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HomeMy WebLinkAbout10 2002 Strategic Plan Agenda Item # , Memorandum To: Board of Directors From: Peter Holzmeister Date: December 14, 2001 Subject: Strategic Plan for 2002 You will recall that the Board of Directors and management staff participated is a strategic planning workshop facilitated by Bob Rauch in August of this year. The final notes of that meeting have never been prepared and submitted to the Board, until this meeting. Attached is a document entitled Strategic Plan for 2002, prepared from the notes Bob Rauch made at the meeting, plus notes prepared by staff relating to those issues that were not completed the evening of the workshop. The workshop has become one of the most effective tools we have developed for reviewing the District operations and setting goals and priorities. Each time we participate in these workshops we come away with a clearly defined work plan for the coming year. The work plan forms the basis for the budget. Since we are now reviewing the budget for 2002, we really should be looking at the Strategic Plan notes to make remind ourselves of the issues that emerged from the workshop. RECOMMENDATION: I recommend that the Board adopt the Strategic Plan for 2002. TRUCKEE DONNER PUBLIC UTILITY DISTRICT STRATEGIC PLAN FOR 2002 From the Board Workshop Held on August 29, 2001 A. Issues confronting the District 1. Process for assigning priorities 2. Financial master plan 3. Power supply cost mitigation 4. Move broadband forward 5. Increase water supply 6. Electric master plan 7. Review or organizational structure-what it takes to do an excellent job 8. Water master plan implementation 9. Headquarters building plan 10. Address staffing shortage 11. Establish safe sustainable yield 12. Williams conduit ownership and lease or sell 13. Effects of economic situation on District customers (and on us) 14. Accomplishing/integrating new service areas into District operations -water, electric, broadband 15, Mid-course reviews of District goals 16. Effects of changing water utilization 17. Joint planning with PCWA for basin 18. Current water system maintenance/upgrade/replacement (Tahoe Donner) 19. Maintain high standard of customer service 20. Corporation yard plan 21. Customer communications 22. Long term technology plan (integrate internal systems) B. Critical issues to address Issue 1. Water 1. Increase water supply 2. Implementing the water master plan 3. Establishing safe, sustainable yield of basin 4. Changing water utilization 5. Joint planning with PCWA on Basin 6. Truckee water system maintenance, upgrade, replacement Issue 2. Financial master plan 1. Need a financial master plan Issue 3. Human resource management 1. Prioritize staff priorities for GIS 2. Current staff shortage 3. Review organizational structure (continue excellence) 4. Maintain high customer service standard 5. Customer communications Issue 4. Facilities 1. Headquarters plan 2. Corporate yard Issue 5. Broadband 1. Williams conduit ownership 2. Keep broadband plan moving along Issue 6. Growth 1. Integrating all service areas—water, electric, broadband 2. Effects of economic situation 3. Technology plan Issue 7. Electric 1. Electric master plan 2. Power supply cost mitigation Issue 8. Mid-course review 1. Of annual plan C. Action Plan Issue 1. Water 1.1. Increase water supply Issue: Need more wells, at least one more by spring of 2002. If we don't act soon we can run out of water. Requires firm well sites and agreements already available. Current water master plan is general, need to develop sites, explore environmental issues, etc. Note: Basin is shared with PCWA. Must have firm agreements about basin management with PCWA and other basin users. Action: Develop a relatively long-term well drilling program that proactively meets community needs. Includes advance site selection, environmental documentation, permits, agreements, facility definition, etc. Must include controlling agreement with PCWA, who have established conditions for serving in Placer County. In short, a way to coexist in basin with us PCWA, Northstar and others Who: Water Manager, consulting hydrogeologist, attorneys When: Spring, 2002 Note: Being proactive in developing wells must be in line with our basic function, which is to reliably provide a water supply to meet community needs. (Some may see this as growth inducing) Action: Attorney hold a workshop with Board on (1) the requirements of CEQA, (2) the issue of growth inducing, (3) other critical guidelines for the Board contained in law 1.2.Implementing the water master plan Issue: the District adopted a water master plan in 2001. We want to make sure this valuable document does not simply sit on a shelf gathering dust; it is an important guide for us to follow. Any water system project that we construct should follow the master plan Action: When staff prepares the annual budget or works with a developer the master plan should be consulted to make sure we are expanding our system appropriately. Who: Water System Manager and District Engineer When: Ongoing 1.3. Establishing safe, sustainable yield of basin Issue: Determination of quantity of water available for consumption and the impacts of the withdrawal of water from the basin. Determine management practices that maximize water availability. Action: Apply for a grant to fund a study, which will include monitoring and development of a three-dimensional basin model of the entire Martis Valley basin. The model will establish the water availability from the basin and identify the impacts of water withdrawals. Who: Water System Manager will be the team leader, and the team will include District consultants, in cooperation with other basin water purveyors. When: Study will begin summer of 2002 and will take at least two years to complete. 1.4. Changing water utilization Issue: Houses now being built with large landscapes, many bathrooms, etc. Peak use increasing. Result is more water use per household/per connection. This can drive our water use to an excess that can't meet. We do not use meters. Peak use determines size of the system, partly driven by part-time users. Can charge a fixed rate to cover fixed charges, and a variable rate for actual water use. Action: Hold a Board discussion on water use, meters, conservation, equitable rates, customer education on landscaping, etc. Who: GM When: April 2002 1.5 Joint planning with PCWA on Basin Issue: The District shares the Martis Valley water basin with PCWA and Northstar Community Services District. We will need to cooperate on basin management practices in order to make sure the quality of the basin in not compromised and to avoid disputes over water availability. Action: Prepare a basin management plan jointly and adopt procedures for management of the basin Who: Water system manager, hydrogeologist and staffs of PCWA and Northstar CSD When: A Phase 1 study should be prepared by the fourth quarter of 2002 1.6.Truckee water system maintenance, upgrade, replacement Issue: The District's water system continues to be used heavily and is growing older. Maintenance and replacement of this system will be expensive, and will become more so as time goes on. We need to be able to predict when major components need to be replaced, and develop the appropriate funding source. A system facilities maintenance and replacement master plan needs to be prepared. Action: Prepare a water system maintenance and replacement master plan Who: Water System Manager When: By first quarter of 2003 Issue 2. Financial master plan 2.1.Need a financial master plan Issue: We need immediate cash, especially for Donner Lake. Ultimately need one or more loans to cover other needs. Our cash position has been reduced to a low figure. Revenues must be sufficient to repay loans. Revenues from rates and fees. Action: Contact auditors and others to define the outside help we need. Prepare a statement of work. Issue a request for qualifications. Develop with consultant to develop a financial master plan. Bring to the Board. Who: Mary When: Kickoff program with consultant in December 2001. Present to Board at that time with consultant Issue 3. Human resource management 3.1. Prioritize staff priorities for GIS Issue: Some internal things need to be done. Support needed for water— locations, assessment district, land maps. Everyone is requesting and will request more in the future —GIS support Action: This is a staff issue. Helpful if each manager makes GIS requests, establishing size of job, schedule needed, and relative importance— and brings to staff meeting. Staff must set priorities and, if needed, request additional resources Use cost benefit as measuring stick Note: GIS, fully utilized, can make District more cost effective Who: AGM, Staff, GIS When: ASAP 3.2. Current staff shortage Issue: Urgent staff shortages exist now, although broad needs exist long-term New water service areas have immediate needs: one accountant, three field technicians, two clerical (water and finance), 1 management level Action: Staff will bring these needs to the Board along with justification Who: general manager When: September 2001 3.3. Review organizational structure (continue excellence) Issue: What will it take to continue to do things competently? Need more people, but good people. We are moving at full tilt. We may not always be able to maintain standards if we keep like this. Engineering, accounting, construction, repair. We have needs beyond our ability to meet them with excellence. We are short-handed. Maya be helpful the establish performance standards. Burn-out and minimal standards are not what we want at this District. Action: GM and staff will meet to flush out staffing needs and problems. Will seek to assure that adequate standards are met. Will then bring recommendation to Board for review and possible action Who: GM and senior staff When: Late fall 2001 3.4. Maintain high customer service standard Issue: As the District operations grew and we tried to serve the public without increasing staff, our ability to respond to customer requests suffered. We were slow -7 to return phone calls. We were slower to perform fieldwork requested by customers. We have not provided customers with the most convenient processes to establish and account with us (apply by phone, deposit requirements) and pay their bills (they are asking for credit card or ATM payments). Our interaction with customers has become hurried, when patience would be more appreciated. Action: We need to review all customer contact points and determine a standard for dealing with customers. We need to utilize application and payment methods that are customarily used in other commercial activities, that mirror what the customer is a is accustomed to experiencing. A recommendation will be presented to the Board Who: The Assistant General Manager will head a committee that includes Mary Chapman and Ed Taylor and one member from Administrative Services department and one member from the Water Operations department. When: A report will be presented to the Board by July 1, 2002 3.5. Customer communications Issue: In the past we exerted considerable effort to inform our customers about who we are, what we do, what they should do. More recently legal dispute occurred and we were off local TV. Must resume putting our message out. In 2002 we celebrate our 75th anniversary. We can use this as a springboard. Action: Develop a customer communications plan. Include newsletters, website, other media. Bring to Board for review and action; Who: Staff and Board When: January 2002 Issue 4. Facilities 4.1. Headquarters plan Issue: The Town of Truckee has moved out and other agencies are interested in the vacated space. The District is growing, we recently acquired the Donner Lake water system and there is discussion and movement in the acquisition of Glenshire Mutual Water Company, The District is also considering going into the Telecommunications business. The needs of the District should be evaluated to determine what and how much space is required for our own needs. Action: Evaluate the current needs of space, to look at a "footprint" of the space that is required for telecommunications equipment and to look at the personnel that will needed for telecommunications, any new staff the water department might need and the same with the Administrative Services (Mary's department). Who: Support Services Manager When: June 2002 4.2. Corporate Yard Issue: The District is currently storing material, vehicles and equipment at multiple locations due to lack of space at the District office. With the acquisition of Donner Lake Water system, potential going into the telecommunications business and acquiring the Glenshire water system, this problem will only become worse. Action: To sell surplus District property and to meet with the Department heads of water, electric, telecommunications and find out what new equipment, material and vehicles will be required. To put all the ideas and requirements into one corporate yard. Who: Support Services Manager When: August 2002 Issue 5. Broadband 5.1 Williams conduit ownership Issue: In September 1999, the District entered into an Agreement with Williams Communications, a long haul telecommunications firm, to assist in the permitting of that portion of their Salt Lake to Sacramento conduit run that fell within the District's service area. In exchange for the District's help, Williams Communications agreed to provide the District with two 2" conduits following a sixteen and one half-mile route from Hirschdale to Donner Lake. Action: Following the installation, mapping and testing of conduit District staff will enter into and Agreement with Williams Communications, signing off on the completed Project and accepting ownership of sixteen and one half miles of two 2" conduits and ancillary access points. Who: Telecommunications Manager When: First Quarter, 2002 5.2. Keep broadband plan moving along Issue: The District has, since mid 1999, evaluated the construction of a Broadband infrastructure that would provide Water and Electric business units enhanced SCATA services, and competitive Cable Television and High Speed Date services within the District's service area. As of December 2001 the proposed Broadband business unit has received Nevada County LAFCo's conditional approval, the proposed system Design and Engineering has been completed, District staff have held numerous meetings with perspective system financiers, and the District's Telecommunications Manager has entered into Cable Television Franchise discussions with the Town of Truckee, Nevada and Placer Counties. Action: There are still a number of steps that must be approved by the Board prior to the District formally entering into the provision of Broadband Services. During the first quarter of 2002 the District's Telecommunications Manager will bring forward for Board approval: 1) a final Business Performa including FSG's Engineers Estimate; 2) agreements for the financing of the proposed Broadband infrastructure; 3) a request for authorization to prepare and seek bids for the construction of the proposed Broadband Business Unit; and 4) the awarding of these bids. Who: Telecommunications Manager When: First Quarter, 2002 Issue 6. Growth 6.1. Integrating all service areas —water, electric, broadband Issue: The District has traditionally served water and electricity in the greater Truckee area, but our services have not been exactly coterminous. We are now planning to offer Broadband services. With acquisition of Donner Lake and Glenshire water service territories our service boundaries are becoming more coterminous with each other. We feel that there is good reason to offer our services to all of our customers alike. Action: Work to consolidate the service of our services such that we offer all our services to all our customers by working with other agencies such as Sierra Pacific Power Company, LAFCo and PCWA. Report to the Board by September of 2002 on status Who: General Manager When: September 2002 6.2. Effects of economic situation Issue: There has been a major economic slowdown since early 2000. We are now considered to be in a recession. The unemployment rate has increased. Consumer debt is high and consumer confidence is low. All of this has happened at a time when our District is assuming new challenges in the Community: Donner Lake, Glenshire, power supply, broadband. We need to continuously monitor our organization's financial well-being as we move aggressively to offer services. Action: Review monthly the cash position of the District and predict monthly the future commitments we are making. Who: General manager and District Treasurer, all management staff, and Board of Directors When: Monthly beginning in January 2002 6.3. Technology plan Issue: Some departments are still without the technology required to enhance their abilities and reduce the job time. We need to push more of the technology that we have begun to implement to all departments and enhance existing technology Action: Assistant General Manager and GIS coordinator will develop a plan and submit it to the Board for review and discussion Who: Assistant General manager and GIS Coordinator When: fourth quarter of 2002 Issue 7. Electric 7.1. Electric plan master plan Issue: The current Electric System Master Plan is out of date. As a result, our electric facilities fee schedule is out of date. A draft of a revised plan is essentially complete. It needs to be presented to the Board for review and eventual adoption, along with adoption of a new facilities fee schedule. Action: Present the draft master plan to the Board and recommend a new electric facilities fee schedule. Who: Joe Horvath When: First quarter of 2002 7.2. Power supply cost mitigation Issue: We have a contract to buy power at a fixed rate from 2002 through 2009. We have surplus power that we must sell. We are buying above market and will sell at market, resulting in a loss to us. We have a rate stabilization fund to help cover some of the loss. Action: Mitigate the Idacorp contract. Restructure it. Future swaps. Future generation. Who: AGM When: Ongoing throughout the year. Report to Board periodically Issue 8. Mid-course review 8.1.Periodic review of annual plan Issue: After the strategic plan is adopted unanticipated factors arise that prevent the plan from being fully implemented. A review mid-course process would help keep our work program relevant. Action: Review the strategic plan action items with the Board in July of 2002 Who: General Manager When: July 2002