HomeMy WebLinkAbout03.a. Review draft Strategic Plan for Fiscal Years (FY) 2020-22 Page 1 of 21 Item 3.a. CENTRAL SAN Y-109-ITMEN ME March 3, 2020 TO: ADMINISTRATION COMMITTEE FROM: CHRISTINA GEE, MANAGEMENT ANALYST REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER ROGER S. BAILEY, GENERAL MANAGER SUBJECT: REVIEW DRAFT STRATEGIC PLAN FOR FISCAL YEARS (FY) 2020-22 On December 19, 2019, the Board re-adopted Central San's Mission and adopted revised Vision, Values, and Goals. The updates were made to better reflect Central San's commitment to the environment, innovation, optimization, and continuous improvement. With this updated framework in place, Managers and key staff met on January 24, 2020 to revise the Strategies, Initiatives, Key Success Measures, and Key Metrics of the current Strategic Plan for Fiscal Years (FY) 2018-20. The draft FY 2020-22 Strategic Plan incorporates updates to the District's approach to address its key challenges and opportunities: • Balancing the need for financial resources against impacts to the customer • System optimization and utilization of Big Data • Driving employee performance and rewarding excellence • Evolving regulatory requirements • Aging infrastructure • Climate resiliency • Maintaining a sustainable water supply The Strategies outline the District's approach to achieve its Goals, overcome its challenges, accomplish its mission and meet the community's needs in the most efficient and effective ways. The Initiatives describe the actions staff will take, and the Key Success Measures delineate the tasks to fulfill those Initiatives. The Key Metrics set targets, track progress and evaluate performance. Each Strategic Plan has used the Effective Utility Management (EUM) model as a tool to define attributes to be considered in implementing practices and procedures to improve operations and move toward continued sustainability. The EUM framework was originally developed in 2007 by the American Water Works Association (AWWA), U.S. Environmental Protection Agency (EPA), and nine other association partners representing the U.S. water and wastewater sector. It consists of 10 attributes that provide succinct focus areas for effectively managed utilities and what they should strive to achieve. These attributes can be viewed as a continuum of, or a set of building blocks for, management improvement opportunities. Using this framework, senior management identified key issues facing the District to address in each Strategic Plan. The FY 2020-22 Strategic Plan draws from the work accomplished under the FY 2014-16, 2016-18, and March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 3 of 47 Page 2 of 21 2018-20 Strategic Plans. With the exception of Goals 2 and 6, many of the goals and strategies remain the same; however, the initiatives and work activities have been updated to reflect current statuses and priorities. Staff continues to optimize operations, streamline processes and identify opportunities to implement innovative technology to manage and contain costs, with the ultimate goal of improving service quality and minimizing the cost of services to the District's customers. Goal 6 is now dedicated to that work, while Goal 2 has been reworked to include not only regulatory compliance but also environmental protection and sustainability efforts. Attached for Committee review is the Strategies, Initiatives, Key Success Measures and Key Metrics document (Attachment 1), which constitutes the bulk of the Strategic Plan. On a quarterly basis, the Committee will be given updates on the progress of each goal and strategy through the fulfillment of the Key Success Measures, and Key Metrics. For reference, the document notes changes to the key metrics and targets in italics made from the FY 2018-20 Plan, as well as the FY 2018-19 performance against the targets, both of which will not appear in the final FY 2020-22 Plan. When completed, the Initiatives and Key Metrics will be incorporated into the FY 2020-21 Budget, along with the FY 2019-20 strategic accomplishments. Staff will be available at the meeting to answer any questions and collect feedback from the Committee. ATTACHMENTS: 1. Draft Strategies, Initiatives, Key Success Measures, and Key Metrics March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 4 of 47 Page 3 of 21 DRAFT FY 2020-22 Strategic Plan GOAL ONE - CUSTOMER AND COMMUNITY Provide exceptional service and maintain an excellent reputation Strategy 1 — Deliver high-quality customer service 1. Provide core service of treating wastewater, along with value-added programs to go above and beyond in service to customers. Key Success Measures • Continue to assess customer satisfaction, awareness, and preferred methods of receiving information. • Respond in a timely manner to requests for service. • Receive high marks on customer satisfaction surveys for Collection System Operations (CSO), Capital Projects, Permit Counter, and other services. • Continue to administer customer-facing programs such as the Household Hazardous Waste Collection and Recycled Water Fill Station programs. 2. Minimize impacts to residents and businesses during capital projects, construction work, and maintenance. Key Success Measures • Hold informational community meetings for all major sewer renovation projects, including outreach to officials of the impacted cities/county. • Meet individually with property owners and/or tenants on projects involving private easements. • Troubleshoot and resolve construction issues as rapidly as possible. 3. Operate and govern with transparency. Key Success Measures • Renew California Special District Leadership Foundation Transparency Certificate of Excellence. • Update website with the latest Board meeting agendas, public notices, financial documents, and other content. • Practice principles of Brown Act and Ethics training. • Respond to Public Records Act requests promptly. Strategy 2 — Maintain a Positive Reputation 1. Form and maintain relationships with federal, state, and local elected officials and stakeholders. Key Success Measures • Meet regularly with elected officials and stakeholders. 1 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 5 of 47 Page 4 of 21 DRAFT FY 2020-22 Strategic Plan • Plan a customer engagement signature event to coincide with Central San's 75th anniversary. • Support Board Member engagement with elected officials and stakeholders through presentations, events, and meetings. 2. Increase understanding and support for key initiatives, programs, and services. Key Success Measures • Conduct facility tours and speaker's bureau presentations highlighting infrastructure investments. • Develop videos and public service announcements to communicate environmental messages and other information. • Create engaging customer publications and brochures. • Expand media relations, including social media. • Host the citizens'academy, Central San Academy, annually. • Develop industry-leading student education programs and implement classroom and community education events. 3. Support member organizations and sister agencies. Key Success Measures • Take leadership roles in, participate in, attend meetings of, and share lessons learned from industry organizations. • Serve on oral boards, grant mutual aid through Ca1WARN, and provide other assistance as requested. • Continue to achieve recognition highlighting industry-leading work through member organization programs. 2 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 6 of 47 Page 5 of 21 DRAFT FY 2020-22 Strategic Plan GOAL ONE — KEY METRICS Metric Target FY 2018-19 Performance Average onsite response time :530 minutes 30.3 minutes for collection system emergency calls, (formerly <_20 minutes) during working hours Average onsite response time <_40 minutes 34.2 minutes for collection system emergency calls, after hours Average customer service rating >_3.8 out of 4.0 3.9 out of 4.0 for emergency calls Average customer satisfaction rating >_95% 89% on construction projects (formerly median) Average customer satisfaction rating >95% 100% on permit counter interactions (formerly median) Students served by education programs >_6,000 per year 6,056 (formerly 4,000) Participants in Plant / Household Hazardous >_500 participants 2,756 Waste Collection Facility tours per year and District presentations Participants in Central San Academy >_35 participants 40 per session (formerly>_30) Awards or recognitions received >_10 13 3 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 7 of 47 Page 6 of 21 DRAFT FY 2020-22 Strategic Plan GOAL TWO — ENVIRONMENTAL STEWARDSHIP Meet regulatory requirements and promote sustainability Strategy 1 — Achieve 100% Compliance in All Regulations 1. Comply with all applicable regulations. Key Success Measures • Meet or surpass all wastewater discharge, air, and recycled water requirements. • Continue to attain National Association of Clean Water Agencies (NACWA) Platinum Peak Performance Awards. • Minimize sanitary sewer overflows (SSOs) through optimized rehabilitation, replacement, and cleaning. 2. Complete infrastructure improvements required to meet regulations. Key Success Measures • Bid the Solids Handling Facility Improvements Project. • Inspect and maintain the outfall. • Complete assessment of the Steam and Aeration Blower Renovation Project. 3. Actively manage greenhouse gas (GHG) emissions in the most cost-effective and responsible manner. Key Success Measures • Prepare internal monthly GHG emission inventory updates, annual inventory summary, and verification report and submit to California Air Resources Board (CARB) as required. • Minimize natural gas usage and maximize landfill gas usage through daily operations and capital improvements for energy efficiency. Strategy 2 — Anticipate and Prepare for Potential Regulatory Changes 1. Foster relationships with regulatory agencies. Key Success Measures • Actively participate in meetings of the Bay Area Clean Water Agencies. • Communicate directly and participate in meetings and workshops with regulatory bodies such as the Regional Water Quality Control Board, State Water Resources Control Board, Bay Area Air Quality Management District, Environmental Protection Agency, and CARB, as needed. 2. Track proposed and pending legislation or regulatory changes; plan for possible implementations. 4 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 8 of 47 Page 7 of 21 DRAFT FY 2020-22 Strategic Plan Key Success Measures • Log, analyze, review, and comment on proposed legislation and regulations that have a direct impact on District operations, as appropriate. • Support key legislative and advocacy initiatives through customer communications and outreach. • Incorporate potential impacts of regulatory changes into long-range infrastructure and financing plans. Strategv 3 — Support Regional Development of Local Water Supply 1. Explore and advance partnering opportunities. Key Success Measures • Develop and execute a contract for the Recycled Water Exchange Project with Contra Costa Water District (CCWD) and Santa Clara Valley Water District (and/or other interested water supply agencies). • Work with CCWD and the City of Concord to supply recycled water to the Concord Community Reuse Project. • Collaborate with Dublin San Ramon Services District— East Bay Municipal Utility District Recycled Water Authority (DERWA) to allow DERWA to divert raw wastewater from the San Ramon Pumping Station to produce recycled water to meet DERWA's peak summer irrigation demand. • Facilitate innovative and financially viable recycled water solutions (e.g., the Diablo Country Club demonstration satellite water recycling facility). 2. Continue to provide recycled water to residents and businesses; evaluate and process new customer requests. Key Success Measures • Bid the Filter Plant renovations project. • Continue to operate and maintain a reliable recycled water distribution system for Zone 1 customers. • Continue the Residential Recycled Water Fill Station and Commercial Recycled Water Truck Fill Programs. Strategv 4 - Reduce Reliance on Non-Renewable Energy 1. Explore opportunities for renewable energy generation, conservation, and efficiency. Key Success Measures • Track and review energy usage; continue to explore ways to optimize efficiency. • Replace lighting and heating, ventilation, and air conditioning with newer, more efficient fixtures and equipment at the Martinez campus. • Implement an onsite solar energy project. 5 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 9 of 47 Page 8 of 21 DRAFT FY 2020-22 Strategic Plan GOAL TWO — KEY METRICS Metric Target FY 2018-19 Performance National Pollutant Discharge Elimination Zero violations Zero violations System compliance Title V compliance Zero violations Three violations Recycled Water Title 22 compliance Zero violations Zero violations Anthropogenic GHG emissions :525,000 metric tons (MT) 23,619 MT CO2e CO2e per calendar year (calendar year 2018) Sanitary sewer overflows 52.0 spills 1.95 spills per 100 miles of pipeline per 100 miles of (formerly:52.5) pipeline Spills to public water :53 per year 7 Percent of spills less than 500 gallons >_95% 87% Pipeline cleaning schedules completed on time >_98% 99% (formerly>_95%) Pipeline cleaning On >_4% of pipelines cleaned 3.8% quality assurance / quality control (QA/QC) on an annual basis (formerly:_3%) Pipeline cleaning QA/QC passing rate >_98% 95.6% Annual Environmental Compliance inspections 100% 100% and permitting completed on time Household Hazardous Waste (HHW) Zero violations Zero violations management compliance Gallons of recycled water >_240 million gallons per year 195,857,981 gallons distributed to external customers kWh of electricity >_18 million kWh per year 22.7M kWh produced by co-generation using natural gas (reported as a rolling (reported as a rolling average (avg.)) avg.) kWh of solar power >_220,000 kWh per year 299,000 kWh produced at Collection System Operations and (reported as a rolling avg.) (reported as a rolling HHW Facility avg.) kWh of solar power >_2.5 million kWh per year n/a produced by new solar energy system at (reported as a rolling avg.) Martinez campus (new metric) 6 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 10 of 47 Page 9 of 21 DRAFT FY 2020-22 Strategic Plan GOAL THREE — FISCAL RESPONSIBILITY Manage finances wisely and prudently Strategy 1 — Maintain Financial Stability and Sustainability 1. Conduct long-range planning. Key Success Measures • Mitigate rate increases by leveraging financing opportunities to fund capital needs. • Develop scenarios to utilize debt prudently in financing the 10-Year CIP. • Pursue State Revolving Fund loan and grant opportunities, as appropriate. • Issue debt as needed, consistent with Board direction and the debt management policy. 2. Ensure resiliency against recession or other economic events. Key Success Measures • Fund rate stabilization account with available funds from favorable year- end variances. • Adopt pension and Other Post-Employment Benefits funding policy to strive towards full funding of employee-related obligations. 3. Manage costs. Key Success Measures • Develop budgets in alignment with the Strategic Plan and Risk Mitigation Plan. • Pursue opportunities for cost control through efficiencies and new technology. • Adjust operations and maintenance budgets at rates no greater than the inflation measures used in 10-Year CIP. • Enforce and continuously review procurement policies to ensure competitive and fair pricing on services and goods. • Complete annual Benchmarking Study to identify potential gaps. 4. Evaluate and apply risk management practices. Key Success Measures • Develop annual internal audit plans based on risk assessment. • Test and improve internal controls to mitigate risks of loss and improve efficiency and effectiveness. • Identify and implement lessons learned. • Reduce average cost of overflow claims. • Maintain and report on Enterprise Risk Management program and risk inventory. 7 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 11 of 47 Page 10 of 21 DRAFT FY 2020-22 Strategic Plan • Develop and implement an equipment identification and tracking system. Strategy 2 — Ensure Integrity and Transparency in Financial Management 1. Confirm rate structure and fees are consistent with cost of service principles. Key Success Measures • Conduct annual review of rates and fees. • Perform annual review of non-residential customers to ensure current and consistent billing information and charges. 2. Deliver reliable and relevant financial information. Key Success Measures • Issue the Comprehensive Annual Financial Report no later than six months following the end of the fiscal year. • Conduct regular internal and external financial audits. • Earn the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation Award. • Leverage enterprise resource planning (ERP) technology to produce accurate, timely, and meaningful reports and dashboards. 8 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 12 of 47 Page 11 of 21 DRAFT FY 2020-22 Strategic Plan GOAL THREE - KEY METRICS Metric Target FY 2018-19 Performance Maintain service affordability Sewer Service Charge less than Target Met average of Bay Area agencies Sewer Service Charge plus Ad Target Met Valorem tax less than average of Bay Area Agencies <_0.78% of median household income 0.53% excluding ad (new target) valorem 0.63% including ad valorem Standard and Poor's and AAA/Aa1 AAA rating from S&P Moody's Credit Ratings (no rating from Moody's) Debt service coverage ratio >_2.0 101.6 Actual reserves as a percentage 100% 170% of target (O&M) 173% (Sewer Construction) Operating expenditures >_95% 96.5% as a percentage of operating budget Reported material weaknesses Zero Zero or significant deficiencies in internal controls as part of annual financial audit Difference in inventory value in :51% 0.93% Purchasing database vs. value submitted to Accounting Accuracy of physical inventory >_95% 99% count vs. book value 9 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 13 of 47 Page 12 of 21 DRAFT FY 2020-22 Strategic Plan GOAL FOUR — WORKFORCE DEVELOPMENT Recruit, empower, and engage a highly trained and safe workforce Strategy 1 — Proactively Plan for Future Operational Staffing Needs 1. Continue to develop employees to meet their full potential and to fill future leadership roles. Key Success Measures • Formalize an Organizational Development and Talent Management unit within Human Resources (HR). • Acquire a centralized learning management system to track training. • Explore career and professional development opportunities (e.g.,job shadowing and rotation) to expand employees'skills to meet changing workforce needs. • Continue the Leadership and Supervisory Academies and Mentorship Program. • Encourage staff to obtain technical certifications, such as Certified Reliability Leader. • Continue to host and participate in multiagency development programs for staff from Central San and sister agencies. 2. Enhance Central San's ability to recruit staff who exhibit the organization's values. Key Success Measures • Expand the internship program placements to cross-disciplinary positions. • Continue participation in workforce development activities. Strategy 2 — Foster Relationships across All Levels of Central San 1. Cultivate a positive work culture. Key Success Measures • Perform an employee engagement survey to develop a baseline; evaluate and implement viable suggestions. • Promote a sense of community through events, team-building exercises, and increased interdepartmental communication and collaboration. • Use the performance evaluation process to establish and communicate clear expectations and standards. • Continue General Manager lunches with the division workgroups. 2. Sustain and grow collaborative relationships with the bargaining units. 10 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 14 of 47 Page 13 of 21 DRAFT FY 2020-22 Strategic Plan Key Success Measures • Engage the bargaining units in informal discussions on collaborative solutions to workplace issues. • Continue the General Manager and Board Member meetings with the bargaining representatives. • Track and implement action items from Labor Management Committee meetings. Strategy 3 — Inspire Employee Engagement 1. Expand employees' understanding of Central San's operations and their role in the agency's success. Key Success Measures • Communicate important initiatives and information to employees via print and electronic media, including the Lateral Connection employee newsletter and the intranet. • Expand the onboarding process. • Provide presentations on major projects or training in specialty areas (e.g., Purchasing, HR) to divisions upon request. • Survey employees for customer satisfaction with internal support services. 2. Celebrate employees' achievements. Key Success Measures • Recognize employee achievements via articles in the Lateral Connection, the intranet, Board meeting announcements, and other avenues. • Initiate an employee recognition program. • Hold a yearly event to recognize innovative employees going above and beyond to improve and optimize their work. Strategy 4— Meet or Exceed Industry Safety Standards 1. Improve consistently in comparison to Bureau of Labor Statistics (BLS) industry injury rates. Key Success Measures • Continue to monitor accident/incident causes to identify and mitigate hazards. • Continue to provide regular analysis summaries to the District Safety Committee, Safety Teams, and Management Team on accident/incident causation and corrective measures. 2. Enhance the safety culture through improved training and communications. 11 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 15 of 47 Page 14 of 21 DRAFT FY 2020-22 Strategic Plan Key Success Measures • Increase visibility of Safety staff in the field. • Use NeoGov® database to provide and track employee safety training. • Continue to conduct training based upon accident/incident causal factors, new processes, equipment, or procedures. • Continue to provide relevant information via safety publications and, when appropriate, a Safety Corner in the Lateral Connection. • Continue to provide information on upcoming safety-related regulations to supervisors and managers. 12 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 16 of 47 Page 15 of 21 DRAFT FY 2020-22 Strategic Plan GOAL FOUR - KEY METRICS Metric Target FY 2018-19 Performance Average time to fill vacancy :560 days 58.8 days (from request to hire) Turnover rate at or below 5_6.5% 5.7% median for combined utilities (formerly 5_4.8%) via American Water Works Association (AWWA) Average annual training hours >15 hours per full-time 22.7 hours per FTE (external and internal training) equivalent employee (FTE) Completion of 100% 95% annual performance evaluations Participation in annual Wellness Expo Increase by 10% each -15.6% year Workers' compensation experience modifier 551.0 0.74 Temporary modified duty provided >_95% of recordable 100% (Return to Work program) injuries Internal promotions >25% 45.8% (excludes entry-level positions) Formal grievances processed Zero Two grievances "filed" Employee injury and illness :54.0 (via BLS) 2.6 lost time incident rate :55.6 (via AWWA) (new target) 13 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 17 of 47 Page 16 of 21 DRAFT FY 2020-22 Strategic Plan GOAL FIVE — INFRASTRUCTURE RELIABILITY Maintain facilities and equipment to be dependable, resilient, and long lasting Strategy 1 — Manage Assets Optimally to Prolong Their Useful Life 1. Continue updating the 10-Year Capital Improvement Budget (CIB) consistent with recommendations of the Asset Management Program. Key Success Measures • Complete condition assessments on all critical equipment on time and incorporate into CIB or Maintenance Program as appropriate. • Implement the Large Diameter Pipe and Force Main Inspection and condition assessment programs. 2. Expand reliability-based approaches to maintaining assets. Key Success Measures • Perform Reliability Centered Maintenance, Preventative Maintenance Optimization, Defect Elimination, Safety Quality Effectiveness Audit, Root Cause Analysis, and other strategic reliability-based analysis on treatment plant process systems. • Improve the ACM program by developing and deploying condition-based and predictive-based technologies (e.g., infrared, vibration, and ultrasound testing) across asset classes. • Add service contracts to computerized maintenance management software (CMMS) to track work orders. • Transfer Pumping Stations maintenance program to CMMS. Strategy 2 — Execute Long-Term Capital Renewal and Replacement Program 1. Integrate data from the Comprehensive Wastewater Master Plan (CWMP) and Asset Management Program into the analysis of long-term capital improvement needs. Key Success Measures • Ensure all critical assets and processes in need of repair or replacement are appropriately scheduled in the 10-Year CIP. • Develop a prioritization model for vertical assets. 2. Harden infrastructure for climate resiliency. Key Success Measures • Identify vulnerable assets and develop mitigation measures. • Update the CWMP Technical Memo (TP8) on Resiliency and Vulnerability. 14 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 18 of 47 Page 17 of 21 DRAFT FY 2020-22 Strategic Plan Strategy 3 — Protect Personnel and Assets from Threats and Emergencies 1. Enhance capability to mitigate, prepare for, respond to, and recover from emergencies. Key Success Measures • Train staff and conduct an exercise of the Continuity of Operations Plan. • Maintain the Emergency Operations Plan. • Expand participation in CaIWARN to represent the needs of wastewater agencies in emergency planning and responses. • Update emergency communication systems. • Increase the number of licensed amateur, or HAM, radio operators among staff. 2. Evaluate and implement improvements to meet new or evolving threats, both physical and digital. Key Success Measures • Budget and implement the projects identified in the Security Master Plan. • Provide regular security awareness training to staff. • Renovate security guard posts and update monitoring equipment. • Expand access control systems and harden certain facilities. • Upgrade treatment plant control network and its equipment to create redundant paths. • Continue to conduct third-party cybersecurity operation assessments focusing on technology, people, and physical assets, including an audit to gauge readiness against ransomware cyberattacks. 15 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 19 of 47 Page 18 of 21 DRAFT FY 2020-22 Strategic Plan GOAL FIVE - KEY METRICS Metric Target FY 2018-19 Performance Safety-prioritized work orders 100% 87.0% completed on time Regulatory Title V work orders 100% 99.0% completed on time Planned treatment plant >90% 83.8% preventative maintenance (formerly>_95%) completed on time Recycled water distribution system >98% n/a maintenance schedules completed on time (new metric) Uptime for vehicles 100% 99.5% (formerly included equipment uptime) Miles of sewers replaced or rehabilitated >6.0 miles 0.4% or 6.1 miles (focused on deteriorated of pipeline small diameter pipelines) (formerly >0.5% of assets replaced (7.6 miles per year for the (formerly miles of pipeline replaced) next five years starting in FY 2018-20)) Large diameter and force main >_3 miles per year for the n/a condition assessment (new metric) next five years starting in FY 2020-21 Average time to execute Engineering :52 weeks n/a agreements from complete package submittal or Board approval (new metric) Capital expenditures >_90% 84% as a percentage of capital budgeted cash flow including carry forward Information system outages 100% uptime 100% uptime affecting normal business operations Data backup and recovery Zero lost data Zero lost data 16 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 20 of 47 Page 19 of 21 DRAFT FY 2020-22 Strategic Plan GOAL SIX— INNOVATION AND OPTIMIZATION Explore new technologies for continuous improvement Strategy 1 — Implement the Central San Smart Initiative 1. Utilize data to optimize operation and maintenance; improve asset management; increase energy efficiency, staff productivity, and safety; and reduce facility management costs. Key Success Measures • Continue meetings of the steering committee formed in January 2020. • Develop an implementation schedule for the initial projects. • Establish project task forces and identify project champions. Strategy 2 — Improve and Modernize Operations through Technology and Efficiency Measures 1. Implement new ERP system, including permitting software, and integrate with linked systems. Key Success Measures • Integrate the project management information system. • Address e-procurement, contract management, and procurement card system needs. • Evaluate, select, and implement new sewer service charge billing software. • Leverage software towards the elimination of paper processes. • Update procedures to reflect new business processes. 2. Evaluate and invest in cost-effective and innovative technology to enhance business processes. Key Success Measures • Hold Applied Research meetings to promote innovation and continuous improvement. • Continue to participate actively in the HYPOWERS pilot project to test an emerging hydrothermal resource recovery process for solids handling. • Expand and improve the use of mobile computing and communication technologies, including applications for inspector and surveyor field staff. • Review 1-, 2-, 3-, 5-, and 7-year pipeline cleaning schedules for optimization. • Provide Optimizations Program Annual Reports to Board. 17 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 21 of 47 Page 20 of 21 DRAFT FY 2020-22 Strategic Plan 3. Develop a Technology Roadmap to encompass all major technology implementation across the organization. Key Success Measures • Include ERP, CMMS, supervisory control and data acquisition, document management, asset management, geographic information system, operational technology projects, and beyond. • Organize the various technologies with overlapping areas of interest and use of resources to plan projects with a global view. 18 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 22 of 47 Page 21 of 21 DRAFT FY 2020-22 Strategic Plan GOAL SIX - KEY METRICS Metric Target FY 2018-19 Performance Projects initiated under Central San Smart >_3 per year n/a (new metric) Reviews or pilot tests >3 per year 7 of new and promising technology Research papers and findings presented >3 papers or 6 presentations per year (2 papers and 4 presentations) Don't Just Fix It; Improve It >_35 28 work orders completed (new metric) Completed optimizations (new metric) >_20 27 19 March 3, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 23 of 47