FINAL REPORT Utility Benchmarking and Organizational Efficiency Review June 13, 2016 CONTENTS Table of Contents Executive Summary ..................................................................................................................................... I Background ................................................................................................................................................ I Scope and Objectives ................................................................................................................................ II Methodology .............................................................................................................................................. II Overall Benchmarking............................................................................................................................ II Best Practices Review .......................................................................................................................... III Findings .................................................................................................................................................... III General Benchmarking ......................................................................................................................... III Best Practices Evaluation ...................................................................................................................... V Introduction ................................................................................................................................................. 1 Scope and Objectives ................................................................................................................................ 1 Methodology .............................................................................................................................................. 1 Overall Benchmarking............................................................................................................................ 1 Best Practices Review ........................................................................................................................... 2 Limitations .............................................................................................................................................. 3 General Benchmarking ............................................................................................................................... 5 Staffing Levels ........................................................................................................................................... 5 Staffing Levels - Water Treatment Only ................................................................................................. 5 Staffing Levels - Wastewater Treatment Only ....................................................................................... 7 Staffing Levels – Sewer Collection Only .............................................................................................. 10 Staffing Levels – Functional Area ........................................................................................................ 10 Organizational Assessment ..................................................................................................................... 12 Organizational Best Practice Index ...................................................................................................... 12 EUM Framework .................................................................................................................................. 22 Financial Management ............................................................................................................................ 27 Financial Performance ......................................................................................................................... 28 Rates and Affordability ......................................................................................................................... 29 Human Resources ................................................................................................................................... 32 Recommendations ................................................................................................................................... 34 Staffing Levels ..................................................................................................................................... 34 Financial – Rate Structure ................................................................................................................... 36 Financial – Miscellaneous Fees and Charges ..................................................................................... 37 Financial – System Development Charge ........................................................................................... 37 FINAL VEOLIA / WSSC Utility Benchmarking and Organizational Efficiency Review / i CONTENTS Strategic Planning ................................................................................................................................ 38 Performance Management .................................................................................................................. 38 Futures Considerations ........................................................................................................................... 38 Climate Variability and Extremes ......................................................................................................... 39 Customer Expectations and Customer Awareness ............................................................................. 39 Rate Structure ...................................................................................................................................... 40 Employee Recruitment and Retention ................................................................................................. 40 Resource Recovery ............................................................................................................................. 41 Regulatory Requirements and Operating Conditions .......................................................................... 42 Stormwater and Watershed Management ........................................................................................... 43 Automated and “Smart” Systems and Data Integration ....................................................................... 44 Customer Service ...................................................................................................................................... 47 Background and Context ......................................................................................................................... 47 Best Practices Evaluation ........................................................................................................................ 47 Call Center ........................................................................................................................................... 48 Billing.................................................................................................................................................... 54 Payment Options ................................................................................................................................. 57 Collections and Revenue Protection .................................................................................................... 59 Performance Management and Training ............................................................................................. 62 Customer Satisfaction .......................................................................................................................... 64 Organizational Effectiveness ............................................................................................................... 66 Procurement .............................................................................................................................................. 70 Background and Context ......................................................................................................................... 70 Best Practice Evaluation .......................................................................................................................... 71 Governance Structure .......................................................................................................................... 73 Processes and Systems ...................................................................................................................... 75 Performance Management .................................................................................................................. 77 Commercial Mindsets, Skills and Knowledge ...................................................................................... 79 Preparation and Identification of Needs ............................................................................................... 81 Execution and Contract Award ............................................................................................................ 84 Vendor Management ........................................................................................................................... 85 Fleet ...........................................................................................................................................................