Chesterfield Utilities
2001 Gold Award for Exceptional Utility Performance
Chesterfield Utilities, Virginia
- Service population of 260,321.
- Budget for fiscal year 2001 was $53,382,900.
- Employs 250 people.
- Controls 20 water storage tanks and 30 pump stations, and manages more than 2,900 miles of water and wastewater lines.
- Operates a 12 mgd water treatment plant and purchases water from the City of Richmond and the Appomattox River Water Authority.
Achievement Highlights:
Chesterfield Utilities is guided by the principles of Chesterfield County's Total Quality Initiative (TQI) which was formally implemented in 1992. TQI employs strategic planning, a team approach to problem solving, staff training, process management, performance-based measurement, and rewards and recognition to achieve continuous improvement in efficiency and customer service.
The department has developed an annual performance plan based on metric benchmarking. An annual report, which evaluates performance relative to the plan, is developed and provided to all employees.
To improve process efficiency and customer service through employee input, staff members are provided training to give them the knowledge to seek out improvements and make recommendations. Employees are rewarded based on their efforts and the results of their recommendations.
Chesterfield Utilities has established an excellent bond rating and a reputation for low rates. A rate setting model incorporates the operating and capital improvement budgets over a ten-year period as well as a debt coverage ratio and cash surplus to be maintained. The department's bond rating has risen from A in 1985 to a AA rating.
A rate stabilization reserve fund was established in 1995 for replacement of water and wastewater infrastructure and an anticipated 10% increase in user charges over four years to provide the funding. This fund will allow replacement with no additional impact on user charges.
Chicago Department of Water
2001 Gold Award for Exceptional Utility Performance
The Chicago Department of Water (CDOW) owns and operates the world's two largest purification plants, 12 pumping stations, 4,323 miles of mains, 47 miles of finished water tunnels and over 47,000 hydrants. CDOW purifies and distributes more than one billion gallons of water daily to over 5 million people. CDOW has earned an AA+ bond rating while maintaining the third lowest water rates in the nation. The department shortened its water main replacement cycle by 16 years and implemented a SCADA system for six of its pumping stations, reducing costs by $30 million. In addition, electricity costs are being lowered through a cooperative bulk purchase; a new billing and collection system was implemented to improve collections management; response time to water quality inquiries was reduced by almost 70 percent; over 23,000 engineering drawings were computer-archived; and the department received the GFOA Financial Accounting Award. CDOW is embarking on a department-wide review starting with a thorough analysis of water treatment, billing and collection, and procurement processes. The department will compare these with other utilities to maximize operational efficiencies without negative impact to employee morale. With a five-year, $620 million infrastructure investment, including 50 miles of annual main replacement, CDOW will continue to be competitive and maintain the high level of service its customers expect.
City of Akron Public Utilities Bureau
2001 Gold Award for Exceptional Utility Performance
In 1998, when its water rates were among the highest in the state, the City of Akron Public Utilities Bureau recognized the need to stabilize rates by changing the way it operated its utilities. A Blue Ribbon Commission evaluated work practices and produced a report that served as a catalyst for Akron to change the way it does business. EMA Inc., hired to perform an analysis of the Public Utilities Bureau (PUB), found a competitive gap of $10 million in annual controllable O&M costs. This led to selection of the Leading Change Team (LCT), a steering team consisting of a cross-section of the work force, including management and labor, with representatives from each division. The LCT commissioned six major core design teams, plus several smaller work teams to encourage the team concept. Notices were posted publicly to allow all interested employees the opportunity to apply. As a result of the Blue Ribbon Committee report, EMA assessment and employee design teams, Akron achieved $4.6 million accumulated savings in controllable O&M costs over the last two years. The city's PUB is becoming highly trained, flexible and efficient, using best business practices to be competitive and supplying citizens with quality services at stable rates.
City of Albuquerque's Water Utility
2001 Gold Award for Exceptional Utility Performance
Faced with significant operating challenges and opportunities, the City of Albuquerque's Water Utility is undertaking a major change initiative to become more competitive. Groundwater supply and quality issues triggered the need for water conservation and construction/operation of a new surface water treatment plant. The effects of water conservation in turn resulted in declining revenues per customer, and the new surface water plant will add to the operations and maintenance burden of the utility. Potential regionalization of water services in the Rio Grande Valley presents an opportunity to expand the service area of the water utility with a resulting increase in revenue. However, prior to expansion, the utility must be able to provide a high-quality product at a competitive price. Albuquerque's change initiative includes the Albuquerque Water Operations and Management System (AWOMS), which merges integrated information from a new Computerized Maintenance Management System (CMMS) and state-of-the-art Supervisory Control and Data Acquisition system (SCADA). These systems work in concert with retooled O&M practices to produce a competitive and highly efficient water utility. Currently, the utility is mid-way through a five-year optimization project to apply these new technologies and practices to yield bottom-line results for its customers.
City of Atlanta Department of Water
2001 Gold Award for Exceptional Utility Performance
From the early 1990s, the City of Atlanta Department of Water has made significant efforts to improve operating efficiency and reduce costs, while providing excellent service to customers. Staff positions were reduced from 863 in 1993 to 480 at the end of 1998. A one-stop call center, initiated in 1997, has vastly improved customer service. Aging steam powered pump stations are being replaced with new electric powered facilities, and a new $42 million, 200 MGD pump station for the downtown area will be on line by the end of 2001. Energy incentives with the electrical utility and new operating patterns have saved over $1 million annually in energy costs. Back-up electric power generation projects, totaling $22 million, will be completed by the end of 2001 for the two major treatment plants and all the most critical pump stations, ensuring operational reliability. Atlanta is also promoting water conservation education by providing a summer xeriscape program to customers. In 1999, Atlanta entered a 20-year contract with a private firm, United Water Services Atlanta, to manage water system O&M. The agreement will save the city $20 million annually and $400 million over the term of the contract. The Atlanta Water Department continues to maintain a small staff to oversee and manage the firm's performance and to manage the capital improvements program, an aggressive five-year plan with more than $502 million in facility and distribution improvements.
City of Austin Water and Wastewater Utility
2001 Gold Award for Exceptional Utility Performance
The population in counties served by the City of Austin Water and Wastewater Utility increased more than 40 percent in the last decade, with a corresponding 36 percent explosion in average water demand. The challenge has been to meet both this increased need and higher customer expectations through a strategy of continuous process improvement and a customer satisfaction philosophy. Using benchmarking, competitiveness assessments and employee involvement, the Utility systematically created and implemented systems, processes and programs to increase efficiency, effectiveness and competitiveness. Major accomplishments include: accommodating the increased demand for products and services with fewer employees; increasing the capacity for water production and delivery; stabilizing water service rates over the planning horizon; upgrading the Utility's bond rating to an A+; winning the Greater Austin Quality Council's Significant Merit in Quality award for two years; and, becoming a model for other utilities for the treatment plant operator and mechanic cross-training program, which resulted in a 20 percent reduction in operators. Not only has customer satisfaction with water quality increased by 22 percent, but internal customer (utility employee) satisfaction also increased by 11 percent, with labor and management successfully partnering to resolve mutual issues.
City of Columbus Division of Water
2001 Gold Award for Exceptional Utility Performance
City of Columbus Division of Water, Ohio
Achievement Highlights:
Aware of the growing competitive challenge within the water utility environment, the Division followed a proactive course to ascertain its competitive position:
Eighty-four employees representing all sections of the Division participated in a two-day "Thinking, Getting & Staying Competitive" workshop which resulted in a total of 245 individual recommendations to increase competitiveness.
Employees concluded that existing practices placed the Division at a competitive disadvantage of approximately $15 million per year.
To close the gap, the Division eliminated all uneconomical take-home vehicles; began work on several classification merge projects; combined similar work sections, monitored electrical usage through bill review and demand monitoring equipment; and reviewed and amended the purchasing process.
Future goals include a thorough study of and reduction in overtime, and continued progress in organizational restructuring and process improvement.
City of Raleigh Public Utilities Department
2001 Gold Award for Exceptional Utility Performance
The City of Raleigh Public Utilities Department provides water to a service population of approximately 315,000 customers. While experiencing a period of large growth, Raleigh remains committed to providing quality services at an affordable cost to its citizens. With only two rate increases during the past 12 years, current utility rates are the second lowest in the state and among the lowest in the region. Two new two-million-gallon elevated storage tanks, a new five-million-gallon clearwell and a new ozone generator top the list of recent improvements to the system. A proposed new water treatment plant is in the design phase to accommodate additional growth. Raleigh currently maintains bond rates of Aa1 from Moody's, AAA from Fitch and AAA from Standard and Poor's, the first water and sewer utility in the U.S. to achieve AAA ratings from Fitch and S&P. Utility employees continue to be a vital part of the improvement process. A SIP (Service Improvement Program) Committee develops programs to improve service to both internal and external customers. Work Order Process Teams study ways to improve various work processes and increase efficiency.
City of St. Louis Water Division
2001 Gold Award for Exceptional Utility Performance
For the City of St. Louis Water Division, competitiveness improvements begin and continue with staffing levels. The improvement process started in 1996 when each section manager was charged with evaluating the number of positions needed to perform critical functions. The resulting reduction of 8.7 percent of staff was realized through re-thinking work processes and utilizing technology advances, without any layoffs. Completion of a touch-read meter reading system, with an on-going migration to an automated meter reading system (AMR), more than doubled the productivity of meter readers. With the final installation of the AMR system, the meter reading force will be reduced to one individual. As a water utility in a city with fixed boundaries, the Water Division determined to use its excess capacity to become a regional water supplier. Using its Howard Bend Plant on the Missouri River as the source, it successfully negotiated to supply three wholesale customers in neighboring St. Charles County. An aggressive capital improvement program was initiated. A completely new reservoir (two tanks) was built within the historic exterior of the previous reservoir, retaining the character of the neighborhood. Also, a new pre-sedimentation and softening basin was added at the Chain of Rocks Plant on the Mississippi River to ensure compliance with future quality regulations. Conventional and innovative technologies are being utilized to upgrade the distribution infrastructure.
Columbus Water Works
2001 Gold Award for Exceptional Utility Performance
Columbus Water Works (CWW), Georgia
- Provides water and wastewater treatment services to a population of about 250,000 in the 221 square mile Columbus service area and via wholesale accounts.
- 205 full-time employees.
- Source of water is the Chattahoochee River.
- Operates a water treatment facility rated at 90 mgd.
- Annual budget is $34.7 million of which $20 million is for operation and improvement of the system and $14 million is to retire debt.
Achievement Highlights:
CWW has developed a plan for continuous improvement, which increased automation throughout the organization, and implemented an effective information acquisition, storage and retrieval system.
The total staff was reduced over a four-year period from 250 to 205 with an annual operating budget reduction of $1 million. Automation of all treatment plants is complete with only two staff needed to monitor four plants and 39 pump stations. The ratio of 1.5 employees per 1000 customers for full water and wastewater service is among the lowest in the industry. These results have been achieved while receiving over 40 local, state, regional and national awards and maintaining water and sewer rates below most other systems in the regions.
A Data Warehouse has been created to connect to a Human Resource System (OPTIMUM), Laboratory Information System (LIMS), Computerized Managed Maintenance System (CMMS), Customer Information system (CIS), Geographic Information System (GIS) and Financial System (ORCOM) so that information is readily available to all employees. An Interactive Voice Response System (IVR) has been installed to facilitate customers accessing their billing records. All of these have allowed the staff to provide more service with less time.
A centralized maintenance management system was established to maximize equipment and line reliability and longevity, minimize failure and downtime, increase equipment efficiency, and replace/rehabilitate equipment and lines when it is cost effective.
An atmosphere where innovation and creativity has flourished. Open discussion and examination of all work processes is encouraged. The results -- which have produced significant cost savings and increased customer service — speak for themselves.
Contra Costa Water District
2001 Gold Award for Exceptional Utility Performance
Contra Costa Water District, California
- Provides water to approximately 430,000 people in Contra Costa County.
- Over $1.05 billion in assets, including a 100,000 acre foot reservoir, two regional water treatment facilities with a combined capacity of 115 mgd and a 1,000 miles of distribution piping and facilities.
- 320 employees.
- Annual budget of $169.9 million.
Achievement Highlights:
In Contra Costa Water District's efforts to continuously strive for improvement and stay competitive, the District has developed a Mission Statement and a set of goals to be achieved through over 300 annual milestones such as:
The Engineering Department benchmarking practices include: decreased turn-around time for Engineering Support requests; increased accuracy of project cost estimates; and reduced number of change orders due to reduction in design errors. Engineering administrative costs for capital projects were reduced from 45 percent of total project cost to less than 40 percent.
A Supervisors Academy was established to provide District supervisors with the tools and training they require to serve as excellent supervisors. A Skills Training Program was also established for clerical /maintenance employees. The new Multi-Skilled Equipment Operator classification was recently created to allow employees the ability to operate a wide rage of equipment which provides for increased effectiveness, efficiency, the development of enhanced job skills, while it provides a cost savings to the District.
The Finance Department has implemented a customer survey program, demonstrating a customer service approval rating of 83 percent, and a procurement card program has reduced the cost of processing transactions under $500 by 65 percent.
A new Financial & Customer Service System is being implemented and has the potential to provide customer service programs and customer billing service for other agencies.
The Finance Department is researching point of use and customer specific devises as well as bottled water and service line maintenance to provide consumers with total customer care.
Des Moines Water Works
2001 Gold Award for Exceptional Utility Performance
For more than 100 years, the independently operated Des Moines Water Works (DMWW) has been committed to supplying a safe and sufficient supply of drinking water to the residents of central Iowa. The largest drinking water utility in the state, DMWW currently services approximately 350,000 people. Through the years, changes have been implemented to improve water quality, increase water production, enhance and beautify the properties' landscape and provide educational opportunities for all ages. Some of the DMWW programs and projects include: a 1,400-acre park system used for watershed protection, picnics, walking, jogging, bike trails, flower beds and fishing; the Arie den Boer Arboretum; 200-acre Maffitt Reservoir, educational initiatives including a Water Wisdom newsletter for teachers; a DMWW Museum; an Urban Environmental Partnership to educate the public on the importance of water quality protection; a Volunteer Monitoring Project in the Raccoon River watershed; development of the Lime Sludge De-watering Facility; and Project H2O (Help-2-Others), a program to assist low-income households with the payment of water bills.