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HomeMy WebLinkAbout10. Consider adoption fo the proposed Strategic Plan for Fiscal Years 2022-24 Page 1 of 31 Item 10. CENTRALSAN jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT May 26, 2022 TO: HONORABLE BOARD OF DIRECTORS FROM: CHRISTINA GEE, MANAGEMENT ANALYST REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION ROGER S. BAILEY, GENERAL MANAGER SUBJECT: CONSIDER ADOPTION OF THE PROPOSED STRATEGIC PLAN FOR FISCAL YEARS (FY) 2022-24 Central San updates its strategic plans on a two-year cycle, and the current Fiscal Years (FY) 2020-22 Strategic Plan will come to an end on June 30, 2022. 1 n 2021, staff and the Board began development of the next Strategic Plan, for FY 2022-24. 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 the following to its strategic priorities: reducing contribution to climate change and mitigating its impacts; workforce diversity; governance; civic engagement; safety; and security. 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 to meet the Mission, Vision, Values, and Goals set by the Board for FY 2022-24. The result is a detailed accounting of what Central San will be achieving in the next two FY to continuously improve through innovation and optimization; perform at a world-class level; pursue excellence in every strategic goal; and maintain high- quality, reliable customer service at affordable rates. 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. The FY 2022-24 Strategic Plan draws from the work accomplished under the FY 2014-16, 2016-18, 2018-20, and 2020-22 Strategic Plans. 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 has developed goals in each of the areas specified. May 26, 2022 Special Board Meeting Agenda Packet- Page 75 of 532 Page 2 of 31 The Goals, Strategies, Initiatives, Key Success Measures and Key Metrics were reviewed by the Administration Committee at its April 12, 2022 meeting. Staff is recommending that the Board adopt the FY 2022-24 Strategic Plan (Attachment 1). The Administration Committee will be given updates on a quarterly basis on the progress of each goal and strategy through the fulfillment of the key success measures and metrics. The Board will receive an Annual Report each year detailing strategic accomplishments and progress. ATTACHMENTS: 1. FY 2022-24 Strategic Plan 2. Presentation May 26, 2022 Special Board Meeting Agenda Packet- Page 76 of 532 F� 2022 -24 ST EGIC s*45 D �P CENTRAL SAN nt�a/COntra Costa Sanaa<`IO`S A ROADMAP FOR MEETING OUR CHALLENGES, ACCOMPLISHING OUR MISSION, ' � s AND SERVING OUR COMMUNITY IN THE . MOST EFFICIENT AND COST— EFFECTIVE WAYS , Y f y l Ah , f A 1 Page 4 of 31 A MESSAGE FROM THE GENERAL MANAGER entral Contra Costa Sanitary District (Central San) is pleased to present our Fiscal Year 2022-24 Strategic Plan. Meeting tomorrow's challenges requires focused leadership,sound planning,and financial savvy. Developed in collaboration with our Board of Directors,this plan serves as a roadmap for how we will fulfill our mission and prepare for the future while maintaining our culture of excellence. Where We Have Been For over 75 years,Central San has provided safe and reliable wastewater coll and treatment for the people of central Contra Costa County.Today we serve nearly half a million residents and more than 3,000 businesses.We also offer innovative recycled water and household hazardous waste programs,as well as award-winning public outreach and student education programs.Our track record includes 23 consecutive years of 100%compliance with our National Pollutant Discharge Elimination System permit—the longest success streak of any wastewater utility in California. The past two years of the COVID-19 pandemic have been some of the most difficult we have faced. Yet,we've been able to provide these critical services without interruption,adapt our work processes to safely meet our customers' needs,and contribute to the emerging science of wastewater-based epidemiology—all while making significant headway on our strategic goals. Where We Are Headed We're drawing upon that same source of agility and innovation to plan for and respond to emerging issues.We're upgrading aging infrastructure to ensure our system is reliable and resilient.We're pursuing new technologies and efficiencies to help us make the most of each customer dollar without compromising service.And we're evaluating and implementing new solutions to meet increasingly rigorous regulatory requirements,conserve energy, prepare for climate change,and expand the use of recycled water in our community. In December 2021,the Board reaffirmed our mission to protect public health and the environment.They also adopted revised vision,values,and goals reflecting our ongoing commitment to our customers, employees,community,and planet.This Strategic Plan outlines the specific strategies and initiatives we will employ in pursuit of our goals and the key success measures and metrics we will use to chart our progress. We have a lot of work ahead of us, but we look forward to continuing to provide Roger S. Bailey our customers with the highest value and reliable service. General Manager SAN ITA - G�NTRAL,GapyYRA :.�357n - "' May 26,.2022 Special Board Mee TABLE OF CONTENTS D Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2 Our Vision, Mission,Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. r 3 m The Strategic Planning Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 O Effective Utility Management 4 -n Fiscal Year 2022-2024 Strategic Plan Goals 5 l Goal 1 - CUSTOMER AND COMMUNITY: Provide exceptional service 6 O Z Goal 2- ENVIRONMENTAL STEWARDSHIP: Meet regulatory requirements, promote sustainability,and identify and reduce contributions m to climate change and mitigate its impacts . . . . . . . . . . . .. 8 Z Goal 3- WORKFORCE DIVERSITY AND DEVELOPMENT: Recruit, educate, -4 empower, and retain a workforce from diverse backgrounds 11 Goal 4- GOVERNANCE AND FISCAL RESPONSIBILITY: Uphold integrity,transparency, and wise financial management in an effective governing model 13 Goal 5- SAFETY AND SECURITY: Provide a safe, secure, and healthful workplace that foresees and addresses threats 15 Goal 6 - INFRASTRUCTURE RELIABILITY: Maintain facilities and equipment to be dependable, resilient, and long lasting 17 Goal 7- INNOVATION AND AGILITY: Optimize operations for continuous improvement,and remain flexible and adaptable 19 LIST OF ACRONYMS FOUND IN THIS DOCUMENT CalWARN —California Water/Wastewater Agency Response EUM—Effective Utility Management Network FY—Fiscal Year CCWD—Contra Costa Water District GHG—Greenhouse Gas CIP—Capital Improvement Program HHW—Household Hazardous Waste CMMS—Computerized Maintenance Management System IT—Information Technology CO2e—Carbon Dioxide Equivalent kWh—Kilowatt-Hour CWMP—Comprehensive Wastewater Master Plan MT—Metric Tons DERWA— Dublin San Ramon Services District-East Bay NACWA—National Association of Clean Water Agencies Municipal Utility District Recycled Water Authority QA/QC—Quality Assurance/Quality Control ERP—Enterprise Resource Planning _7M - - atm Page 6 of 31 CENTRAL SAN OVE RVI EW stablished in 1946, Central San is a special district of the State of California. Special districts are •Martinez Clyde local public agencies formed by residents of • Ea community to provide a specific service.We provide wastewater collection,treatment,and disposal . Pacheco •Concord services; recycled water production and distribution; • and household hazardous waste collection.We Pleasant Hill • maintain more than 1,500 miles of neighborhood sewer Clayton pipes and 18 pumping stations to collect and carry Walnut Creek wastewater to our regional treatment plant in Martinez. Orinda Lafayette • © We serve nearly half a million residents and more than •Alamo 3,000 businesses within a 146-square-mile service area, •Moraga 0 Diablo which includes Alamo, Danville, Lafayette, Moraga, Danville Orinda, Pleasant Hill,Walnut Creek; portions of Martinez • and San Ramon; and unincorporated communities San Ramon within central Contra Costa County. Central San also cleans the wastewater from the cities of Concord and Clayton,who own and maintain their own collection systems. OUR OUR CUSTOMERS STRUCTURE • entral San is governed by a Board _ • _ rs five-member Board of Directors elected by voters to serve four-year terms.The staff is • managed by a General Manager Secretary of General - • who serves as the Chief Operating the District Managerthe District Officer, implements the Board's policies,and oversees the business of Central San. The organization is divided into three departments-Finance and Director • Administration, Engineering and Engineering , _ of Technical Services,and Operations- and Director of each overseen by a Director who Technical Operations • manages day-to-day operations. Services © May 26, 2022 Special Board Meeting Agenda Packet- Page 80 of 532 Page 7 THE STRATEGIC MISSION, VISION, PLANNING VALUES PROCESS OUR MISSION V) hen developing the Strategic Plan,we To protect public "' • • the environment used the Effective Utility Management (EUM) model as an overarching tool : • .VISION• .tive .ustry ".." (see page 4).The EUM was developed by the r in Environmental Protection Agency and several environmental stewardship • • sustainability, major water sector associations in 2007.The while _ _ _ _ framework encompasses ten attributes that delivering ' ' ' ' serve as a blueprint for where effectivelyresponsible rates managed utilities should focus and what 0 they should aim to achieve. OUR VALUES Z our core values guide our daily decisions and 14 As Central San strives to provide exceptional � _ fulfill � mission,ur vision,and goals service at reasonable rates,we face challenges similar to those facing other water- 0 CUSTOMER ► sector agencies across the country.These We _ responsive challenges include aging infrastructure,robust ' � ' customers, ' ' _ deliver regulatory requirements,emergency responsecommitment ' provide and resilience,and fiscal and environmental safe, reliable,andcost-efficient sustainability.The goals,strategies,initiatives, EMPLOYEES and key success measures in this Strategic Plan are designed to help us to meet these We empower our employees • • • their challenges,accomplish our mission,and serve best work. our community in the most efficient and cost- effective ways. INTEGRITY We hold ourselves accountable to a high dard of honesty,reliability, transparency. INNOVATION f' We continuously improve and optimize our operations. � % ENVIRONMENTAL SUSTAINABILITY We conduct our business to safeguard • • improve our • • I EQUITY, INCLUSION r - 1 - value people • all •• • • •• f -cultures, • • perspectives, • • r rcommitte - - - - ;,_ ¢ � Aow 333333 , - -. May 26, 2022 Special Board Meeting Agenda Packefz- 1 of.532 Page 8 of 31 EFFECTIVE UTILITY MANAGEMENT OProduct Quality Produces potable water,treated effluent,and process residuals in full compliance with regulatory and reliability requirements and consistent with customer,public health,and ecological needs. •Customer Satisfaction Provides reliable,responsive,and affordable services in line with explicit,customer- accepted service levels.Receives timely customer feedback to maintain responsiveness to customer needs and emergencies. ® Employee and Leadership Development Recruits and retains a workforce that is competent,motivated,adaptive,and safe-working. Establishes a participatory,collaborative organization dedicated to continual learning and improvement.Ensures employee institutional knowledge is retained and improved upon over time.Provides a focus on and emphasizes opportunities for professional and leadership development and strives to create an integrated and well-coordinated senior leadership team. OOperational Optimization Ensures ongoing,timely,cost-effective,reliable,and sustainable performance improvements in all facets of its operations.Minimizes resource use,loss,and impacts from day-to-day operations.Maintains awareness of information and operational technology developments to anticipate and support timely adoption of improvements. �! f Financial Viability Understands the full life-cycle cost of the utility and establishes and maintains an effective balance between long-term debt,asset values,operations and maintenance expenditures, and operating revenues.Establishes predictable rates—consistent with community expectations and acceptability—adequate to recover costs,provide for reserves,maintain I support from bond rating agencies,and plan and invest for future needs. j O Infrastructure Stability VT. Understands the condition of and costs associated with critical infrastructure assets. Maintains and enhances the condition of all assets over the long-term at the lowest r possible life-cycle cost and acceptable risk consistent with customer,community,and regulator-supported service levels,and consistent with anticipated growth and system reliability goals.Assures asset repair,rehabilitation,and replacement efforts are coordinated within the community to minimize disruptions and other negative consequences. Operational Resiliency " I Ensures utility leadership and staff work together to anticipate and avoid problems.Proactively tii identifies,assesses,establishes tolerance levels for,and effectively manages a full range of Oilj business risks(including legal,regulatory,financial,environmental,safety,security,and natural disaster-related)in a proactive way consistent with industry trends and system reliability goals. i ■ Q Water Resource Adequacy 1 . 4 Ensures water availability consistent with current and future customer needs through long-term resource supply and demand analysis,conservation,and public education. ' Explicitly considers its role in water availability and manages operations to provide for I.• long-term aquifer and surface water sustainability and replenishment. OCommunity Sustainability Is explicitly cognizant of and attentive to the impacts its decisions have on current and long-term future community and watershed health and welfare.Manages operations,infrastructure,and investments to protect,restore,and enhance the natural environment,efficiently uses water and energy resources;promotes economic vitality, and engenders overall community improvement.Explicitly considers a variety of pollution prevention,watershed,and source water protection approaches as part of an overall strategy to maintain and enhance ecological and community sustainability. Stakeholder Understanding and Support Engenders understanding and support from oversight bodies,community and watershed interests,and regulatory bodies for service levels,rate structures,operating budgets,capital improvement programs,and risk management decisions.Actively O involves stakeholders in the decisions that will affect them. Board Meeting Agenda Packet- Page 82 of 532 �,, `i.' � .-� ; r - •"5;.o- ". it :s r: •: i Met 7411 �►aw =Q.. _ . FISCAL YEAR 2022-24 GOALS :; F GOAL 1:Customer and Community Provide exceptional service GOAL 2:Environmental Stewardship Meet regulatory requirements,promote . sustainability,and identify and reduce contributions to climate change and mitigate its impacts GOAL 3:Workforce Diversity&Development Recruit,educate,empower,and retain a workforce from diverse backgrounds GOAL 4:Governance&Fiscal Responsibility Uphold integrity,transparency,and wise financial management in an effective governing model GOAL 5:Safety&Security Provide a safe,secure,and healthful workplace that foresees and addresses threats GOAL 6:Infrastructure Reliability Maintain facilities and equipment to be dependable,resilient,and long lasting GOAL 7:Innovation&Agility Optimize operations for continuous improvement, and remain flexible and adaptable O Page 10 of 31 GOAL 1: CUSTOMER AND COMMUNITY PROVIDE EXCEPTIONAL SERVICE STRATEGY 1 -Deliver High-Quality Customer Service 0 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. © 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 OPerform extensive customer and Maintain responsible rates and community outreach. offer services at affordable levels. KEY SUCCESS MEASURES KEY SUCCESS MEASURES • Conduct public tours and presentations • Conduct a Cost-of-Service Study. highlighting infrastructure investments. • Perform annual reviews of rate • Host Central San Academy annually. structure and fees. • Develop engaging videos, publications, • Administer financing programs. and brochures. • Expand social media outreach. 40 1 lu"M �...:.� ......... ..... tt - � M OMay 26, 2022 Sp I Board Meeting Agenda Packet- Page 84 of 532 Page 1 STRATEGY 3 - Build Neighborhood and Industry Relationships OForm and sustain relationships with federal,state,and local elected officials 0 and stakeholders. KEY SUCCESS MEASURES • Connect and engage elected officials, staff, and stakeholders on initiatives. • • Support Board Member engagement with elected officials. © 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. 0 Average onsite response time for collection system emergency calls, during working hours ``-30 minutes Average onsite response time for collection <40 minutes system emergency calls, after hours Average customer service rating for emergency calls 23.8 out of 4.0 • Average customer satisfaction rating on 295% construction projects Average customer satisfaction rating on 295% permit counter interactions Sewer Service Charge affordability (Environmental Protection A ency Lowest <2% (or lower than High Impact) Quintile Residential Indicator Participants in public tours 2500 and presentations Participants in Central San Academy >35 Awards or recognitions received '10 Ad L CONE RIM Y E►¢ O Page 12 of 31 GOAL 2: ENVIRONMENTAL STEWARDSHIP MEET REGULATORY REQUIREMENTS, PROMOTE SUSTAINABILITY, AND IDENTIFY AND REDUCE CONTRIBUTIONS TO CLIMATE CHANGE AND MITIGATE ITS IMPACTS STRATEGY 1 -Achieve Compliance in All Regulations OComply 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 0 meet future discharge limitations. ` © 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. © 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 OProvide 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. STRATEGY 3 - Be a Partner in Regional Development of Local Water Supply OExplore and advance cooperative opportunities. KEY SUCCESS MEASURES • Continue exploring partnerships with • Collaborate with East Bay Municipal Utility Contra Costa Water District (CCWD), District (EBMUD) on a potable reuse study. Santa Clara Valley Water District (Valley • Continue to divert raw wastewater to Water) and San Francisco Public Utilities produce recycled water to meet Dublin San Commission (SFPUC) to advance the Ramon Services District - East Bay Refinery Recycled Water Exchange Project. Municipal Utility District Recycled Water • Continue to work with CCWD Authority (DERWA)'s peak summer irrigation and the City of Concord in plans to demand, per the Agreement. supply recycled water to the Concord • Facilitate recycled water solutions (e.g., Community Reuse Project. satellite water recycling facilities), Q consistent with the Guiding Principles. 6 2022 Special Board Meetina Agenda Packet- Pacie 86 of 532 Page 1 STRATEGY 3 - Be a Partner in Regional Development of Local Water Supply © 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 lA 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 OReduce reliance on non-renewable energy and responsibly manage greenhouse gas (GHG) emissions. KEY SUCCESS MEASURES • Develop a policy on net zero carbon footprint. • 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 long-term Biosolids Handling and Disposal Evaluation feasibility study ► and investigate how anaerobic digestion may potentially reduce anthropogenic F carbon from treatment plant energy supply by producing biogas. • Continue to track and report GHG emissions. © 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. © 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. t I 20 e O Page 14 of 31 GOAL 2: ENVIRONMENTAL STEWARDSHIP (cont'd) MEET REGULATORY REQUIREMENTS, PROMOTE SUSTAINABILITY, AND IDENTIFY ► AND REDUCE CONTRIBUTIONS TO CLIMATE CHANGE AND MITIGATE ITS IMPACTS National Pollutant Discharge Elimination System 0 violations compliance Recycled Water Title 22 compliance 0 violations M • Title V compliance 0 violations Regulatory Title V work orders completed on time 100% <-25,000 metric tons (MT) CO2e per Anthropogenic GHG emissions calendar year Sanitary sewer overflows s1.3 spills per 100 miles of pipeline 17— Spills to public water <<-1 Spills greater than 500 gallons s3 Sanitary sewer overflows resulting from 0 construction work Annual Environmental Compliance inspections 100% and permitting completed on time Household Hazardous Waste (HHW) 0 violations management compliance • Students served by education programs ?6,000 Gallons of recycled water distributed to >-240 million gallons external customers Electricity produced by co-generation using 218 million kilowatt hours (kWh) natural gas (reported as a rolling average) Solar power produced at Collection System >-220,000 kWh Operations and HHW Collection Facility (reported as a rolling average) Solar power produced by a new solar array near the >2.5 million kWh treatment plant campus (reported as a rolling average) ^I _ 1 Page 1 0 . . D - ' • y STRATEGY 1 - Recruit from a Diverse Pool of Qualified Applicants OBroadly 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. STRATEGY 2 - Engage Employees and Conduct Labor Relations in a Transparent, Effective,and Collaborative Environment OPromote 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. © Celebrate employees' ©Sustain and grow collaborative • achievements. relationships with the bargaining units. KEY SUCCESS MEASURES KEY SUCCESS MEASURES • Recognize staff accomplishments • Engage the bargaining units in informal via newsletters,the intranet, discussions to implement collaborative Board announcements,and solutions to workplace issues. other avenues. • Track and implement action items from • Expand the employee quarterly Labor Management Committee recognition program. meetings. • Continue to hold the Innovations • Continue General Manager and Board I Fair,which recognizes and thanks Member meetings with the bargaining employees for innovative projects. representatives. I May 26, 2022 Special Board Meeting Agenda Packet- Page 89 of 532 Page 16 of 31 GOAL 3: WORKPLACE DIVERSITY AND DEVELOPMENT STRATEGY 3 -Retain Skilled Workers by Investing in Resources and Opportunities for All Employees to Grow and Thrive 17— O Develop employees to meet their full potential and fill future leadership roles. KEY SUCCESS MEASURES • Continue the Leadership and Supervisory • Continue to host and participate in M Academies, Mentorship Program, and multiagency workforce development Career Development Program. programs for staff from Central San and • Encourage staff to obtain professional or sister agencies. technical certifications and registrations. • Continue to expand internal training • Perform appraisals with a coaching and opportunities. career development approach. 0 Support the mental and physical wellbeing of all employees. © KEY SUCCESS MEASURES OF • Offer comprehensive benefits such as • Encourage participation in the Wellness online therapy services and the Program. Employee Assistance Program. • Hold financial and health seminars. STRATEGY 4 - Foster a Culture of Diversity, Equity,and Inclusion 0 Build a diverse workplace that celebrates differences and is inclusive of individual perspectives,ideas,and values. KEY SUCCESS MEASURES • Conduct an assessment to identify • Encourage and respectfully acknowledge the strengths and weaknesses. voicing of different views and perspectives. • Develop programs/initiatives with metrics • Promote inclusivity and a sense of based on the outcomes of the assessment. belonging through leadership. . Average time to fill vacancy <-60 days (from request to hire) 7� Turnover rate <-6.5% (including retirements) • Average annual training hours per employee >15 (external and internal training) • Completion of performance evaluations 100% Temporary modified duty provided 295% of (Return to Work program) recordable injuries Internal promotions 2:25% (excludes entry-level positions) Formal grievances processed Zero Participation in annual Wellness Expo +>_10% each year _M ® *45 participants at the Wellness Clinic that was offered in lieu of the Expo.(Compared to the 2020 Expo attendance,this is-53.1%) May 26, 2022 Special Board Meeting Agenda Packet- Page 90 of 532 Page 1 o� g r �g 2S GOAL 4: GOVERNANCE & FISCAL RESPONSIBILITY • UPHOLD INTEGRITY, TRANSPARENCY, AND WISE FINANCIAL MANAGEMENT IN AN EFFECTIVE GOVERNING MODEL STRATEGY 1 - Promote and Uphold Ethical Behavior, Openness,and Accessibility OGovern and operate with honor and transparency. KEY SUCCESS MEASURES • Support Central San's values and • Respond promptly to Public Records conduct all business in an ethical manner. Act requests. • Update website with the latest Board • Renew California Special District ► agendas, public notices,financial Leadership Foundation Transparency documents, and other content. Certificate of Excellence. © 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 OSupport the elections process. © Encourage civic engagement. ► KEY SUCCESS MEASURES KEY SUCCESS MEASURES • Promote voter registration efforts. • Adhere to the Brown Act to provide public • Enable voting through a secure, access to meetings. public ballot drop box on campus. • Livestream Board meetings online. • Conduct first by-district election. • Maintain the virtual Customer Experience website. • Host public events. • STRATEGY 3 - Maintain Financial Stability and Sustainability OConduct long-range planning. KEY SUCCESS MEASURES • Mitigate rate increases by leveraging financing opportunities. • Actively pursue state and • Develop scenarios to utilize debt prudently in financing federal funding via loans the 10-Year Capital Improvement Plan (CIP). and grants. © 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. May 26, 2022 Special Board Meeting Agenda Packet- Page 91 of 532 Page 18 of 31 GOAL 4: GOVERNANCE & FISCAL RESPONSIBILITY STRATEGY 3 (cont'd) - Maintain Financial Stability and Sustainability © Manage costs. • Promote open competition and equal KEY SUCCESS MEASURES opportunity for qualified suppliers and service providers by soliciting and • Develop budgets in alignment with the Strategic Plan, awarding high-level service and Enterprise Risk Management,and 10-Year Financial Plan. commodity-based contracts. • Disseminate relevant and reliable interim financial • Utilize annual requirements contracts information to management for monitoring and to improve efficiency and savings controlling of their respective cost centers. through negotiated pricing. • Pursue efficiencies and new technology for cost control. • Complete annual Benchmarking Study to identify potential gaps. M Compliance with Public Records Act requests on time 100% ► Board meeting videos posted online 100% Standard and Poor's / Moody's credit ratings AAA/Aal Debt service coverage ratio >-2.0 Debt as a percentage of total assets <-60% 0 Debt financing of prior 10 years'CIP spending <-60% Debt financing as a percentage of projected 10-year CIP <-60% Total revenue funded collection system CIP spending >-100% ► in past 10 years 17— Total revenue funded collection system spending >-100% M in 10-year CIP (projection) O&M reserves >-41.7% of next year's budget • • Sewer Construction reserves ?50% of next year's budget (non-debt financed) Operating expenditures as a percentage of 90-100% Board-approved operating budget Financial reports disseminated 17— every month (summary) and quarter (full) 100% Reported material weaknesses or significant deficiencies Zero in internal controls as part of annual financial audit Average cost per overflow claim <-$25,000 Purchasing requisitions completed within standard processing time >>-80% May 26, 2022 Special Board Meeting Agenda Packet- Page 92 of 532 Q ❑ ❑ U 4 0 0 4 + pp + Cy 0 0 0 GOAL 5: 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 OMaintain 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. © 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 OEvaluate 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. © Enhance capability to mitigate,prepare for,respond to,&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 California Water/Wastewater Agency Response Network (CalWARN)to represent the needs of wastewater agencies in emergency planning and responses. • Cross-train staff in mission-critical functions. May 26, 2022 Special Board Meeting Agenda Packet- Page 93 of 532 Page 20 of 31 GOAL 5: SAFETY AND SECURITY STRATEGY 2 -Protect Personnel and Assets from Threats and Emergencies © Evaluate and implement improvements to meet new or evolving threats. KEY SUCCESS MEASURES • Budget and complete the projects identified in the Security Action 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 OStay updated on the latest trends and emerging threats in cybersecurity. KEY SUCCESS MEASURES • Address cybersecurity concerns as part of the Information Technology(IT) Strategic Plan. • Conduct third-party cybersecurity assessments focusing on technology, people,and physical assets. • Share news and tips with staff. © 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. Safety-prioritized work orders completed on time 100% Employee injury and illness lost time incident rate Q.3 • Workers' compensation experience modifier <-1.0 Days to implement approved Safety Suggestions <-60 Contractors/consultants in compliance with >70% VV insurance requirements Information system outages affecting normal 100% uptime business operations Data backup and recovery 0 lost data Employees trained in cybersecurity awareness 100% May 26, 2022 Special Board Meeting Agenda Packet- Page 94 of 532 1VJ SPAC . PERMIT L0 L T 7 J v A l GOAL 6: INFRASTRUCTURE RELIABILITY ► MAINTAIN FACILITIES AND EQUIPMENT TO BE DEPENDABLE, RESILIENT, AND LONG LASTING STRATEGY 1 -Manage Assets Optimally OIncorporate 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. © 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 OPerform 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. May 26, 2022 Special Board Meeting Agenda Packet- Page 95 of 532 Page 22 of 31 STRATEGY 2 -Execute Long-Term Capital Renewal and Replacement Program © 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 (78) 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. Planned treatment plant preventative >_90% maintenance completed on time Planned recycled water distribution system >98% preventative maintenance completed on time Planned collection system preventative >_98% V maintenance completed on time Pipeline cleaning On >-4% of pipelines cleaned quality assurance / quality control (QA/QC) on an annual basis ► Pipeline cleaning QA/QC passing rate 298% �• Pipeline inspected through Closed Circuit Television Program 10% inspected (150 miles) Uptime for vehicles 100% Miles of sewers replaced (focused on >-6.0 deteriorated small diameter pipelines) Large diameter and force main >_3 miles per year condition assessment Average time to execute Engineering agreements <_2 weeks from complete package submittal Contract renewals executed on time 100% for uninterrupted service Approved request-to-stock items entered in 100% databases within 5 business days Capital expenditures as a percentage of capital >90% budgeted cash flow including carry forward lip May 26, 2022 Special Board_Meetin.g'Agerid Racket- Pa 96 of 532 '� i ge 2 GOAL 7: INNOVATION AND AGILITY OPTIMIZE OPERATIONS FOR CONTINUOUS IMPROVEMENT, AND REMAIN FLEXIBLE AND ADAPTABLE ► STRATEGY 1 -Leverage Data Analytics to Become a More Efficient Utility ODevelop performance metrics related to key operational systems. KEY SUCCESS MEASURES ► • Review plant process control loops and evaluate and rank based on potential cost savings. • Assess existing monitoring,metrics,and controls for those processes with greatest optimization potential and develop recommendations for improvements. © Deploy improved monitoring and performance tracking and analytics. KEY SUCCESS MEASURES • Design and implement new real-time control systems 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 reporting performance of key business areas. • Develop new reporting dashboards to track strategic,tactical,and operational performance metrics. STRATEGY 2 -Implement Organization-Wide Optimization OEvaluate 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. • Develop an implementation plan and schedule of recommended opportunities. • Communicate progress and results on process measures. May 26, 2022 Special Board Meeting Agenda Packet- Page 97 of 532 Page 24 of 31 STRATEGY 2 - Implement Organization-Wide Optimization © Support innovation in capital and operational improvements. KEY SUCCESS MEASURES • Automate the Treatment Plant Asset • Continue the Optimizations,Applied Handover Process and track completion Research,and Smart Initiative of key points along the workflow. programs. • Evaluate and use geocoding/barcodes to • Provide Optimizations Program tag and track plant assets. Annual Reports to Board. • Implement a barcode Warehouse inventory • Develop and begin implementing program to fully automate all issues,receipts, the IT Strategic Plan. and inventory cycle counts. ©Continue to configure new ERP system to meet evolving needs. KEY SUCCESS MEASURES • Evaluate,select,and implement new Sewer Service Charge development and billing software. • Implement Permitting and Community Development software. • Utilize digital database storage and retrieval to reduce paper processes. • Create procedures to reflect new business workflows. • Improve Maintenance,Repair,and Operations metrics monitoring. STRATEGY 3 - Be Adaptable, Resilient, and Responsive OMake sound decisions when faced with unforeseen events. KEY SUCCESS MEASURES • Identify potential collection and treatment Develop the analytic infrastructure to system catastrophic events along with key gather and use information to make operational decisions and responses. data-driven assessments. • Develop Decision Analytics to provide • Survey best practices of leading sister the required support documentation for agencies. rapid response. © 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 to facilitate decision making based on real-time data. • • • • Projects initiated under Central San Smart >_3 Improved process monitoring or performance reporting 23 control loops Reviews or pilot tests of new and promising technology >-3 Research papers and findings presented 23 papers or presentations Don't Just Fix It; Improve It work orders completed >-25 Completed optimizations >-20 May 26, 2022 Special Board Meeting Agenda Packet- Page 98 of 532 :— `- r4o Page . of 31 THE GOALS, STRATEGIES, INITIATIVES, AND KEY SUCCESS MEASURES IN THIS STRATEGIC PLAN ARE DESIGNED TO HELP US TO MEET OUR CHALLENGES, ACCOMPLISH OUR MISSION, AND SERVE OUR COMMUNITY IN THE MOST EFFICIENT AND COST-EFFECTIVE WAYS . "to-Cs CENTRAL SAN SANITARY DISTRICT Page 27 of 31 Attachment 2 FISCAL YEARS 2022-24 STRATEGIC PLAN Board Meeting May 26, 2022 Christina Gee, Management Analyst 1 STRATEGIC PLANNING AT CENTRAL SAN • Performed on a two-year cycle • Assigns responsibility/accountability and monitors progress • Helps guide other District-wide efforts (e.g., the budget and enterprise risk management) • A mature, well-functioning process that is foundational to the organization's success 2 1 May 26, 2022 Special Board Meeting Agenda Packet- Page 101 of 532 Page 28 of 31 STRATEGIC PLANNING TIMELINE Today: April 12,2022: Board -r� Administration consideration/ .. Committee adoption of final Y) Oct.2021— Fiscal Years(F Jan.2022 reviewed draft Goals,Strategies, 2022-24 Strategic Leadership Team Plan refined Strategies, Initiatives, Initiatives, Key Success Y Aug—Dec.2021: Ke Success Measures,and f, Board held workshops Measures,and Key Metrics and set Mission,Vision, Key Metrics Values,and Goals MISSION AND VISION MISSION To protect public health and the environment VISION To be an innovative industry leader in environmental stewardship and sustainability, while delivering exceptional service at responsible rates 4 2 May 26, 2022 Special Board Meeting Agenda Packet- Page 102 of 532 Page 29 of 31 VALUES Our core values guide our daily decisions and how we fulfill our mission,vision,and goals. CUSTOMER SERVICE We are responsive to our customers,and we deliver on our commitment to provide safe, reliable, and cost-efficient services. EMPLOYEES We empower our employees to do their best work. INTEGRITY We hold ourselves accountable to a high standard of honesty, reliability,and transparency. INNOVATION We continuously improve and optimize our operations. ENVIRONMENTAL SUSTAINABILITY We conduct our business to safeguard and improve our planet. DIVERSITY, EQUITY,AND INCLUSION We value people of all backgrounds, cultures,and perspectives,and we are committed to the principles of equity and inclusion. 5 GOALS Our goals articulate our priorities and how we will fulfill those commitments. GOAL 1.CUSTOMERAND COMMUNITY Provide exceptional service GOAL 2.ENVIRONMENTAL STEWARDSHIP Meet regulatory requirements,promote sustainability,and identify and reduce contributions to climate change and mitigate its impacts GOAL 3.WORKFORCE DIVERSITY AND DEVELOPMENT Recruit,educate,empower,and retain a workforce from diverse backgrounds GOAL 4.GOVERNANCE AND FISCAL RESPONSIBILITY Uphold integrity,transparency,and wise financial management in an effective governing model GOAL 5.SAFETY AND SECURITY Provide a safe,secure,healthful workplace that foresees and addresses threats GOAL 6.INFRASTRUCTURE RELIABILITY Maintain facilities and equipment to be dependable, resilient,and long lasting GOAL 7.INNOVATION AND AGILITY Optimize operations for continuous improvement,and remain flexible and adaptable 6 6 3 May 26, 2022 Special Board Meeting Agenda Packet- Page 103 of 532 Page 30 of 31 EFFECTIVE UTILITY MANAGEMENT (EUM) TEN KEY ATTRIBUTES • Product Quality �++ • Customer Satisfaction ., • Employee and Leadership Development y • Operational Optimization y • Financial Viability • Infrastructure Stability • Operational Resiliency Effective Utility Management • Water Resource Adequacy APrner for Water and Wastewater Urhaes • Community Sustainability • Stakeholder Understanding and Support NACWAY CFNTPAtSAN 7 STRATEGIC PLAN COMPONENTS GOALS set high-level direction for • CUSTOMERAND the Strategic Plan rCOMMUNITY STRATEGIES outline the approach to achieve the goals .. .. ENVIRONMENTAL STEWARDSHIP INITIATIVES describe the actions Fiscal Year needed to implement the strategies 2022-24 GOALS KEY SUCCESS MEASURES provide examples of how initiatives can be ' accomplished KEY METRICS quantify and track progress for evaluation CFNTF?AL SAN 8 4 May 26, 2022 Special Board Meeting Agenda Packet- Page 104 of 532 Page 31 of 31 MAIN UPDATES TO STRATEGIC PLAN • Strategies, Initiatives, and Key Success Measures were updated or reorganized to reflect current priorities and updated Goals • Mitigating and preparing for climate change • Diversity, equity, and inclusion • Becoming a preferred employer • Governance and civic engagement • Safety and cybersecurity • Key Metrics were expanded to add more accountability t • 22 new metrics • Adjustment to some targets QUESTIONS? 10 5 May 26, 2022 Special Board Meeting Agenda Packet- Page 105 of 532