GWP Strategy Presentation

8/13/2019 GWP Strategy Presentation

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THE DIRECTION

STRATEGIC PLANNING PROCESS

2009 - 2014
http://www.glendalewaterandpower.com/default.aspx


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The Big Picture

Before we built our plan,

we examined the big picture

We discussed how majortrends could impact thestakeholders in GWPsmarketplace over the next fiveyears.

We charted the major threats

and opportunities that thesestakeholders could create inour marketplace.


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We identified trends INCREASING WORLDWIDE ECONOMIC UNCERTAINTY

INCREASING GROWTH IN CALIFORNIA AND THE WORLD

HIGHER STANDARD OF LIVING AND SERVICES

INCREASING CONCERN FOR HUMAN HEALTH AND THE ENVIRONMENT

INCREASING CLIMATE CHANGE

SMALLER WORKFORCE SHIFTING TO NEW ECONOMY

INCREASING SAFETY AND SECURITY

INCREASING MAINTENANCE, REPAIR, OR REPLACEMENT OF INFRASTRUCTURE


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We identified stakeholders


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Major Future Opportunities

1. Our customers conserve more water and energy

2. Customers utilize more recycled water and solar

3. Customers use real-time information through AMI4. GWP gains more green energy to reduce carbon

footprint

5. GWP sells more power outside the City

6. GWP reduces its peak loads

7. GWP receives positive publicity and support

8. Joint resource projects increase GWPs access topower supplies

9. Advanced technologies provide new efficiencies and

solutions to GWP while creating potential new business


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We decided that our plan mustconsider thesepriorities1. WATER SUPPLY

Maximize the production of local water resources andthe efficiency of water use

2. POWER SUPPLYEnsure reliable power supply under severelegislative/regulatory controls and restrictions througha portfolio of resources that includes a reconfiguredGrayson Power Plant

3. CUSTOMER SERVICEAchieve high customer satisfaction level by increasingthe value of all GWP programs and services

4. RATESAchieve water and electric rates that are at the medianof comparable utilities in Southern California

5. AGING INFRASTRUCTUREAssure the highest achievable service reliability bycontinuously improving and maintaining the GWPphysical plant, electric and water facilities


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Plan priorities

6. WORK FORCEHire, develop, and retain a safe, highly skilled,dedicated, and customer-focused work force

7. SYSTEMSUtilize new and existing information systems

and technologies that reduce GWPs costs,enhance customer service, and increaseoperational effectiveness

8. CITY OF GLENDALECollaboration to improve both the Citys andGWPs efficiency and public image

9. LEGISLATION AND REGULATIONInfluence local, state, and federal legislationand regulations to benefit GWP's operations


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THE GWP DIRECTION

Mission

Vision

Values Key Result Areas

Goals

Initiatives Scoreboard


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To be your trusted

community utility

Our MissionDescription of the successes GWP will have achieved at the end of 5 years


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Our VisionDescription of the successes GWP will have achieved at the end of 5 years

To deliver reliable, high quality,

environmentally-sensitive,

and sustainable

water and power servicesto our customers

in a caring and

cost-competitive manner,

while creating a stimulating

and rewarding work experience

for our employees


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Our ValuesPrinciples and beliefs that are the bedrock for GWPs existence and the decision criteria

for major programs, policies, and expenditures

Dedication to customer

service

Trustworthy andrespectful

Ownership

Teamwork

Do it right!

Continuous improvement


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Key Result AreasThe performance areas where GWP must achieve measurable success over the next 5 years

WATER SUPPLY

POWER SUPPLY

CUSTOMER SERVICE

RATES

WATER INFRASTRUCTURE

POWER INFRASTRUCTURE

WORKFORCE

SYSTEMS

CITY OF GLENDALE

LEGISLATION & REGULATION


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GoalsMeasurable targets that describe the components of excellence in each GWP Key Result Area (KRA)

KRA: WATER SUPPLY1. Produce 3,856 AFY from Verdugo

Basin by 2014

2. Serve 2,500 AFY recycled waterby 2013

3. Institute a 2.5% PBC-like chargeto fund water conservationmeasures by Dec 2010

4. Reduce water usage by 7% over2006 base year by 2014

KRA: POWER SUPPLY1. Reduce electrical usage by 7%

by 2014

2. Increase GPP efficiency to


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GoalsMeasurable targets that describe the components of excellence in each GWP Key Result Area (KRA).

KRA: POWERINFRASTRUCTURE

1. Reduce number of outages to

less than 25 per year by June2. Upgrade transmission system

to 69 kV by June 2014

3. Convert distribution feedersfrom 4 kV to 12 kV by 2020

4. Replace all electromechanicalrelays with state-of-the-artrelays by 2018

5. Implement effective assetmanagement by 2013

KRA: WATERINFRASTRUCTURE

1. Reduce unaccounted-for

water to 5% by June 20112. Replace all small metersinstalled before 2004 by June2011

3. Replace/rehabilitate 25 milesof pipe by 2014

4. Implement effective assetmanagement by 2013


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KRA: WORKFORCE

1. Continually improve jobsatisfaction of our employees

beginning Nov 20092. Increase annual workforce

availability to 87% by 2014

3. Have


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KRA: CITY OF GLENDALE1. Improve communications with customers,

City Council, and City Departmentsbeginning Nov 2009

2. Determine optimum value of transfer to

provide mutual benefits to City and GWP by2014

3. Implement communications vehicles toimprove GWPs public image beginning2011

4. Implement new collaborative ventures withCity departments beginning Dec 2011

KRA: LEGISLATION &REGULATION

1. Continue compliance with state andfederal regulatory requirements

beginning Feb 20092. Establish and continue on-going

relationships with state and federallegislators and regulators beginningJan 2010

3. Develop specific GWP legislative

strategy and initiatives beginningJune 2010

4. Provide quarterly reports on majoractivities and successes beginningJan 2010


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KRA 1 WATER SUPPLY 2009 2010 2011 2012 2013 2014

GOAL 1.1 Produce 3,856 AFY from Verdugo Basin Kavounas Sep Dec

INITIATIVE 1.1.1 Mo' wells Takidin Foothill well in-service Sep

Rockhaven well in-service Jun"Other" well in-service Jun

INITIATIVE 1.1.2 BAM Better Asset Management) Kavounas Hire advisor/business consultant JunIn house training Oct

Create asset register DecCIP validation Mar

Maintenance procedures/automation Jun

Operations manual/documentation Dec

GOAL 1.2 Serve 2,500 AFY recycled water Kavounas Jan Dec

INITIATIVE 1.2.1 RW to the max Takidin Expansion Master Plan Jun

Financial analysis Dec

Ordinance modification JunDesign and build projects Jan

GOAL 1.3 Institute a 2.5% PBC-like charge to fund water conservation measures Kavounas Dec

INITIATIVE 1.3.1 Redoing Water Rates Kavounas Financial analysis Jun

Ordinance modification Dec

GOAL 1.4 Reduce water usage by 7 percent over 2006 base year Bassin Jun Dec

INITIATIVE 1.4.1 Water Is Life, Don't Waste It Kuennen Market water savings programs to save 1% per year Jun

Enhance/modify water savings programs to improve savings Dec

KRA 2 POWER SUPPLY 2009 2010 2011 2012 2013 2014

GOAL 2.1 Reduce electrical usage by 7% Bassin Jun Dec

INITIATIVE 2.1.1 Save a Little, Save a Lot Kuennen Market energy efficiency programs to save 1% per year Jun Jun Jun Jun Jun Jun

Enhance/modify EE programs to improve savings Dec Dec Dec Dec Dec Dec

GOAL 2.2 Increase GPP effic iency to


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KRA 3 CUSTOMER SERVICE 2009 2010 2011 2012 2013 2014

GOAL 3.1 Consistently achieve above average customer satisfaction scores from th Vallier Dec

INITIATIVE 3.1.1 Customer Contact Surveys Benson Conduct quarterly customer contact survey JunINITIATIVE 3.1.2 GWP Customer Surveys Kuennen Conduct GWP annual customer surveys Oct Oct Oct Oct Oct OctINITIATIVE 3.1.3 Customer Service Training Cline Provide 4-6 hours customer focused training / year Dec Dec Dec Dec Dec DecINITIATIVE 3.1.4 Migration of Trouble Orders to CIS Herman System Set-up Jun

Training Jul

GOAL 3.2 Ensure that all affected customers and public are consistently notified of Bassin DecINITIATIVE 3.2.1 Mass Notification System Kuennen Implement system Oct

Arrange for no tification of plan ned o utage s NovArrange for no tification of unp lanned o utage s and est. time o f

restorationDec

GOAL 3.3 Restore minor power outages within 10 minutes and major outages within Abueg Jan Dec

INITIATIVE 3.3.1 SCADA System Germond Factory Acceptance Test Feb

Delivery Apr RFP for Installation FebInstallation Contract Award Mar

Installation SepSite Acceptance Test / Implementation Oct

INITIATIVE 3.3.2 Fiber SONET Installation Germond Delivery FebInstall Apr Test and Commission May

INITIATIVE 3.3.3 Fuse Coordination on Feeders Abrari No. 6 Montrose Jun No. 8 Montrose Jun

No. 7 Scholl DecNo. 7 Columbus DecNo. 2 Western JunNo. 9 Tropico Jun

INITIATIVE 3.3.4 Glorietta Substation Upgrade Abrari Comple te prequalification of bidders Mar Submit RFP to Council Mar

Community meeting Mar CEQA JunConstruction Oct

Operate upgraded substation MayINITIATIVE 3.3.5 Grandview Substation Upgrade Abrari Start design Sep

Comple te studies and specifications JunConstruction OctOperate upgraded substation May

INITIATIVE 3.3.6 Disturbance Monitors Installation Abrari Operate upgraded Kellogg Dec Operate upgraded Rossmoyne Jun

INITIATIVE 3.3.7 Outage Management System Abueg Prepare specifications Jul Vendor se lection Dec

Delivery and installa tion JunImplementation Jul

GWP STRATEGY MONITORING WORKSHEET


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KRA 4 RATES 2009 2010 2011 2012 2013 2014

GOAL 4.1 Establish water rates at or below 80% of the average rates in the area Kavounas Dec

INITIATIVE

4.1.1 Redoing Water Rates Kavounas Financial analysis Jun JunOrdinance modification Dec DecINITIATIVE 4.1.2 BAM (Better Asset Management) Kavounas Hire advisor/business consultant Jun

In house training OctCreate asset register Dec

CIP validation Mar

Maintenance procedures/automation Jun

Operations manual/documentation Dec

GOAL 4.2 Reduce electrical rates to 35% below SCE Steiger Jan Dec

INITIATIVE 4.2.1 Renegotiate Scholl Canyon Gas Steiger Engage principals in negotiation Jan

Develop long-term strategy for landfill gas Mar

Litigate existing contract JunRetire associated Grayson units Dec

INITIATIVE 4.2.2 Alternative Use for Landfill Steiger Initiate feasib ility study Jun

Create political/community support Jun

Implement trash to energy project Dec

INITIATIVE 4.2.3 PGE Contract Reconfiguration Lins Litigate existing contract JanINITIATIVE 4.2.4 Transfer Stabilization at 2008 Levels Steiger Finalize rate analysis Sep

Implement public education programs DecINITIATIVE 4.2.5 GWP Revenue Increase Steiger Finalize portfolio study Sep

Operate trading group with new metr ics JanINITIATIVE 4.2.6 Customer Service Cost Plan Davis Bill and collect cost allocation for services Dec

GOAL 4.3 Increase annual electrical wholesale revenue to $10M Lins Jan Dec

INITIATIVE 4.3.1 Project Optimize Lins Review historical performance May

C ata lo gu e a ll h ist orica l a nd kn own tra din g s tr ate gi es Ju l

Input all strategies into metrics model JanDecision on wholesale vs. retail allocation Jan

Acquire al l necessary t rading tools and staff Jul

Wholesale net trading revenue $3 Million Jan

Wholesale net trading revenue $5 Million JanWholesale net trading revenue $10 Million Dec

GOAL 4.4 Reduce electrical system losses to


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KRA 5 WATER INFRASTRUCTURE 2009 2010 2011 2012 2013 2014

GOAL 5.1 Reduce unaccounted-for water to 5% Kavounas Jul Jun

INITIATIVE 5.1.1 (BAM) Better Asset Management Kavounas Hire advisor/business consultant Jun

In house training Oct

Create asset register DecCIP validation Mar

Main tenance procedures/automation JunOperations manual/documentation Dec

INITIATIVE 5.1.2 Fix the Pipes Hayes Re-issue CIP Mar Design and build projects Jul

GOAL 5.2 Replace all small meters installed befo re 2004 Vallier Oct JunINITIATIVE 5.2.1 AMI Fully Implemented Kuennen Award AMI installation contract Sep

AMI fully impleme nted Oct Dec

GOAL 5.3 Replace/rehabilitate 25 miles of pipe Kavounas Jul Jun

INITIATIVE 5.3.1 Fix the Pipes Hayes Re-issue CIP Mar

Design & build projects Jul

GOAL 5.4 Implement effective asset management Kavounas DecINITIATIVE 5.4.1 BAM (Better Asset Management) Kavounas Hire advisor/business consultant Jun

In house training Oct

Create asset register DecCIP validation Mar Main tenance procedures/automation Jun

Operations manual/documentation DecINITIATIVE 5.4.2 City-wide GIS Herman Hire GWP GIS professional Aug

Award RFP c ontra ct to p opu late GIS with GWP system Dec

Implement full GIS use Dec



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KRA 6 POWER INFRASTRUCTURE 2009 2010 2011 2012 2013 2014

GOAL 6.1 Reduce number of outages to less than 25 per year Abueg Jun Jun

INITIATIVE 6.1.1 SCADA System Germond Factory Acceptance Test Feb

Delivery Apr RFP for installation FebInstallation contract award Mar Installation Sep

Site Acceptance Test / Implementation OctINITIATIVE 6.1.2 Fiber SONET Installation Germond Delivery Feb

Install Apr Test and Commission May

INITIATIVE 6.1.3 Fuse Coordination on Feeders Abrari No. 6 Montrose upgraded Jun No. 8 Montrose upgraded Jun

No. 7 Scholl upgraded DecNo. 7 Columbus upgraded Dec

No. 2 Western upgraded JunNo. 9 Tropico upgraded Jun

INITIATIVE 6.1.4 Glorietta Substation Upgrade Abrari Complete prequalification of bidders Mar Submit RFP to Council Mar

Community meeting Mar

CEQA JunConstruction OctOperate upgraded substation May

INITIATIVE 6.1.5 Grandview Substation Upgrade Abrari Start design Sep

Complete studies and specifications Jun

Construction OctOperate upgraded substation May

INITIATIVE 6.1.6 Disturbance Monitors Installation Abrari Operate upgraded Kellogg Dec

Operate upgraded Rossmoyne JunINITIATIVE 6.1.7 Outage Management System Abueg Prepare specifications Jul

Vendor se lection DecDelivery and installation JunImplementation Jul

GOAL 6.2 Upgrade transmission system to 69 kV Abueg Jun Jun

INITIATIVE 6 .2 .1 T ransmiss ion Conve rsion t o 69 kV Abueg Creat e th ree-way t ransmi ssi on (R ossmoyne-Montr ose -Gl or ie tta ) May

Upgrade Montrose-Bel Aire to Montrose-Western Jun

GOAL 6.3 Convert distribution feeders from 4 kV to 12 kV Abueg 2020

INITIATIVE 6. 3.1 St ations Upgrade t o 12 kV Abra ri Comple te Gr andview recons tr uction of circu it s Jun

Comple te Gr andview conver sions - tran sfer of loads O ctUpgrade Grandview Substation to 69kV/12kV Oct

INITIATIVE 6.3.2 Distribu tion Feeders Upgra de to 1 2 kV Abrari Reconstruct Bel Aire service area OctUpgrade 1-2 feeders per year Feb Dec

GOAL 6.4 Replace all electromechanical relays with state-of-the-art relays Abueg Dec 2018

INITIATIVE 6.4.1 Disturbance Monitors Installation Abrari Operate upgraded Kellogg Dec

Operate upgraded Rossmoyne JunINITIATIVE 6.4.2 New Design and Replace Relays Abrari Glendale - Howard Transmission Line May

Rossmoyne - Howard Transmission Line MayGlendale - Fremont Transmission L ine May

Rossmoyne - Scholl Transmission Line MayTropico - Scholl Transmission Line MayTropico - Acacia Transmission Line May

GOAL 6.5 Implement effective asset management Abueg Dec

INITIATIVE 6.5.1 Electr ic Asset Management System Abueg Prepare cost-benefit analysis Dec

Evaluate options (joint system or separate) JunImplement plan DecIntegrate with GIS, AMI and SCADA Dec

INITIATIVE 6.5.2 City-wide GIS Herman Hire a GWP GIS professional AugAward RFP contr act to pop ulate GIS with GWP System DecImplement full GIS use Dec



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KRA 7 WORKFORCE 2009 2010 2011 2012 2013 2014

GOAL 7.1 Continually improve job satisfaction of our employees Steiger Nov

INITIATIVE 7.1.1 Staffing Levels Steiger Re-evaluate long-term resource needs Dec

C reat e ongoing pa rt nership wit h Hu man R esour ces D ecINITIATIVE 7.1.2 Competitive Salaries Cline Review and update job classifications June June

Complete competitive salary study Jan JanImplement educational program for City Council Jan

INITIATIVE 7.1.3 Internal Communications Kuennen New blog Jan

Enhanced website DecINITIATIVE 7.1.4 Continuous Training Cline Perform assessment of current and desirable skills for jobs Jan Jan

Provide an Executive Education Program JuneProvide group internal training classes July

Provide external training classes Jan

Assess eff ectiveness o f training p rograms Dec Dec Dec

GOAL 7.2 Increase annual workforce availability to 87% Bassin Jul DecINITIATIVE 7.2.1 Present and ready to go Cline Provide quarter ly report on availability of personnel Mar

Provide quarter ly report on unavailability MayImplement programs to reach goal Jul

GOAL 7.3 Have


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KRA 9 CITY OF GLENDALE 2009 2010 2011 2012 2013 2014

GOAL 9.1 Improve communications with customers, City Council, and City Departme Steiger NovINITIATIVE 9.1.1 City Council Communications Steiger Create regularly scheduled workshops Jan

Initiate periodic meetings with CC members Mar INITIATIVE 9.1.2 Public Communications Steiger Implement website blog Jan

Implement mass notification system OctImplement GTV6 TV show specific to GWP Jan

INITIATIVE 9.1.3 City Department Communications Steiger Implement periodic update meetings with City departments JunImplemen t ci tywid e scoreboa rd disp lay f or GW P g oal result s Jan

GOAL 9.2 Develop optimium transfer level for mutual benefit Steiger Jan DecINITIATIVE 9.2.1 Create Awareness Bassin Prepare educational materia l JanINITIATIVE 9.2.2 New Revenue Sources Steiger Initatives 8.5.1, 8.5.2, 4.4.3, 4.3.1 Jan

GOAL 9.3 Implement communication vehicles to improve GWPs public image Bassin DecINITIATIVE 9.3.1 Project Outreach Kuennen Evaluate communication vehicles to improve GWP Image Jun

Imp lement a me thodology for iden ti fy ing issues rela ted to image JunImplement plan to inform customers and improve image Dec

GOAL 9.4 Implement new collaborative ventures with City departments DecINITIATIVE 9.4.1 Joint Ventures Steiger Identify opportunities of mutual interest Jun

Develop budget and other implementation requirements JunImplement inter-departmental collaborations Dec

KRA 10 LEGISLATION & REGULATION 2009 2010 2011 2012 2013 2014

GOAL 10.1 Continue compliance with state and federal regulatory requirements Lins Feb

GOAL 10.2 Establish and continue on-going relationships with state and federal legis Lins Jan

GOAL 10.3 Develop specific GWP legislative strategy and initiatives Lins Jan

GOAL 10.4 Provide quarterly reports on compliance, strategies, relationships and ma Lins Jan



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GWP Strategy Scoreboard

The GWP Strategy Scoreboard will be implementedalong with the strategic plan.

This scoreboard will evaluate GWPs progresstowards each goal in the plan.

This assessment will occur on a quarterly basis.

The results will be communicated to the City

Manager, City Council, the Commission, CityDepartments, and GWP employees.

On the next slide is a draft format of this scoreboard.


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KEY

Goal is ahead of schedule OR is exceeding expectationsGoal is on schedule or is meeting expectations

Goal is behind s chedule or is below expectations

KRA & GOALS Due R Q Q Q Q

WATER SUPPLY

1 Produce 3,856 AFY from Verdugo Basin 2014 Kavounas

2 Serve 2,500 AFY recycled water Dec 2013 Kavounas

3 Institute a 2.5% PBC-like charge to fund water conservation measures Dec 2010 Kavounas

POWER SUPPLY1 Reduce electrical usage by 7% 2014 Bassin

2 Increase GPP efficiency to


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KEY

Goal is ahead of schedule OR is exceeding expectations

Goal is on schedule or is meeting expectations

Goal is behind schedule or is below expectations

KRA & GOALS Due R Q Q Q Q

GWP STRATEGY SCOREBOARD

RATES

1Assure that water rates are less than 80% of the highest water rates among the

surrounding municipal utilitiesKavounas

2 Reduce electrical rates to 25% below SCE 2014 Steiger

3 Increase annual electrical wholesale revenue to $10M 2014 Lins

WORKFORCE

1 C ontinually improve job satisfaction of our employees Nov 2009 Steiger

2 Increase annual workforce availability to 87% 2014 Bassin

3 Have


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STRATEGIC PLANNING PROCESS

2009 - 2014

Your trusted

community utility
http://www.glendalewaterandpower.com/default.aspx

GWP Strategy Presentation

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