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HomeMy WebLinkAbout07.a.1)a) Strategic Plan-FY 2015-16 Summary of Achievements 16 Fiscal0 Strategic Planeport S U M MARY of ACH I EVE M E NT*M-01� Central Contra Costa Sanitary District STRATEGIC PLAN FY 2014- 15 through FY 2015- 16 r • _ � 4 «� Central Contra Costa Sanitary District Message from the General Manager The Management Team and staff of Central Contra Costa Sanitary District are proud to have completed the second year of our two-year Strategic Plan. The Fiscal Year (FY) 2014-15 through FY 2015-16 Strategic Plan established direction for the District and drew upon the six Goals adopted by our Board of Directors and the Effective Utility Management (EUM) framework. Each Initiative was aligned with our Goals and one or more of the ten EUM Attributes. This approached ensured that the District's energies and resources were focused on areas critical to our success. The Strategic Plan and the District focused on product quality and customer service; financial viability; leadership development; operational sustainability; and the reliability of District infrastructure. The past two years have been successful ones, as the District has been able to meet the Goals set out in the Strategic Plan and continue to be a leader in the delivery of wastewater and recycled water services. Some of the highlights over the past year include continuing to achieve 18 years of total compliance with our wastewater discharge permit and reducing sanitary sewer overflows to 2.83 spills per 100 miles of pipeline (compared to a Bay Area average of 5.5 spills per 100 miles); streamlining the budget process and documents to make them more user friendly; addressing unfunded liabilities by paying an additional $2.5 million in pension contributions; launching a Supervisor Academy and Mentorship Program; providing more than 12 million gallons of recycled water to customers; implementing the Central San Academy to educate our customers; and increasing our outreach program by adding social media. As we move forward with our new FY 2016-18 Strategic Plan, we will continue with our commitment to the public and our customers to strive for excellence on a daily basis and to put our values of People, Community, Principles, Leadership, and Commitment first to provide the quality service you know and expect from the District. Roger S. Bailey General Manager Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Overview of the Mission, Vision, Values and Goals of the District The FYs 2014-16 Strategic Plan consists of six Goals. Each of these Goals has corresponding Strategies and Initiatives that are focused on completing the District's Mission and addressing challenges and opportunities on the horizon. This Strategic Plan has enabled the District to continue to be an industry leader in the collection and treatment of wastewater and the delivery of recycled water. In addition to the Initiatives, Key Performance Indicators are tracked to evaluate the factors that are critical to the success of the Strategies. Effective Utility Management The Effective Utility Management (EUM)framework is regarded as the industry standard for strategic planning and performance metrics monitoring. The EUM framework consists of ten Attributes that describe desired outcomes that are applicable to wastewater utilities. The EUM served as the framework for developing the Initiatives, and the District's Strategic Plan reflects the structure laid out by the EUM. By design, the Initiatives are aligned with our Goals and one or more of the ten EUM Attributes. This helps to ensure that the District's priorities are in line with best management practices. In 2015, the EUM Steering Committee met to review the current EUM Attributes in light of the shifts in the context in which the water sector operates. These shifts in technology, policy, society, and the natural environment affect both the day-to-day operations of water sector utilities and planning efforts on a long-term scale. As a result, a recommendation was made to maintain the structure of the ten EUM Attributes with modifications in their description to reflect the changes in the operating context for water sector utilities. The modified EUM Attributes are as follows: ➢ Product Quality ➢ Customer Satisfaction ➢ Employee and Leadership Development ➢ Operational Optimization ➢ Financial Viability ➢ Infrastructure Strategy and Performance ➢ Enterprise Resiliency ➢ Community Sustainability ➢ Water Resource Sustainability ➢ Stakeholder Understanding and Support A summary of the Goals and Strategies and their alignment with the EUM Attributes follows. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements EUM Attribute Goal 1 — Meet Strive to Achieve 100 Percent Permit Compliance Product Quality, Regulatory in Air, Water, Land and Other Regulations Stakeholder Understanding Requirements for the and Support Good of the Strive to Reduce the Number of Sanitary Sewer Customer Satisfaction, Community and Overflows by Continuing Best Management Infrastructure Strategy and Environment Practices Performance Maintain a Fair and Equitable Rate Structure Financial Viability Based on Cost-of-Service Study Results Goal 2— Ensure Address Unfunded Liability, Minimizing it in the Financial Viability Financial Stability Future Implement Prudent Risk Management Procedures Enterprise Resiliency to Minimize Exposure to Risk Ensure Appropriate Staffing Levels Employee and Leadership Development Goal 3— Develop our Develop and Implement District-focused Employee and Leadership Human Capital Leadership Development Program Development Resources Provide Appropriate Coaching, Mentoring and Employee and Leadership Development Resources for Staff to be Successful Development in Current and Future Positions Use Sustainable Practices that Minimize Waste, Community Sustainability Maximize Resources, Protect the Ratepayer, Improve the Community, and Embrace Technology Goal 4- Be a Leader Collaborate with Regional Water and Wastewater Water Resource in the Wastewater Agencies to Augment the Region's Water Supply Sustainability Industry While Expanding Accession to Recycled Water for District Customers Complete Information Technology Master Plan Operational Optimization Integration Throughout all District Operations Make a Concerted Effort to Understand Customer Customer Satisfaction Expectations and Degree of Satisfaction with District Services Increase District Interaction with Local, State and Stakeholder Understanding Goal 5— Provide Federal Officials and Support Exceptional Customer Service Develop a Business Plan, Integrating and Customer Satisfaction Prioritizing Initiatives Identified in the Strategic Plan Continue Emergency Operations and Business Enterprise Resiliency Continuity Preparation Throughout the District to Best Respond in the Event of a Catastrophe Establish an Asset Management Program Infrastructure Strategy and Performance Update the Capital Improvement Program Annually Infrastructure Strategy and Goal 6— Maintain a Through Prioritization, Risk Analysis While Performance Reliable Wastewater Focusing on the Sustainability of Customer Infrastructure Service, Environmental Needs and Economic Demands Increase Enforcement of Overflow Protection Operational Optimization Device Ordinance Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Initiative Achievement Summary The following provides a brief description of the level of achievement for each of the Initiatives and the factors that contributed to their achievement. Attachment No. 1 summarizes the status of each of the Key Performance Indicators. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Goal 1 Meet Regulatory Requirements for the Good of the Community and Environment Strategy 1: Strive to Achieve 100 Percent Permit Compliance in Air, Water, Land and Other Regulations Meet Existing and Future Requirements for Regulatory Compliance, Energy Efficiency, and Infrastructure Sustainability Achievement: This Initiative is continuously ongoing. The District continues to maintain operations to ensure compliance with all permit requirements. The District met all requirements of our National Pollutant Discharge Elimination System Permit and Title 22 of the California Code of Regulations related to recycled water. Under the Clean Air Act Title V Air Permit, the District received two Notice of Violations. The first violation in April 2016 was due to excess carbon monoxide emissions on the cogeneration turbine. The second violation in May 2016 was due to a failure to request breakdown relief in a timely manner following the opening of the emergency bypass damper on the furnace. Regulatory Compliance and Operations staff review each violation to evaluate and implement changes in operations and processes, as needed, to mitigate the potential for future violations. The District is continuing to work with Carollo Engineers to finalize the Comprehensive Wastewater Master Plan to address future operational and regulatory requirements. Collaborate with Sister Agencies and Industry Associations to Monitor Trends in Regulatory Changes Achievement: This Initiative is continuously ongoing. The District has staff that actively participates in local, state and national organizations such as the National Association of Clean Water Agencies; Water Environment Federation; California Association of Sanitation Agencies; California Water Environment Association; and Bay Area Clean Water Agencies. Staff is involved with several committees, either chairing or participating on the following committees: ➢ Air Issues and Regulations Committee ➢ Bay Area Pollution Prevention Group ➢ Bay Area Maintenance Information Sharing Group ➢ Biosolids Committee ➢ Collection Systems Committee ➢ Laboratory Committee ➢ Permits Committee ➢ Recycled Water Committee ➢ Pretreatment Committee ➢ State Legislative Committee ➢ California Water Environment Association —San Francisco Bay Section Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Staff is also involved with the following associations: ➢ Municipal Management Association of Northern California ➢ California Association of Environmental Professionals ➢ California Hazardous Materials Investigators Association ➢ Northern California Pipe Users Group ➢ California Land Surveyors Association ➢ Household Hazardous Waste Information Exchange ➢ California Product Stewardship Council ➢ National Hazardous Materials Management Association Actively Manage Greenhouse Gas Emissions in the Most Cost Effective and Environmentally Responsible Manner Achievement: This Initiative is continuously ongoing. Regulatory Compliance staff works closely with Operations staff to develop operational strategies and monitors landfill gas, natural gas, and Pacific Gas and Electric import usage on a monthly basis to ensure that non-biogenic greenhouse gas emissions produced at the Treatment Plant remain under the annual target level of 25,000 metric tons of carbon dioxide equivalent. In Calendar Year 2015, the Treatment Plant produced 23,142 metric tons of carbon dioxide equivalent of non-biogenic greenhouse gas emissions. Strategy 2: Strive to Reduce the Number of Sanitary Sewer Overflows by Continuing Best Management Practices Continue the Seven-Year, System-Wide Closed Circuit Television Program Achievement: This Initiative is continuously ongoing. The goal of the seven-year program is to televise all sewers on average of once every seven years. This requires that at least 200 miles of sewers be televised each year. In FY 2015-16, 201 miles were televised; 61 miles of which were televised by District staff and 140 miles of which were televised by a contractor. Establish Defined Cleaning Cycles on a Yearly Basis Achievement: This Initiative was met. The Collection System Operations Division has defined cleaning schedules for sewer segments. The cleaning schedules are reviewed bi-monthly, and adjustments are made on an as-needed basis. The internal goal is to clean a minimum of 800 miles of sewers a year. In FY 2015-16, 879 miles were cleaned. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements GOAL 2 ENSURE FINANCIAL STABILITY Strategy 1: Maintain a Fair and Equitable Rate Structure Based on Cost-of- Service Study Results Conduct Cost-of-Service Study and Development of Updated Forecasting and Ratemaking Model Achievement: This Initiative was met. Raftelis Consulting Services completed a comprehensive Cost-of-Service Study. The purpose of the Cost-of-Service Study was to independently assess and evaluate the District's existing wastewater rates to provide a fair and reasonable rate structure and ensure that there is a proportionate recovery of costs from various customer classes. On June 4, 2015, the Board of Directors adopted the rate structure and associated rates adjustments recommended in the Cost-of-Service Study. Staff is currently working with Raftelis Consulting Services on tailoring the model to suit the District's needs. Meet Revenue Requirements Achievement: This Initiative was met. The rate adjustment adopted by the Board of Directors on June 4, 2015, for FY 2014-15 and FY 2015-16 fully meet the revenue requirements for the FY 2016-17 Operations and Maintenance Fund. The revenue requirements for the Capital Project Fund will be met through a combination of the rates adopted and Reserve Funds. The rate model assumes replenishing the Reserve Funds over the next three years, if not sooner. Adopt Reserves Policy for the District Achievement: This Initiative was met. The Reserves Policy includes target reserves and was adopted by the Board of Directors in September 2015. Adopt Debt Management Policy Achievement: This Initiative is in progress. Staff is in the process of surveying other District policies and working with the District's financial adviser from Public Financial Management to submit a policy for consideration to the Administration Committee. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Strategy 2: Address Unfunded Liability, Minimizing it in the Future Monitor Actuarial Assumptions Used to Determine Unfunded Liabilities Achievement: This Initiative was met. In August 2015, the Finance Committee reviewed the December 31, 2014, Contra Costa County Employees' Retirement Association Actuarial Valuation and the Contra Costa County Employees' Retirement Association Governmental Accounting Standards Board 67 Report. In March 2016, John Bartel of Bartel Associates, LLC presented recommendations to the Board of Directors regarding funding options and changes to the current assumptions for future payments towards the unfunded liabilities in both pensions and retiree healthcare. Develop Presentations for the Board of Directors, Staff, Stakeholders and the Public Detailing the Unfunded Liability Achievement: This Initiative was met. The Finance Division presented information as part of the FY 2016-17 Board of Directors Budget Workshop. In FY 2015-16, additional footnotes were added to the Annual Financial Statements for implementation of Governmental Accounting Standards Board (GASB) GASB 68, "Accounting and Financial Reporting of Pensions." GASB 68 required government agencies to recognize the entire net pension liability and a more comprehensive measure of pension expense. Strategy 3: Implement Prudent Risk Management Procedures to Minimize Exposure to Risk Reduce/Control Costs of Liability Claims and Litigation Achievement: This Initiative is continuously ongoing. During FY 2015-16, staff updated the indemnity language in the District project specifications and resolved two challenging claims before they resulted in litigation. Establish Target Reserves for Self-Insurance Achievement: This Initiative was met. The Board of Directors adopted a reserve policy to fund GASB-10 self-insured losses at three times the District's Self Insured Retention. With a current retention of$500,000, this fund now has a $1.5 million reserve. The reserve policy also created an Emergency Fund of$5 million to pay for risk management expenses, non-GASB-10 self- insured losses and uninsured emergency response costs during a disaster. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Evaluate and Monitor the District's Total Cost of Risk Achievement: This Initiative was met. The Total Cost of Risk includes the cost of commercial insurance and self-funded insurance methods; the amounts paid and reserved for claims and litigated matters funded through self-insurance; and personnel and other Operation and Maintenance expenses for the Safety and Risk Management Divisions. The Total Cost of Risk is reduced by the amount of any recoveries; reserve reductions for prior years; investment income from the Self-Insurance Funds; proceeds collected from any first party insured losses; and any dividends from our insurance pool. For FY 2015-16, the District's Total Cost of Risk was $3,116,705, a reduction of$628,433 from the previous year. This reduction resulted primarily from a decrease in claims payments during the fiscal year. Fiscal Year 2015-16 Strategic Plan Annual Report • Summary of Achievements Goal 3 Develop Our Human Capital Resources Strategy 1: Ensure Appropriate Staffing Levels Conduct Benchmarking Studies to Determine Appropriate Staffing Levels Achievement: This Initiative was met. A Staffing Needs Assessment Report was adopted by the Board of Directors in March 2015. The conclusion of the report was that the District is staffed appropriately. The Staffing Needs Assessment Report also recommended reviewing the number of unique job classifications used at the District. The District hired Koff&Associates and initiated a Job Classification Study in January 2016. This study is expected to be presented to the Board of Directors in December 2016. Develop Appropriate Strategies for Succession Planning Achievement: This Initiative is in progress. The District has established a Succession Planning Committee with the objective of developing a formal Succession Plan to maintain high service levels and prepare the District for future retirements and sudden changes to staffing. The Succession Planning Committee has identified key job functions; interviewed staff to identify potential gaps and staffing vulnerabilities; and is working on a plan to mitigate these organizational risks. The Succession Plan is expected to be presented to the Board of Directors in FY 2016-17. The Succession Planning Committee has also developed a template to use in developing Standard Operating Procedures for use in training staff on key functions. Identify and Address Internal Career "Gaps" in the Current Organization Structure Achievement: This Initiative is in progress. As stated above, the Succession Planning Committee is working on a plan to address potential gaps and staffing vulnerabilities. The Job Classification Study is also addressing this issue. Strategy 2: Develop and Implement District-Focused Leadership Development Program Identify Potential, Interested Future Leaders Seeking Career Development in the District for Targeted Leadership Training Achievement: This Initiative is continuously ongoing. In April 2016, the District initiated the Mentorship Program. Five mentees have been selected; and in FY 2016-17, they were paired with a management mentor and assigned a special project. The mentees will rotate and work with a different management mentor each quarter. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Develop District-Training/Leadership Academies (Management and Supervisory) Achievement: This Initiative was met. The first District-wide Leadership Academy was initiated in September 2014. Twenty-five employees participated and graduated on May 5, 2015. The first Supervisory Academy was initiated in September 2015. Twenty-five employees participated and graduated on April 8, 2016. A Leadership Academy or Management Academy will be held annually on an alternating basis. Develop District-Specific Training Programs/Session/Brown Bags Achievement: This Initiative is continuously ongoing. Human Resources provided Supervisory Training in Recruitment and Selection, Performance Management, and Labor Relations. Additionally, the District through its Employee Assistance Program has provided a series of ten Brown Bag Sessions on various Human Resource related topics. The sessions were open to all District staff. Develop and Support Mentoring and Cross-Training Programs Achievement: This Initiative is in progress. As stated above, the District initiated a Mentorship Program in April 2016. Also as part of the Succession Planning process, staff is developing Standard Operating Procedures for use in cross-training staff on key functions Strategy 3: Provide Appropriate Coaching, Mentoring and Development Resources for Staff to be Successful in Current and Future Positions Collaborate with Industry, Civic and Other Appropriate Associations for Training and Leadership Development Purposes Achievement: This Initiative is continuously ongoing. District staff has received and/or was provided training through the following associations in FY 2015-16: ➢ Bay Area Water/Wastewater Workforce Development ➢ Water Environment Federation ➢ California Water Environment Association ➢ NorCal Employment Relations Consortium ➢ Society of Environmental Toxicology and Chemistry ➢ American Chemical Society ➢ International Society of Automation ➢ Society for Protective Coatings ➢ California Public Employers Labor Relations Association ➢ Power Association of Northern California Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Goal 4 Be a Leader in the Wastewater Industry Strategy 1: Use Sustainable Practices that Minimize Waste, Maximize Resources, Protect the Ratepayer, Improve the Community, and Embrace Innovation Continue Cost Effective, Energy Self-Sufficiency Consistent with Best Industry Practices Achievement: This Initiative is continuously ongoing. Staff regularly monitors energy usage, and cogeneration and stream production with the goal to maximize the use of landfill gas versus natural gas and to minimize Pacific Gas and Electric import and demand charges. As part of the Comprehensive Wastewater Master Plan, the District will be reviewing our Energy Strategy and looking for opportunities to maximize energy generation. Continue Developing and Investing in Innovations, Technologies and Applied Research and Development Achievement: This Initiative is continuously ongoing. District staff created an Applied Research and Optimization Committee to brainstorm, screen, and coordinate applied research (pilot projects); Treatment Plant optimization opportunities; and to promote innovation and continuous improvement through sound and coordinated planning. The Applied Research and Optimization Committee is managed by the Planning and Applied Research Group and is comprised of employees representing Engineering, Plant Operations, and Plant Maintenance. The Committee and other staff are in the process of evaluating several potential process optimizations, evaluations, and considering potential future applied research pilot projects: ➢ Staff is investigating automated solids retention time control for the activated sludge biological process. Staff is currently installing solids probes to improve monitoring of the process and this will also enable potential automated solids retention time control. ➢ Staff is completing installation of an ultraviolet transmittance probe to improve monitoring of the secondary effluent quality which may also enable future optimization opportunities to reduce energy usage associated with ultraviolet disinfection. ➢ Staff is considering several pilots including a wet scrubber pilot for emission control for the furnaces; a lime reduction evaluation to reduce operations and maintenance costs and solids loading to the furnaces; innovative thermal solids handling processes; and nutrient removal technologies. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Strategy 2: Collaborate with Regional Water and Wastewater Agencies to Augment the Region's Water Supply while Expanding Access to Recycled Water for District Customers Establish Recycled Water Fill Station at the Household Hazardous Waste Collection Facility for District Customers Achievement: This Initiative was met. In FY 2015-16, more than 12 million gallons of recycled water was distributed through the Residential Fill Station, and more than 2,200 residential users were registered in the program. Develop Partnerships and Collaborations with Other Districts, as well as the Public and Private Agencies Achievement: This Initiative is continuously ongoing. The District provides landscape irrigation water that meets all the requirements of the State Water Resources Control Board's Division of Drinking Water and the San Francisco Regional Water Quality Control Board for unrestricted landscape irrigation. Approved uses include irrigation at schools; parks; playgrounds; median strips; and playing fields, as well as dust control and industrial process uses. District staff continues to engage staff at other water agencies. The District's General Manager regularly meets with the General Managers of the two major water purveyors in the District's service area — Contra Costa Water District and East Bay Municipal Utility District. As part of the District's Wholesale Recycled Water Opportunities Study, District staff met with the staff at Contra Costa Water District, East Bay Municipal Utility District, and Dublin San Ramon Services Area to discuss potential opportunities to develop cost-effective recycled water projects. Additionally, staff is exploring options to provide irrigation-quality recycled water to the future Concord Naval Weapons Station development and industrial-quality recycled water to the cooling towers at the Shell Refinery in the City of Martinez. In March 2016, the District's General Manager was appointed as the Bay Area Clean Water Agencies' representative to the Bay Area Regional Reliability Task Force — a group of stakeholders that will give input on the current study being conducted by the eight major Bay Area water purveyors to determine priorities for establishing reliable Bay Area water supplies in long-term droughts and during natural disasters. Investigate Satellite and Scalping Plants for Use by Public and Private Entities Achievement: This Initiative is in progress. In 2012, the District, East Bay Municipal Utility District and Diablo Country Club executed a Memorandum of Understanding to explore the feasibility of developing a Satellite Water Recycling Facility at Diablo Country Club that would divert wastewater flow from the District's nearby sewer line and treat it onsite to produce Title 22 recycled water for irrigating the golf course. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements In 2015, the District executed a new Memorandum of Understanding with the Diablo Country Club. Diablo Country Club is now at a stage where they are securing financing for the project and are seeking commitments from the District to confirm that the project remains viable. The Diablo Country Club is looking to use recycled water to meet up to 90 percent of their golf course irrigation demand. A Planning Agreement is being drafted in the Summer 2016 to allow the California Environmental Quality Act process to move forward on the proposed project. Also in 2015, the District and East Bay Municipal Utility District executed an initial Memorandum of Understanding with the Moraga Country Club to collaborate on determining the feasibility of a Satellite Water Recycling Facility for irrigating the golf course at Moraga Country Club. Establish the Available and Economical Capacity of our Existing Recycled Water Facilities (Under the Environmental Protection Agency Agreement) Achievement: This Initiative is in progress. As part of the development of the Comprehensive Wastewater Master Plan, the team will evaluate options for establishing the available and economical Treatment Plant capacity of the existing Filter Plant and Recycled Water Facilities. The Draft Comprehensive Wastewater Master Plan is expected to be presented to the Board of Directors in December 2016. Continue to Develop Zone 1 Achievement: This Initiative is continuously ongoing. The District completed the Concord Landscape Phase II Project this fiscal year. The Concord Landscape Phase II Project added 10 new retail recycled water customers in Zone 1, and three additional medians in the City of Concord. This connection work will deliver up to 0.3 million gallons of recycled water demand annually. Also included in the Concord Landscape Phase II Project was the conversion of existing recycled water meters from manual reading to a touch-read system to simplify the current practice of reading meters. The Concord Hilton Hotel was also connected to the Zone 1 project to provide the hotel with landscape irrigation water. In FY 2015-16, an automated recycled water truck fill station was constructed at the District's Kiewit Property to allow commercial customers to fill large water trucks. To encourage use of the District's recycled water for construction purposes, in December 2015, the Board of Directors voted to implement a one-year pilot to provide recycled water for truck filling at no cost to the customer. District staff completed feasibility evaluations for serving the landscape irrigation at Wild Birds Unlimited and John F. Kennedy University in the City of Pleasant Hill. Unfortunately, the cost to connect these sites did not meet the Board of Directors' 15-year pay-back policy, so they will not be pursued. Future connections anticipated in the Zone 1 area include Golden State Lumber on Diamond Boulevard in the City of Concord and the new DVC Plaza redevelopment on Contra Costa Boulevard in the City of Pleasant Hill. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Continue Maintenance and Operational Status of our Existing Recycled Water Facilities Achievement: This Initiative is continuously ongoing. Plant Maintenance staff continue to maintain the District's recycled water treatment facilities to ensure equipment and system reliability. The District's recycled water plant continues to meet peak summer demands. Collection System Operations personnel continue to maintain the District's 13-mile recycled water distribution system, including annual valve exercising, preventative maintenance, and documenting the distribution system to continue reliably delivering recycled water to customers. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Goal 5 Provide Exceptional Customer Service Strategy 1: Make a Concerted Effort to Understand Customer Expectations and Degree of Satisfaction with District Services Develop Residential and Business Surveys Achievement: This Initiative was met. Comprehensive customer research was completed that included two focus groups and a 401 person statistical survey of customers. This research was conducted to determine customer satisfaction; District name recognition; customer support for rate increases; customer support for the Comprehensive Wastewater Master Plan; and testing the best communication tools to use to provide information. Both the survey and focus groups were inclusive of all the District's service area cities where both collection and treatment services are provided. Determine How Survey Results will be Measured, Communicated and Acted On Achievement: This Initiative was met. The results from the comprehensive customer research will be used to create effective outreach plans for District-wide operations/services, potential rate adjustments and support for the Comprehensive Wastewater Master Plan. In addition, the results identified the District's low name recognition and served as the foundation for a District Brand Assessment Report that has been completed. This will provide the Board of Directors information that can be used to determine if a rebranding and/or renaming of the District is appropriate. Strategy 2: Increase District Interaction with Local, State and Federal Officials Give Annual or Semiannual Presentations for City Councils by Liaison Board of Directors Achievement: This Initiative is continuously ongoing. The General Manager and/or members of the Board of Directors have provided presentations to the following cities in FY 2015-16: ➢ President McGill made presentations to the Cities of Walnut Creek and Pleasant Hill ➢ Board Member Causey made a presentation to the Town of Danville ➢ Board Member Causey made a State of the District presentation at the San Ramon Community Center ➢ Board Member Williams made a presentation to the City of Orinda Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Hold Annual Meetings with General Manager and Board of Directors Liaison with Mayor, City Manager and Public Works Director of Each City and County Counterparts Achievement: This Initiative is continuously ongoing. The General Manager and/or members of the Board of Directors have attended the monthly Contra Costa Mayors' Conference; State of the City and community events hosted by service area cities; East Bay Leadership Council events; and met with staff from the following cities in FY 2015-16: ➢ City of Martinez ➢ City of Pleasant Hill (two presentations) ➢ City of Walnut Creek ➢ City of San Ramon ➢ Town of Danville ➢ City of Lafayette Keep State Legislators Representing the District's Service Area and all County Supervisors Informed of the District's Mission, Accomplishments, and Relevant Plans Achievement: This Initiative is continuously ongoing. The General Manager and/or members of the Board of Directors have attended Industrial Association of Contra Costa County meetings; State of the East Bay meeting and other events featuring the Board of Supervisors; and have met with the following legislators in FY 2015-16: ➢ President McGill and the General Manager met with Assembly Member Catharine Baker ➢ President McGill and the General Manager met with State Senator Steve Glazer ➢ President McGill and the General Manager met with Assemblywoman Bonilla's Chief of Staff Hold Annual Meetings between Board Members and Contra Costa Water District Achievement: This Initiative is continuously ongoing. The General Manager and/or members of the Board of Directors have met with the General Manager and Board Members of the Contra Costa Water District. Ms. Lisa Borba, Board President of the Contra Costa Water District, made a presentation to the District's Board of Directors in April 2016. Appoint Management Staff Member(s) as Liaison for Contra Costa Water District and East Bay Municipal Utility District Achievement: This Initiative was met. The General Manager has met several times with the General Managers of the Contra Costa Water District and East Bay Municipal Utility District. The Board of Directors has appointed President McGill as the liaison to the Contra Costa Water District and Board Member Nejedly as the liaison to the East Bay Municipal Utility District. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Strategy 3: Develop Business Plan, Integrating and Prioritizing Initiatives Identified in the Strategic Plan Investigate Viable Use of Social Media Outlets Achievement: This Initiative was met. The Board of Directors adopted a Social Media Policy and began implementation of District sponsored social media communication on the following sites: Twitter, Facebook, and YouTube. Upgrade Standard Specifications and Post to Website Achievement: This Initiative was met. Standard specifications and standard drawings were updated in 2014. These new documents are posted on the District website. Strategy 4: Continue Emergency Operations and Business Continuity Preparation throughout the District to Best Respond in the Event of a Catastrophe Perform Periodic Review of Business Continuity Plan Achievement: This Initiative is in progress. During FY 2015-16, Management and staff completed Phase I of the planning process which included updating the Mission Essential Functions, Mission Supporting Functions, and Recovery Time Objectives. Phase 11 of the planning process will begin in Fall 2017. Continue to Conduct Annual Emergency Operation Center Exercises Achievement: This Initiative is continuously ongoing. Originally scheduled for March 2016, the annual exercise was rescheduled for September 2016 to better coordinate with other local agencies' emergency management and training activities. Expand Training Program and Topics for Emergency Operation Center Staff Achievement: This Initiative was met. Topics and classes offered in FY 2015-16 included Emergency Finance and Disaster Recovery; Introduction to Emergency Management; Social Media for Natural Disaster Response and Recovery; and Emergency Operations Center Action Planning. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Collaborate with Local County and State Agencies Achievement: This Initiative is continuously ongoing. Staff continues to serve on the Operational Area Council, a group of emergency managers from jurisdictions across Contra Costa County. Staff also serves on the planning team for the County-wide Yellow Command Emergency Operations Center Activation Exercise. The District issued its Notice of Intent to Participate in the multi-jurisdictional planning team to prepare the five-year update to the Local Hazard Mitigation Plan. District staff has been selected to serve on the Steering Committee for the Local Hazard Mitigation Plan once the project begins. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Goal 6 Maintain a Reliable Wastewater Infrastructure Strategy 1: Establish an Asset Management Program Develop an Asset Management Policy for the District Achievement: This Initiative was met. Board Policy 015, Asset Management, was adopted on November 20, 2014. Perform a Strategic Assess Management Gap Analysis - Develop an Asset Management Implementation Plan Achievement: This Initiative was met. The final Asset Management Implementation Plan Summary Report was presented to the Engineering and Operations Committee on April 8, 2015. Use Computerized Maintenance Management System Enhancements to Align with Present and Future Asset Management Program Needs Achievement: This Initiative is in progress. A new Computerized Maintenance Management System using Cityworks® is being implemented with consultant assistance from Woolpert, Inc. The project will "go live" with Collection System Operations, recycled water distribution, and fleet assets in September 2016. The project will "go live" with the Treatment Plant, facilities, and Pumping Stations in December 2016. Use Condition Assessments and Predictive Failure Analysis to Replace/Rehabilitate Infrastructure at the Most Cost-Effective Time Achievement: This Initiative is continuously ongoing. Staff reviewed our existing Preventative Maintenance and Condition Based Maintenance Programs (oil analysis, infrared thermography, vibration analysis). Improvements were implemented, and the Program was expanded. For example, staff has incorporated electrical discharge testing into variable frequency drive preventative maintenance. This is used to detect electrical discharge in electric motor bearing in motors controlled by variable frequency drives that can cause electrical erosion, lubricant degradation and ultimately bearing failure. Additionally, staff has begun a program to install grounding rings in equipment where abnormal readings are found. Ultrasonic testing was also expanded on electrical equipment when performing thermography testing (both require equipment to be energized). Staff is actively engaged in the new Computer Maintenance Management System implementation and in performing condition assessments. This information will be incorporated in the development of the Capital Improvement Plan. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Strategy 2: Update the Capital Improvement Program Annually through Prioritization, Risk Analysis While Focusing on the Sustainability of Customer Service, Environmental Needs and Economic Demands Incorporate Asset Management Program in Developing a Capital Improvement Program Achievement: This Initiative is continuously ongoing. The District's FY 2016-17 Capital Improvement Budget for the Treatment Plant, Collection System, and Recycled Water Program include and incorporate projects identified in the Asset Management Program. The District is also working on the Comprehensive Wastewater Master Plan, which includes condition assessment of existing assets. Additional project needs identified as part of the condition assessment will be included in the Capital Improvement Plan. Strategy 3: Increase enforcement of Overflow Protection Device Ordinance Articles in Pipeline Newsletter, Press Releases and Possible Paid Advertising Announcing District Plans to the Enforce Overflow Protection Device Ordinance, Specifically the Consequences of Not Having an Overflow Protection Device Achievement: This Initiative is continuously ongoing. Articles about overflow protection devices have been included in every Pipeline newsletter for the past several years. These articles specifically mention the Ordinance and the consequences of not having an overflow protection device. In addition, the District produced an overflow protection device video featured on the District's website and promoted through social media channels. The District also provides an overflow protection device display at all attended community based events. Targeted Mailings in Areas Announcing the Consequences of Sewage Back-Ups into Homes (i.e., No Liability on the District's Part) Achievement: This Initiative is continuously ongoing. The District provides articles on sewer back-up prevention, pollution prevention, and the downsides to disposing fats/oils/grease (FOG) and wet wipes in the sewer system in every publication of the Pipeline newsletter. The Pipeline has been tested as part of the District's comprehensive customer research and has ranked the strongest tool for these messages. In addition, the District has produced several videos on Wipes Clog Pipes and FOG that are promoted on the District's website and through social media. The District provides similar information to property management companies for new renters and at community based events. Fiscal Year 2015-16 Strategic Plan Annual Report Summary of Achievements Special Discounts for the $50 Overflow Protection Device and/or Discounted Installation of Overflow Protection Devices by Licensed Plumbers Achievement: This Initiative is continuously ongoing. The District has required overflow protection devices be installed on all side sewer repairs since the year 2000. The program was modified to limit one overflow protection device discount per customer to limit abuse by some contractors taking overflow protection devices for use outside the District's service area. Staff sent targeted mailings to neighborhoods needing overflow protection devices. To date, minimal response has been received. Legend: GOAL 1 - Meet Regulatory Requirements Green = On Target Red = Short of Target Strategy/initiatives Key Performance Indicator Target FY Jul-Sep FY Oct-Dec FY Jan-Mar FY Apr-Jun Q1 Q2 Q3 Q4 Strategy 1 - Strive to achieve 100% permit compliance in air, water, land and other regulations. Initiatives: 1) Meet existing and future requirements for regulatory Deputy GM -Ann Sasaki compliance, energy efficiency, and infrastructure sustainability. A242) Collaborate with sister agencies and industry associations to monitor Air Quality - Title V Permit Violations Zero Violations See Note 1 trends in regulatory changes. 3) Actively manage greenhouse gas GHG - Metric Tons of GHG Emissions Below 25,000 Metric Tons (GHG) emissions in the most cost effective and environmentally responsible manner. Plant Operations Division Manager-Alan Weer NPDES - Permit Violations Zero Violations Recycled Water- Title 22 Permit Violations Zero Violations Environmental and Regulatory Compliance Manager- Lori Schectel 100% Compliance Meeting Reporting Develop Comprehensive Regulatory Matrix Requirements of Permits See Note 2 See Note 2 See Note 2 See Note 2 Director of Engineering and Technical Services - Jean-Marc Petit Implementation of Wastewater Master Plan Implement per Planned Schedule See Note 3 See Note 3 See Note 3 See Note 3 Strategy 2 - Strive to reduce the number of sewer overflows. Initiatives: 1) Continue seven-year, system-wide CCTV program. CSO Division Manager- Paul Seitz 2) Establish defined cleaning cycles on a yearly basis. Reduce SSO's - Spills per 100 Miles of Pipeline < 3.5 Spills per 100 Miles 0.6 1.46 2.33 3.14 Spilled vs. Treated - Gallons Spilled per MG < 5 Gallons Spilled/MG Treated per 25.2 5.95 Treated Quarter See Note 4 See Note 4 5.45 1.63 150 Miles per Year- Average 38 Lines TV - Miles of Sewer Lines Televised per Year Miles per Quarter 37 68 64.1 31.9 Lines cleaned - Miles of Sewer Lines Cleaned per 800 Miles per Year- Average 200 Year Miles per Quarter 206 200 230 243 Legend: GOAL 2 - Financial Stability Green = On Target Red = Short of Target Strategy/Initiatives Key Performance Indicator Target FY Jul-Sep FY Oct-Dec FY Jan-Mar FY Apr-Jun Q1 Q2 Q3 Q4 Strategy 1 - Maintain a fair and equitable rate structure based on cost of service study results. Initiatives: 1) Conduct cost of service study, and development of Finance Manager-Thea Vassallo updated forecasting and ratemaking model. 2) Meet revenue requirements. 3) Adopt reserves policy for the District. 4) Adopt Credit Rating with Standard & Poor's Maintain AAA Credit Rating debt management policy. Maintain Coverage Ratio of at Least Two Times (2 x). Calculated at the Debt Service Coverage Ratio End of the Fiscal Year Unqualified Audit Opinion - CAFR Obtain Unqualified Audit Opinion Obtain GFOA Certificate of GFOA Certificate of Achievement- CAFR Achievement Maintain Service Affordability-Annual Service Maintain Service Charge Close to Charge the Median of Bay Area Agencies Strategy 2 -Address unfunded liability, minimizing it in the future. Initiatives: 1) Monitor actuarial assumptions used to determine Finance Manager-Thea Vassallo unfunded liability. 2) Develop presentations for Board, staff, stakeholders and the public detailing the unfunded liability. CCCERA Unfunded Actuarial Accrued Liability Present to Board Finance (UAAL) Updates Committee Annually Monitor CCCERA Board of Directors Meetings to Attend CCCERA Board of Directors Keep Current on Changes in Actuarial Assumptions Meetings Present to Board Administration Bartel Presention OPEB Actuarial Updates Committee every Two Years Board Wkshp 3/17 Present to Board Finance Commitee Highmark 1st Highmark 2nd OPEB Trust Earnings Activity Updates Semi-Annually Presentation Presentation Strategy 3 - Implement prudent risk management procedures to minimize exposure to risk. Initiatives: 1) Reduce/control costs of liability claims and litigation. Risk Management Administrator-Shari Deutsch 2) Establish target reserves for the self-insurance fund. 3) Evaluate and monitor the District's total cost of risk. 4) Reduce the number Maintain Workers Compensation and cost of strain/sprain injuries. Workers Compensation Experience Modifier Modifier at 1.0 or Lower 0.64 0.64 0.64 0.64 Provide Modified Duty for at Least Return to Work Program - Modified Duty 75% of Occupational Injuries 100% 100% 95% 100% Maintain Average Cost at or below Average Cost per Overflow Claim $25,000 $885 $24,910 $21,544 $16,835 Evaluate and Implement Additional Cost-Effective Perform Annual Review by Fourth Risk Control and Self-Insurance Opportunities Quarter Legend: GOAL 3 - Develop Human Resources Green = On Target Red = Short of Target Strategy/Initiatives Key Performance Indicator Target FY Jul-Sep FY Oct-Dec FY Jan-Mar FY Apr-Jun Q1 Q2 Q3 Q4 Strategy 1 - Ensure appropriate staffing levels. Initiatives: 1) Conduct benchmarking studies to determine Human Resources Manager- Teji O'Malley appropriate staffing levels. 2) Develop appropriate strategies for succession planning. 3) Identify and address internal career"gaps" in Employee Promotions (Establish Trend) Percentage of Employees Promoted 2.2% (6) 1.1% (3) 0 7 the current organizational structure. Number of Job Descriptions Updates and Revisions to Job Descriptions Updated/Revised 1 2 6 3 At or Below Industry (Government) Employee Turnover Rate Average of 3.4% 1.1% (3) 1.5% (4) 2.21% (6) 0.3% (1) Average Time to Fill a Vacancy (from GM Approval to Hire) 60 Working Days or Less 1 66 53 69 83 Strategy 2 - Develop and implement District-focused leadership development programs. Initiatives: 1) Identify potential, interested future leaders seeking Human Resources Manager- Teji O'Malley career development in the District for targeted leadership training. 2) Develop District training/leadership academies (Management and Number of Employees Enrolled in Supervisors Supervisory). 3) Develop District-specific training Academy 20-25 Employees 25 programs/session/brown bags. 4) Develop and support mentoring Number of District Customer Service Trainings per and cross-training programs. Year Up to 3 per Year Strategy 3 - Provide appropriate coaching, mentoring and development resources for staff to be successful in current and future positions. Initiative: Collaborate with industry, civic, and other appropriate Human Resources Manager- Teji O'Malley associations for training and leadership development purposes (e.g. Bayworks). Number of Employees Utilizing Use of Tuition Reimbursement Tuition Reimbursement Dollars 1 0 6 6 $324 per FTE $323 per FTE $317 per FTE $319 per FTE Comparison of Budgeted vs. Actual Budgted /$197 Budgeted/$211 Budgeted/$208 Budgeted/$192 Annual Training Investment Training Investment per Employee per FTE Actual per FTE Actual per FTE Actual per FTE Actual Employees Active in Industry-Related Associations 35% of Employees Legend: GOAL 4 - Industry Leader Green = On Target Red = Short of Target ■ Strategy/Initiatives Key Perfomance Indicator Target FY Jul-Sep FY Oct-Dec FY Jan-Mar FY Apr-Jun Q1 Q2 Q3 Q4 Strategy 1 - Use sustainable practices that minimize waste, maximize resources, protect the ratepayer, improve the community, and embrace innovation. Initiatives: 1) Continue cost-effective self-sufficiency consistent Deputy GM -Ann Sasaki with best industry practices. 2) Continue developing and investing in innovations, technologies, and applied research (R&D). Produce Minimum of 18 M kWh of Electricity Annually Maximize Onsite Energy Generation (Reported as Rolling Average) 24.7 24.3 22.1 21.9 Director of Engineering and Technical Services - Jean-Marc Petit Percentage of Dollars Invested in Investment in Research and Development (R&D) R&D Compared to Annual CIB See Note 1 See Note 1 See Note 1 See Note 1 Strategy 2 - Collaborate with regional water and wastewater agencies to augment the region's water supply while expanding access to recycled water for District customers. Initiatives: 1) Establish recycled water fill station at HHW for Director of Engineering and Technical Services - District customers. 2) Develop partnerships and collaborations with Jean-Marc Petit other districts, as well as public and private agencies. 3) Investigate satellite and scalping plants for use by public and 1,027 new 44 new 4 new 73 new private entities. Track Customer Participation at 2,047 (Total) 2,091 (Total) 2,095 (Total) 2,168 (Total) 4) Establish the available and economical capacity of our existing Customers Participation at Residential Recycled Recycled Water Fill Station Registered Registered Registered Registered recycled water facilities (under the EPA Agreement). 5) Continue to Water Fill Station Quarterly Users Users Users Users develop Zone-1. 6) Continue maintenance and operational status Gallons of Recycled Water Provided to Residential of our existing recycled water facilities. Customer Using the HHW Fill Station 700 Gallons —8 MG —1.7 MG —0.06 MG —2.4 MG BP-019 Drafted DCC Concept Ongoing and Presented Approved 3/3/16 Policy on Scalping Plants for Use of Recycled Develop Recycled Water Scalping Meetings with to Admin. BP-019 Approved Water Plant Policy DCC Committee 3/17/16 Completed Verify Capacity of Existing Recycled Water Facilities to be Included in Target Target Target Target Capacity of the Existing Recycled Water Facilities 2015-2016 Master Plan 06/2016 06/2016 06/2016 06/2016 Volume of Recycled Water Annual Recycled Water Deliveries to Customers Delivered to Customers per Year —89 MG -r26 MG —7 MG —67 MG Develop New Strategies for New Wholesale Develop Strategies for New Target Received Draft Final Report Working on Customers Wholesale Customers 12/2015 12/15/15 3/24/16 Phase 2 Report Legend: GOAL 4 - Industry Leader Green = On Target Red = Short of Target Strategy/initiatives Key Performance Indicator Target FY Jul-Sep FY Oct-Dec FY Jan-Mar FYApr-Jun Q2 Q3 Q4 Strategy 3 - Complete IT Maser Plan integration throughout all District operations. Initiatives: 1) Obtain Board approval of IT Master Plan. Information Technology Manager-John Huie 2) Include in IT Master Plan the business requirements to enable online transactions for permitting, payments, payroll and timecards Data Backup and Recovery Zero Lost Data Zero Lost Zero Lost Zero Lost along with other digital opportunities to improve effectiveness and System Security- Contract with Outside Security Complete, efficiency of service delivery. Consultant to Test Firewall Vulnerability Semi- Semi Annual Vulnerability Test Scheduled for Rescheduled Waiting for Annually Conducted Q3 for Q4 Vendor Report System Reliability and Continuity 99.5% Up-Time 100% Uptime 100% Uptime 100% Uptime Annual Internal Customer Survey Scheduled for Scheduled for Internal Customer Support Conducted Q4 Q4 Issue RFP for System Contracting Contracting Implementation of New Strategies for ERP System Requirements in FY 2015-2016 with Sungard with Sungard F—Legend: GOAL 5 - Provide Exceptional Customer Service Green = On Target Red = Short of Target Strategy/initiatives Key Performance Indicators Target FY Jul-Sep FY Oct-Dec FY Jan-Mar FY Apr-Jun Q1 Q2 Q3 Q4 Strategy 1 - Make a concerted effort to understand customer expectations and degree of satisfaction with District services. Initiatives: 1) Develop residential and business surveys. Communication Services and Intergovernmental 2) Determine how survey results will be measured, communicated Relations Manager- Emily Barnett and acted on. Customer Satisfaction with Construction Projects 70% and Higher Satisfaction Conduct Surveys of Customers Impacted by Construction Projects 80% of Customers Environmental Services Division Manager- Danea Gemmell Conduct Survey of Permit Counter Customers 100% of Customers CSO Division Manager- Paul Seitz Timely Response - Respond to Emergency Line Customers within 1 Hour(Call Back in Person or Other Timely Contact) 95% of the Time 100% 100% 100% 100% >=3.5 Rating on Customers' Conduct Survey of Customers' Emergency Calls Emergency Calls Survey 3.83 3.75 3.96 3.88% Strategy 2 - Increase District interaction with local, state, and federal officials. Initiatives: 1) Give annual or semi-annual presentations for City GM 1 Board of Directors Councils by liaison Board members. 2) Hold annual meetings with GM and Board liaison with Mayor, City Manager and Public Works Annual Meeting with Service Area Cities (Including Conduct One Annual Meeting with Director of each city and county counterparts. 3) Keep State Concord and Clayton) District Service Area Cities legislators representing the District's service area and all county Annual Meetings with State and Federal Conduct one Annual Meeting supervisors informed of the District's mission, accomplishments, and Representatives relevant plans. 4) Hold annual meetings between Board member and Contra Costa Water District. 5) Appoint Management Staff member(s) as liaison for Contra Costa Water District and EBMUD. Legend: GOAL 5 - Provide Exceptional Customer Service Green = On Target Red = Short of Target Strategy/Initiatives Key Performance Indicator kILTarget FY Jul-Sep FY Oct-Dec FY Jan-Mar FY Apr-Jun Q1 Q2 Q3 Q4 Strategy 3 - Develop business plan, integrating and prioritizing initiatives identified in the Strategic Plan. Initiatives: 1) Investigate viable use of social media outlets. Communication Services and Intergovernmental 2) Update standard specifications and post to website. Relations Manager- Emily Barnett Develop Social Media Communications Strategic Develop Strategic Plan by Fourth See Note 1 Plan Quarter Information Technology Manager-John Huie Develop Online Process for Permit Develop Online Process for Permit Applications Applications See Note 2 See Note 2 See Note 2 See Note 2 Strategy 4- Continue Emergency Operations and business continuity preparation throughout the District to best respond in the event of a catastrophe. Initiatives: 1) Perform periodic review of Business Continuity Plan. Risk Management Administrator-Shari Deutsch 2) Continue to conduct annual Emergency Operation Center (EOC) exercises. 3) Expand training programs and topics for EOC staff. 4) Conduct One Exercise per Year By Set for 9/2016 Collaborate with local County and State agencies. Annual Emergency Operations Center Drill Third Quarter Review and Update Business Review and Update Business Continuity Plan Continuity Plan Review and Update the Emergency Operations Plan Update Plan byThird Quarter Minor Update Conduct EOC Inventory and Supply Audits Annually, Restock as Needed Conduct Inventory by Fourth Quarter F Legend: GOAL 6 - Maintain Reliable Wastewater Infrastructure Green = On Target Red = Short of Target Strategy/Initiatives Key Performance Indicator Target FY Jul-Sep FY Oct-Dec FY Jan-Mar FY Apr-Jun Q1 Q2 Q3 Q4 Strategy 1 - Establish an asset management program. Initiatives: 1) Develop an asset management policy for the District. Senior Engineer- Dana Lawson 2) Perform a strategic asset management gap analysis. Develop an Asset Management (AM) Implementation Plan. 3) Use computerized Execute AM Implementation Plan AM Implementation Plan See Note 1 See Note 1 See Note 1 See Note 1 maintenance management system (CMMS) enhancements to align Implemented with present and future asset management program needs. 4) Use Implement a new CMMS software Implement a New CMMS Software See Note 2 See Note 2 See Note 2 See Note 2 condition assessments and predictive failure analysis to replace/rehabilitate infrastructure at the most cost-effective time. Plant Maintenance Division Manager- Neil Meyer Percentage of Preventative Maintenace (PM) 90% See Note 3 97% 97% 91 Planned and Scheduled Completed on Time 83% Percentage of Critical Assets Planned and See Note 3 94% 88 Scheduled Completed on Time (RIME Above 50) 90°�0 82% 92°�0 Implement Improvement Plan to all Three Existing Improvement Plan to all Three Existing Predictive Predictive Maintenance/Condition Based Maintenance/Condition Based See Note 4 See Note 4 See Note 4 See Note 4 Maintenance Programs and to New Ultrasound Program Maintenance Programs and to New Ultrasound Program is Complete Percentage of Regulatory Title V, PM Work Orders 95% See Note 3 100% 100% 100% Completed to Plan 82% Percentage of Safety Work Orders Completed on 95% 100% 100% 100% 100% Time Legend: GOAL 6 - Maintain Reliable Wastewater Infrastructure Green = On Target Red = Short of Target Strategy/Initiatives Key Perrformance Indicator Target FY Jul-Sep FY Oct-Dec FY Jan-Mar FY Apr-Jun Q1 Q2 Q3 Q4 Initiative: Incorporate Asset Management Program in developing CIP. Capital Projects Division Manager- Edgar Lopez Incorporate Wastewater/Recycled Incorporate Wastewater/Recyled Water Program in Water Program in CIP Associated CIP Associated with Asset Management with Asset Management Incorporation of Collection System Incorporation of Collection Systems Programing CIP Programing CIP Associated with Associated with Asset Management Asset Management Strategy 3- Increase enforcement of Overflow Protection Device (OPD) ordinance. Initiatives: 1) Articles in Pipeline newsletter, press releases and Communication Services and Intergovernmental possible paid advertising announcing District plans to enforce Relations Manager- Emily Barnett overflow protection device ordinance, specifically the consequences of not having an OPD. 2) Targeted mailings in areas announcing the Number of Articles Addressing OPDs Three Articles per Year See Note 5 consequences of sewage back-ups into homes (i.e., no liability on the District's part). 3) Special discounts for the $50 OPD and /or discounted installation of OPDs by licensed plumbers. NOTES 2015-2016 STRATEGIC PLAN Goal 1 -Meet Regulatory Requirements NOTE: 1 Fourth Quarter-The District received two Notice of Violations. The first violation in April 2016 was due to excess carbon monoxide emissions on the cogeneration turbine. The second violation in May 2016 was due to a failure to request breakdown relief in a timely manner following the opening of the emergency bypass damper on the furnace. NOTE:2 First Quarter-New regulatory matrix is currently being developed to track all current District permits across all departments. Second Quarter-Progress has been made developing regulatory matrix. Fourth Quarter-Completed and presented to the Board. NOTE:3 First Quarter-Comprehensive Wastewater Master Plan on target. Several technical memos are being prepared. Asset conditions,flows and loads,Treatment Plant capacity rating,alternative technology review,and hydraulics has been the primary focus during FY 2015-16. Second Quarter-Hydrodynamic model development is ongoing. Flow metering has been completed and data incorporated in the model. Board Workshop held on June 16,2016. NOTE:4 First Quarter-One event that was 63,131 gallons or 98%of the total gallons spilled. Second Quarter-One event that was 13,125 gallons or 78%of the total gallons spilled. Goal 4-Industry Leader NOTE: 1 First Quarter-Completed Zeolite Annamox Pilot. Second Quarter-No pilot projects implemented this quarter. Third and Fourth Quarters-Pilot studies being planned for next fiscal year for the Wet Scrubber,and a nutrient removal process,as well as an alternative solids handling. Goal 5-Provide Exceptional Customer Serivice NOTE: 1 Third Quarter-District-wide External and Internal Communications Plan completed. NOTE:2 First Quarter-IT is researching options to develop this process with the District's current software. Second Quarter-Staff working with Sungard to evaluate and implement solution. Third Quarter-Contract is in progress.Will be implemented in FY 2016-17. Goal 6-Infrastructure NOTE: 1 Plant Maintenance Division staff completed first pilot for Reliability Center Maintenance(RCM)on the centrifuge system and will complete a second(for training purposes)by December 2016. Updated tags for all Pumping Station assets. Developed map service with"features"for Treatment Plant, Pumping Stations,CSO,and general facility assets. Facilitated regular workshops with Plant Maintenance Division to update the planned maintenance program for migration into the new CMMS,including updating procedures in compliance with the new Standard Operating Procedure template. Responding to data requests for the Comprehensive Wastewater Master Plan specifically for development of the hydraulic model(InfoWorks)and the asset-integrity planning model(InfoMaster). NOTE:2 Go live in September 2016 for CSO and Fleet. Go live in December 2016 for Treatment Plant and Pumping Stations. NOTE:3 Challenges with existing CMMS System: A. The analysis and reporting tools with the existing system have many deficiencies. It is a very difficult task to monitor, measure,and report on various parameters that are integral to achieving the KPIs. There are many limitations on visibility of the data and those who can access the information without extensive experience and training. B. The existing systems data has many inconsistencies and lacks detail.The preventative maintenance(PM)target completion times are inconsistent and are being corrected as they are identified.Scheduling the work and processing the work orders is a tedious process. C. Quality Control/Quality Assurance(QC/QA)of the PM data is a work in progress. We expect to have training and QA/QC process issues corrected and back on target by FY 2015-16 Second/Third Quarter. NOTE:4 A. Incorporate new vibration analysis equipment in reoccurring PM procedures and not just repairs and new installations. Document inspections/exceptions. B. Incorporate new infrared(IR)equipment in the expanding IR Program to beyond electrical equipment to include mechanical equipment and furnace burner leaks and refractory issues. Completed formal training on IR for the Mechanical, Electrical, Buildings&Grounds,and Reliability Engineering teams. C. Install bulk oil racking and filtration system(in progress). D. Document use of ultrasonic equipment, Inspections/exceptions(steam traps,Service Air System). E. Document increased usage of advance diagnostics in PM program.Completed laser alignment training for the Mechanical Shop. NOTE: 5 Third Quarter-Produced a OPD educational video for customers which was highlighted through the District's social media networks. REVISIONS FROM 2014-2015 STRATEGIC PLAN Goal 1 -Meet Regulatory Requirements Strategy 1 Deleted KPI-Petit Industry Related Associations-Number of Employees with Active Committee Participation in Professional Associations(NACWA,WEF, CASA, BACWA,CWEA,etc.) Added KPI and Target-Schectel KPI -Develop Comprehensive Regulatory Matrix Target- 100%Compliance Meeting Reporting Requirements of Permits Goal 3-Develop Human Resources Strategy 1 Revised KPI and Target-O'Malley KPI Revised-Updates and Revisions to Job Descriptions Target Revised-Number of Updates and Revisions to Job Descriptions KPI Previous- Updates and Revisions to Job Descriptions in the Previous Three Years Target Previous-Number of Job Descriptions Updated/Revised(FY 2011-2012 to Present) Strategy 2 Deleted KPI-O'Malley Number of Employees Enrolled in Management Leadership Academy(Completed) Goal 4-Industry Leader Strategy 1 Revised KPI and Target-Sasaki KPI Revised-Maximize Onsite Energy Generation Target Revised-Produce Minimum of 18 MkWh of Electricity Annually(Reported as Rolling Average) KPI Previous-Energy Imports-2%Less Energy Compared to Previous Year Target Previous-Track Amount of Energy Produced Strategy 2 Deleted KPI-Petit Residential Fill Station at HHW(Completed) Strategy 3 Revised Target-Huie KPI Unchanged-Internal Customer Support Target Revised-Annual Internal Customer Survey Conducted Target Previous-Semi Annual Internal Customer Survey Conducted Deleted KPI-Huie Develop New Strategy and Implementation of IT Master Plan(Completed) Goal 5-Provide Exceptional Customer Service Strategy 1 Revised Target-Seitz KPI Unchanged-Conduct Survey of Customers'Emergency Calls Target Revised->=3.5 Rating on Customers'Emergency Calls Survey Target Previous- 100%of Customer Emergency Calls Strategy 2 Deleted KPI-GM/Human Resources Establish a Government Affairs Manager for the District(Completed) Strategy 4 Deleted KPIs-Deutsch Prepare and Submit Annual Hazard Mitigation Plan Report to FEMA(via CCCOES)(Completed) Update Cal WARN Inventory Database(Completed) Goal 6-Maintain Reliable Wastewater Infrastructure Strategy 1 Deleted KPI-GM/Board of Directors Adopt AM Policy(Completed) Deleted KPI-Lawson Complete the AM Gap Analysis as Part of the AM Report(Completed) Revised KPI and Target-Lawson KPI Revised-Execute AM Implementation Plan Target Revised-AM Implementation Plan Implemented KPI Previous-Adopt AM Implementation Plan Target Previous-Adopt AM Implemention Plan Deleted KPI-Seitz Percentage of all Work Orders on Linear Assets Tracked in CMMS(Completed) Revised KPI and Target-Meyer KPI Revised-Implement Improvement Plan to all Three Existing Predictive Maintenance/Condition Based Maintenance Programs and to New Ultrasound Program Target Revised-Improvement Plan to all Three Existing Predictive Mai ntenancelCondition Based Maintenance Programs and to New Ultrasound Program is Complete KPI Previous-Review all Three Existing Predictive Maintenance/Condition Based Maintenance Programs and Implement Improvements Target Previous-Review all Three Existing Predictive Maintenance/Condition Based Maintenance Programs and Develop Improvement Plan by Fourth Quarter Goal 6-Maintain Reliable Wastewater Infrastructure Strategy 2 Deleted KPI-Petit Implement CIP Prioritization System for each of the Four Programs(Completed) Strategy 3 Deleted KPI-Gemmell Number of Discounts per Year for OPDs