East Bay Municipal Utility District
2001 Gold Award for Exceptional Utility Performance
The East Bay Municipal Utility District (EBMUD) in Oakland, California, provides water service to 1.3 million customers and wastewater service to 610,000 customers. Despite rising inflation in the greater San Francisco Bay Area, EBMUD has met its strategic goal of keeping water and wastewater rates at or below the rate of inflation. The Capital Improvement Program is prioritized annually, investment is made in new technologies that increase efficiency and effectiveness, and the operating budget is continually reviewed for cost reductions. In 2000, EBMUD bought chemicals, pipe and other commodities through a single contract and entered into multi-year contracts to save over $1.5 million. At the same time, the utility promoted industry-leading programs in water conservation, water recycling, seismic improvement and water quality. EBMUD's 10-year, $189 million Seismic Improvement Program is internationally recognized for its proactive approach to seismic risk assessment and mitigation. At the program's halfway point, more than 200 critical facilities have been upgraded. Commitment to financial stability resulted in bond rating upgrades to AA and AA2, changes that will lower interest payments on new bonds by $5.5 million over 30 years.
El Paso Water Utilities
2001 Gold Award for Exceptional Utility Performance
Continuous process improvement by a workforce focused on quality and customer service is the mainstay at El Paso Water Utilities. In four years, costs have been reduced by re-engineering the organization and enhancing technology. Staff was reduced more than six percent while the customer per employee ratio improved by 14 percent because of rapid growth in the customer base. In addition, human resources were improved with enhanced training efforts, greater employee empowerment and better safety training, and workman's compensation claims were reduced 30 percent. While the utility is rapidly expanding its infrastructure, it has not neglected renovation needs. About $12 million per year is dedicated to renovation projects. The renovation program, combined with an expanded leak detection program, helped reduce unbilled water from 14 percent to 11 percent over the past few years. Because El Paso Water Utilities serves an arid, water-short region, it established an aggressive water conservation program that resulted in a 20 percent reduction in per capita water use since 1990. The Utility continues to be one of the most efficient water systems in the Southwest, whether measured by its low rates, AA3 and AA bond ratings or workforce size.
Greater Cincinnati Water Works
2001 Gold Award for Exceptional Utility Performance
The Greater Cincinnati Water Works (GCWW) is a 162-year-old municipally owned utility serving over 950,000 people in a 400-square-mile area. In 2000, the utility supplied an average day demand of 133 million gallons of water through both surface water and groundwater treatment plants using 2,800 miles of transmission and distribution mains. In addition, as the billing agent for the primary sewer and stormwater utilities in Hamilton County, GCWW operates a multi-utility billing operation of approximately 225,000 accounts. In 1995, a five-year Strategic Business Plan (SBP) was implemented to lead GCWW closer to its vision of being a utility that will serve as a standard for excellence in the water utility industry and will remain extremely competitive. Various strategies in the SBP were designed to allow GCWW to assist the southwest Ohio region grow economically by providing a reliable supply of high-quality water and outstanding services in a financially responsible manner. Results of the most successful strategies include: surveys demonstrating that GCWW customers are extremely pleased with the service received; a review of chemical treatment processes that saved $100,000 annually; utilization of real-time electric pricing that saved over $290,000; reduction of 70 employee positions; and participation in an award-winning groundwater protection program.
Green Bay Water Utility
2001 Gold Award for Exceptional Utility Performance
Since the 1970s, the Green Bay Water Utility has been committed to improving the efficiency and effectiveness of its service through teamwork and participation, a cultural change that impacted all areas &endash; from purchasing through design teams. The utility met increases in customers supplied, customer services offered and mandated programs without the need for an expanded workforce. Water quality was upgraded with the addition of ozonation to the utility's treatment train, main rehabilitation proceeded without the need for rate increases, and GIS will bring real time information to repair crews and customer service personnel. An upgrade of the utility's SCADA system will allow one person to control the entire operation from pumping stations to pressure control vaults. Billing and record-keeping software are also being upgraded to allow for more efficient data handling and a more timely response to customer inquiries.
Kansas City Water Services Department
2001 Gold Award for Exceptional Utility Performance
Kansas City, Missouri Water Services Department (WSD)
- 240 mgd water supply capacity with 2,300 miles of water mains.
- Service population is over 600,000 within the Kansas City metropolitan area.
- Annual budget is $166 million.
- Employment of 970 associates.
Achievement Highlights:
In 1994, the WSD began its competitiveness strategy with a total quality management program entitled Associates Creating Excellence (ACE), which:
Provided the means by which associates were empowered to make process improvements, which resulted in cost savings of $1.4 million.
Chartered 38 process improvement teams.
Created a culture change that served as a fundamental building block to the organizational development and change that resulted from the subsequent Competitive 2001 Program and the current competitive and efficiency improvements underway through the Kansas City Government Optimization (KC-GO) Initiative.
In 1997, the Competitive 2001 Program (C2P) was launched as a result of competitiveness assessments of WSD's Water Supply, Wastewater Treatment and Line Maintenance Divisions which revealed a 19 percent competitive gap.
Goals were to transition from reactive to proactive maintenance, decrease maintenance costs and increase reliability of equipment, realize greater customer and associate satisfaction while becoming competitive with all public and private operations.
Six self-directed work teams (SDWTs) in the Water Supply Division improved productivity and efficiency in the treatment process, communications, and cross-training among operations and maintenance associates. Empowerment of the labor work force through SDWTs improved water quality, reduced overtime and improved working relations between labor and management.
Through the pilot of an O & M high performance work team (HPWT), the Wastewater Treatment Division reorganized its workforce into a HPWT structure, eliminating three reporting layers.
As of July 2000, the WSD's competitive efforts were integrated into the City's KC-GO Initiative, a strategy for becoming more competitive and efficient in the delivery of government services across all City departments. WSD was selected as the "first" major operating Department to undergo competitive review and business plan development because of its organizational readiness. The utility is currently involved in a large-scale competitive business planning process with 51 workgroups consisting of both labor and management working within 11 functional areas to identify continuous improvements that will result in additional cost savings, revenue enhancements and best business practices.
Knoxville Utilities Board
2001 Gold Award for Exceptional Utility Performance
The Knoxville Utilities Board (KUB) provides electric, gas, water and wastewater service to 387,000 customers in East Tennessee. A successful traditional utility since 1939, KUB recognized in 1993 the need to adapt to the rapidly changing environment. KUB began to redefine itself around four corporate objectives: do the basics better; focus on the customer; be environmentally responsible; and serve the community's growth. Reorganization was undertaken along functional lines instead of by separate utility services. Employees focused on finding innovative ways to improve business processes and hold operating costs down through process improvement, re-engineering and organizational development. One innovative tool to improve service and efficiency is KUB's pilot water plant. A working scale model of the main plant, the pilot plant tests treatment processes and technologies for less money, in less time, and without risking the quality of the public water supply. The competitiveness strategy has paid off. KUB's 2002 budget marks the seventh consecutive budget without a rate increase, and operating cost per customer is actually four percent less than 10 years ago. KUB is proud of its efforts to improve service and hold rates down while continuing to maintain the integrity of its systems.
Las Vegas Valley Water District
2001 Gold Award for Exceptional Utility Performance
Las Vegas Valley Water District (LVVWD)
- Largest municipal water purveyor in the state of Nevada serving over 890,000 individuals, plus over 30 million tourists per year.
- 919 employees.
- Annual operating budget exceeding $261 million.
- LVVWD manages a local water system comprised of 35 reservoirs, 44 pumping stations, 2,771 miles of pipeline with a maximum capacity of 600 mgd.
Achievement Highlights:
To meet the demands created by an expanding population, the LVVWD has committed itself to a rigorous and comprehensive program of continuous improvement.
LVVWD's team environment fosters creative and innovative solutions, which are reinforced through employee recognition activities such as the General Manager's Five-Star Award, Leader of the Pack Award, Spotlight on Excellence Program, and other tools. Intra-divisional teams, such as the Maintenance Improvement Team, use technology, flexible work schedules, new processes and organizational strategy as tools to solve preventative and predictive maintenance issues. They are also used to find creative solutions to increase efficiency and enhance service levels.
Cross-functional teams make use of neutral facilitators to guide the team through the process and ensure all participants have an opportunity to contribute. To date, eight American Productivity Quality Center process improvement led teams have implemented recommendations, providing the District with over $5.3 million in net program savings.
The LVVWD also leverages technological advancements to foster improvements in efficiency and customer service. For instance, Meter Services has an Automated Meter Reading (AMR) strategy to improve service to our large Las Vegas strip hotel and casino customers while the Production Division is refining a Computerized Maintenance Management System to centralize coordination between shops, customers and support groups.
The LVVWD engages in benchmarking and simulated competitive exercises to assess competitiveness, set minimum performance and proficiency standards and set stretch goals.
Internal benchmarking for activities unique to LVVWD make use of recent innovations in reliability-centered maintenance, failure mode analysis and continuous time-in-motion studies.
Local residents participate through a variety of mechanisms, including citizen advisory committees, customer surveys, workshops and public events.
Customer satisfaction is continuous monitored through the use of customer contact cards, web-based comments, customer surveys and public outreach events. Our goal in seeking community participation is threefold: to increase community awareness; discover innovative, mutually beneficial solutions; and become a more open and transparent stakeholder in water resource issues.
Little Rock Municipal Water Works
2001 Gold Award for Exceptional Utility Performance
Little Rock Municipal Water Works
- Service population of approximately 360,000, and approximately 80,000 metered customers, including three other municipalities as master-metered customers.
- 203 employees.
- $22.2-million annual budget.
- Current treatment capacity of 124 mgd.
- System includes two water supplies, Lake Winona and Lake Maumelle; two treatment facilities; Jackson Reservoir, which serves as a regulating and emergency supply; 12 booster pumping stations; 15 water storage tanks; and 1,363 miles of pipeline.
Achievement Highlights:
In 1998, a competitiveness assessment was conducted that included a benchmarking comparison of the drinking water utility to "world-class" utilities, as well as other private utilities. Following a staff analysis of the recommendations, the utility underwent significant organizational and operational changes that included:
The transition to a team-based employment environment to reduce the overall supervisor-employee ratio; create a more flexible workforce; utilize the benefits of cross-training; foster a greater understanding of respective functions; and promote the professional and personal development of employees through increased skills and knowledge. Toward these goals, employee task groups are looking at job functions that can be performed by multiple job classifications and the re-engineering of many work processes has been accomplished through employee teams, both intradepartmental and interdepartmental.
The implementation of transitional cost-of-service rates to more accurately reflect revenue requirements and to bring rates more in line with the actual cost of providing service to different classes of customers. Even with a rate adjustment in the year 2000, rates remain among the lowest in the United States and both operational practices and water quality have been recognized four times with the U.S. Environmental Protection Agency's Region 6 Public Water Supply Environmental Excellence Award.
A reorganization of the utility into three departments (formerly there were four departments) and the re-assignment of various sections to departments that allow for more efficient work processes, better communication, and more responsive service to customers.
Development of a plan to automate to the extent possible all facilities to further achieve cost efficiencies in staffing and other operating costs. The plan includes going to unmanned operations at the Ozark Point Water Treatment Plant, one of two treatment facilities, within the next six months.
Initiation of a $31-million capital improvements program to optimize treatment plant operations, ensure continued compliance with the federal Safe Drinking Water Act, and provide for a needed increase in treatment capacity.
Massachusetts Water Resources Authority
2001 Gold Award for Exceptional Utility Performance
Massachusetts Water Resources Authority
- MWRA is the wholesale water provider to 60 communities and 2.5 million people in metropolitan Boston and central Massachusetts.
- MWRA provides about 250 mgd.
- In FY01 MWRA has 1576 employees and an annual current expense budget of $498 million.
Achievement Highlights:
MWRA has successfully completed many competitiveness improvement initiatives over the past several years.
Performance of the MWRA's drinking water quality has risen dramatically due a series of interim projects to improve watershed protection, source water quality, primary and residual disinfection, corrosion control and removal of open distribution storage.
MWRA has met the tough federal and state rules for unfiltered water systems, successfully sought approval from the state and a federal judge that filtration was not needed and is now constructing a centralized treatment system using ozone disinfection.
MWRA has also implemented pump station upgrades and automation, an accelerated pipeline rehabilitation program for the MWRA distribution system (280 miles, 80 percent unlined cast iron mains) and a no-interest loan for community systems (5600 miles, 47 percent unlined), and an aggressive multi-year program to improve valve operability through exercising and replacement. Included in this ten year, $1.7 billion capital improvement program is a 17.6-mile deep rock tunnel to insure continued reliable delivery of water.
MWRA has recently realigned its management organization to streamline operations and promote cross-functionality between the water and sewerage systems that were run separately for many decades. A Chief Operating Officer position was created and filled and a consolidated water/sewer operations building is under construction.
Major investments have also been made in technical and professional development training programs for staff and managers.
Internal communication is supported by a weekly newsletter, an intranet system and Labor-Management committees on topics such as the competitiveness and staffing study.
Memphis Light Gas & Water Division
2001 Gold Award for Exceptional Utility Performance
Memphis Light Gas & Water Division (MLGW)
- Serves over 900,000 people.
- Ten water treatment plants and a 3,400-mile distribution system.
Achievement Highlights:
Initiated a full-scale assessment and benchmarking study.
Developed benchmarks compiled in a Benchmarking Equivalency Number Index.
Employee-driven process teams measured performance and made recommendations.
O&M costs per water customer dropped by $3 since 1998.
Preventable instances such as main breaks and complaints have been significantly reduced since the mid-1990s.
Customer satisfaction is at an all-time high; rated the top utility in the Southeast for Customer Satisfaction by JD Power and Associates.
In spite of expanding service areas and rate reductions, no new employees were hired and overhead is spread across more customers.
Improvements at MLGW are driven by employee-led Quality Circles.
Employees take part in a corporate gain-sharing program with payouts of $500 to $1,500 per employee on an annual basis based on corporate performance.
Metropolitan Water District of Southern California
2001 Gold Award for Exceptional Utility Performance
For 70 years, the Metropolitan Water District of Southern California has successfully acquired and delivered high quality water supplies to Southern California. Recent years have seen a growth of external competition and political realities within California that threatened to change or reduce the utility's role. In late 1998 and into early 1999, the challenges and demands issued by the state legislature, member agencies and the public in general led Metropolitan's Board of Directors to recruit a new executive management team. The team would not only provide solutions to existing issues, but also positive direction and leadership for the organization into the next century. A plan to restructure Metropolitan was presented to the Board and approved in July 1999. This district-wide reorganization was necessary to become more responsive, accountable and transparent to Metropolitan's customers and the public in general. Moving forward with a strategy for appropriate and manageable change, management began reorganizing staff and analyzing business practices with a new vision in mind &endash; to reduce unnecessary organizational layers, eliminate inefficient business practices, increase competitiveness and meet the demands of customers while maintaining stable water rates. The past two years have produced substantial changes in not only how Metropolitan is viewed, but also how it will operate more effectively in the future. Accomplishments to date include: $144 million in operations, maintenance and capital savings, 188 fewer employees since April 1999, four new bargaining unit contracts, elimination of 150 consultant contracts, and improved relationships with customers.
Onondaga County Water Authority
2001 Gold Award for Exceptional Utility Performance
Onondaga County Water Authority (OCWA), N.Y.
- Serves more than 350,000 people in four Central New York counties.
- 110 employees operate and maintain 1,438 miles of water main.
- Operates a 20-mgd water filtration plant and monitors delivery of water from City of Syracuse and the Metropolitan Water Board.
- Annual operation and maintenance budget for 2000 was $14,169,690 and the capital budget totaled an additional $8.9 million.
Achievement Highlights:
Much of the Authority's success ties into reinventing itself over the past ten years:
Downsizing, through attrition, from 132 employees in the early '90s to its present level of 110.
Through an aggressive consolidation effort, the Authority's system grew more than 36 percent in total services, mains and hydrants.
The reinvestment program saw more than $23 million worth of infrastructure improvements completed while maintaining stable water rates and avoiding the need to issue water revenue bonds.
Increased maintenance of its system and improved services to its customer base through automation in areas of customer service, distribution operations and water treatment.
Adopted an aggressive policy of outsourcing non-core related business functions.
Provided staff more opportunities for training and professional enhancement.
Water treatment plant received Phase III certification from the USEPA Partnership for Safe Water and the water quality group is currently working on Phase IV certification.
Joined the QualServe Benchmarking Clearinghouse in 2000 upon the completion of both the QualServe self-assessment and peer review processes.
Adopted a progressive approach to dealing with safety and insurance matters that has resulted in significant savings on all lines of insurance over the past seven years with annual savings in the range of $250,000.