Up & Coming Weekly

August 20, 2013

Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.

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The City of Fayetteville, North Carolina does The City of Fayetteville, North Carolina does not discriminate on the basis of race, sex, not discriminate on the basis of race, sex, color, age, national origin, religion, or disability color, age, national origin, religion, or disability in its employment opportunities, programs, in its employment opportunities, programs, services, or activities. services, or activities. www.cityoffayetteville.org www.facebook.com/cityoffayettevillegovernment www.faytv7.com Twitter @CityOfFayNC PWC Alignment Study continued CONSULTANTS' OBSERVATIONS DavenportLawrence deployed eight consultants over five months at the City and Fayetteville PWC to collect data, validate work processes and explore corporate cultures. From these observations, DavenportLawrence developed the following statements regarding organizational conditions: • Fayetteville PWC operates effectively and efficiently in the delivery of electric, water and sewer services with competitive rates to other regional utilities • The City provides services to citizens in a fiscally responsible manner • Fayetteville PWC autonomy (operational independence) has expanded beyond what we believe to be was originally granted (or intended) by Charter and what is typical for a municipal utility • While possessing the assets of minimal transmission service and a generation plant within its electric utility, the Commission does not operate in a manner that is substantially different than its municipal utility counterparts • The autonomy of Fayetteville PWC has created an internal control culture and "private company" philosophy that reduces public transparency and support to the City as a Commission of the City • Current governance structure yields cooperation between the City and the Commission only to the level required to operate between the City and the Commission • The lack of cooperation between the City and the Commission erodes public trust and sustains an "us and them" culture • Fayetteville PWC utilizes its current autonomy to invest in external messaging and community relations beyond what is necessary for the purposes of utility operations and customer service by a public utility • Fayetteville PWC's utilization of complex cost accounting methods is used as a basis for atypical fees and chargebacks to the City, thereby unnecessarily impacting taxpayers • The City of Fayetteville maintains a strong cash reserves condition and is considered financially strong with its Aa1/AA+ rating • Fayetteville PWC routinely brands facilities and vehicles simply as "PWC," thereby further separating itself perceptually from the City • The City of Fayetteville has a historical lack of political cohesion that negatively influences its position as the "Parent Municipal Corporation" to the Commission • The City has participated in cost-sharing and "agreements" with the Fayetteville PWC that have directly impacted taxpayers through inequitable terms and conditions • The City of Fayetteville income from valuation is less than that of its peer municipalities and significantly impacts its abilities to meet operational needs. • The City generally funds operations at a "basic" level, thereby forgoing some efficiency gains, technology leverages, or enhanced customer service • Functional alignment between the City of Fayetteville and the Commission will succeed ONLY after the barriers of cooperation (history and culture) are eliminated and both organizations recognize acting in the best interests of the public transcends independent organizational interests. NEXT STEPS Before implementing any of these changes, a resolution must first be considered to be voted on for approval by City Council. UP & COMING WEEKLY'S Local Classifieds Stedman • Eastover • Spring Lake • Hope Mills • Fort Bragg 4 lines / 7 days = $11.95 All ads online! WWW.UPANDCOMINGWEEKLY.COM Ask us about Free Ads and Yard Sale Kits! • Contact Christina Edge • classifieds@upandcomingweekly.com 484-1009 www.upandcomingweekly.com AUGUST 21-27, 2013 UCW 7

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