Utility in Transition

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Egbert Miles
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1 Utility in Transition AN INTEGRATED APPROACH TO QUALITY IMPROVEMENT FWEA Southeast Chapter City of West Palm Beach Scott D. Kelly, P.E. Assistant City Administrator August 13, 2015

City of West Palm Beach Combined Water, Wastewater & Storm Water Enterprise Fund 35,890 Water Accounts 99,919 2010 Population 27,518 Sewer Accounts Combined Water,

2 City of West Palm Beach Combined Water, Wastewater & Storm Water Enterprise Fund 35,890 Water Accounts 99, Population 27,518 Sewer Accounts Combined Water, Wastewater and Storm Water Enterprise Fund 58 sq. miles City Land Area 61 sq. miles Water Service Area* * Supplies water service to Palm Beach and South Palm Beach

3 Key Drivers for Quality Improvements at the City of West Palm Beach Process safety Recordable incident rate (RIR) above industry average Operational Challenges Maintaining assets operating one of the oldest utilities in Florida Environmental and Water Resource - Challenge of transitioning to an integrated urban water management system Sustainability Strong commitment to position City as model of healthy, environmentally progressive and ecologically sustainable urban living Financial- No room for large rate increases since rates are in upper quartile compared to peer group in region Declining revenues during recession coupled with >20% reduction in per capita consumption

4 Quality Improvement Programs at the City of West Palm Beach Integrated Water Resource Management ONE WATER Long Term Water Supply Planning Watershed Best Management Practices Stormwater Master Planning Asset Management Program Sustainability Programs ISO Environmental Management System (EMS) City Leverages Lean Six Sigma Tools

5 Overview of West Palm Beach Water System Lake Okeechobee L-8 Basin Control Structure #2 M-Canal Ibis Golf and Country Club Water Catchment Area Grassy Waters Lake Mangonia Apoxee Park Clear Lake WTP West Wellfield

6 Overview of West Palm Beach Water System G 161 Control Structure Water Catchment Area Grassy Waters Apoxee Park M-Canal Western Wellfield Lake Mangonia Clear Lake WTP

7 2011 Drought Measures Clear Lake Divide Structure and Pump Station Eastern Wellfield C-51 Canal Tidal Discharge Capture C-17 Canal Tidal Discharge Capture Aquifer Storage and Recovery Well Western Wellfield (Last Option)

8 Long Term Water Supply Planning Define Planning Objectives, Metrics & Scenarios Water Evaluation and Planning Model (WEAP) Determine Need (Gap Analysis) Identify Supply Options (building blocks) Test Under Uncertainties Rank Alternatives Water Demands Recommended Strategy

Decision Support Model WEAP Overview Natural Resources Rainfall-Driven Water Supply/Demand Water Quality Ecosystem Needs/Constraints Human Infrastructure Water Demand &

9 Decision Support Model WEAP Overview Natural Resources Rainfall-Driven Water Supply/Demand Water Quality Ecosystem Needs/Constraints Human Infrastructure Water Demand & Demographics Transport: Canals, Pipelines Supply: Reservoirs, Groundwater, ASR Capital Investment Revenue & Reserves Capital Financing Net Present Value Dynamic Cost-Benefit Analysis

10 Model Simulates Operations

11 Planning Objectives Objectives Performance Measures SUPPLY RELIABILITY. Provide supply reliability during average weather and drought conditions COST-EFFECTIVENESS. Develop cost effective solutions with rate payers in mind. IMPLEMENTATION EASE. Provide solutions that are acceptable by public, easy to operate, and scalable. WATER QUALITY IMPACTS. Improve taste, odor and other secondary water quality attributes. ENVIRONMENTAL IMPACTS. Minimize impacts on ecosystems and natural environment. STEWARDSHIP. Provide leadership in sustainable water management. Number of weeks of unmet water demand Maximum weekly unmet water demand (MGD) Cumulative capital and operating costs through 2065 planning period Degree of public support Degree of operational complexity Degree of project scalability Degree of taste, odor, and other secondary water quality attributes Grassy Waters elevation level Degree of greenhouse gas emissions Degree of maximization of existing water resources Degree of providing regional water solutions Performance measures shown in blue represent quantitate metrics from WEAP model. Performance measures shown in black represent qualitative scores using professional judgement.

12 New Supply Options Evaluated Permit Changes Permit Changes (5 to 45 MGD, with varying levels of difficulty in achieving) Expanded Tidal Capture (up to 45 MGD) Demand-Side Management (up to 9.5 MGD by 2065) Brackish Groundwater Desalination (10 MGD) Expanded Aquifer Storage & Recovery (2 MGD) C-51 Surface Reservoir (10 MGD) Expanded Eastern Wellfield (7.2 MGD) Seawater Desalination (10 MGD)

13 Alternatives 1) Low Cost Lowest cost options only 2) High Redundancy Most reliable options, but leads to redundancy for non-drought years 3) High Diversity Mix between Low Cost & High Redundancy 4) No Action No new supply options implemented Example of options included to meet 2065 needs Max Yield (mgd) Year 2065 High Low Cost Redundancy High Diversity Demand-Side Manag Eastern WF Expansion ASR Expansion Tidal Capture Expansion Brackish GW Desal C-51 Reservoir Seawater Desal Total

Ranking Method: Multi-Criteria Decision Analysis Define Objectives & Metrics Apply Weights to Objectives Sales Create Performance Score Card for All Alternatives Reliability Cost 6%

14 Ranking Method: Multi-Criteria Decision Analysis Define Objectives & Metrics Apply Weights to Objectives Sales Create Performance Score Card for All Alternatives Reliability Cost 6% 9% 25% 60% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Environ Alt 4 Alt 2 Alt 1 Alt Reliability Cost Environment Constructability Use Decision Software to Rank Alternatives

Ranking of Alternatives (all objectives weighted fairly equally) No Action Worst Rank #4 High Redundancy Low Cost High Diversity Best Good Good Rank #3 Rank

15 Ranking of Alternatives (all objectives weighted fairly equally) No Action Worst Rank #4 High Redundancy Low Cost High Diversity Best Good Good Rank #3 Rank #2 Rank # Supply Reliability Cost-Effectiveness Implementation Ease Water Quality Impacts Stewardship Environmental Impacts

16 Water Shed Protection GRASSY WATERS

18 West Palm Beach One Water

19 Asset Management - Root Cause and Criticality Analysis 19

20 Condition Assessment and Criticality Analysis Drive Asset Management Programs

21 City Commits to a Sustainable Environment GOAL: Enhance the viability of WPB as a model of a healthy, environmentally progressive and ecologically sustainable community.

23 Water Conservation Initiatives at the City of West Palm Beach 2.1 MG 5.4 MG 5.7 MG 4.7 MG 35.8 MG 17.9 MG Programs Water Sense Smart Irrigation Controller Ordinance WaterSmart Customer Engagement

24 ISO City Implements Environmental Management System (EMS)

25 ISO Environmental Management System (EMS) ISO is a continuous improvement management process - Plan Do Check Act system

26 ISO Setting Environmental Objectives & Targets for each Utility Division

27 ISO Identification of Significant Environmental Impacts for every Division

28 Annual ISO14001 Educational Fair Employees get to interact with each other and participate in activities Employees teaching other employees about their ISO Program

29 EMS Awareness: Annual Training Program at Grassy Waters Preserve

30 City Trains 20 Greenbelts in Lean Six Sigma Methodologies Using DMAIC Process Remove inefficiencies in process workflow

31 City Leverages Lean Six Sigma Tools City Set Up Six Sigma Lean Quality Teams: Six Sigma Safety Don t B Fuelish: STOP IDLING, START SAVING Six Sigma Meter Replacement Optimization Streamlining Procurement Process - Cycle Time Busters 5S Lean Program

32 Six Sigma Safety Team Kaizens ( change for better ) activities that continually improve all functions and involve all employees from top to bottom.

33 Six Sigma Safety Team Project Statement-Reduce the OSHA RIR (Recordable Incident Rate) for the Utility by 50% from 7.9 to 3.95

34 Safety Improvements Results to Date Improved the on the job injury form Created a near miss report form Introduced a safety signage program to be changed out quarterly. Conducted a safety barometer survey to assist in setting the appropriate action items with the new safety program. Employee recognition program for safety 360 walk-around program MSDS On-line targeted training programs Defensive driving program Recordable incident rate (RIR) trending 40% lower than last year

35 Don t B Fuelish: STOP IDLING, START SAVING Six Sigma Team

Don t B Fuelish: STOP IDLING, START SAVING Six Sigma Team The Kaizens or continuous improvement activities assist with policy implementation, education and awareness of the benefits of Idle Reduction

36 Don t B Fuelish: STOP IDLING, START SAVING Six Sigma Team The Kaizens or continuous improvement activities assist with policy implementation, education and awareness of the benefits of Idle Reduction and include: Interior and exterior signage to promote employee awareness, Sun shades to reduce interior temperatures of vehicles while not in use, and 'Rethink WPB Stop Idling, Start Saving' key rings, book marks, ignition stickers to build awareness and reinforce adherence to new idle reduction policy.

37 Six Sigma Meter Replacement Optimization Team A significant reduction in the number of manual reads within the first three months of the program

38 Streamlining Procurement Process-Cycle Time Busters Team Goal - Review and reduce cycle time for contract processing to improve efficiencies and decrease unnecessary wait/waste time Insufficient scope/specifications 41.7% Insufficient documentation for Risk Management 50.0% Insufficient documentation for Procurement Insufficient documentation for Legal The funds were not available 20.8% 41.7% Contract database users survey results: 74.3% of those surveyed reported a contract returned for corrections: 4.2%

39 1/17/2013 2/5/2013 2/15/2013 3/14/2013 4/3/2013 4/22/2013 5/7/2013 7/1/2013 7/23/2013 8/7/2013 8/13/2013 8/23/ /15/ /5/2013 1/7/2014 1/27/2014 2/12/2014 2/24/2014 3/7/2014 3/14/2014 4/2/2014 7/10/2014 # of days Tools for Six Sigma-For Improving Contract Processing # of Days for PM approval for form contracts (X chart) UCL 19.1 CL 5.0 LCL -9.0 Date of form contract creation (Jan 2013-Sept 2014) Kaizens for error proofing the process: Checklists to eliminate incomplete submittal packages, Checklists for completing procurement, legal and risk requirements Template/guidelines for project managers and vendors to eliminate need for revisions and Relevant and consistent training for database users. Prioritization criteria and grid to expedite time sensitive contracts.

40 City Initiates Employee Driven 5 S Program Empowered employee groups to enlist the 5S process for organizational efficiency. Workplace organizational method that uses a list of five Japanese words: seiri (sort), seiton (straighten), seiso (shine), seiketsu (standardize), and shitsuke (sustain). Gain efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the process.

41 Examples of 5S Projects Spill Response Trailer MOT Trailer Before and After Pictures of Pump Room

42 Implementation of the Quality Programs and Tools Have Improved the Bottom Line Financial- No room for large rate increases since rates are in upper quartile compared to peer group in region Stabilized O&M Budget Eliminated scheduled rate increases for two straight years Eliminated need for scheduled $150 million dollar bond issue Increased internally funded annual R&R capital from $8 million to $12 million Reduced debt to equity ratio from 62% to 51% Bond rating outlook recently revised by Fitch to Positive from Stable

43 Questions? Scott D Kelly, PE

The Future of Alternative Water Supplies in the SWFWMD. Workshop: Practicable Sustainability: Implementing Water Reuse/Supply/Resource Projects

The Future of Alternative Water Supplies in the SWFWMD Workshop: Practicable Sustainability: Implementing Water Reuse/Supply/Resource Projects 16 counties 10,000 sq. miles 98 local governments Population