HomeMy WebLinkAboutStaff Report 2301-0857Item No. 3. Page 1 of 3
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Utilities Advisory Commission
Staff Report
From: Dean Batchelor, Director Utilities
Lead Department: Utilities
Meeting Date: May 3, 2023
Staff Report: 2301-0857
TITLE
Discussion and Presentation of Utilities Strategic Plan Implementation
EXECUTIVE SUMMARY
This meeting is part of an ongoing discussion on the implementation of the 2018 Utilities
Strategic Plan (Staff Report No. 9022)1. The Utilities Strategic Plan identified four high priority
focus areas:
1. Workforce;
2. Collaboration;
3. Technology; and
4. Financials
DISCUSSION
The Utilities Strategic Plan provides a map for implementing priorities, strategies, and actions
which aligns with the Palo Alto Utilities’ Mission of Providing Safe, Reliable, Environmentally
Sustainable and Cost-Effective Services. The plan is comprised of four priorities reflecting the
needs of the organization and customers, and steps to help meet these needs. Each of the four
priorities contain multiple strategies and detailed actions.
Priority #1- Workforce
We must create a vibrant and competitive environment that attracts, retains, and invests in a
skilled and engaged workforce.
The City of Palo Alto Utilities (CPAU), along with other utilities providers throughout the state
and country, struggle with attracting and retaining a skilled workforce. For Palo Alto, this is even
more complicated as the cost of living and/or relocating to the Bay Area is among the highest in
the nation. The Workforce priority reflects the need to improve retention and recruitment efforts
1 Staff Report 9022 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-
manager-reports-cmrs/year-archive/2014/final-staff-report-id-4547_amendment-no-1-to-cotp-long-term-
layoff.pdf
Item No. 3. Page 2 of 3
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to ensure CPAU has the staff and/or workforce solutions to meet its core service obligations and
customers’ expectations on a long-term basis. The strategies and actions identified are intended
to focus in the areas of retention, recruitment, training and work-life balance.
Priority #2: Collaboration
We must collaborate with internal teams and external stakeholders to achieve our shared
objectives of enhanced communication, coordination, education and delivery of services.
Delivering high quality services to customers is a shared objective across all CPAU services. To
do so in an efficient and consistent manner requires an understanding of customer and
stakeholder needs along with the ability to effectively communicate and coordinate efforts
internally and externally throughout the City. The Coordination priority contains strategies and
actions highlighting certain projects and/or initiatives requiring a high level of collaboration, such
as deployment of distributed energy resources and electrification, to effectively implement.
Additional strategies focus on promoting a culture of collaboration and a systematic process to
ensure two-way communication with customers, within CPAU and throughout the City.
Priority #3: Technology
We must invest in and utilize technology to enhance the customer experience and maximize
operational efficiency.
The increasing convergence of technology, utility services, and customer expectations is driving
significant change in the utility markets. CPAU must embrace technology to further enhance
internal operations and improve efficiency in this changing market. Customer adoption of new
technology applications has dramatically changed interactions between the utility and customer,
and demand for services. The Technology priority includes implementing a technology roadmap
to effectively guide CPAU’s customer and operational technology investments and programs.
Additional Technology strategies include AMI deployment, enhancing customer interaction,
improving field operations, and training employees to ensure effective use of existing and new
tools.
Priority #4: - Financial Efficiency and Resource Optimization
We must manage our finances optimally and use resources efficiently to meet our customers’
service priorities.
Facing an evolving utility business environment, aging infrastructure needs, and sustainability
objectives, CPAU must maintain a competitive position in the market. Remaining financially
Item No. 3. Page 3 of 3
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sustainable and competitive in the market while optimizing resources is key to maintaining and
enhancing value to customers. Strategies in this Priority focus on proactively renewing and
managing CPAU’s infrastructure, continuously improving financial processes, enhancing
infrastructure maintenance programs, defining CPAU’s role in community resiliency, and
achieving sustainable energy resource and water supply plans.
Progress on implementing these strategies or actions are reported as follows:
1. Not started
2. In progress
3. Completed
Over time, some strategies and actions may change and become obsolete, modified, or newly
added. These types of changes are reported as follows:
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
Additionally, for detailed actions, staff tracks how the actions align with each of the following
Palo Alto Utilities’ Missions:
(S) = Safety
(R) = Reliability
(E) = Environmental sustainability
(C) = Cost-effective services
To maintain regularity for these updates, staff recommends reporting updates annually each
October, for the most recently completed fiscal year end period.
ATTACHMENTS
Attachment A: Presentation
APPROVED By:
Dean Batchelor, Director of Utilities
Staff: Dave Yuan, Strategic Business Manager
Anna Vuong, Senior Business Analyst
Catherine Elvert, Communications Manager
Jonathan Abendschein, Assistant Director of Utilities
May 3, 2023 www.cityofpaloalto.org
UTILITIES STRATEGIC PLAN
FY23 Progress Update
(07/01/22-12/31/22)
Staff: Anna Vuong; Catherine Elvert,
Dave Yuan and Jonathan Abendschein
.CITY OF
-PALO ALTO
IMPLEMENTATION
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The Utilities Strategic Plan (USP) was adopted in 2018 to meet Palo Alto Utilities’ Mission of providing (S)afe, (R)eliable, (E)nvironmentally sustainable and (C)ost-effective services.
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 4.1
Strategy 4.2
Action 1.1.1
Action 1.1.2
Action 1.1.3
Action 4.1.1
Action 4.2.1
Action 4.2.2
Mission:
(S)afe;
(R)eliable;
(E)nvironmentally
Sustainable;
(C)ost-Effective
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HIGHLIGHTS FOR FY 2023
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•Changes
•Tags for mission and strategies
•(S) = Safety
•(R) = Reliability
•(E) = Environmental sustainability
•(C) = Cost-effective services
•Other updates (KPI, new strategies or initiatives)
•Ongoing: Updates for each fiscal year to be provided to UAC annually
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PRIORITY 1
WORKFORCE
May 3, 2023 www.cityofpaloalto.org
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.
(S, R, E)
•S2: Create a workplace that attracts & retains skilled employees. (S, R, E)
•S3: Evaluate & consider alternative workforce solutions to achieve organizational business objectives. (R)
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PRIORITY 1: WORKFORCE ACCOMPLISHMENTS
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Accomplishments
•Established a system operators training program (S1)
•Developed training & career progression path for water/gas/wastewater engineering (S3)
•Created position vacancy tracking system to assist HR. Established HR Department Liaisons to help
speed up recruitments.(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 four new Electric Engineers from Cal Poly San Luis Obispo (S2)
•Implemented remote work schedule for specific workgroups (S3)
•Conducted employee satisfaction survey (S2)
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PRIORITY 1: WORKFORCE INITIATIVES
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Initiatives in Progress
•Apply training & career path template to other divisions (S1)
•Complete promotion readiness evaluations (S2)
•Explore digital recruitment ads (S2)
•Work on ways to share team-building ideas (S3)
•Continue exploring daycare options (S3)
•Continue exploring retention 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 of filled positions, 197)
•90% of all positions filled annually; 100% of critical positions filled within 90 days
Turnover CY 2020 CY 2021 CY 2022
Separations 25 21 25
Vacancies 43 45 57
Turnover Rate 13%11%13%
Percentage Filled CY 2020 CY 2021 CY 2022
Filled 201 200 191
Authorized FTE 244 245 248
Positions Filled 82%82%77%
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PRIORITY 1: WORKFORCE STATISTICS
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25
20
15
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10
5
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3 3
0 I I 2 2
I I
Administration
I
Electric Engineering
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Electric Operations WGW Engineering
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WGW Operations Resource Management Customer Service &
Support
■ CY2020
■CY2021
■ CY2022
PRIORITY 2
COLLABORATION
May 3, 2023 www.cityofpaloalto.org
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. (E, C)
•S2: Strengthening coordination & integration across City departments aligns Utilities & City goals while
improving performance & efficiency. (S, R, E, C)
•S3: Fostering a culture of cooperative work within Utilities improves productivity & awareness &
understanding of our common goals. (S, R, E, C)
•S4: Collaborating with government, trade, & regional agencies enhances our sphere of influence, allows us
to identify common ground, & leverage economies of scale. (S, R, E, C)
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PRIORITY 2: COLLABORATION ACCOMPLISHMENTS
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S1: Community focus
•Began the Advanced Heat Pump Water Heater (HPWH) program as a key priority in the S/CAP to meet community greenhouse gas
(GHG) emissions reductions (contract approval, work with marketing consultant). (Fall-Winter ’22)
•Hosted a community workshop on home electrification alternatives, focused on HPWH, plus EV/E-bike alternatives. (Oct ‘22)
•Hosted community workshops for the One Water Plan. (Fall-Winter ’22)
•Implemented enhancements to MyCPAU to make it easier for customers to pay their bills online, access energy, water, &
electrification tools (EV & solar cost estimators, WaterSmart) with a single sign-on. (Summer-Winter ’22)
•Refashioned website navigation and page flows to streamline customer entry & experience in accessing programs on website =
“one-stop shop.” (Winter ’22)
S2: Interdepartmental focus
•Utilities & Planning/Development Services collaborated to develop new Green Building (Reach Code)requirements for the 2023-
2025 building code cycle.Council approved in November 2022, effective January 2023. (Fall ‘22)
•*Note, held a series of community stakeholder meetings for involvement & feedback.
•Utilities & Planning/Development Services (PDS) collaborated to create an instant HPWH permitting process. PDS staff time to
process a HPWH permit application decreased from 0.5 hour (hr)/permit to 0 hr/permit for at least 50% of permit applications.
(Winter ‘22)
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PRIORITY 2: COLLABORATION ACCOMPLISHMENTS
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S3: Intradepartmental focus
•Initiated beta phase installation of Advanced Metering Infrastructure (AMI) for electric, gas, & water meters
in residential areas of the City. Collaboration between Utilities engineering, operations, billing, customer
service,communications, & customer programs to facilitate customer outreach, operational efficiency. Installed
1,100 meters to-date. (Fall ‘22)
•Implemented single sign-on to MyCPAU for programs such as WaterSmart involved collaboration between customer
service, customer programs (UPS), billing. (Fall ‘22)
S4: Government & outside agencies focus
•Fall-Winter 2022: Participated in ongoing statewide Reach Codes Team meetings. Leadership positions &speaking
engagements with local government coalitions, non-profit organizations, & advocacy groups to facilitate ease of
adoption & implementation of new Reach Codes. (Fall-Winter ’22)
•Collaborated with educational institutions such as Cal Poly San Luis Obispo, Sacramento State and San Jose State for
recruitment purposes.Successful in hiring four Electric Engineers from Cal Poly. We actively post our jobs to external
sites including Indeed, Jobs Available, Handshake (29 Colleges), Climatebase Jobs, Energy Central, and through
agencies such as the Northern California Power Agency (NCPA), Northwest Public Power Association (NWPPA) and
American Public Power Association (APPA). (Fall-Winter ’22)
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PRIORITY 2: COLLABORATION INITIATIVES
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Initiatives in Progress
•S1: Community focus
•Engage customers with new Outage Management System for enhanced notification & communication.
•Spread awareness about the customer benefits of Advanced Metering Infrastructure (AMI) such as improved
efficiency for energy and water usage, leak detection & other anomalies.
•S2: Interdepartmental focus
•Continue collaboration with Planning & Development Services on Reach Codes development.
•Working with Public Works Department to identify electrification potential in City facilities.
•S3: Intradepartmental focus:
•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 candidates for CPAU positions.
•Regional coordination for response to climate change including drought, wildfires, shift from fossil fuels.
•Continued collaboration on legislative and regulatory items with NCPA, CMUA, and other industry partners.
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PRIORITY 2: COLLABORATION KPIs
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Key Performance Indicator Goals
•Revising KPIs since 2018 adoption.
•Note:could not compare results to previous years due to change in CMUA/survey consultant. Recalibrating metrics for success.
•(S1)50% or higher customer awareness for customers affected by CPAU’s key programs/initiatives
•CMUA Key Account & Business Customer Survey results = 66.7% reported "very likely" would recommend City's energy & water
efficiency programs to colleague or friend
•Last survey of residential customers (2021) “Usage of Customer Programs" = 53% for consulting home audits
•(S1)85% or higher “excellent/good” rating in annual customer satisfaction survey
•CMUA Key Account & Business Customer Survey results = 78.7%
•8.5 % point increase compared to statewide municipal customers surveyed (70.2%)
•Over one-half (58.3%) believe their utility is either "among the best" or "above average" compared to other service providers they use.
•2% higher compared to statewide municipal customers surveyed (56.3%)
•Among the 19.6% CPAU commercial customers assigned an account manager, the majority (85.7%) reported satisfaction with business
customer management.
•Nearly ¾ respondents (71.4%) provided "excellent" ratings on overall job key account advisors do for their organization.
•(S2, S3)80% or more actions which were initiated under Collaboration complete or are in progress this Fiscal Year.
•Close to 100% of actions complete or in progress. Updating action items to reflect new and ongoing priority initiatives.
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PRIORITY 3
TECHNOLOGY
May 3, 2023 www.cityofpaloalto.org
PRIORITY 3: TECHNOLOGY MISSION & STRATEGIES
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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. (R, E)
•S2: Deploy AMI to increase reliability, enhance customer service, & improve response time. (R, E, C)
•S3: Invest in technology infrastructure to enhance customer engagement & satisfaction.(S, R, E, C)
•S4: Implement technologies to improve response time, security & operational efficiency.(S, R, E, C)
•S5: Ensure & empower employees with current technologies to perform work efficiently. (S, R, C)
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PRIORITY 3: TECHNOLOGY ACCOMPLISHMENTS, INITIATIVES, KPIs
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Accomplishments from 2019 thru FY 2022
•Implemented MyCPAU-new customer engagement & account management website -Apr’20 (S3)
•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 –Jun’23 (S3)
•Implement S/CAP initiatives: EV infrastructure, Heat Pump Water Heaters –Jan’23 (S3)
•Implement Phase 2 of SAP upgrade including on-bill financing & business process automation –Jun’23 (S1)
•Deploy 2,000 advanced electric, gas & water meters during beta phase - May‘23(S2)
•Train Customer Service & Meter Shop Groups on AMI tracking systems (RNI & Compass) Apr'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
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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
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2025+
Customer Informat ion System
Fi1ber-to-tlhe-Premi1ses
GIS IESR I
202.4-2025
Advanced !Metering Infrastructure, Time of Us,e Rat,e·s
De 1mand Energy H,esponse: EV, HPWH, IPV
M CPAU -Interval Data; Water Smart -Leak Detection
2023,
Outage Management Syste m1
Mobi1lle Too lls for Operati ons
Fiber Manage 1ment System
PRIORITY 4
SUSTAINABILITY, FINANCE, AND INFRASTRUCTURE
May 3, 2023 www.cityofpaloalto.org
PRIORITY: SUSTAINABILITY, FINANCE, AND INFRASTRUCTURE
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Important changes to this priority
•Update outdated strategies and actions from 2018 plan to reflect current utility
objectives
•Change name of priority itself to better reflect current utility objectives
•Add new strategies and actions to replace those completed from 2018 plan
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PRIORITY: SUSTAINABILITY, FINANCE, AND INFRASTRUCTURE
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Mission
We must manage our finances optimally & use resources efficiently and sustainably to meet our customers’ service priorities.
Strategies (Deleted)
Deleted obsolete or completed 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
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PRIORITY: SUSTAINABILITY, FINANCE, AND INFRASTRUCTURE
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Strategies (New)
New Strategies added to better reflect current Utility objectives
•S1 (New): Maintain and enhance infrastructure maintenance and investment programs (S, R, C)
•S2 (New): Create and implement an efficient, sustainable energy supply plan, including accounting for load growth related to Sustainability and Climate Action Plan (S/CAP) goals (S, R, E)
•S3 (New): Create and implement an efficient, sustainable water supply plan for a changing climate (S, R, E)
•S4 (New): Develop and implement cost-efficient, electric and gas infrastructure transition plans to manage load shifts related to S/CAP goals and to modernize infrastructure to manage and use new technologies (S, R, E, C)
•Includes the following action, among others: Complete and implement an electric reliability and resiliency strategic plan
•S5 (New): Develop and implement a gas utility financial transition plan to manage potential rate impacts and equity issues related to S/CAP goals (R, E, C)
•S6 (New): Partner on an inter-departmental assessment of S/CAP funding needs and potential funding sources, including assessing utility rate impacts and other related utility impacts (E, C)
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PRIORITY: SUSTAINABILITY, FINANCE, AND INFRASTRUCTURE
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Strategies (New) ...continued from prior page
Replaced/New Strategies to better reflect current Utility objectives
•S7 (New): Partner on implementation of S/CAP Work Plan. (R, E)
•Includes the following actions, among others:
•Complete an electric vehicle strategic plan to guide infrastructure investment
•Partner with other Departments to establish customer-friendly programs to help residents and businesses electrify their buildings
and vehicles
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PRIORITY 4: ACCOMPLISHMENTS
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Accomplishments July 2022 through December 2023
•(S2) –Kicked off initial Electric Integrated Resource Plan discussions with UAC
•(S3) –Held two community workshops on the OneWater Plan, plan currently in development
•(S4) –Initiated discussions of gas infrastructure transition plan study, added budget requests to FY 2024 budget
•(S4) –Completed grid modernization study
•(S5) –Initiated discussions of gas financial transition plan study, added budget requests to FY 2024 budget
•(S6) –Wrote first draft of scopes and began building internal consensus on study approach
•(S7) –Partnered on drafting S/CAP Work Plan for review by S/CAP Committee
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PRIORITY 4: FINANCE INITIATIVES, & KPIs
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Initiatives in Progress
•(S2) –Analysis supporting the Electric Integrated Resource Plan is in progress
•(S3) –Consultant analysis to complete OneWater Plan currently in progress
•(S4) –FY 2024 budget requests under consideration, developing staffing plan for study
•(S4) –Preparing for upgrade and modernization of first neighborhood under electric grid modernization plan
•(S4) –Engaging S/CAP Committee on scoping for Reliability and Resiliency Strategic Plan
•(S5) –FY 2024 budget requests under consideration, developing staffing plan for study
•(S6) –Drafted S/CAP Funding Study scope, continuing internal review and preparing for S/CAP Committee review
•(S7) –Partnering with other departments to get Council approval of S/CAP and S/CAP Work Plan, launch Advanced
Heat Pump Water Heater Pilot Program, develop new building electrification programs, and enhance existing
programs.
Key Performance Indicator Goals
•To be updated, still in development
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Presenters
Intro: Dean Batchelor
P1 Workforce Lead: Anna Vuong
P2 Collaboration Lead: Catherine Elvert
P3 Technology Lead: Dave Yuan
P4 Sustainability, Finance and Infrastructure Lead: Jonathan Abendschein
CITY OF
PALO
ALTO