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HomeMy WebLinkAbout05.c. Review draft Strategic Plan for Fiscal Years 2022-24 Page 1 of 26 Item 5.c. CENTRAL SAN Y-109-ITMEN ME April 12, 2022 TO: ADMINISTRATION COMMITTEE FROM: CHRISTINA GEE, MANAGEMENT ANALYST REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ROGER S. BAILEY, GENERAL MANAGER SUBJECT: REVIEW DRAFT STRATEGIC PLAN FOR FISCAL YEARS (FY) 2022-24 I n 2021, the Board held strategic planning meetings facilitated by Central San's consultant, Larry Bienati, Ph.D. of Bienati Consulting Group. These discussions resulted in a re-adoption of Central San's Mission and an update of its Vision, Values, and Goals. The updates reaffirmed Central San's commitment to the environment and sustainability and added diversity, equity, inclusion, governance, and security to the list of priorities. With this framework in place, Managers and key staff conducted workshops to revise the Strategies, Initiatives, Key Success Measures, and Key Metrics of the current FY 2020-22 Strategic Plan for FY 2022-24. The Strategies outline Central San'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 been developed with the Effective Utility Management (EUM)framework in mind. The EUM was originally developed in 2007 by the American Water Works Association (AWWA), United States (U.S.) Environmental Protection Agency(EPA), and nine other association partners representing the U.S. water and wastewater sector. The framework outlines Ten Attributes of Effectively Managed Water Sector Utilities which provide succinct focus areas for effectively managed utilities and what they should strive to achieve. With these attributes in mind, Central San ensures that achievements are made comprehensively in strategic operational areas. Attached for Committee review is the Goals, Strategies, Initiatives, Key Success Measures and Key Metrics document (Attachment 1), which constitutes the text of the Strategic Plan. For reference, the document notes changes made to the FY 2020-22 key metrics and targets in blue italicized text. The document also provides the FY 2020-21 performance against the targets where data was available. Neither of these elements will appear in the final FY 2022-24 Plan. Staff will be available at the meeting to answer any questions and receive feedback from the Committee. The proposed final FY 2022-24 Strategic Plan will be presented to the Board for review and adoption in May. In the meantime, the draft FY 2022-24 Initiatives and Key Metrics will be incorporated into the FY 2022-23 Budget. April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 49 of 76 Page 2 of 26 ATTACHMENTS: 1. Draft Goals, Strategies, Initiatives, Key Success Measures, and Key Metrics April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 50 of 76 Page 3 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL ONE — CUSTOMER AND COMMUNITY Provide exceptional service Strategy 1 — Deliver High-quality Customer Service 1. Provide core service of collecting and treating wastewater, along with value- added programs. Key Success Measures • Assess customer satisfaction and develop inventive ways to meet those expectations. • Respond in a timely manner to requests for service. • Continue to administer customer-facing 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. Strategy 2 — Promote Initiatives to Advance Affordable and Equitable Access to Services 1. Perform extensive customer and community outreach. Key Success Measures • Conduct public tours and presentations highlighting infrastructure investments. • Host Central San Academy annually. • Develop engaging videos, publications, and brochures. • Expand social media outreach. 2. Maintain responsible rates and offer services at affordable levels. Key Success Measures • Conduct a Cost-of-Service Study. • Perform annual reviews of rate structure and fees. • Administer financing programs. 1 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 51 of 76 Page 4 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review Strategy 3 — Build Neighborhood and Industry Relationships 1. Form and sustain relationships with federal, state, and local elected officials and stakeholders. Key Success Measures • Connect and engage elected officials, staff, and stakeholders on initiatives. • Support Board Member engagement with elected officials. 2. Support member organizations and sister agencies. Key Success Measures • Participate in industry organizations and forums. • Provide assistance and mutual aid to other agencies. • Share industry-leading work. 2 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 52 of 76 Page 5 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL ONE — CUSTOMER AND COMMUNITY— KEY METRICS Metric Target FY 2020-21 Performance Average onsite response time <_30 minutes 34.4 minutes for collection system emergency calls, during working hours Average onsite response time <_40 minutes 33.995 minutes for collection system emergency calls, after hours Average customer service rating >_3.8 out of 4.0 3.73 out of 4.0 for emergency calls Average customer satisfaction rating >_95% 96.5% on construction projects Average customer satisfaction rating >_95% 94.8% on permit counter interactions Sewer Service Charge affordability <2% —0.96% per EPA (Environmental Protection Agency Lowest Quintile (or lower than Lowest Quintile Residential Indicator) High Impact) Residential (new metric) Indicator (Not a metric in the FY 2020-22 Strategic Plan) Participants in public tours >_500 633 and presentations Participants in Central San Academy >_35 33 Awards or recognitions received >_10 13 3 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 53 of 76 Page 6 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL TWO — ENVIRONMENTAL STEWARDSHIP Meet regulatory requirements, promote sustainability, and identify and reduce contributions to climate change Strategy 1 —Achieve Compliance in All Regulations 1. Comply with all applicable regulations. Key Success Measures • Continue to attain National Association of Clean Water Agencies (NACWA) Platinum Peak Performance Awards. • Continue to keep sanitary sewer overflows at a reduced level. • Scope improvements to the Solids Handling Facilities. • Upgrade aeration tank diffusers to continue proper biological treatment and prepare to meet future discharge limitations. 2. Foster relationships with regulatory agencies. Key Success Measures • Participate in Bay Area Clean Water Agencies, California Association of Sanitation Agencies, NACWA, and other like organizations. • Communicate with and participate in meetings and workshops with local, state, and federal regulatory bodies. 3. Participate in legislative and regulatory processes. Key Success Measures • Track, review, and comment on proposed legislation and regulations. • Support key advocacy initiatives through customer communications and outreach. • Incorporate potential impacts of regulatory changes into long-range infrastructure and financing plans. Strategy 2 — Educate on Pollution Prevention and Environmental Protection 1. Provide industry-leading public and student education programming. Key Success Measures • Present student education programs that meet the Next Generation Science standards. • Conduct creative public education outreach that encourages positive customer behavioral changes. 4 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 54 of 76 Page 7 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review Strategy 3 — Be a Partner in Regional Development of Local Water Supply 1. Explore and advance cooperative opportunities. Key Success Measures • Develop and execute a contract for the Refinery Recycled Water Exchange Project with Contra Costa Water District (CCWD) and Valley Water(and/or other interested water supply agencies). • Continue to work with CCWD and the City of Concord in plans to supply recycled water to the Concord Community Reuse Project. • Continue to divert raw wastewater to produce recycled water to meet Dublin San Ramon Services District— East Bay Municipal Utility District Recycled Water Authority (DERWA)'s peak summer irrigation demand, per the Agreement. • Facilitate recycled water solutions (e.g., satellite water recycling facilities), consistent with the Guiding Principles. 2. Continue to provide recycled water to residents and businesses; evaluate and process new customer requests. Key Success Measures • 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. • Complete Phase 1A of the Filter Plant and Clearwell Renovations Project. • Complete the Tertiary Membrane Filter Pilot. Strategy 4 — Identify and Advance Sustainability Initiatives, Including Reducing Energy Usage and Emissions 1. Reduce reliance on non-renewable energy and responsibly manage greenhouse gas (GHG) emissions. Key Success Measures • Implement the 1.75-megawatt solar energy project on the Lagiss property. • Evaluate electric vehicle charging stations on site. • Maximize landfill gas usage in daily operations and by capital improvements. • Complete the long-term Biosolids Handling and Disposal Evaluation feasibility study and investigate how anaerobic digestion may potentially reduce anthropogenic carbon from treatment plant energy supply by producing biogas. • Continue to track and report GHG emissions. 5 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 55 of 76 Page 8 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review 2. Explore opportunities for cost-effective energy conservation and efficiency. Key Success Measures • Track and review energy usage; evaluate ways to optimize efficiency in accordance with Board policies. • Replace incandescent lighting and air conditioning equipment with energy- efficient devices. • Assess and replace the existing disinfection system with the latest ultraviolet high-efficiency lamps. 3. Expand internal sustainability practices. Key Success Measures • Restart the Green Team to solicit organization-wide ideas. • Promote environmentally conscious behavior in day-to-day operations. • Advance circular economies with suppliers and contractors towards a smaller ecological footprint. 6 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 56 of 76 Page 9 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL TWO — ENVIRONMENTAL STEWARDSHIP — KEY METRICS Metric Target FY 2020-21 Performance National Pollutant Discharge Elimination 0 violations 0 violations System compliance Recycled Water Title 22 compliance 0 violations 0 violations (2 excursions in Calendar Year(CY) 2020 but no comments or notice of violation received) Title V compliance 0 violations 1 notice of violation Regulatory Title V work orders 100% 93% completed on time Anthropogenic GHG emissions 525,000 metric tons (MT) 23,771 MT CO2e in COze per calendar year CY 2020. On track to meet CY 2021 target. Sanitary sewer overflows :51.3 spills 1.50 spills per 100 per 100 miles of pipeline miles of pipeline (formerly 5_2.0 spills per 100 miles of pipeline) Spills to public water :51 2 (formerly<_3) Spills greater than 500 gallons 153 87.0% (formerly percentage of spills (formerly>95% of spills (percentage of spills less than 500 gallons) less than 500 gallons) less than 500 gallons) Sanitary sewer overflows resulting from 0 Not a metric in the construction work FY 2020-22 (new metric) Strategic Plan 7 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 57 of 76 Page 10 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL TWO — ENVIRONMENTAL STEWARDSHIP — KEY METRICS (CONTINUED) Metric Target FY 2020-21Performance Annual Environmental Compliance 100% 100% inspections and permitting completed on time Household Hazardous Waste (HHW) 0 violations 0 violations management compliance Students served by education programs >_6,000 21 ,673 Gallons of recycled water >_240 million gallons 245 million gallons distributed to external customers kWh of electricity >_18 million kWh (reported 22.7M kWh produced by co-generation using natural gas as a rolling average) (reported as a rolling average) kWh of solar power >_220,000 kWh (reported as 272,000 kWh produced at Collection System Operations a rolling average) (reported as a rolling and HHW Facility average) kWh of solar power >_2.5 million kWh Project still on track produced by a new solar array near the (reported as a rolling to start in Q4 of FY treatment plant campus average) 2021-22 8 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 58 of 76 Page 11 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL THREE —WORKFORCE DIVERSITY AND DEVELOPMENT Recruit, educate, empower, and retain a workforce from diverse backgrounds Strategy 1 — Recruit from a Diverse Pool of Qualified Applicants 1. Broadly solicit applications to hire a diverse staff who embody Central San's values. Key Success Measures • Post job opportunities in a variety of places. • Offer internships in cross-disciplinary positions. • Host the Externship Program for college students and recent graduates. • Collaborate with schools and/or apprenticeship programs as requested to form a talent pipeline. • Continue participation in intra-agency workforce development efforts. Strategv 2 — Engage Employees and Conduct Labor Relations in a Transparent, Effective, and Collaborative Environment 1. Promote employee engagement and inspire dedication. Key Success Measures • Foster a sense of community through internal events, team-building exercises, the employee newsletter, and increased interdepartmental cooperation. • Establish and communicate clear expectations and standards through performance planning and appraisals. • Convey important initiatives to employees to increase their understanding of Central San's operations and their role in its success. • Host General Manager lunches with the division workgroups. 2. Celebrate employees' achievements. Key Success Measures • Recognize staff accomplishments via newsletters, the intranet, Board announcements, and other avenues. • Expand the employee recognition program. • Continue to hold the Innovations Fair, which recognizes and thanks employees for innovative projects. 9 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 59 of 76 Page 12 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review 3. Sustain and grow collaborative relationships with the bargaining units. Key Success Measures • Engage the bargaining units in informal discussions to implement collaborative solutions to workplace issues. • Track and implement action items from quarterly Labor Management Committee meetings. • Continue General Manager and Board Member meetings with the bargaining representatives. Strategy 3 — Retain Skilled Workers by Investing in Resources and Opportunities for All Employees to Grow and Thrive 1. Develop employees to meet their full potential and fill future leadership roles. Key Success Measures • Continue the Leadership and Supervisory Academies, Mentorship Program, and Career Development Program. • Encourage staff to obtain professional or technical certifications and registrations. • Perform appraisals with a coaching and career development approach. • Continue to host and participate in multiagency workforce development programs for staff from Central San and sister agencies. • Continue to expand internal training opportunities. 2. Support the mental and physical wellbeing of all employees. Key Success Measures • Offer comprehensive benefits such as online therapy services and the Employee Assistance Program. • Encourage participation in the Wellness Program. • Hold financial and health seminars. Strategy 4 — Foster a Culture of Diversity, Equity, and Inclusion 1. Build a diverse workplace that celebrates differences and is inclusive of individual perspectives, ideas, and values. Key Success Measures • Conduct an assessment to identify strengths and weaknesses. • Promote inclusivity and a sense of belonging through leadership. • Encourage and respectfully acknowledge the voicing of different views and perspectives. 10 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 60 of 76 Page 13 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL THREE —WORKFORCE DIVERSITY AND DEVELOPMENT — KEY METRICS Metric Target FY 2020-21 Performance Average time to fill vacancy :560 days 70.9 days (from request to hire) Turnover rate at or below 56.5% 6.8% (incl. retirees) median for combined utilities 2.2% (excl. retirees) Average annual training hours >15 13.74 per employee (external and internal training) Completion of 100% 88.6% performance evaluations Temporary modified duty provided >-95% of recordable 100% (Return to Work program) injuries Internal promotions >_25% 47.1% (excludes entry-level positions) Formal grievances processed Zero Zero Participation in annual Wellness Expo +>-10% each year 45 participants at the Wellness Clinic that was offered in lieu of the Expo. (Compared to the 2020 Expo attendance, this is -53.1%) 11 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 61 of 76 Page 14 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL FOUR— GOVERNANCE AND FISCAL RESPONSIBILITY Uphold integrity, transparency, and wise financial management in an effective governing model Strategv 1 — Promote and Uphold Ethical Behavior, Openness, and Accessibility 1. Govern and operate with honor and transparency. Key Success Measures • Support Central San's values and conduct all business in an ethical manner. • Update website with the latest Board agendas, public notices, financial documents, and other content. • Respond promptly to Public Records Act requests. • Renew California Special District Leadership Foundation Transparency Certificate of Excellence. 2. Produce accurate, timely, and meaningful financial reports. Key Success Measures • Issue the Annual Financial Report no later than six months after the end of the fiscal year. • Earn the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation Award. • Continue to evolve the enterprise resource planning (ERP) software and associated systems to meet reporting needs. Strategy 2 — Encourage and Facilitate Public Participation 1. Support the elections process. Key Success Measures • Promote voter registration efforts. • Enable voting through a secure, public ballot drop box on campus. • Conduct first by-district election. 2. Encourage civic engagement. Key Success Measures • Adhere to the Brown Act to provide public access to meetings. • Livestream Board meetings online. • Maintain the virtual Customer Experience website. • Host public events. 12 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 62 of 76 Page 15 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review Strategy 3 — Maintain Financial Stability and Sustainability 1. Conduct long-range planning. Key Success Measures • Mitigate rate increases by leveraging financing opportunities. • Develop scenarios to utilize debt prudently in financing the 10-Year Capital Improvement Plan (CIP). • Pursue State Revolving Fund loan and grant opportunities, as appropriate. 2. Ensure resiliency against recession or other economic events. Key Success Measures • Fund Rate Stabilization Account and Pension and Other Post-Employment Benefits Trust with available funds from favorable year-end variances. • Strive towards full funding of employee-related obligations in accordance with Board policies. 3. Manage costs. Key Success Measures • Develop budgets in alignment with the Strategic Plan, Enterprise Risk Management, and 10-Year Financial Plan. • Disseminate relevant and reliable interim financial information to management for monitoring and controlling of their respective cost centers. • Pursue efficiencies and new technology for cost control. • Promote open competition and equal opportunity for qualified suppliers and service providers by soliciting and awarding high-level service and commodity-based contracts. • Utilize annual requirements contracts to improve efficiency and savings through negotiated pricing. • Complete annual Benchmarking Study to identify potential gaps. 13 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 63 of 76 Page 16 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL FOUR— GOVERNANCE AND FISCAL RESPONSIBILITY — KEY METRICS Metric Target FY 2020-21 Performance Compliance with Public Records Act 100% Not a metric in the requests on time FY 2020-22 Strategic Plan (new metric) Board meeting videos posted online 100% 100% (new metric) (Not a metric in the FY 2020-22 Strategic Plan) Standard and Poor's / AAA/Aa1 AAA/Aa1 Moody's credit ratings Debt service coverage ratio >-2.0 27.9 Debt as a percentage of total assets :560% Not a metric in the (new metric) FY 2020-22 Strategic Plan Debt financing :560% Not a metric in the of prior 10 years' CIP spending FY 2020-22 Strategic Plan (new metric) Debt financing as a percentage >_100% Not a metric in the of projected 10-year CIP FY 2020-22 Strategic Plan (new metric) Total revenue funded CIP as a percentage >_100% Not a metric in the of collection system spending FY 2020-22 Strategic Plan in past 10 years (new metric) Total revenue funded CIP as a percentage :560% Not a metric in the of collection system spending FY 2020-22 Strategic Plan in 10-year CIP (projection) (new metric) O&M reserves >_41 .7% of next (Not a metric in the (new metric) year's budget FY 2020-22 Strategic Plan) 14 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 64 of 76 Page 17 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL FOUR— GOVERNANCE AND FISCAL RESPONSIBILITY — KEY METRICS (CONTINUED) Metric Target FY 2020-21 Performance Sewer Construction reserves >_50% of next 136.5% (non-debt financed) year's budget (Not a metric in the (new metric) FY 2020-22 Strategic Plan) Operating expenditures 90-100% 95.3% as a percentage of Board-approved (formerly>_95%) operating budget Financial reports disseminated 100% 100% every month and quarter (Not a metric in the (new metric) FY 2020-22 Strategic Plan) Reported material weaknesses or Zero Zero significant deficiencies in internal controls as part of annual financial audit Average cost per overflow claim 5$25,000 $6,941 (new metric) (Not a metric in the FY 2020-22 Strategic Plan) Purchasing requisitions completed within >_80% Not a metric in the standard processing time FY 2020-22 Strategic Plan (new metric) 15 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 65 of 76 Page 18 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL FIVE — SAFETY AND SECURITY Provide a safe, secure, and healthful workplace that foresees and addresses threats Strategy 1 — Reduce and Eliminate Risks of Injury or Illness 1. Maintain low injury and illness rates in a safe workplace. Key Success Measures • Monitor accident/incident causes to identify and mitigate hazards. • Provide regular analyses 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. Key Success Measures • Increase visibility of Safety staff in the field. • Conduct training based upon accident/incident causal factors, new processes, equipment, or procedures. • Notify supervisors and managers promptly of upcoming safety-related regulations. Strategy 2 — Protect Personnel and Assets from Threats and Emergencies 1. Evaluate and apply risk management practices. Key Success Measures • Maintain and report on the Enterprise Risk Management Program and risk inventory. • Develop annual internal audit plans based on risk assessments. • Test and improve internal controls to mitigate risks of loss. • Address findings from regular internal and external audits. 2. 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 Ca1WARN to represent the needs of wastewater agencies in emergency planning and responses. • Cross-train staff in mission-critical functions. 16 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 66 of 76 Page 19 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review 3. Evaluate and implement improvements to meet new or evolving threats. Key Success Measures Budget and complete 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. Strategy 3 — Understand and Reduce Impacts of Cybersecurity Attacks 1. Stay updated on the latest trends and emerging threats in cybersecurity. Key Success Measures • Conduct third-party cybersecurity assessments focusing on technology, people, and physical assets. • Share news and tips with staff. 2. Prevent, detect, and remediate effects of attacks. Key Success Measures • Keep safeguards in place to block and filter attacks. • Measure and reduce employee susceptibility to phishing. • Upgrade network and equipment to create redundant paths. 17 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 67 of 76 Page 20 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL FIVE — SAFETY AND SECURITY— KEY METRICS Metric Target FY 2020-21 Performance Safety-prioritized work orders 100% 87.0% completed on time Employee injury and illness 153.3 0.73 lost time incident rate Workers' compensation experience modifier :51.0 1.10 Days to implement approved :560 1560 Safety Suggestions (Not a metric in the (new metric) FY 2020-22 Strategic Plan) Contractors/consultants in compliance >_70% Not a metric in the with insurance requirements FY 2020-22 Strategic Plan (new metric) Information system outages 100% uptime 100% uptime affecting normal business operations Data backup and recovery 0 lost data 1 minor data loss incident Employees trained in cybersecurity awareness 100% Not a metric in the (new metric) FY 2020-22 Strategic Plan 18 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 68 of 76 Page 21 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL SIX— INFRASTRUCTURE RELIABILITY Maintain facilities and equipment to be dependable, resilient, and long lasting Strategy 1 — Manage Assets Optimally 1. Incorporate Asset Management practices into the Capital Improvement and Maintenance Programs. Key Success Measures • Formalize a condition assessment process for each asset class and complete condition assessments on all critical equipment. • Conduct Failure Mode & Effects and other reliability-based analyses as part of key Capital Improvement projects. • Report, analyze, and identify corrective actions to eliminate or mitigate the recurrence of the failure of key and critical assets. • Complete Planner Updates to work orders and use other feedback mechanisms for continuous improvement. • Optimize rehabilitation, replacement, and cleaning of pipelines. 2. Develop reliability-centered asset management strategies. Key Success Measures • Perform strategic reliability-based analysis on treatment plant process systems. • Deploy condition-based and predictive-based technologies across asset classes. • Develop Asset Health Indicator Requirements and an Asset Tool Framework. • Add service contracts to computerized maintenance management software (CMMS) to track work orders. • Transfer Pumping Stations Operations preventative maintenance work orders to CMMS by the end of 2022. Strategy 2 — Execute Long-Term Capital Renewal and Replacement Program 1. Perform capital improvements in accordance with the Comprehensive Wastewater Master Plan (CWMP) and Asset Management Program findings. 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 and update the risk model. • Maintain and evolve tools for effective financial and project management of the capital program. 19 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 69 of 76 Page 22 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review 2. Harden infrastructure against resiliency risks associated with climate change, earthquakes, and energy availability. Key Success Measures • Identify vulnerable assets and develop mitigation measures. • Update the CWMP Technical Memo (TP8) on Resiliency and Vulnerability. • Improve the wet weather basins, berms, and levees to reduce risk of flood damage in extreme wet weather. • Seismically retrofit the Laboratory and Maintenance Reliability Center buildings. • Complete renovation of steam and aeration blower operations to increase capacity during energy outages. 20 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 70 of 76 Page 23 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL SIX — INFRASTRUCTURE RELIABILITY — KEY METRICS Metric Target FY 2020-21 Performance Planned treatment plant >_90% 94% preventative maintenance completed on time Planned recycled water distribution system >_98% 100% preventative maintenance completed on time Planned collection system preventative >_98% 99.36% maintenance completed on time Pipeline cleaning On >A% of pipelines 3.68% quality assurance / quality control (QA/QC) cleaned on an annual basis Pipeline cleaning QA/QC passing rate >_98% 96.03% Uptime for vehicles 100% 100% Miles of sewers replaced >_6.0 8.7 miles (focused on deteriorated small diameter pipelines) Large diameter and force main >_3 miles per year Inspections have condition assessment not yet begun Average time to execute Engineering agreements <_2 weeks Data not yet from complete package submittal available Contract renewals executed on time 100% Not a metric in the for uninterrupted service FY 2020-22 (new metric) Strategic Plan Approved request-to-stock items entered in 100% Not a metric in the databases within 5 business days FY 2020-22 (new metric) Strategic Plan Capital expenditures >_90% 64.11% as a percentage of capital budgeted cash flow including carry forward 21 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 71 of 76 Page 24 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL SEVEN — INNOVATION AND AGILITY Optimize operations for continuous improvement, and remain flexible and adaptable Strategy 1 — Leverage Data Analytics to Become a More Efficient Utility 1. Develop performance metrics related to key operational systems. Key Success Measures • Assess existing process performance metrics and current analyses for meeting continuous monitoring and controls verification for existing processes. • Develop recommendations for top-ranked metrics and analytics. 2. Deploy improved monitoring and performance tracking and analytics. Key Success Measures • Design and implement new instrumentation for improved monitoring, control, and optimization. • Assess and pilot test digital monitoring and cloud analytics to leverage machine learning where effective and applicable. • Integrate data collection and analysis for key business areas. • Develop reporting dashboards to show strategic, tactical, and operational levels. • Continue Central San Smart initiatives and meetings. Strategy 2 — Implement Organization-Wide Optimization 1. Evaluate the treatment process and carry out recommendations for optimization. Key Success Measures • Develop best practices guidance for process control. • Conduct a review and ranking of current versus target treatment efficiencies. • Identify conceptual improvements and their potential efficiencies. • Form an implementation plan and schedule of recommended opportunities. • Communicate progress and results on process measures. 2. Support innovation in capital and operational improvements. Key Success Measures • Continue the Optimizations, Applied Research, and Smart Initiative programs. • Provide Optimizations Program Annual Reports to Board. 22 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 72 of 76 Page 25 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review • Develop and begin implementing the Technology Master Plan. • Automate the Treatment Plant Asset Handover Process and track completion of key points along the workflow. • Evaluate and use geocoding/barcodes to tag and track plant assets. • Implement a barcode Warehouse inventory program to fully automate all issues, receipts, and inventory cycle counts. 3. Continue to configure new ERP system to meet evolving needs. Key Success Measures • Evaluate, select, and implement new Sewer Service Charge billing software. • Implement Permitting and Community Development software. • Utilize digital database storage and retrieval to eliminate paper processes. • Create procedures to reflect new business workflows. • Improve Maintenance, Repair, and Operations metrics monitoring. Strategy 3 — Be Adaptable, Resilient, and Responsive 1. Make sound decisions when faced with unforeseen events. Key Success Measures • Identify key operational decisions. • Develop Decision Analytics support documentation. • Gather and use information to make data-driven assessments. • Discuss best practices with sister agencies. 2. Develop and employ improved operational decision support systems and approaches where practicable. Key Success Measures • Design and perform Failure and Response Evaluations of major operational upsets. • Implement the Jarvis Operations Response software pilot. 23 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 73 of 76 Page 26 of 26 Draft of FY 2022-24 Strategic Plan For Administration Committee review GOAL SEVEN — INNOVATION AND AGILITY— KEY METRICS Metric Target FY 2020-21 Performance Projects initiated under Central San Smart >_3 4 Improved process monitoring or >_3 control loops Not a metric in the performance reporting FY 2020-22 (new metric) Strategic Plan Reviews or pilot tests >_3 6 of new and promising technology Research papers and findings presented >_3 papers or 3 presentations Don't Just Fix It; Improve It >_35 14 work orders completed Completed optimizations >_20 20 24 April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 74 of 76