Planning for Board Involvement May 7, 2014 AWWU Strategic Plan 2014 Planning for Board Involvement May 7, 2014

The AWWU Board is tasked with overseeing the development of the Utility’s Strategic Plan What will our business look like 15 years from now? How can we assure the sustainable future of water and wastewater service? What will benefit our owner’s interest?

Our Strategic Planning Process is cyclical over a two year life. 2) SWOT 1) Vision, Mission, Values 3) Goals 2-year Strategic Plan Cycle 4) Achievements 6) Evaluate and Celebrate! 5) Measurements

Strategic Initiatives We incorporate long term direction from the AWWU Board in the planning effort. Long- term Strategic Direction Strategic Initiatives Board Direction 2) Assess current conditions (SWOT) 1) Confirm Vision, Mission, Values 3) Goals 2-year Strategic Plan Cycle 4) Achievements 6) Evaluate and Celebrate! 5) Measurements

We assess current conditions: Within AWWU: And Externally: Strengths Opportunities Weaknesses Threats

AWWU Mission Statement defines what we do. Supporting the public health, safety, and economic interests of the community by providing quality water and wastewater services in a responsible, efficient, and sustainable manner. EXCELLENCE THROUGH INNOVATION

EXCELLENCE THROUGH INNOVATION Core values reflect our style of doing business. Respect Safety Teamwork Continuous Improvement Integrity Professionalism Humor EXCELLENCE THROUGH INNOVATION

AWWU’s strategy is multidimensional. Service Synergy Stewardship Safety and Satisfaction Sustainability

Service to Our Customers Goal: To Be a Leader in Providing Exceptional Customer Service. Definition: Be responsive to customer needs through respect, understanding, empathy, and knowledge of our services.

Stewardship of the Environment and Public Health Goal: To Protect Public Health and Be Environmentally Responsible. Definition: Provide safe high quality drinking water to our community and provide safe wastewater discharges while enhancing efficiency and environmental stewardship.

Sustainability of Utility Resources and Services Goal: Provide a return to our owners in an amount and form sufficient to attract and retain capital investment necessary to sustain the long-term financial health of the Utility. Definition: Return to owners can be provided in the form of a cash dividend paid directly to the owners or through retained earnings used to enhance the value of owners’ equity. Long term financial health involves providing resources to sustain operations and support new initiatives that increase value to our customers and owner.

Safety and Satisfaction of our people Goal: To Be an Employer of Choice and Create a Desirable Place to Work. Definition: Create a work atmosphere where individuals desire to work and a workplace promoting professional development and personal growth.

Synergy in Our Business Goal: To Optimize and Integrate Business Practices to Promote Utility Sustainability. Definition: Maximize use of existing technologies and optimized data entry by fully integrating IT applications. Expand applicability, accessibility, and employee knowledge of operational information. Pursue sustainability by improving the maintenance, operation, and reliability of the system. Leverage technology while stabilizing expenses at reasonable rates.

The Board provided Strategic Direction from a 2010 retreat Maximize Utility Independence Expand Certificated Service Area Explore formation of a Regional Authority Explore formation of a Stormwater Utility Build recognition of the Quality of AWWU Products and Services Explore increase of drinking water market Encourage Infill and Redevelopment Maintain Strong Asset Management Program

Strategic Initiatives We need to sync the Utility’s Strat.Plan with the Board’s Long-term Direction Long- term Strategic Direction Strategic Initiatives Board Direction 2) Vision, Mission, Values 1) SWOT 3) Goals 2-year Strategic Plan Cycle 4) Achievements 6) Evaluate and Celebrate! 5) Measurements

Next Steps in Strategic Planning Late May: Engage Facilitator June 4: Board considers Long-Term Initiatives July 2: Board considers Goals and Achievements August 6: Board approves Plan for Budget Prep September 3: Board recommends 2015 Budget to Mayor

1) Maximize utility independence by fully implementing authority of Title 31. Complete remaining steps: Personnel rules Contract legal services ERP System Review Title 31 for Recommended modifications Identify impediments to complete implementation Prioritize removal of impediments Establish intermediate objectives

2) Expand certificated areas of service Identify candidate developing areas for most likely AWWU infrastructure needs. Identify policy conflicts – i.e., only go where invited – follow land use planning Identify and contact affected Community Councils to explain process Keep Administration apprised

3) Explore basis of support to form a regional authority. Develop alternative development scenarios Identify critical infrastructure shortcomings Explore regulatory implications Document costs and benefits Prepare white paper on potential expansion Brief mayor on the advantages / disadvantages Set up briefing for leaders of prospective partner communities

4) Explore formation of a Stormwater Utility within AWWU to assume current stormwater utility functions within the MOA Develop alternative development scenarios Explore regulatory implications Identify critical infrastructure shortcomings Identify prospective rates and billing system Prepare white paper on stormwater utility administration Outline pilot project Brief mayor on the advantages / disadvantages Set up briefing for Assembly worksession

5) Build greater recognition of the quality of AWWU drinking water (products and services) Build Marketing/ Communications Plan Survey customer attitudes and perceptions of AWWU products and service. (aka Assess current conditions) Establish goals for public communication Identify target audience(s) Match message / media / audience Produce and distribute the message Resurvey to determine progress.

6) Explore potential of increasing AWWU drinking water market Identify prospective users – Export, manufacturing, Communicate opportunities to AEDC Complete review of independent and consecutive connected systems See Expansion of service area (SI#3)

7) Work with and/or partner with MOA and other stakeholders to create and/or participate in processes that will encourage residential, commercial, and/or industrial infill and redevelopment within the current service area. In other words…

7) Encourage residential, commercial, and/or industrial infill and redevelopment Map locations of non-conforming systems. Map underdeveloped properties with AWWU service. Educate property owners/redevelopers on the requirements for upgrading non-conforming systems. (Water service / I&I) Identify drainage areas within service area not yet identified for sewerage (e.g, lower Hillside, ER) Actively assist in planning redevelopment of Kulis and Airport/Port/ARR. Consider technical support to potential HLB / Mental Health development plans Identify opportunities from review of records of existing connections Foster relationships with builder community to improve development design practices

8) Maintain a strong asset management system. Incorporate Business Case Analysis in CIP/CIB development. Develop maintenance strategies for optimized reliability. Develop utility-wide risk framework. Optimize condition assessment program Develop energy optimization strategy

Achievements Supporting Strategic Initiatives Service Develop maintenance strategies for optimized reliability. (8) Map underdeveloped properties with existing AWWU service.(7) Actively assist in planning redevelopment of Kulis / Airport / Port / ARR / HLB / Mental Health development (7) Communicate Development opportunities to AEDC (6) Sustainability Incorporate Business Case Analysis in CIP/CIB development (8) Optimize condition assessment program (8) Build and Implement Marketing/ Communications Plan (5) Prepare White Paper on Regional Authority Concept (3) Complete Transfer of ERP function (1) Synergy Develop utility-wide risk framework.(8) Stewardship Develop energy optimization strategy (8) Prepare White Paper on Stormwater utility administration (4) Safety and Satisfaction Complete transfer of personnel administration (1)