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HomeMy WebLinkAbout14.a. Receive FY 2016-17 Strategic Plan Annual Report-Summary of Achievements Page 1 of 40 Item 14.a. I Central Contra Costa Sanitary District September 7, 2017 TO: HONORABLE BOARD OF DIRECTORS FROM: ANN K. SASAKI, DEPUTY GENERAL MANAGER REVIEWED BY: ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE FISCAL YEAR 2016-17 STRATEGIC PLAN ANNUAL REPORT- SUMMARY OF ACHIEVEMENTS. REVIEWED BYADMINISTRATION COMMITTEE. Attached is Central Contra Costa Sanitary District's Fiscal Year 2016-17 Strategic Plan Annual Report- Summary of Achievements. The Administrative Committee reviewed the report on August 21, 2017. ATTACHMENTS: 1. FY 2016-17 Strategic Plan Annual Report-Summary of Achievements 2. PowerPoint Presentation September 7, 2017 Regular Board Meeting Agenda Packet- Page 203 of 294 Page 2 of 40 CENTRA CONT COST SANITARY DIST T j j FISCAL YEAR 2016- 17 STRATEGIC P ANNUAL REPORT SUMMARY OF w _ ACHIEVEMENTS f �' • 4 ep em er 7 egu ar oar ee ing gena aced=Ile2III Page 3 of 40 A MESSAGE FROM THE GENERAL MANAGER R art" On behalf of the Central Contra Costa Sanitary District (District), I am proud ' to present our accomplishments for Fiscal Year 2016-17 of our two-year Fiscal Year 2016-18 Strategic Plan. The Strategic Plan lays out the direction for the District and draws upon the six goals adopted by our Board of Directors and the Effective Utility Management framework. This approach has enabled the District to increase efficiencies, fulfill our mission, and continue in our role as stewards of the environment. The Plan includes 16 key strategies and 40 initiatives to address current and �[ future challenges, and key performance metrics related to each goal. This report provides an overview of the many achievements made by our dedicated and professional staff, who continually strive to uphold the District's Mission, Vision and Values. Some of the highlights over the past year include continuing to achieve 19 years of total compliance with our wastewater discharge permit and successfully renewing our National Pollutant Discharge Elimination System Permit; completing the Comprehensive Wastewater Master Plan; implementing new software and hardware to improve operational efficiency, including the use of mobile devices in the field; implementing treatment plant operational efficiencies; hosting a large- scale, award-winning 70th Anniversary Open House Event; and successfully completing the second Central San Academy. The District has built a strong culture of providing excellent service to our customers. We will continue with our commitment to the public and our customers to strive for excellence daily and to put our values of People, Community, Principles, and Leadership and Commitment first. As we move forward, we wish to acknowledge that these accomplishments would not be possible without the leadership and support of our Board of Directors and the continued support and confidence of our customers. September 7, 2017 Regular Board Meeting Agenda Packet- Page 205 of 294 Page 4 of 40 Overview of the Mission, Vision, Values, and Goals of the District The Fiscal Year (FY) 2016-18 Strategic Plan draws upon the work accomplished under previous Strategic Plans. Many of the goals and strategies have remained the same. However, the initiatives have been updated to move the District on a continuous path forward as we strive to optimize operations, streamline processes, and look for innovative technology and methods to manage and contain costs. The 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. In addition to the initiatives, key performance metrics are tracked to evaluate the factors that are critical to the success of the goals. Our Mission To protect public health and the environment Our Vision To be a high-performance organization that provides exceptional customer service and regulatory compliance at responsible rates Our Values • People o Value customers and employees o Respect each other o Work as a team o Community relationships o Celebrate our successes and learn from our challenges • Community o Value water sector partners o Foster excellent community relationships o Be open, transparent and accessible o Build partnerships o Understand service level expectations • Principles o Be truthful and honest o Be fair, kind and friendly o Take ownership and responsibility • Leadership and Commitment o Work effectively and efficiently o Promote a passionate and empowered workforce o Encourage continuous growth and development o Inspire dedication and top-quality results September 7, 2017 Regular Board Meeting Agenda Packet- Page 206 of 294 Page 5 of 40 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. The initiatives are aligned with our goals and one or more of the ten EUM attributes, ensuring that the District's priorities are in line with best management practices. Product Qua I ity FFECTIVE - . UTILITY o- Wio MANAGEMENT Community TEN KEY �Sustainability i. ATTRIBUTES �.- September 7, 2017 Regular Board Meeting Agenda Packet- Page 207 of 294 Page 6 of 40 The following is a summary of the goals and strategies and their alignment with the EUM attributes. Goal Strategy EUM Attribute Foster Customer Engagement and Customer Satisfaction Goal Awareness Operational Optimization Provide Exceptional Customer Satisfaction Customer Service Improve Interdepartmental Collaboration p p Employee and Leadership Development Product Quality Goal 2 Strive to Achieve 100% Permit Compliance Stakeholder Understanding and Strive to Meet in Air, Water, Land and Other Regulations Support Regulatory Community Sustainability Requirements Strive to Minimize the Number of Sanitary Infrastructure Strategy and Sewer Overflows Performance Goal 3 Conduct Long Range Financial Planning Financial Viability Be a Fiscally Sound and Effective Water Enterprise Resiliency Manage Costs Sector Utility Operational Optimization Ensure Adequate Staffing and Training to Employee and Leadership Meet Current and Future Operational Levels Development Goal 4 Employee and Leadership Develop and Retain Enhance Relationship with Employees and Development a Highly Trained Bargaining Units and Innovative g g Stakeholder Understanding and Workforce Support Meet or Exceed Industry Safety Standards Employee and Leadership Development Infrastructure Strategy and Manage Assets Optimally Throughout Their Performance Lifecycle Goal 5 Enterprise Resiliency Maintain a Reliable Facilitate Long-Term Capital Renewal and Infrastructure Strategy and Infrastructure Replacement Performance Protect District Personnel and Assets from Enterprise Resiliency Threats and Emergencies Augment the Region's Water Supply Water Resource Sustainability Goal 6 Embrace Evaluate Business Processes and Optimize Technology, Business Operations Operational Optimization Innovation, and I Reduce Reliance on Non-Renewable Energy Community Sustainability Environmental Sustainability Encourage the Review and Testing of Operational Optimization Promising and Leading Technology September 7, 2017 Regular Board Meeting Agenda Packet- Page 208 of 294 Page 7 of 40 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. Goal 1 Strategy 1 Provide Exceptional Foster Customer Engagement Customer Service and Awareness Invest in Business Process Changes and Technologies to Effectively Increase Access to District Information and Promote Customer Care, Convenience and Self-Service Achievement: This initiative is ongoing. The District installed a display monitor in the main lobby for customer information. The monitor provides a continuous presentation of information about the wastewater treatment process; plant and collection system maintenance; the Central San Academy; and awareness on the hazards of fats, oils and grease, flushable wipes, and pharmaceutical waste in the wastewater system. The District also actively engages customers through social r media including Facebook, Twitter, YouTube, and the Central San Blog to build customer awareness on issues of importance. j In the upcoming fiscal year, the District will be updating its " website with the goal of improving the customer experience; -� improving and facilitating communication of important business \ information; and delivering the information that our customers expect and want from the District. September 7, 2017 Regular Board Meeting Agenda Packet- Page 209 of 294 Page 8 of 40 Increase Customer Understanding and Support for Key Issues Facing the District Achievement: This initiative is ongoing. The District successfully completed the second Central San Academy, a six-week program which focuses on educating our customers on the mission of Central San, including curriculum that covered our infrastructure, future regulations, recycled water opportunities, budgeting, rates, and financing. The District also developed video public service announcements that focused on important Central San programs, operations, and pollution prevention messages reaching 34.8% of households in our service area (delivering the message to an estimated 113,000-137,000 viewers). Regarding capital improvements, the District provided compelling outreach and engagement for the Comprehensive Wastewater Master Plan (CWMP) and infrastructure improvements including holding three public workshops (two for residential customers and one for commercial customers) to discuss the CWMP recommendations, infrastructure improvements, financial outlook, and other District programs and services. The District also focused CWMP outreach in creative ways through presentations to city councils, taxpayer associations, televised broadcasts, Pipeline newsletter articles, community events and meetings. The District additionally grew educational outreach through our publications and programs. More than 4,500 students were reached through our Science, Technology, Engineering, and Mathematics Program, and pollution prevention and career development information. Build and Maintain Relationships with Federal, State and Local Elected Officials and Key Stakeholder Groups Achievement: This initiative is ongoing. Members of the Board of Directors and the General Manager met with mayors, city council members, and/or city managers within the District's service area. Members of the Board of Directors also spoke at council meetings in various cities providing updated information on the District. Additionally, Board of Director Members NOW throughout the year have met with Federal and State elected officials through member conferences in Sacramento and Washington, D.C. and in-District meetings to discuss regional water issues; legislation effecting the District; future infrastructure improvement plans; and other important issues. The District also hosted a large-scale, award-winning 70th Anniversary Open House event that brought over 1,000 customers and 20 elected officials to the District to learn more about programs, services, operations, and to take tours of the treatment plant and Household Hazardous Waste Collection Facility. September 7, 2017 Regular Board Meeting Agenda Packet- Page 210 of 294 Page 9 of 40 Provide High Quality Customer Service Achievement: This initiative is ongoing. The District takes considerable pride in the services that we provide to our customers, and we have built a strong culture of providing excellent service. Over the past year, Collection System Operations staff have arrived onsite to all emergency calls on average within 36 minutes; and for those calls, our customers rated our services 3.96 out of 4.0. On our capital improvement construction projects, we strive to minimize disruption to the public. On those projects, our customers have given us a satisfaction rating of 97%. At our Development Services permit counter, our customers had a satisfaction rating of 95%. Individual customers routinely write in to the District expressing appreciation for the level of respect and quality of service they receive. Annually, we provide our staff with customer service training. This past year, all employees were provided with training on the Roles and Responsibilities of Public Employees. Strategy 2 Improve Interdepartmental Collaboration Foster Employees' Understanding of District Operations and Their Role in Our Success Achievement: This initiative is ongoing. The District provides a monthly award-winning employee newsletter, the Lateral Connection, that helps connect important District initiatives with all employees. It also serves to empower employees to develop new processes and procedures to provide better service to internal and external customers. This is made possible by the amount of multi-departmental information shared in the employee newsletter. In the upcoming fiscal year, the District will be updating its internal intranet site. Our staff will benefit ,:,,:: d�n: ,,• J from the modernizing of the site by being able to more easily access District policies, procedures, Division information, and other documents related to ongoing projects. September 7, 2017 Regular Board Meeting Agenda Packet- Page 211 of 294 Page 10 of 40 Increase Internal Partnerships Achievement: This initiative is ongoing. The District has employed numerous multi-divisional teams to review critical projects. Examples of this coordination are the following projects: • Public Private Partnership for Development and Implementation of a Full-Scale Bioenergy Facility (Planning, Regulatory, Plant Operations, Plant Maintenance, Finance) • Solids Handling Facility Wet Scrubber Pilot Project (Planning, Engineering, Regulatory, Plant Operations, Plant Maintenance) • District-wide Vulnerability Assessment (Planning, Plant Operations, Finance, Risk Management, Information Technology) • Project Management Information System Procurement (Planning, Engineering, Finance, Information Technology) The District has also continued the Information Technology Leadership Committee, which is a multi-divisional team of employees involved in the review and analysis of information technology projects, processes and procedures. 7 , September 7, 2017 Regular Board Meeting Agenda Packet- Page 212 of 294 Page 11 of 40 How are we doing? Goal 1 — Provide Exceptional Customer Service Metri FY 2016-17 Target W'O!l Average onsite response time for collection system Less than 20 minutes 34.25 minutes emergency calls, during working hours Average onsite response time for collection system Less than 30 minutes 37.88 minutes emergency calls, after hours Average customer service At least 3.8 out of 4.0 rating for emergency calls 3.96 Average customer satisfaction o 970 rating on construction projects Greater than 95/o . /o 5 Average customer satisfaction rating on permit counter Greater than 95% 94.8% interactions Number of students served by Greater than 2,200 per year 2 797 our education programs Number of District employees attending annual customer At least 50% of all District staff 77.1% service training Number of participants on Greater than 563 treatment plant tours 150 participants per year Number of participants at Greater than 416 speaker bureau presentations 400 participants per year Number of students attending Greater than 36 Citizens Academy 30 participants per session September 7, 2017 Regular Board Meeting Agenda Packet- Page 213 of 294 Page 12 of 40 Goal Strategy 1 Strive to Achieve 100% Permit Strive to Meet Compliance in Air, Water, Land, Regulatory and Other Regulations Requirements Renew Treatment Plant National Pollutant Discharge Elimination System Permit which Expires on March 31, 2017 Achievement: This initiative was met. In April 2016, District staff established a permit application review team to successfully achieve renewal of the District's National Pollutant Discharge Elimination System (NPDES) Permit. Staff submitted a report of waste discharge to the San Francisco Bay Regional Water Quality Control Board on September 30, 2016. On April 12, 2017, the San Francisco Bay Regional Water Quality Control Board adopted the District's new NPDES Permit. The permit became effective on June 1, 2017 with an expiration date of May 31, 2022. Meet Existing Regulations and Plan for Future Regulations Achievement: This initiative is ongoing. The District continues to maintain operations to ensure compliance with all permit requirements. The District met all requirements of our NPDES Permit and completed 19 consecutive years of 100% compliance. The District also met all requirements of Title 22 of the California Code of Regulations related to recycled water. The Environmental and Regulatory Compliance Division staff developed and implemented a permit matrix to track all regulatory permits. The staff also provided an annual update on significant regulatory issues to the Real Estate, Environmental and Planning Committee in November 2016 and provides periodic updates as necessary. September 7, 2017 Regular Board Meeting Agenda Packet- Page 214 of 294 Page 13 of 40 Foster Relationships with Regulatory Agencies Achievement: This initiative is ongoing. District staff continues to foster positive working relationships with the San Francisco Bay Regional Water Quality Control Board, State Water Resources Control Board, Bay Area Air Quality Management District, United States Environmental Protection Agency, and other regulatory agencies through active participation in meetings, workshops and routine engagement. IFJ i R 1 ] # 9 IV' 1 Monitor and Track Proposed and Pending Legislation/Regulatory Changes That May Impact District Operations Achievement: This initiative is ongoing. Through active participation in professional associations and engagement with regulatory agencies, District staff continues to monitor proposed and pending legislation/regulatory changes and analyze potential impacts on the District's operations. Environmental and Regulatory Compliance Division staff has submitted comment letters to regulatory agencies and has appeared before regulatory agency boards to engage rule developers on issues that may have significant impacts. Actively Manage Greenhouse Gas Emissions in the Most Cost Effective and Responsible Manner Achievement: This initiative was met. The District successfully maintained the annual anthropogenic greenhouse gas (GHG) emissions below 25,000 metric tons for the calendar year 2016. The annual 2016 GHG inventory report was submitted to the California Air Resources Board on March 3, 2017. The Environmental and Regulatory Compliance Division staff issues internal monthly GHG emission inventory updates to ensure that operational strategies are aligned with the internal GHG emissions target. The 2015 Greenhouse Gas Inventory Summary and Verification Report was issued to internal staff in October 2016. September 7, 2017 Regular Board Meeting Agenda Packet- Page 215 of 294 Page 14 of 40 Strategy 2 Strive to Minimize the Number of Sanitary Sewer Overflows Complete the Collection System Scheduled Maintenance on Time and Optimize Cleaning Schedules to Improve Efficiencies Achievement: This initiative was met. The District continues to maintain the sewer collection system to minimize sewage stoppages and overflows. In the past year, the District has transitioned our computerized maintenance management system (CMMS) from Accela to Cityworks. With the new CMMS system, the District has also implemented paperless work orders. Staff in the field are using mobile devices to access work orders, past work history, maps, and videos. This has enabled staff to respond to overflows and stoppages more efficiently by having information more readily available. In FY 2016-17, 744 miles of sewer pipes were cleaned; and of those miles, 98.58% were cleaned on-time and on-schedule. Continue the Pipeline Condition Assessment and Cleaning Quality Assurance Program Using the System-Wide Closed-Circuit Televising Program Achievement: This initiative is ongoing. The District has a goal to televise all sewers on average once every seven years. In FY 2016-17, 195 miles of sewer pipes were televised; 59 miles were televised by District staff, and 136 miles were televised by a contractor. In addition to televising our sewers to assess their condition, a select number of sewer lines are also televised after they are cleaned to determine the efficiency of our cleaning operations. In FY 2016-17, 22 miles of sewers were televised for quality assurance purposed, and 94.34% had a passing rating. - Rol 'I Alii� IF September 7, 2017 Regular Board Meeting Agenda Packet- Page 216 of 294 Page 15 of 40 How are we doing? • . to Meet RegulatoryRequirements IF FY 2016-17 Target EWNPDES compliance Zero violations Zero violations Title V compliance Zero violations Zero violations Recycled Water Title 22 compliance Zero violations Zero violations Sanitary sewer overflows Less than 3.0 spills per 100 2.53 miles of pipeline Spills to public water Less than 3 g Percent of spills less than Greater than 95% o 500 gallons 88.55/o Pipeline cleaning schedules Greater than 95% completed on time 98.58% Pipeline cleaning quality On at least 3% of pipeline assurance/quality control cleaned on an annual basis 3% Pipeline cleaning quality assurance/quality control Greater than 98% 94.34% passing rate Annual source controls 100% inspections completed on time 100% September 7, 2017 Regular Board Meeting Agenda Packet- Page 217 of 294 Page 16 of 40 Goal 3 Strategy 1 Be a Fiscally Sound Conduct Long Range and Effective Water Financial Planning Sector Utility Ensure Rate Structure Is Consistent with Cost of Service Principles Achievement: This initiative is ongoing. The two-year rate structure adopted for FY 2017-18 and FY 2018-19 reflect the cost of service principles established in the 2015 Cost of Service Study. As part of the Mentorship Program, one of the mentee projects was to conduct a survey of mixed-use rate structures. This information will be reviewed by a consultant in the upcoming fiscal year to determine what, if any, modifications should be made to the District's rate structure. Mixed-use rate changes will be reviewed and any changes will be included in FY 2019-20 rate review. Improve the Application and Processing of Capacity Fees for Consistency Across User Classes Achievement: This initiative is ongoing. Staff reviewed 39 multi-use developments and identified changed uses. Where the usage has changed, staff is working on collecting these outstanding fees. Additionally, a consultant has been engaged to assist with assessing capacity fees for accessory dwelling units, patio dining, and mixed-use developments in FY 2017-18. Staff has developed a sampling plan for a sewer permit application audit and conducted a survey of 12 statewide wastewater agencies for capacity fee methodologies. The consultant will use this information in assessing our method of calculating capacity fees. r � 1 r_ - 11 September 7, 2017 Regular Board Meeting Agenda Packet- Page 218 of 294 Page 17 of 40 Develop a Long-Range Debt Management Policy Achievement: This initiative is ongoing. The Administration Committee reviewed a draft Debt Management Policy and Administrative Procedures in June and July 2017. The debt policy was developed in accordance with Senate Bill 1029. Additional feedback has been obtained at each meeting and will be reflected in the revised drafts before being brought to the Board of Directors for potential adoption in August 2017. Develop Alternatives for New Revenues and Funding Sources (i.e. Interagency Agreements, Services, Recycled Water) Achievement: This initiative is ongoing. During the year, staff met with the Contra Costa Water District to discuss the framework for a wholesale agreement for the Concord Community Reuse Project. Staff continues to look for innovative ideas to increase revenues for the District. Strategy 2 W Manage Costs - `' Perform Targeted Audits of Critical/High-Risk Functions or Processes -, s ► Achievement: This initiative is ongoing. As part of the Mentorship Program, a '- project was initiated to identify high- ! ' cost/high risk functions in each Division that could be audited. A list of areas of opportunities has been established. Funding was included in the FY 2017-18 Budget for an outside auditor, and it is _ anticipated that audits will be performed in FY 2017-18. • September 7, 2017 Regular Board Meeting Agenda Packet- Page 219 of 294 Page 18 of 40 Perform Optimization Studies of Treatment Plant and Field Operations to Reduce Costs Achievement: This initiative is ongoing and has been expanded beyond the Operations Department to the entire District. In December 2016, staff made great strides toward the objective of creating a framework to track optimizations and their results. As part of the Mentorship Program, a report was assembled of completed and planned optimizations throughout the District. This report was used to establish a mechanism to record the optimizations, status updates, and performance measurements moving forward. Additionally, a vacant position has been repurposed to a Management Analyst which will assist in supporting and growing the District's innovative culture and continue to encourage more achievements such as these: • Development of a portable oil filtration and flushing system. • Installation of fixed vibration sensors and monitoring of the induced draft fan to provide early notification of elevated vibration and to allow for predictive maintenance. • Reducing the number of backwashes per week at the Filter Plant by 35% by using three filters instead of one or two, which processes more water, increasing the time between filter backwashes, thereby reducing labor and energy costs. • Modification of the caustic soda injection point from the first stage to the quench stage for the wet scrubber of Furnace No. 2 and optimizing the injection rate, to save future chemical costs while still ensuring compliance. Evaluate and Implement Risk Management Practices to Minimize Loss Achievement: This initiative is ongoing. On an annual basis, the Risk Management Section presents a Risk Management Report to the Board of Directors. The last report was presented in September 2016. The report includes annual claims assessments and trend analysis in addition to other key metrics. Additionally, after major losses or incidents, staff prepares an "after action" or "lessons learned" report. The last reports were completed in August 2016 for the flood loss at La Espiral in Orinda and in December 2016 related to efforts to collect late commercial capacity fees. On a routine basis after every sewer overflow or stoppage, the Collection System Operations staff reviews the specific details of the event and assesses changes that may need to be implemented to prevent future occurrences or losses. September 7, 2017 Regular Board Meeting Agenda Packet- Page 220 of 294 Page 19 of 40 How are we doing? • . l 3 — Be a Fiscally Sound and Effective SectorWater FY 2016-17 Target Standard and Poor's —0 Credit Rating NO-M-A I�NMI Debt service coverage ratio Greater than 2.0 times 9.82 Sewer Service Charge less Maintain service affordability than median of Bay Area Target Met agencies Actual reserves as a 100% 100% percentage of target Operating expenditures as a percentage of Greater than 90% 92.5% operating budget Workers' Compensation experience modifier Less than 1.0 0.67 Provide modified duty for Return to work greater than 80% of 95% occupational injuries Self-insurance reserves as a 100% percentage of target 100% September 7, 2017 Regular Board Meeting Agenda Packet- Page 221 of 294 Page 20 of 40 Goal Strategy 1 Develop and Retain Ensure Adequate Staffing and a Highly Trained Training to Meet Current and Future and Innovative Operational Levels Workforce Assess, Develop, and Implement District-Wide Training Needs Achievement: This initiative is ongoing. During the year, the Human Resources Section held five mandatory human resources related training sessions for all District supervisors and twelve human resources related brown bag sessions open to all District staff. Specialty courses on business and technical writing, customer service, and understanding the roles and responsibilities of public employees were also held. In the upcoming fiscal year, staff will be issuing a request for proposal to hire a training consultant to assist in the development of specific training plans for each operational section. Develop and Train Our Future Leaders Achievement: This initiative is ongoing. In FY 2016-17, the District initiated the new Mentorship Program with four participants working on various projects with different Management mentors each quarter. Some of these mentee projects, which were presented to the Board of Directors, included development of a training plan for maintenance staff, an assessment of the impact of patio dining on capacity fees, and optimization of the data transfer between Environmental Compliance staff and Development Review staff. The District also continued the successful Management Leadership Academy program with 20 participants engaged in the six-month program. The District also offered one-on-one coaching sessions to all Management employees. Outside of District staff, the District partnered with Earn and Learn East Bay to increase student exposure and engagement with Science, Technology, Engineering and Mathematic Program careers and to encourage students to pursue a career in the water and wastewater industry. For these efforts, the District was awarded the Youth Advocacy Award from the Workforce Development Board of Contra Costa County. September 7, 2017 Regular Board Meeting Agenda Packet- Page 222 of 294 Page 21 of 40 Strategy 2 Enhance Relationship with Employees and Bargaining Units Cultivate a Positive Work Culture and Promote Teamwork Achievement: This initiative is ongoing. The District continues to recognize staff at Board of Directors meetings for their award-winning achievements including the California Water Environment Association — Plant of the Year, Safety Program of the Year, Public Outreach Program of the Year, Gimmick and Gadget Award; the National Association of Clean Water Agencies Platinum Peak Performance Award (19 consecutive years of compliance with treatment plant discharge standards); Achievement of Excellence in Procurement Award (6 consecutive years); and Comprehensive Annual Financial Report Award (16 consecutive years). The District further received a California Association of Public Information Officials Award for the Lateral Connection newsletter for showing a "commitment to employee information and staff relations." Staff is also encouraged to work together as a team and does so on a regular basis on capital improvement projects and as mentioned under Goal One, Strategy Two, on special studies and projects. Sustain and Grow Collaborative Relationships with the Labor Bargaining Units Achievement: This initiative is ongoing. The District continues its quarterly Labor Management Committee meetings with the Management Support/Confidential Group employees. The District also completed a District- wide Classification Study, a Total Compensation Study, and initiated labor negotiations with the three bargaining units. The goal is to complete labor negotiations prior to the expiration of the current contracts in December 2017. The General Manager also continued his bi-monthly lunches with the two main bargaining units representatives and his monthly "Meet the GM" lunches with individual work units. "r 5r ' September 7, 2017 Regular Board Meeting Agenda Packet- Page 223 of 294 Page 22 of 40 Strategy 3 Meet or Exceed Industry Safety Standards Achieve Consistent Improvement on State of California and Bay Area Industry Injury Rate Achievement: This initiative was met. The District continued to monitor accident/incident causal factors and reported back to the respective departments, safety teams, and the Board of Directors. This awareness highlighted the hazards and identified corrective measures to reduce the number of incidents. In combination with education through the Lateral Connection, safety tailgates and training sessions that has resulted in a reduction of the injury incident rate for FY 2016-17 to 3.8 compared to the Bay Area/State of California rate of 7.4. APP' The District received the Plant of the Year: Safety Award from the California Water Environment Association — San Francisco Bay Section in Fall 2016 and was awarded the Plant of the Year: Safety Award statewide in Spring 2017. Enhance the Safety Culture through Improved Training and Communications Achievement: This initiative is ongoing. The District continues to keep up to date and communicates safety regulatory changes and safe practices to District staff via distribution of the Cal/OSHA Reporter, safety articles in the Lateral Connection, and through training and tailgates conducted by Safety Section staff. The District began implementation of a Safety Data Sheet management online database which allows employees to access chemical hazard information via a mobile device application and web browser. The Safety Data Sheet documents are automatically kept up to date to ensure the most accurate information is available. September 7, 2017 Regular Board Meeting Agenda Packet- Page 224 of 294 Page 23 of 40 How are we doing? Goal 4 — Develop and Retain a Highly Trained • Innovative Workforce lgw FY 2016-17 Target Average time to fill vacancy Less than 60 days 53.25 days (from request to hire) Percentage turnover rate to remain at or below Less than 3.4% 9.14% industry average Average annual training hours Track in FY 2016-17 Average of 7.46 per full-time per employee Set target for FY 2017-18 equivalent employee Actual versus budgeted usage Greater than 80% 25.59% of tuition reimbursement Percentage of performance o evaluations completed on time 100/0 44.5% Less than the Employee injury and illness Bureau of Labor Statistics 3.8 lost time incident rate California Sewage Treatment Facilities' Rate of 7.4 September 7, 2017 Regular Board Meeting Agenda Packet- Page 225 of 294 Page 24 of 40 Goal 5 Strategy 1 Maintain a Reliable Manage Assets Optimally Infrastructure throughout Their Lifecycle Implement Board of Directors Approved Recommendations from the Comprehensive Wastewater Master Plan and Condition Assessment Achievement: This initiative was met. The District completed the CWMP for the collection system and the treatment plant. The plan was presented to the Board of Directors in June 2017, and its recommendations and condition assessment findings have been incorporated into the current Capital Budget and the 10-year Capital Improvement Plan. Update the Consequence of Failure Matrices Achievement: This initiative was met. As part of the CWMP, the consequence of failure scores were determined for gravity sewers, pumping stations and forcemains. The consequence of failure matrix for the treatment plant was updated by District staff. Implement the Reliability Centered Maintenance Program Achievement: This initiative was met. The Plant Maintenance Division staff has been trained on reliability centered maintenance. During the past year, they performed two reliability centered maintenance pilots: one on the Dewatering System, Centrifuge Subsystem and one on the Steam System, Waste Heat Boiler Subsystem. This is a systematic approach to developing a comprehensive maintenance program based on asset criticality and consequence of failure. It also establishes a repeatable program with documented processes and procedures. Pilot results were presented to the Board of Directors on April 6, 2017 as part of the Asset Management update. A framework has been developed and implemented to improve maintenance efficiency based on reliability centered maintenance. The framework provides methods that identify and analyze the equipment and systems that cause a majority of reactive work orders based on cost and work order count. Additionally, the framework includes methods to analyze the remaining equipment and systems to an appropriate level of detail, resulting in the application of the most effective preventative maintenance task for all treatment plant equipment and systems. September 7, 2017 Regular Board Meeting Agenda Packet- Page 226 of 294 Page 25 of 40 Manage and Maintain Current Equipment and Vehicle Fleet to Provide Maximum Value Achievement: This initiative is ongoing. The District continues to maintain our vehicles and equipment to minimize unscheduled downtime. During this past year, the Vehicle and Equipment Shop has transitioned to a new CMMS from Accela to Cityworks and is using field tablets to perform vehicle inspections, and input work orders and inventories. There were 966 services on vehicles r with an uptime of 100%. The District has also entered into an — agreement with Verizon NetworkFleet to pilot test automated vehicle location and vehicle diagnostic software. The pilot study will take ++11 place during the month li i of July 2017 and then a decision will be made for full implementation. Strategy 2 Facilitate Long-Term Capital Renewal and Replacement Integrate the Data from the Asset Management Program into the Analysis of Long Term Capital Improvement Needs Based on the Board of Directors Approved Comprehensive Wastewater Master Plan Achievement: This initiative was met. Planning staff completed the implementation of the InfoMaster software. The InfoMaster software leverages data from the Asset Management Program, such as closed-circuit television scores and cleaning frequency, to calculate the likelihood of failure and considers likelihood of failure and consequence of failure to analyze and prioritize gravity sewer pipe renovation needs. Also, as stated previously, the District completed the CWMP which includes near-term and long-term recommendations that are coordinated with the condition assessment findings. The CWMP will be updated on a routine basis, likely every five years, and will be referenced during the annual budget process to incorporate long-term (10-plus years) recommendations and update the 10-year Capital Improvement Program. September 7, 2017 Regular Board Meeting Agenda Packet- Page 227 of 294 Page 26 of 40 Implement Business Case Evaluations, Including Life- Cycle Cost, into Proposals for New Capital Improvement Program Projects to Determine Most Cost-Effective Projects and Solutions for Projects That Were Not Identified in the Approved CWMP or Already Included in the Capital Improvement Budget Achievement: This initiative was met. Staff developed and started using business case evaluations, including life-cycle cost and triple bottom line analysis, when evaluating new capital projects to determine most cost-effective projects and solutions; the most recent example being the Cogeneration System Improvement Project. Strategy 3 Protect District Personnel and Assets from Threats and Emergencies Enhance Our Capability to Mitigate, Prepare, Respond, and Recover from Emergencies Achievement: This initiative is ongoing. Risk Management staff provided a presentation to the Board of Directors in February 2017 on the District's Emergency Management Program, which included an assessment of the District's response capability and the components of our Program. The Program includes plans, training, communications, supplies and equipment, and coordination. Our Emergency Operations Plan was updated in September 2016. District staff is also currently participating in the multi jurisdictional Local Hazard Mitigation Plan update along with staff from 35 other agencies, including Contra Costa County. The update process began in November 2016, and we have submitted all updates specific to the District. The Plan is being finalized for Federal Emergency Management Agency review. Regarding training, the annual Emergency Operations Center activation exercise was held in September 2016. The Information Technology staff procured the services of a remote co-location facility to replicate server and application data to improve the ability to recover from a disaster or prolonged system outage. Also, a new tape backup system was implemented to complement the primary disk based backup system, which provides an additional viable recovery method. September 7, 2017 Regular Board Meeting Agenda Packet- Page 228 of 294 Page 27 of 40 Evaluate and Implement Appropriate Improvements to Our Security Program to Meet New or Evolving Threats Achievement: This initiative is ongoing. The District completed a comprehensive Security System Study, which included physical security assessments of District facilities. This report is scheduled to be presented to the Board of Directors in August 2017. The recommendations include consolidation of security monitoring, standardization, enhanced security culture and policies, and specific security improvement recommendations for District facilities. Additionally, enhanced access control measures have been implemented in the lobby area of the Martinez Headquarters Building. The Information Technology staff made a presentation to District staff focusing on security awareness that emphasized common cyberattack tactics and how to protect against them. Key security applications were upgraded, which provides enhanced malware detection, prevention, and removal capabilities. A mandatory password change was implemented for all District employees. Also, all legacy servers and workstations running insecure operating systems have been retired. 1 l I P C�. I � ly�Of/ C• September 7, 2017 Regular Board Meeting Agenda Packet- Page 229 of 294 Page 28 of 40 How are we doing? Goal 5 — Maintain a Reliable Infrastructure 4101M FY 2016-17 Target Safety work orders completed 100% 93.5% on time Regulatory Title V work orders 100% 95.03% completed on time Planned treatment plant preventative maintenance Greater than 95% 87.8% completed on time Complete implementation By first quarter of 2017 Completed of Infomaster Miles of pipeline replaced Greater than 1% of assets 0.33% Capital expenditures as a percentage of capital budgeted Greater than 90% 89.1% cash flow Information system uptime (excluding planned 100% 99.99% maintenance) Data backup and recovery Zero lost data Zero lost data September 7, 2017 Regular Board Meeting Agenda Packet- Page 230 of 294 Page 29 of 40 Goal 6 Embrace Technology, Strategy 1 Innovation, and Augment the Region's Water Supply Environmental Sustainability Explore Partnering Opportunities (e.g. Contra Costa Water District and East Bay Municipal Utility District) Achievement: This initiative is ongoing. District staff continues to pursue discussion and interest in the potential projects identified in the District's Wholesale Recycled Water Study. In FY 2016-17, staff conducted meetings to discuss the District's potential supply of recycled water with the U.S. Bureau of Reclamation, Dublin San Ramon Services District, and Zone 7 Water Agency. In addition, the District's General Manager represented the Bay Area Clean Water Agencies on the Bay Area Regional Reliability Task Force, a stakeholder group charged with reviewing and providing input on the Bay Area's planning efforts to establish a resilient water supply. The General Manager was instrumental in promoting a regional exchange program that has become one of the top recommendations of this regional planning study, which was jointly funded with the United States. Bureau of Reclamation. September 7, 2017 Regular Board Meeting Agenda Packet- Page 231 of 294 Page 30 of 40 Develop a Satellite Recycled Water Facilities Program Achievement: This initiative is ongoing. In FY 2016-17, the District executed a Planning Agreement with the Diablo Country Club and initiated the environmental review process, including completion and release of the IInitial Study and Notice of Preparation of an Environmental Impact Report in compliance with the California Environmental Quality Act, and conducted two Open House public meetings to receive input on the project. In FY 2016-17, District staff also supported the Diablo Country Club's efforts to issue a request for proposals to procure the design-build team for the project. ti Strategy 2 Evaluate Business Processes and Optimize Business Operations Perform Business Process Mapping and Re-Engineering �I Achievement: This initiative is ongoing. Staff met with our current Enterprise Resource Planning (ERP) vendor, SunGard, to discuss optimization. Select improvements were made to the purchasing process, and ERP system limitations were identified. The District also entered into an agreement with the Government Finance Officers Association to assess the District's readiness to transition to a new ERP system. The scope of this agreement includes the analysis and documenting of our current business processes; an assessment of areas for optimization; requirements for a new ERP system; an assessment of organizational readiness; and assistance in the procurement of a new ERP. It is anticipated that this work will be completed by the fall of 2017. September 7, 2017 Regular Board Meeting Agenda Packet- Page 232 of 294 Page 31 of 40 Strategy 3 Encourage the Review and Testing of Promising and Leading Technology Expand and Improve the Use Mobile Computing and Communication Technologies Achievement: This initiative is ongoing. The District implemented new software and hardware to improve operational efficiency, including implementation of a new CMMS, Cityworks. As part of this implementation, the District also rolled out mobile devices in the field for maintenance staff to use with the Cityworks CMMS system to improve efficiency and access to information. The District also rolled out mobile devices to the Environmental Compliance staff to automate the inspection process and provide current information in the field. Other efficiencies include the implementation of a streamlined Section 125 Flexible Spending Account plan which includes a debit card, mobile application, a third-party administrator to process all claims, and a mobile application (Ben IQ) which contains information on all District benefits. Continue Developing and Investing in Cost Effective Innovation, Technology, and Applied Research and Development r i Achievement: This initiative is ongoing. The Applied Research Committee continues to meet on a quarterly basis to discuss pilot and optimization opportunities. The District is completing a comprehensive pilot of new _ wet scrubber technology as part of the Solids Handling Facilities Improvements Predesign Project. The pilot plant began operation in May 2017 and is scheduled for MOMS.._A&w completion by September 2017. The District is also part of a consortium of organizations and public agencies led by the Water Environment and Reuse Foundation that was selected by the Department of Energy to plan and design a three-to-five dry tons per day, innovative bioenergy pilot plant. The District was selected as the host site for the pilot plant, which is 50% funded with a $1.2 million grant from the Department of Energy. The District hosted the project kickoff workshop in June 2017 where over 30 attendees from across the United States and Canada were in attendance. The District is also currently evaluating several other innovative nutrient removal technologies for potential pilot projects, such as aerobic granular sludge and membrane aerated biofilm reactors. September 7, 2017 Regular Board Meeting Agenda Packet- Page 233 of 294 Page 32 of 40 Strategy 4 Reduce Reliance on Non-Renewable Energy Explore Opportunities for Self-Generation, Conservation, and Efficiency Based on the Board of Directors Approved Comprehensive Wastewater Master Plan Achievement: This initiative is ongoing. District staff routinely tracks energy usage and provides a summary of usage to the Board of Directors on a quarterly basis. An Energy Policy (BP027) was presented to and approved by the Board of Directors in August 2016, which includes criteria for evaluating energy generation projects. An energy self-sufficiency assessment was completed as part of the CWMP. Recommendations for energy efficiency improvements and other improvements to strive towards net zero energy are included in the CWMP and were presented to the Board of Directors in 2016 and 2017. The District has completed installation and start-up of the solar photovoltaic systems at the Household Hazardous Waste Collection Facility and Collection System Operations Building. We will be pursuing solar photovoltaic opportunities for the treatment plant and/or buffer properties in FY 2017-18. The District is also pursuing public-private partner interest in a Bioenergy Facility that will produce renewable energy and process a portion of the District's solids. A request for interest for innovative bioenergy projects, such as gasification and other solids to energy processes, was issued and letters of interest were received in June 2017. September 7, 2017 Regular Board Meeting Agenda Packet- Page 234 of 294 Page 33 of 40 How are we doing? P, Goal 6 — Embrace Technology, Innovation, • Environmental Sustainability FY 2016-17 . - Total gallons of recycled water Greater than 240 million distributed to external gallons per year 204,122,430 gallons per year customers Maximum residential fill station 15 minutes Less than 5 minutes customer wait time Gallons of recycled water Greater than 14 million gallons distributed at the residentialper year 4,833,536 gallons per year fill station Gallons of recycled water Greater than 4 million gallons 199,511 gallons per year distributed at truck fill program per year Greater than kWh of electricity produced 18 million kWh per year 18.9 million kWh (reported as a rolling average) kWh of solar power produced at Collection System Greater than 200 kWh per year Operations and Household (reported as a rolling average) 136,215 kWh Hazardous Waste Pilot test new and Greater than 3 pilot tests or promising technology reviews per year 5 Present research papers Greater than 3 papers per year 5 and findings September 7, 2017 Regular Board Meeting Agenda Packet- Page 235 of 294 Page 34 of 40 8/30/2017 '. . FISCAL YEAR 2016-17 STRATEGIC PLAN Summary of Achievements Board of Directors Meeting September 7, 2017 - Ann K. Sasaki Deputy General Manager VISION, MISSION, VALUES&GOALS ..� OUR VISION .WL-. Mho hiph-Wrkrmarvr rrrp,ni,.k.lh,!pevr Hd rrrryy1-1......,nr--d .exul,wry—pll,nrn ai rr Mzhln.- OUR MISSION � fo vmtecr PUNK health and rho emdmnMM OURVAi..ULS = pa"16 cw.m l,y PHNiolnLeade�lc wed •VFbra eaNx»n and-wiwnnn we.N -WF uWh_C-4—t rna+o�.et vuuK.F .dw,l�er+d .waw.N4e+nrh•rd -hwu«l.xheawr •fwN.acdpil r�drr �«+Ir -mnaaauFm mnner.¢.aawn+�..rwHxwn�o+w •w�ee�e.ow,n+w! .eeienwe�v •wwan�+��xn �.ep�ty wnrcanw.v..atavw av((wwF..A Nun •FapxapFwm+nrwn hwnaw JNF.d.r •Auaf puo.nhgn y'[n.tlrae00nNhmrwA •4ndnWAw.w '' Ga[atwrN 7w OUR GOALS -prvMeoxcepuoiulcuFmmerlmx. •Uerelop anemaanahlphl�[ralix-0ano .$rnyai0n'att rapuliforyrepulMmar� �^�'+u•'a evrlRcrcv .9e eM1acelly eouryl end eneclirrweber •aAnln'aln Crrh.N"vmlrar[nKture for ullliry •Fnihiau•laW—u IniNd) anJ �nt,i svalainalhfily R j,.lYre•a�H- elite ?*tea 1 September 7, 2017 Regular Board Meeting Agenda Packet- Page 236 of 294 Page 35 of 40 8/30/2017 EFFECTIVE UTILITY MANAGEMENT TEN KEY ATTRIBUTES • Product Quality • Infrastructure Strategy and Performance • Customer Satisfaction • Employee and Leadership • Enterprise Resiliency Development • Community Sustainability • Operational Optimization • Water Resource Sustainability • Financial Viability • Stakeholder Understanding and Support „4 SUMMARY OF ACHIEVEMENTS 40 Initiatives — 20% Completed • National Pollutant Discharge Elimination System Permit received • Comprehensive Wastewater Master Plan completed • Transitioned to Cityworks Computerized Maintenance Management System • Updated Consequence of Failure Matrices • Implemented Reliability Centered Maintenance Program • Integrated data from the Asset Management Program and Comprehensive Wastewater Master Plan into the long-term Capital Improvement Program • Implemented Business Case Evaluations for new Capital Improvement Program projects • Reduced injury incident rate to 3.8 compared to 7.4 for the Bay Area 2 September 7, 2017 Regular Board Meeting Agenda Packet- Page 237 of 294 Page 36 of 40 8/30/2017 SUMMARY OF ACHIEVEMENTS 50 Performance Metrics • 32 Targets Met 64% Achievement Rate metria , �._>- effective #-s measurable „4 GOAL ONE — PROVIDE EXCEPTIONAL CUSTOMER SERVICE • Display monitor installed in the lobby • Actively engaging customers on social i media • Second Central San Citizens Academy and 70th Anniversary Open House were held • Achieved an average customer satisfaction rating of 3.96 out of 4.0 for emergency calls ■ and a 97.5% satisfaction rating on construction projects • Members of the Board of Directors and the General Manager met with mayors, council members, and city mangers within the District's service area 3 September 7, 2017 Regular Board Meeting Agenda Packet- Page 238 of 294 Page 37 of 40 8/30/2017 GOAL TWO - STRIVE TO MEET REGULATORY REQUIREMENTS Nineteen years of total compliance with our National Pollutant Discharge Elimination System Permit • 100% compliance with Recycled Water Title 22 regulations ' Implemented a permit matrix .r • Greenhouse gas emissions limited to o below 25,000 metric tons • Cleaned 744 miles of sewer pipe and limited sewer spills to 2.53 per 100 miles �1 GOAL THREE - BE A FISCALLY SOUND AND EFFECTIVE WATER SECTOR UTILITY • Rate Model adjusted to consider the Comprehensive Wastewater Master Plan and the Board of Directors'direction, resulting in newly adopted rates • Implemented a new Internal Revenue Service Section 115 Pension Trust to fund unfunded pension liabilities • Drafting a Debt Management Policy • Identified high cost/high risk functions in each Division to be audited in FY 2018-19 • Performed optimization projects 4 September 7, 2017 Regular Board Meeting Agenda Packet- Page 239 of 294 Page 38 of 40 8/30/2017 GOAL FOUR - DEVELOP AND RETAIN A HIGHLY TRAINED AND INNOVATIVE WORKFORCE • Leadership Academy held • Mentorship Program implemented • Specialty training on technical a` writing, customer service, and understanding the roles and responsibilities of public _ employees held • , `� • Vacancies filled within 60 days or less • Labor negotiations initiated GOAL FIVE - MAINTAIN A RELIABLE INFRASTRUCTURE • Replaced five miles of sewer mains in the Cities of Lafayette, Orinda, and Walnut Creek • Completed Reliability Centered Maintenance pilot project on the Dewatering System - Centrifuge Subsystem, Stream System -Waste Heat Boiler Subsystem • Updated the Emergency Operations Plan COMPUTER -M HERATHN11WIM Information Technology implemented osmC sB11e �11 measures to guard against cyberattacks SECURE YBER m oaTa� � � SYSTEMS alcEsso ouRIE • Completed a security vulnerability Esor�waRE �MUE -ONE assessment 5 September 7, 2017 Regular Board Meeting Agenda Packet- Page 240 of 294 Page 39 of 40 8/30/2017 GOAL SIX - EMBRACE TECHNOLOGY, INNOVATION, AND ENVIRONMENTAL SUSTAINABILITY • Working with Diablo Country Club on the environmental document for the satellite recycled water facility • Contracted with the Government Finance Officers Association to assess the readiness of the District to transition to a new enterprise resource planning system Deployed mobile devices in the field Issued a request for proposal for a Bioenergy and Solids Handling Project • Initiated Wet Scrubber Pilot Project • Update the District website, improving FY 2017-18 customer experience • Implement the recommendations from the Comprehensive Wastewater Master Plan Lo O�ng • Continue optimization of business and field operations • Develop a strategy for the replacement of the existing enterprise resource LAhea planning system 3:-: • Complete the review and develop an equitable method for assessing capacity fees across different user classes • Facilitate successful negotiations with the bargaining units • Complete and implement the strategy for solids handling and bioenergy production • Develop the next Strategic Plan for FY 2018-2020 �1 6 September 7, 2017 Regular Board Meeting Agenda Packet- Page 241 of 294 Page 40 of 40 8/30/2017 QUESTIONS t Jai 7 September 7, 2017 Regular Board Meeting Agenda Packet- Page 242 of 294