The URL can be used to link to this page

Home My WebLink AboutResolutions - No. 2017-193RESOLUTION NO. 2017-193 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE CITY OF LOD¡ ELECTRIC UTILITY STRATEGIC PLAN 2017 ======================================================================== WHEREAS, the Lodi Electric Utility (LEU) strategic planning process began in 2014 with an Organization Checkup conducted by Hometown Connections lnternational, LLC, a utility services subsidiary of the American Public Power Association; and WHEREAS, Hometown Connections consultants met with City staff from various departments to access the health of the utility, relative to public power benchmarks, in various areas; and WHEREAS, the results of the Organization Checkup were used as a starting point for a strategic planning process that included input from the City Council, as well as LEU's customer- owners; and WHEREAS, given the familiarity that Hometown Connections had with LEU as a result of the Organization Checkup, Hometown Connections facilitated the LEU strategic planning process; and WHEREAS, Hometown Connections market research partner, GreatBlue Research, performed a customer engagement analysis in 2016 and presented their findings to the City Council; and WHEREAS, these findings were incorporated into the strategic planning process with multiple meetings in an open and transparent manner, with decisions and priorities shared broadly with stãff, the City Council, and the community, allowing for participation by all stakeholders; and WHEREAS, the attached report includes the input received from the meetings held since 2014, and staff recommends that the City Council approve the City of Lodi Electric Utility Strategic Plan 2017. NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby approve the City of Lodi Electric Utility Strategic Plan 2017 , attached hereto as Exhibit A. Dated: October 4,2017 -------- I hereby certify that Resolution No. 2017-193 was passed and adopted by the City Council of the City of Lodi in a regular meeting held October 4,2017, by the following vote: AYES: COUNCIL MEMBERS - Chandler, Johnson, Mounce, Nakanishi, and Mayor Kuehne NOES: ABSENT: ABSTAIN COUNCIL MEMBERS - None COUNCIL MEMBERS - None COUNCIL MEMBERS - None Wiruøt"Á NIFER Clerk 2017-193 FERRAIOLO Ciry of Lodi Electric Utiliry Strategic Plan 20L7 Lsdi's Customer-Owned Energy Pçrtner EX[-{[Blî Executive Summary Since L}LO, Lodi Electric Util¡ty (LEU) has been providing electric service to the citizens and businesses of the Lodi community. LEU is the L21't largest public power system in the nation, ranks L6th in size of the 37 public power utilities in California, and currently serves approximately 26,000 customer-owners. The American Public Power Association (APPA) has recognized LEU as being a Reliable Public Power Provider since 20L3. Historically, the electric utility business model consisted of keeping . the lights ön and sending out a bill. After 100 years this has changed dramatically in many ways. Customers have other options to meet their energy requirements, along with higher expectations of their electric seivice provider; utilities are facing increasing regulations in several areas of the industry; there are multiple and chang¡ng power supplies; aging infrastructure that needs to be replaced and/or upgraded; several new technologies have evolved to assist customers anð utilities; there is a higher workforce turnove6 along with the "silver tsunami" of baby-boomer retirements; and increasing financial pressures to achieve and maintain credit worthiness. ln order to successfully navigate these challenges, address customer needs, and be an energy partner with the community, while remaining compliant with regulatory agency requirements, LEU embarked on a strategic planning process engaging APPA s affiliate, Hometown Connections as a facilitator. LEU's Strategic Plan is a roadmap developed by staff and governing board members, includes customer outreach, and has been discussed in public forums. lt will guide staff in the developme_n-t of action Pl4s anä recommendations presented to the City Council for approval. The plan will be reviewed during each budget cycle and updated at least every five years. w o(\l ct! o- (J'ú 0l (E t^ :) l¡J 2 Table of Contents Strategic Planning Teams and Process D¡scovery Development Focus, Goals, Action Items a p. 77 p. 76 p. 23 Accountab¡lity w r{() f\l Lod (J'[o o +¿(! .lJ Ll) f IJ¡ 3 Lodi's Custome r-Owned Energy Pq rtner STRATEGIC PLANNING TEAMSAND PROCESS w c)ôl L t9ı .90¡ c)#o #(Í, IJ 4 Strategic Planning Teams Tim Blodgett President and CEO Phyllis Currie Executive Consultant Mark Chandler City Council Member Liz Kirkley Electric Utif¡ty Director Bob Johnson City Council Member Steve Schwabauer City Manager Andrew Keys Deputy City Manager Liz Kirkley Electric Utility Director C.J. Berry Electric Utility Superintendent Adam Brucker Busíness Development Manager Jay Marchesseault Engineering & Operations Manager Melissa Price Rates & Resources Manager Linda Tremble Administrative Secretary Facilitation Hometown Connect¡ons Advisory Team w () f\l g A. .gb¡ OJ (o t^ :) t¿¡ 5 Strategic Planning Timeline . City Council Authorization ¡ Strategic Planning Meetings . Report to City Council . Updates to City Council Ongoing ¡ Strategic Plan City Council Approval oú.24ú Dec 2015 . Customer Research (focus groups/phone surveys) o Report to City Council w. oô¡ cr! E 'ı! uPt! ttt l¿t 6 Strategic Planning Process Discovery Development ocu Action ltems Accou nta bility oal w" oÀt coı .g bôo {! Lf) :) t¿J 7 \t*(rìþ)e*ìru\Neferbqrnru(a\<\¡\r0\-LIFr(CT)(ìorflfr_-#.?HJLEU Strategic Plan 20L7oo Local Issues . New billing system challenges . lmprove communications . Expand programs and incentives . Changing utility business model ¡ lncreasing power costs . Financial sustainability o Safety . Succession planning Customer needs .lmprove operations r System maintenance and improvements . Loss of local control ¡ Unfunded mandates .I I I ) 1 I I ) Reliability Legislative/Regu lato ry w oN c to ô- .9 ä,0o G' th f t¿¡ 9 Customer Needs Residential Commercial lndustrial Reliability Reliability Power quality Technical support Communication Competitive rates Communications Payment options lncentives Realtime energy information lncentive programs Energy efficiency rates Bill predictability Rate assistance Personal attentionCompetitive rates Billing options w ["] () ô¡ c(! E (J boo (! Pth l¡l f**ÕqL4"ñ(r)Õrb\¡qrÞqmft\(a\<J.\at*ù('Þ\HL/rnrrjr*ctúKrIIzr-l-PÞ\-/#LEU Strategic Plan 2017 Motto, Missioh, Values tá|rrflIef¡Ffl rp fttFFr Ynuß flFFR{ sf}fåf,t FtrnltiFfl t? glfif LEU is your custonner-owned energy partner cornmitted to the needs of the cgmmunity; provlding courteous, professienal service for safe, reliable, and competitively-priced power. Anticipate and respond professionally to the needs and concerns of our customer-owners; Provide valued services at competitive rates in a transparent and ethical manner; Promote professional growth and development of our workforce; Maintain a flexible organization which adapts to the changing utility industry; and Contribute to the economic vitality of the community. w ["] C)t\l c(!ı öoo (û 1t ft¡¡ SWOTAnalysis Stre ngths Wea knesses Th reats Opportunities ["] w- F{(} N çt!ı 'ü (u t! t.f, ) IJ^J SWOTAnalysis Internal Strengths . Nimble utility o Competitive Rates . Dedicated Employees . Load & resource diversity ¡ Economy of scale w/ NCPA . Local control . High reliability . Customer/public accessibility ¡ Customer satisfaction . Excellent Safety Record . Customer relationships Wea knesses . Bill system limitations . Data/custo mer i nformation accessibility ¡ Customer com m u nication/outreach ¡ Decentralized offices . Financial Stability . Complex rates . Succession Plan . Grid intertie . Aging infrastructure ['-] w^ () ôl c fD E 'tô o fg +,(^ 3ulJ SWOTAnalysis External Opportu nities . Expanded joint action . Advanced technology . Economic development . Customer relationships . Debt restructure . Electric vehicles . Energy storage Th reats . Unfunded mandates . Changing business model . lncreased power costs . Extreme weather . Cyber/physica I threats . N ERC/WECC requirements . Workforce poaching . lnterest rate exposure ["] w ON t!ı .9 b0o f0 +Jt^ t¿¡ Lad i's Custçrne r-Ow ned E ne rgy Fs rtne r FOCUS, GOALS,ACTION ITEMS ["] w. |\. FloN f (! d ,g uooP fo .FJrh l¿J Strategic Areas of Focus LEU will develop and implement programs and provide services to meet the needs of our customer- owners. LEU will deploy cost effective technology to improve customer service, reliability, safety, and workforce efficiency. LEU will operate in a manner that ensures financial stability and customer value. LEU will design, operate, and maintain the distribution system to ensure reliable electric service. LEU is commítted to recruiting qualified stafl providing necessary training, and an environment which promotes workforce loya lty. Financial Reliability Workforce w. [''] Flot\¡ qg â. .gb!ql (! tît :) ¡¿¡J Customer Goals LE{J will develop snd implement progroms and províde services to meet the needs of our customers. LEU will develop a customer communications plan by Dec at,2017. LEU will strive to achieve and malntain a minimu m 8O% customer satisfaction rating as measu red by bia n n ua I su rvey. LEU will develop two new customer incentive programs by Dec 3t,2018.["] w (D ñl gl! Â. t,'Eo o o Pt¡t 3 1¿l Reliability Goals LEU will desigfr, operat€, snd maintsin o distribution system to ensure reliable electric service. lncrease grid intertie reliability and capacity to serve existing customers and new developments by 2A24. Perform a physical and cyber security assessment for critica I assets a nd develop a plan to address findings by December 2018. Maintain monthly electric reliability metrics > the APPA western region top quartile. ["] w o(\l fEı (J b¡ a) tu ttl fll¡ Technology Goals LEU will deploy cost effective technology to improve reliability, customer service, safety, snd workforce efficiency. Modernize customer information and b¡l¡¡ng interface by Jun 30, 2018. lmplement an outage management system by Dec 3I,2018. Develop an overall technology roadmap to meet the needs of customers and staff by Dec 3I,2018.["] w o(\l c(! ı boo r! vt :) l¿l Financial Goals LEU will operqte in a mqnner that ensures fi nancisl stsbílíty and customer vslue, Maintain average electric rates at least tO% lower than PG&E, to be reviewed annuallY. lmprove rate structure by collecting at least 5A% of fixed costs through fixed charges by 2A20. Maintain a cost effective power portfolio by ensuring power supply costs remain below 1"0 cents/kWh on an annual basis. w ["] oN clt E .gu¡ a) (! t¡t :)l¡¡ Workforce Goals LEU ís commítted to recruiting quqlífíed staff ond providing necessqry training qnd an environment which Promotes workforce loyolty, M a inta in a cu ltu re of safetY throughout the electric utilitY to achieve zero lost time incidents. Develop a succession plan bY Dec 31 ,201-8 to attract and reta in a q ua lif ied workforce. ot\ co ê. boq) (! Itl f IJ¡ [,,] w Accountability Continue to develop and implement action items for esch goal. Provide the City Council with regular u pdates. Re-visit Strategic Plan in five years, modify as needed. [,,] w oN coı .c h0o (! +¿./l : UJ