Orange County Water Division
2001 Gold Award for Exceptional Utility Performance
The Orange County Water Division constantly monitors the effectiveness of programs and processes it established to meet citizens' needs and develops new techniques to ensure that future needs are met. The Water Division's mission is to provide customers with safe and reliable water services by continually improving facilities, work processes and the capabilities of employees. The Water Division's competitiveness strategy includes a variety of initiatives. As the population of Orange County continues to grow, more water facilities have been built to provide adequate service. A state-of-the-art laboratory was completed in 1998 at the Eastern Regional Water Supply Facility that allows staff to work in a central location to perform all necessary testing. Maintenance of equipment and training of personnel are top priorities in the Water Division. Public education for community groups and in public schools continues to expand as innovative programs, such as "Touring the Water Facts," are developed.
Palm Beach County Water Utilities Department
2001 Gold Award for Exceptional Utility Performance
Palm Beach County Water Utilities Department (PBCWUD), Florida
- Provides water services to 400,000 residents.
- Also provides retail and wholesale services to several cities and towns.
- Operates four state-of-the-art water treatment plants (72 mgd total), two wastewater treatment plants (54 mgd total), 1500 miles of pipelines, 650 wastewater pump stations and 8 wellfields.
- Has 416 employees, an annual operating budget of $57,000,000 and a $240,000,000/seven-year capital improvement program.
Achievement Highlights:
Realizing the need to become more competitive, and thus minimize the threat of privatization, PBCWUD developed and implemented a "Productivity Assessment and Enhancement Program" beginning in 1995. As a result, the following gains have been achieved:
Individual worker productivity has increased 60 percent, with each employee now serving an average of 425 customers, up from 265 customers in the past.
The number of PBCWUD budgeted employees declined over the past ten years while at the same time the population served increased by 140,000.
Employee morale is up, and employee turnover is down.
Cumulative savings from decreased manpower needs alone have exceeded $20 million.
PBCWUD's ongoing $240 million capital improvement program is now fully funded from internally generated funds, and existing bonded indebtedness has been reduced from $1,100 per dwelling unit to less than $800 per dwelling unit.
On an inflation-adjusted basis, PBCWUD utility rates have decreased 30 percent over the past 15 years.
PBCWUD now has one of the most productive and quality work forces in the industry and has eliminated the competitive threat.
Philadelphia Water Department
2001 Gold Award for Exceptional Utility Performance
Philadelphia Water Department (PWD)
- Approximately 2,100 employees.
- Operates three water plants treating an average of approximately 300 million gallons of river water each day and maintains approximately 3,300 miles of water mains.
- Supplies drinking water to 1.5 million retail customers in the City of Philadelphia and another 150,000 residents of Lower Bucks County.
- Annual operating budget of approximately $427,527,000.
Achievement Highlights:
Since 1992, PWD went from a period of double-digit rate increases to no increases for the past five years as the utility implemented a competitiveness strategy within its strategic plan.
Below are examples of the PWD's success in implementing those strategies:
Moved from quarterly to monthly billing for significant collection rate increases.
Launched the largest automatic meter reading (AMR) project of any United States water utility, public or private. AMR is projected to achieve cumulative financial benefits over the 20-year useful life of the system estimated at $30 million, in net present value.
Minimized the cost of debt service by refinancing debt in favorable market conditions, saving over $61 million in debt payment, in net present value, since 1995.
Began assigning and monitoring service-level goals, on a monthly basis, for units.
Expanded safety programs to reduce employee injuries and help employees who are injured return to work more quickly. As a result of such efforts, the number of PWD workdays lost because of injuries has declined steadily from a peak of 4,821 in FY 93 to only 1,432 in FY 2000.
Moved to obtain more feedback from customers by performing "point-of-service" customer satisfaction surveys.
Following the completion of extensive wastewater plant expansion and upgrades, PWD is now shifting more of its capital resources to water main and sewer replacement and rehabilitation.
Implemented a Capital Facilities Assessment Program that inspects the condition of major facilities in order to minimize the cost of repairs and significant operational and service disruptions.
Phoenix Water Services Department
2001 Gold Award for Exceptional Utility Performance
Phoenix Water Services Department
- Serves 345,000 water accounts and 1.3 million people.
- Operates five water treatment plants with a combined capacity of about 630 mgd.
- Annual operating budget of about $205 million and a five-year capital improvement budget of about $1.5 billion.
Achievement Highlights:
Five years ago, the Phoenix Water Services Department embarked upon a reengineering program designed to achieve eight goals related to achieving excellence in customer service, environmental stewardship, cost effectiveness, safety, optimal staff size, expanded and upgraded facilities and limiting rate increases. The department's management and labor formed a coalition to mutually pursue these goals and their efforts resulted in:
An overhaul of work practices and staffing structure at all plants and a reorganization of all plant and facility maintenance support groups.
A new Multi-Skill Worker Program that calls for workers to expand their capabilities to include both operations and maintenance skills and provides a new pay scale to reward those bringing greater skills to the job.
A highly planned and coordinated maintenance program; minimized off-shift staffing; expansion of first-line workers' roles to include simple and basic journey-level tasks; increased applications of technology to leverage worker productivity; and realignment of internal work groups.
A recent independent audit showed annual cost savings achieved by the reengineering program are greater than $12 million. Customers benefit from the effort through improved service levels and the fact that charges for water and sewer service are among the lowest in the country.
Portland (Maine) Water District
2001 Gold Award for Exceptional Utility Performance
Portland Water District, Maine
- Provides water, wastewater and environmental services to 10 communities.
- Serves approximately 46,000 customer accounts, or 171,000 people, with its 190 employees.
- Manages $215 million in assets operating over approximately 140 square miles.
- Has an annual operating budget of $28.9 million and a $10 million capital improvement budget.
Achievement Highlights:
In 1997, the Portland Water District's governing board adopted a three-year competitiveness strategy to close the gap identified in a comprehensive review of all organizational work processes. Among the goals identified were to reduce the O&M budget, invest in technology, encourage employees to become multi-skilled, and accomplish all objectives without employee layoffs.
By late-2000, all the above initiatives had been achieved:
Staffing was reduced by 13 percent through attrition and voluntary, early retirements.
A Technology Master Plan was prepared, which has guided the investment in SCADA, GIS, data warehousing, etc.
Several areas were reorganized to promote cross-training, optimal performance, and communication, including such areas as maintenance, laboratories and field operations.
Not only have costs been contained, but two water rates decreases also have been implemented - a 9.5 percent decrease in 1999 and a 2.2 percent decrease in 2000. Further, a direct dividend equivalent to one month's typical water bill was distributed as a billing credit to all customers in 2000.
PWD has employed multi-disciplinary teams to reengineer work processes, implemented pay for performance measures, established corporate and departmental goals that are measured annually, and increased its communication efforts with employees and its customers.
Employee and customer satisfaction surveys are used to assess progress towards strategic goals and to direct changes.
Portland Bureau of Water Works
2001 Gold Award for Exceptional Utility Performance
Portland Bureau of Water Works, Oregon
- Provides water to nearly 800,000 (450,000 of whom are Portland residents; the balance of 350,000 are served via wholesale contractors).
- Two water sources---a surface system and a groundwater system.
- 545 employees and an annual fund budget of $145 million.
Achievement Highlights:
The agency has focused on developing a culture of continuous improvement since the early '90s, including:
Strategic labor-management leadership approach with extensive employee involvement in systematic business process reengineering.
Redesign of system operation (implementation of a SCADA system), fountain maintenance, grounds maintenance, customer service, mains flushing, emergency response, payroll and purchasing, stores operation and inventory management, concrete delivery and placement and laboratory management.
Flattening of the organization with increased span of control and reduced mid-management ranks.
Results have been evidenced by a revenue bond rating of Aa1 and a general obligation bond rating of Aaa; customer satisfaction ratings above 90%; rate increases below inflation, even as the capital improvement plan has been nearly doubled; and extremely competitive bills for customers based on local and national data.
Saint Paul Regional Water Services
2001 Gold Award for Exceptional Utility Performance
Saint Paul Regional Water Services (SPRWS) has focused its efforts in three areas. The first is water quality. Although the utility has access to abundant sources, SPRWS never takes water quality for granted and is committed to protecting the supply, improving treatment and ensuring delivery. Second is customer service. SPRWS regularly seeks feedback through the use of surveys, which help the utility clarify policies and enhance customer service. SPRWS continues to expand its customer base by entering into wholesale, retail and acquisition partnerships with suburban communities. The utility also has emphasized cost effectiveness by managing performance. Appropriately deployed technology and other improvements are directly linked to reduced cost and improved efficiency. Over the past five years, SPRWS has managed to increase revenue-funded capital improvements by five percent annually while holding increases in operating expenses to 1.4 percent per year and rate increases well below inflation. SPRWS recognizes that a public utility can benefit from adopting tools and practices utilized by the private sector. The utility's excellent reputation as a publicly owned organization provides additional leverage for these tools, bringing SPRWS even closer to its goal of becoming the leading regional water service provider.
Salt Lake City Department of Public Utilities
2001 Gold Award for Exceptional Utility Performance
The Salt Lake City Department of Public Utilities began its efforts to achieve continuous improvement and gain competitive advantage in 1992 when it embraced the philosophy and tools of total quality management. Since then, through extensive employee involvement, many processes have been improved and newer, more efficient and effective ones implemented. The department invested in SCADA technology to control a complex water distribution system, with only two employees monitoring the system. Water treatment plants combined operation and maintenance functions, and by using SCADA and particle counters, operators consistently maintain a 0.1 NTU finished water quality. Recognizing the need to continuously learn, the department implemented a leadership development program, which is open to any interested employee. A recently empowered Education Advisory Committee makes recommendations for technology, equipment, water industry and cross-training opportunities to improve employee communication, teamwork and job knowledge skills. The department partners with other government agencies, organizations and citizens to maintain superior source water quality while managing a watershed within the most-used national forest in the United States. A proactive watershed protection program helps keep the cost of water treatment down and reduces health risks by controlling pollution at the water supply source.
Seattle Public Utilities
2001 Gold Award for Exceptional Utility Performance
Seattle Public Utilities (SPU)
- Serves a population of 1.3 million people in the greater Seattle metropolitan area.
- 1,300 employees and a budget of $462 million for 2001.
- Water system includes the Tolt and Cedar River watersheds and a small aquifer, as well as approximately 176 miles of supply mains and 460 millions gallons of storage capacity in transmission and distribution reservoirs, supporting nearly 150 mgd average water use.
Achievement Highlights:
An aggressive water conservation program reduced per capita use by more than 20 percent over the past two decades.
To meet a new set of challenges at the dawn of the next century, the Seattle Water Department was directed by the mayor to develop pathways to become more competitive and efficient, and at the same time to enhance customer service levels and environmental protection.
Seattle Public Utilities was created in 1997 as one of the primary means of achieving these objectives through the merger of the water, wastewater, drainage and solid waste utilities.
All SPU services now have performance measures based on desired end results, and performance results are reported to the utility director quarterly and discussed with management leaders to assure feedback and performance results are synchronized.
An integrated Utility Call Center was created to provide seamless customer service related to any customer inquiries related to water, solid waste, drainage, wastewater and electrical services.
Innovative approaches to facility development and alternative approaches to drinking water treatment saved SPU $70 million on the Tolt Treatment Plant by using design-build-operate (DBO), a estimated $150 million on the Cedar Treatment facility by moving to ozonation and ultra-violet technologies and a DBO approach, and approximately $100 million through more strategic approaches to reservoir covering and replacement.
Though the integration of financial and administrative functions -- such as human resources, safety, information systems, finance, accounting, rates and communications services -- of three previously separate utilities, SPU achieved a cost saving of more than 10 percent without a reduction in service levels.
An enhanced Capital Improvement Program (CIP) included redesigned support systems, development of standards and new processes, and increased annual capital completion from around 55 percent to 100 percent. This capital completion rate was accomplished for three years in a row, while the size of the CIP doubled from roughly $50 million in the early 1990s to more than $100 million in recent years. In addition, SPU has maintained Aa2 and AA bond ratings.
Spartanburg Water System
2001 Gold Award for Exceptional Utility Performance
Spartanburg Water System
- Provides direct service to a population of approximately 110,000, and supplies water to nine wholesale customers serving a secondary population of approximately 73,000.
- Operates three surface water reservoirs and two treatment facilities with a combined capacity of 79 mgd.
- 188 employees and an annual budget of approximately $22 million.
Achievement Highlights:
Spartanburg Water System has developed and is implementing a program it calls Pursuing Excellence, which encompasses initiatives designed to ensure high levels of employee and public safety, regulatory compliance, resource conservation, customer service and competitiveness.
Maintenance and construction activities have been consolidated, multi-functional work teams established and the number of management levels and positions significantly decreased through attrition.
Laboratory services have been consolidated and a state-of-the-art laboratory is currently under construction.
More efficient analytical technologies and automation are being implemented where available, and extensive training and cross-training is underway.
Customer satisfaction is measured and evaluated on a periodic basis in order to determine satisfaction.
A Management, Operation and Maintenance Program consistent with EPA and Primacy Agency CMOM program guidance has been implemented to identify potential problems and schedule preventive maintenance.
A systematic inspection of treatment facilities and water storage tanks was undertaken to assess current physical integrity, projected life, and needed modifications or upgrades to meet future growth in the community and anticipated regulatory requirements.
Tacoma Water
2001 Gold Award for Exceptional Utility Performance
Tacoma Water stands ready to meet unexpected and expected changes in the economy, the climate, competition and regulation. The utility's primary resource is its staff of committed employees who are trained to think strategically, to use current process improvement tools, to innovate and to respond quickly to meet utility needs and exceed customer expectations. Employee teams can be assembled quickly to address issues and produce workable, cost-effective and timely solutions. One long-standing team, for example, identifies infrastructure replacement needs. Another more recent team has produced thoughtful recommendations to address a more immediate challenge, a budget shortfall resulting from a drought in the Northwest and the related downturn in business activity. Tacoma Water's new business plan and continuing progress on its second regional water supply project also add to the utility's ability to remain competitive. Tacoma Water is proud of its role as a leader in the community, the region and the water utility industry.
Tampa Water Department
2001 Gold Award for Exceptional Utility Performance
The Tampa Water Department serves a customer population of almost 500,000 through 120,000 connections in a 211 square mile service area. Its primary water resource is the Hillsborough River Reservoir Basin located adjacent to the historic Hillsborough River Water Treatment Plant and Dam. Tampa Water is proud of the department's tradition of innovation and continuous improvement with the simultaneous objectives of delivering unquestionable water quality, sound financial performance and customer satisfaction that is considered "best in class" for the industry. Beginning in 1996 with a comprehensive competitive assessment and a strategic re-evaluation of the objectives of the department's Water Quality Master Plan, Tampa Water launched its Water Quality 2000 initiative in the Production Operations Division. This initiative included re-engineering O&M processes and a series of facility upgrades to ensure superior water quality, cost containment and process flexibility and reliability into the 21st century. Workforce reductions (achieved without layoffs) with simultaneous improvement in productivity and job satisfaction were achieved through training, skills based compensation and automation projects. Water quality initiatives include rehabilitation of the existing filter galleries with new under-drains, the addition of air scour, activated carbon filter media and a 20 MGD production augmentation facility employing Actiflo and ozone disinfection technologies.