CITY OF SAN DIEGO WATER DEPARTMENT LINKS BID-TO-GOAL, ISO 14001 EMS, AND A PERFORMANCE DRIVEN BUSINESS PLAN TO FUTURE SUCCESS

The City of San Diego Water Department is the first utility in the United States to concurrently integrate the Bid-to-Goal management tool with an ISO 14001 Environmental Management System (EMS) and a performance-measure driven business plan.On June 14, 2004, the San Diego City Council approved a Memorandum of Understanding (MOU) for the 538 employees of the Water Operations Division (Water Operations), to enter into a 5-year, $1.066 billion agreement which result in documented performance at competitive costs for customers of the City of San Diego Water System.There are unique and distinct advantages to be achieved by linking the competitive results-oriented Bid-to-Goal program with the continual improvement ISO 14001 Environmental Management System and the performance driven Business Plan. Some examples include: improving efficiency; reducing cost of operations; documenting the cycle of checking and corrective actions; improving quality of service; measuring performance; rewarding ratepayers through a multiyear savings plan; retaining and maximizing the long-term value of major City assets; and proactively obligating the employees to these savings and efficiencies. Water Operations' commitment to the environment is tied to their productivity initiatives by making ISO 14001-2004 certification a prerequisite for any financial incentives to be paid to employees.On May 5, 2005, the Water Operations Division of the City of San Diego Water Department was granted their registration for ISO 14001:2004, for the “Operations and Maintenance of Potable Water Facilities and Distribution Systems and Related Administration and Support Services.” Water Operations is one of the first public water utilities in the nation to receive this certification under the 2004 standard, as well as the first to combine the effort with a Bid-to-Goal (BTG) competitiveness program.This paper focuses on three major themes: 1) The Facts: provide financial and performance information both before the program's initiation and from the first year of performing the program; 2) The Strategies: present key strategies and activities for increasing the effectiveness, productivity and participation of all employees in the integrated ISO/BTG effort; and 3) The Good and The Bad: discuss lessons learned during the course of the project.