HomeMy WebLinkAbout10/31/2007 AGENDA BACKUPCentral Contra Costa Sanitary District Strategic Planning
TO: HONORABLE BOARD OF DIRECTORS
FROM: STEPHEN T. HAYASHI
SUBJECT: WORKSHOP AND SUMMARY OF PRELIMINARY FINDINGS
DATE: OCTOBER 25, 2007
Thank you for your participation and cooperation in the
written questionnaires and face -to -face interviews. A
summary of the key findings from these questionnaires and
interviews is attached.
Based on the information gathered through the
questionnaires and interviews, as well as the fact that we
have a very limited time period in which to achieve an
outcome, we will use the four -hour workshop time to discuss
strategic issues facing the District. There are six issues
that most Board members agree are critical components of
the District's strategic plan. However, due to the limited
time available, we may not be able to cover all six issues.
Instead, we ask that you indicate the four issues that you
feel are the most necessary to discuss during the upcoming
workshop. The six issues are:
■ Recycled /Reclaimed water
■ Cultural diversity
■ Public outreach
■ Costs of retirement and benefits
■ Rates
■ The District as an industry leader
Please bring with you a piece of paper with your four
issues listed. An agenda for the October 31St workshop is
attached. The workshop will be held at the Contra Costa
Country Club and will begin at noon with lunch.
Thanks, and see you next week,
Steve Hayashi
Red Oak Consulting
J
Red Oak Consulting
Central Contra Costa Sanitary District Strategic Planning
Strategic Issues Workshop Agenda
Board of Directors
October 31, 2007
Noon - 4 pm
Purpose of Meeting
For the CCCSD Board of Directors to discuss the strategic
issues that are currently facing the District in order to
provide staff with sufficient direction to prepare the
staff strategic plan.
Outcome
Board members give the General Manager sufficient direction
on the strategic issues so that the staff can then develop
objectives and action items that address the Board's goals.
Agenda Items
■ Lunch (30 minutes)
■ Review workshop agenda (5 minutes)
■ Discuss what success will look like for each Board
member (25 minutes)
■ Review /Clarify how staff will be given direction on
the strategic issues (5 minutes)
■ Discuss strategic issues (160 minutes)
• Recycled /Reclaimed water
• Cultural diversity
• Public outreach
• Costs of retirement and benefits
• Rates
• The District as an industry leader
■ Meeting review /feedback (10 minutes)
One break is planned at 2:00 p.m.
Red Oak Consulting
Central Contra Costa Sanitary District Strategic Planning October 25, 2007
Summary of Preliminary Findings
INTRODUCTION
As part of the strategic planning process, and in order to gauge the
position of the Board with respect to the existing strategic plan,
Red Oak has gathered information from the Board via a two -step
interview process: a written survey, followed by individual
interviews. Red Oak has developed the following memorandum based on
the responses received from the surveys and interviews.
SUMMARY OF PRINCIPLE FINDINGS
Written Questionnaires
The responses to the written survey suggest that there is general
acceptance of the District's current Mission, Vision, and Values.
There was a less unified view on the respective roles of staff and
the Board in creating the District's Mission, Vision, Values, Goals,
and Objectives. Some Board members believe that staff should set
the Goals and Objectives after receiving the Board -set Mission,
Vision, and Values, and other Board members believe that the Board
should set all policies, including Goals and Objectives.
All Board members agree that the District should strive to be an
industry leader; most Board members believe that the District is
already an industry leader, and at least one Board member believes
that the District has become too "comfortable." However, there does
not seem to be agreement about the methods and strategies the
District should employ in order to stay ahead of the industry as a
whole. The level of investment in emerging technologies is one
related issue on which there is some contention, with some members
believing investments in technology should be large, and others
thinking the District should be more conservative. Board members
also agree that the District currently provides excellent customer
service and full regulatory compliance. The issues of reclaimed
water, cultural diversity, retirement and benefit costs, education,
outreach, service rates, and the Board's current committee system
stood out as potential topics for further discussion. The written
responses to the surveys are provided in Appendix A of this
memorandum.
Interviews
The individual Board member interviews reaffirmed the survey
findings. The collective information will steer the content of the
agenda for the upcoming four -hour workshop. The following are
selected summaries of the responses given to Red Oak during the
interviews.
Workshop Objectives - Each Board member was asked what he or she
would consider to be a successful outcome of the four -hour workshop.
The answers, in no particular order, were:
1 Red Oak Consulting
Central Contra Costa Sanitary District Strategic Planning October 25, 2007
Summary of Preliminary Findings
• Bring the Board members together and promote synchrony.
• Validate the existing strategic plan, maybe make some
revisions, and help to polish the draft strategic plan
developed by staff.
• Do more than simply reaffirm the Mission, Vision, and Values
by agreeing on a framework through which staff can develop
Goals and Objectives, or, come away with an enthusiastic,
endorsed idea of how the District can create stronger
community leadership or promote more recycled water.
• Develop a process through which the Board can lead the
District rather than the staff lead the Board.
• Focus on the issues; come to a consensus on what issues are
important and move forward from there.
Recycled Water - All Board members agree that recycled /reclaimed
water it is an important component of the District's mission, but
are concerned about the influence that the Contra Costa Water
District (CCWD) has over the District's attempts at providing
recycled water to customers. Individual Board members' comments
include:
• The District knows how to manufacture recycled water, but is
the District taking the next step in terms of research and
improving technologies? Can the District improve to the point
of being able to provide recycled water as a drinking water
source?
• The District must more clearly define its goals on reclaimed
water; currently there is not enough of a focus on this issue
in the Goals and Objectives of the draft strategic plan.
• It is virtually immoral to simply discharge all of the treated
reclaimed water back into the brackish river than runs to the
bay; it is a wasted resource. It is the District's duty to
make reclaimed water available to local water districts.
• The District is wasting money on reclaimed /recycled water
until it can get CCWD to change; does the District want to
take on CCWD?
• Recycled /reclaimed water needs to be addressed in the
strategic plan. CCWD makes it difficult for the District, and
currently charges the same price for reclaimed, non - potable
water and clean drinking water. Perhaps the District should
approach the state assembly or engage in some other political
forum in an effort to allow the District to become a purveyor
of recycled water.
Diversity - Cultural Diversity within the District's workforce is
also an issue that was discussed during the interviews. All Board
members agree that diversity is desirable. Individual Board
members' responses include:
■ Diversity is difficult to address given the number of
variables. The District is limited to hiring the people who
are available and qualified; if the District cannot find these
2 Red Oak Consulting
Central Contra Costa Sanitary District Strategic Planning October 25, 2007
Summary of Preliminary Findings
people, perhaps they need to manufacture qualified people by
hiring people without the usual educational background and
training them in- house. But if you start diverting too much
money into preparing people, what are you doing to the
District as a whole? The District must titrate what it does
besides treat sewage to find the right balance.
• The District already has a lot of ethnic diversity.
• Diversity and innovation creates a melting pot that promotes
growth and is desirable. Workforce and managers should
reflect the character and culture of the community the
District is serving. The District can take actions to get a
broader pool and get underrepresented groups into the
applicant pool, but it is illegal to hire simply based on
race, gender, sexual orientation, etc.
• If the District is the best in so many ways, the District
should at least be mediocre with respect to cultural
diversity, but currently the District is not.
• The issue of cultural diversity needs to be addressed. The
District needs to make sure it is giving everyone a fair shot,
but also needs to hire the best candidate for the job.
Outreach - Public outreach was another area of concern for Board
members The topic was discussed in four of the five interviews:
• Most sanitary districts are now doing outreach and the
District should too. The District needs to tell people what
it is, what it does. The current sewer science program is
good but it reaches too few children. The website can be
updated and used to reach out to people.
• Everything the Board and District does should be transparent.
It is good to educate the public, but sometimes the
information may fall on deaf ears and the District needs to
think about the resources spent to do this.
• It is better to do a good job and be quiet than to be loud and
not as good. The District accomplished much more when they
were small, quiet, and efficient.
• The District is currently doing enough in terms of outreach.
There are rarely any problems; sometimes less news is better.
Employee Benefits - The cost of providing retirement and other
benefits to employees is an important issue that the Board members
all believe should be addressed, but opinions of how to do so are
mixed :
■ The District is paying so much for retirement. The District
has to reward staff for doing the things they do, but perhaps
the District is rewarding them too much? How do you cut back
on those types of things? The District is doing so well
because it is able to find, keep, and reward good staff;
perhaps the District needs to communicate this to the public
to make them realize it is worth it to pay these costs.
Benefits must be looked at as a cost of doing business.
3 Red Oak Consulting
Central Contra Costa Sanitary District Strategic Planning October 25, 2007
Summary of Preliminary Findings
• The District should set up a trust fund for the provision of
benefits to employees. The District has the money, it just
needs to be done.
• If the District makes a deal with its employees, it should
stick to that deal no matter what. The employees deal with
sewage and need to be rewarded for that. Employers have some
responsibility to provide healthcare, but the District also
has the obligation to control costs. The District is a
better - than - average organization with better - than - average
employees; therefore the District needs to provide pay and
benefits that are better - than - average to ensure that it stays
that way.
• The Board needs to focus on what benefits are costing the
District; benefits make up 46% of the District's salary
expenses. The District should keep the same benefits but use
a different administrator instead of the County. The District
has the highest benefits, but they are hidden.
• The District has a lot of people who are retiring. Providing
retirement benefits is going to cost money and the Board needs
to understand and focus on the issue.
Service Rates - Some Board members believe that the District has
average rates, while others believe that rates are too high or that
the District should not be charging fees for some of the services
that are provided to customers. The topic was discussed in four of
the five interviews:
• The District needs to charge the public for using its
facilities. When there are rate increases, the District needs
to send out an explanation for why the increase is necessary.
The District needs to let the public know what it does and why
it is important.
• The services that the District provides are important and the
District provides these services for only about $300 a year
plus a small portion of the property tax; this seems like a
great deal. If the District asked people for $2 more a month
for a better environment, people you most likely say yes, but
many people are anti -tax. The District should not be
wasteful, but they also should not be cheap. The District
creates value for its customers.
• The District needs to be careful with respect to rates. If
you look at sewer charges, the District is about average, but
if you count the ad valorem property tax assessment, the
District is higher than the rest.
• The District's rates do not need to be revised, but some fees
should be addressed. The District should be helping customers
out in a lot of areas rather than charging more, such as with
Dentists and mercury: why does the District need to create
permits and permit fees? There are levels where the District
should be charging people and where the District just needs to
help people. The District is not the police and they should
4 Red Oak Consulting
Central Contra Costa Sanitary District Strategic Planning
Summary of Preliminary Findings
October 25, 2007
not have to be the bad guys. The District needs to be
solvent, but also needs to be stewards.
CONCLUSIONS
Overall, the written surveys and interviews reveal that there is
general agreement on the District's Mission, Vision, Values. As a
result, rather than focusing on refining these strategic plan
elements during the workshop, Red Oak will moderate a discussion
about select operational issues which should be refined in the
strategic plan. Based on the nature of the responses received by
Red Oak, it appears that the workshop will be most productive if
discussions are focused on the following topics:
• Recycled /Reclaimed water
• Cultural diversity
• Public outreach
• Costs of retirement and benefits
• Rates
• The District as an industry leader
Most Board members believe that the current staff - developed
strategic plan should be considered a draft that will be revised and
polished in order to reflect the outcome of the above issues, which
the Board considers to be vital to the District. The decisions made
during the workshop and follow -up actions will be summarized in a
report. Red Oak will prepare the workshop agenda.
5 Red Oak Consulting
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