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HomeMy WebLinkAbout03. (Handout) Bienati's Agenda and Confidential Synthesized From Board InputZCONSULTANTS TO MANAGEMENT Central Sanitary District Board Priorities Workshop October 22, 2013 Facilitator: Larry Bienati, Ph.D. Attending: Board of Directors (Board), General Manager and his Senior Leaders (Ops) Proposed Topical Agenda and Outcomes 3. (Nand#4 Time Activity Lead 8:00a Breakfast, coffee etc 8:30a Opening Remarks Bailey • Expectations; flow of day; workshop ground rules; expected outcomes Bienati • Expectations; points of clarification Board 8:45a Best Practices in Board Governance, Policy Making, Strategic Oversight Bienati • Share a working model for Board - Operational Authority levels Bienati • Discussion; agree in concept with proposed model Board, Bailey • Document a working model on a go forward basis Bienati 9:30a Strategic Direction (Macro Level) • Agree on District Mission Bailey- Bienati • Agree on District Operating Values, Culture Calibration Bailey- Bienati • Agree on District Strategic Imperatives (based on interviews) Bailey- Bienati 10:05a Brief Break 10:15a Strategic Imperatives (Core Matters) Board -Ops- Bienati • Board Committee Composition (consolidation, terms, charters, frequency) • Organizational Communication preferences (internal w /Board; external w /public) • Operational Resilience (infrastructure, asset management, key programs, technology) • Fiscal Sustainability (rates, cost of service models /study, unfunded liability models) • Human Resources (workforce development, succession planning, structure, benefits) 11:45a Brief Lunch 12:15p Strategic Imperatives Continue (Core Matters) • Carryover pre -lunch topics • Futuristic (utility of future, recycled water, resource recovery, energy, sustainability, environmental stewardship, other topic as time allows) • External Relationships (political profile of the District, other core topics) 2:15p Synthesis of data; conclusions, next step actions Bienati - Bailey o Board reflections; comments on process; commitments; way forward Board 2:50p Close Bailey- Bienati Vision without action is a dream, action without vision is a nightmare; vision with action is the hallmark of a legacy organization (Bienati) Page 11 Confidential Synthesized From Board Input by Larry Bienati (draft 2.0) Talking Points with Central Sanitary District Board of Directors 1. Based on your review of the Carver Governance model do you feel this has implications for how we establish the authority and responsibility level of the Board and the General Manager role here at Central San? a. Yes, very applicable, let's discuss the merits b. Yes, let's discuss further c. Yes d. Yes e. Yes, no additional comments - 2. Can we agree on the application on the model on focusing on "ends" versus "means" in establishing the level of Board governance? Where are points of alignment? What are the gray areas that will require flexibility as we build a successful communication system between the Board and GM? a. Yes, 1 believe ends approach is the right model b. Okay c. Yes, I think the ends approach is acceptable on a governance basis d. Support governance versus operations demarcation to allow GM to do his job 3. Can we commit to a working model or code of Board policy, governance engagement for the District? a. Yes, we should have a working model with clear lines of authority of Board v. Operations. Cited example of chain of command and labor relations, etc. b. Yes c. Yes d. Yes Topic: Mission, Vision and Culture 1. Is the current mission statement of the District still relevant? If not, what needs to change? a. Recycling water? Needs discussion and relevance. Do we need a revised vision statement perhaps ?? b. Not completely —need to be forward looking to the utility of the future concepts —not just to preserve and protect c. 1 believe the answer lies in goals, strategies and objectives in the updated strategic plan d. We need an over - arching vision; step out of the paradigm; resource recovery agency perhaps? Be a leader as an agency of the future in our vision statement 2. Are the current operating values of the District still current? If not, what needs to change and why? a. All aspects of diversity? How are we doing this? How do we measure? b. Add something above cost effective and change like "community relationships" as 1 do not understand valuing idea in this context. Page 12 3. How would we define the culture of our District? What do we wish to preserve? What might we need to change as we evolve to a new level of sustained excellence? a. Bright engineers challenged to solve the problem versus having the vision to take the utility to the next level. More of a chug and plug, no discharge violation culture, regulatory compliance is focus. Next level: We need to be leaders in energy, resource conservation and recovery that include compliance and greenhouse gases. b. Break down silos in the organization; add community leadership to core values Topic: Strategic Imperatives 1. Do we agree based on the interviews, discussions with the GM, consultants that the key focus areas (core matters) we need to address as a District fall into the falling categories or goal areas perhaps? a. Board Committee Process b. Organizational Communication c. Operational Resilience d. Fiscal Sustainability e. Human Resources f. Utility of the Future g. External Relationships and Engagement 2. Thoughts? a. Can we have each Board member rate these form 1 to 7. And see what the importance is then? Not sure 1 think Organizational Communication is important for the workshop — leave it to individual board member to work preferred communication approach with GM. Somewhere need to discuss broad performance metrics and performance plan for the GM along with evaluation process for the GM. This may be post workshop but does not need to be discussed or agreed in the near term. b. My thinking for this order is that we need to understand what we are up against (operational resilience) first. Then determine how are key (and most expensive) resource (people) fit in. Then what does all this mean from a financial perspective. Once we understand these issues, 1 think a discussion of Board Committees would be more meaningful. If we can get through these four items, I would consider the workshop a success. 1 do not want to play down the importance of other imperatives but they have less strategic importance to me at this time. c. I really like this approach and flow from Operations to Finance decisions, etc. d. 1 am comfortable with topics and flow. e. 1 am comfortable with flow of agenda and want to stick to it with times and focus areas and not get lost in the weeds. We need to talk at the strategic level on these subjects focusing on the determining "the ends" and leave "the means" to our GM and his team. Topic: Questions to address by strategic imperatives? 1. Board Committees a. Should we consolidate our committees to improve efficiency, effectiveness and eliminate redundancy? If so, what makes sense? i. Yes, willing to revisit ii. Yes, let's discuss iii. 3 committees (Planning, Finance /Admin, Legislative /HR) Page 13 iv. Yes, integrate enterprise and environment together. What is outreach committee? We have not a meeting for 10 months b. Should we evaluate the terms for the committees? i. Yes ii. Yes iii. Yes c. Should we establish charters for the committees? i. Yes, bring copies of charters to the workshops ii. Yes iii. Yes d. How frequent should we hold our meetings? i. Be sure to send out information well ahead of the meeting so we can process ii. Depends. Can't set firm schedules for finance and capital; need discussion of role of Board and staff in professional associations. iii. Meet once per month; possibly have sub - committees in between. 2. Organizational Communication a. What does the Board prefer in terms of the best communication model with the GM based on needs and preferences of eaSBoard member? i. Individually handled ii. Like the process Roger has adopted meeting individually with each BOD member iii. This item should be between the GM and each Board member. I think Roger is on the right track with his monthly Board member meetings 1:1 iv. Will vary by board member need v. Current model is fine b. What steps should we take to improve our communication with the external public we serve? What is working well? What can be even better? I. This item belongs under external relations; Board should also develop performance criteria for the GM and clearly define what the expectations are. ii. Avoid last minute distribution of information to Board; more time needed information. iii. Must discuss local area contacts and relationships but may not be as high a priority for this workshop. iv. Need to ensure we follow the chain of command when Board decides to delegate to staff directly. GM should always be in the loop; code of conduct should be followed to ensure right signals and directions are followed by staff. 3. Operational Resilience a. What are the key infrastructure needs that we need to address in the next 5 years? L Age of facility; changing expectations ii. Should we be a leader in developing and providing new technologies appropriate to the District? iii. We need to establish a strong asset management approach to replacement rather than a very flat approach as current. Page 14 b. What make sense in terms of an effective asset management system? i. Agree on concept we need one ii. Agree on concept we need one iii. Comprehensive across all departments, divisions, etc. Highest priority and need a team to do this not just one person, separate and distinct from their departments. c. What should our key program focus areas be in the next five years? i. Follow Standard of care protocols; resource recovery programs ii. Nutrients, incineration; mechanical systems updates; electrical need updates; age of plant and appropriate maintenance improvements; part of utility of the future with potential in methane gas; nitrification iii. Getting the capital program under control and with a strong asset management approach to evaluation of projects and priorities. Consider use of outside consultants especially give current overhead mark -ups which will be greater in the future. d. What should our priorities be in the areas of technology needs for the District? i. Important, should be discussed ii. Very good, we need to communicate more with social media and technology. iii. Evaluate capital investments in new technology 4. Fiscal Sustainability a. Should we consider a cost of service model study to calibrate our funding, budgetary needs in the next five years and possible rate structure considerations? (which will include: 5 yr Financial Plan – 0 &M and CIP; Debt Service, Cost Allocation, and District Policies) i. Agree, good idea to do this study. How do we measure sustainability? Is it the EPA test? Toleration levels? Ratios to dollars spent? ii. Agree a study is appropriate; devote resources to key issues like infrastructure investment, control cost of benefits. iii. Yes and this should also include a staffing evaluation. b. What strategy should we consider to deal with the unfunded liability issues we are facing in the near term? L This must drive our financial plan not capital or salaries and benefits —this is the result of poor employee recognition and the public outcry over these benefits. Redo the capital program to deal with this large financial requirement. c. Should the District consider a formal Reserve Policy? (Purpose, who does it, pros and cons). L Yes ii. Yes iii. Yes iv. Yes, absolutely d. Other thoughts? L How do we deal with the Concord Naval Weapons Center? Page I5 5. Human Resources a. What role should the Board play in helping shape the structure and organizational design of the organization? What level of engagement should the Board have as it pertains to personnel issues? i. Board needs to understand the impact of their policies and implications; okay on organizational structure; who fills boxes is GM role. ii. GM manages the process. Board sets a policy, that is: hire and retain the best people and leave the means to the GM. iii. High level on leadership and leadership development strategy as an organizational philosophy only; as it pertains to personnel issues as defined by the various MOUs; this is the GMs and support staff's primary job. b. What model should we consider to develop our workforce and plan for succession? i. GM role ii. Not sure how to answer but we do need a plan. Need a strong leadership development program and great hires at the management level. c. What considerations are important as it pertains to our total rewards systems for the district (compensation levels, short and long term benefits, other perks)? i. Need to evaluate our total compensation system; right now we have very high overhead ahead of many benchmarks -86 cents on every dollar to benefits? d. Establishing a more reasonable compensation program that does not have benefits costs higher than total salaries. e. Other? i. What type of relationship does the Board want to promote with employees? 6. Utility of the Future a. What is our general strategy to deal with the recycled water issue? What role should our partnering agencies play in the collaboration? i. Zero discharge ii. Separate enterprise fund and develop stronger relationship with the CCWD b. Thoughts on resource recovery, energy, sustainability and other environmental stewardship imperatives? What should our focus area be in light of our resource limitations and mission of the District? i. Do we have limitations? What are they? ii. Collaborate with other agencies on resource recovery systems; other water districts need to lead and step up. iii. We need to have a strong innovation view of the future and move away from the traditional steel and concrete approach to the utility to add new and innovative revenue sources to utilize our available resources to the maximum extent possible before disposal. We need to consider renaming the District and move away from the old recognized name with a name that better suits the future District role in our service area. 7. External Relationships a. What can we do better? i. Discuss organizational communication issue in this section ii. We should survey our key stakeholders every 3 years; community survey of sorts iii. Stronger and regular contact with local officials at all levels. Regular outreach & updates to elected officials of what we are doing —like the Mayor's conferences. Let's get out and meet these officials especially state /federal legislators b. What should the political profile be of the District? Page 16 i. Neutral —our profile is that we do a good job, offer reasonable rates, meet regulatory requirements, etc. ii. Much higher than it currently is —to project driven General Comments and Observations Based on Review of the Data? Prior to the meeting, review the observations of the Board members by question. Where are we in alignment? Where are the opportunities for further discussion? Other thoughts to consider?