HomeMy WebLinkAboutStaff Report 14832
City of Palo Alto (ID # 14832)
Utilities Advisory Commission Staff Report
Meeting Date: 10/12/2022 Report Type: VII. NEW BUSINESS
City of Palo Alto Page 1
Title: Discussion and Presentation of 2018 Strategic Plan Implementation
From: Director of Utilities
Lead Department: Utilities
Discussion
This is a discussion and update on the continued implementation of the 2018 Utilities Strategic
Plan (Staff Report No. 9022). The Utilities Strategic Plan identified four high priority focus
areas:
1. Workforce;
2. Collaboration;
3. Technology; and
4. Financials.
These four priorities reflect the needs of the organization and customers, and implement plans.
There are multiple priorities, and subsequent strategies and actions for each reported by the
status of completion:
1. Not started
2. In progress
3. Completed
Over time, some strategies and actions may become obsolete, modified, or added. These types
of changes will be grouped by
1. New – new strategies or actions added
2. Modified – existing strategies or actions which have been modified
3. Deleted – existing strategies or actions which are obsolete and no longer
applicable
Attachments:
• Attachmnet A: Presentation
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OCT 12, 2022 www.cityofpaloalto.org
UTILITIES STRATEGIC PLAN
Progress Update
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IMPLEMENTATION
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The Utilities Strategic Plan (USP) was adopted in 2018. Implementation of the plan was organized by
Four priority focus areas (workforce, collaboration, technology, & finance/resources)
Specific strategies for each priority
Individual actions for each strategy (if any)
Priority 1: Workforce
Priority 2: Collaboration
Priority 3: Technology
Priority 4: Finance
Strategy 1.1
Strategy 1.2
Strategy 2.1
Strategy 2.2
Action
Action
Action
Action
Action
Action
Mission &
Strategic
Direction
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PRIORITY 1
WORKFORCE
OCTOBER 12, 2022 www.cityofpaloalto.org
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PRIORITY 1:WORKFORCE MISSION & STRATEGIES
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Mission
Create a vibrant & competitive environment that attracts, retains, & invests in a skilled & engaged workforce.
Strategies
•S1: Establish CPAU as an organization where employees are proud to work & recruit other strong performers.
•S2: Create a workplace that attracts & retains skilled employees.
•S3: Evaluate & consider alternative workforce solutions to achieve organizational business objectives.
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PRIORITY 1: WORKFORCE ACCOMPLISHMENTS
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Accomplishments
•Established a system operators training program (S1)
•Training & career progression path developed for water/gas/wastewater engineering (S3)
•Created position vacancy tracking system to assist HR. (S2)
•Developed extensive list of places to advertise, an outreach strategy guide, & timeline for hiring managers. (S2)
•Executed engineering & construction contracts to augment Engineering, Electric Operations (S3)
•Hired three new Electric Engineers from Cal Poly San Luis Obispo (S2)
•Successfully implemented remote work schedule for specific workgroups (S3)
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PRIORITY 1: WORKFORCE INITIATIVES
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Initiatives in Progress
•Applying training & career path template to other divisions (S1)
•Conduct employee satisfaction survey (S2)
•Promotion readiness evaluations underway (S2)
•Exploring digital recruitment ads (S2)
•Working on ways to share team-building ideas (S3)
•Daycare options (S3)
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PRIORITY 1:KPIs
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Key Performance Indicator Goals
•Employee turnover rate < 10% by 2020 (3-yr average)
•90% of all positions filled annually; 100% of critical positions filled within 90 days
Turnover June 2020 June 2021 June 2022
Separations 14 16 19
3yr Avg Filled Positions 205 205 205
7%8%9%
Percentage Filled June 2020 June 2021 June 2022
Filled 208 207 202
Authorized FTE 244 245 248
85%84%81%
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PRIORITY 1: WORKFORCE STATISTICS
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Past 3 Yrs of Recruitments
54 New Hires
94 Promotions
5 Hourly Conversions
3 Re-hires
25
20
15
10
5 4
0 111 1 111
2
1 a.I
Admin Customer
Support
Ac1TY OF
¥PALO ALTO
Vacancies by Division
22
18
11
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1 1 1 ~I• •••
Electric Electric Resource WGW WGW
Engineering Operations Management Engineering Operations
■ June 2020 ■June 2021 ■June 2022
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PRIORITY 2
COLLABORATION
OCTOBER 12, 2022 www.cityofpaloalto.org
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PRIORITY 2: COLLABORATION MISSION & STRATEGIES
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Mission
Collaborate with internal teams & external stakeholders to achieve our shared objectives of enhanced communication, coordination, education, & delivery of services.
Strategies
•S1: Increasing communication through active listening & engagement with the community enhances customer satisfaction & community trust & will help us deliver programs & content based on community desires.
•S2: Strengthening coordination & integration across City departments aligns Utilities & City goals while improving performance & efficiency.
•S3: Fostering a culture of cooperative work within Utilities improves productivity & awareness & underst&ing of our common goals.
•S4: Collaborating with government, trade, & regional agencies enhances our sphere of influence, allows us to identify common ground, & leverage economies of scale.
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PRIORITY 2: COLLABORATION ACCOMPLISHMENTS
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•S1: Community focus
•Fall 2021:Hosted series of Sustainability & Climate Action Plan (S/CAP) Ad Hoc committee public webinars.
•Oct 2021:Launched online Fiber Optics "Hub" to engage community in fiber-to-the-premises (FTTP)discussions.
•June 2022: Due to drought, adopted City's water shortage contingency plan to implement water use restrictions for conservation goals.
•S2: Interdepartmental focus
•May 2022: Coordinated efforts between SunShares solar group-buy program installer & Planning & Development Services (PDS) to
review &streamline solar & battery storage permitting process.
•Jun 2022:Fiber optics team & City Manager's Office collaborated with consultant on community survey for market potential for FTTP.
•Spring 2022:Collaborated with PDS on Green Building (Reach Code)requirements for the 2023-2025 building code cycle.
•S3: Intradepartmental focus
•Weekly meetings with Electric Engineering & Operations to coordinate building electrification & grid distribution system upgrades.
•Began One Water Plan contract with consultant for evaluation of long-term water resources resiliency & supply management.
•S4: Government & outside agencies focus
•Monthly meetings with CMUA Legislative Committee, partner agencies Valley Water & Bay Area Water Supply & Conservation Agency
on drought & water supply topics, CMUA & regional energy POUs regarding Wildfire Safety.
•Entered into new cost sharing agreement with Valley Water with increased water conservation rebate amounts, effective July 1.
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PRIORITY 2: COLLABORATION INITIATIVES
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Initiatives in Progress
•S1: Community focus
•Hosting "Making Better Choices in Your Home" event Oct 15 about sustainability & beneficial electrification.
•Planning series of water & energy workshops, both in-person & virtual, for Fall 2022 through 2023.
•S2: Interdepartmental focus
•Continuing collaboration with Planning & Development Services on Reach Codes development.
•Working with Public Works Department to identify electrification potential in City facilities.
•S3: Intradepartmental focus:
•Ready to launch WaterSmart Portal, Home Water Report program,&MyCPAU Single-Sign On feature.
•Coordinating customer service & outreach efforts for launch of Advanced Metering Infrastructure (AMI) program & new Outage Management System (OMS).
•S4: Government & outside agencies focus
•Collaborating with educational institutions & companies to attract local c&idates for CPAU positions.
•Regional coordination for response to climate change impacts including drought, wildfires,& shift from fossil fuels.
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PRIORITY 2: COLLABORATION KPIs
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Key Performance Indicator Goals
•50% or higher customer awareness for customers affected by CPAU’s key programs/initiatives (S1)
•2021 CMUA/RKS survey results, “Usage of Customer Programs:"53% consulting home audits
•85% or higher “excellent/good” rating in annual customer satisfaction survey (S1)
•2021 CMUA/RKS survey results, “Satisfaction with Customer Programs:"67% overall satisfaction 2021 (compared to 76% in 2018 & 77% in 2016).
•Note the survey followed a series of power outages.
•80% or more actions which were initiated under Collaboration have been completed or are in progress this Fiscal Year (S2, S3)
•>50% complete, <50% in progress.
•Revising KPIs since 2018 adoption.
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PRIORITY 2: COLLABORATION STATISTICS
14
CPAU customer ratings decreased during the end of the p&emic. However, ratings
were still slightly higher than statewide averages (according to CMUA survey)
IR ~e CPAU ''Excellent" ,on Providing IReHabl,e IEllectrk Service
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~CITY OF
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PRIORITY 3
TECHNOLOGY
OCTOBER 12, 2022 www.cityofpaloalto.org
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PRIORITY 3: TECHNOLOGY MISSION & STRATEGIES
16
Mission
Invest in & utilize technology to enhance the customer experience & maximize operational efficiency.
Strategies
•S1: Finalize & implement technology road map to clearly identify CPAU’s short-term & long-term goals, reflect customer & operational needs, prioritize projects & guide decisions.
•S2: Deploy AMI to increase reliability, enhance customer service, & improve response time.
•S3: Invest in technology infrastructure to enhance customer engagement & satisfaction.
•S4: Implement technologies to improve response time, security & operational efficiency.
•S5: Ensure & empower employees with current technologies to perform work efficiently.
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PRIORITY 3: TECHNOLOGY ACCOMPLISHMENTS, INITIATIVES, KPIs
17
Accomplishments from 2019 thru FY 2022
•MyCPAU-new customer engagement & account management website -Apr’20 (S3)
•City completed phase 1 of SAP ERP upgrade –Dec ‘21 (S1)
•Installed AMI base stations & meter data collectors –Aug’22 (S2)
Initiatives in Progress
•Complete engineering design for fiber backbone & fiber-to-the premise –Oct’22 (S3)
•Implement S/CAP initiatives: EV infrastructure, Heat Pump Water Heaters –Jan’23 (S3)
•Phase 2 of SAP upgrade including on-bill financing & business process automation –Jan-Jun’23 (S1)
•Deploy 3,000 advanced electric, gas & water meters during beta phase -Jan-Mar‘23(S2)
•Implement new outage management system with enhanced notifications –Jun’23 (S3)
•Migrate Electric Utility to new ESRI GIS system –Jun’23(S4)
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PRIORITY 3: TECHNOLOGY KPIs
18
Key Performance Indicator Goals
•Increase MyCPAU customer website users 10% utilization by 5% each year
•Paperless tools for field support staff: 50% by Dec 2018 / 90% by Dec 2019
MyCPAU FY 2020 FY 2021 FY 2022 Y/Y % Goal
1. Utilities Accounts Registered (Active)19,604 22,618 23,828
Y/Y % Change -15.4%5.3%5%
2. # of Paperless Utilities Accounts 5,096 6,696 7,195
Y/Y % Change -31.4%7.5%10%
Division FY 2019 FY2020 FY 2021 FY 2022
Engineering 25%33%40%50%
Operations 50%65%65%75%
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PRIORITY 3: TECHNOLOGY ROADMAP
19~CITY OF
~PALO ALTO
2025+
Utility Bill Redesign
Customer Information System
GIS ESRI
Advanced Metering Infrastructure, Time of Use Rates
Demand Energy Response: EV, HPWH
MyCPAU -Leak Detection, Outage Map
2023
Outage Management System
Fiber Management System
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PRIORITY 4
FINANCE & RESOURCE OPTIMIZATION
OCTOBER 12, 2022 www.cityofpaloalto.org
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PRIORITY: FINANCE & RESOURCES
21
Mission
We must manage our finances optimally & use resources efficiently to meet our customers’ service priorities.
Strategies
•S1: Review & update (as needed) Water/Gas/Wastewater infrastructure maintenance & replacement program & establish regular reporting for senior management & policy makers
•S2: Develop financial planning processes that provide stability & clear communication of service priorities & the cost of achieving those priorities.
•S3: Review & update (as needed) Electric infrastructure maintenance & replacement program & establish regular reporting for senior management & policy makers
•S4: Achieve a sustainable & resilient energy & water supply to meet community needs
•S5: Engage stakeholders & define CPAU’s role in supporting & facilitating community resiliency
~CITY OF
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PRIORITY 4: FINANCE ACCOMPLISHMENTS
22
Accomplishments from 2019 thru FY 2022
•(S1) –Developed & began delivering an infrastructure report once per year for each utility as part of the quarterly report.
•(S2) –Completed a water benchmarking study, brought on consultants who can complete future studies
•(S2) –Established & funded capital improvement reserves for two utilities
•(S4) –Adopted an Electric Integrated Resource Plan & did several studies of recycled water culminating in an agreement with Valley Water
•(S5) –Held resiliency workshops with the community & completed several follow-up actions
~CITY OF
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PRIORITY 4: FINANCE INITIATIVES, & KPIs
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Initiatives in Progress
•(S1) –Evaluating sewer system replacement rates against needs identified in investment plan, developing plan to increase investment
•(S2) –Improving capital budgeting practices to reduce impact of capital investment variability on rates & reserves
•(S3) –Commencing an electric grid modernization effort, starting with a study targeted for completion in 2022
•(S4) –Collaborating on various inter-departmental efforts (Sustainability & Climate Action Plan, OneWater Plan)
•(S5) –Pursuing second transmission line to increase resiliency, undergrounding of lines in the Foothills to mitigate potential wildfire risks
Key Performance Indicator Goals (optional)
•Maintain average (e.g.median) or below residential & commercial utility bills as compared to surrounding benchmark utilities & communities.
•Capital investment & maintenance plans established & up to date for all utilities (8 plans)
•Complete 100% of planned capital replacement per long-term investment plan
•Complete 100% of planned maintenance annually per maintenance plan
~CITY OF
~PALO ALTO
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PRIORITY 4: FINANCE STATISTICS
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Status of maintenance & capital plans:
Utility Capital Plan up to date?Maintenance Plan up to date?
Electric Update in progress Update in progress
Gas
Water Update in progress
Wastewater Update in progress
$500
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Palo Alto Monthly Residential Bill Comparison
T Redwood
City T Mountain
View
-Refuse -Gas -Water -Electric -Wastewater - - -Non-PA Average
~CITY OF
~PALO ALTO
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Presenter: Dean Batchelor
Moderator: Alex Harris
P1 Lead: Anna Vuong
P2 Lead: Catherine Elvert
P3 Lead: Dave Yuan
P4 Lead: Jonathan Abendschein
CITY OF
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ALTO
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