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Home My WebLink About06.a. (Handout) Cost of Service Pricing Objectives and Staffing Needs Assessment UpdateiZ/ CENTRAL CONTRA COSTA SANITARY DISTRICT Pricing Objectives and Staffing Update BOARD WORKSHOP/ AUGUST 14, 2014 �l Pricing Objectives Overview and Results Capacity Fees Discussion Staffing Update Wrap -up z PRICING OBJECTIVES Equitability (Cost of Service Based Allocations) Minimization of Customer Impacts The rate structure should ensure that each customer class is contributing equitably towards revenue requirements based upon the costs of providing service to each customer class. The rate structure should be developed such that adverse rate impacts on each customer class are minimized. Rate Stability The rate structure should minimize dramatic rate increases or decreases over the planning period. Affordability The rate structure should not overly burden low volume customers. Simple to The rate structure should be easy for District customers to understand, utilizing a Understand and moderate level of educational tools. In addition, the rate structure should be Explain able to be effectively maintained by District staff in future years. Ease of The rate structure should be compatible with District's billing system. In addition, Implementation the rate structure should allow for the continuation of existing management and system reports. Revenue Stability The rate structure should provide for a steady and predictable stream of revenues to the utility under varying conditions. Conservation The rate structure should encourage water conservation. 0 Weight Most Important = 4 � 1 Very Important = 3 Important = 2 Least Important = 1 Rating Rate Structures A+ has 4.3 point value 4 C- has 1.7 point value 5 Pricing Objectives Equitability /COS Based Allocations Revenue Stability Rate Stability Minimization of Customer Impacts Simple to Understand and Update Ease of Implementation Affordability Conservation 2 2 1 0 6 16 0 2 3 0 13 1 1 2 1 12 0 1 3 1 11 0 1 2 2 9 0 0 1 4 6 A 1 2 3 4 5 6 7 8 Equitability /COS Based Allocations B A- Most Important Revenue Stability A+ A+ Rate Stability A+ A+ Minimization of Customer Impacts A+ A- Very Important Simple to Understand and Update A+ A+ Ease of Implementation A+ A Important Afforda bi I ity C+ C+ Least Important Conservation C C Overall Scores 87.4 87.8 1 Equitability /COS Based Allocations A- C A- A 2 Most Important Revenue Stability C+ A+ C B- 3 Rate Stability B A B- B+ 4 Minimization of Customer Impacts A+ C A B- Important 5 Simpleto Understand and Update B+ C B+ B 6 Ease of Implementation A+ C- A+ A- Important 7 Affordability B+ C+ B+ B 8 Least Important Conservation "- C A A- Ove ra I I Scores 77.7 63.2 74.7 74.2 Alternative Sewer Rate Structure Residential Fixed Only (Current Structure) Fixed by Residential Classes (SFR /MFR /Mobile Homes) Non - Residential Fixed Only Variable Only (Current Structure *) Fixed and Variable *Current non - residential rates have minimum annual charge E ~~~ ' ^ ° ps __— --`—`-~- \ — � " m 10 What are Capacity Fees? One -time capital charges assessed against new development as a way to provide or cover a proportional share of the costs of capital facilities constructed or to be constructed for its use New users should pay their proportionate share to buy into the existing wastewater system 11 Government Code Section 66013 et seq, capacity fees must: Reflect the link between fees and benefits received by new customers Not exceed the proportional share of costs for providing service 12 New customers only pay an amount equal to the net investment already made by existing users, based on replacement cost less depreciation This approach is suited for agencies that have capacity in their system and are essentially close to build -out 0 0 0 13 New customers pay for additional capacity requirements, irrespective of the value of past investments made by existing customers This approach is best suited for growing communities where additional facilities are needed to accommodate growth • i • 14 Combination of Buy -In and Incremental Cost approaches based on capacity in current system and additional capacity needed 15 Original Cost Original Cost less Depreciation (OCLD) Replacement Cost Replacement Cost less Depreciation (RCLD) Commonly used method More defensible since replacement cost recovers the cost of replacing the capacity in current dollars and also accounts for depreciation of the system 16 Capacity fees are typically calculated based on $ /Equivalent Dwelling Unit (EDU) Residential customers typically equal 1 EDU Can differentiate between different types of residences, e.g. SFR, MFR, Mobile Home, Condos, etc. Non - residential customers strengths are compared to residential customers strengths to convert to an EDU basis 17 LU-0 AL JUL M& AUG ]&.SEP 60clowi • Employee Survey GS St-1-11-4y — DriGiRg Obje Aive -s M.49 4 -Hers • Recycled Water Policy Discussion • Staffing needs assessment Interviews NOV DECi J1--ml� AN • Present Benchmarking Plan • Offsite Financial Planning Workshop • Present Benchmarking Results • COS Study Workshop • Present COS Study Results • Discuss SNA Findings • Finalize COS Study • Prepare Draft Reports • Benchmarking Workshop • Validation of Interview Findings • Submit Final Study Reports • Rate Model Training and Manual 19 Our Message to Staff Your input is essential so that we can understand the challenges and help Central San be an innovative industry leader and a desirable and rewarding place to work. -- tnN lilt —.. y all A. Employee Driven B. Board driven C. Management driven D. Other 10 e� e'I" e� et a��J °r Jee oa�a e�� a 21 Strengthen and optimize: Organization -wide processes, resource allocation and structure (governance and administration) Engineering and operations department processes, resource allocation and structure Provide the means to meet emerging workforce support and succession management needs _ V : OX 7 Organizational Structure and Workflow Enhancement Considerations • The Foundation to Efficiently Support Present and Future Service Levels 11 Effective Balance of Horizontal (Division) and P Vertical (Department and Sectional) Elements Sufficient Staff Numbers to meet Business Needs, Required Skill Levels and Workforce Support "Like- with - Like" Services and Clear Functional Area Delineation Allow for Necessary Centralized and De- Centralized Business Functions and Processes Emerging Themes Becoming a Learning Organization • Continued education and training • Need for R &D • Opportunities for cross - training Organizational Strengthening • Workforce allocation • Information access • Organization and processes Future District Drivers • Recycled Water • Lateral Program? • CI P & UAAL lCulture J Values D J J Goals _<<CDntral Contra Costa Sanitary District Protening PuW[ Heobh and the Environment 1. What three words would you use to describe Central San's work vulture? Please use single words for each response. t 2 3 2. Since you've been at Central San, what socomplishmentrasklaward are you most proud of? 7. To what degree do you agree with the following statements. strongly Agra, My supervisor has a clear id.. of my daily work issues antl the ohatacles oN work group wemomea. I gel regular updates w the direction or the ag—st- and how n is doing. I here all the tools and equipment necessary to aids. myiob M an p un sll level. I am given the oppo —dy to prmide Input into solutions for Poblems a derelogng situations. Central San stef takes pride in the work they do and the service they iow , to their customers. Central San is actively working to improve the efficiency of its work practices. My work group uses pe&r —. measures is banch— its Gnerelly. my work group has the resources it needs to keep up whh our workload Please provide any comments in regards to the responses above. Neural O O O O v O O U � O L! 4. Please rank the following workplace attributes, with 1 being the most important to you an 5 being the least. • Advancement opportunities Continued training Performance Recognition Ample tools and resources •k ' Central Contra Costa Sanitary District 1. What three words would you use to describe Central San's work culture? Please use single words for each response. 2. Since you've been at Central San, what accomplishmentltasklaward are you most proud of? 0 3. Please rate the quality of the communication you receive at the various levels in the organization. Excellent _t Your work unit level Department manager level O Organization -wide O 4.1 get regular updates on the direction of the organization and how it is doing from... O My manager/supervisor O Break room notices 0 Company -wide emails Q Employee newsletter O The "water cooler" O Other rair Needs Improvement 27 5. To what degree do you agree with the following statements. Strongly Agree h,1y supervisor has a clear idea of my daily work issues and the obstacles my work group overcomes. I have all the tools technology and equipment necessary to perform my job at an optimal level I am given the opportunity to provide input into solutions for problems or developing situations Central San staff takes pride in the work they do and the service they provide to their customers Central San is actively working to improve the efficiency of its work practices h,9y work group uses performance measures to benchmark its performance Generally my work group has the resources it needs to keep up with our workload Agree Neutral U U U O O `vJ Disagree U r-, 0 U U U Strongly Disagree M 6. Of the workplace attributes listed below. please check the 3 that are most important to you. 7. Considering your highest ranked workplace attribute from the previous question, how well does Central San provide for this attribute? (,, Very well C� Decently well 0 rdeutral G 1 Jot -;ery well r` Unaddressed Wo Advancement opportunities F— IJeaningful xork Transparency Continued training CPerformance Recognition Open communication Ample tools and resources 7 Safety 7. Considering your highest ranked workplace attribute from the previous question, how well does Central San provide for this attribute? (,, Very well C� Decently well 0 rdeutral G 1 Jot -;ery well r` Unaddressed Wo 8. What are the two things that you would like to see changed to improve effectiveness and performance within your division? 9. What are the two things that you would like to see changed to improve effectiveness and performance for the organization as a whole. 10. Please use this area to share any ideas on how Central San can improve as an organization. Ell There are always areas of opportunity to improve. We do not look at individual performance and no one is "at fa u It." This is neither a time and motion study, nor a compensation study. This is all about looking for improvement opportunities to support organizational performance and make it easier to do work and /or reduce risk to the District and staff. 31