AWWU Strategic PlanAWWU Strategic Plan20142014

Planning for Board Involvement Planning for Board Involvement May 7, 2014May 7, 2014

The AWWU Board is tasked with The AWWU Board is tasked with overseeing the development of overseeing the development of the Utility’s Strategic Planthe Utility’s Strategic Plan

l What will our business look like 15 years What will our business look like 15 years from now? from now?

l How can we assure the sustainable future How can we assure the sustainable future of water and wastewater service?of water and wastewater service?

l What will benefit our owner’s interest?What will benefit our owner’s interest?

Our Strategic Planning Process Our Strategic Planning Process is cyclical over a two year life.is cyclical over a two year life.

6) Evaluate and Celebrate!

1) Vision, Mission,Values

3) Goals

4) Achievements

5) Measurements

2) SWOT

2-year Strategic Plan Cycle

Long- term

Strategic Direction

Strategic Initiatives

Board Direction

6) Evaluate and Celebrate!

1) Confirm

Vision, Mission,Values

3) Goals

4) Achievements

5) Measurements

2) Assess current conditions (SWOT)

2-year Strategic Plan Cycle

We incorporate long We incorporate long term direction from the term direction from the AWWU Board in the AWWU Board in the planning effort.planning effort.

We assess current conditions: We assess current conditions:

Within AWWU:Within AWWU: And Externally:And Externally:

StrengthsStrengths OpportunitiesOpportunities

ThreatsThreatsWeaknessesWeaknesses

AWWU Mission Statement AWWU Mission Statement defines what we do.defines what we do.

Supporting the public health, safety, and economic Supporting the public health, safety, and economic interests of the community by providing quality interests of the community by providing quality water and wastewater services in a responsible, water and wastewater services in a responsible,

efficient, and sustainable manner.efficient, and sustainable manner.

EXCELLENCE THROUGH INNOVATION

Respect Respect

SafetySafety

TeamworkTeamwork

Continuous Improvement Continuous Improvement

Integrity Integrity

ProfessionalismProfessionalism

HumorHumor

Core values reflect our style of Core values reflect our style of doing business.doing business.

EXCELLENCE THROUGH INNOVATION

AWWU’s strategy is AWWU’s strategy is multidimensional.multidimensional.

ServiceService to Our Customersto Our Customers

Goal: To Be a Leader in Providing Goal: To Be a Leader in Providing Exceptional Customer Service.Exceptional Customer Service.

Definition: Be responsive to customer needs through respect, Definition: Be responsive to customer needs through respect, understanding, empathy, and knowledge of our services.understanding, empathy, and knowledge of our services.

StewardshipStewardship of the Environment and Public Healthof the Environment and Public Health

Goal: To Protect Public Health and Be Goal: To Protect Public Health and Be Environmentally Responsible.Environmentally Responsible.

Definition: Provide safe high quality drinking water to our community Definition: Provide safe high quality drinking water to our community and provide safe wastewater discharges while enhancing efficiency and provide safe wastewater discharges while enhancing efficiency and environmental stewardship.and environmental stewardship.

SustainabilitySustainability of Utility Resources and Servicesof Utility Resources and Services

Goal: Provide a return to our owners in an Goal: Provide a return to our owners in an amount and form sufficient to attract and retain amount and form sufficient to attract and retain capital investment necessary to sustain the capital investment necessary to sustain the long-term financial health of the Utility.long-term financial health of the Utility.

Definition:Definition: Return to owners can be provided in the form of a cash Return to owners can be provided in the form of a cash dividend paid directly to the owners or through retained earnings used to dividend paid directly to the owners or through retained earnings used to enhance the value of owners’ equity. Long term financial health involves enhance the value of owners’ equity. Long term financial health involves providing resources to sustain operations and support new initiatives that providing resources to sustain operations and support new initiatives that increase value to our customers and owner.increase value to our customers and owner.

Safety and SatisfactionSafety and Satisfaction of our peopleof our people

Goal: To Be an Employer of Choice and Goal: To Be an Employer of Choice and Create a Desirable Place to Work.Create a Desirable Place to Work.

Definition: Create a work atmosphere where individuals Definition: Create a work atmosphere where individuals desire to work and a workplace promoting professional desire to work and a workplace promoting professional development and personal growth.development and personal growth.

Synergy Synergy in Our Businessin Our Business

Goal: To Optimize and Integrate Business Goal: To Optimize and Integrate Business Practices to Promote Utility Sustainability.Practices to Promote Utility Sustainability.

Definition: Maximize use of existing technologies and Definition: Maximize use of existing technologies and optimized data entry by fully integrating IT applications. optimized data entry by fully integrating IT applications. Expand applicability, accessibility, and employee Expand applicability, accessibility, and employee knowledge of operational information. Pursue sustainability knowledge of operational information. Pursue sustainability by improving the maintenance, operation, and reliability of by improving the maintenance, operation, and reliability of the system. Leverage technology while stabilizing the system. Leverage technology while stabilizing expenses at reasonable rates.expenses at reasonable rates.

The Board provided Strategic The Board provided Strategic Direction from a 2010 retreatDirection from a 2010 retreat

1.1. Maximize Utility IndependenceMaximize Utility Independence2.2. Expand Certificated Service AreaExpand Certificated Service Area3.3. Explore formation of a Regional AuthorityExplore formation of a Regional Authority4.4. Explore formation of a Stormwater UtilityExplore formation of a Stormwater Utility5.5. Build recognition of the Quality of AWWU Build recognition of the Quality of AWWU

Products and ServicesProducts and Services6.6. Explore increase of drinking water marketExplore increase of drinking water market7.7. Encourage Infill and RedevelopmentEncourage Infill and Redevelopment8.8. Maintain Strong Asset Management ProgramMaintain Strong Asset Management Program

Long- term

Strategic Direction

Strategic Initiatives

Board Direction

6) Evaluate and Celebrate!

2) Vision, Mission,Values

3) Goals

4) Achievements

5) Measurements

1) SWOT

2-year Strategic Plan Cycle

We need to sync the Utility’s We need to sync the Utility’s Strat.Plan with the Board’s Strat.Plan with the Board’s Long-term DirectionLong-term Direction

Next Steps in Strategic PlanningNext Steps in Strategic Planning

Late May: Engage FacilitatorLate May: Engage Facilitator

June 4: Board considers Long-Term Initiatives June 4: Board considers Long-Term Initiatives

July 2: Board considers Goals and AchievementsJuly 2: Board considers Goals and Achievements

August 6: Board approves Plan for Budget PrepAugust 6: Board approves Plan for Budget Prep

September 3: Board recommends 2015 Budget to MayorSeptember 3: Board recommends 2015 Budget to Mayor

1) Maximize utility independence 1) Maximize utility independence by fully implementing authority of Title 31.by fully implementing authority of Title 31.

Complete remaining steps:Complete remaining steps:– Personnel rulesPersonnel rules– Contract legal servicesContract legal services– ERP SystemERP System

Review Title 31 for Recommended modificationsReview Title 31 for Recommended modifications

Identify impediments to complete Identify impediments to complete implementationimplementation

Prioritize removal of impedimentsPrioritize removal of impediments

Establish intermediate objectivesEstablish intermediate objectives

2) Expand certificated areas of 2) Expand certificated areas of serviceservice

Identify candidate developing areas for Identify candidate developing areas for most likely AWWU infrastructure needs.most likely AWWU infrastructure needs.

Identify policy conflicts – i.e., only go Identify policy conflicts – i.e., only go where invited – follow land use planningwhere invited – follow land use planning

Identify and contact affected Community Identify and contact affected Community Councils to explain process Councils to explain process

Keep Administration apprisedKeep Administration apprised

3) Explore basis of support to 3) Explore basis of support to form a regional authority.form a regional authority.

Develop alternative development scenariosDevelop alternative development scenarios

Identify critical infrastructure shortcomingsIdentify critical infrastructure shortcomings

Explore regulatory implicationsExplore regulatory implications

Document costs and benefitsDocument costs and benefits

Prepare white paper on potential expansionPrepare white paper on potential expansion

Brief mayor on the advantages / disadvantagesBrief mayor on the advantages / disadvantages

Set up briefing for leaders of prospective partner Set up briefing for leaders of prospective partner communitiescommunities

4) Explore formation of a 4) Explore formation of a Stormwater Utility Stormwater Utility within AWWUwithin AWWU

to assume current stormwater utility functions within the MOAto assume current stormwater utility functions within the MOA

Develop alternative development scenariosDevelop alternative development scenariosExplore regulatory implicationsExplore regulatory implicationsIdentify critical infrastructure shortcomingsIdentify critical infrastructure shortcomingsIdentify prospective rates and billing systemIdentify prospective rates and billing systemPrepare white paper on stormwater utility Prepare white paper on stormwater utility administrationadministrationOutline pilot projectOutline pilot projectBrief mayor on the advantages / disadvantagesBrief mayor on the advantages / disadvantagesSet up briefing for Assembly worksession Set up briefing for Assembly worksession

5) Build greater recognition of the 5) Build greater recognition of the quality of AWWU drinking water quality of AWWU drinking water

(products and services)(products and services)

Build Marketing/ Communications PlanBuild Marketing/ Communications Plan1.1. Survey customer attitudes and perceptions Survey customer attitudes and perceptions

of AWWU products and service.of AWWU products and service.(aka Assess current conditions)(aka Assess current conditions)

2.2. Establish goals for public communicationEstablish goals for public communication

3.3. Identify target audience(s)Identify target audience(s)

4.4. Match message / media / audienceMatch message / media / audience

5.5. Produce and distribute the messageProduce and distribute the message

6.6. Resurvey to determine progress.Resurvey to determine progress.

6) Explore potential of increasing 6) Explore potential of increasing AWWU drinking water marketAWWU drinking water market

Identify prospective users – Export, Identify prospective users – Export, manufacturing, manufacturing,

Communicate opportunities to AEDCCommunicate opportunities to AEDC

Complete review of independent and Complete review of independent and consecutive connected systemsconsecutive connected systems

See Expansion of service area (SI#3)See Expansion of service area (SI#3)

7) Work with and/or partner with 7) Work with and/or partner with MOA and other stakeholders to MOA and other stakeholders to

create and/or participate in processes create and/or participate in processes that will encourage residential, that will encourage residential, commercial, and/or industrial commercial, and/or industrial

infill and redevelopment infill and redevelopment within the current service area.within the current service area.

In other words…In other words…

7) Encourage residential, commercial, 7) Encourage residential, commercial, and/or industrial infill and and/or industrial infill and

redevelopment redevelopment Map locations of non-conforming systems.Map locations of non-conforming systems.Map underdeveloped properties with AWWU service.Map underdeveloped properties with AWWU service.Educate property owners/redevelopers on the requirements for upgrading non-Educate property owners/redevelopers on the requirements for upgrading non-conforming systems. (Water service / I&I)conforming systems. (Water service / I&I)Identify drainage areas within service area not yet identified for sewerage (e.g, Identify drainage areas within service area not yet identified for sewerage (e.g, lower Hillside, ER)lower Hillside, ER)Actively assist in planning redevelopment of Kulis and Airport/Port/ARR.Actively assist in planning redevelopment of Kulis and Airport/Port/ARR.Consider technical support to potential HLB / Mental Health development plansConsider technical support to potential HLB / Mental Health development plansIdentify opportunities from review of records of existing connectionsIdentify opportunities from review of records of existing connectionsFoster relationships with builder community to improve development design Foster relationships with builder community to improve development design practicespractices

8) Maintain a strong asset 8) Maintain a strong asset management system. management system.

Incorporate Business Case Analysis in Incorporate Business Case Analysis in CIP/CIB development.CIP/CIB development.

Develop maintenance strategies for Develop maintenance strategies for optimized reliability.optimized reliability.

Develop utility-wide risk framework.Develop utility-wide risk framework.

Optimize condition assessment Optimize condition assessment programprogram

Develop energy optimization strategy Develop energy optimization strategy

Achievements Supporting Strategic InitiativesAchievements Supporting Strategic Initiatives

ServiceService– Develop maintenance strategies for optimized reliability. (8)Develop maintenance strategies for optimized reliability. (8)– Map underdeveloped properties with existing AWWU service.(7)Map underdeveloped properties with existing AWWU service.(7)– Actively assist in planning redevelopment of Kulis / Airport / Port / ARR / HLB / Mental Actively assist in planning redevelopment of Kulis / Airport / Port / ARR / HLB / Mental

Health development (7)Health development (7)– Communicate Development opportunities to AEDC (6)Communicate Development opportunities to AEDC (6)

SustainabilitySustainability– Incorporate Business Case Analysis in CIP/CIB development (8)Incorporate Business Case Analysis in CIP/CIB development (8)– Optimize condition assessment program (8)Optimize condition assessment program (8)– Build and Implement Marketing/ Communications Plan (5)Build and Implement Marketing/ Communications Plan (5)– Prepare White Paper on Regional Authority Concept (3)Prepare White Paper on Regional Authority Concept (3)– Complete Transfer of ERP function (1)Complete Transfer of ERP function (1)

SynergySynergy– Develop utility-wide risk framework.(8)Develop utility-wide risk framework.(8)

StewardshipStewardship– Develop energy optimization strategy (8)Develop energy optimization strategy (8)– Build and Implement Marketing/ Communications Plan (5)Build and Implement Marketing/ Communications Plan (5)– Prepare White Paper on Stormwater utility administration (4)Prepare White Paper on Stormwater utility administration (4)

Safety and SatisfactionSafety and Satisfaction– Complete transfer of personnel administration (1)Complete transfer of personnel administration (1)