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HomeMy WebLinkAbout04.a. Review final draft Strategic Plan for Fiscal Years (FY) 2020-22 Page 1 of 30 Item 4.a. ,orVIOIN SAN May 5, 2020 TO: ADMINISTRATION COMMITTEE FROM: CHRISTINA GEE, MANAGEMENT ANALYST REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER ROGER S. BAILEY, GENERAL MANAGER SUBJECT: REVIEW FINAL DRAFT STRATEGIC PLAN FOR FISCAL YEARS (FY) 2020- 22 Central San updates its strategic plans on a two-year cycle. With the current Fiscal Years (FY) 2018-20 Strategic Plan coming to an end on June 30, 2020, staff and the Board began developing the FY 2020-22 Strategic Plan in late 2019. Following a November workshop, in December, the Board re-adopted Central San's Mission and adopted revised Vision, Values, and Goals to better reflect Central San's commitment to the environment, innovation, optimization, and continuous improvement. With this 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 FY 2018-20 Strategic Plan to address Central San's key challenges and opportunities for the next two fiscal years: • 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 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. The Leadership Team used this framework to help identify initiatives in each Strategic Plan. Central San's strategic plans consist of multiple components. At the highest level are its six overarching Goals, which provide high-level direction for the plan. Strategies then outline the approach to achieve those goals. Initiatives describe the actions needed to implement the strategies, and Key Success Measures provide examples of the types of tasks that can be performed to fulfill those initiatives. Finally, May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 4 of 63 Page 2 of 30 Key Metrics set targets to facilitate progress tracking and performance evaluation. The FY 2020-22 Strategic Plan draws from the work accomplished under the FY 2014-16, 2016-18, and 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 final draft Strategic Plan for FY 2020-22 (Attachment 1). No substantial changes were made to the draft Goals, Strategies, Initiatives, Key Success Measures, and Key Metrics which the Committee reviewed at its meeting on March 3, 2020. 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. Staff will be available at the meeting to answer any questions and collect feedback from the Committee. ATTACHMENTS: 1. Final Draft Strategic Plan for FY 2020-22 2. PowerPoint Presentation May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 5 of 63 `■ ' =J I � - . O f f. Page 3 of 30 Ilk fl e jag .10 f mom - --- ,, anS CENTRAL SAN 1 1 _ — • •- •. '.•- • • • CENTRAL CONTRA COSTA SANITARY DISTRICT Page 4 of 1 CENTRAL SAN FY20 �22 Strateg 'ic Plan f �y� OA: 41 dt 91 14 .ate I r` �• � _ �i; -1� �:TL a'_' Y�., � , � �gyp.• ;s� A' .y�.� �� �i,. ,n T ���,gf.. .3�'R �"'` t�,iY.x^�' �.. •;�3�6• ',tly� � *�� ."l� 'r.,� '�� :�}�-� ,. -:7;': � _ 1' �� � � "�+i' :fir• `! .�.tiq_�-`'_ ��,���� a �r. A MESSAGE FROM THE GENERAL MANAGER entral Contra Costa Sanitary District ' (Central San)is pleased to present our Fiscal Year 2020-22 Strategic Plan. This Plan,developed in collaboration with the District's Board of Directors, serves as a guide that will enable us to fulfill our r� mission while keeping us laser-focused on our vision. Where We Have Been Central San has been fulfilling our mission to protect public health and the environment since 1946. Over , the last 74 years,we have grown along with the communities we serve. Today we collect and clean more than 13 billion gallons of wastewater every year for nearly half a million residents and more than 3,000 businesses. We have a proven record of excellence that includes more than two decades of 100% , compliance with our National Pollutant Discharge Elimination System permit—the • longest successful streak of any wastewater agency in California and among the top 20 in the nation.We also provide innovative recycled water, household hazardous waste, and pharmaceutical collection programs, as well as award-winning public ' outreach and student educational programs. ■ We are very proud of the recognition and awards Central San has received over the years for innovation and excellence from regional, state, and national associations. These accomplishments have been the result of our skilled and knowledgeable workforce, our focus on continuous improvement, and our effective use of technology in all areas of operation. Where We Are Going In December 2019,the Board of Directors reaffirmed our mission to protect public health and the environment. They also adopted revised vision,values, and goals ' reflecting our continuing commitment to environmental stewardship, innovation,fiscal prudence, and putting people first, including our customers, employees, and the community. Using the six goals set by our Board and the Effective Utility Management (EUM)framework as a guiding tool,we established 17 key strategies and 38 initiatives to address current and future challenges facing Central San. We will assess the progress of these initiatives every quarter using key success 1 measures. In addition,we will track other key performance metrics related to the overall goals.We will continue to strive for excellence in all that we do,with a keen • focus on being accessible, being responsive, and delivering the highest quality service to our customers. ' Roger S. Bailey _ General Manager i l May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 8 of 63 w d*A Page f 30 %7: � rS 1 JV _z- May 5, 2020 Regular/ D Page 7 TABLE OF • 71 Introduction0) Our • Mission, The Strategic • Process Effective Utility Management Goal 1 — CUSTOMER AND COMMUNITY- Provide exceptional service �h • maintain an excellent reputation • sustainabilityGoal 2 — ENVIRONMENTAL STEWARDSHIP- 0 requirements and promote 0 • •. RESPONSIBILITY- Man.•- finances wisely and prudently highlyGoal 4 — WORKFORCE DEVELOPMENT- Recruit, empower, and engage :1 -• and safe workforcerp •.l 5 — INFRASTRUCTURE RELIABILITY: and (D equipment to be dependable, resilient, and long lasting.. . . . . . . . . . . . . .. 15 Goal 6 — INNOVATION AND OPTIMIZATION: Explore new technologies for • •us improvem U) LIST OF ACRONYMS FOUND IN THIS DOCUMENT AWWA—American Water Works Association DERWA—Dublin San Ramon Services District-East Bay BLS— Bureau of Labor Statistics Municipal Utility District Recycled Water Authority CaIWARN —California Water/Wastewater Agency Response ERP—Enterprise Resource Planning Network EUM—Effective Utility Management CARB—California Air Resources Board FY—Fiscal Year CCWD—Contra Costa Water District GHG—Greenhouse Gas CIB—Capital Improvement Budget HHW— Household Hazardous Waste CIP—Capital Improvement Program HR—Human Resources CMMS—Computerized Maintenance Management System kWh— Kilowatt-Hour CO2e—Carbon Dioxide Equivalent MT—Metric Tons CSO—Collection System Operations NACWA— National Association of Clean Water Agencies CWMP—Comprehensive Wastewater Master Plan QA/QC—Quality Assurance/Quality Control SSC—Sewer Service Charge '4 l af Ak CENTRAL SAN OVERVIEW Suisun Bay stablished in 1946, Central San is a special district of the State of California. Special districts are local 4 Pittsbu public agencies formed by residents of a community Martinez to provide a specific service.We provide wastewater collection,treatment, and disposal services; recycled water Concord production and distribution; and household hazardous waste Pieasant Riii - collection.We maintain more than 1,500 miles of underground ciayt°° sewer pipes and 18 pumping stations to collect and carry Walnut Creek wastewater to our regional treatment plant in Martinez. te Lafayette We serve nearly half a million residents and more than 3,000 2d. • Orinda businesses within a 145-square-mile service area,which includes Alamo, Danville, Lafayette, Moraga, Orinda, Pleasant Moraga Hill,Walnut Creek; portions of Martinez and San Ramon; and Danville unincorporated communities within central Contra Costa County. Central San also cleans the wastewater from the cities 1 of Concord and Clayton,who own and maintain their own San Ramon collection systems. 1 OUR STRUCTURE ' entral San is governed by a five- Board - .- member Board of Directors • elected at large by voters to _ serve four-year terms.The staff is managed by a General Manager who General Manager serves as the Chief Operating Officer, • implements the Board's policies,and • oversees the business of Central San. Deputy The organization is divided into three Director of Operations departments—Finance and • Administration, Engineering and secretary Director Director • Technical Services,and Operations— _ _ring _ _ and _ each overseen by the Deputy Districtof and � • - � District General Manager or a Director _ who manages day-to-day operations. May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 11 of 63 14 Page 9 of 30 THE STRATEGIC VISION, MISSION , PLANNING VALUES PROCESS OUR VISION hen developing the Strategic Plan,we To •- an • -•• • organization kn• used the Effective Utility Management for environmental st- • • innovation, • (EUM)model as an overarching tool . delivering - -. • • - - at (see page 4).The EUM was developed by the responsible rates Environmental Protection Agency and several major water sector associations in 2007 The framework • — MISSION encompasses ten attributes that serve as a blueprint for where effectively managed utilities To protect public healthand the environment should focus and what they should aim to achieve. As Central San strives to provide exceptional OUR VALUES service at reasonable rates,we face challenges similar to those facing other water-sector Respect • _ • employees agencies across the country.These challenges rk effectively efficiently include aging infrastructure, robust regulatory _ame requirements, emergency response and U) resilience, and fiscal and environmental Celebrate our _ • learn sustainability.The goals,strategies, initiatives, and from our - •- • key success measures in this Strategic Plan are designed to help us to meet these challenges, accomplish our mission, and serve our community sectorrate with water in the most efficient and cost-effective ways. • • partners Foster community • • Be open,transparent, and accessible Understand service level expectations 1 0 Be truthful • honest Be fair, kind, and friendly Take ownership and responsibility1 Promote a passionate and empowered Y 1 workforce Encourage continuous growth and f • i -development Inspire dedication • • •G - •i ^00- ` a. May 5, 2020 Regular ADMIN Committee Meeting Al - �'cke .P e 12 of 63 Page 10 of 30 EFFECTIVE UTILITY MANAGEMENT Product Quality ' Produces"fit for purpose"water that meets or exceeds full compliance with regulatory and reliability requirements and is consistent with customer, public health,ecological,and economic needs. Customer Satisfaction Provides reliable, responsive, and affordable services in line with J, explicit,customer-derived service levels. i Employee and Leadership Development Recruits and retains a workforce that is competent, motivated, adaptive, - and safety focused. n Operational Optimization Ensures ongoing,timely, cost-effective, reliable, and sustainable performance improvements in all facets of its operations in service to ' public health and environmental protection. E: Financial Viability Understands the full life-cycle cost of utility operations and the value of water resources. Infrastructure Strategy and Performance • Understands the condition of and costs associated with critical infrastructure assets. Enterprise Resiliency Ensures that utility leadership and staff work together internally, and with external partners,to anticipate, respond to, and avoid problems. - Water Resource Sustainability Ensures the availability and sustainable management of water for its ANcommunity and watershed, including water resource recovery. Community Sustainability Takes an active leadership role in promoting and organizing community sustainability improvements through collaboration with local partners. Stakeholder Understanding and Support Engenders understanding and support from stakeholders(anyone who can affect or be affected by the utility),including customers, oversight bodies,community and watershed interests,and regulatory bodies for service levels, rate structures,operating budgets,capital improvement programs,and risk management decisions. MvWV, 2020 Re DMIN Committee Meeting Agenda Packet- Page 13 of 63 Fier-oi YEAR GOAL 1: Customer and Community Provide exceptional customer service and maintain _ an excellent reputation GOAL 2: Environmental Stewardship Strive to meet regulatory requirements and '•• promote sustainability GOAL 3: Fiscal Responsibility Manage finances wisely and prudently GOAL 4:Workforce Development Recruit,empower, and engage a highly trained and safe workforce } J GOAL 5: Infrastructure Reliability Maintain facilities and equipment to be N dependable, resilient, and long lasting GOAL 6: Innovation and Optimization 1 J Explore new technologies for continuous ~� N improvements 0 Ma: `• • z1G M1 A1& 1 Page 12 of 30 GOAL 1: Customer and Community: Provide exceptional customer service and maintain an excellent reputation IF1 `a a • r _ x t sc� -;P W I r 4 _ STRATEGY 1 — Deliver High-Quality Customer Service QProvide 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. © 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. © 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. May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 15 of 63 Page 13 of 30 STRATEGY 2 - Maintain a Positive Reputation Form and maintain relationships with federal, state, and local elected officials and • stakeholders. KEY SUCCESS MEASURES , • Meet regularly with elected officials and stakeholders. • 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. © 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. ©Support member organizations and sister agencies. KEY SUCCESS MEASURES 3 • Take leadership roles in, participate in, attend meetings of, and share lessons learned from industry ' organizations. • Serve on oral boards, grant mutual aid through CalWARN, and provide other assistance as requested. • Continue to achieve recognition highlighting industry-leading work through member organization programs. , Average onsite response time for collection system emergency <30 minutes 0 calls, during working hours - . Average onsite response time for collection system emergency <40 minutes calls, after hours Average customer service rating for emergency calls >_3.8 out of 4.0 3 Average customer satisfaction rating on construction projects >_95% Average customer satisfaction rating on permit counter >95% 3 interactions Students served by education programs >_6,000 Participants in Plant/ Household Hazardous Waste Collection >500 Facility tours and District presentations rp Participants in Central San Academy >_35 "Awardsr recognitions received >_10 May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 16 of 63 Page 14 of 30 GOAL 2: Environmental Stewardship: Meet regulatory requirements • and promote sustainability STRATEGY 1 — Achieve 100% Compliance in All Regulations OComply 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 through optimized rehabilitation, replacement, and cleaning. ©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. ©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. :•.y I • 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 QFoster 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. Track proposed and pending legislation or regulatory changes; © plan for possible implementations. 4 � KEY SUCCESS MEASURES r • Log,analyze, review,and comment on proposed legislation and regulations that have a direct impact on District operations,as appropriate. I R • Support key legislative and advocacy initiatives through customer communications and outreach. • Incorporate potential impacts of regulatory changes into long-range infrastructure and financing plans. a May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 17 of 63 Page 15 of 30 STRATEGY 3 Support Regional Development of Local Water Supply QExplore and advance partnering opportunities. • KEY SUCCESS MEASURES , • Develop and execute a contract for the refinery 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 DERWAs peak summer irrigation demand. • Facilitate innovative and financially viable recycled water solutions (e.g.,the Diablo Country Club demonstration satellite water r recycling facility). ©Continue to provide recycled water to residents and businesses; evaluate and process new customer requests. KEY SUCCESS MEASURES • Bid the Filter Plant and Clearwell Improvements Project. • • Continue to operate and maintain a reliable recycled water distribution system for Zone 1 customers. r • Continue the Residential Recycled Water Fill Station and Commercial Recycled Water Truck Fill Programs. 3 STRATEGY 4 — Reduce Reliance on Non-Renewable Energy rp QExplore opportunities for renewable energy generation, conservation, and efficiency. KEY SUCCESS MEASURES • Track and review energy usage; continue to explore ways to U) optimize efficiency. rt _ • Replace lighting and heating,ventilation,and air conditioning with - newer,more efficient fixtures and equipment at the Martinez campus. iy + • Implement an onsite solar energy project. it� 1 ;' 1 - -- • w- • N Committee Meeting Agenda Packet- Page 18 of 63 Page 16 of 30 GOAL 2: Environmental Stewardship: Meet regulatory • requirements and promote sustainability National Pollutant Discharge Elimination System compliance Zero violations Title V compliance Zero violations Recycled Water Title 22 compliance Zero violations Anthropogenic GHG emissions <25,000 metric tons (MT) CO2e per calendar year • Sanitary sewer overflows <2.0 spills per 100 miles of pipeline Spills to public water <3 Percent of spills less than 500 gallons >_95% Pipeline cleaning schedules completed on time >-98% Pipeline cleaning quality assurance/quality control (QA/QC) On >_4% of pipelines cleaned on an annual basis Pipeline cleaning QA/QC passing rate >-98% Annual Environmental Compliance inspections and permitting 100% • completed on time Household Hazardous Waste (HHW) management compliance Zero violations Gallons of recycled water distributed to external customers >_240 million gallons 3 kWh of electricity produced by co-generation using natural gas >_18 million kWh ' (reported as a rolling average) kWh of solar power produced at Collection System Operations >-220,000 kWh and HHW Facility (reported as a rolling average) kWh of solar power produced by a new solar array near the >-2.5 million kWh 1 treatment plant campus (reported as a rolling average) rt 1 10 May 5, 2020 Regular ADMIN Committee Meeting Agenda,Pac age 9 o 3- . . 1! 1 �_ Page 17 of 30 GOAL 3: Fiscal Responsibility: Manage finances wisely and prudently or • y STRATEGY 1 — Maintain Financial Stability and Sustainability OConduct 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 Capital Improvement Program (CIP). • Pursue State Revolving Fund loan and grant opportunities, as appropriate. • Issue debt as needed, consistent with Board direction and the debt management policy. © 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. © 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 • the 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. 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. • Develop and implement an equipment identification and tracking system. May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 20 of 63 Page 18 of 30 GOAL 3: Fiscal Responsibility: Manage finances wisely and prudently • STRATEGY 2 — Ensure Integrity and Transparency in Financial Management OConfirm 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. © 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. ' Sewer Service Charge (SSC) less than average of Bay Area agencies Maintain service affordability SSC plus Ad Valorem tax less than average of Bay Area agencies <0.78%of median household income • Standard & Poor's and Moody's credit ratings AAA/Aa1 Debt service coverage ratio >2.0 Actual reserves as a percentage of target 100% Operating expenditures as a percentage of operating >95% • budget Reported material weaknesses or significant deficiencies in internal controls as part of annual Zero financial audit Difference in inventory value in Purchasing database <1% vs.value submitted to Accounting Accuracy of physical inventory count vs. book value >_95% May 5, 2020 Regular ADMIN Committ eeting Agen a a _ r� Page 19 of 30 GOAL 4: Workforce Development: Recruit, empower, and engage a highly trained and safe workforce r�`f-Y•y Y•T - : -i� - _f - - - - - - nvr r • t w STRATEGY 1 — Proactively Plan for Future Operational Staffing Needs QContinue 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. © 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 aCultivate 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 inter- departmental communication and collaboration. • Use the performance evaluation process to establish and communicate clear expectations and standards. • Continue General Manager lunches with the division workgroups. ©Sustain and grow collaborative relationships with the bargaining units. 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. May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 22 of 63 Page 20 of 30 GOAL 4: Workforce Development: Recruit, empower, and engage a highly trained and safe workforce • STRATEGY 3 — Inspire Employee STRATEGY 4 — Meet or Exceed Engagement Industry Safety Standards QExpand employees' understanding of Improve consistently in comparison to Bureau Central San's operations and their role of Labor Statistics(BLS)industry injury rates. in the agency's success. KEY SUCCESS MEASURES KEY SUCCESS MEASURES • Continue to monitor accident/incident causes 0 • Communicate important initiatives and to identify and mitigate hazards. information to employees via print and electronic • Continue to provide regular analysis summaries media,including the Lateral Connection employee newsletter and the intranet. to the District Safety Committee,Safety Teams, and Management Team on accident/incident • Expand the onboarding process. causation and corrective measures. • Provide presentations on major projects or Enhance the safety culture through training in specialty areas(e.g.,Purchasing,HR) © improved training and communications. to divisions upon request. KEY SUCCESS MEASURES • • Survey employees for customer satisfaction with internal support services. • Increase visibility of Safety staff in the field. 77 • Use learning management system to provide and -mhCelebrate employees' achievements. track employee safety training. © KEY SUCCESS MEASURES • • Continue to conduct training based upon • Recognize employee achievements via articles accident/incident causal factors, new in the Lateral Connection,the intranet, Board processes, equipment, or procedures. meeting announcements, and other avenues. • Continue to provide relevant information via • Initiate an employee recognition program. safety publications and,when appropriate, a • Hold a yearly event to recognize innovative Safety Corner in the Lateral Connection. . employees going above and beyond to improve • Continue to provide information on upcoming safety- and optimize their work. related regulations to supervisors and managers. ZT Average time to fill vacancy(from request to hire) <_60 days Turnover rate at or below median for combined utilities <6.5% 70 via American Water Works Association (AWWA) 3 >_15 per full-time Average annual training hours (external and internal training) equivalent employee ( Completion of annual performance evaluations 100% Participation in annual Wellness Expo Increase by>_10%each year Workers' compensation experience modifier <_1.0 Temporary modified duty provided (Return to Work program) >_95% of recordable injuries Internal promotions (excludes entry-level positions) >_25% Formal grievances processed Zero Employee injury and illness lost time incident rate <4.0 (via BLS) <5.6 (via AWWA) May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 23 of 63 Page 21 of 30 GOAL 5: Infrastructure Reliability: Maintain facilities and equipment to be dependable, resilient, and long lasting • l STRATEGY 1 — Manage Assets Optimally to Prolong Their Useful Life OContinue 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. © 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 asset condition monitoring 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 system (CMMS)to track work orders. • Transfer Pumping Stations maintenance program to CMMS. STRATEGY 2 — Execute Long-Term Capital Renewal and Replacement Program QIntegrate 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 CIR • Develop a prioritization model for vertical assets. © 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. May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 24 of 63 Page 22 of 30 GOAL 5: Infrastructure Reliability: Maintain facilities and equipment to be dependable, resilient, and long lasting • STRATEGY 3 - Protect Personnel and Assets from Threats and Emergencies 1 Q 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 CalWARN 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. © 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. Safety-prioritized work orders completed on time 100% Regulatory Title V work orders completed on time 100% ' Planned treatment plant preventative maintenance >90% completed on time Recycled water distribution system maintenance schedules >98% completed on time Uptime for vehicles 100% Miles of sewers replaced or rehabilitated >6.0 (focused on deteriorated small diameter pipelines) Large diameter and force main condition assessment >_3 miles per year for the next five years starting in FY 2020-21 Average time to execute Engineering agreements from <2 weeks complete package submittal or Board approval Capital expenditures as a percentage of capital budgeted >90% cash flow including carry forward Information system outages affecting normal business 100% uptime operations Data backup and recovery Zero lost data May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 25 of 63 Page 23 of 30 GOAL 6: Innovation and Optimization: Explore new technologies for continuous improvement WR STRATEGY 1 — Implement the Central San Smart Initiative QUtilize 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 Implement new ERP system,including permitting software,and integrate with linked systems. rt KEY SUCCESS MEASURES • Address e-procurement,contract management,and procurement card system needs. • Evaluate,select,and implement new SSC billing software. 3 • Leverage software towards the elimination of paper processes. • Update procedures to reflect new business workflows. Evaluate and invest in cost-effective and innovative technology to enhance business processes. rt © KEY SUCCESS MEASURES • Hold Applied Research meetings to promote innovation and continuous improvement. 0 • 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. May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 26 of 63 Page 24 of 30 GOAL 6: Innovation and Optimization: Explore new technologies for continuous improvement • STRATEGY 2 — Improve and Modernize Operations through Technology and Efficiency Measures © 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. Projects initiated under Central San Smart >_3 1 Reviews or pilot tests of new and promising technology >_3 Research papers and findings presented >_3 papers or presentations Don't Just Fix It; Improve It work orders completed >_35 Completed optimizations >_20 1 • -Nomad& i rf i _ a May 5, 2020 Regular ADMIN Committee Meeting Agenda Packet- Page 27 of 63 Page of CENTRAL SAN FY20 �22 Strateg 'ic Plan L ks iA .i x. l :r{.. ��"�'s" .. : •.k:7�: �`� . a•' f: rp'" - - ,z -. y�r ~.K - t LT. ry r + .-YF rR E>< �l- ``• b° r.s� Y ,yI r ^. .�e -� 16 .����' i'-fir. .• v; :�'` - �• •t: r �•"*+..fir •_ <.- "-�'_' •`;•_.. �+: �'•;-; �'�' •'rte 4 .. _ x .. T ..-- �` - - ::'dSi,j•;at7.yc.1�- - - �y - .. '.•- . • SCI l . Our key values: People, Community, Principles, and Leadership & Commitment. We are dedicated to conducting our daily business within the framework of these values. ��=CD CENTRAL SAN SANITARY DISTRICT 5/4/2020 Item 4.a. (Updated Presentation) FISCAL YEARS 2020-22 STRATEGIC PLAN — Administration Committee Meeting , May 5, 2020 = Christina Gee, Management Analyst — a 1 STRATEGIC PLANNING TIMELINE STR�GIC FLAN DIY A 18 20 Today: Administration Mar.3,2020: Committee Administration review of final Feb.2020: Committee draff FY 2020-22 Leadership Team reviewed draft Strategic Plan for refined Goals, recommendation Dec.19,2019: Strategies, Strategies, to the full Board Board Initiatives, Initiatives,Key Success re-adopted Key Success Mission and Measures,and Measures,and Nov.4,2019: Key Metrics r fo ° Board adopted Metrics incorporation provided input revised Vision, into Budget on Mission, Values,Goals `!t Vision,Values, and Goals ' z 2 1 � 1 1 KEY CHALLENGES FOR Balancing• the need for financial resourcesagainst impacts • the customer • System optimization and utilization of C • Data • Driving employee performance and rewarding excellence • Evolving -• • requirements •Aging infrastructure Maintaining• Climate resiliency • a sustainable water supply � S CENTRALSAN r oAl S- VISION, MISSION, VALUES OUR MISSION To prntort public health inn the environment OUR VISION to❑�-an n ,6,!ry-leaning oryaniteuon known for environmental stewardship, Innovation,and delivering exceptional customer service at responsible rates OUR VALUES PEOPLE COMMUNITY PRINCIPLFS LEADERSHIPAND Respect customers •Collaborate With Be truthful and COMMf ENT and employees water sector honest Promote a passionate workeHecWely partners Be fair,kind,and and empowered and efficiently as a •Foster community frientlly worMorce team relationships .Take ownership and Encourage continuous celebrate our •Be open,transparent. responsibility growth an successes and and accessible development learn from our Inspire dedication and challenges •Understand expectations service top-quality results level expe[laliOns Provide a safe and healthful environment 5/4/2020 EFFECTIVE UTILITY MANAGEMENT (EUM) TEN KEY ATTRIBUTES • Product Quality • Customer Satisfaction • Employee and Leadership Development • Operational Optimization • Financial Viability • Infrastructure Strategy and Performance Effective Utility Management • Enterprise Resiliency • Community Sustainability • Water Resource Sustainability • Stakeholder Understanding and Support L%---rvncwn �•- =_ � . _ ` 5 CENTPALSAN STRATEGIC PLAN COMPONENTS GOALS set high-level direction for " the Strategic Plan STRATEGIES outline the approach to achieve the goals Fiscal Year 2020.22 INITIATIVES describe the actions GOAtS needed to implement the strategies KEY SUCCESS MEASURES provide examples of how initiatives can be accomplished KEY METRICS quantify and track progress for evaluation Vi 6 6 3 5/4/2020 MAIN UPDATES TO STRATEGIC PLAN • Goals were reworded for simplicity and communicability • Goals 2 and 6 were reworked • Goal 2 now includes environmental protection and sustainability efforts • Goal 6 is now solely dedicated to optimization and innovation •Strategies, Initiatives, and Key Success Measures were updated to reflect current priorities •Some key metrics were adjusted CENTPALSAN QUESTIONS? CENTRALSAN I $ 8 4