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HomeMy WebLinkAbout2017-10-04 Utilities Advisory Commission Summary MinutesUtilities Advisory Commission Minutes Approved on: November 1, 2017 Page 1 of 6 UTILITIES ADVISORY COMMISSION MEETING - SPECIAL MEETING FINAL MINUTES OF OCTOBER 4, 2017 MEETING CALL TO ORDER Chair Danaher called the meeting to order at 6:05 p.m. Special Workshop Meeting of the Utilities Advisory Commission (UAC). Present: Chair Danaher, Vice Chair Ballantine Commissioners Forssell, Johnston, Schwartz, Segal, and Trumbull Absent: ORAL COMMUNICATIONS None. NEW BUSINESS ITEM 1: DISCUSSION: Community Strategic Planning Workshop Tony Georgis, NewGen Consulting, gave an introduction to the strategic planning process and the reasons for engaging in strategic planning. He shared basic background information about the utility, including its mission statement (“To provide safe, reliable, environmentally sustainable and cost-effective services”), the services it provides (electric, gas, water, wastewater collection, and fiber), and some basic financial and demographic statistics. He shared feedback from previous stakeholder group discussions, which included comments on: • paying attention to the impact of electrification (vehicle and building) on the utility and defining its role in achieving an 80% reduction in greenhouse gas emissions by 2030 • facilitating customer options and choice • finding ways to reduce red tape for customers • making use data available to customers and using it strategically • understanding climate change impacts and resiliency needs of the community • looking for opportunities to partner with customers • attracting and retaining employees • remaining competitive • pursuing water recycling • the importance of collaboration across the entire City. Generally, the previous stakeholder groups had talked about the high level of trust the utility held with the community, and the fact that its reliability and sustainability were highly valued. Utilities General Manager Ed Shikada discussed the draft “Strategic Direction”: Utilities Advisory Commission Minutes Approved on: November 1, 2017 Page 2 of 6 At the City of Palo Alto Utilities, our people empower tomorrow’s ambitions while caring for today’s needs! We make this possible with our outstanding professional workforce, leading through collaboration, and optimizing resources to ensure a sustainable and resilient Palo Alto. He noted that what was most important was how this direction was implemented. He highlighted several key aspects of the strategic direction: • People: The workforce was a critical part of the organization’s ability to move forward. • Empowering tomorrow’s ambitions: The utility has the opportunity to be a leader, particularly in sustainability, and serves a community that strives to be a leader and that affords utility staff the opportunity to interact with world-leading companies. • Caring for today’s needs: The same staff that focuses on utility leadership also focuses on the day- to-day work of keeping the lights on and fixing problems on the various distribution and collection systems. • Collaboration: This was a key focus area for the utility to be successful. • Optimizing resources: This included optimizing human resources, natural resources, financial resources, and technology. • Sustainability: This was a core value for the utility. • Resiliency: This was also an important value to the community – how would the utility respond to natural and man-made disasters? Georgis introduced the community workshop breakout sessions to discuss Strategic Plan “priorities,” which Georgis defined as “a problem, concern, or challenge that your organization must address in order to achieve its strategic direction.” “Strategies” were focused efforts to address the priorities. Staff would be sharing four priorities (Workforce, Collaboration, Technology, and Financial and Resource Optimization) and discussing strategies to address those priority areas. Staff was eager to hear community feedback. The community members, staff, and UAC members broke out into small groups to discuss the four priorities. Community members were provided the opportunity to discuss multiple priority areas over the course of the evening. Workforce Priority Staff discussed the “Workforce” priority, sharing an early draft list of strategies: Workforce Priority: We must create a vibrant and competitive environment that attracts, retains, and invests in a skilled and engaged workforce. • Strategy 1: Enhance recruitment strategies and offer alternative work options • Strategy 2: Invest in life-long learning & professional growth • Strategy 3: Promote a positive work culture to create an environment of teamwork, innovation, diversity, respect and trust. • Strategy 4: Promote job satisfaction and improve employee feedback opportunities • Strategy 5: Evaluate and consider alternative solutions to achieve workforce needs in each department. Chief Operating Officer Dean Batchelor summarized the results of the discussion. There was some discussion of creating affordable housing or micro-units to address the long commutes that made it difficult to recruit employees. There was discussion of benchmarking salaries against other utilities to determine appropriate salaries. Participants recommended reaching out to colleges and universities and creating internships and positions to train and develop new staff effectively. Utilities Advisory Commission Minutes Approved on: November 1, 2017 Page 3 of 6 In the community discussion sessions, staff noted the following comments, questions, and areas of concern: • Workforce is the hardest to solve of the 4 priorities • Off-load “projects” to contractors, use staff for maintenance • Consider selling one or more of the utilities • Workforce issues (compensation, opportunity, etc.) are “internal” and should be easy to resolve. You don’t need “outside” approval – just fix it! • Outsource / use a labor pool • Consider a hybrid workforce option with employees and contractors • Create apprenticeships • Recruit/conduct outreach at local colleges (community and private) • Create a “cool” factor (office space, provide staff lunches) for millennials • Offer internships • Provide entry-level jobs • Promote advancement/define career paths • Offer financial incentives to offset the high cost of living • Provide a housing allowance • Provide housing solutions for employees such as shared housing • Use satellite offices for certain functions • Survey existing employees – why do they stay? • Offer rotational job opportunities • Provide affordable housing (similar to initiatives for teachers) • Poach staff from other agencies in the vicinity • Consider contracting “senior” level positions • Consider retirees from private utility providers • Create satellite offices • Provide more commute options • Increase wages • Provide a housing subsidy • Consider co-housing options to attract millennials • Create advertising similar to PG&E’s where staff promotes the utility – “a great place to work” • Provide tuition reimbursement • Provide a paid certificate program • Use technology to enhance training • Create a “family”-like work environment/atmosphere • Consider part-time staff Collaboration Staff discussed the “Collaboration” priority, sharing an early draft list of strategies: Collaboration Priority: We must collaborate to deliver exceptional services. • Strategy 1: Increasing communication with the community enhances customer satisfaction and community trust • Strategy 2: Strengthening communications across City departments aligns goals while improving performance and efficiency • Strategy 3: Fostering a culture of cooperative work within Utilities improves productivity and awareness, and understanding common goals • Strategy 4: Collaborate with outside agencies/organizations Communications Manager Catherine Elvert summarized the workshop discussions. Community members had discussed how to communicate with the community, including getting out to community events and reaching out through neighborhood groups. There was discussion of involving the community in helping to recruit qualified workers to the utility. It was also important that collaboration not just be a vague statement, but that there be metrics for how effective the community was. It was also important to help community members make informed decisions about their energy use, and to partner with customers on sustainability and technology measures like electric vehicles. Staff should participate in industry workshops to learn best practices. It was important to break down City Department silos and coordinate effectively. Utilities Advisory Commission Minutes Approved on: November 1, 2017 Page 4 of 6 In the community discussion sessions, staff noted the following comments, questions, and areas of concern: • Look at whole picture • Need explicit tie to the mission – safe, reliable, environmentally sustainable • Align Utilities Department direction with City’s direction • Systems should be applicable with all departments, e.g. programs/needs are aligned • Housing for employees • Work with outside agencies, e.g., first responders, IEEE industry groups – devote funding to this. • Tree concepts coordinated with solar – shorter trees? Look at public/street trees • Find some incentive/reward • Be a learning organization • Break down siloes • Metrics are key • Listen • Utilities Department is great at answering questions/addressing issues • Broken, cracked sewer lines – coordinate, fix before repairing the road • Communicate across department to coordinate projects • One city – communicate across the departments • Work with residents to increase capacity to charge electric vehicles • Town Halls – perhaps hold a big workshop once per year, for example: share goals/strategic initiatives • Interns go door-to-door, encourage people to come out to Town Halls • Improve water use efficiency resources, e.g., leak detention program for water • Address issue properly with one call • Coordination with Public Works – Urban Forestry Division • What percentage of customers satisfied that their concerns are satisfactorily addressed – one phone call? • Interactive portal for customers ° How are they doing? ° How could they do better? ° How can they collaborate with neighbors, etc? • Get information to the public • Phone responsiveness – answer questions, who to call • Can we help resident/businesses be more informed about problems with utilities – gas leak, e.g. • How can CPAU help its customers live better, more economically efficient in every aspect of their lives? • As an EV driver, where should I charge? • What are impacts to the distribution system with more electric vehicles • Make info on website easier to find • Help resident with information to get ready for electric cars • Fiber deployment like Chattanooga • Increasing communication with the community enhances customer satisfaction and trust • Identify obstacles to customer electrification and options for CPAU support • Prioritize providing customers what they need to make informed decisions about utility use and purchases • Move neighborhood interactions – neighbors helping to inform neighbors/need to use City resources • MSC open house was excellent – help customers learn what utility does and why they should come to the event. • More utility pop-up events • Exchanges of information among people - small groups of neighbors sharing information like Cool block • Net energy metering for solar customers • Go to where people are • Surprised most people don’t know we have our own municipal utility • Get people interested in their municipal utility • Cost of solar generation – don’t leave customers stranded, e.g. if something happens in the Central Valley • Have community help collaborate with human resources to reach out to other companies/organization to recruit people to City • Use volunteers to attend meetings, take notes – help City leverage community as a resource • Narrow topics for email, newsletters, e.g. “check to receive emails on topics related to solar” • Ensure communication is effective Utilities Advisory Commission Minutes Approved on: November 1, 2017 Page 5 of 6 • How do I report an outage at my house if the power is out and my phone is dead? • Can you make status of utilities “self- reporting?” • Have webinars about utility information • Improve website interface • Make website more interactive Technology Staff discussed the “Technology” priority, sharing an early draft list of strategies: Technology Priority: We must invest in and utilize technology to enhance the customer experience and maximum operational efficiency. • Strategy 1: Invest in Technology infrastructure to enhance customer engagement and satisfaction. • Strategy 2: Facilitate customer adoption of new Technologies to enhance the customer experience. • Strategy 3: Implement Technology to improve response time, security and operational efficiency. • Strategy 4: Ensure and empower employees to adopt and utilize Technology. Senior Resource Planner Heather Dauler summarized the discussion. Cyber-security and physical security were important priorities for the participants. Participants discussed having an easily understandable online “one-stop shop” where customers could interact with the utility, including finding out about carbon profiles. Smart metering was a topic of discussion. Integrating distributed solar and storage was important, as well as forecasting the potential for increasing load from electric vehicles. In the community discussion sessions, staff noted the following comments, questions, and areas of concern: • Implement technology to improve response time, security and operational efficiency ° Workforce mobility ° Field tablets ° GIS ° Supervisory control and data acquisition • Tie clearly to mission – 2nd transmission path • Microgrids - think carefully about resiliency and security (cyber- and physical-) • What’s the new tech the City is considering? e.g. AMI rollout in 3-5 years • Website, enhance customer portal • Can our distribution system handle a significant bad event? • Community evaluation of resiliency – share what we know • Underground infrastructure • Use self-driving vehicles as a way to reduce labor • AMI – use it to provide feedback in real time about usage • Interaction of utility with DG and storage – are we flexible if DG and storage become highly cost effective? • Are we prepared for a dramatic load shift? • Do we consider various scenarios in our resource planning models? • Ensure customer-facing tech is easily understandable; one-stop-shop for all needs • Residential and commercial real time indication of carbon cost/impact Financial & Resource – Optimization Staff discussed the “Financial and Resource Optimization” priority, sharing an early draft list of strategies: Financial and Resource Optimization Priority - We must optimize financial management and efficient use of resources to achieve our service priorities. • Strategy 1: Cost-effective, efficient, customer-focused service goals. • Strategy 2: Excellent management and execution of work. • Strategy 3: Effective maintenance and replacement of utility infrastructure. • Strategy 4: Sustainable and resilient energy and water supply. Utilities Advisory Commission Minutes Approved on: November 1, 2017 Page 6 of 6 Jonathan Abendschein, Assistant Director of Utilities Resource Management summarized the feedback from the Financial and Resource Optimization discussions. The first discussion group had focused on sustainability and environmental goals. What role would the utility have in partnering with customers who want to install new technologies coming on to the grid? The second discussion group focused on making sure the utility was careful with its spending and kept rates competitive. The third discussion group focused on good utility management, making sure that the utility was effectively delivering services, and measuring that through metrics and benchmarks. The final group focused on resiliency, making sure the community understands how resilient the utility is so they can prepare, and making sure the utility is prepared for a variety of threats, including manmade threats like vandalism and terrorism. Reliability was important, making sure that necessary infrastructure replacement took place to keep the system reliable. In the community discussion sessions, staff made note of the following comments, questions, and areas of concern: • Effective maintenance and replacement of utility infrastructure • Improve our understanding of the conditions of our pipes and wires to direct investment to the highest priority replacement need • Consider other competitive impacts – does the electric utility become a distribution-only company? • In a competitive environment and with our long-term planning watch out for stranded assets – long term contracts/pipes and wires that become useless due to changing market conditions. • How will the City collaborate with customers on solar and storage? • Collaborate with customers to increase community resiliency (e.g. storage, load control) • What are the metrics you use to know if you are doing a good job? • Reserving funds and ordering back-up equipment to repair major distribution equipment in case of damage. Consider second transmission line into the City. • If large electric generators can provide cheap power will PA keep buying from local solar? • Don’t move employees into the utility from the general fund, minimize transfers to general fund to keep my bill down and stay competitive. • Efficient use of workforce • What will be the impact of disruptive technology on the utility business model? • Help people understand the financial impact and benefit of their energy/appliance decisions – use online tools, advice • Metrics on utility management should be visible and timely - past quarterly reports provided good information, need to make current reports better. • Manage by objective • Resiliency – help people understand resiliency metrics, e.g. restore service in 24-hours • Resiliency is a priority – plan for issues like terrorism and vandalism • Speed up utility undergrounding • Keep up with infrastructure replacement consistent with age • Coordinate with other departments/agency on construction ACTION: No action. Shikada noted that the plan was scheduled to be presented in December or January to the UAC, and there would be an opportunity at that time for the public to provide additional feedback. Meeting adjourned at 8:00 PM Respectfully Submitted, Marites Ward City of Palo Alto Utilities