AWWU Strategic Plan2014 Background Information for Planning June 4, 2014
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?
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
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
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
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
The Core Purpose of the Utility is to: Protect Public Health and the Environment Infrastructure Finances Employees
Reliable Infrastructure is the backbone of Utility Operations
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
Replacement needs vary by material type. Water Pipe Break Rate (Breaks/Mile/Year)
Our updated risk analysis has pushed Nessie off a bit. 2011 Estimates 2012 Estimates 50-year projection of water pipe replacement costs
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)
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
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
Responsible financial management requires a long-term view of balancing rates and revenue, against expenses, including debt.
Professional service requires having the right people to do the right thing.
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.
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
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
Customers are choosing a variety of methods for accessing their account.
As a public entity we are subject to scrutiny. Protect Public Health and the Environment People Infrastructure Finances
CLEARLY, we need transparency with the public. Protect Public Health and the Environment People Infrastructure Finances
The Mayor’s program of reporting metrics to the public has helped us focus on Performance / Value / Results(PVR).
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.
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.