I PITTSBURGH WATER SEWER AUTHORITY ORGANIZATIONAL STRUCTURE PERFORMANCE REVIEW Prepared by: Resource Development Management, Inc. Iii-if], 2009 mam?HE 411 :l-ulh-u-I: i I: u-1-I fl: DH HF I h{3E ?lm 2- j?dn HIE-1.1- I llI?: .- .EF ..-- Ll I I.) TABLE OF CONTENTS INTRODUCTION FRAMEWORK FOR OPERATIONAL 8: ORGANIZATIONAL ASSESSMENT EXECUTIVE SUMMARY HUMAN RESOURCES ENGINEERING FACILITIES SUPPORT STORES MANAGEMENT RISK SERVICES MANAGER I LEGAL FINANCE ACCOUNTING Purchasing I Procurement CUSTOMER SERVICE WATER OPERATIONS MAINTENANCE SEWER I SERVICE OPERATING TREATMENT PROCESS WATER QUALITY Page1 Page4 Page? Page15 Page19 Page23 Page27 Page30 PageBZ Page39 Page42 Page 49 Page?B Page67 Page 78 INTRODUCTION The report is intended to provide a useful and objective assessment of orgamastatx structure and performance review. This report should provide a useful internal management tool that is based on an objective review. Significant accomplishments and positive performance trends are recognized, as well improvement. thereby a balanced perspective on overall performance. as opportunities for This review includes analysis of 0 Organizational structure and staffing 0 System operating policies and procedures 0 System performance relative to adopted PWSA key performance measures It also includes recdmmendations that provide speci?c implementation procedures. where appropriate. The management review provides a review of the PWSA organization. RDM's approach to the organizational review incorporates interviews with key executive and management staff; functional supervisors; and front-line personnel. Adopted KPl?s were also reviewed for relevancy and usefulness, and discussed with staff to develop an understanding of the environment in which the PWSA operates, and the factors that influence both day-to-day performance and longer term trends of the organization. The review team interviewed management to gain insight into the PWSA. In excess of 25 interviews were conducted during the course of the review. Interviewees were asked to discuss their responsibilities, accomplishments, and challenges; processes for developing, implementing, and communicating Organizational goals; procedures for developing and monitoring performance goals; and plans that expected to impact performance goals. Through the interview process, interviewees provided their assessments of the PWSA's and weaknesses, and the opportunities and challenges that face the organization. Key interviewees: 0 Accounting Finance Manager 0 Human Resources Manager 0 Engineering Manager 0 Water Operations Manager 0 Customer Service Manager 0 Sewer Operations Manager 0 Facilities Manager 0 Water Treatment Processing Manager 0 Purchasing Manager 0 Water Quality Manager 0 Risk Legal Manager 0 Storeroom Manager The review team also toured major facilities and completed an extensive revrew. In addition to the downtown administrative complex, the review team toured the various operational facilities, including PWSA plant, distribution facility located at Brilliant Avenue, the sewage operation facility located at Howard Street, and the store room warehouse located at 26th Street to gain an appreciation of the operating environment. The team also conducted an extensive document review. Key documents such as the following, which pertain to the entire organization, functional level reports, procedures, and data were used to assess performance and evaluate efficiency, effectiveness, and productivity: 7 Business Plan 2004-2008 Capital Investment Program Policy Procedures Manual Asset Management Strategy Key Performance Indication Studies 0000 0 Budget and financial reports including operating and capital budgets; annual financial reports; and budget variance reports 0 Previous studies including: labor agreements and service contracts; and city contracts for services The review assesses key organizational functions, as well as systematic performance. - The organizational functional review evaluates the operational aspects of PWSA service delivery functions, as well as the administrative functions and activities that are key to delivery service. Key functions evaluated as part of this review included: Engineering and construction Water quality operations Treatment I plant operations Purchasing I inventory control Customer service Billing and collection Management I administrative Finance accounting I capital planning Human resources Water operations and maintenance Sewer operations and maintenance Vehicle and facility maintenance Market and promotion 0000000 000000 We received excellent cooperation at all levels and obtained reliable and complete information from PWSA personnel. Our focus was on developing recommendations for improving the PWSA. Therefore, the report tends to emphasize issues and problems rather than the positive aspects of the PWSA. Despite the stated focus of our review, we found that many responsibilities of the organization were being very competently discharged. The current upper management has initiated the process of changing and improving the PWSA. Given time and the commitment of the policymakers. many of the recommendations of this review can be implemented and will positively impact the future of the organization. 3 FRAMEWORK FOR ORGANIZATIONAL AND OPERATIONAL ASSESSMENT The following diagram depicts the main elements which any organization must manage to achieve success. These elements, each of which are discussed below, starved as the framework which ties each of the various components of the organization together. Environment Resources Operations organization Structure Environment: There are several different types of environments economic, political, legal, etc. These environments define what is possible in terms of strategies, alternatives, and opportunities. Environments are externally driven, and therefore, offer fewer opportunities for managers to directly influence or modify them. Mission: The reason an organization exists and continues to operate. The mission typically consists of a mission statement, a vision, and guiding principles. 4 Planning: Organizational Structure: Sys' tems: Operations: The development and utilization of short? and long-term strategies, goals, and objectives. A plan should include organizational priorities; expected timeframes; required costs and investments; and benefits. There are several types of planning that occur in most organizations, including strategic, financial, capital, and information technology. Plans must support the organizational mission and be consistent with environmental realities and, once articulated, should drive the other framework elements. The skeleton of the organization which links and defines the management of operations. Structure includes formal reporting relationships, lines of communication, and span of control. The structure should reinforce plans and deliver the proper level of resources. in general, there are three types of systems: 0 Information systems that collect and organize data about events and activities. - Reward systems that encourage desired individual and group behaviors. - Performance measurement systems that measure progress toward defined goals and objectives. Operations encompass the daily activities of an organization. For purposes of this review, operations were split into three categories: - Administrative (marketing, engineering, human resources, etc.) - Maintenance Finance Accounting These operational areas can be viewed from two perspectives: As vertical functions consisting of departments, divisions, etc. - As horizontal, cross?functional processes consisting of activities and tasks. Resources; In general, there are three types of resources: - Financial - Human - Technological The appropriate mix of resources must be allocated to support plans and related strategies in sufficient quantities to have an impact on operations. Culture: Shared patterns of beliefs and values that influence perceptions, and shape individual and group behavior. Culture is the most subjective of the elements and, along with the environment, the most difficult to change. EXECUTIVE SUMMARY General Findings 8; Recommendations The report gives an overview on each Division and develops a series of findings and recommendations for each Division of the PWSA. There are a number of findings and recommendations that cross Divisional lines and are stressed as the priority for action. These ?ndings and recommendations are classified as "general" findings and recommendations. In addition, we have identified the following Seven Point Action Plan that identifies major initiatives for the organization: I Develop a strong, sustained customer focused and market driven approach to business. - Develop partnership and increase community support and marketing of the PWSA's mission to be a "regional" water and sewer utility. Strengthen PWSA's long?term financial position through efforts to maximize revenue collections and instituting cost- control measures, as well as an entrepreneurial approach to certain PWSA services. I.- Continue to invest in capital improvements. - improve employee morale, training, and labor management relations and transition to more general labor classi?cations as practices throughout the utility industry. I Build on PWSA reputation as a competent, effective organization and transition from a ?reactive? to a "planned" maintenance operation. - Reorganize and fill key positions to allow the Executive Director to spend less time on day-to-day operations and focus more on long?term goals of the organization. 7 QM EL'tdLn?e?w Recommendations There are significant opportunities for improvement in most management processes which were reviewed in this effort. PWSA management philosophy has historically been for the most part "reactive" rather than "proactive". The culture at the PWSA severely limits management's ability to effect positive change due to: 0 Minimal accountability 0 Limited managerial discretion Begin a systematic effort of improving management processes. Take a "proactive" approach to management. ie., improved planning and management processes, to help improve organizational performance. Develop new organizational accountability using defined performance standards for both individuals and the organization as a whole. There are limited comprehensive long?term plans (strategic, financial. information systems, capital. etc.) upon which to guide other planning and operating decisions. Develop and implement comprehensive long?term operating plans that address all aspects of the operation. will The Executive Director has 13 direct reports making up the senior management team at the PWSA. Numerous gaps in organizational structure resulted in too many direct reports through the Executive Director. As the Executive Director gets consumed with day?to-day operational, ?nancial, and purchasing decisions there is little or no time for long-term Visioning for where the organization should be heading. The following individuals directly report to the Executive Director on a daily basis: Communications Coordinator Risk Services Manager Human Resource Manager Finance Director Information Systems Manager Customer Service Manager Engineering Construction Director Water Operations Maintenance Director Sewer Operations Maintenance Director Treatment Plant Manager Facilities Support Manager Stores Manager Water Quality Manager Constant turnover in key leadership pagitions over the past 20 years: 1_3__executive directors] three or four __Euaoc?rdlremo and five engineering di?ector?gvreral key time. Lack of a clear succession plan within the organization as a result the organization is constantly reacting as opposed to acting. 1- PWSA should revise its current table of organization and fill the deputy director of operations and create a deputy director of administration. This will free the Executive Director from day?to-day operational responsibilities and allow more time for long?term vrsroning. fill/{r Alta/m.? light a The PWSA residency requirement, as well as the salary levels for professional engineers has caused the PWSA to be somewhat at a competitive disadvantage in acquiring the in?house skills necessary to carry-out its mission in a cost-effective manner. A number of services that could be provided through an expanded in?house Engineering Division are provided via special miscellaneous services contracts to outside consulting firms at a premium cost and could be provided more economically via an in?house staff. Two specific services that should be performed in-house are inspection services and GIS services. The PWSA should seriously look at upgrading its salary schedule for professional positions such as Engineer 1 and II, and should reconsider its position relative to City?residency not only to allow it to recruit professional engineers. but also to fit into its desire to become a more ?regional? water and sewer provider. The PWSA should develop an in?house certified construction inspection staff and begin providing these services on a project-by-project basis. Significant dollars could be saved following this approach. The PWSA should develop an in?house staff to handle all GIS and mapping currently provided via a miscellaneous services contract with L. Robert Kimball. The responsibility for capital expenditure planning. a key PWSA function, has been for the most part outsourced to PWSA's Consulting Engineer. Bring the responsibility for capital expenditure planning in?house with input from the Consulting Engineer. The operating budget process is primarily an administrative process rather than a management task. Redesign the operating budgeting process to incorporate such things as annual revenue forecasts and performance measures. Planned performance measures should be attainable goals. Managers need to be more involved in develOping the budget and in monitoring budget performance. Very little efforts are focused on a regional marketing strategy. Develop a regional marketing strategy that would result in PWSA pursuing acquisition opportunities. bulk sale opportunities, and contractual services opportunities. -. 11 3% The current contract with the City for receiving and - A new contract should be prepared and executed that providing services is outdated details the services and the cost accounting for the services. 12 RPM Current Table of Orqanization Board of Directors i Solicitor Executive Director cons? - i I .l Engineer Executive Secretary Deputy Executive Director (as needed) Uommunicntions Coordinator Manager "It 1 Administration Water a. Sewer Operations Human Resources Director - Manager . . -Specialist 5' Ulracmr of Con'twm'o" Safety 5. Security Operations Secretary 1 - Manager (Vacant) 'I-rn'ance 5- Accounting . Director I i - Accounting Manager (Vacant) Water Operations 5. Treatment Process Water Quality Procuremem - a?Malntenance Group 0??th Plum Manager Operations Engsmeerrng - Manager a Maintenance - Manager ewer I Group a or porn anI LManau? . Waler Euallt'f Management . Maintenance Group I A General Office Operations lnlormation Engineering - ~Valve a. Leak anager Supervisor Sewer Operations - Supervisor (2) . - Enumee??g pars Ions FreHLd PEBTEIIOHS Facilities Supporl Customer Services Environmental rMaintensnce Group 5a Elan?" Sump -Msnager Compliance "p3 '50 - anager I 1 Chemical 8: Gimme I operations Facilitles Support Customer Servtce Engineering - SerVIce Section . - Termination Supervisors (3) a. - Meter Sam Supervisor - Billing Coordinator Inspection Maintenance ?new?! Dispatch Reception Stores - Manager 13 Proposed Table of Organization Executive Director . Consulting 1 Engineer 1 Deputy Dlrector Deputy Director Administration Operations 1 I m?m- 1 Finance a Human Resources High Management: Customer Service Water Operations Sewer Operations Treatmant Eng?"e?f""9 5' Ancounting Legal Capital 0 8? Leak Detection I .4 I Plant Water Quality Facilities 14 Sixty (60) employees 55 years of age or older, or 23.8% older than age 55. Over the next 10 years 25% of workforce could retire. These 60 employees average 22.05 years of service. Lack of clear succession plan within the PWSA organization causes the organization to constantly react as opposed to ac?ng. To prevent loss of agency knowledge with upcoming retirements. finalize and implement a succession planning program. identify key positions at risk. Identify qualified candidate pool within the Authority. Support necessary training and considerjob sharing or job rotation opportunities to provide a more seamless transition. PWSA has done a very good job in the administration of a sound safety program at all levels. The policy and procedures in place and followed at the Division level have achieved very positive results. This is one area where the cooperation and commitment of both management and union personnel has produced great returns for the PWSA. This approach could be a model to utilize as the organization addresses other issues. The safety program's organizational structure should be the model for similar initiatives in other areas. In this organizational structure: each division participates with sufficient input and decision?making; meetings are held at the Division- level and at the Division-level; and performance is constantly and consistently being monitored. 16 size HUMAN RESOURCES The Division is responsible for all aspects of HR including: recruitment; overseeing the advertisement the hiring process; employee disciplinary actions. including grievances and terminations; overseeing the payroll time-management process; participating in contract negotiations with the various unions representing the 197 union personnel; working with the third party contractor on all bene?t contracts involving health, dental, vision. life, STD and serving as the PWSA's training coordinator; and assisting in the formulation and uniform implementation of all PWSA HR policies and procedures. Findings I Recommendations - Constant turnover in key leadership positions over the past - Identify and fill key vacant positions including the 10-20 years: 13 executive directors; 3 finance directors; 5 Director of Operations. engineering directors. Several key positions have gone un?lled for long periods of time. 15 The PWSA has seen significant annual increases in its healthcare costs. There is a wide discrepancy between the percentage contributions to healthcare of white collar versus blue collar employees. Develop plan to mitigate the impact of rising healthcare costs. Consider the development of a high-deductible plan under which PWSA would cover the deductible. This could result in significant premium savings. Perform benchmarking with other local employers to compare benefits and co-payment levels. Seek new insurance providers. Review level of benefits provided. Consider adding cost sharing withemployees, increased co?pays and increased contributions. Develop a consistency in employee contributions to healthcare. The organization has done an excellent job in its overall approach and management of lost?time accidents. workers' compensation claims, and short-term disability claims. The employees' training and education, as well as its light-duty program, have produced results. Continue to aggressively pursue the management of loss time accidents, workers' comp, and short- term disability claims. Absenteeism KPI goals do not appear to be realistic when compared to actual performance numbers, particularly in Sections 1325, 1322, 1321, and 1911. Consider revising KPI goals in this area to more realistic and achievable goals. Current plan or goal numbers will continue to result in underperformance. 17 organization. aining program for the with few Lack of proactive tr on day~to?day trainin Minimal hours spen excep?ons. - Lack of formal written standard operating procedures throughout the organization. eneral and medical, contain all Personnel files, both 9 are maintained in an adequate necessary information an manner and are kept secure. PWSA needs to develop a pro-active trainingN program within all its divisions. upper management should assist on the development of standard operating procedural manuals for each division so that as personnel change current knowledge and protocol is maintained. Human Resources an separate files and every three to Continue to keep them reviewed as to applicable five years have federal personnel law to assure compliance. ENGINEERING The Engineering Division provides a wide-range of services to PWSA including: environmental compliance; project management; computer-aided design; overseeing the deveiopment of mapping and issuing and applying for all permits; and all in-house design activities. In providing these services the Engineering staff interfaces with numerous PWSA divisions including: Water Operations, Sewer Operations, the treatment plant, and Water Quality divisions. In addition to the in-house staff, the PWSA utilizes the services of numerous outside engineering firms to provide a wide- array of services both in day-to?day operations, and for the development and implementation of the PWSA's capital improvement program. ATS Chester is the most active of these outside firms serving in the capacity as Consulting Engineer to the PWSA. The Engineering Division ls comprised of 13 full?time positions. An additional eight positions were budgeted in fiscal year 2008, but as of the time of this review were unfilled. The 2008 budget for personnel salary and wages was approximately $1,099,000. In addition, a total of $526,000 was budgeted for non?salary expenses, which together totaled $1,625,000 for the in-house expenses associated with the Engineering Division. The Engineering Division has undergone significant changes in terms of personnel over the years and has had difficulty in filling positions and retaining staff due mainly to: - The inability to establish adequate salary levels to attract candidates from the engineering profession. - The residency requirement which has again limited the recruitment and selection efforts. As a result the Division has had significant turnover and more and more relies on the utilization of outside engineering ?rms for services. This has proven to be a very costly approach as both the hourly rates and the multipliers far exceed the cost of inshouse services. The current Acting Director of the Division has served in this capacity since May of 2008 after the former Director left to take a position with ALCOSAN. The current Acting Director is very familiar with PWSA operations having served with the PWSA since its inception and having prior experience with the City of Pittsburgh Department of Engineering and Construction for 30 years. The PWSA utilizes the services of engineering consulting firms for specific capital projects, as well as for specific on?going miscellaneous services. The following table identifies the firms being used from 2006-2008: 19 Firrn? 2008 2007 2966 CDM $646,924 sis?2'0? __criester CIP $2,919,943 $3,766,466 $2,525,938? HDR $58,191 $113,733 $148,841 HRG, Inc. $43,195 $57,817 $186,428' Robert Kimball $436,941 $499,279 $153,345 Metcalf 8. Eddy $1,637,809 _$1,772,192 $1,184,105 Michael Baker $658,623 $889,793 $1,111,949 URS $555,774 $794,554 $319,032 Chester ops $986,864 $1,303,864 $1,023,409 ETAL $7,944,262 $6,858,250 Six of these contracts are "open-end" contracts for specific miscellaneous services. Many of these services are undertaken in-house by the larger public water utilities. ATS Chester has been retained by the PWSA to provide both consulting engineering services and construction management professional services under two separate agreements. During 2006?2008 these contracts amounted to $12,526,226. L. Robert Kimball has been retained via a miscellaneous specialist services agreement to provide a variety of services. Sixty two (62] individual positions with L. Robert Kimball and six other subcontracting firms are identified in the price proposal who could charge time to the agreement. Each of these positions' hourly rates are increased at 4% per year. in addition to the hourly billings, a multiplier of 3.14? factor is utilized. In addition to the direct personnel related expenses, the PWSA is billed for miscellaneous costs including: copies, plotting, mylars, binding, mileage, etc, as well as other direct costs such as: sub?consuitant fees plus overnight delivery plus 10%; survey and photo lab material at cost plus 30%; parking costs; etc. This contract has paid out $998,566 from 2006-2008. in addition to the above, the PWSA has an additional miscellaneous services contract with URS who subs work to Hatch Mott McDonald and GAI. These contracts provide additional hours of engineering services to the PWSA. This agreement resulted in an additional cost of $1,669,360 during the period. All construction management services related to capital projects are contracted out, as well as most inspection work on PWSA projects. Many public the size of the PWSA wo'uld handle services such as inspection in-house. It appears that a great deal of activity which could be handled in-house is contracted out. KW The capital budget process and the development of the capital plan are driven by the City and the consulting engineer. The capital budget is managed by the Consulting Engineer. 8 shift in responsibility from the in-house Engineering Division to ince 1984, when the PWSA was created, there has been a the utilization of outside engineers. Findings - The PWSA residency requirement, as well as the salary levels for professional engineers has caused the PWSA to be somewhat at a competitive disadvantage in acquiring the in-house skills necessary to carry-out its mission in a cost-effective manner. Recommendations The PWSA should seriously look at upgrading its salary schedule for professional positions such as Engineer and II. and should reconsider its position relative to City- residency not only to allow it to recruit professional engineers. but also to fit into its desire to become a more "regional" water and sewer provider. - A number of services that could be provided through an expanded in-house Engineering Division are provided via special miscellaneous services contracts to outside consulting firms at a premium cost and could be provided more economically via an in-house staff. Two speci?c services that should be performed in?house are inspection services and GIS services. The PWSA should develop an inahouse certified construction inspection staff and begin providing these services on a project-by-project basis. Signi?cant dollars could be saved following this approach. The PWSAIshould develop an in-house staff to handle all and mapping currently provided via a miscellaneous services contract with L. Robert Kimball. The responsibility for capital expenditure planning, a key PWSA function, has been outsourced to PWSA's Consulting Engineer and the timetable for development of the plan is driven by the City, not the PWSA. The PWSA should control the capital planning process, both in terms of timing and in terms of process for identifying and prioritizing projects. The PWSA should have in place a rolling five?year capital improvement plan that is developed on an annual basis with input from all line Divisions. - The PWSA handles a large volume of PA One Calls through its Facilities group. Many utilities place this function under the Engineering Division. Reorganize the Engineering Division and house the PA One Call function within the Engineering Division. 21 3W Currently, all construction inspection is outsourced at a - All construction inSpection should be brought in?house very costly rate due to the various multiplierfactors. and assigned to the Engineering Division or the respective functional Division, Water Operations Sewer Operations; etc. n-j FACILITIES SUPPORT GROUP The Facilities Support Group was created approximately three years ago (2008) as a separate functional group under the Director of Operations. The major responsibilities of the group are the following: - Project management and implementation of paving and restoration contracts outsourced by the PWSA. 1? - Handling of all one-call tickets, permits, and identifying lines. - Locating curb boxes and referring to contractor. - Posting termination notices for delinquencies and shut-offs. In addition to the above. the Division was intended to be responsible for managing the maintenance of PWSA's facilities in coordination with the various line divisions and developing maintenance plans schedules for the systematic upgrade and maintenance of major PWSA facilities. A review of current PWSA facilities indicates little, if any, scheduled custodial maintenance at a number of key PWSA facilities. Although this group was to directly report to the Director of Operations, since the vacancy in that position the Facilities Support Manager has directly report to the PWSA Executive Director. The Division is primarily divided into two separate groups: one handling all inspections of PWSA restoration and contractor work; and one handling all service work related to PA One Calls, shut-offs, and terminations. The following table identi?es budgeted positions within the Division: 23 Facility Support Manager One Call Lead inspector . Supervisor i Word Process Coord. i . Inspector Inspector Inspector Service Worker lli Service Worker Ill Sewice Worker Ill service worker (Vacant) (Vacant) Service Worker ll Service Worker ll Service Worker ll Service Worker ll General Laborer The current budgeted staffing includes two Supervisors, three Inspectors, four Service Worker Ill positions, four Service Worker ll positions. one General Laborer. and one Word Processing Coordinator. Actual staffing level is at 14 individuals. The staff is located in two different locations: the Howard Street facility and the warehouse. The Word Processing Coordinator handles all KPI reporting for the Division. as well as the Sewer Operations Division. It appears that the functions performed by the staff of this Division would be better allocated to other line Divisions of the organization and not as a separate group reporting to the Executive Director or Director of Operations. Typically, one-call services are handled through the Engineering Division. and shut-off notices and terminations are handled through an outside commercial group in most utilities. In reviewing the there are eight specific indicators that are reported via the Facilities Support Group: termination notices. terminations. curb box terminations, curb boxes cleaned, curb boxes dug. one-calls, postings, and open restorations. In reviewing the reports it shows the Division does a good job of keeping up with a large volume of one-calls, but has significant backlogs in terminations, curb box terminations, and restorations. tight 24 The water distribution operations, water plant operations, collection system operations, and the warehouse supplying these facilities are located at separate facilities throughout the eastern and central portions of the service territory. The water distribution operations are presently located at northeast fringe of service area leading to logistics and service implications. The warehouse, although centrally located, is in a high traffic congestion area which makes it difficult to receive large shipments- The long-term business plan should consider the consolidation of all operations into one central facility which could result in faster response time to customer complaints. 3 reduction in travel times, and a more positive and productive organization. The water distribution and the warehouse are in poor physical condition. General upkeep of all facilities is fair to poor. There needs to be a concerted effort to improve the overall condition of the of?ce space and employee lunch room facility at the water distribution center. A crew should be utilized to bring the facility back to acceptable industry standards. Numerous utilities within the City operate a one call Division or contract out this service to a service provider. The PWSA should consider marketing its one call services to other utilities within the City's geographical area for a fee. This could represent a revenue source for the PWSA. 26 igii The Division has approximately 11 vehicles at its disposal on a daily basis, including small SUV's and pick?ups. The maintenance and servicing of these vehicles is under contract with the City and at times this has presented problems relative to replacement vehicles or access to other vehicles during down times. Findings Recommendations The Division seems to have been created by lumping together numerous functions for the sole purpose of creating a Division without any real functional symmetry. As a result, the group is somewhat dysfunctional and operating out on its own without a good organizational structure. PWSA should seriously consider eliminating this group as a Division and placing the current functions within other line Divisions. While the functions are necessary, setting this group up as a component within the table of organization is not. The Facilities Support Group current reports directly to the Executive Director. Ifthis group remains intact it should report to the Deputy of Operations or should be located with the Customer Service I Commercial Division as "Outside Commercial". However, the one?call administration should be through the Engineering Division. There is an overall need within the PWSA for a group to see that key PWSA facilities housing its operators are maintained on a regular basis. The condition of a number of PWSA facilities are somewhat depiorable and in very serious need of attention. The PWSA should consider developing a crew of caretakers whose responsibility would include the regularly scheduled maintenance and upkeep of PWSA facilities. The other option would be to outsource the maintenance of certain facilities. Currently, restorations are based on One contract for the entire service area of the PWSA. Each year there seems to be a backlog of restorations. To expedite restorations and to generate increased competitions the PWSA might consider dividing the service territory into a number of areas and letting contracts for restoration in different areas. Thus, as opposed to one contract, the PWSA might have four or five firms under contract to provide this service. 25 RPM STORES MANAGEMENT DIVISION The Stores Management Division is responsible for all inventory items, plumbing equipment, pipe, couplings, valves, brass fittings, meters, cleaning supplies, and chemicals utilized by the PWSA at all its facilities. In addition, they handle the purchase and stocking of all computer paper utilized throughout the PWSA. The Stores Management'Section is located at the PWSA warehouse on 26th Street in the Strip District, although a satellite storeroom is housed at the PWSA. Water Treatment facility. In addition to handling purchasing and inventory control of all PWSA supplies and materials, this Section also operates the meter repair shop out of the warehouse location. The Section is staffed with four full-time positions, including: three inventory clerks (two at the warehouse and one at the treatment facility) and one meter repairman located at the warehouse. Three of the employees have in excess of 20 years experience with the PWSA and the meter repairman has approximately five years with the organization. The current Supervisor has been in the position for approximately 18 months and previously was a registered plumber for 21 years. in addition to his PWSA experience, he has had experience in handling shipping and receiving for the Air National Guard. The Supervisor currently is one of the 13 who directly reports to the Executive Director. Over the years there has been very little change in the staff of this Section with the current level being the typical staffing level since the initial set-up of the PWSA. The warehouse facility, located at 26'? Street in the Strip District, is in rather poor physical condition, but unlike other PWSA facilities is centrally located relative to the organization's service territory. However, its location, although central to the service area, is somewhat distant from its predominant user groups, Water Operations and Sewer Operations. In addition, traf?c congestion in the immediate area makes it very difficult to receive large shipments. The warehouse is used to store routine and emergency supplies for both water and wastewater operations. A significant amount of water operations equipment and materials (large pipe, valves, hydrants, etc.) are stored at the Water Operations center's Brilliant Yard. The warehouse accommodates approximately 30,000 square feet of storage. The staff has made good use of the rather poor space and the warehouse seems to be well-organized in spite of the constraints of the physical facility. The facility does have a five?ton overhead crane, as well as a forklift. Hydrant crews and plumbers are the most frequent users of the central warehouse. 27 Supplies and materials are inventoried at the following five locations: central warehouse, water treatment plant, Brilliant Yard, Mission Yard, and Howard Street. Location __ltems Stored Warehouse Plumbing equipment, couplings, ?ttings, meters, cleaning supplies, paper, tools, safety equipment, etc. Treatment Plant Chemicals; treatment plant related materials and supplies; and tools Brilliant Yard Pipe, valves, and large ?ttings Mission Yard Plastic sewer pipe and larger sewer fittings I_l-loward Street Sewer grates, manhole covers, and plumbing supplies Physical inventory of all items is undertaken beginning around November each year. Approximately 15 individuals are involved. The current system tracks inventory and is updated by the Supervisor on a daily basis. Inventory clerks can research stock levels, but changes to the system are made by the Supervisor. The Supervisor maintains his KPI reporting on a daily basis, which shows activity in and out. The warehouse facility lacks a sound security system and no cameras are utilized inside or outside the facility. The meter Division tests 15-20 meters per month. Most malfunctioning meters are scrapped- Recommendations The current location of the warehouse facility, although - The PWSA should once again consider consolidating its centrally located, is removed from the location of its water and sewer operations into a central operations users and is in poor condition. center, which would also house an expanded and up-to- date warehouse component. The current system utilized for purchasing, receiving, - Continue to utilize the current technology and improve scanning, and inventorying of all items is adequate for the ability to locate specific small items via an the control of inventory. automated system. _l 28 - - It was pointed out that the City of Pittsburgh Fire - The PWSA should review its relationship and policies Department has somewhat free reign relative to flow relative to the Fire Department's roles and testing of hydrants and repairs to hydrants. Materials responsibilities relative to hydrant testing and servicing. are supplied via the warehouse, although no one within PWSA is overseeing this work. 29 RISK SERVICES MANAGER I LEGAL The Risk Services Manager Legal reports directly to the Executive "Director. The individual was initially hired in 2001 as the PWSA's Paralegal. However, as additional duties were assigned to this staff person, the overall responsibilities of the position evolved. In August 2008, the position's titie was changed to encompass the broader duties that had been assigned to this staff person over the years, including: the management of all in-house legal services; assistance with ongoing litigation, research for all easements, preparing all agreements. overseeing the PWSA's self-insurance; all aspects of managing the PWSA's building lease; handling all furnishings within the leased space; all record retention and right-to-know requests; project managing of all PWSA contracts for legal services, security, and cleaning; and handling the administration of all claims against the PWSA. In addition, this position serves as project manager for all restoration services provided by outside contracts. The manager currently attends all senior staff meetings and handles other duties as requested by the Executive Director. Since 2002 a total of 12 law firms have at one time or another provided legal services to the PWSA. Overall legal expenses have averaged $588,000 per year over the past seven years. Recommendations I The Risk Manager and the paralegal services report to - Consider reorganizing the PWSA structure to include a the Executive Director. Deputy Director of Administration to handle responsibilities to include all risk management and legal services. - The KPI results indicate the PWSA does a relatively - PWSA should continue to aggressively pursue the good job of claims administration and management. administration of all claims and expedite the process and decision?making relative to settlement of small claims. 30 There is a significant amount of open litigation on the General Docket and identified open for statutory appeals. These cases are causing increased and ongoing costs to the PWSA. 31 The PWSA needs to re?examine its policy and procedures for the utilization of outside counsel and should. at a minimum, take actions to control these legal costs on an annual basis. PWSA should revisit the issue of in-house legal counsel if it can be shown to be coSt effective. FINANCE ACCOUNTING The Finance Accounting Division is located in PWSA's central office and is responsible for overseeing all financial matters of the PWSA including: all accounting functions, accounts receivable, accounts payable, inventory, asset management; budget and procurement; long?term ?scal strategy: and managing the PWSA's long-term debt. The current Director of this Division has been in the position for approximately 10 months, although he was Acting Director from May 2005 when the previous Director vacated the position. The following table indicates the personnel budget for 2008: Description Filled Budgeted Annual Amount Director of Finance 1 1 $86,003 Accounting Manager 1 1 $73,573 ProcuremenUContract Specialist 1 1 $56,455 Financial Analyst 1 2 $115,884 Accounting Specialist 1 $37,000 Procurement Assistant 1 1 $34,373 ?0 Payroll Specialist 1 1 $34,106 WC Account Clerk 3 3 $103,020 jubtotal - Finance 9 11 $540,415 The Division is currently comprised of eight individuals. The current table of organization is as follows: Finance 8- Accounting Director Accounting Procurement . . . . Fmancral Analyst Manager Specialist Accounting Procurement Specialist Assistant Procurement Assisant Account Clerk 32 all?? Three of the employees are affiliated with the AFSCME bargaining unit. All other positions are non?bargaining unit positions. Currently, three individuals report directly to the Director. The Director reports directly to the Executive Director. Due to its responsibilities the Division interfaces with all divisions of the PWSA on a frequent basis and generates numerous reports on a quarterly, and annual basis including: daily cash collection reports; financial reports detailing budget to actual; payroll reports; private contract awards; and MBE performance. The Division has seen significant turnover, particularly during the past three to five years, and at times was as low as five or six in the Division. The Division out sources a number of its functions including: payroll check processing and taxes to the capital improvement program budgeting and tracking of project costs to Chester Engineers; lockbox collections to PNC Bank; MBEIWBE monitoring and tracking to Exico; and the annual independent audit to Maher Duessel. The Division takes a very active role in the development of the PWSA's annual budget with input from various operating divisions. Ultimately, the budget is approved by the Executive Director and then the PWSA Board. The Division plays less of a role in the formulation of the capital budget deferring that responsibility to the Engineering Consultant. Chester Engineers. However, the Division does get involved in developing the PWSA rate structure, taking into consideration operating and capital expenses; and consumption and collection data. The system is used for all accounting and ?nancial reporting with daily input of information. The Division generates approximately 225 accounts payable checks on a basis; receives approximately 110,000 bills; makes approximately 25-40 journal entries per month; enters approximater 2.500 consumption collection adjustments per month; the lockbox handles approximately 3,500 transactions per day. The system provides sufficient electronic controls for processing approving requisition orders and purchase orders. it also provides access controls in the various financial modules. However, due to turnover throughout the organization and limited staffing at times. the level of security has declined. As a result, the PWSA at its central office does not accept cash from customers. 33 When partial payments are received the PWSA policy relative to the order of posting is as follows: Most delinquent water Current water Most delinquent sewage Current sewage Most delinquent sewage treatment Current sewage treatment Current line warranty program Collections overall have steadily improved over the past five years as a more concerted effort by the Customer Service and Finance Accounting divisions have begun to show increased performance. Findings Recorxmendations - There, are 11 positions budgeted in the Finance 8. - Immediately conduct a search for the position of Accounting Division. however; the Division is currently Accounting Manager and fill the position as staffed by nine individuals. The Director of Finance has expeditiously as possible. been in his position since May 2008 and prior to that time he was the Accounting Manager reporting to the Director of Finance. The previous Director of Finance left the PWSA in May 2005 and that position remained vacant until the Accounting Manager was promoted to that position. The Accounting Manager position would also report to the Director of Finance. but at this time the Director of Finance is assuming this responsibility. The turnover in the Finance Accounting Division is problematic in that as many as seven to 10 employees have left the PWSA over the last 10 years. Vacant positions are posted and all PWSA personnel can bid on these positions. There is a six-month probation period. All employees must be City of Pittsburgh residents. Conduct a salary review study to ensure salaries are competitive within the industry for respective positions which will enable the PWSA to recruit qualified applicants. Competitive salaries should help to retain quali?ed employees; Additionally, as suggested, the PWSA needs to reconsider its position on residency. The Finance Accounting Division should review all job descriptions to establish experience requirements to ensure that only qualified candidates apply. The probation period of six-months seems too long to determine whether someone is capable of performing. The time period for employees to demonstrate their ability to perform shall be reduced to no longer than 90 days. The Division in particular and the PWSA in general does not place enough emphasis on training for its personnel. All employees should be required to attend training in their respective disciplines which will enable them to stay current with industry pronouncements and standards. 35 rill The Director of Finance is ultimately responsible for the development of the operating budget, however, he does not oversee the development or analysis of the capital budget The Director of Finance should be responsible for overseeing the development and the ongoing analysis and review of the capital budget. The Director's review and oversight of the capital budget will ensure the availability of funding sources and also ensure that projects are within budget parameters. A 5? to 10?year capital budget should also be developed and reviewed annually to reflect the ongoing needs of the PWSA. The Finance Accounting Division has no direct responsibility over Customer Service. Their only involvement is correcting mis-postings of cash receipts. All credit adjustments are the responsibility of the Customer Service Division. Both divisions report directly to the PWSA Executive Director. The organizational chart should be amended to have a Deputy Assistant Director for Administration and all administrative divisions report to this position. Although the Customer Service Division currently handles all adjustments, all credit adjustments over a certain dollar amount should be reviewed and approved by the Finance Accounting Division, and/or the new Deputy for Administration. A schedule should be developed to indicate the appropriate person in the Finance Accounting Division authorized to approve specific credit limits with the overall responsibility of the Director of Finance and ultimately the Executive Director. Internal audits have not been regularly performed due to funding and/or staffing levels. Periodic internal audits of, at a minimum, bank accounts, depository accounts, employee accounts, customer accounts, and purchasing and bid procedures, should be performed on a regular basis either in?house or perhaps as part of the annual audit. The PWSA places an emphasis on delinquent accounts of $15,000 and above, and has recorded bad debt of approximately $25 million. The PWSA should establish a policy that any account that is $150 in arrears is considered delinquent and aggressively pursue all accounts which exceed the established limit. The bad debt reserve should be reviewed and any accounts that are deemed to be uncollectible should be written off. The financial accounting software currently in place is . The system is very complex and has never been fully installed. The ?nancial statements are on a cash basis and any accruals are not considered when analyzing variances. In addition, on numerous occasions, the reports generated are not timely. The software appears to be very detail-oriented and can be a useful resource if fully implemented. If it is determined that the PWSA will continue to utilize this software, all appropriate personnel should be trained to understand and use the software as could be a very effective management tool. A modified accrual basis of accounting should be utilized when appropriate, and budget versus actual variances should be analyzed on a basis, and reasons for all variances over 10% should be reported and documented. Finally, a detailed closing schedule with deadlines should be established and distributed to all division supervisors to follow in order to generate timely meaningful management reports. Division managers should be held accountable for their budget-to-actual performance and should recognize their responsibility relative to the control of expenditures, and their role in maximizing revenues. 37 . I The PWSA website currently is not very interactive - The website should be improved and restructured to relative to processing payments, applications, etc. allow for many interactive functions. - Fringe benefit costs, with the exception of FICA, are not I All fringe benefits should be allocated, where possible, allocated by Division, but are accounted for in by each individual Division to more accurately reflect the organization-wide. true costs on a Division?by-Division basis. l_ Purchasing 1 Procurement The Purchasing Procurement function resides in the Finance 8i Accounting Division of the PWSA. Responsibility for this function is assigned primarily to two staff within the Division, although numerous individuals throughout the organization participate in the overall purchasing function. Primary responsibility is placed in the hands of the Contract Specialist and an assistant. The Contract Specialist has been in his current position for approximately seven years after joining the PWSA from the private sector where he held a similar position. In his capacity he interfaces with all functional divisions of the organization. in addition to the two staff identified above, there are 19 other staff throughout the organization that have authority to issue requisitions. At present. the Contract Specialist is the only onewho can issue "Emergency Purchase Orders". Three individuals are identified as having authority to ?goods issue". This designation allows the individual to charge all cost centers. Only the Contract Specialist and the assistant have access to all purchasing groups. These individuals require access to all purchasing groups in order to direct requisitions to appropriate approvers. In addition to the above, four personnel within the organization are able to ?approve? requisitions and purchase orders. These four include the Executive Director, the Finance Director, the Engineering Director, and the Maintenance Director. The entire purchasing system is automated through the . A requisition is created and approved within the SAP. Once a requisition is approved then a PO. is created. Currently, due to the vacancy in the Director of Operations position, the Executive Director is actively involved in approving requisitions for numerous Divisions. All capital purchases and requisitions are managed by the Consulting Engineer. The management of capital purchases is somewhat outside the PWSA system, although there is some interface. Chester Engineers pretty much oversees the entire process. The overall purchasing system seems to have adequate controls in place. Received goods are matched with the invoice and a goods receipt is issued. No invoice is ever paid via accounts payable without a goods receipt. The automated system will not allow an invoice to be paid without such a receipt. Any damages, incomplete orders, etc. are handled at the receipt and any issues are documented on the goods receipt. The Warehouse Manager controls inventory and is the only employee that issues requisitions for inventory items- Checks are out once per week after the invoices are reviewed. 39 The Contract Specialist handles: all advertising; preabid meetings; preparation of bid specs with input from Engineering and the respective Divisions; and bid openings and bid tabulations. He then oversees the development of all contracts that are executed. Vendor terms are all identified by the system and automatically applied. These terms can be overridden by the Director of Finance. Vendor history information is limited to certain Finance Division staff. The purchasing staff feels the SAP system works fairly well and seems to have adequate checks and balances. One issue that was raised relative to the system was the level of support and the three-hour time difference between the system support in California and the PWSA. The organization follows all procedures established by the PA Municipal Authorities Act relative to purchases and, where possible. the organization piggy-backs on State and City contracts when the price is beneficial. The PWSA contracts with an outside firm to assist in meeting and monitoring its MBE and WBE goals. In this regard. the Contract Specialist interfaces with the MBE contracting entity. In addition to the purchasing functions, the Contract Specialist has been utilized to handle travel arrangements for certain personnel throughout the organization attending out of town conferences and training seminars. Findings Recommendations 7 - Although there is no formal policy and procedures - In order to improve the overall system and to have more manual outlining the purchasing process, the system staff become familiarwith the system. the PWSA should seems to function very well and has built-in checks and develop a policy and procedures manual that outlines all balances. However, there are presently no dollar limits steps in the procurement process. Dollar limitation as to levels of approval. levels for approvals should be established that allow immediate supervisors to approve smaller purchases and the larger purchases require higher up approvals. - The Consulting Engineer playsapredominant role in the - The PWSA should look to bring all purchasing, both procurement of all capital purchases. operational and capital, within its oversight and control. and should identify the requirements necessary to have all capital purchasing be controlled in-house. -: it? The system appears to address adequately the needs of the PWSA relative to the purchasing functions with adequate controls and reports in place. However, there seems to be Some issues relative to support for the system, both in terms of timely response and the cost of such support. The PWSA may wish to review its options relative to the overall and certainly options relative to more timely and cost effective system support. The Executive Director currently spends a portion of his time on a daily basrs approving requisitions for all water and sewer operations, and is a back-up for the Director of Finance. Director of Engineering. and Director of Maintenance. This is not an effective use of his time to be involved in day-to-day purchasing approvals. This points out the overall need to expeditiously fill the vacant Director of Operations and to also create a Director of Administration to allow the Executive Director to deal with the long-term mission of the PWSA and not be bogged down with day-today operational decisions. All purchases must be approved by the Director. PWSA should establish a sliding scale of dollar limits for purchase approvals with the Director only getting involved in major procurements. ?Hm .. as . 41 CUSTOMER SERVICE The Customer Service Division of the is organized along three functional lines: billing and metering; collections?. and the call center. The Division provides a wide-array of services to the PWSA customers and is the heartbeat of the organization as it receives customer inquiries on a daily basis. As a result. it is essential that the Division have accurate and real-time information to address customer inquiries for services. The Division is currently staffed by 34 employees. 30 full-time and four part-time. Each functional area is headed by 3 Supervisor. I Customer Service Manager i 1 Billing 8. Metering Collections Call Center Supervisor Supervisor Supervisor t1) Acct. Coll. (1) Cl. Spec ll . (2) cse ll (1) cse (1) CSR D'spatch (2) Clerk Typist ll (4) Dispatchers (1) Dispatcher PT The billing and metering group is staffed by a Supervisor. one Customer Service Rep two Customer Services Rep It's. one Customer Service Rep full-time. and one Customer Service Rep part-time for a total of six full and partutime staff. The collection group is staffed by a Supervisor. four Customer Service Rep it?s. one Customer Service Rep 1. two Clerk Typist It's. one Customer Service Rep part-time. one Account Clerk. and one Customer Service Rep for a total of 11 ML and part-time employees. The call center is staffed by a Supervisor. one Clerical Specialist II. seven Customer Service Rep I's. one Customer Service Rep part?time. one Customer Service Rep II. four full-time Dispatchers. and one part-time Dispatcher for a total of 16 full- and part?time staff. The 2008 adopted budget showed 34 filled positions and five unfilled positions. The Division 2008 budget is shown in the following table: rep Customer Service {1911} Filled Budgeted Budget CS Manager 1 1 $61902? CS Senior Supervisor 1 1 $54.003_ CS Billing Coordinator 1 1 550,803 CS Supervisor 2 2 $101,603 WC Clerical Specialist II 1 1 $34542 WC Serviceworker ll - WC Account Clerk 1 1 $34940 WC Clerk-Typist ll 2 2 $60626 WC Clerk II - WC Customer Service Rep I 9 7 3207.552 WC Customer Service Rep II 7 8 $261,259 WC Customer Service Rep Ill 2 4 $137314 WC Customer Service Rep PT (1500 Hours) 1 5 $100149 WC Customer Service Rep Pt {1000 Hours) 1 1 $14.153 WC Dispatcher 4 4 $130630 WC Dispatcher PT 1 1 $23.37;. Total Regular $1,278.41 Total Premium 355.000 Total SAN FICA $102.006 TOTAL CUSTOMER SERVICE 34 39 $1,435,411? *Does not include other employee benefits. _j Operating Expenses 5490 1911 Repairs Maintenance Other Total Operating Expenses $5.500 General Administration ?35 1911 Customer Credit Card Fees 320.000 7115 1911 Postage $700,000 7315 1911 Billing Contract $200000 7375 1911 Meter Services 5600.000 7390 1911 Water Liens $50,000 7450 1911 Office Supplies -- 7450 1911 Of?ce Supplies 7575 1911 Training $5,000 7755 1911 One Call $211000 7735 1911 Lien Buybacks Total General Administrative $1,796,000 TOTAL CUSTOMER SERVICE $1,301,500 TOTAL CUSTOMER SERVICE DIVISION 531235.917 43 The Manager of the Customer Service Division has been in the position since June 2905 and prior to being elevated to this position had held numerous positions with the PWSA. As a result, she has extensive knowledge of the overall operation of the PWSA. The management of the Division has made a strong commitment to customer service excellence, and has initiated numerous programs to instill a sense of "Team" throughout the Division in its dealings with both external and internal recipients of the services of this Division. The management has attempted to develop a ?One Team One Goal" theme for managing its day-to-day operations. The supervisors meet with their staff on a daily basis and the supervisors meet with the Manager on a weekly basis These meetings are used to review the key performance indicators and to address issues pertaining to the Division. Generally speaking, there are very few labor issues, and management indicated no major problems with absenteeism, although due to vacations, etc. they are usually short?staffed by one person per day on average. Most of the employees of the Division are represented by AFSCME. The Division has very little overtime as management has done a good job of realigning the workforce and staying within their budgeted allocation. The PWSA has had an automated meter reading (AMR) system in place since 1999. After the installation of this system, the PWSA moved from a quarterly billing to a billing. After 10 years with the AMR the Authority still had 5,000- 6,000 accounts that were estimates. This issue was not being addressed in a proactive manner and was only being addressed in individuals' ?spare? time. A plan put forth in May 2008 was hopeful to reduce this number by 40%. The PWSA has not?dedicated the resources to clear up this problem. To have 5,000-6,000 accounts being estimated 10 years after conversion to AMR far exceeds industry standards. In addition to Division staff, the Division utilizes outside contracting services on a daily basis. Some of these outside services include: Pittsburgh Mailing Services, which is responsible for printing and mailing all PWSA bills; Chester Engineers, which is utilized to excavate curb boxes when the servicemen cannot get a curb stop; and Jordan Tax Service, which is handling all delinquencies. All servicemen (plumbers). which in most utilities are structured under the Commercial Division as ?Outside Commercial" are structured under and report to the Manager of Sewer Operations. This occurred because the Manager of Sewer Operations used to supervise these men prior to the creation of the Sewer Operations Division and is a certified plumber. Locating this function outside of the Commercial Division has the potential to cause built-in communication gaps between the Customer Service Reps. the servicemen, and the customer. The PWSA has historically had a continued problem with delinquencies. The over 90?day delinquent total as oi mid-2008 was in excess of $23 million. This number included all billing system accounts. both active and inactive. A significant number of these would be for inactive accounts. The PWSA is hopeful that their new delinquent collector, Jordan Tax Service working with PWSA outside counsel. will be able to improve the collection of delinquent accounts. The call center component of the Division is extremely active receiving both direct calls and receiving referrals from the Mayor's Service Center relative to customer inquiries. The Dispatchers work 24f? via three shifts: a.m-3 pm. 3 pm.- 11 pm. and 11 am. Part-time Dispatchers provide assistance to the regular Dispatchers primarily on Mondays and Wednesdays due to heavy call volumes. The Dispatchers all have significant years of service with the PWSA and are knowledgeable about PWSA's operations. Findin Recommendations - After 10 years with the AMR system there is still 5,000- i This issue needs to be addressed in a much more 6,000 estimated reads throughout the system. Efforts to proactive manner. A dedicated staff should be assigned clean-up this number have been limited to five staff full-time to correct this situation in an expeditious spending approximately one hour per day. timeframe. The PWSA could be losing significant revenue as a result of the current process. This actually might also be a good candidate for outsourcing. - The PWSA website is very outdated and in need of - The website should be updated on a regular basis and becoming much more interactive to address customer should be designed to be as interactive as possible to service needs. meet customer needs, e-bills, credit card payments, etc. Staffing level in the Customer Service Division has remained relatively the same level over the past 10 years, while customer service calls and PWSA services have increased significantly. Communication and response among various divisions of the PWSA with Customer Service is essential to improve the level of service to PWSA external customers. Currently. at times this communication is less than optimal. . . The PWSA should consider increasing the staffing level, as well as increasing the Customer Service Division's hours to further accommodate the needs of its customers. Many authorities and similar size utilities have moved toward having some staff available through evening hours and weekends to better serve the needs of their working customers. The Division needs to work with operating divisions, namely water and sewer operations, to structure ways of improving communication ldialogue. PWSA currently out sources the printing and mailing of its bills to Pittsburgh Mailing Services. A detailed analysis of the cost of these services vs. providing these services in-house needs to be undertaken. lf significant savings can be achieved by providing this service in-house the Authority should consider making such a move at a time in the future. Most large utilities provide this service infhouse. Although MIS does an excellent job of updating the P.C.'s serving the Division and providing training to the staff, there are a number of issues that need to be addressed between the Customer Service Division and the MIS Division to better support the Customer Service operation. Numerous issues need addressed to improve the performance of the Customer Service Division and through technology to make better use of staff time. including: increased number of for utilization of Dispatchers; automating the scheduling and leave requests; developing a system to allow adjustments to be automated as opposed to the current handwritten system. I .lVil awry-"fr. RPM Until October 2008 the PWSA was unable to take credit card payments over the web. Cash is only taken at the City-County Building and no cash payments are taken at the current downtown office. The PWSA must devise a system that allows cash payments at a convenient location preferably at the downtown office. Very few utilities the size of the PWSA refuse cash payments. The current collection rate of 97% is within acceptable industry benchmarks. The PWSA needs to continue to emphasize and update its collection practices in order to continue to aggressively pursue its collections and perform within acceptable industry benchmarks. The PWSA currently out sources the excavation of curb boxes. Very few utilities the size of the PWSA outsource such an activity. The PWSA should handle all curb box excavations in? house, and staff and equip to provide such service through the in-house workforce. There currently is not a prepared operating procedures manual for the PWSA Dispatchers or scripts to reSpond to certain pre-determined instances. Three of the current Dispatchers are approaching retirement age and service. The Division should work to standardize operating policy and procedures, and develop a manual for the Dispatchers. Often times, as service orders tickets are generated by Customer Service. there is little response back to the Customer Service personnel as issues are addressed and followed-up. As service orders are completed the operating divisions should inform the Customer Service Rep who initiated the order and not just enter the completion in the SAP system. Perhaps the service order completion should be entered via Customer Service where it originated. 47 . - Customer Service management has done an excellent - The Manager and Supervisors should continue to job in trying to instill a sense of "Team" among its staff pursue creative ways of moving its "One Team - One and an understanding of the need to focus on both Goal? theme to new heights and meeting industry external and internal customers. benchmarks. WE WATER OPERATIONS MAINTENANCE DIVISION The Water Operations Maintenanc service system. In providing this se Division is primarily headquartered with 35 years experience with the PW organization. in addition to these four operations of crews both during daylig additional crews undertaking: classification, there are nine oth classifications: out of the Brilliant Yard fac SA and City. upper management personnel, In addition to the crews wh operation and maintenanc The following table identifies the 2 leak detection. and valve er job classifications. ility. Foreman who oversee the daily 0 handle line repairs. there are E. In addition to the foreman 008 budget for the various Description Filled Budgeted Annual Amount _u ?ater Operation Manager 1 1 $73,571 WC Clerk ll PT (1500 Hrs} - _Valve Leak Supervisor 1 1 $64.93 ialve Hydrant Supervisor 2 2 $112,774 Authority Systems Specialist WC Water Repair Foreman 7 7 $334,058 Heavy Equipment Operator 4 5 5219.893 Leak Detection Specialist 2 2 $85,155 BC Leak Detection Operator -- 80 Valve 8. Hydrant Specialist 5 5 $206,799 BC Valve 8. Hydrant Operator 4 4 $163,151 BC Equipment Repair Specialist 1 2 $82.68? BC Pipeline Repair Specialist 14 14 $571,028 _?C_Truck Driver Special (Winch) 3 3 $122,169 BC Truck Driver 13 14 $563,170 Laborer Special BC Laborer 21 22 $802624 Subtotal Water Operations 78 82 $3,401,992 Total SIW Regular $3,401,992 iota! SIW Premium $300,000 Total SM - FICA $283,202 WATER OPERATIONS 78 82 cases? At the time of this review the-Division had 81 illed positions. The 200 8 fringe benefits. Approximately 20 of the workforce hold "distribution" certi udget for personnel was $3,9884194 ex ficates. clusive of 49 in addition to the in-house staff, the PWSA distribution system in what is loosely classified as "emergency contractors as a standard practice. it should be pointed out that th 1325. Likewise, "Restoration", which is bud higher are assigned to outsid emergency waterline repairs. and not under ?Water Distribution" "Facilities Support" 1923 and not under ?Water Distribution". The following ta ble identifies non-personnel expenditures budgeted for 2008 and prior years from 2005: utilizes the services of numerous contractors and firms to maintain the water situations. Any break occurring on lines 24" in diameter or in the 2008 budget, $1.4 million was budgeted for is budget line item appears under "Facilities Support" 1923 geted at $1 million. is also reported under 2008 2007 2006 2005 200'5'12007? Account Description BLdget Budget Budget Budget Change Employee Benefits 4175 1325 Uniforms $47,500 $37,500 $35,000 $32,500 $10,000 Total Employee Bene?ts $47,500 $37,500 $35,000 $32,500 $10,000 Operating Expenses 5140 1325 Fixtures 8. Furniture $2,000 $2,000 $2,000 $2,000 5160 1325 Office Equipment $2,000 $2,000 $2,000 $1,500 5190 1325 Vehicles (2008 Supplemental} $125;000 $125,000 -- - 5210 1325 Asphalt Hot $70,000 $70,000 $90,000 $100,000 5227 1325 Brick $1,000 $1,000 $1,500 $1,500 5230 1325 Cement Bagged (Ready Mix] $10,000 $20,000 $25,000 ($10,000 5230 1325 Cement Bagged $10,000 $10,000 5235 1325 Gravel $11,000 $11,000 $12,500 $12,500 5245 1325 Lumber $10,000 $10,000 $10,000 $10,000 5250 1325 Sand $75,000 $50,000 $50,000 $50,000 $25,000 5255 1325 Slag $75,000 $50,000 $50,000 $50,000 $25,000 5265 1325 Top Soil $5,000 $5,000 $6,000 $6,000 5330 1325 Debris Removal $70,000 $70,000 $75,000 $75,000 - - 5340 1325 Dumpster $6,000 $6,000 $5,000 $3,000 5350 1325 Keys Locks $400 $400 $400 $400 5355 1325 Landscaping $10,000 $15,000 $15,000 ($10,000) 5390 1325 WeldingService $500 $500 $500 $500 5405 1325 Building Property Repairs $10,000 $10,000 $6,000 ($10,000) 5420 1325 Fence Repairs -- $7,500 $7,500 $2,500 ($7,500) 5452 1325 Machinery Repairs (Backhoe) $80,000 $80,000 $75,000 $50,000 5457 1325 Office Equipment Repairs $2.500 $2,500 $2,500 $1,500 5482 1325 Tools Repairs $0,000 $49,810 $6,000 $6,000 5491 1325 Vehicle Repairs $25,000 $25,000 $25,000 $15,000 Total Operating Expenses $576,400 $597,710 $465,900 $433,400 ($21 ,3101 $th 50 Q15 1325?1300 Sgwer Man?hoFSiCEtEh Ba?si-nh lmrentory $5,000 $5,000 6025 1325 1400 Castings - Risers 8. Lids 6060 1325 1400 Castings ~Water Valve Box $18,000 $18,000 $10,000 $10,000 ,_6245 1325 1420 Materials 8 Handling $3,000 $3,000 $2,000 $2,500 6260 1325 1420 Safety Equipment $10,000 _6315 1325 1430 Fittings $50,000 $50,000 $55,000 $55,000 6320 1325 1430 Hardware Other $8,000 $8,000 $8,000 $8,000 - 6325 1325 1430 Hose 8. Fittings $2,000 $2,000 $5,000 $5,000 6340 1325 1430 Machinery Misc. (Grounds Maint. Supplies) $2,500 $2,500 $2,500 $2,500 6340 1325 1430 Machinery Miscellaneous 4 6345 1325 1430 Meters (Repairs) -- $5,000 $5,000 -- 6345 1325 1430 Meters [Repair Parts) $3,000 $3,000 - 6350 1325 1430 Plumbing $25,000 $25,000 awn $40,000 6355 1325 1430 Power Tools $2.000 $2.000 $2,000 $2,000 6360 1325 1430 Tools $5,000 $6,000 $6,000 $6,000 - 6365 1325 1430 Tools Hand $12,500 $12,500 $15,000 $15,000 6420 1325 1440 Backhoe (Materials 8 Parts} $10,000 $10,000 $10,000 $10,000 - 6506 1325 1450 Batteries Small $2,000 $2,000 $3,500 $3,500 6515 1325 1450 Cleaning 515.000 $15,000 $15,000 $15,000 6518 1325 1450 Concrete Accessories $1,000 $1,000 $500 $500 6520 1325 1450 Copier Paper $1,000 $1.000 $1,500 $1,500 6526 1325 1450 Filers HVAC $1,000 $1,000 $1,000 $1,000 -- 6530 1325 1450 First Aid $300 n? 6540 1325 1450 Lamps $2,000 $2,000 $2,000 $2,000 -- ?44 1325 1450 Lubricating Oil $2,000 $2,000 $2.000 $2,000 6548 1325 1450 Paints, Oils, Putty, Glass $3,000 $3.000 $2,000 $2,000 6552 1325 1450 Paper Products (Towels) $500 $500 $1,000 $1,000 6552 1325 1450 Paper Products (TPJ - 4 6555 1325 1450 Pump Oil $500 $500 $500 $500 6565 1325 1450 Sewer Material 8 Supplies $2,000 $2,000 $4,000 $4,000 -- 6570 1325 1450 Testing Dye $1,000 $1,000 $2,000 $2,000 6580 1325 1450 Vehicle Oil $500 $500 $1,000 $1,000 -T 6585 1325 1450 Welding Supplies $500 $500 $1,000 $1,000 6645 1325 1460 Parts Other (Hydrant) $50,000 $50,000 $60,000 $60,000 _6660 1325 1460 Yard [Material 8 Parts) $2.000 $2,000 $5.000 $5.000 6705 1325 1470 Pipe 6710 1325 1470 Pipe Ductile $20,000 $20,000 $20,000 $20,000 6755 1325 1470 Pipe Plastic 1325 1470 Pipe Lines $5,000 $5,000 $5,000 $5,000 51 REM ?6805 1325 1480 Valves 12" Less $20,000 $20,000 $200001 $20,000 6820 1325 1480 Valves 16" a Greater $1.000 $1.000 $2.000 _?.000 Total inventory $272,000 $212000 $314,500 $325.300 General 11 Administrative 7010 1325 Membership Fees $1.000 $1.000 $1.000 $1.000 7215 1325 Equipment Rental $8.000 $8.000 $10,000 $10,000 T383 1325 Professional Services Other 7423 1325 Fuel Kerosene $350 $350 $350 $350 7424 1325 Fuel Propane $400 $400 $500 $500 7443 1325 Ice $2.000 $2.000 $1.500 $1.500 7450 1325 Office Supplies $1.000 $1.000 $3.000 $2.000 7450 1325 Office Suppiies -- Total General Administrative $12,750 $12,750 $15,350 $15,350 HOTAL DISTRIBUTION $908,650 $919,960 $331,750 $305,550 [$11,310 The combined expenditures for personnel (exclusive of fringe) operating expenses. and the amounts for emergency water line repair and restoration. are in excess of $7 million for the Water Operations Maintenance Division. This is not a high ?gure when one considered the miles of water main. and the various age and condition of the infrastructure. The Division is served by a fleet of approximately 50 vehicles in various conditions ranging from poor to good. The Manager and three Supervisors have takeehome vehicles. but the Foreman do not and thus have to report to the yard when called out. The Water Operations Maintenance Division struggles. as do most major metropolitan area utility providers. with maintaining an aged infrastructure. The PWSA utility operation is restructured from a City-owned and operated system to a municipal authority independent of City-control. Staffing in this Division at one time topped off around 100 housed at two separate locations years ago when it was under City-control. However. in actuality. a number of operational compromises exist between the City and the PWSA which add difficulty to efficiently managing the distribution assets of the PWSA. Fire hydrants and vehicles fall under City-maintenance and control. Additionally. there exist numerous operational and development issues between the Division and other City authorities. Urban Redevelopment Authority; Sports and Entertainment Authority; Housing Authority; etc. E?Findin - The most obvious need in the Water Operations at Maintenance Division organizational structure. the technical abilities and their jobs well, however, they seem to be uncertain related responsibility, and authority. of the PWSA operation is Supervisors appear to have skills necessary to perform their to accountability, budgetary control, - The responsibility for expenditures in the Water Operations 8: Maintenance Division has limited controls for labor. materials. and contracted services. There needs to be improved accountability and responsibility for expenditure monitoring and control. Recom?i??dE'tib?E?' x_ - All activities of the Division should fall under the three Supervisors. Lines of responsibility and lines of communication should be clearly delineated. There should be regularly scheduled meetings involving the three Supervisors and the Manager to discuss and plan weekly operation and maintenance activities. - PWSA may wish to reorganize the Division by having a General Supervisor who would oversee all the foreman of crews and two Supervisors, one handling valves hydrants and one handling leak detection. - Controls for expenditures need to be established for material purchases and for contracted service?s. De?nitions for how, where. when, and why. and most importantly, at what cost contracted services are required and authorized. A protocol should be established with various levels of authorization required for contracted emergency services without exception. Example: An estimated emergency repair using outside services should. at a minimum, be verbally authorized by the Director of Operations and/or the PWSA Executive Director followed up by electronic or written confirmation. Unknown levels of expenses for these types of services should be eliminated. 53 are? The Water Operations Maintenance Division often does not have sufficient input with the Engineering Division and the Finance Division as the Capital Improvement Program is being determined. Projects that eliminate potential high cost maintenance areas of PWSA operation often are not given priority with the development of the Long?Range Capital Plan. The Water Operations Maintenance Division should maintain a detailed main line leak history categorizing information such as location, line size, material, damages, water loss, and total repair costs, which should be reviewed regularly in conjunction with the Engineering Division to determine main line replacement priorities to coincide with the development of the capital expenditures budget. Projects impacting operation and maintenance should be given priority. There is a need to increase interdivision communication, particularly among supervisors and front-level managers. Most divisional communication occurs between the division managers and the Executive Director, or between division managers. Most supervisors could not recall having a meeting of all supervisors and managers throughout the PWSA as a whole. It is imperative for all water and wastewater elements of the PWSA to meet regularly to coordinate efforts for providing utility service to its customer base. divisional meetings should be mandatory with pre?determined agendas established, reviewing the previous month's activities, and planning the next month's work program. Additionally, semi-annual management meetings including all management employees should be held with one agenda item being a presentation by each division on its current activities. This would open up discussion and identifying the impact of these activities on other divisions. Water Operations Maintenance supervisors have a very difficult time communicating with the foreman and labor force once crews have been mobilized to various job sites due to a less than adequate communications system. Supervisors need the ability to monitor their Workforce and their daily activities. All crews and vehicles should be equipped with cellular phones with GPS tracking attachments to allow for communication with field personnel and for management's monitoring of field personnel. Fa__ - The current arrangement via maintenance of the PWSA fleet is less than adequate and results in significant downtime for PWSA's fleet. The PWSA does not seem to be given any priority in the scheduling of maintenance activities and often has its needs addressed after other City vehicles. the City for the - There needs to be improved coordination in the delivery of vehicle fleet maintenance services and scheduling. if improvements to this current system cannot be instituted then the PWSA should consider other options either via having its own mechanics or considering alternative outside services. The current practice of the City of Pittsburgh's fire personnel testing and maintaining the City's 8,000 fire hydrants needs improvements, particularly via communication in advance with the Operations :5 Maintenance Division. Currently, the unrestricted access without having to notify the PWSA of hydrant Operation results in disruptive events for the water distribution system and impacts mainline breaks, dirty water complaints, and potential property damage, which could be avoided with prior notification. Protocols must be developed and agreed upon by the PWSA and the City Fire Department reiative to hydrant maintenance and scheduling. The PWSA must have prior notification of any ?re hydrant operations within its service territory for any purpose other than actual firefighting operations. PWSA hydrant inspections should be done after every event, which requires the activating of a fire hydrant to insure that the hydrant and the effected distribution lines and valves have not been damaged, and are in good operating condition, and stand ready and available for protection of the public. The labor classifications in the Water Operations Maintenance Division are far too excessive and too specialized. Most major utilities have moved toward consolidation of classifications into more general utility classifications. 55 line item basis. but are located in other Divisions' budgets. reported under the Facilities Support Division budget. Management of the Division does not meet on a regular basis to review budget performance on a line item by All line items under the control of the Division are not reported under the Division's budget, emergency water line repairs and restoration. which are All expenditures under the control of the Water Operations 8. Maintenance Division should be itemized by account number and reviewed on a basis comparing actuals to budget, as well as actual to actual for the same period in the previous year. After this review a variance report should be generated with explanations required for dollar amounts exceeding a pre-determined value. Additionally. target dates for completion of this review should be identified and should take into consideration sufficient time in the financial reporting period to make adjustments, if necessary. This process would give supervisors more responsibility and accountability for Division spending and control. Water Operations Maintenance Division. I City agencies and authorities involved in development and redevelopment often proceed with projects without sufficient input as to specifications. etc. from the PWSA All City affiliated entities should follow the same procedures and policies. and specifications identified for private developers relative to approvals via the PWSA. information. etc. replacements. if they have Operations 8. Maintenance updated access. - Many system maps have not been updated with as-buiit relative to new deveIOpments and been updated. the Water Division does not have All maps should be brought up?to?date and digitized and made available to the Water Operations Maintenance Division. Alter projects are completed the Division should receive updated mapping from the Engineering Division. bargaining unit and all receive overtime. - The seven foremen of the Division are all covered by a - . Em. I The PWSA should place an added emphasis and additional personnel on active leak detection. Em - The Division, working with the Human Resources Division, should develop a scheduled training program at least quarterly for Division personnel. Numerous entities, including vendorsr make training programs available and are willing to provide the training free of charge. r?v?h-HFH? - The PWSA does not aggressively and pro-actively emphasize leak detection. A more systematic and pro? active approach is needed. - The amount of in?house training needs improved. There is very little evidence of a detailed in-house training program on an annual basis. - There is very little evidence of a "planned" preventive a "planned" maintenance maintenance program in place throughout the program that includes transmission main inspections; distribution system. The Division is primarily "reactive". hydrant flushing and painting; valve exercising; and leak detection. I. SEWER I SERVICE OPERATING DIVISION The Sewer I Service Operating Division is responsible for the operation and maintenance of the City's 1,400 plus miles of sewer lines, catch basins, and appurtences; the administration of the PWSA's consent order relative to CSO's, which includes an active catch basin cleaning and repair program, as well as an aggressive televising of all City lines and monitoring of all outfalls; and reSponding to all complaints pertaining to sewer operations. In addition to the sewer operations, this Division handles all service functions of the water system responding to all service calls generated through the PWSA's noti?cations, work order system. All taps, meter change-outs, and meter service requests are handled through this Division. The Division is organized as follows: Sewer I Service Manager 9 Plumbers 1 Clerk 1 Pipeline Repair 1 Sewer Construction Sewer Sewnce . . Supervrsor upervtsor 1 CCTV Specialist 5 General Laborers 1 CCTV Operator 2 Truck Drivers 4 Vac-Truck 1 Heavy Equipment Operators Operator 2 Skilled Laborers 5 Laborers The Manager has been in his position since 2000, when the Sewer Division was created. Prior to this position he was the PWSA Service Supervisor and has over 26 years of service with the City and PWSA. When the Sewer Division was created these responsibilities were assigned to the Manager in addition to his service functions, thus he functions both in Sewer and Water operations. The Division is housed out of two locations. Sewer catch basins and manholes, is housed out a Supervisor and eight staff who mainly handle the demolition and repair of PWSA's catch basins. Daily operations are handled by two crews of three comprised of one Truck Driver and two Laborers. The crews split the services of one Backhoe Operator. Daily work assignments are generated out of Howard Street from the Manager or the Supervisor of Sewer;l Service. These assignments filter to the Sewer Construction Supervisor and down to the crews. Sewer Service operations are housed at the Howard Street location on the City's Northside. The Manager and the Sewer Service Supervisor are housed at this location. On the sewer side four crews are utilized comprised of the following: TV Crew TV Operations, TV Specialist, Vector Truck Operator, Laborer Catch Basin Cleaning Crew ll Vector Truck Operator, Laborer Catch Basins Cleaning Crew Ill Vector Truck Operator. Laborer CSO Monitoring Crew IV Skilled Laborers (2). The following table shows the 2008 personnel budget for the Sewer Service Operating Division. Personnel, excluding fringe, were budgeted at $2,105,836 for 2008. Position Filled Budgeted Annual Amount ivc Clerk PT (1500 Hrs) - 1 $21,236? Sewer 8. Service Manager 1 1 $73,571 Sewer Construction Supervisor 1 1 $56,386 Sewer Service Supervisor 1 1 $56,387 WC Sewer Repair Foreman - - w; WC Service Foreman - - BC Plumber 9 12 ?539,279 BC Heavy Equipment Operator 2 2 $87,959 BC TV Truck Specialist 1 2 $85 157 7 BC Truck Operator 1 2 $84,014 BC Pipeline Repair Specialist 1 1 $40,781 BC Plumber's Laborer 1 1 $38,9i i so Truck Driver Speciagvvinch) 4 5 1 $203,519 59 BC Truck Driver 2 2 $80,457 BC Mason BC General Laborer 4 6 $241,982 ac Skilled Laborer 2 2 $77,361 BC Laborer 5 5 $182,406 WC Clerk II 1 1 $29,665 Total SIW Regular $1,899,188 Total SIW Premium 55?,000 Total SIW FICA $149,648 TOTAL SEWER OPERATIONS 36 45 $2,105,836 The table below shows the budgeted operating expenses for the Sewer Service Operating Division for 2008. Total non- personnel operating expenses were budgeted at $739,200 for 2008. Sewer operating expenses have increased steadily since 2005 due mainly to increased calls, as well as increased workload generated by the consent order. Operating expenses have grown from $311,200 in 2005 to $?39,200 in 2008, a budgeted increased of 138% over the three-year penod. 2008 2007 2006 2005 2008l2007 Account Description Budge_t Budget Budget Budget Cl??ge Employee Benefits 4175 1424 Uniforms $12,000 $10,000 $10,000 $10,000 $2,000 Total Employee Bene?ts $12,000 $10,000 $10,000 $10,000 $2,000 Operating Expenses 5140 1424 Fixtures Furniture $10,000 $10,000 $10,500 $10,500 5150 1424 Machinery Equipment $1,000 $1,000 $1,000 $1,000 5190 1424 Vehicle $125,000 $125,000 5227 1424 Brick $3,000 $3,000 $6,000 $6,000 5230 1424 Cement Bagged {Ready Mix] 5230 1424 Cement Bagged $4,000 $4,000 $6,000 $6,000 5235 1424 Gravel $7,000 $7,000 $7,000 $5,000 5245 1424 Lumber $3,000 $3,000 $4,000 $4,000 5250 1424 Sand $15,000 $15,000 $15,000 $10,000 5255 1424 Slag $30,000 $30,000 $30,000 $25,500 5250 1424 Stone $500 $500 $500 $500 5265 1424 Top Soil $1,000 $1,000 $2,000 $2,500 5330 1424 Debris Removal $35,000 $35,000 $35,000 $30,000 5340 1424 Dumpster $3,000 $2,000 $2,500 $2,500 $1,000 5341 1424 Vactor Debris Removal Contract $200,000 $200,000 $150,000 5350 1424 Keys Locks $500 $500 $500 $500 5355 1424 Landscaping $500 $500 $1,000 $4,500 5390 1424 Welding Service $500 $500 $500 $500 so RPM 5452 1424 achine Backhoe Reairs 7 610.000 $5.000 5457 1424 Of?ce Euiment Reairs $500 $500 $500 5462 1424 Tools 6 Reairs 64500 ?$4.500 ?51.500 5488 1424 5490 1424 5491 1424 Vehicle Repairs Machine ?Im - Ex - 611563 $552,000 lnvento 6015 14241400 Castins Sewer Manhole 8. Catch Basin 6035 1424 1400 Castins Sewer iniei 6245 1424 1420 .1303 $500 62601424 1420 6315 1424 1430 Fittings $8.000 6320 1424 1430 Hardware $6.000 Hose 8: Fittings 50 $500 Machineq Misc. (Grounds Maint. SugglL_ 6345 1424 1430 Meters 660.000 . 63501424 1430 Plumbin . ?00's Power TooiS~lnvento Tools Hand Materials Parto? Backhoe $4.000 6506 14241450 Batteriesw Smaii $1.000 $500 651514241450 651814241450 $500 653014241450 65401424 1450 ?$500 ?5500 ?5500 ?$500 aims. Oils. Putt .Giass 5405 1424'? Bending 3 Progeny Regains 6?2 000 62.000 ?17.000 5420 1424 Fence Regairs $1.000 $1.000 $2.000 - $7.500 I 6548 1424 1450 656214241450 Paer Products Towels mm 655214241450 Paer Products 6565 1424 1450 6570 1424 1450 $500 6645 1424 1460 $500 ?$7.000 ?$10.000 ?$10.000 Hm $169,750 6680 1424 1460 671014241470 6755 1424 1470 Total IHVento u. --. 7" General 3. Administrative 7010 1424 Membership Fees $500 $500 $1.000 $1000 7215 1424 Equipment Rental $3,000 $3.000 $5,000 $5,000 7383 1424 Professional Services Other 7423 1424 Fuel Kerosene $250 7424 1424 Fuel Propane $200 $200 $200 $200 7443 1424 Ice $750 $750 $750 $500 7450 1424 Office Supplies $750 $750 $750 $500 7450 1424 Office Supplies -- - 7490 1424 Welding Supplies $250 $250 $250 $250 Total General 8. Administration $5.450 $5.450 $7,950 $7,700 TOTAL SEWER OPERATIONS $739,200 $588,058 $525,450 $311,200 $151,142 In addition to the in-house staff, the Division has numerous contracts with private contractors to provide additional attention to the PWSA sewer system. Annual contracts are bid and awarded for catch basin replacements, major sewer repairs, televising of lines, and catch basin cleaning. The PWSA utilizes a computer management maintenance system (CMMS), which is a very detailed accounting of all tasks completed on a daily basis. This system is maintained through the Manager's office. Codes 500 through 573 deal with the water side and 574 through 850 pertain to the sewer operations. Water Operations 520 Customer service shut-off Code Code Description 521 Abandon service line shut 500 Large meter replacementlUME 522 Leak repair 501 Meter replacement 523 Leak repair 10'-20" 502 Meter replacement (outside crock) 524 Leak repair 24"-36" 503 Replace remote 525 Leak repair 504 Install remote 526 Valve replacement 505 Repair remote 527 Valve replacement 10"-20' 505 Pump servicellemporary service 528 Valve replacement 24"-36" 507 Repairlreplace service line 529 Valve replacement 508 Curb box location 530 Hydrant replacement with valve 509 Curb box shut veri?cation 531 Hydrant replacement without valve 510 Complaint investigation 532 Hydrant Inspection/repair 511 NHLN 533 Hydrant flow test 512 New meter installation 534 Valve operation 513 New meter/service line inspection 535 Valve operation 10'-20" 514 Drill ferrule 536 Valmperation 24??36? 515 One-call system 537 Valve operation 516 Low volume GPM test 538 Tap 4" 517 Final reading 539 Tap 6" 518 Customer service scout 540 Tap #519 Customer service personal contact 541 Tap 12" are ar lids catch basin or manhole 63 542 559 Water sample taken - run g? 'l 543 Leak detection sunrey 560 Water sample tat-ten - sewage 544 Leak detection about 561 Reset platesibarn'cades ?_545 Shut-off yard crews 362 Customer's responsibility 5!ng Shut-off private contractor 563 Shut st. to vacant house 547 Job pending [location under remarkier 564 Low volume program Tia Haul plates 555 Line location 549 Excavation 566 Dog curb box 550 Other [specify Under remarks] 567 Blow out curb box _551 Reset hydrant 568 Replace curb stop 552 Abandon hydrant 569 Replace curb box 553 Relocate hydrant 570 Split service line 554 Pulled hydrant down 571 Main relay 555 Paint hydrant 572 Restoration 556 Greaseipressurei?ush hydrant 573 Frozen motor 557 Send waste water notice 558 Water sample taken city water Sewer W0 ln-house restoration work Code 601 ln-house basin repair shut - customer uest am 650 311 Catch basin CB - 651_ 311_Catch basin clean 652 311 Catch basin clean recoup Sewer 4 5 BOA defects 653 311 Catch basin cleaning contractor Catch in ct 700 Contractor - repairs contract Catch basin 725 Contractor restorations basln lid 750 Contractor catch basin cleaning 751 Contractor sewer repairs line 752 Contractor repairs terminations 753 Contractor - repairs non-access Sewer 754 Contractor- CCTV building sewer risers 755 Contractor - CCTV main seWBr to 800 CIP manhole lining 801 sewer gunite Sewer television 802 CIP sewer lining Manhole lid on! 803 - root cutting to ?04 CIP - sewer heavy cleaning monitorin data collection 805 CIP manhole rapain'repiacement sewer 806 point repair clea 807 sewer improvement 808 CIP manhole heavy cleaning treatment catch basin or Customer?onsible - sewer lateral failure In addition to the data contained in the CMMS, the PWSA makes use of its key performance indicators to track overall Division performance on a weekly, and annual basis. Notifications which result in follow-up by the Division are generated through the PWSA dispatch center and through the Mayor?s Service Center. Reviewing 2008?s totals through the month of October showed that the Sewer Division received 7,411 noti?cations during the 10?month period or an average of Mt per month. Of the notifications, 4,621 were completed or 62%, and 2,791 were incomplete or 38%; although~only 1,312 or 18% were listed as "open" as of the end of October. This indicates the large volume of work generated in response to complaints coming through the Mayor's Service Center and Dispatch. Because of the large volume of calls, most of the Division's efforts are of a "reactive" nature and very little time is left for planned preventative maintenance activities. While over 80% of the Division?s time is spent in addressing complaints, less than 20% is spent on preventative maintenance. The Division's motorized fleet is comprised of the following: Howard Street Mission Street 4 Vector Trucks 2 Dump Trucks 2 TV Trucks 3 Pick-Up Trucks 1. Compressor Truck 1 Back-Hoe 10 Plumber Vans 1 Compressor Most of the equipment is in fairly good shape, although numerous individuals interviewed expressed concern over the City?s handling of vehicles' servicing and repairs. Findings Recommendations - The water service functions housed under the umbrella of Sewer/ Service Division seem structured that way not for organizational functional purposes, but due to past personnel responsibilities. Place the Plumbers under Customer Service as ?Outside Commercial" since most of their work is generated either by Customer Service and/or by notifications tunneling through dispatch. This would allow for better communication and follow-up. 52' 1h. There is a need for increased first level supervision of crews in the ?eld. The Division in particular and the PWSA in general does a good job of collecting and classifying data through both the CMMS and the KPI, although some of the KPl?s could perhaps be consolidated or only tracked annually instead of weekly and PWSA should consider creating at least two to three foremen positions to supervise the daily work of the crews. PWSA should continue to maintain its excellent data base, although it should annually revisit the KPl's and determine those that might be removed or consolidated so that managers are not consumed by reporting and data that takes away from their time to manage their operations. The Manager of the Sewer Service Division reports directly to the Executive Director due to the fact that a Director of Operations position has been vacant for a number of years. it is essential for the PWSA to fill the Director of Operations position in order to free-up the Executive DireCtor to spend time on long?term organizational plans. as well as to improve the communication and interface between the various operating divisions of the PWSA. There needs to be much more interaction between the operating divisions and this position would be key to that occurring. Numerous activities are handled both in-house and via outside contracts. The PWSA should analyze the cost of utilizing outside contractors, particularly for catch basin repair? construction, and cleaning; and consider adding additional crews to complete these activities in?house. Current federal economic stimulus funding might be an available resource to assist PWSA in adding crews to address this need. 65 The labor classifications throughout the Division in particular and the PWSA in general are too numerous. In the laborer classification alone there are three classifications: general, skilled, and regular. The operating budget shows item 5305 ?Annual Sewer Contracts" and item 5345 "Inspectors (Sewer Cleaning under Facility Support 1923. when in reality these should be reported under Sewer Operations 1424. Budget line item accounting should be placed in the Division that oversees that particular cost center. In future budgets, for reporting purposes, these identified items should be classi?ed under Sewer Operations. Current ?eld operations are primarily "reactive". Establish a targeted percentage of collection system work to be performed on a "planned" basis, either preventive or predictive. The Division needs to move from ?reactive? to "planned" operations. pf? light TREATMENT PROCESS DIVISION The Treatment Plant Division is responsible for all aspects of the treatment storage "facilities, pump stations, chlorine booster stations, regulatory st reservoirs. plant, as well as all field operations including: ations, the new membrane facility, and the This Division is staffed with 40 full?time positions. Four positions are filled by management personnel and 36 positions are filled by blue collar bargaining unit employees. The following table shows the 2008 budgeted positions: Position Filled Budgeted Annual Amount Plant Manager 1 1 $79,631 Maintenance Superintendent Maintenance Supenrisor 3 3 BC Electrician 2 3 $138,876 BC Plumber 1 1 $44,940 BC Steam?tter 1 1 $44,391 BC Welder 1 1 $43,864 BC Stationary Engineer 4 4 $1?2,519 BC Plant Operator Class A 6 7' $305,925 BC Plant Operator Class BC Plant Operator 4 4 $1702? BC Machinist 1 1 $43,535 ec Painter 1 1 3342,45 BC Instrument Technician 2 2 $87,407 BC Equipment Repair Specialist 3 3 $124,033 BC Truck Driver Class 2 1 1 $40,226 Laborer 9 10 $364.87 Subtotal: Plant Operation Maintenance 40 43 $1,872,171 Total Premium 32K, Plant $200,000 Total SIW FICA $143,221 TOTAL PLANT $2,215,392 67 The Division current table of organization is as follows: Plant Manager Bin EHBHCE Maintenance Supervisor . . Chemical 5. Clari?er Supen?'s?" F'e'd Ops ps. I I Maintenance 1 Supervisor Field I Operations Craftsmen Instrument Tech (2) Equipment Repair Spec. (3) Stationary Eng. (4) Plant Operator A (5) Plant Operator (4) Driver (1) Laborer (9) 2008 2007 2006 2005 2008l2007 Account Description Budget Budget Budget Budget Change Employee Benefits 4175 1322 Uniforms $10,400 $10,400 $10,400 $10,400 -- 4180 1322 Tuition Reimbursement $5,500 $5,500 $5,500 $5,500 Total Emjiloyee Bene?ts $15,900 $15,900 $15,900 $15,900 Operating Expenses 50101322 Boiler Chemicals $17,500 $11,500 $15,988 $11,350 5015 1322 Calcium Hypochlorite $155,000 $135,000 $186,375 $177,500 $20,000 5020 1322 Cat-Floc Tl $89,000 $89,000 $89,000 $46,400 5025 1322 Caustic Soda $67,000 $50,000 $45,500 $15,500 $17,000 5030 1322 Chlorine Cylinders u- -- 5040 1322 Citric Acid $18,150 $16,500 $15,000 $7,500 $1,650 5045 1322 Copper Sulphate $160,000 $100,000 $89,500 $23,600 $60,000 BR KW 5050 1322 Ferric Chloride 171,252,500 $1,010,000 0 $925,000 $786,000 5242,5001 5055 1322 Hydrofiuorosilicic Acid $340,500 $130,000 $112,500 $80,000 $210,500 i360 1322 Lime $215,000 $201,500 $201,600 $192,000 $13,400 _5065 1322 Potassium Permanganate $269,500 $254,100 $254,100 $242,000 $15,400 5070 1322 Powdered Active Carbon $112,500 $112,500 $103,000 $102,500 5075 1322 Soda Ash $1,125,500 $600,000 $592,000 $339,000 $525,500 5080 1322 Sodium Hypochlorite $576,000 $476,000 $476,000 $325,000 $100,000 gubtotal? Chemicals $4,500,650 $3,192,200 $3,115,063 $2,348,850 $1,308,450 5140 1322 Fixtures 8 Furniture $3,500 $3,500 $3,500 $3,500 5145 1322 Grounds MaintenaHCe $5,700 $5,700 $5,700 $6,500 - 5150 1322 Machinery $50,000 $50,000 $50,000 $15,000 5160 1322 Office Equipment $500 $500 $500 $500 -- _5190 1322 Vehicles $00,000 $80,000 5240 1322 iron, Steel, Brass $1,500 $1,500 $1,500 $1,500 ?245 1322 Lumber $500 $500 $500 $500 _5270 1322 Materials Other H- 5310 1322 Boilers, Compressors, Elevators $2,400 $2,400 $2,400 $2,400 ?20 1322 Cleaning Services -- 5340 1322 Dumpsters $3,100 $3,100 $3,100 $3,400 5345 1322 inspection Services $5,500 $6,500 $6,500 $5,500 ?70 1322 Operating Contracts Other $150,000 $1,285 $1,285 $1,285 $148,715 5405 1322 Building a Property Repairs $15,000 $15,000 $10,000 $10,000 5415 1322 Cranes Repairs $9,000 $9,000 $1,500 $1,500 5417 1322 Electrical Repairs $19,000 $19,000 $19,000 $19,000 5420 1322 Fence Repairs $6,500 $6,500 $6,500 $6,500 5439 1322 HVAC 1 Plumbing $8,000 $3,000 $8,000 $5,000 -- i452 1322 Machinery Repairs $45,000 $40,000 $58,500 $28,500 $5,000 5457 1322 Of?ce Equipment Repairs $500 $500 $500 $500 ?167 1322 Power Tool Repairs $400 $400 $400 $400 _5484 1322 Tools Hand Repairs $100 $100 $100 $100 5486 1322 Tools Miscellaneous Repairs $3,000 $3,000 $3,000 $3,000 5496 1322 Repairs 8. Maintenance - 2007 Sgpgiementai $50,000 $120,000 {$70,000} Total Opera?tg Expenses $4,960,850 $3,568,685 $3,297,548 $2,487,435 $1,392,165 inventory _6115 1322 Ciari?er Parts Fiucculators -- 6120 1322 Ciarifier Parts Screw Conveyor 6125 1322 1450 Ciarifier Parts Sludge Driver $5,500 $5,500 $5,500 $5,500 6220 1322 1420 Fire Extinguishers $1,000 $1,000 $1,000 $1,000 ?j 6260 1322 1420 Safety Equipment -- -- $3,000 6280 1322 1420 Vacuum Chiorinators - - - @20 1322 1430 Hardware Other $500 $500 $500 $500 69 6325 1322 1430 Hose Fittings $1.000 $1 .000 $1 .000 $1.000 6330 1322 1430 Keys Locks $500 $500 $500 $500 - 6335 1322 1430 Lights $3.000 $3.000 $3.000 $3.000 -- 3350 1322 1430 Plumbing $3.000 $3.000 $3.000 $3.000 6360 1322 1430 Tools $3.000 $3.000 $3.000 $3.000 6506 1322 1450 Batteries Small $500 $500 $500 $500 6507 1322 1450 Batteries - Tools $200 $200 $200 $200 - 6508 1322 1450 Batteries Vehicles $300 $300 $300 $300 6515 1322 1450 Cleaning $4.500 $4.500 $4.500 $4.500 6520 1322 1450 Copier Paper $1.500 $1.500 $1,500 $1 .500 6525 1322 1450 Filters Equipment $300 $300 $300 $300 6526 1322 1450 Filter HVAC $700 $700 $700 $700 - 6530 1322 1450 First Aid $800 6540 1322 1450 Lamps $4.000 $4.000 $4.000 $4.000 6544 1322 1450 Lubricating Oil $1.000 $1,000 $2.000 $2.000 4- 6548 1322 1450 Paint. Oil. Putty. Glass $2.000 $2.000 $2.000 $2.000 6552 1322 1450 Paper Products (towels) $1.750 $1.750 $1.750 $1.750 6552 1322 1450 Paper Products (toilet) -- 6555 1322 1450 Pump Oil $1.500 $1.500 6585 1322 1450 Welding Supplies $10,000 $10,000 $2.000 $2.000 6645 1322 Parts Other {Non-inventory} 6645 1322 1460 Parts Other $15,000 $15,000 $21,500 $21,500 6705 1322 1470 Pipe $4.000 $4.000 $4.000 $4.000 6820 1322 1480 Valves 8 Parts G.A. $5.500 $5.500 $5.500 $5.500 6825 1322 1480 Valves Miscellaneous $6.000 $6.000 $6,000 $6,000 Total Inventory $76,250 $76,250 $74,250 $38,050 General Administrative 7010 1322 Membership Fees 7015 1322 Permits $7.500 $7.500 $5.775 $5.400 7020 1322 RegistratiOn Fees (Ust'S I Ast'S} $4.200 $4.200 $4.200 $4.200 7105 1322 Freight - Hauling $1,000 $1 .000 $2.000 $2.000 7215 1322 Equipment Rental $1,900 $1.900 $1.900 $1.900 7383 1322 Professional Services Other u- 7424 1322 Fuel Propane $800 $800 $800 $800 L- 7440 1322 Grounds Maintenance Supplies $1 .500 $1,500 $2,000 $2,000 4 7450 1322 Of?ce Supplies $1 .500 $1 .500 $2,000 $2,000 7450 1322 Office Supplies -- - 7490 1322 Welding Supplies $2,900 $2.900 $2.900 $2.100 7490 1322 Welding Supplies (Glasses) 1305 1322 Electric Current $3,900,000 $4,550,000 $3,570.000 $3,400,000 7607 1322 Electrical High Voltage $6.000 $6,000 $10,000 $10,000 aw 7609 1322 Electrical - Instrumentation $5,000 $5,000 $7,700 $7,700 7650 1122 Natural Gas (City) $900,000 $745,000 $650,000 7660 1322 Sewage (ALCOSAN) __7675 1322 Telemeter $68,000 $68,000 $18,000 $78,000 7695 1322 Waste Disposal (Chemicals) $3,000 $3,000 $5,500 $5,500 _Iotal General Administration $4,903,300 $5,553,300 $4,437,775 $4,171,600 ($650,000) PLANT $9,956,300 $9,214,135 $7,825,473 $6,732,985 $742,165 The Division Manager has been in his current position for five years and had prior experience in the construction field. He holds a BS and MS in engineering with PE seal. The two Supervisors who directly report to the Plant Manager have worked for the organization for 33 and 23 years in various positions. In 2005 their job classification changed from Foreman to Supervisor and they were removed from the bargaining unit. The Maintenance Supervisor Chemicals Clarifier is responsible for scheduling all Operations and Stationary Engineers working on all chemical feeds, the clarifiers, filters, and pumps within the treatment plant. In addition, he oversees all pumping to the reservoir and the seven chlorine booster stations in the system. Three additional chlorine booster stations are currently being added at Squirrel Hill, Allentown, and Lincoln tanks. He also serves as generator of numerous Division reports of which most are created in excel format and are located on the Supervisor?s lap top. He is also responsible for inputting payroll information in the system for all non?daylight shift personnel. The Maintenance Supervisor for Field Operations inputs this data for the daylight shift. The Maintenance Supervisor for Field Operations generally is responsible for the Equipment Repairmen and Craftsmen within the plant, and all Laborers, Truck Drivers, and Instrument Technicians, both within the plant and field operations at the PWSA's 11 pump stations, four sewage lift stations, and 14 storage facilities. He is reaponsible for monitoring the larger transmission lines and major suction lines throughout the vast PWSA system. In addition, the membrane plant also falls under his responsibility. As can be seen, both Supervisors have access to the 39 employees located in the Treatment Maintenance Division The staff generally does not report to one or the other, but are utilized by both Supervisors. 7, Kit-i In 2008, an additional Maintenance Supervisor Field Operations was hired. The Division is still in the process of redefining work load and responsibilities among the Supervisors. As a result, we would propose the following new table of organization: all'l ?nance Supervisor Chemical 8. Clari?er Ops. Plant Manager 1 Maintenance Supervisor Field Ops. i Supervisor Field Maintenance Operations Instrument Tech. Equipment Repair Stationary Eng. (4) Plant Operator A Craftsman (6) (2) Spec (3) (5) Plant Operator (4) Truck Driver 1) Laborer {El} In reviewing the operating budget for 2008 and comparing to the past four years, there has been a steady increase in the operating expense of the treatment plant from $6,732,985 in 2005 to $9,956,300 in 2008, an increase of 48% over the period. The cost of chemicals has grown significantly increasing by $1,308,450 from 2007 to 2008 or 41%. Since 2005 chemical costs have increased by 92%. Most other operating costs have been controlled over the four-year period. The Division generally tries to handle projects in-house before contracting out, particularly relative to machinery fabrications. The Division does farm-out: major rebuilds on electrical motors; does outsource via bid all capital projects; and does outsource all landscaping at their facilities. 9W Relative to capital projects. the plant does house a full-time Inspector Project Manager from Chester Engineers who handles PWSA projects on a daily basis. Chester has had a full?time employee at the facility for the five years the current Manager has been in his position. Upper management of the treatment plant indicated a lack of involvement and input into the development and implementation of capital projects. All Supervisors and the Manager have access to the SAP system, although many of the reports generated are via excel spreadsheets developed by the Supervisors. Procurement is handled via the Procurement Specialist located in the plant storeroom. The Procurement Specialist reports to the Storeroom Manager and not to the Plant Manager. When the Procurement Specialist is unavailable due to vacation, etc. the Supervisor of Field Operations handles all requisitions. Findings Recommendations The responsibilities assigned to the three Supervisors in - The Manager, working with the three Supervisors, the Treatment Process Division are somewhat should clearly define responsibilities. assign filter undefined and are in need of more structure and and clari?ers to Supervisor of Chemical and Clarifiers definition. Operations, and all preventive maintenance to the Fields Operation Supervisor. The third Supervisor should be given all administrative functions, payroll, scheduling, reports, procurement, iabor management, etc., as well as be cross?trained for both positions so as to fill in during vacation and extended iHness. - Due to years of service of most plant personnel and the - The PWSA should consider additional ?floater? positions utilization of vacation time there is significant overtime that could be used to fill the scheduling needs and avoid built-in to the weekly schedules. the significant cost of overtime. 73 Plant Operators are not utilized for water quality testing as is the case in most large water utilities. The requirement that all testing be done through lab personnel builds in additional overtime on holidays and vacations for the lab personnel when the ?rst line testing could be handled by the certified Operators. Plant Operators are divided into two positions. One to operate the ?lter house and the other to operate the chemical feed system The PWSA needs to move toward the industry practice of certified Class A operators performing the initial water quality testing as a way of reducing manpower and costs. This practice also gives the Plant Operator a better response time to necessary treatment changes. The Plant Operators should be cross?trained to do both aspects and SCADA should be implemented to allow for operation of the chemical systems from the control room. Numerous labor classifications exist throughout the plant that affect the level of staffing and the timeliness of reSponse. The SCADA system and switchgear throughout the plant and the system are badly in need of major upgrades. It is not a question of will it fail, but a question of when it will fail! A Stationary Engineer is assigned to each shift to monitor and operate the pump station at the plant. The replacement and upgrade of the SCADA system and upgrade to the switchgear must become a top priority of the PWSA in its Capital Improvement Plan. Additionally, the plant personnel should be consulted throughout the process of designing and pursing a new SCADA system. Upgrading the SCADA in this area can eliminate the need for these shift positions and allow these personnel to be utilized for a preventive maintenance program and as Operator ?floaters. 74 .hL Numerous individuals identified a lack of communication and input into PWSA capital projects that impact the treatment plant. Many examples can be pointed out where input from the Division would have resulted in a better product and less problems with certain capital projects. A perfect example is the new membrane plant which plant personnel had little involvement in the design and planning, and which in effect chokes the system making it a closed system. The Engineering Division and the Consulting Engineer should involve line divisions and seek their input as major capital initiatives are being planned and designed. The Division operates more in a reactive mode as opposed to a proactive, particularly relative to a preventive maintenance schedule and practices. The plant is in serious need of a preventive maintenance schedule and a dedicated staffing level assigned to carry out and implement this schedule. indications are field personnel carry out a preventive maintenance schedule on the pump stations. The Division should organize a ?Preventative Maintenance" crew that focuses all of its attention on implementing standard preventative maintenance practices utilized in the water industry. All purchases must be approved by the Director. PWSA should establish a sliding scale of dollar limits for purchase approvals with the Director only getting involved in major procurements. An energy audit has not been conducted throughout the plant and a review of all energy use is in order. 75 Plant Manager should schedule an energy audit to be conducted by an outside firm that would identify potential cost saving areas to pursue. ., One employee is currently listed on long-term disability. The duties of this employee continue to be filled via overtime. When an employee is on long?term disability the position should be filled, if needed, by a new hire and not by the utilization of overtime for existing staff. Most Supervisors interviewed did not see themselves playing a large role in either deveIOping or controlling the budget for their respective area. Steps should be taken to more actively include the Supervisors in the development of the budget for the Division, and they should be held accountable for the control and monitoring of expenditures in their particular areas. The Director of Operations position has remained vacant for a number of years and thus the Executive Director is utilized for daily decision-making that would othenrvise fall to this position. Furthermore. there is a need for coordination and oversight of all the major operating divisions. PWSA should place the filling of this key position as one of its operational priorities. The storeroom located at the plant and the staffing of that function by a full?time position seems unnecessary. What is needed is adequate inventory and inventory controls handled through management of the Division. The bidding cycle for chemicals occurs after the budget year begins. With such volatility in this key area it would be helpful to know the pricing prior to the adoption of the budget Chemical specs and bids should be advertised and opened prior to the formulation of the budget to remove the uncertainty. 76 Perri The PWSA lacks a central database of information on all - tanks and the subsequent maintenance record for these facilities. PWSA's existing SCADA system has been obsolete and I has very limited operational functionality. a a Contact tank manufacturers and the Consulting Engineer to gather as much information i data on each tank and develop a construction and maintenance file for each tank. Develop a tank data spreadsheet identifying: base and overflow elevations; diameter; year constructed; capacities; etc. Perform annual external visual inspections identifying required maintenance items and prioritize maintenance items. discussions with currently in use. Once the plan is developed it would be beneficial to interview multiple integrators to review the project scope and make recommendations to strengthen the initial plan. Use a platform that is widely known to insure system support would be available by various suppliers integrators as well. WATER QUALITY DIVISION The Water Quality Division is located at the PWSA Water Treatment Plant (WTP) and is staffed by a Manager and nine full-time employees. All of the staff positions are housed in the water quality laboratory facility at the WTP. The staff is primarily comprised of Chemists and Microbiologists. Five staff hold a BS degree, and both the Manager and Assistant Manager hold Ph.D.'s. The other employees have an associate degree or lab certi?cates. The Manager and Assistant Manager are very hand on and have 31 and 28 years of service with the PWSA and the City in water quality. These individuals are extremely well-respected throughout the water industry and are often called upon by the leading industry associations, such as AWWA and PMAA, to provide their expertise. The balance of the staff are fairly new in terms of years of service to the PWSA with service ranging from a few months to approximately six years. This indicates that turnover occurs quite frequently and may in part be due to the level of compensation and the residency requirement. During the course of this review the laboratory was undergoing a major capital renovation and all new equipment was being installed. The PWSA, as a result, will have one of the largest state- of?the?art laboratories in the water industry. Water Quality Lab Manager The current table of organization is as follows: Assaslanl Water Quality Lab Manager A. 1-. I i Chemist ll inorganic Chemistry Chemist ll Chemist Chemist ll (analysis of pH. Inorganic Chemistry Analyses of Trace Project Chemist Alkallmity, Total (analyses of of mics (VOCS) (Analysis of Harness. Free and Groups I, it, and Ill ?naming Cyanide. Sulfate. Total Chlorine. Metals by Flame and Hamaceuc Total Dissolved Turbidity. and Graphite Acids) Solids. TOC and Conductivity. Nitrite Furnace AA) Fluoride) and Nitrate) Name Name Name Name Title Title Title Title rem The following table shows the 2008 personnel budget for the Division exclusive of fringe benefits; mediation ill?Filled ##B'Jifigeted Anetta-l Amount Water Quality tit?lQegulation Manager $79,660 Assistant Water Quality Manager $54,002 WC Chemist ll {Certified} $170,074 WC Chemist ll $35,180 WC Chemist ?c Microbiologist II WC Microbiologist $36,334 WC Lab Reporting Specialist WC Treatment Technician $31,491 $66,588? Total SIW Regular $473,329 Total SM Premium $25,013 Total SIW FICA $38,122 TOTAL WATER QUALITY 10 11 $530,451 it should be pointed out that compensation levels for the Chemist positions are very modest in terms of industry standards and are below the rate of Plant Operators who are not required to have a BS degree. The tru costs for the Division should include approximately additional?fringe benefit allocation. The following table shows the non?personnel costs for operating the Division: overall personnel Account Description 2008 Mai 2007 Budget 2006 Budget 2005 Budget 2000/2007" Change Employee Benefits 4175 1321 Uniforms $1,000 $1,000 $000 $500 Total Employee Bene?ts $1,000 $1,000 $300 $500 Operatin Expenses ?40 1321 Furniture 8. Furnishings $1,000 $1,000 $1,000 $1,000 5147 1321 Lab Equipment $14,000 $144,000 $12,000 $12,000 ($130,000) 5345 1321 Inspection Services $1,000 $1,800 $1,000 $1,800 5375 1321 Lab Radionuclides $1,000 $1,000 $1,000 $1,000 5385 1321 Temporary Employees .. 5496 1321 Repairs Maintenance Other {Plus $44,690 8} $10,690 $60,600 $11,000 $?,500 {$50,000} 5530 1321 Lab Testing ?70 1321 Lab Miscellaneous Testing $33,200 $18,200 $18,200 $18,200 075,000 Total Operatigg Expenses $61,690 $226,090 $45,000 $41,500 {$155,000} 79 6526352?2157? '7 $500 $315" $315 5500' $500 5315 $315 $500 Total Inventory .. General Administration 7005 1321 Certification Fees DEP) $3,000 $2,150 $2,150 $2,150 I 7005 1321 Certification Fees (WRC) $2,900 $2,700 $2,700 $2,700 $200 __7010 1321 Membership Fees $650 $650 $650 $650 7110 1321 Freight Shipping $3,500 $3,500 $3,500 $2,600 -- 7422 1321 Fuel Basses $8,500 $8,500 $8,500 $8,500 -- 7445 1321 Lab Chemicals $28,000 $28,000 $25,000 $23,000 7447 1321 Lab Supplies $37,500 $37,500 $33,000 $35,500 7450 1321 Office Supplies $1,000 $1,000 $5,000 7770 1321 .__ _Publications Subscriptions $500 $500 $500 $500 Total General Administration $85,550 $84,500 $81,000 $75,600 $1,050 LTOTAL WATER QUALITY $148,740 $312,100 $127,115 $117,915 ($163,450) inventory; .. - An additional $148,200 has been budgeted for operating and general administrative expenses for the Division. When personnel, fringe benefits, and operating costs are included the Division costs approximately $850,000 to operate. For the past 30 years the water quality function has operated as its own Division and reported to the Director of Operations when that position existed, and now directly reports to the PWSA Director. The laboratory staff conducts all analysis and testing in-house with the exception of 8005 organics) and radionuclides. In this respect it is one? of the few water utilities in who conduct most tests in-house with very little outsourcing. All water treatment testing and all water treatment changes are made by the Water Quality Division. Plant Operators do not undertake any testing or do not have authority to make any water treatment changes. This practice is not with standard operating procedure in most large treatment facilities throughout the industry. Plant Operators have been given more and more responsibility on an industry-wide basis. Additionally, throUQhout the water industry, more and more testing, particularly those that are required less frequently such as quarterly, semi-annually, or annually, are usually found to be more cost effective to be outsourced. The current practice of having all daily testing and routine treatment changes to be the responsibility of the Water Quality DiViSion requires the Division to cover weekends and holidays at premium rates. Purchasing for the Division follows PWSA established procedures and currently all purchases are subject to the approval of the Executive Director. 80 in The Water Quality Division occasronaily will provide services to other water authorities, but this is on random, as requested basis, and the PWSA does not market such services to other purveyors. However, these services are marketed and provided to consecutive systems when and if the PWSA is pursuing supply to these systems. The Division, as is common throughout the water industry, continually struggles with addressing high TTHM's in a manner that does not compromise storage levels and pressure levels. Serving a large urban area and having so many hospitals and health facilities it is paramount that adequate storage be present. The Water Quality Division collects samples daily from 10 locations throughout the distribution system and handles all customer water quality complaints on a daily basis, and as needed sends staff out to take samples at customer locations. The Division is also reSponsible for the data reported in the Consumer Confidence Report (OCR) and provides lead testing for customers free of charge. Throughout the service area there remains many lead?service lines. Flushing occurs randomly throughout the system, but a systematic annual flushing program is not conducted. Findings_ Recommendations - PWSA Water Quality Division organizationally does not - Revise the Table of Organization to place the Water fall under the overall Treatment Division as is the case Quality group as a subdivision of the Treatment Division in numerous water authorities. and not as a stand-alone division. - - The PWSA Water Quality Division possesses a great - The PWSA should continue to promote its excellence in deal of knowledge and experience as exemplified by the water quality and continue to place a pridrity on industry?wide reputation of its Manager and Assistant exceeding national water quality standards. Manager, who are constantly called upon by others throughout the industry for advice and counsel. The PWSA has an excellent record in achieving top water quality. 354% ?3 1 Unlike others in the water industry, the PWSA has chosen to conduct most of its lab testing and analysis in- house, even for testing that is required on a quarterly or annual basis, and has recently invested significant dollars into the renovation of its laboratory facility. The cost of its Water Quality Division, when all costs are considered. is estimated to be in the $850,000 range on an annual basis. The PWSA needs to examine in the long-term whether it is cost beneficial to operate a full-scale lab with a staff of 10, as oppOsed to a reduced staffing level and outsourcing many of the less frequent testing and analysis. If this were to occur the staffing level of the lab could be significantly reduced. The PWSA, if it is to remain in the laboratory business at current staffing levels, needs to pursue an aggressive marketing campaign to provide these services for a fee to other public entities throughout Southwestern The PWSA needs to identify ways of turning this cost center into a revenUe source. Most private water utilities have moved to outsource this function. Since the current Manager and Assistant Manager have 30+ years of service the PWSA needs to develop a vision for where it wants to be and where it can afford to be relative to its water quality lab. Plant Operators. unlike their counterparts in most large treatment plants, are not allowed to undertake routine daily testing and administer routine daily changes to water treatment. All testing and all changes to the treatment process are initiated through the Water Quality Division. This variance from what is considered S.O.P. in water treatment facilities throughout the State and the US, adds additional costs since two staf?ng levels are maintained and creates premium pay hours on weekends and holidays. The PWSA should initiate a training program to train the certified Operators in basic testing and begin to utilize Operators for testing on weekends and holidays. Eventually, certified Operators should conduct daily testing as part of their standard operating procedure. Once this occurs the PWSA should reconsider its organization of the Water Quality Division. 82 Residenoue?uirementisjmiting atLlity to attract?good- hga?gidates and also limits ab?it?y to market PWSA services to outlying areas. PWSA should riooLtQ?ellminate the requirement and promote itself as a re?onalyvater'and' _LT_?weL?y_E?ih?ThE_e?o_n?will ?EEST?i'TrT??iirn?' key personnel slots, as well as fit into an overall regional marketing strategy. residency? Leif} we mg- Too numerous labor classifications limit overall - productivity and accountability. - Overall, there is a lack of emphasis on long-term - The PWSA needs to move away from crisis Visioning and preventive maintenance throughout? the organization. management and toward its operation. preventative maintenance in Managers often are not adequately prepared or trained to assume new roles and responsibilities because of lack of a formal training or career development program. identify required competencies for all major positions and expected career tracks. Conduct a training needs analysis through the Human Resource Division and develop suitable programs (much of the specific training can be outsourced). 10 Rim The compensation levels of the Chemists and others? in the lab are somewhat below market standards, and in fact are below the Plant Operators. lf the PWSA is to remain in the laboratory business it should reconsider the salary structure of its Chemists to avoid frequent turnover in these highly educated positions. Additionally, the PWSA must reassess its position relative to a re-salary request for such skilled positions. Due to the long?term vacancy in the Director of Operations position the Executive Director is involved in approving daily purchase orders initiated by the Water Quality Division. The PWSA must have as its top priority filling the Director of Operations position. Even after this position is filled the PWSA should revise its purchasing procedures and establish various dollar levels for approvals by different levels of the organization. More individuals must be given authority and accountability. The management of the Water Quality Division, like other divisions throughout the PWSA, does not perceive to play a major role in the budget devel0pment process or in monitoring budget performance. Operating divisions must be more involved in the overall budget process both on the operating budget side and the development of the capital budget. The more involved divisions become, the more sense of authorship they feel. the more budgetary control they will exercise. The PWSA does not have an annual systematic flushing program and flushes only in response to incidences and water quality complaints. PWSA should institute an annual flushing program. 83