Department Performance
2006 - 2012 AVERAGE MONTHLY PAYMENTS RECEIVED
2006 - 2012 AVERAGE MONTHLY PAYMENTS RECEIVED
2006 2007 2008 2009 2010 2011 2012
Financial Services. A variety of financial services are provided by the Financial Services Division including preparing and monitoring the District’s annual operating and capital budget; designing, analyzing, and recommending water rates; providing short and long-term financial plans;
overseeing risk management; and processing water plans and requests for new services. The division is comprised of three sections: Financial Services, Risk Management, and Development Services.
The Financial Services Section is responsible for preparing an annual line item operating and capital budget for the District and SNWA. The Financial Services Section also performs a variety of financial and rate modeling and feasibility analyses for District departments, projects and programs. On an annual basis, the section conducts a survey of water rates from over 60 cities located in the western United States, closely monitors District water production and consumption data, and prepares the District’s Annual Statistical Report.
The Risk Management Section is responsible for handling all the District’s activities related to the transfer, elimination, avoidance, reduction, and/or assumption of risk of loss to District personnel and property. This includes the management of self-insurance programs, the purchase of insurance from the commercial insurance market to cover direct physical loss to District property and equipment, and general and automobile liability insurance. The Risk Management Section identifies and performs analysis on areas and sources of potential risk to District personnel and property and develops recommendations to minimize those risks. The section also manages the financial aspects of the Self-Insured Worker’s Compensation Program, liability claims and claims
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resulting in damage to District property.
The Development Services Section reviews private and public sector development plans for residential, non-residential and public works projects. The office ensures appropriate charges for water facilities installations (meters, inspection fees, connection charges) are assessed, provides refunds to developers whose projects have contributed to system expansion by other developers, supports the water commitment process by providing refunds for cancelled development projects, approves reimbursements and refunds to developers who construct capital improvements that improve the system, or who oversize mains that improve the District’s system. The section leases hydrant meters to contractors for construction and area dust control. All of the plan application processing is electronically created, maintained, and stored to provide accurate financial and contractual documents for all of the development it reviews. The electronic storage is part of a larger District mission to digitally review plan applications, as well as to store and maintain digital plan data for a minimum period of twelve years.
Development Services writes, edits, researches, distributes, maintains, and provides agenda, public notice and business impact statement support for the District and its five rural system Service Rules processes. The Section ensures consistent application of the Service Rules to all customers. This is accomplished through customer contacts, construction agreements, accurate assessment and collection of fees and charges, issuing fire hydrant and mobile water meter permits, ensuring that installed services are incorporated into the billing system, and billing for illegal hydrant meter water use. Performance indicators include: project review time that averages 13 – 16 person hours per water plan package that has declined 2 hours since 2010. The Section initiated the delinquent customer lien program that has collected $378,000 in real property liens since 2009.
This Section is solely responsible for the timely, consistent, accurate creation and entry of all land and water use codes which are used for system planning, billing, monitoring customer accounts, and rate studies.
Based on a records request from Legal Counsel, the Section found and sent financial and contractual files in less than thirty minutes as opposed to the two hours it required in the past. This efficiency represents a savings of about $87.00 per developer file request. During this year, Development Services destroyed 379 cubic feet of records (700,000 sheets, 2,805 files); eliminating approximately $1,200 annually in offsite storage costs. During this year, 420 files were scanned for
use in the District repository.
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0
2007 - 2012 DEVELOPMENT SERVICES KEY ACTIVITIES AND NEW SERVICE ACCOUNTS
Water Plan Reviews Water Plan Revisions
New Fire Hydrant Permits Renewed Fire Hydrant Permits Water Service Applications
Figure 17 shows Key Activities for calendar years 2007 – 2012. Water Service Paid Applications over the 2009 – 2012 period, increased 550%, to 1,551 in 2012, from 280 in 2009.
Between 2010 and 2011, paid applications increased 16% to 1,328 from 1,138 applications.
Between 2011 and 2012, applications and plan approvals increased 14% to 1,551 in 2012 from 1,328 applications in 2011. The average growth in applications for these two years is 15%. It appears that the pace of growth in plan applications is stabilizing.
In response to the reduced applications workload, Section staffing was reduced 55% through vacancies and Resource Sharing. Resource Sharing allows staff to support other agencies and departments, where assigned duties are performed for a new mission and sometimes under a new manager. Since implementing Sharing in 2008, resources have been assigned to AM/FM/GIS, Accounting, Billing reconciliation and meter read verification, Meter Services, Customer Care and Field Services’ Large Meter Replacement Program, the Meter read verification project, and LVVWD and SNWA corporate records automation. Resource Sharing sustained necessary work programs through efficient use of transferred staff valued at approximately $1.7million, offsetting staff losses due to retirements and the termination of temporary staff.
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Despite the staff reductions, the Development Services Section met or exceeded package productivity goals during the 2009 – 2012 period under varying levels of development activity in unincorporated Clark County and the City of Las Vegas service areas.
Figure 18 shows the continued reduction in average plan review time. The improvement results from long-term cross-training of staff, strengthened internal communication and a focus on the customer as the priority from water plan application to project acceptance.
Purchasing Services. The Purchasing Division is responsible for all purchasing related activities for the Las Vegas Valley Water District, the Springs Preserve and the Southern Nevada Water Authority. These activities include: market analysis; developing new, expanded or alternative sources of supply; systems contracting; formal and informal bids; personal property sales, sustainable purchasing program; and the diversity program. Negotiations of renewed contracts and other cost saving measures have been the Division’s priority during the past two fiscal years.
Purchase orders are issued to award contracts and reflect the work processed by the division.
Material and Mail Services. Material Service’s primary role is storage, retrieval, materials management and customer service. Their primary focus is to provide internal customers with reliable, quality material, equipment and supplies for the treatment, maintenance and repair of LVVWD’s public water utility and to support organizational and or interdepartmental goals, programs and projects. Material Services demonstrates this by working closely with internal customers and through supplier partnerships to coordinate and fulfill customer’s needs. Materials are received, inspected and processed at both LVVWD and SNWS Main warehouses for final delivery to the internal customer at LVVWD, SNWS and seven satellite facilities. For FY 2012, the inventory asset was valued at $14 million which consists of over 22,000 inventory items with an average monthly usage of $1.5 million. Material Services supports sustainability through administration, coordination and management of investment recovery efforts through the auction
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program, bid sales and the public sales auction for various recyclable materials. Additional services include supply chain and materials management; material coordination for treatment plant outages, major construction and or engineering services projects; emergency job site deliveries; safety garments and shoe administration; first-aid kit inspections; MSDS system administration; courier services for business needs including lab samples; loanable tool support; FedEx and UPS shipping services.
Figure 19 represents Material Services’ core activities for material issues, inventory and non-inventory receipts and projections for fiscal years 2012 and 2013. Material Services is committed to provide consistent, reliable service and performance excellence through effective supply chain management, continuous process improvement, inventory optimization, reduced operating cost, increased efficiencies and productivity.
$5.0 $10.0 $15.0 $20.0 $25.0 $30.0
2008-09 2009-10 2010-11 2011-12 2012-13
Projected
2013-14 Projected
Figure 19
Las Vegas Valley Water District Material Services (LVVWD & SNWS)
Core Material Movement Activity
Issued Received (Invty) Received (Non-Invty) Millions
Mail Services section under Material Services division is the central depository for processing incoming and outgoing United States Postal Service (USPS) mail and is located at the LVVWD Valley View campus and at a mini-mail depot at Molasky Corporate Center. Mail Services delivers to SNWA, SNWS and LVSP campuses and to all outlying remote facilities throughout the District’s service territory. All Mail Services personnel are required annually to attend terrorism training conducted by the U.S. Postal Inspector. Core responsibilities include the administration, management, receipt, sorting, processing and timely delivery of all interoffice and incoming USPS correspondence. One of Mail Services high profile activities is the delivery and posting of public notices. Mail Services manages the District’s postage requirements and coordinates with Customer
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Service and Public Information to support their mailing needs. Mail Services consistently evaluates their work distribution and processes to maximize resources and gain productivity and efficiency.
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Projected
2013-14 Projected Miles Driven
Mail Pieces Processed
Cust Service Letters
Figure 20
Las Vegas Valley Water District Mail Services Core Activities
Figure 20 represents Mail Services core activities and projections for fiscal years 2012 and 2013.
Mail Services is committed to provide consistent, reliable service and performance excellence through continuous process improvement, reduced operating cost, and increased efficiencies and productivity.
SNWA Controller. The SNWA Controller Division supports the strategic objectives of the Finance Department by providing accounting services, financial reporting, budgeting, financial analysis, cash management, and coordination with the financial staffs of SNWA purveyors and other agencies. The SNWA Controller’s Office is charged with the following responsibilities: day-to-day SNWA accounting; the accounting and reporting associated with investment of SNWA funds; reconciliation of receivables and payables between LVVWD and SNWA; the preparation and tracking of purveyor billings; the collection, tracking, and forecasting of regional connection
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charges, infrastructure charges, commodity charges, reliability surcharges, sales tax revenues, and other miscellaneous revenue source; preparing and filing forms and narratives in connection with SNWA’s grant receipts; financial tracking, posting and analyses concerning SNWA’s land and water rights holdings in northern Nevada; working with independent auditors during the annual audit; preparation of the SNWA’s Comprehensive Annual Financial Report and monthly financial reports; fixed assets tracking; construction contract tracking; cash management; preparation of the authority wide annual budget, and the maintenance of fund models which forecast cash requirements and aid forecasting. The SNWA Controller’s Office also conducts numerous financial analyses such as: arbitrage calculations, cash requirements forecasts, and operating funds analyses.
Strategic Plan Objectives and Accomplishments
By the very nature of its activities, the Finance Department either directly or indirectly impacts all of the District’s Strategic Plan Goals through the prudent and strategic funding of all of the various activities and services provided by the District. The single LVVWD Strategic Plan goal most directly impacted by the Finance Department is shown below.
LVVWD Strategic Plan Goal – Continuously ensure organizational efficiency and effectiveness to achieve rate stability and customer value.
2013/2014 Department Goals
• Continue to monitor the short- and long-term financial health of LVVWD and SNWA, and implement the appropriate actions necessary to ensure the financial viability of both organizations.
• Continue the Finance Department’s long-standing record of excellence in budgeting and financial reporting.
• Continue to improve external customer service in the areas of customer payments, and developer plan review and approval processes.
• Continue to improve and streamline day-to-day accounting practices, specialized processes, and improved financial analyses, reporting, and information sharing for District departments’ customers.
• Continue to monitor, review and implement all applicable changes in laws, regulations, and accounting practices and procedures in a timely and efficient manner.
• Continue to review and assess LVVWD’s and the SNWA’s exposure to risk of loss and implement new policies and procedures to minimize risk.
• Continue to provide prompt and courteous service.
• Increase job sharing among the various work groups in Finance.
• In compliance with the “Safe Drinking Water Act” implement the organizational initiative to remove leaded material items held in inventory and replace with “no/low lead” material items.
• Continue to be the internal customer’s primary material services provider of choice.
• Continue aligning supply chain management methodologies to organizational and customer requirements.
• Continue an uninterrupted supply of meters, AMR units and associated materials for the Meter Change-out Program.
• Create a Logistics Emergency Response Plan Sub-team.
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• Reduce inactive inventory by $2.1M over a five year period.
• Reduce operating expenses for material services division by 20%.
• Maintain zero lost time safety record.
• Implement Phase 1 of the wireless warehouse technology project.
• Integrate sustainability efforts in our daily operation.
• Administer the auction investment recovery program and support to the on-line public auction.
• Report the inventory profile for the greenhouse gases report.
• Link business processes and operation to the Material and Mail Services’ five year plan.
2013/2014 Performance Objectives
• Submit the District’s CAFR for the years ended June 30, 2013 and June 30, 2014 to the GFOA and receive the Certificate of Excellence in Financial Reporting.
• Receive unqualified opinion from external auditors for FY 2013 audit.
• Enroll vendors and develop payment opportunities for credit card program in order to receive a credit card rebate in excess of $50,000.
• Improve the depth of employee skills and resources through cross training within the Accounting and Remittance Processing division and Finance department.
• Research and initiate policy changes and alternative payment methods that result in a reduction in the number of paper customer refund payments issued.
• Maximize the productivity of the existing Accounting System by implementing new functionality before and after a planned system upgrade.
• Continue to utilize job sharing within the Finance Department to reassign employees to efficiently address the current workloads.
• Continue to review and improve process and procedure documentation within Accounting Department.
• Prepare and make improvements to the 2013/2014 LVVWD and SNWA Operating and Capital Budgets by incorporating Government Finance Officers Association (GFOA) review comments.
• Maintain accurate, timely, consistent documentation of land and water use codes.
• Provide financial reporting for the Ground Water Management Program, and the Las Vegas Wash Program.
• Provide timely and accurate support for District and small water system rate proceedings.
• Maintain plan approval range of 1.6 – 1.9 days (13 -15 hours) turnaround for water plan package review.
• Improve the financial advantage of the District’s self-insured workers compensation program with the cost of purchasing workers compensation insurance in the commercial insurance market.
• Provide timely and accurate support for District and small water system rate proceedings.
• Support the SNWA Integrated Resource Planning effort with timely and accurate analyses.
• Document the efficiency and effectiveness of operational changes.
• Partner with Material Services to create supply chain integrity for critical material and equipment in the event of an emergency or supply shortage.
• Formally negotiate those contracts that are exempt from competitive bidding.
• Continue to utilize on-line auctions to dispose of surplus materials.
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• Audit invoices of contracts before renewing to ensure charges are in accordance with contract terms.
• Evaluate the option of purchasing used versus new equipment when appropriate.
• Encourage the purchase of sustainable products by facilitating meetings with suppliers and interested departments.
• Continue to evaluate repair versus buy decisions.
• Co-Host Regional Business Development Advisory Fair.
• Co-Host Contractor Diversity Workshop.
• Co-Host quarterly Educational Seminars.
• Facilitate the Supplier Diversity Ambassador program.
• Coordinate efforts and process changes for the “no lead” initiative inventory items with key internal stakeholders and the supplier community for complete implementation by June 30, 2013.
• Continue reinforcing relationships, partnerships and process improvements with peers, customers and the supplier community to support the 10 year Meter Change-Out Program.
• Align support with our internal customer’s projects, goals and system emergencies.
• Continue partnering with our internal customers to identify inventory reduction and standardization opportunities.
• Continue partnering with Purchasing to create a Logistics Emergency Response Plan Sub-team.
• Continue reducing operating cost through sourcing efforts, process efficiencies and cost containment measures without compromising safety and or service level.
• Continued administration of the Material Safety Data Sheet (MSDS) in the M3V database.
• Partner with IT to identify wireless warehouse specifications and program functionality.
• Administer, track and identify opportunities to increase investment recovery proceeds through recycling District property, material, equipment and supplies through the auction program and the on-line public surplus program.
• Consistently review the inventory asset to validate 100% of our inventory item’s weight, measure and composition profile is recorded for the computation of the District’s greenhouse gases carbon footprint report.
• Continue providing material coordinating, forecasting and supply chain management services to support our internal customer’s planned and emergency needs; Attend customer staff meetings;
Conduct customer satisfaction calls or face-to-face interaction; Based on timing and environment, launch a customer feedback survey to gauge customer satisfaction and implement improvements.
• Continue reinforcing supplier partnerships and measure their on-time delivery and product quality performance.
2012/2013 Major Accomplishments
• The Las Vegas Valley Water District’s Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2011 received the Certificate of Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) of the United State and Canada for the thirty-third (33rd) consecutive year. This is a prestigious national award recognizing conformance with the highest standards for the preparation of state and local government financial reports. To receive this award, a governmental unit must publish an easily readable and efficiently organized financial report that conforms to program standards. Such reports
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must satisfy both accounting principles generally accepted in the United States as well as other applicable requirements. The CAFR for the year ended June 30, 2012 was also submitted to the GFOA and we believe that this report continues to conform to program requirements.
• Received unqualified opinion from external auditors for FY 2012 audit.
• Initiated a credit card payment program in accounts payable which provides revenue to the District through an annual rebate based on payments to vendors.
• Underwent an Accounts Payable audit.
• Accounts Payable and Payroll cross trained Remittance Processing staff to increase available back up resources and improve employee skills.
• Remittance Processing implemented enhanced payment functionality for satellite locations enhancing customer service and adding approximately 50 additional payment locations.
• Reviewed and improved accounting process and procedure documentation.
• Implemented a Secure Fax Line at the Springs Preserve to strengthen PCI compliance with revenue operations.
• Implemented a Document Management process for Autopay applications and their quarterly disposition.
• Completed cross training within Remittance Processing on all job duties to broaden resource availability and skills.
• Staff levels average 4.1 – 4.5 FTE, (10 assigned) reflecting a 55% staff reduction, while maintaining, or exceeding production standards.
• Water Plan review times remained the same as last year, despite a 15% increase in applications over the last two years.
• Records Management: Destroyed 379 cubic feet of records (2,805 files). Also, during the year, 420 files were scanned for storage in the District electronic repository,
• Provided Service Rule support for 2012 Infrastructure Charge Service Rules amendments.
• Received the Distinguished Budget Presentation Award from the GFOA for the LVVWD and
• Received the Distinguished Budget Presentation Award from the GFOA for the LVVWD and