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TURLOCK IRRIGATION DISTRICT

2015 -2020 STRATEGIC PLAN

UPDATED 2017


IntroductionChange is an inevitable function of time. Just look at the region served with water and power by Turlock Irrigation District, and how it has progressed since TID’s formation in 1887. A region that was seasonally dry now bears a variety of crops essentially year-round. People who once used lanterns to light their homes began to reap the benefits of affordable and reliable electricity. A few businesses transformed into an economic engine that produced jobs and spurred growth. People came to the region and never left. Families grew. Opportunities multiplied. The good times were good, and the bad times showed people how resilient and resourceful they had grown to be. While many played a role in these changes, TID’s formation helped pave the way for all of the above. TID’s role in that positive change gives our organization a sense of pride, but not a spirit of complacency because change remains inevitable. Change at TID occurred in the past. It is occurring now and it will continue into the future. Whatever the changes, small or large, decisions must be strategic, they must be planned and they must fit as part of a broader picture. Above all, any change at TID must be acceptable to the hundreds of thousands of people we serve. This Strategic Plan attempts to outline five years of progressive actions TID will take to position us for the future. We may not be able to see what is around every corner, but we shall survey the changing landscape and plot our best course. In forging ahead with this plan, TID will proactively adopt changes to benefit TID customers, as well as implement necessary changes to adapt to the changing world. Since 2015, TID has experienced changes and this updated 2017 plan reflects the ever-changing nature of our industry.

MISSION TID will provide reliable and competitively priced water and electric service, while being good stewards of our resources and providing a high level of customer satisfaction.

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VisionWith its mission as a foundational element of all its actions, T ID sees a future where it is poised to…

»» Leverage existing and future technologies to benefit its customers

»» Make bold, informed, proactive decisions in the spirit of innovation

»» Maintain competitive water and electric rates

»» Bolster employee morale by developing a culture of praise and value

»» Maintain a reliable water supply »» Maintain reliable electric service »» Undertake additional efforts to prove itself as trustworthy and transparent »» Partner with others in an effort to foster better and more frequent regional collaboration

»» Rise to meet and exceed evolving customer expectations and needs by promoting a customer-centric culture »» Approach efforts, initiatives, problems, solutions and decisions in a strategic and forward-thinking manner »» Further develop its highly-skilled, specialized workforce

»» Increase efficiencies of its resources, infrastructure and employees »» Foster a culture of accountability

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CORE DISTRICT

Values STEWARDSHIP T ID provides leadership in managing its resources and the associated environment.

RELIABILITY T ID plans, builds and maintains its water and electric systems to reliably serve its customers.

AFFORDABILITY T ID provides stable, competitive rates for its customers.

SAFETY T ID ensures a safe environment for employees and customers.

QUALITY EMPLOYEES T ID attracts and retains highly-skilled and experienced employees.

VISIONARY T ID proactively balances near-term decision making with the long-term well-being of its customers.

LOCAL CONTROL Decisions made by local people to address local needs are essential to T ID’s continued success.

COMMUNITY VITALITY T ID promotes the economic growth and well-being of the communities within the region it serves. 3


Strengths STRENGTHS •

TID is a trusted and longstanding member of the community since its inception in 1887.

TID has some of the most senior water rights in California, which has enabled it to provide reliable water and power.

TID has a highly-skilled, experienced, and loyal workforce.

Weaknesses WEAKNESSES •

TID’s location in the Central Valley compounds the ongoing challenge to attract and retain a technical workforce for a highly-specific industry, making succession planning difficult.

TID has built and developed a diverse portfolio of electric assets and, as a result, it is able to provide customers with reliable power at competitive rates.

TID needs to become more dynamic as technology accelerates and as customer needs change.

TID’s aging water and electric systems will require significant investments to maintain continuity of services, and these necessary improvements will increase debt and affect rates.

California’s political landscape and the location of major population centers make it difficult for San Joaquin Valley interests to find influential and vocal advocacy partners.

Opportunities OPPORTUNITIES •

TID can enhance its billing systems and leverage advanced metering technologies to improve service to customers.

TID can develop new customer programs and utilize new technologies to enhance the customer experience.

TID to continue the strategic planning process as a matter of good policy.

TID can optimize its energy resources portfolio to better leverage its means of providing reliable power at competitive rates.

Movements toward distributed generation, energy storage and other mandates or trends will require TID to change its longstanding business model.

TID’s infrastructure must be upgraded continually to meet current and future physical and cyber security requirements.

TID’s water and power supply and operations are especially susceptible to major changes in state and federal laws and regulations that may drive business model changes.

Threats THREATS •

TID’s water supply is mostly dependent upon weather, which is volatile and impacts the ability to provide water and to generate power. 4


OPERATING

Strategies

F ive operating strategies have been identified as points of emphasis in T ID’s strategic planning process. The goals for each strategy are detailed on the following pages. The operating strategies are:

WATER AND ELECTRIC SUPPLY AND DISTRIBUTION

LEGISLATIVE AND REGULATORY

FINANCE AND RATES

CUSTOMER SERVICE AND COMMUNITY RELATIONS

WORKFORCE

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STRATEGY : Water and Electric Supply and Distribution

The water and electric infrastructure that TID has developed over decades is a key reason why TID has been able to provide reliable services at competitive rates. The Operating Strategy for Water and Electric Supply and Distribution is:

Maintain and enhance T ID’s water and electric resources and customer distribution systems in a sustainable manner. Seven Business Goals have been identified to best implement this strategy:

1. Continue to preserve and protect TID’s water rights. 2. Continue evaluating opportunities for additional storage of water resources. 3. Develop and update plans to address technology and climate related changes to the electric utility power supply and rates. 4. Develop an Irrigation Facilities Master Plan by December 31, 2017 to ensure a reliable and cost effective water supply to TID Irrigation Customers while considering future challenges and uncertainties. 5. Maintain the electric distribution System Average Interruption Duration Index (SAIDI) of 93 minutes over a five-year rolling average. 6. Manage water delivery efficiency in such a manner that promotes conservation in dry years with less than 5 percent spill. 7. Develop an Enterprise Risk Management Plan by December 31, 2017.

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STRATEGY :

F inance and Rates

Financial stability is an important strategic element because it allows the possibility for the goals to be pursued and achieved in other elements of strategic planning. The Operating Strategy for Finance and Rates is:

Provide value to customers through financial stability and competitive rates. Four Business Goals have been identified to best implement this strategy:

1. Maintain bond ratings.

b. Water Rates

a. TID – A+

i. Modesto Irrigation District

b. JPA – AA-

ii. Merced Irrigation District

2. Rates will be competitive with comparable

iii. Central California Irrigation District

peer groups.

iv. South San Joaquin Irrigation District

a. Electric Rates

v. Oakdale Irrigation District

i. Sacramento Municipal Utility District

3. Net income at a level to fund depreciation

ii. Pacific Gas & Electric Company

by December 31, 2021.

iii. Modesto Irrigation District

4. Develop a rates policy by June 30, 2017.

iv. Merced Irrigation District

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STRATEGY :

Workforce

TID’s workforce is an essential component to successful operations that benefit customers. The Operating Strategy related to the Workforce is:

Maintain a customer- focused, innovative, loyal, productive and skilled workforce. Five Business Goals have been identified to best implement this strategy:

1. Development of a Manager training program by February 28, 2017 and require participation by Managers by December 31, 2017. 2. Develop a TID Leadership Program by December 31, 2016. First class to participate in 2017. 3. Conduct an annual, four-hour governance training for the TID Board of Directors, including a Board self-evaluation and a staff evaluation of the Board. 4. Conduct a TID Board of Directors retreat/workshop biannually to discuss strategy. 5. Provide industry education to the TID Board of Directors.

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STRATEGY : Customer Service and Community Relations

There are many opportunities for TID to improve and modify the services it provides to customers and the means in which service is provided. These improvements will likely lead to a higher level of customer service. The Operating Strategy for Customer Service and Community Relations is:

Provide quality customer care and service in a responsive and professional manner. Continue to be involved in the local community and build on local partnerships. Four main Business Goals have been identified to best implement this strategy:

1. Select a new electric Customer Information System (CIS) by December 31, 2016 with a target implementation by December 31, 2018. 2. Implement an annual customer research program beginning January 1, 2017. 3. Establish the District’s community event participation benchmark in 2016 and maintain this level while diversifying staff participation. 4. Annually develop a community relations report beginning in 2016.

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STRATEGY :

Legislative and Regulatory

Because state and federal regulations affect TID’s water and power operations, there is a need to be heavily involved with the lawmakers, regulators and the community to educate them on related issues and advocate on behalf of TID and its customers. The Legislative and Regulatory Operating Strategy is:

Continue to promote and protect the District through enhanced advocacy at the local, state and federal levels. One main Business Goal has been identified to best implement this strategy: 1. Establish a benchmark of staff and Board participation in industry associations and events by December 31, 2016

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Board of Directors Division 1 Division 2 Division 3 Division 4 Division 5

Michael Frantz CharlesFernandes Joe Alamo Rob Santos Ron Macedo

General Manager Casey Hashimoto

Number of Employees 451

Electric Service Area 662 square-miles

Irrigation Service Area 307 square-miles

333 E. Canal Drive • Turlock, CA 95380 209-883-8300 • www.tid.org 10/16

TID strategic plan web  

Turlock Irrigation District's mission is to provide reliable and competitively priced water and electric service, while being good stewards...

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