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Five Year Business Plan (2016-2020) 1 Hagonoy Water District

HAGONOY WATER DISTRICT FIVE YEAR

BUSINESS PLAN (2016-2020)


INTRODUCTION

Hagonoy Water District’s business plan is created to guide and effectively plan the ongoing and

future program. It is a tool used to come out with possible solutions and means to achieve the

district’s fundamental goals. This goal is consistent with District’s mission “to provide sufficient,

safe and accessible water to least possible cost while ensuring sustainability, reliability and

preservation of the environment”. This is intended to provide a step-by-step procedure to

generate information that is vital for making rational and coordinated decisions. This paper is a

working documents that comprises the five year projects and programs expressed in strategic

goals of Hagonoy Water District.


1. GENERAL DESCRIPTION OF THE UTILITY

1.1. Brief History of the Water Utility Hagonoy Water District (HWD) was created pursuant to Presidential Decree 198, as amended by

Presidential Decrees 768 and 1479, otherwise known as the Provincial Water Utilities Act of

1973 which was signed by President Ferdinand E. Marcos. Through Kapasiyahang Pambayan

Bilang 121-A, signed and submitted on August 26, 1976 manifesting a great need for sufficient,

safe and potable water for domestic and industrial use in Hagonoy. It affirmed that the present

funding and personnel during that time were insufficient and therefore there was a great need for

expansion and improvement.

Pursuant to the provisions of the Title II, PD No. 198 and in order to provide the much-needed

safe, sufficient and potable water supply, the body in the meeting assembled adopted and

approved Kapasiyahang Pambayan Bilang 121-A that states:

The organization of the HWD covering the following areas: all barangays accessible by

vehicular transportation;

The transfer of all existing water facilities, namely, all existing properties and/or facilities to

the jurisdiction and ownership of the Hagonoy Water District;

The creation of a Board of Directors, with five members appointed by the Municipal Mayor

as provided in PD 198;

That the HWD herein organized and formed can only be dissolved through the act of its own

Board of Directors pursuant to Sec. 45, Title II, PD No. 198;

That the HWD shall have sole powers to raise revenues and promulgate rules and

regulations to run and manage the water utility pursuant to the provisions of Sec. 26, Title II,

of PD No. 198;

That the operation of the HWD shall be in accordance with the provisions of PD No. 198,

particularly Title II, known as Local Water District Law;

The ware of the fact that the Hagonoy Waterworks system is still a non-self supporting

utility and to permit the newly formed HWD to implement and improve staffing pattern and

operational format, the Municipality of Hagonoy shall provide a monthly subsidy for a period

of time to help operate and maintain the said waterworks system or until such time as the

water district shall have been found self-sufficient by the Local Water Utilities

Administration (LWUA).


In recognition of its having taken very significant and necessary steps and substantial commitment

to improve the domestic water service to the people of Hagonoy, as evidenced by a schedule of

improvements, submitted to and approved by LWUA, the HWD was granted a Conditional

Certificate of Conformance No. 31 with the standards of service to the public that have to be

achieved. Thus, creating HWD and becoming the first local water district in the Province of

Bulacan.

The first General Manager of HWD was Engr. Antonio Santos who after resigning from LWUA

managed the district. The first few months of operation was subsidized by the Municipality of

Hagonoy and the rehabilitation of pump stations to improve service was made from loans granted

by LWUA. In 1981, Engr. Santos migrated in USA and was replaced by then Director (Member of

the Board of Directors) Miguel Santos. During his term expansions of coverage areas were made

in the southern part of the town specifically Sta. Cruz, Sto. Rosario and Sagrada. Unfortunately,

the financial feasibility of the project was not met and the project became a dismal failure due to

the management’s inability to pay the loans granted by LWUA. As a result, the district decided to

accept a take-over management by LWUA under the interim management of Engr. Edgardo

Tolones replacing Mr. Miguel Santos. In 1987, after more than a year of take-over management,

LWUA opened the position of General Manager to the public.

Among 21 applicants vying for the position as General Manager, Engr. Celestino S. Vengco was

chosen after strict screening and testing conducted by LWUA. He is also the lone passer of the

psychological and other tests conducted.

During his first 10 years of term, HWD has emerged from losses to net income. The management

has become updated in all loan amortizations with LWUA. The improvement projects that were

abandoned by a certain contractor were continued by the management without making

additional loans from LWUA. Eighteen hours of service became 24 hours around the clock.

Expansions and improvements all over Hagonoy were successfully accomplished from the mere

operational fund of the district and also from financial assistance granted by then Senator Blas F.

Ople and some of his allies like Hipolito and Magsaysay.

HWD was originally a quasi-public corporation but performing in a private manner and without

the control of national government agencies until the Supreme Court ruling issued to Davao City

Water District vs. the Civil Service Commission (CSC), that all local water districts are now

government-owned and controlled corporations (GOCC) and under the control of national

government agencies like GSIS for membership coverage, CSC for appointments, the Department

of Budget and Management (DBM) for the plantilla and benefits and the Commission on Audit

(COA) for annual audit as to accounting procedures followed by water districts.

HWD as an entity is independent, autonomous, non-stock, self-supporting, non-profit, self-reliant

GOCC that does not receive regular subsidy, grant or budgetary allocation from any

political government subdivision. HWD is tasked to manage and operate the district in a

businesslike and proficient manner through the strict performance of its manpower and by the

appropriate allocation and timely utilization of its resources to result in the optimum benefits to

HWD and its water consuming public.


NO. PUMPING STATION LOCATION TYPE OF MOTOR RATED CAPACITY PROD.CAPACITY WELL DEPTH WELL STW DATE INSTALLED SERVICE AREA

1 PoblacionMunicipal Compound

pathway thru H.E.S.

submersible pump

& motor15 h.p. 317 gpm 400-500 ft. 56 ft. 1976

Sto Nino ,San Agustin, San

Sebastian

2Apo Ana Production

Center

Water Tank Compoundin

front of Sta Ana church

submersible pump

& motor7.5 h.p. 115 gpm 400-500 ft. 56 ft. Aug. 2000

San Sebastian, Poblacion

Sto Nino, San Agustin

3 Sta MonicaPurok-1 near the river

side

submersible pump

& motor15 h.p. 317 gpm 383 ft. 58 ft. 1976

San Jose, Sta Monica,

Poblacion, Tampok

4 San Agustin San Agustinsubmersible pump

& motor5 h.p. 100 gpm 500 ft. 64 ft. March 2014

Sto Nino, Sta Monica, San

Agustin, Halang

5 Engr. Manuel R. Contreras memorial production cntr.in front of san pedro

church

submersible pump

& motor30 h.p. 450/500 gpm 550 ft. 65 ft. Dec. 2010

San Pedro, Abulalas,

Halang, San Agustin,

Paombong

6 San Miguel - New San Miguel side of submersible pump

& motor30 h.p. 230 gpm 550 ft. 72 ft. 1978 San Miguel, San Agustin,

7 Apo Pelis Memorial Production Centerin front of iba churchsubmersible pump

& motor30 h.p. 566 gpm 400/500 ft. 56 ft. 1997

Iba-Poblacion, iba-ibayo,

Palapat,caril lo,sn.miguel

8 Kapitan Andres Sytamco San Isidrosubmersible pump

& motor30 h.p. 600 gpm 500 ft. 62 ft. Feb. 2002

san miguel, san juan

bangkal, panducot

9 San Nicolas Production Center Well # 1 San Nicolas near

elementary school

submersible pump

& motor30 hp 550 gpm 380 ft. 54 ft. 1984

San Nicolas, Sagrada,

San Sebastian, Sta Elena,

Sto Rosario

10 Victor AguinaldoMemorial Prod. CenterSan Pascual near churchsubmersible pump

& motor30 h.p. 705 gpm 500 ft. 52 ft. May 2001

San Pascual, Sta Cruz, San

Roque, Sto Rosario

11 Kapitan Isidro Crisostomo Mercadosubmersible pump

& motor30 h.p. 529 gpm 550 ft. 65 ft. 2002

Mercado, Sto Rosario, Sta

Cruz, San Jose

12 Apo Elena Prod. Center Sta Elenasubmersible pump

& motor30 h.p. 650 gpm 500 ft. 46 ft. May 2004

Sta Elena, Sagrada, San

Pablo

13 Sto Rosario Sto Rosario near talipapasubmersible pump

& motor15 h.p. 350 gpm 400/500 ft. 58 ft. 1976

Sto Rosario, Sta Cruz, San

Nicolas

14 Old San Nicolas Salamat Compoundsubmersible pump

& motor5 h.p. 100 gpm 300/400 ft. 58 ft. 1976

Sto Rosario, Sta. Cruz,

Mercado, San Nicolas

15 San Sebastian del Pilar St.submersible pump

& motor5 h.p. 97 gpm 500 ft. 60 ft. Dec. 02, 2015 Sukol,Rizal,Mabini

HWD covers the whole town of Hagonoy, all of its 26 barangays.The table belowshows the

existing HWD water sources/pump stations, the year constructed and the barangays being served.

HWD Pump Stations and Service Areas


At present, HWD has a total number service connection of 27,540. The average consumption per

service connection was recorded at 19.39 m3 per month or 0.65 m3 per day.

The present minimum water tariff of HWD is PhP 127.50 for the 1st 10 m3. Rates go up from PhP

14 to 17 per m3 depending on the consumption bracket. Commercial rates are double the

residential rates.

The source of water supply in the municipality is ground water. At present, HWD has a total

distribution line of 86.5 km, more or less covering all 26 barangays of the municipality and three

barangays of neighboring town of Paombong: San Isidro II, Pinalagdan and Sto. Rosario-Gusi. Pipe sizes

range from 50 mm to 200 mm diameter uPVC. It has 15 pump stations, 11 generator sets and one

storage tank at strategic locations of the municipality. The storage tank has a capacity of 100 m3

and is located at the Poblacion.There are also about 63 fire hydrants strategically located in the

whole town.

1.2. Franchise Area Profile Information

Municipality of Hagonoy is the franchise area of Hagonoy Water District located at the southwest

tip of the Province of Bulacan. It is bounded by the Municipality of Calumpit to the north, the

Municipality of Paombong to the east, the Municipality of Masantol, Pampanga to the west and

the Manila Bay to the south. The town lies at the coordinates of 14°49’55” North and 120°43’59”

East. It is approximately 54 km from Metro Manila or about an hour and a half drive. It can be

accessed via North Luzon Expressway or McArthur Highway. It is also classified as a first class

municipality.

Location Map of Hagonoy, Bulacan


Hagonoy is composed of 26 barangays of which seven are classified as urban. The total area of

Hagonoy is about 10,310 hectares. Clearly, more than 70% of Hagonoy is occupied by the

aquaculture industry.

Barangay Map of Hagonoy

Existing Land Use

Land Use Category Area

(hectares)

Residential 470.56

Commercial/Industrial 14.37

Institutional 31.38

Agricultural 775

Fishpond 8,128.28

Open Spaces (cemeteries, plazas, roads, river, etc.) 822.44

Mangroves 75.97


In 2015, the town had a total population of 129,807 or 29,020 households.Hagonoy’s statistical

details are shown below:

Physical/Geographic Profile

NO. BARANGAY POPULATION AS OF 2015

NO. OF HOUSEHOLD AS OF 2015

LAND AREA (has)

1 Abulalas 5,283 1,256 220

2 Carillo 1,708 419 135

3 Iba 5,321 1,585 546

4 Mercado 7,114 1,378 158

5 Palapat 2,364 519 127

6 Pugad 1,907 377 812

7 SagradaFamilia 6,569 1,417 380

8 San Agustin 10,336 2,353 265

9 San Isidro 8,102 1,802 500

10 San Jose 4,646 1,032 263

11 San Juan 3,542 859 176

12 San Miguel 5,888 1,373 213

13 San Nicolas 5,113 1,245 122

14 San Pablo 3,346 651 239

15 San Pascual 5,957 1,242 741

16 San Pedro 5,042 1,088 210

17 San Roque 4,908 1,010 2,936

18 San Sebastian 8,193 1,785 283

19 Santa Cruz 3,484 735 75

20 Santa Elena 4,918 1,113 520

21 Santa Monica 8,317 1,956 530

22 Santo Niño (Pob.) 4,415 946 65

23 Santo Rosario 5,251 1,133 45

24 Tampok 2,635 612 285

25 Tibaguin 2,884 616 162

26 Iba-Ibayo 2,564 518 302

TOTAL 129,807 29,020 10,310


1.3. Key Performance Indicators In the past years, key performance indicators have helped interested individuals to assess and scrutinize the status of the district. Key indicators for HWD are presented on table below.

Key Performance Indicator Value

Water Coverage (% of Population in Franchise Area) 98% Metered Connections (% of total connections) 100%

Non-revenue Water (% of production) 23.75%

Collection Efficiency (% of total billings) 98.87%

Employees per 1,000 water and + Sewer connection 2.5 Average total Water Sales (liters/capita/day) 125 lpcd

Average hours of water supply per day 24 hours

Revenues/Costs 117% Direct Operating Cost Coverage – from collections

(Collections/Costs)

Direct Service Coverage Ratio

Debt Equity Ratio .18 Net Profit Margin 14.80%

Operating Margin (EBITDA/Operating Income) .77

1.4. Corporate Governance Structure

As a GOCC, Hagonoy Water District operates in a corporate and business-like manner where the policy-making functions are vested to the Board of Directors while its day to day affairs are handled by the head of the management – the General Manager. The GM is answerable to the Board of Directors while all the rest of HWD employees are answerable to the GM. Each of the personnel, may it be regular, casual or the Job Orders, has a well-defined set of tasks based from their qualification. Employees are given periodic ratings to assess their performance. The current composition of HWD Board of Directors:

POSITION NAME SECTOR

Chairman Atty. Elias M. Santos Civic Oriented

Vice-Chairman Mr. Edgardo J. Perez Educational Institution

Secretary Engr. Danilo A. Fajardo Professional Association

Member Mr. Hermogenes C. Mateo Business Organization

Member Atty. Dalisay O. San Jose Women Organization


The HWD organization, as headed by the General Manager and has five Division Managers.

2. MISSION, VISION, CORPORATE VALUES AND KRAs As public water utility firm, the primary reason of HWD’s existence is to provide service to its franchise area. Not just ordinary service but efficient and globally standard service at that. The HWD organization had set forth clear guiding statements as to what path it will tread. Such statements guided the utility to come with a clear mission and vision that states its purpose and values. VISION STATEMENT:

To ensure an efficient, sustainable and financially viable water service and sewerage sector

delivering the highest quality service to all concessionaires.

MISSION STATEMENT:

Hagonoy Water District commits itself to be a progressive and economically viable utility

firm that provides sufficient, safe and accessible water at the least possible cost while

ensuring sustainability, reliability and preservation of the environment.

General Manager Engr. Celestino S. Vengco

Division Manager

Administrative Ma. Salvacion L. Bautista

Finance Remedios R. Osorio

Customer Accounts Ma. Socorro C. Salvacion

Customer Service Micheal M. Santos

Engineering & Production Alberto S. Lopez


CORPORATE VALUES:

As Hagonoy Water District (HWD) employees, we dedicate ourselves to:

I. Excellence

We are committed to undertake continuing exploration and development activities, aimed

at the preservation and sustainability of our water sources. We must always adhere to

sound practices in preserving our natural environment.

II. Innovation

Our capability to provide proper service must continuously improve by designing and

managing the growth of infrastructure in an innovative, timely, safe and cost-effective

manner and conforming to internationally accepted standard.

III. Teamwork

It is then indispensable to nurture a highly motivated workforce, with a strong spirit of

collaboration, deeply committed to professionalism, and firmly focused on productivity.

IV. Customer Focus

We continuously improve quality of service, responsiveness and maintain a respectful

relation with our customers and stakeholders for their satisfaction.

V. Commitment

Our workforce shall be upheld and inspired by a competent management team dedicated

to the common good of HWD. All these tasks must be accompanied by sound and prudent

financial management with the overriding goal of providing better services to the people

of Hagonoy, Bulacan.


KEY RESULT AREAS:

Water Safety and Accessibility

‘Water’ is looked upon as a social and environmental resource. The term ‘right to water’ does not

only refer to the rights of people but also to the needs of the environment. As a minimum, the

quantity should be sufficient to meet ‘basic human needs’ in terms of drinking, bathing, cleaning,

cooking and sanitation.

Groundwater is relatively inexpensive, but it is limited in volume and irreplaceable if depleted.

Maintaining a safe water supply means that river basins and groundwater are managed in their

entirety.

Excellent service

Excellent service is the process of consistently communicating to all customers – whether it is an

internal customer or external customer – that they are valued, and that their satisfaction is

paramount to the organization.

Community Participation

Community participation is defined as a continuous two way process which involves promoting

full public understanding of processes and mechanisms through which the community is involved

in identifying environmental problems, developing action plans, implementing the best plan and

monitoring the impact of such action.

Environmental Protection

Environmental protection is a practice of making concrete actions in addressing environmental

concerns on individual and organizational levels. Environment protection proposes to solve the

existing and potential environment problems, harmonize the relationship between human beings

and environment and ensure the sustainable development of the economy and society.

Sanitation Service

Sanitation is a basic, as well as a long-standing, public health issue. It includes the proper disposal

of human and industrial wastes and the protection of the water sources. Sanitation is directly

related to water quality and water pollution which poses potential health risks. Water sources

must be protected prior to consumption. By providing protection to the source, water is available

without much treatment.


Resource management

Resource management is the efficient and effective utilization of an organization's resources

when they are needed. Such resources may include material and human assets.

Infrastructure and Technology Development

Infrastructure and technology are the vital underlying components in maintaining and sustaining

the quality of service of any organization. Continuous development, improvement, and acquisition

and upgrading of existing technology are vital in upholding excellent service.

3 SENIOR MANAGEMENT OVERVIEW OF THE BUSINESS PLAN

Senior management of Hagonoy Water District believes in the conscious effort to strive for

excellence in the workplace by identifying issues that need to be addressed in the most

determined and objective manner. The Business Plan is recognized by Senior Management as a

handy tool in assessing where the Water District is situated at a particular time in terms of its

goals and targets and where it ought to land.

3.1. Priority Issues for the Utility

The Water District has several priority issues that are considered very urgent in terms of

addressing them. These have been identified after thoroughly assessing the present state of utility

in all aspects. The water service of Hagonoy Water District has already covered all the barangays

of the municipality. Considering this, it is apparent that the next critical stage of utility is to sustain

the need for adequate and potable water as well as to continually protect and preserve of its

water sources.

To further reduce the percentage of non-revenue water is also one of the issues that continuously

challenge Hagonoy Water District. It is necessary that future programs be established to fully

minimized non-revenue water to generate more income.

3.2. Major Challenges Facing the Utility in Implementing the Business Plan

While the Water District Management is determined to implement the business plan, it is

oftentimes confronted with challenges that are oftentimes difficult to overcome. However the

decisiveness of the Management backed up by the support of the Board and the assurance of staff

cooperation turns these challenges to something easily surmountable.


These challenges are identified as:

3.2.1 The Capex Requirement

The funding sources needed to implement the Performance Improvement Program

to attain the strategic goals of the Water District still have to be identified. This may be

coming in the internally generated or out-sourced funds;

3.2.2 The Water Resource Requirement

The continuously increasing of water demand amidst moderate will inevitably

necessitate tapping other water sources in the future. Although as the water resources

potential of Hagonoy is still great, the threat of water supply deficit in the future is

eminent.

3.2.3 The Manpower and Skills Requirement

Looking closely at the existing manpower of the Water District and the staff

productions index of less than 2.5 employees per 1000 service connection, it is apparent

that the existing manpower of the Water District is optimally tapped. With the adoption of

new technologies as demanded by the Performance Improvement Program, additional

manpower and skills will be needed to sustain the operation of the utility.

3.2.4 Further Reduction of the Non-Revenue Water

Amidst the intensified campaign for saturation of the service area in terms of

service connection generation, optimization of water supply is a real challenge. The

reduction of non-revenue water would mean increase in revenue generating water.

3.3. Monitoring, Reporting and Corrective Actions

The successful attainment of the goals identified in the Business Plan of Hagonoy Water District

can be ascertained with the adoption of mechanisms for the monitoring, reporting and application

of corrective actions by top management. Exercise of control over every aspect of the Business

Plan is necessary to ensure that every activity is kept on track.


3.3.1 Monitoring

Every functional area of every division in the organizational setup of Hagonoy Water

District will be monitored by the corresponding supervisor following the principle of chain

command. Each unit will be required to submit its functional areas which will be the

subject of monitoring. These functional areas will be submitted within the last quarter of

every fiscal year. However, for the initial adoption of the Business Plan these functional

areas should be submitted on or before the last working day of July. The functional areas

should have been developed based on the identified Strategic Goals and Performance

Improvement Program. Performance indicators will have to be determined and will be

made the basis for measuring the efficiency of every team member and the team itself.

Division Manager will be responsible for monitoring the performance of every team

member.

For the purpose of ensuring that monitoring is conducted, each Division will hold meetings

at least once a month (depending on the need) and should coincide in the last week of

every month. Minutes of every meeting should be taken. Moreover, managers’ meeting

will also take place to discuss the departmental accomplishment and to discuss such issues

or matters that arises within the departments.

Staff meetings will be regularly scheduled within the first week of every month to discuss

the progress of the Business Plan implementation, based on monitoring. These staff

meetings will be attended by the General Manager and Division Managers, and when the

need arises, by other team member as may be called by the General Manager.

Every meeting should have an agenda enumerating items/issues that need to be tackled.

The agenda should contain, among others the following:

Reading of the minutes of the previous meeting

Business arising from the minutes of the previous meeting

Unresolved issues

Agenda proper (items/issues that will be taken up)

Other matters


3.3.2 Reporting

Reporting will be in writing and should be readily available during regular meeting.

Written reports should be submitted using the standard formats and forms adopted by the

Water District. It should contain the following among others:

The SUBJECT

The BACKGROUND

The PROBLEMS/ISSUES OF CONCERN

The ACTIONS TAKEN

The RECOMMENDATIONS/CONCLUSIONS

All reports will be compiled systematically since they are important documents that will be

needed as reference materials for the periodic review and updating of the Business Plan in

the future.

3.3.3 Corrective Actions

The Manager in charge of certain activities/tasks may be encountering problems that will

be ready to propose corrective actions during meetings to eliminate the problems and to

put progress of the Business Plan back on track. In times when such problems are beyond

the Supervisors ability to resolve, such should be laid down during meetings for

deliberation by the body. Identifying and applying corrective actions are necessary

considering that every Manager and team members are riding the same boat.

4. ASSESSMENT OF CURRENT CONDITIONS AND PRIORITY ISSUES

The water supply system of Hagonoy has undergone considerable changes from the time it was

originally constructed in 1976 to the formation of Hagonoy Water District to what it is at present.

These changes are clearly presented in Chapter 1. The growth of the Water District by leaps and

bounds and coping with this has become a major challenge to Management and the Board of

Directors.

4.1. Current/Expected Conditions

The matrix on performance indicators presented in Chapter 1 will instantly reveal the very

favorable conditions in the Water District. This is despite the cramped physical

arrangement of the work areas of the Water District. For a period of four decades,

employee morale has been commendable as revealed in the figures presented in the

performance indicators.


The improvement in the physical work environment in the Water District is expected to

further elevate morale and enhance efficiency further. This move on the part of

Management to come up with a more wholesome work environment is one of the non-

cash incentives that are implemented in recognition for the high performance levels over

the years.

4.2. Organizational Affiliations

The Management continues to collaborate with other organizations not just in the water

industry but also in civic entities so that healthy organizational alliances are maintained.

Management recognizes the importance of establishing and maintaining networking with

other organizations as this will further enhance social and political acceptability of the

Water District. Hagonoy WD is an active member of BAWD, CLAWD, PAWD, WEAP and

PWWA. Being a member of these organizations, water districts’ internal predicaments with

other government agencies such as BIR and Commission on Audit will be treated with

fairness and cordiality.

4.3. Nature of Workforce and Skills

In order to attain a high level of standard and efficiency, management has been instituting

a strict screening process in the recruitment of manpower. Only qualified people are

allowed to join the workforce as mandated by the Civil Service Commission.

Coping with the fast technological advancement is done by equipping employees with the

necessary training both in-house and in other institutions/organizations.

If there is one common characteristic that is easily noticed in the workforce, it is the high

morale and level of motivation. Employees’ motivation is the key to good performance. It

is for the this reason that HWD keeps on implementing reward programs that will uplift

employee morale and pride in being part of the organization.

4.4. Search for the Most Outstanding Performer

The management is conscious of the importance of employees’ contribution in achieving

company goals. To be able to sustain employee enthusiasm, the management has a

program on “Search for the most outstanding employee of each six division and among

then choose the top performer of the year”. This program was implemented to motivate

employees to embrace the “best-effort” attitude in work.


An employee must have served the company for 15, 20, 25, 30, 35 years and so on without

gap. Must be chosen as the best employee of his division and be the best employee among

the best employees chosen in each division. As reward for being the Best Employee of the

Year, the awardee is entitled to cash prize and certificate of appreciation from the

Management and the Board.

4.5. Resource Management and Optimization

The district is able to maintain lower percentage of operating expenses over the total

revenue which means that the district is able to optimize use of its resources at lesser

expenditure. Attaining this does not only mean budgeting. It reflects employees’ attitude

resource use and management. The district likewise manages to have a very high staffing

ratio of 405.

4.6. High Collection Efficiency

As of the end of year 2015, the district had a 98.86% collection ratio which is a product of

HWD’s endless effort to implement and practice programs encouraging concessionaires to

pay water bills on time to prevent inconvenience. Some ingenious policies that had been

adopted to attain high collection efficiency include the following:

Disconnection Policy. The Water District religiously disconnect water service by pulling out

the water meter of concessionaires who fails to pay their two (2) consecutive months

penalized.

7:00am to 5:30pm Collection Time. For practical reasons and in order to enable

concessionaires working in the 8 a.m. to 5 p.m. shift to have time to pay their bills the 7:00

a.m. to 5:30 p.m. collection period has been adopted by Management. This schedule gives

the concessionaires the flexibility to pay water bills without necessarily sneaking out of

their jobs especially to those who are working within and outside Hagonoy. Counters for

settling water bills are likewise open on Saturdays, from 8:00 a.m. to 12:00 n.n. We also

have 5 field bill collectors ready to received payments in their house-to-house distribution

of billing notice and disconnection orders. Moreover, our disconnectors are also mandated

to receive and issue official receipts for those service connections scheduled for

disconnection.

Priority lane for PWD, pregnant, senior citizen has been set up at the ground floor of the

office.


5. STRATEGIC GOALS

The five-year business planning period of Hagonoy Water District is formulated with its Mission

Statement in mind with serious consideration on the challenges it is presently comforted with.

These are embodied in the identified strategic goals which serve as guiding light in the attainment

of the world-class image of the Water District.

5.1. Additional water sources to cope with the growing population

To provide the water sources to cope with the 0.60% population growth per year the demand for the water safety and accessibility also increases. This is one of the major considerations of Hagonoy Water District in the establishment of this goal. At present, the existing sources of HWD are capable of meeting the water demand of 27,540 service connections. However, it is projected that within five years, number of service connections will grow. Given this scenario, HWD should address the need for additional water supply.

Groundwater exploitation through deepwells is considered the most suitable source of supply for the future needs of WD. As of December 2015, HWD has fifteen (15) deep wells with a combined discharge capacity of 300 lps.

5.2. Replacement of old existing distribution line (steel pipe to uPVC pipe line)) In line with the goal of HWD to continuously reduce the non-revenue water, HWD has come up with strategy of replacing the 35 years old steel distribution line to new uPVC pipe line. The aim of this strategy is to decrease water losses due to leakages. As the government’s road upgrading projects due to high tide progress, the agency coinciding/replaces its aging distribution line.

With the availability of this facilities and program in Hagonoy Water District within the

five-year planning period, Management is confident that a higher level of efficiency will

further be attained.

5.3. Septage Management Program

The operational objectives of the Septage Management Program are:

1. To provide septage desludging service to all customers of HWD that will reduce

pollution attributed to untreated septage discharge or overflow from households;


2. To comply to all existing local and national environmental laws and regulations on

effluent and sludge disposal by construction and operation of efficient treatment

plants and sludge disposal facility; and

3. To improve water quality, sanitation and public health conditions to enhance

economic productivity in the general areas of Hagonoy and its neighboring

municipalities.

5.4. Acquisition of lot

Acquisition of lot adjacent the HWD office building. This lot will be allotted for the drilling of an additional well, construction of warehouse, motor pool, fabrication area, water meter calibration shop and additional parking area.

5.5. Acquisition of Mobile Truck Water tanker

Acquisition of mobile truck water tanker will be used as buck up source of water in case of water interruption. This usually happens during major breakdown of water source.

Water rationing will be very beneficial especially in times of calamities as experienced by the company during the past. This will serve as a contingency measure to augment the need for potable water in times of needs.

6. WATER DEMAND MANAGEMENT ANALYSIS AND WATER SALES FORECAST

A thorough assessment of the water demand of the Water District is a crucial step to the

formulation of the business plan of the utility. It enables Management determine the parameters

that need to be controlled or enhanced to steer the Water District to the path leading to the

attainment of its strategic goals.

6.1 Per Capita Consumption by Class of Customer

Based on the historical data of Water District, per capita consumption has a gradual but

constantly increasing trend. This may be attributed to the improvement in the standard of living in

the municipality as propelled by its rapid urbanization. One noticeable change is the advent of

washing machines which is more water intensive than a manual clothes washing. Another easily

observed development is the proliferation of carwash enterprises and water refilling station which

mushroom all over the area. These are just some of the indicators that trigger the increase in unit

water consumption in the area.

While it is easy to quantify the per capita demand for domestic connections, there is some degree

of difficulty to determine with accuracy the per capita consumption for commercial connections.

This because commercial connections do not have fixed number of people served but rather


dependent on the clientele of every commercial enterprise. This varies widely depending on the

nature of the establishment. At any rate, the unit consumptions per use category are presented

below.

Average Unit Consumptions

Domestic

(lpcd)

Commercial

(m3/conn/month)

Bulk

(m3/conn/month)

125 24 105

6.2 Non-Revenue Water

The non-revenue water (NRW) is a major factor contributing to the inefficiency of a water utility.

Recognizing this, the Management of Hagonoy Water District is particularly and rigorously

monitoring the magnitude of its NRW. Based on the monthly data sheet of the Water District,

NRW over the past five years range of 20.97 to 23.75 of water production.

6.3 Forecast of Water Sales

Water sales analysis depend on the projected number of new connections and the demand per

capita for household, commercial entities and public institutions.

6.4 Sources of Supply for the Planning Period

HWD has ground water as possible additional water sources. However, as mentioned earlier the

well fields might approach threshold capacity and exploitation and therefore may necessitate to

obtained additional supply from raw water.

7. ORGANIZATIONAL STRUCTURE AND STAFFING PLAN

7.1 Current Organization and Staffing

Hagonoy Water District’s present category is B, with a total workforce of 68 permanent

employees out of 160 approved plantilla positions by the Department of Budget and

Management. It is comprised of four departments, namely: 1) Office of the General Manager, 2)

Administrative and Finance Department, 3) Commercial Department, and 4) Production and

Engineering Department. The Administrative and Finance Department is subdivided into the

Administrative Division and Finance Division, the Commercial Department into the Customer

Service Division and Customer Accounts Division, and the Production and Engineering Department


into the Production Division and Engineering Division. Each of the six divisions is headed by a

Division Manager reporting directly to the Office of the General Manager.

The functional organizational chart of HWD

Engr. CELESTINO S. VENGCO General Manager

DIANNE E. MENDOZA

Admin. Service Assistant / Secretary

GENERAL MANAGER’S OFFICE

CLEMENTE C. IGNACIO

Water Maintenance Man A

DALMACIO DR. PANGANIBAN

Water Maintenace & General

Foreman

JEFFERSON FERNANDEZ Utility Worker

JULIAN P. CASTRO

Bldg. Maintenance & General

Services


MA. SALVACION L. BAUTISTA Division Manager B

JOSEFINA L. UMALI Cashier B

MA. RAQUEL DE LEON Acting Cashier

MANUELITO L. VENGCO JR.

Admin. Service Assistant

RESA E. AGBAYANI Procurement Analyst

MARIA ELENA G. FAUSTINO

Admin. Service Assistant

JOSE N. CASTRO JR.

Liaison Officer / Utility Worker

ALEX BRIAN DC. DELA CRUZ

Utility Worker

ADMINISTRATIVE DIVISION


REMEDIOS R. OSORIO Division Manager B

EVANGELINE DC. CASTRO Sr. Property / Supply Officer

CECILIA S. SAGUINSIN

Senior Accounting Processor A MARIA CECILIA N. SANCHEZ

Senior Accounting Processor B

FERNANDO M. DELA CRUZ

Storekeeper C

ELENITA L. REYES Senior Accounting Processor B

MARY JANE F. BUNDOC

Accounting Processor

ALBERTO S. SANTOS

Meter Mechanics

FINANCE DIVISION


CUSTOMERS SERVICE DIVISION

MICHAEL M. SANTOS Acting Division Manager B

DAMASO P. DELA CRUZ JR. Water Maintenance General Foreman

CESAR C. DEL ROSARIO

Commercial Inspector

DONATO M. SANTOS

Commercial

Inspector

JOSELITO G. CRUZ

Commercial

Inspector

MARIO M. YAMBAO

Meter Reader

FERDINAND BALTAZAR

Meter Reader

HONEY GRACE S. SANTOS

Cusomer Service

Assistant

GEMMA B. TIGLAO

Customer Service

Assistant

MELADY DC BUENSUCESO

Cmer Service Assistant

ARNULFO M. MORALES

Meter Reader

AUGUSTO RAYMUNDO

Plumber

RODOLFO T. BALUYOT

Plumber

GLENN S. MALENAB

Meter Reader

DANILO P. SANTOS

Plumber


MA. SOCORRO C. SALVACION Acting Division Manager

ROMEO R. MANALO Cust. Service Asst A. - Supervisor

ROMEO M. MELENDEZ Field Bill Collector

EDNA A. MORALES Supervising Data Encoder

JOSE L. VENGCO

Field Bill Collector

BENJAMIN R. BENEDICTOS


ROMEO CERVANTES JR.


JASON ROM C. BALATBAT

Field Discon. / Recon.

ROMMEL M. IGNACIO

Office Bill Collector

ABIGAIL U. MAGPAYO


PRISCILLA E. URBANO


MAYVEL N. SANTOS Office Bill Collector

MOISES E. SALVADOR Field Discon. / Recon.

JONATHAN A. ESPINOZA

Field Discon. / Recon.

RESTITUTO DJ. BALUYOT

Supervising Data Encoder

KENNETH S. SAGUINSIN


JOSEPH L. TOLENTINO Field Discon. / Recon.

CUSTOMERS ACCOUNTS DIVISION


ENGINEERING DIVISION

ALBERTO S. LOPEZ Division Manager

MARY ANN G. MANALO Senior Data Encoder

PETER JOHN G. PANGANIBAN Utility Worker

GREGORIO A. TEODORO

Water Maintenance Foreman

GERONIMO R. SANTOS

Water Maintenance Head

JASON Q. FELIPE

Water Maintenance Man

JAIME V. PASCUAL Water Maintenance Man

LORENZO E. BAUTISTA

Utility Worker

ARTURO PINEDA


RICARDO M. CASTRO JR.

Senior Water Maintenance

FELIX V. SANTOS

Senior Water Maintenance

MARIO M. RAMIREZ Water Maintenance Man

ADLER M. FAUNDO Water Maintenance Man

RONALDO M. GALANG



PRODUCTION DIVISION

REYNALDO B. PAYONGAYONG Asst. Division Manager

MARY ANN G. MANALO Senior Data Encoder

IRENEO P. YONGCO

Pump Operator

JUN H. LOPEZ

Pump Operator

ALEJANDRO U. DEL ROSARIOS

Senior Pump Operator

ROLANDO F. SANTOS

Pump Operator

FRANCISCO M. ELIGIO


EDGARDO A. CERVANTES

Pump Operator

FELINO T. VILLANUEVA

Pump Operator

ENRIQUITO P. LIONGSON

Pump Operator

REYNALDO S. CASTRO


AVELINO I. DELA CRUZ

Pump Operator

ERNESTO DJ ESPINOSA

Pump Operator

ALBERTO S. LOPEZ

Division Manager


8. PERFORMANCE IMPROVEMENT PROGRAM TO ACHIEVE STRATEGIC

HWD has its own performance standards. These standards and policies/procedures are clear and

fully understood by all employees. This system helps the district to achieve its goal accomplish its

projects and programs.

Proper human resource management and sound financial utilization is the best key of Hagonoy

Water District in making its dream turn into reality. But we never stop from there, HWD

continuously to live with its mission and that is our commitment to serve with quality and

equipped with practical modern technology in order to be of best service to our consumers. That

is why the management persistently strived to achieve our strategic goals specifically within the

coverage of the business plan. Seminars and trainings will be conducted to educate all employees

regarding our goals and we will work hand in hand for the achievement of our common objective.

9. FIVE-YEAR COST BUDGET FORECAST

9.1 Base Pay

The base pay of the HWD employees are based on the Salary Standardization Law (SSL4)

prescribed by the Department of Budget and Management. Also part of the employee

compensations are the Representation and Travelling Allowances (RATA) for general manager,

and head of division. Likewise they are also entitled to Personal and Economic Relief Allowance

(PERA), Cost of Living Allowance (COLA) and Additional Compensation (ADCOM). Mandatory

benefits such as 13th month pay and other form of monetary reward is also been given to every

employee. The district incorporated the 20% increase (spread in 4 years) provision on the

anticipated SSL4.

9.2 Other Personnel Costs

This includes the employee compensation, premium contributions to GSIS, Maxicare, Pag-IBIG and

Provident Fund. Budget for the trainings and seminar is also being charge to this account.

9.3 Contracted Services

Contracted services are the expenses incurred by the district in securing the security services and

other works which have to be contracted to others, this account also known as Other Outside

Services Employed.


9.4 Consumable Expenditures

This expenditure category includes various line items used for operations and maintenance to

include fuels, lubricants, spare/replacement parts, chemicals, tools and other supply related items

as well as services, special repair services and equipment rentals.

9.5 Debt Service

The existing Debt Service of HWD comprises loan payables to LWUA and Land Bank of the

Philippine-Malolos Branch. For the next five (5) years specifically in year 2013, the district will start

paying the principal and interest portion of the EIGHTEEN MILLION (18M) loan from Land Bank

which financed the various water improvement projects and payment of loans from the

HWWMPCI which started 2014. Said loan will have a one year grace period on principal payment.

Principal and interest payment will commence on year 2014.

10 FIVE-YEAR CAPITAL EXPENDITURE AND INVESTMENT FORECAST

To continuously improve and develop the facilities of the district, the management has lined up various capital investments that will intensify its services to the community. Among the major projects, the water system improvements (implementation of parallel pipelines, expansion and replacement program, and replacement of old existing distribution line); acquisition of lot for the drilling of an additional well, construction of warehouse, motor pool, fabrication area, water meter and calibration shop and located at Poblacion Sto. Niño (near HWD office); acquisition of mobile truck water tanker as back up source of water in case of major water interruption; and septage management program.

11 INTERNAL GENERATED CASH

The revenue needs will be based on the collection efficiency as experienced by the district or

solely on internal generated cash (IGC).


12 TARIFF POLICY AND STRATEGY

The current water rates of HWD were shown in the table below. Additional 10% penalty charge

will be added to all overdue accounts.

COMMODITY CHARGES

CLASSIFICATION Minimum

Charges

11-20

cum

21-30

cum

31 and up

cum

Residential 127.50 14.28 15.81 17.34

Commercial 225.00 28.56 31.62 34.68

The district also offers installment basis for new connections, wherein applicants are only required

to pay FIVE HUNDRED PESOS ONLY (P500.00) as down payment and the balance amounting to

ONE THOUSAND PESOS (P1,000.00) will be payable in three (3) consecutive months without

interest. The monthly amortization will appear in his billing notice under the account “others”.

Aside from the water sales, HWD generates revenue from other fees and charges such as

reconnection fee, water meter maintenance fee, “abang” fee, tampering penalties violations,

unbilled water fees.

One of the factors that contribute to very high collection efficiency is due to the fact that HWD is

the only local water district in the province that has field bill collector.

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