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Home My WebLink AboutAdministration MINUTES 10-11-23 (Special)Page 2 of 18 LCENTRAL SAN BOARD OF DIRECTORS: SPECIAL MEETING OF THE BARBARA D. HOCKETT President CENTRAL CONTRA COSTA MARIAHNLAURITZEN SANITARY DISTRICT President Pro Tem ADMINISTRATION COMMITTEE MICHAELR.MCGILL TAD J PILECKI FLORENCE T WEDINGTON MINUTES PHONE: (925) 228-9500 Wednesday, October 11, 2023 FAX.- (925) 372-0192 8:00 a.m. www.centralsan.org ('nmmittaa Chair Mariah Lauritzen Member Mike McGill Guests: Mike Stein, SDI Presence, LLC Lee Curtis, SDI Presence, LLC Scott Sanders, SDI Presence, LLC Staff. Roger S. Bailey, General Manager Katie Young,Secretary of the District Greg Norby, Deputy General Manager - Operations Philip Leiber, Deputy General Manager — Administration Charles Mallory, Information Technology Manager Emily Barnett, Communications and Government Relations Manager Kevin Mizuno, Finance Manager Teji O'Malley, Human Resources and Organizational Development Manager (joined during Item 3.b). Benjamin Johnson, Internal Auditor Dennis Chebotarev Project Manager, Business Analyst (left during Item 3.b.) Tim Hiteshew, Project Manager, Business Analyst Heather Ramamurthy, Management Analyst Stacey Durocher, Administrative Services Assistant 1. Call Meeting to Order Chair Lauritzen called the meeting to order at 8:07 a.m. October 19, 2023 Regular Board Meeting Agenda Packet - Page 108 of 127 Page 3 of 18 Administration Committee Minutes (Special) October 11, 2023 Page 2 2. Public Comments None. 3. Items for Committee Recommendation to Board a. Review draft Position Paper to approve proposed revisions to: 1. Board Policy No. BP 005 - Statement of Investment Policy; and 2. Investment Guidelines Documents (IGD) related to the Public Agencies Post -Retirement Health Care Plan Trust, which includes both of the following: IGD for the existing Other Post -Employment Benefits Trust (OPEB Trust), and IGD for the Pension Prefunding Trust Mr. Mizuno provided an overview of the draft Position Paper included in the agenda materials. Mr. Mizuno stated staff reviewed BP 005 and the most recent 2023 Local Agency Investment Guidelines issued by California Debt and Investment Advisory Commission (CDIAC) as well as California Government Code Section 53601 and discussed the following proposed changes relating to the investment of local funds to be compliant with current statutory changes and best practices. 1. The definition of "term" for maturities on allowable investments is measured from the settlement date of the investment to the final maturity of the investment. 2. Prohibits purchasing securities with a forward purchase settlement date of more than 45 days. 3. As a best practice and not a statutory requirement, extend the timeline to present an investment portfolio or quarterly report from 30 days to 45 days following the end of the quarter. 4. Changed language pertaining to investment advisory services as these are likely to be used in connection with the transition to the in-house treasury function. Mr. Leiber mentioned that the previous title referenced in the document of Director of Finance and Administration will be updated to Deputy General Manager — Administration. COMMITTEE ACTION: Recommended Board approval with the recommended changes requested by the Committee. October 19, 2023 Regular Board Meeting Agenda Packet - Page 109 of 127 Page 4 of 18 Administration Committee Minutes (Special) October 11, 2023 Page 3 b. Review draft Position Paper to consider revisions to Board Policy No. BP 048 - Budget Mr. Mizuno provided an overview of the draft Position Paper included in the agenda materials He explained the goal of BP 048 was to formalize past precedent and rules regarding budget management and to develop a policy document as recommended by the Government Finance Officers' Association (GFOA). He discussed expanding the language related to the capital improvement budget carryforward process (Item 11) to add language that the Board may also direct some portion of that carryforward to sewer construction fund reserves to address future needs for years 2-10 in the long-term capital improvement plan. A discussion ensued regarding the suggested change to Item 11. Mr. Mizuno then discussed Section 12 being added to address allocating budget carryforward funds to contingency that result from closed projects and unexpended and available funds. Member McGill asked staff to clarify the verbiage "unexpended and available" in the policy. Mr. Leiber stated that it was money that was appropriated in the prior year and wasn't spent and is not needed in the next year so staff can recapture and fund contingency with those funds. Mr. Bailey stated that the Board already can direct staff to take such actions and recommended the language be changed to "the General Manager may request Board approval for" taking such actions. As requested by Chair Lauritzen, Mr. Leiber restated that the proposed new language for Item 11 as follows: "To achieve rate stability and prevent over -inflation of the Capital Improvement Budget (CIB) due to spend timing issues, the General Manager may request Board approval (through the Budget and Financial Plan adoption) that all or part of the unexpended carryforward be allocated to the sewer construction fund reserves for future years consistent with the 10-year CIB". A discussion ensued. With respect to item 12, Mr. Bailey recommended replacing the phrase "one of the following actions" with "one or more of the following actions." Mr. Bailey inquired if there was a Board Policy on contingency. Mr. Leiber responded no and stated that staff discussed this previously, and it was decided to make clarifications regarding contingency to the existing policies. Further discussion ensued. Mr. Norby commented that the contingency amount could potentially be represented as a percentage of the CIB, and not a fixed number. October 19, 2023 Regular Board Meeting Agenda Packet - Page 110 of 127 Page 5 of 18 Administration Committee Minutes (Special) October 11, 2023 Page 4 Member McGill requested this item return to the October 31 St Special Administration Committee meeting for further review. COMMITTEE ACTION: Reviewed the policy, provided input to staff, and requested the proposed policy return to the Committee at the October 31, 2023 Special meeting. 4. Other Items a. Review Information Technology and Operations Technology (IT/OT) Strategic Plan Mr. Mallory opened the conversation by stating this plan primarily focuses on operations technology and IT Governance. The 2015 plan was successful and focused on increasing IT capabilities. The current plan will take the District to the next level as it pertains to Information and Operations Technology. He informed the Committee that one slide had been added to the presentation. Mr. Bailey mentioned that the additional slide was due to a significant clarification that staff needed to make so there was no confusion for the Board or the public regarding the costs discussed in the presentation. Mr. Sanders reviewed the presentation included in the agenda materials. He discussed the development of plans by addressing the questions regarding where the District is now, where the District needs to be and what the District needs to do to get there. SDI Presence conducted activities such as interviewing staff and conducting surveys that provided information that was captured in the Business Opportunities report and the IT/OT Alignment Report showing where Central San IT/OT teams and capabilities are today. In response to a comment made by Member McGill regarding having both IT and OT groups, Mr. Mallory said the IT department does not currently oversee both groups but that it is important that both groups partner for the effective use of technology. Member McGill asked how the IT and OT groups will be managed. Mr. Bailey stated Mr. Mallory believes in partnership and has worked to build the bridge between IT and Operations on the things that are necessary for Central San. Mr. Norby commented, also emphasizing his support for a close working relationship between the two groups and in support of improved IT governance related to the initiation and oversight of projects. October 19, 2023 Regular Board Meeting Agenda Packet - Page 111 of 127 Page 6 of 18 Administration Committee Minutes (Special) October 11, 2023 Page 5 Member Lauritzen asked for an additional slide showing specific tasks and who is responsible for those tasks. Mr. Mallory acknowledged and indicated that the owners of each program would be appointed and reported on. Mr. Curtis discussed the assessment review and the user survey, which showed satisfaction level with IT services. He shared the survey response as 28 percent out of a population of about 375 staff and IT users. The survey asked several questions on detailed issues, as well as an overall satisfaction level, which was at a very high 99 percent. Mr. Bailey said that some surveys done by the District in the past have had low response rates, which does not give the entire picture of an issue. Mr. Sanders responded that it is just one data point and 25 to 30 percent response rates are very common. With respect to the overall health checks of the IT and OT functions, Mr. Bailey liked that the same 160 question checklist and assessment was used in 2015, and that enable the progress trend to be noted. Chair Lauritzen asked why OT didn't have historical data. Mr. Sanders said the 2015 study did not look at that function. Mr. Norby noted that the plant operations and the technology operations are closely related and that the partnership with the IT group has resulted in closing the gap some gaps in the maturity and capability of the functions. Chair Lauritzen asked about the lack of documented plans for the Geographic Informational System (GIS) and the Supervisory Control and Data Acquisition System (SCADA) and why that is considered a weakness. Mr. Curtis said it relates to sustainability and succession planning. Mr. Leiber referenced the additional slide providing clarification as to the following cost -related slide noted and did not note. It was emphasized that it represented an overall level of effort for programs and priorities. However, it is not a request for additional resources, as many of the costs are already covered in existing O&M spending levels and in the future capital budgets. Mr. Bailey added that the additional slide was included to avoid misinterpretation of the recommendations on the slide called Magnitude of Estimated Cost. COMMITTEE ACTION: Received the Information. October 19, 2023 Regular Board Meeting Agenda Packet - Page 112 of 127 Page 7 of 18 Administration Committee Minutes (Special) October 11, 2023 Page 6 5. Announcements None. 6. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items COMMITTEE ACTION: Received the list and provided input to staff. 7. Future Scheduled Meetinas Tuesday, October 31, 2023 at 8:30 a.m. (Special) Tuesday, December 5, 2023 at 8:30 a.m. (Special) 8. Adjournment — at 10:01 a.m. October 19, 2023 Regular Board Meeting Agenda Packet - Page 113 of 127 Page 8 of 18 Item 4.a. (Handout) k N 9SDI 1 5 D 1 r R E s E n c E L E C Central SAN !1k IT/OT Strategic Plan Project Review October 11, 2023 f Y advisory services. technology in,ple.emotion. monogcdservices. ilk 1 • IT/OT Strategic Plan Methodology • High-level Review of Documents • SWOT • Next Steps 2 October 19, 2023 Regular Board Meeting Agenda Packet - Page 114 of 127 1 Page 9 of 18 Development of the IT/OT Strategic Plan IT/OTStmtegic Plan Development I IT/OTStmtegic Plan Implementation Where are we now? How can we get there? How do we implement the plan? Where tlo we need to o? O &, MM, GIS,S DA SMART Utilky Securky O currentRNource WNbhopa& Roedmep Cemmkmenh EnaMirs Rudml aps DINdN T hods Roadmap ❑ ENimated ProjeN ficbrs Pdodeea Renurce aba Re9uiremenb ❑ Project Dependencies ProjeN "Blue Wall" Devebp Cherten Develop Finalize Upd— R/OT Project Central5an Preliminary ProjeN IT/OT Strata®c IT/OT AYeumeK Prioritization ReNew IT/OT Portfolio plan Wakplana W«kshop WNkplana Buda. RlWNb Budnw R/OTu ProjaN "&uewdl" ComplNed Project IT/OT etrebdc Pro/� ReaoKa OpportuWex Mg. —Report Portfolio Prole.S h dine Sdreduh Plen St—. Avdabllky DmR&Final—ft&Fi-I DrakB Final Lgend ILI sd�prezence.caml4 October 19, 2023 Regular Board Meeting Agenda Packet - Page 115 of 127 Page 10 of 18 Project Deliverables ❑ Voice of the Customer Survey Report - April 5, 2022 ❑ Business Opportunities Report - August 12, 2022 ❑ IT Services Alignment Report - September 15, 2022 ❑ IT/OT Strategic Plan - August 14, 2023 ❑ Tactical Roadmaps • Network Security - March 16, 2023 • SMART - March 15, 2023 • Geographic Information System (GIS) -July 19, 2023 • Enterprise Asset Management (EAM) - July 19, 2023 • Business Intelligence (BI) - July 19, 2023 • SCADA - July 19, 2023 October 19, 2023 Regular Board Meeting Agenda Packet - Page 116 of 127 3 Page 11 of 18 Voice of the User Survey 0—dort ea wore SDI r°'get ❑ Level of participation: 106 How satisfieA .myo. .10the me had used so eporti55uMm Ror revues 17 mrvi[es from 1 98 ✓ responses out of 375 employees — Pr 0lseamti'fieA arcyau with the tinxhtakes lTmreso"`or correct your 97 85 ✓ 28% How saisfied arc you with rfs c°mmunira[ionsthmugh the cou0leshooung process? 98 BS ✓ Haw satisfied amyau withtherimeiness and corhAteh— rOoffowupl che& bark on the mr ice provided? y7 BS ✓ Haw satisfied with the OhhrRs network annatusty? 98 s5 ✓ ❑ Overall level of satisfaction with IT How Msfietl are you with the speed of the Ui-tf, Interact? 96 85 Support = 99 % Haw satisfied are you whit ITs wntml of III— and umvamed e-mail? 97 90 ✓ h--i,fied am with 1T5 mmmuhitaftns on —outages and upcoming mainienana? ✓ How Mitred are you WM the um 0Zbm. WirNl,S, andfarfemaie a—,, verage, and availnhifRy in the n-in? 94 7' ✓ Haw wisfied are you wM the training you received for [emol 5an's business appnubons? 85 75 ✓ Haw sethfled are you with 17's—val of rhaimm and prevention of viruses? Wo 90 ✓ How --fed are you With 17s ahiliryxG remver a lost file or recover damaged filW 98 85 ✓ How 5atisfed are you wit, the 015 apphotions and ma p5 provided by the Or SbiR? '� 75 ✓ Haw satisfied are you with the GIs suppon you race"e? 97 75 Haw satisfied arc you wM lT staffs understand og of the Dmurs N.h.s objectives? 92 75 ✓ How satisfied arc you with 17 staffs uncle—W hq or your department's89 business operations? 75 ✓ Haw sa[isfied are you wM the UiS[fi[YSttNnol°gy planning effort _ 85 fi0 ✓ Haw satisfied arc you wM the —all support you receive from IT? Central SAN's Conformance to the IT Best Practices Conformance to IT Best Practices Public -Sector Average SDI Target ° IT Governance 261 2022 1 G Service Delivery 2015 2D22 1 ti ; m H Business Applications 2D15 2D22 1 Infras[ruc[ure 2D22 C 0 c Security / Information 2D15 E Protection 2022 O 2015 IT Administration 1 2022 Average Conformance 202252 Maturity Levels � atea�ivet!Ep o sp zp E Less Agile More Agile -3� %of IT Best Practices Conformance ❑ Assessment based on SDI's model for IT Best Practice conformance October 19, 2023 Regular Board Meeting Agenda Packet - Page 117 of 127 4 Page 12 of 18 Central SAN's Conformance to the OT Best Practices Conformance to Operational Technology Best Practices lllllllll�lllllllll�lllllllll�lllllllll�lllllllll�lllllllll�a�■ IIIIIIIII�IIIIIIIII� IIIIIIIII�IIIIIIIII� IIIIIIIII�IIIIIIIII� IIIIA Average Conf—ance ��teg�ated ❑ Assessment based B&C's experience in working with similar organizations Central SAN's Conformance to GIS Best Practices Conformance to GIS Best Practices Average Conformance r Integrated ❑ Assessment based on URISA's GIS Capability Maturity Model (GISCMM) 10 October 19, 2023 Regular Board Meeting Agenda Packet - Page 118 of 127 5 Page 13 of 18 SWOT Analysis Present Use of Future Use of Information Technology Infonnation Technology ead To I Opportunities I I I I I Weaknesses ead To 11 ❑ Reviewed separately for IT and OT ❑ Primary objectives are to: ✓ Leverage strengths ✓ Remediate weaknesses ✓ Mitigate threats ✓ Realize opportunities SWOT Analysis — Key IT Strengths, Weaknesses, Opportunities & Threats Strengths: ■ Since the completion of the 2015 IT Master Plan Central SAN has made considerable progress in improving the staffing and performance of its IT organization and this is reflected in a high level of user satisfaction with the services provided to them. Weaknesses: ■ Central SAN has yet to implement a sustainable approach to the enterprise governance of information technology. ■ Central SAN has experienced challenges in the implementation of the Oracle Fusion Cloud ERP solution. ■ The continued retention and storage of hard -copy documents. Opportunities: ■ Full and more effective use of Oracle Fusion Cloud ERP. ■ Increased efficiencies through the continuing adoption of digital documents and automated workflows and the digitization of hard -copy documents. Threats: ■ Increased cost of ownership for information technology without realizing increased value for these expenditures. ■ Limited ability to agilely respond to new and/or changed requirements. 12 October 19, 2023 Regular Board Meeting Agenda Packet - Page 119 of 127 6 Page 14 of 18 SWOT Analysis — Key OT Strengths, Weaknesses, Opportunities & Threats Strengths: ■ Working toward standardization of the plant and collections pumping station electrical switchgears, MCCs, VFDs, PLCs, PLC 1/0, and networking equipment. ■ Awareness of "smart utility," with several initiatives in progress. ■ Strong GIS program. Weaknesses: ■ Lack of documented plans for GIS and SCADA. ■ Lack of proper utility billing system and delays in the completion of the Permitting solution. ■ The Dynac SCADA and Dynac Historian applications are approaching obsolescence and have limited support Opportunities: ■ Standardize SCADA on one product, one implementation. ■ Modernize the data historian to support sharing of data from SCADA with IT systems to improve staff efficiencies. ■ Modernize the plant control room. ■ Staff members nearing retirement will limit Central SAN's ability to support operational applications and sustain operations. 13 14 October 19, 2023 Regular Board Meeting Agenda Packet - Page 120 of 127 Page 15 of 18 Detailed Project Planning How do we implement the plan? I ❑ aIEAMGIS.SGUA I I I ❑ Funent Respmce SpeciaDxed New [ommir m Enabl'ng I ROadmaps District TechnOlo- I ❑ Fslima[ed PrOien Resnwre Fattori I I PlgrllllE Gies I I Requiremenss I I ❑ Pralea pepenaenFes i Project Develop Charters I Central San RIOT Strategic I Preliminary Update Review Plan D—I.P—nt I RIOT I WOrkDlans Wndwlans Bpd¢el I I I Reques is I I COmpleteO Project RJOT Strategic I I MOlect Resource I I I Bchetlule Plan I Status AvaiWbRitT I OnRinnN I I I I I I I L I I I I I I __—I 15 Magnitude of Effort ❑ IT Strategic and SMART Utility - 35 projects ❑ OT Strategic and GIS - 27 projects ❑ IT Tactical Projects including foundational - 22 projects ❑ OT Tactical Projects including foundational - 31 projects 1V October 19, 2023 Regular Board Meeting Agenda Packet - Page 121 of 127 8 Page 16 of 18 Magnitude of Effort What it DOES and DOESN'T Represent • Represents: • Overall level of effort and cost for the portfolio of potential projects, prioritized into categories • Recognition that some or even most of the costs may already be included in the existing 10-year CIP and current level of 0&M funding • A good check -point along the way in the determination of "what" should be done 17 • Does NOT Represent: • An indication that INCREMENTAL resources are needed • A request for additional resources • A completely planned out project schedule, with precise resources identified • A fully executable and final plan • The precise "when" & "at what incremental cost" Magnitude of Estimate Cost (This is a budget estimate of the total effort and is not a request for additional funding. Most of the resources are budgeted.) PrIoritvTMonths Central San FTEs Consultants Cost Estimate Pre-reqBI 60 2.5 1.25 $ 1,283,000 EAM 18 0.25 0.5 $ 439,250 SCADA 75 0.3 0.75 $ 2,812,500 BI 33 3 3.5 $ 3,175,000 EAM 45 1.75 1.5 $ 1,361,500 GIs 57 2.2 4.5 $ 3,104,250 SCADA 75 3.1 5.15 $ 10,255,100 BI 36 3 4 $ 1,661,000 EAM 63 4.75 5.75 $ 2,645,000 GIS 36 0.65 1.35 $ 564,325 SCADA 66 0.7 3 $ 6,320,750 MEAM 21 0.75 0.75 $ 699,000 SCADA 60 0.8 2 $ 3,299,000 Grand Total 645 23.75 34 $ 37,619,675 18 October 19, 2023 Regular Board Meeting Agenda Packet - Page 122 of 127 9 Page 17 of 18 Current Status of Projects and Recommendations ❑ Key IT/OT Strategic projects • IT/OT Governance structure implemented • Oracle ERP implementation and improvement on -going • OT Network improvements underway • Initial phases of SCADA project started • Oracle Permits system being developed • Detailed project charters and implementation plans being created 19 IT/OT Strategic Plan and Roadmap Enablers ❑ IT/OT Governance (Collaboration & Communication) ❑ Project Charters • Scope and Objectives • Critical Success Factors • Cost • Resource Requirements • Schedule ❑ Organizational Change Management ❑ IT/OT Resources to meet new requirements and increased expectations • Project Management • Technical Resources • IT/OT support organizations restructuring (Response and Agile) ❑ Budget 20 October 19, 2023 Regular Board Meeting Agenda Packet - Page 123 of 127 10 Page 18 of 18 21 October 19, 2023 Regular Board Meeting Agenda Packet - Page 124 of 127 11