AWWU Strategic Plan 2014 - PowerPoint PPT Presentation

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AWWU Strategic Plan 2014

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  1. AWWU Strategic Plan2014 Background Information for Planning June 4, 2014

  2. The AWWU Board is tasked with overseeing the development of the Utility’s Strategic Plan • What will our business look like 15 years from now? • How can we assure the sustainable future of water and wastewater service? • What will benefit our owner’s interest?

  3. Our Strategic Planning Process is cyclical over a two year life. 2) SWOT 1) Vision, Mission, Values 3) Goals 2-year Strategic Plan Cycle 4) Achievements 6) Evaluate and Celebrate! 5) Measurements

  4. Board Direction Strategic Initiatives Long- term Strategic Direction We need to sync the Utility’s Strat.Plan with the Board’s Long-term Direction 2) Vision, Mission, Values 3) Goals 1) SWOT 2-year Strategic Plan Cycle 4) Achievements 6) Evaluate and Celebrate! 5) Measurements

  5. The Board provided Strategic Direction from a 2010 retreat • Maximize Utility Independence • Expand Certificated Service Area • Explore formation of a Regional Authority • Explore formation of a Stormwater Utility • Build recognition of the Quality of AWWU Products and Services • Explore increase of drinking water market • Encourage Infill and Redevelopment • Maintain Strong Asset Management Program

  6. We are embracing the industry-wide elements of Effective Utility Management 1. Product Quality 2. Customer Satisfaction 3. Employee and Leadership Development 4. Operational Optimization 5. Financial Viability 6. Infrastructure Stability 7. Operational Resilience 8. Community Sustainability 9. Water Resource Adequacy 10. Stakeholder Understanding and Support

  7. The Core Purpose of the Utility is to: Protect Public Health and the Environment Infrastructure Finances Employees

  8. Reliable Infrastructure is the backbone of Utility Operations

  9. We have a fortune in buried treasure. • 1600 miles of u/g pipeline 4” to 78” dia. • 3 wastewater facilities • 2 surface water treatment plants • 14 active wells, 22 water reservoirs • 34 Booster stations, 7200 fire hydrants • 38 WW pump/lift stations • 2 septage receiving stations • 17,000 pieces of rotating equipment • Total book value: > $800 million • Replacement value: nearly $8 Billion

  10. Looking at our history helps plan for our future.

  11. Historic practices lead to current replacement needs.

  12. Replacement needs vary by material type. Water Pipe Break Rate (Breaks/Mile/Year)

  13. Our tolerance for risk allows us to refine service life of assets.

  14. Our updated risk analysis has pushed Nessie off a bit. 2011 Estimates 2012 Estimates 50-year projection of water pipe replacement costs

  15. Current capital funding makes for a very long cycle for replacements. Water 6,200 LF/yr 0.14%/yr (711 yr cycle) Sewer 6,190 LF/ yr 0.15%/yr(666 yr cycle)

  16. Will service area expansion pay its own way? • SpenardHts – NO • South Central Utilities – YES • Kulis Air Guard base – YES • C Street Private Development – YES • Cleaning up uncertain boundaries • Service High • ML&P • Alaska Railroad • Barrow, S St. projects • Airport Land Trade

  17. Today, Utility operations are highly integrated with information technology • 140 different software systems in use • 2/3 Primary systems (e.g., billing) • 1/3 Subsidiary (e.g., cash management) • Over 600 computers, servers, and other devices • Mobile devices are the trend • In everyday life • In Utility operations

  18. Security of information systems is an increasing concern

  19. Responsible financial management requires a long-term view of balancing rates and revenue, against expenses, including debt.

  20. Our last LRFP projected continuing rate increases.

  21. We are working toward increasing our operating margin.

  22. We have an obligation to cover our debt service.

  23. We see more revenue going toward debt service.

  24. Replacement needs will drive up debt burden as % of assets.

  25. Even as we move toward more equity funding of improvements.

  26. We will strive for a consistent debt/equity ratio over time. % Debt

  27. Professional service requires having the right people to do the right thing.

  28. The median age of Utility staff is greater than 45 years.

  29. Staff turnover has been epidemic. • General Manager appointed in 2013 • 40% of Executive Leadership Team • Top tier Managers: • 4 Supers in Treatment Division • 3 in O&M • 5 Managers and Supervisors in Customer Svc • 2 New managers and a whole new team in IT • 7 retirees – 2 months – 200 yrs experience.

  30. The composition of Utility staff is changing.

  31. Recruiting and hiring is a significant challenge.

  32. We regard Unions as partners in developing our staff. • AMEA (currently 67 employees) • Plumbers & Pipefitters, Local 367 (120) • Contracts line out grievance procedures • Since 2006: 17 grievances • All but 2 were pay issues • 3-year contracts recently negotiated • Both contracts approved by Assembly

  33. Integration with General Govt continues. • Purchasing • HR Functions • Cumbersome bureaucracy • Resource limitations • Frustrating for Utility customers • Effective at reducing labor costs • Synergy Project – Over $1M in Utility labor • GIS Center of Excellence

  34. Staff shortages affect customer interactions.

  35. Calls ramp up as summer approaches.

  36. Customers are choosing a variety of methods for accessing their account.

  37. As a public entity we are subject to scrutiny. Protect Public Health and the Environment People Infrastructure Finances

  38. CLEARLY, we need transparency with the public. Protect Public Health and the Environment People Infrastructure Finances

  39. The Mayor’s program of reporting metrics to the public has helped us focus on Performance / Value / Results(PVR).

  40. Many customers still don’t understandour business.

  41. Social media (like Twitter) can enhance Outreach.

  42. We are also using direct mail to targeted customer groups.

  43. We continue to work on our message: AWWU is investing to ensure reliable service and safeguard public health and the environment, long into the future.

  44. We seek to undescore transparency with the public: Clearly Committed to Public Health and the Environment. Clearly Reliable Infrastructure. Clearly Responsible Finances. Clearly Professional Service.

  45. Clearly