utility GHG Inventory and Reduction
Program
2021-2023
4. Martis Valley Groundwater Management Annually
Information Technology Important Projects for District Sustainability and
Reliability
1. Identify Local/Regional partnerships to
maximize utility of existing infrastructure
and technologies for environmental benefits
2. Continued development of GIS applications
District Clerk and General
Manager’s Office
Important Projects for District Sustainability and
Reliability
1. Continue the District’s efforts in partnering
with the community to advance
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volunteer/give back programs with an
emphasis on environmental resiliency
Public Information and
Strategic Affairs
Important Projects for District Sustainability and
Reliability
1. Martis Valley Groundwater Basin
Management Plan, leadership and
stakeholder engagement
2. Representation and engagement in Truckee
River Operating Agreement (TROA)
Goal #3: Engage with our
customers and
communities in a
welcoming and
transparent way to
identify opportunities
Project Descriptions
Year Planned
Electric Department Capital Projects
1. District Office Building Modernization
Project
2021-2022
Important Projects for District Sustainability and
Reliability
2. Big Truck Day Annually
3. Learn of Burn Program Annually
Water Department Important Projects for District Sustainability and
Reliability
1. Water Quality Consumer Confidence
Reports
Annually
2. Stakeholder Workshops for Martis Valley
Groundwater Basin
Annually
3. Customer Education Programs Annually
Finance and
Administrative Services
Important Projects for District Sustainability and
Reliability
1. GFOA Comprehensive Financial Report and
Popular financial Report for 2020
Submission
2021-2024
2. Local education and recruitment Annually
3. Continue to partner with Truckee Tahoe
Workforce Housing Agency for housing
opportunities
Annually
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District Clerk and General
Manager’s Office
Important Projects for District Sustainability and
Reliability
1. Analyze and implement LaserFiche
capabilities for efficiency and cost savings,
including a robust permanent records
management program
2021-2024
2. Create strong community engagement
through website, social media, and other
media sources to meet the evolving needs of
our communities while maintaining
transparency of excellence and building
upon it
Annually
Public Information and
Strategic Affairs
Important Projects for District Sustainability and
Reliability
1. Proactive community engagement through
Board Strategic Plan Initiatives
Annually
Goal #4: Take the best of
private sector thinking to
modernize the utility and
add value to the
community
Project Descriptions
Year Planned
Electric Department Capital Projects
1. SCADA Reliability Project 2021-2024
2. Utility Undergrounding Annually
Important Projects for District Sustainability and
Reliability
3. Incorporation of Drone Technology to
conduct overhead inspections and outage
investigations
Annually
Water Department Capital Projects
1. Water SCADA Replacement Project 2021-2022
2. New Leak Detection System Technologies 2021-2024
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Finance and
Administrative Services
Capital Projects
1. ERP System assessment (upgrade or
replacement)
2023
2. Outage Management System Integration
with NISC
2022-2023
Important Projects for District Sustainability and
Reliability
3. HR Networking and partnerships to leverage
private sector resources
2021-2024
4. Continued development of online customer
service applications
2021-2024
Information Technology Important Projects for District Sustainability and
Reliability
1. Monitor and track emerging technologies to
enhance utility operations, customer service
and security
Annually
Public Information and
Strategic Affairs
Important Projects for District Sustainability and
Reliability
1. Develop and implement a formal customer
survey and utility industry benchmarking
protocol
Annually
Goal #5: Developing and
inclusive culture drives
organizational integration
and success
Project Description
Year Planned
Electric Department Projects
1. Conduct annual collaborative workshops
with staff and partner power utilities to
build communication, and collaborative
interests
Annually
2. Professional development plan for utility
staff
Annually
3. APPA National Lineman Rodeo-Lineman
Skills Competition to facilitate leadership
and team building opportunities
Annually
Water Department Projects
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1. American Water Works Association (AWWA)
workshops and technical development
opportunities
Annually
2. California Rural Water Association (CRWA)
collaborative workshops and training
opportunities
Annually
3. Association of California Water Agencies
(ACWA) and Northern California Power
Agency leadership development programs
Annually
District Clerk and General
Manager’s Office
Projects
1. Facilitate cross-departmental projects to
ensure community based projects are
successful
Annually
2. Continued education and development for
professional staff
Annually
Public Information and
Strategic Affairs
Projects
1. Support internal communication efforts by
sharing information on the District’s overall
communication, legislative and regulatory
affairs, and strategic initiatives with an
emphasis on the “why”
Annually
Human Resources Projects: Staff Development and Engagement
1. Staff workshops to identify and enrich
workplace culture
Annually
2. Identify and connect behaviors to values 2021
3. Establish “Culture-Club” to build
engagement and collaborative, community
projects and events
2021-2024
4. Develop a comprehensive and inclusive
new-hire on boarding and orientation
program
2021
5. Connect District values to performance goals
with a focus on development
2021-2024
6. Create and champion a recognition program
that aligns with staff development goals and
core values
2021-2024
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7. Facilitate cross-departmental engagement
to identify staff development and growth
opportunities
Annually
8. Develop Standard Operating Procedures
(SOP) and “Employee Toolkit”
2022
9. Establish a leadership academy for staff,
identify and implement education and
personal development goals
2021-2023
The Growth Share Matrix” Cash Cow” Analysis
The Cash Cow Model was created in 1968 by the Boston Consulting founder, Bruce
Henderson. It was first published in one of BCG’s short, thought provoking essays,
called Perspective. The growth share matrix is put simply a strategic tool that provides
insight into products and services.
More than 40 years after Bruce Henderson proposed the Boston Consulting Groups
matrix, the concept is very much alive across public and private entities. All entities
continue to need a method to manage their products, services, initiatives, and projects
to manage in a discipline and systematic way. Harvard Business Review recently
named it one of the frameworks that changed the world. The matrix is still central in
business school teaching on strategy. (Walter Kiechel, The Lords of Strategy, Harvard
Business Press, 2018).
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During this strategic planning process, the Truckee Donner Public Utility District has
used this matrix as an important tool to identify by departments areas for improvement
and bright ideas for high potential value. Two Examples:
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In the future, the Truckee Donner Public Utility District will utilize the model to conduct
high level evaluations of initiatives, services and projects throughout each of the
operational units. Application of the Cash Cow model is taking the best of private sector
thinking and creating community value. The “Cash Cow” in the context of the Truckee
Donner Public Utility District is community value. As we continue to continue to engage
with our communities, create innovative landscapes for the utility, and honor our
environmental and financial responsibilities, the Cash Cow Model will serve as our
model for the innovation, development, implementation and potential retirement of
projects and services, consistent with the “Value Added” test. The model itself serves
as a tool to enhance the transparent and inclusive process with the Board of Directors,
staff, regional partners and community.
Environment Social Governance Model
The Environmental Social Governance Model is a self-regulating Business Model that
measures the sustainability and societal impact of the Truckee Donner Public Utility
District, our clients and the communities we serve. It is used extensively in both the
public and private sector to validate important initiatives and goals that are highlighted
by both the Board of Directors and staff.
During 2021, and 2022, the Board will participate in workshops to prioritize key projects
the Truckee Donner Public Utility District is already engaged in and to provide resource
allocation during the budget cycle for these priorities. The Board initiatives, as they
evolve, will be housed under this model.
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Implementation Strategies
More important than the strategic planning process the Truckee Donner Public Utility
District has accomplished to date, is the implementation. It is the critical actions that
move a strategic plan from a document that sits in the computer to actions that drive
utility growth and economic resiliency and sustainability.
This strategic plan will provide the Truckee Donner Public Utility District with the
roadmap it needs to pursue a specific strategic direction. Furthermore, with the set of
Truckee Donner Public Utility District’s goals, projects and Board initiatives, deliver
community, customer, and employee value.
The strategic plan addresses the “what and why” of activities. Implementation
addresses the who, where, when and how. Implementation is as important, or even
more important than strategy.
The Truckee Donner Public Utility District Board plays an important role in
implementation. At the March and April workshops, implementation has been discussed
in detail. The Board should continue to work collaboratively with staff to be sure
implementation and the measurements of success of this plan are discussed regularly
at Board meetings.
A key component of implementation is transparency and accountability. Over the
course of the past two years, the Truckee Donner Public Utility District staff have
worked to develop an integrated reporting tool to create an environment in which staff
have access to the real time status of various projects, initiatives and services within the
utility. The real time access in turn creates engagement and accountability across all
levels of operations. While there are many tools available on the market to facilitate this
engagement, the Truckee Donner Public Utility District is utilizing Monday.com.
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This tool provides a very high level, user friendly environment for staff across all levels
to become involved with, and participate in Truckee Donner Public Utility District
projects and initiatives. With the adoption of the Strategic Plan, we will take this to the
next level and begin to utilize the reporting tool in providing quarterly updates on key
initiatives and projects to the Board and the community.
Local, Regional and State Best Practices Analysis: Benchmarking
The Truckee Donner Public Utility District – as a public, community-owned utility – has
the benefit of participating in joint-action groups to leverage resources, share expertise,
and collaborate. These member based, joint-action groups include:
Northern California Power Agency (NCPA)
California Municipal Utilities Association (CMUA)
Association of California Water Agencies (ACWA)
Utah Associated Municipal Power Systems (UAMPS)
American Public Power Association (APPA)
They represent thousands of public power and water systems in California and
nationally. The leadership staff of these critical organizations, have years and years of
experience in the utility industry and interact with sister utilities daily.
To further inform the strategic planning process and to get specific feedback on the key
Board Strategic Planning Initiatives, Truckee Donner Public Utility District leadership
staff executed a structured benchmarking interview with leadership staff of the above
joint-action groups. It is important to note that they each brought unique perspectives
and expertise to the table.
NCPA, ACWA, and CMUA focus on California only, whereas UAMPS operates in the
Intermountain West and APPA operates nationally. NCPA, UAMPS, and APPA only
work with public owned electric utilities whereas ACWA works only with publicly owned
water utilities. CMUA works with both.
The interviews with each joint action group were one hour long and focused on the
Board Strategic Initiatives. A detailed discussion on industry best practices, pro’s/con’s,
cost/equity, funding, and emerging trends were discussed.
The joint action groups were each represented by their CEO/GM along with key
leadership staff typically including Chief Financial Officer, government/legislation and
regulatory affairs and operations. The discussions were informative, two-way, and both
validated and challenged key components of each initiative. Below is a summary of the
benchmarking results for the four Board of Director Strategic Planning Initiatives:
Benchmarking: Undergrounding overhead electric power lines (Community
Priority)
“Fire spreads some benefit but overall costs are an issue.” NCPA
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Undergrounding is a major component in utility design and operations. Most utilities,
like the Truckee Donner Public Utility District, require undergrounding of new
construction when practical. Today, undergrounding is being considered in the context
of wildfire danger, electric system reliability, and aesthetics. However, undergrounding
of existing overhead power lines can be extremely expensive, there are limited
State/Federal funding opportunities, it often requires the cooperation of telecoms, and
has historically been the financial responsibility of the property owner.
Given the emergence of some community-wide benefits, rich discussion on the need to
collaborate with stakeholders, understand the benefits of undergrounding, and prioritize
resources. There are alternatives to undergrounding - with regards to wildfires and
electric system reliability – that should be identified and evaluated. There is also
significant regulatory uncertainty in this arena. All of this needs to be effectively
communicated to customers and the community.
Benchmarking: Providing high-speed broadband Internet throughout the
community (Community Priority)
“This is a challenging issue for utilities with a history of mixed results and some very
damaged utilities.” APPA
This is one of the top priorities in California and has been heightened further by the
COVID-19 impacts (distance learning, remote work, e-commerce) and raising
awareness of the equity issues associated with the ‘digital divide’. There is not a
significant amount of direct utility involvement in providing high-speed broadband
services, but there is some momentum. A key question; is how to leverage existing
assets to enable services either directly or through partnerships. Acknowledgement
that, while this is a major need, there are significant risks and unknowns (technology
evolution, regulatory changes, and competitive environment) so mitigating financial
exposure to the utility is critical.
In general, the feedback was that utilities should play a role given existing infrastructure,
resources, and community relationships. However, this market is discretionary for
traditional utility customers and any initiative must consider the embedded telecoms and
likely aggressive responses. Collaboration and partnerships were deemed important
with the need to consider all models (public-public, public-private, enabling private, etc.).
This is an area where State/Federal funding may become more available in the future.
Benchmarking: Local, clean power generation:
“Almost all local generation is not dispatchable and has low value to the utility.” UAMPS
There are many examples of utilities pursuing local, clean power generation in response
to community demand. However, the typically increased costs need to be balanced
against local benefit and equity issues. When the motivation is for renewable
resources, community solar and other opt-in options are deemed most equitable. For
local generation to have benefits to system reliability and redundancy, it has to be
strategically designed, located, and typically needs to be paired with storage if from an
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intermittent resource. All of this could dramatically increase the costs of local
generation and needs to be balanced against overall cost-effective Greenhouse Gas
(GHG) reduction opportunities and other ways to address community resiliency needs.
In general, one main barrier to local, clean generation is the ability to procure clean
generation elsewhere for a fraction of the costs. There needs to be education regarding
the benefits of local generation to electric system reliability and the performance (and
limitations) of local generation as redundancy. Issues of identifying the community need
and prioritizing resources were discussed in depth. This is a hard issue to tackle at the
local level but, given emerging issues in California regarding electric resource adequacy
and overall grid reliability (driven by PG&E’s wildfire PSPS outages), there is a
developing desire for more local solutions.
Benchmarking: 100% renewable electricity:
“It’s much harder to be 100% renewable than it is to be 100% carbon-free.” CMUA
The electric utility industry is keenly aware of past renewable mandates and the current
California mandate for 100% clean/carbon-free. They are also aware that the mandates
in California for 100% has yet to be fully defined in-terms of eligible resources but the
first 60% needs to be renewable and the last 40% needs to be clean/carbon-free.
There was also agreement that California’s overall goals are based on Greenhouse Gas
(GHG) impacts and electric utility reductions need to be considered in the context of the
State’s overall GHG reductions and impacts to the much larger transportation and
industrial sectors along with heating/cooling.
In general, the feedback that any initiative to achieve 100% prior to the State mandates
should be weighed against over cost-effective GHG reduction opportunities.
Furthermore, making large investments prior to a State or Federal definition of
clean/carbon-free is risky and could have negative impacts on costs/rates which would
have a further negative impact on electrification/fuel-switching which is also a major
component of the State’s overall GHG reduction strategy. While achieving 100% early
can have some benefits and address a community need, there needs to be a clear
understanding of what 100% means and an accounting of impacts to rates, reliability,
and achieving State and Federal policy objectives.
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Truckee Donner Public Utility District Innovation: Board of Director Initiatives
During the Painting the Landscape process, the Truckee Donner Public Utility District
Board of Directors participated in workshops that focused on innovative ideas. At the
core, innovation is doing something differently from everyone else operating in your
space. It differentiates the Truckee Donner Public Utility District in the community’s
eyes.
The Board identified four initiatives that would achieve this objective. Board initiatives
are Board initiated, validated as relevant and important to the community and usually
are not included in the budget. They do not have revenue streams.
Through the community focus group process, the Board Initiatives were prioritized. The
prioritized initiatives are:
1. Undergrounding of Overhead Power Lines
2. High Speed Broadband
3. 100% Clean Renewable
4. Local Clean Power Generation-solar, hydro or biomass energy
General Manager Task Forces were formed that included community leaders. The Task
Forces have each met several times to establish each task force initial project scope
and goals that focus on the next six months of opportunities.
The summaries of each Task Force meetings are below:
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With the adoption of the Strategic Plan and Board Initiatives, the Truckee Donner Public
Utility District will build upon the work already accomplished by the General Manager
Task Force Groups and the identification of preliminary scope and goals. The Truckee
Donner Public Utility District will begin by conducting a series of workshops on each of
the initiatives to identify and allocate initial funding and budgets, set parameters for
project timelines, establish partnerships and consider the establishment of Board action
committees.
The next phases for each of these initiatives will be development of structure, scope,
and funding. While the initial General Manager Task Forces were assembled to quickly
identify key resources and stakeholders, the community engagement moving forward
will be much broader in terms of needs assessments, identification of critical resources,
and key stakeholders for eventual project development.
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Organization Financial Overview
The Truckee Donner Public Utility District’s financial position includes $194M in assets
and $63M in net position. The Truckee Donner Public Utility District’s $44M operating
revenue budget is comprised of $30M electric utility and $14M water utility. Reserves
total $30M (electric $25M and water $5M), with electric’s balance at 91% of policy goal,
while water’s balance is only 63% of policy goal. Water’s recent rate increases for 2021
and forward enable the potential to improve reserve balances over time.
The electric utility has $0.6M in annual debt service obligation, requiring 2% of operating
revenues. The water utility has $3M in annual debt service and for 2020 had a coverage
ratio of 2.72 (bond requirement is 1.25 minimum). The water utility’s debt service
obligation in 2020 was 23% of operating revenues. At water utility’s current debt levels,
debt service obligation forecast for 2021 and 2022 is 21% and 13% respectively, when
factoring approved/planned water rate increases.
For the Truckee Donner Public Utility District overall, with only $22M in long-term debt,
this equates to a low 16% debt to capital asset ratio. The Truckee Donner Public Utility
District has a low level of debt in the near term horizon and has the capacity to finance a
portion of the capital improvements plan, as applicable and appropriate, to fund large
capital improvements with long-term useful life and benefit to customers.
The Truckee Donner Public Utility District net pension liability of $14M includes a
CalPERS imputed cost charge of 7%, which accordingly presents a potential cost
savings opportunity by utilizing Pension Obligation Bonds at approximately 4.5% to pay
down the Unfunded Actuarial Liability (UAL).
Any new debt issuance(s) shall comply with applicable Truckee Donner Public Utility
District Code, which currently includes no more than 25% of revenues committed to
debt service and a maximum 30 year term. Attachment A, provides summary
information of the District’s sources and uses of funds.
The Truckee Donner Public Utility District prepares a bi-annual budget with the next
cycle occurring in fall of 2021 for the budget years 2022 and 2023. The budget includes
a 10-year financial forecast, this cycle 2022-2031. This budget balancing effort will
include the strategic plan initiative drivers, as well as, forecasted revenue and cost
growth factors.
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Acknowledgments
A special thank you to the Truckee Community for participating in the first Truckee
Donner Public Utility’s Strategic Plan. This Plan would not exists. Without the
community as a whole and all those who attended and gave input. The Board of
Directors; President Christa Finn, Vice President Tony Laliotis; Director Jeff Bender,
Director Joe Aguera, and Director Kim Harris, for the tireless efforts, support, and
presence throughout the last ten months of leadership to get to this point. To the
Executive Leaderships Team; Joe Horvath, Shanna Kuhlemier, Trey Griffin, Steven
Poncelet, Jillian Steward, and Mike Salmon, and all the amazing District employees for
crafting a document that provides a road map for future District success. Last, but not
least, a heartfelt appreciation to Pam Hobday, Pamela Hurt Associates, for creating this
amazing innovative process, keeping us on track, and helping build our future.
Thank you to everyone for your continued public service to this great community.
Humbly yours, Brian C. Wright, General Manager
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Appendixes
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Appendix A - Key Financial Information- Ratio & Trends
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Appendix B – Audited Financial Reports 2020
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Appendix C - Financial Master Plan – October 2019
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Appendix D - 2020 & 2021 Budget
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Appendix E - Community Survey Results
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Appendix F – Focus Group Data Results