The Operation and Management Practices of Local Water Districts in Eastern Pangasinan
Lyceum-Northwestern University Graduate Studies Page iTHE OPERATION AND MANAGEMENT PRACTICES OF LOCAL WATER DISTRICTS IN EASTERN PANGASINAN _____________________ A Thesis Presented to The Faculty of the Graduate School LYCEUM – NORTHWESTERN UNIVERSITY Dagupan City _______________________________ In Partial Fulfillment Of the Requirement for the Degree Master in Public Administration By: RACHAEL C. ESPINOZA March, 2012
Lyceum-Northwestern University Graduate Studies Page ii CERTIFICATION AND APPROVAL SHEET This thesis entitled “THE OPERATION AND MANAGEMENT PRACTICES OFLOCAL WATER DISTRICTS IN EASTERN PANGASINAN has been prepared andsubmitted by RACHAEL C. ESPINOSA in partial fulfillment of the requirements for thedegree MASTER IN PUBLIC ADMINISTRATION” has been examined and isrecommended for the Final Oral Examination on March 18, 2012 . JOSEFINA B. BITONIO, DPA Adviser Thesis Committee ROMANA O. FABREGAS, Ph.D. Chairman JOSEPHINE T. FLORES, DPA CYNTHIA P. LOPEZ, Ph.D. Member Member Approved on March 18, 2012 by the Panel of Examiners on Oral Examination with agrade of 96%. ROMANA O. FABREGAS, Ph.D Chairman JOSEPHINE T. FLORES, DPA CYNTHIA P. LOPE, Ph.D. Member Member Accepted and approved in partial fulfillment of the requirements for the degree MASTERIN PUBLIC ADMINISTRATION.Comprehensive Exam 98% Date: July 3, 2010 ROMANA O. FABREGAS, Ph.D. Dean, Graduate School
Lyceum-Northwestern University Graduate Studies Page iii CERTIFICATION OF THE READING COMMITTEE This is to certify that the undersigned members of the Reading Committee have readthe thesis entitled “THE OPERATION AND MANAGEMENT PRCTICES OFLOCAL WATER DISTRICTS IN EASTERN PANGASINAN. The readingcommittee found the thesis acceptable in accordance with the requirements and standardsin thesis writing. She is recommended for Final Oral Examination on his thesis on March18, 2012. ROMANA O. FABREGAS, Ph.D. Chairman JOSEFINA B. BITONIO, DPA JOSEPHINE T. FLORES, DPA Adviser Member CYNTHIA P. LOPEZ, Ph.D. Member
Lyceum-Northwestern University Graduate Studies Page iv ACKNOWLEDGEMENT The researcher wishes to express her profound gratitude to all those who unselfishlyand contributed to the realization of this academic endeavor. Specifically, she invokesthe Almighty’s blessings upon the following: Dr. Romana O. Fabregas, Dean of the Graduate School and Chairman of her panelfor the helpful suggestion, eloquent comments and guidance that greatly improved thestudy; She would like to express her gratitude to her adviser, Dr. Josefina B. Bitonio, forthe unwavering support, sacrifice, patience, understanding and for gladly sharing hervaluable time and expertise in the conduct of this research; Dr. Josephine T. Flores and Dr. Cynthia P. Lopez of LNU Graduate School, whoserved as panel members for their support and very useful comments; Dr. Lucila M. Caccam, for her editorial advices and constructive comments andassistance in reviewing the final version of the manuscript; The researchers gratefully acknowledges the works of his sources, references,journals, published papers and unpublished papers that made a concrete contribution tothis study. The Officers and staff of the nine Local Water Districts in EasternPangasinan namely: Balungao Water District, San Nicolas Water District, UminganWater District, San Manuel Water District, Metro Tayug Water District, San Quintin,Water District, Sta. Maria Water District, Asingan Water District and Rosales Water
Lyceum-Northwestern University Graduate Studies Page vDistrict for their cooperation and support for providing the needed data; To all the employees of the Metro Tayug Water District for their support and endlessencouragement; Deepest gratitude goes to her family, for their love, support and counselingthroughout her life and her dearest husband who served as her inspiration in thecompletion of this thesis; and above all, to the Lord Almighty, for providing her theneeded strength, courage, wisdom and determination in pursuing this study. RACHAEL C. ESPINOZA
Lyceum-Northwestern University Graduate Studies Page vi DEDICATION Water remains to be one of the critical resources that support the country’s economic and social development. This study is dedicated to all water service provider stakeholders for them to respond to the pronounced need to improve and expand water service coverage and, thus, help ensure that potable water is provided to every Filipino.
Lyceum-Northwestern University Graduate Studies Page vii THESIS ABSTRACTTitle The Operation and Management Practices of Local Water Districts in Eastern PangasinanAuthor RACHAEL C. ESPINOZADegree Master in Public Administration Major in Major in Government Administration and Community DevelopmentInstitution Lyceum – Northwestern University Graduate Studies Department Dagupan CityDate March, 2012Page 131Adviser JOSEFINA B. BITONIO, DPAKey Words Operation, Management Practices, Local Water DistrictsAbstract The study assessed the operation and management practices of the Local Water Districts in Eastern Pangasinan. The descriptive – evaluative design was used in the study to examine the LWDs organizational and management aspects as well as the benefits derived internally and externally stretching to community and other stakeholders. The organizational profile was made through a documentary analysis of a primary data from LWDs while two sets of questionnaire were used as primary data gathering tool for the qualitative assessment. There were 171 respondents of the study consisted of the managers, accountant or bookkeepers and members of the board of Directors and residential, commercial and industrial users for clients. The statistical tools used were frequency, percentage, average weighted means, and ranking. 1. Organizational Profile. 1.1 Service Connections. Of all the nine LWDs Out of the total nine LWDs three has a 1001 – 1500 service connection namely: Balungao WD, San Nicolas WD and Umingan WD; two LWDs has 501 – 2000 service connection, namely: San Manuel WD and Metro Tayug WD; San Quintin WD have 501 – 1000 service connection;
Lyceum-Northwestern University Graduate Studies Page viiiSta. Maria WD have 2001 – 2500; Asingan WD have 3029 service connections andRosales have 4547 service connection. Simply put, Rosales WD has the highest serviceconnection and San Quintin has the lowest. 1.2 Population Served. Four LWDsnamely: Asingan WD and Rosales WD are serving the greatest number of population.In contrast Balungao WD, San Nicolas WD, and Umingan are serving the lowest whileSta. Maria WD, San Manuel WD and Metro Tayug WD are serving 10,001 – 20,000.1.3 Water Rate. The minimum water consumption is 10 cu.m. The nine LWDs havevarying rate ranging from P 169 to P 299 (exclusive of 2% franchise tax). Rosales WDhas the lowest water rate and with Asingan WD and San Nicolas WD the highest at P299 each. San Manuel WD at P 199; Metro Tayug WD at P 204, Sta Maria WD at P218, Umingan WD at P240, Balungao WD at P 262, San Quintin WD at P 295. 1.4Collection Efficiency. As it turned out, the most efficient LWD in the collection ofbilled volume of water is Sta Maria WD at 98%, Rosales WD at 97.73, San QuintinWD, Umingan WD, San Nicolas WD all performed at 97% each, San Manuel WD at94%, Balungao WD at 92.81% and Metro Tayug WD at 91.19%. 1.5 WaterProduction. The LWDs have a production ranging from 21,000 - 1,365,473. RosalesWD produces the highest volume of water at 1,365,473 cu.m., followed by Metro TayugWD at 585,911cu.m., San Nicolas WD at 511,718 cu.m., Balungao WD at 386,911cu.m., Umingan WD at 297,223 cu.m., San Manuel WD at 263,382 cu.m., AsinganWD at 45,778.60 cu.m., Sta. Maria WD at 40,924 cu.m. and San Quintin WD with21,000 cu.m. 1.6 Non Revenue Water. Findings show the following efficiency rankingof the LWDs in NRW: Balungao WD as the most efficient at 13.84 % and Metro TayugWD as the least efficient at 35.7%. The rest of the LWDs have the following NRWefficiency performance: Sta. Maria WD at 14%, Rosales WD with 14.90%, AsinganWD with 15%, San Nicolas WD with 17%, San Manuel WD with 19.50%, UminganWD, and San Quintin WD 33%. 1.7 Connections per Employee. Of the nine LWDs,four were “overload” in service connection per employee namely: Asingan WD, RosalesWD, Sta. Maria WD, and Metro Tayug WD. Four LWDs were slightly overloadnamely: Balungao WD, San Manuel WD, San Nicolas WD, and Umingan WD. SanQuintin WD was found to be “underload”. 2. Operation and Management Practices of LWDs. 2.1 Operational Practices. The following areas are the “highly practiced” by theLWDs: Boards participation in policy making and implementation of policies approved(4.44), Leak detection (4.33); pipe maintenance (4.55); Fixing problems on servicedisruptions (4.66); Conduct of Bacteriological tests (physical/chemical tests requiredannually) and chlorination for water testing (4.88); Water treatment & compliance withwater quality standard (5.0); efficient collection (4.55); Availability of thefacilities/equipments (4.22); On time billing (5.0); Availability of manpower wheneveremergency arises, and (4.55); form the workforce into high performance teams (4.22).On the other hand, the remaining areas rated “practiced” as follows: Written StandardOperating Procedures for efficiency and effectiveness (4.11); upgrading of infrastructure(4.11); Progressive treatment for workers and stronger rights for workers (4); and useof information technology (3.77). The grand weighted mean resulted to 4.42 with adescriptive rating of “highly practiced”. 2.2 Management Practices. The practices that
Lyceum-Northwestern University Graduate Studies Page ixwere rated “highly practiced” are: the implementation of cost effective ways to deliverservices (4.22); Implementation cost efficiency measures of their operations (4.22);Decrease of delinquent accounts (4.77); Reliable customer services (4.55); Transparencyand make clear exactly what customers are paying and their bills (4.88); Fullaccountability for services and charges (4.88); Periodic savings (4.44); Human resourcesperformance review (4.22); and Regular review of financial performance (4.55). Theother practices which were rated “practiced” are Lowest Non revenue Water (4.0);Ability to attract investors for service expansion (3.55); regular human resourcescapability building (4.11); continuous improvement (4.11); Enabling and motivatingworkers to develop, share and apply their knowledge and skills more fully (4.11); andTake full advantage of advances in information technology (3.77).The overall grandweighted mean is 4.296 which a descriptive rating of “highly practiced”.3. Benefits of the Stakeholders in Operating a Local Water District The findings of the study indicated that the stakeholders of LWDs “benefited” interms of contributing to economic growth in local economy and stimulating growth(3.53); Working closely with local leaders and customers. (3.4); Able to access totechnical assistance (3,98); enjoys tax exempt privilege (3.7); affordability of servicerendered to customers (4.18); Partnership with NGOs, public sectors and private sectorsfor developments and other projects(3.42); and provision for social responsibilityprograms (3.34). Other benefits have been rated “slightly benefited” by LWDstakeholders in terms of the following: Access to development fund (3.21); Equitygeneration (3.23): and Institutional development programs (3.13). The overall grandmean is 3.51 with a descriptive rating of “benefited”.4. Problems being Met by the LWDs in Eastern Pangasinan. 4.1 On the financial side, the ability to raise capital (3.28) has a descriptive rating of“serious”. The remaining problems such as limited revenue base (2.77); limited budget(3.31); and inability to meet growing demand (2.73). The overall mean for problemsencountered under financial aspects resulted to 3.02 with a descriptive rating of“slightly serious”. 4.2 On technical aspects, the indicator difficulty to comply withwater standards have a weighted mean 3.64 with a descriptive rating “serious” while therest of the indicators such as: Lack of appropriate skills in performing duties (3.28); Nooperational manual formulated (2.87); and unclear instructions provided by themanagement (3.12) has a descriptive rating of “slightly serious”. The overall mean forproblems under technical has a weighted mean of 3.12 with a descriptive rating of“slight serious”. 4.3 Human Relation aspects. Two problems on human relation: Lackof experience and expertise (3.43) and Poor performance of employees (3.47) have adescriptive rating of “serious” while the remaining two problems such as lowcompensation (2.79) and poor governance of officers (3.68) has a descriptive rating of“slightly serious”. The overall weighted mean is 3.34 with a descriptive rating “slightlyserious”. The grand weighted mean for financial, technical and human relation is 3.16with a descriptive rating of “slightly serious”. Based on the findings made, the following conclusions were drawn: 1. The LWDsin Eastern Pangasinan are small players in the water industry. 2.The LWDs in EasternPangasinan manifested low compliance with the acceptable limits set by the LWUA asshown by the differences in their water rate, labor productivity, collection efficiency and
Lyceum-Northwestern University Graduate Studies Page xincreasing non revenue water; 3. Operationally, the LWDs have limited funding toinstitute a development program for its human resource as well as for infrastructureupgrading and improving its processes with the use of information technology; 4. Thereare problems encountered by the LWDs. The most serious of which are: the ability toraise capital; difficulty to comply with water standards; lack of experience and expertiseand poor employee performance. Based from the conclusions made, the following recommendations are forwarded.1. To strengthen the operation and management of LWDs in Eastern Pangasinan, theymay gain access to LWUA’s varied development services, such as: financial assistancein the form of loans at concessionary rates; engineering/technical services and assistanceon project identification, planning, detailed engineering sign, construction supervision ofwater projects, operation and maintenance of systems; and institutional development andregulatory services in the form of skills and management training, managementadvisory, water rates review/regulation, and water quality regulations; 2. All LWDsmust have a written Operating Procedures as guide for it human resources in theimplementation of its technical, financial, administrative processes and procedures andformulate rules and regulations for their enforcement geared towards effectiveness andefficiency of water utility management; 3. The LWDs should improve theircompliance with LWUA. With a high compliance performance in placed, it is expectedthat it would translate to more benefits and sustainability of the LWDs; and 4. Finally,the intervention measures p roposed by the researcher grouped into three areasof concerns: Operation and Management, Financial, and Human Resource areoffered.
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