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Home My WebLink About03.b. Review Draft Position Paper Requesting Board Adoption of the Fiscal Years (FY) 2024-2026 Strategic Plan, Including Suggested Changes Made to the District's GoalsPage 1 of 31 Item 3.b. DCENTRALSAN MEETING DATE: MARCH 5, 2024 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER REQUESTING BOARD ADOPTION OF THE FISCAL YEARS (FY)2024-2026 STRATEGIC PLAN, INCLUDING SUGGESTED CHANGES MADE TO THE DISTRICT'S GOALS SUBMITTED BY: INITIATING DEPARTMENT: CHRISTINA GEE, MANAGEMENT ANALYST OFFICE OF THE GENERAL MANAGER REVIEWED BY: PHILIP LEIBER, DEPUTYGENERAL MANAGER -ADMINISTRATION GREG NORBY, DEPUTY GENERAL MANAGER -OPERATIONS ROGER S. BAILEY, GENERAL MANAGER ISSUE Board action is required to adopt the Fiscal Years (FY) 2024-26 Strategic Plan. BACKGROUND Since 2014, Central San has developed two-year strategic plans, which provide overall direction on how Central San will achieve its vision and mission, while living up to its values. To begin the process of developing the FY 2024-26 Strategic Plan, the Board held a discussion on September 21, 2023 to review and consider updates to Central San's Vision, Mission, Values, and Goals (VMVG). The Administration Committee then reviewed and provided feedback on a set of proposed VMVG and draft strategies reflecting the Board's input. Staff conducted an internal workshop on November 29, 2023 to refine the Strategies, Initiatives, Key Success Measures, and Key Metrics for the FYs 2024-26 Strategic Plan to meet the VMVG set by the Board. At its December 21, 2023 meeting, the Board conducted a discussion facilitated by Central San's consultant, Larry Bienati, Ph.D., of Bienati Consulting Group, to provide feedback on the proposed VMVG and draft Strategies. With the Board's feedback in mind, the leadership team held another workshop in February to update the plan, after which, the leadership team and key stakeholders provided further feedback to create the draft Plan being presented to the Administration Committee. March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 36 of 110 Page 2 of 31 Included in this draft are proposed changes to the Goals set by the Board, made for clarity and streamlining. The Administration Committee is being asked to review the suggested changes to the District's Goals (Attachment 1) and the draft Strategies, Initiatives, Key Success Measures and Key Metrics -collectively, the draft FY 2024-26 Strategic Plan (Attachment 2) - and recommend Board adoption of the plan, including changes to the Goals. I n May 2024, the FY 2024-26 Strategic Plan will be presented to the Board for adoption. ALTERNATIVES/CONSIDERATIONS Make changes to the proposed draft Strategic Plan, and adopt the Plan with those changes. FINANCIAL IMPACTS There are no direct financial impacts related to adopting the strategic plan. Central San's budgeting process defines the resources necessary to achieve the objectives in the strategic plan. The budgeting process for FY 2024-25 will see a draft budget presented in May 2024, for approval in early June. COMMITTEE RECOMMENDATION The Administration Committee reviewed this matter at its March 5, 2024 meeting and recommended Board RECOMMENDED BOARD ACTION Review draft Position Paper requesting Board adoption of the FY 2024-2026 Strategic Plan, including suggested changes made to the District's Goals, and recommend Board adoption of the FY 2024-26 Strategic Plan. ATTACHMENTS: 1. Proposed Edits to Goals 2. Draft FY2024-26 Strategic Plan 3. Presentation March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 37 of 110 Page 3 of 31 ATTACHMENT 1 Proposed Edits to Goals Below in tracked changes are the suggested changes to the Goals adopted by the Board in December 2023. The proposed Goals are reflected in the draft Strategic Plan document (Attachment 2). GOALS Our goals articulate our priorities and how we will fulfill those commitments. GOAL 1. CUSTOMER SATISFACTION AND COMMUNITY ENGAGEMENT Provide exGeptional cor"ino value and reliability to our customers and cultivate relationships within our community and industry GOAL 2. ENVIRONMENTAL STEWARDSHIP Meet regulatory requirements, promote sustainability, and implement measures to reduce contributions to climate change and mitigate its impacts GOAL 3. WORKFORCE DIVERSITY AND DEVELOPMENT Recruit, edUGate, empower, and retain a workforce from diverse backgrounds and foster their trust the trust r.f a wE)Pkforno F. se baGk F9 Rds in an inclusive workplace culture GOAL 4. GOVERNANCE AND FISCAL RESPONSIBILITY MaiRtaiR Operate a well -run, responsible, and ethical organization emphasizing integrity and transparency GOAL 5. SAFETY AND SECURITY Provide a safe, secure, healthful workplace that foresees and addresses thrrrn eatsrisks GOAL 6. INFRASTRUCTURE RELIABILITY Maintain facilities and equipment to be dependable, resilient, and long lasting GOAL 7. INNOVATION AND AGILITY Optimize performance DiStriGt eperationc for through continuous improvement remain adaptable March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 38 of 110 Page 4 of 31 ATTACHMENT 2 Draft FY 2024-26 Strategic Plan leley_1 WOUI14WOR&I1101►Vi 14: PUTI0 1 m k, W k, I elm r_ :'14: Eel el4:»► LeuTel 4 m 14 k, k I Provide value and reliability to our customers and cultivate relationships within our community and industry Strategy 1 — Deliver High -Quality Customer Service 1. Effectively collect and treat wastewater with our customers and stakeholders in mind. Key Success Measures • Conduct a customer satisfaction survey and develop creative ways to meet expectations. Survey customers on work directly impacting them. Be attentive to our customers' and stakeholders' needs. 2. Minimize impacts to residents and businesses during capital projects, construction work, and maintenance. Key Success Measures • Hold community meetings for all major sewer renovation projects, including outreach to the impacted cities and county. • Meet individually with property owners and/or tenants on projects involving private easements. Troubleshoot and resolve construction issues rapidly. 3. Maintain affordable services. Key Success Measures • Conduct a Cost -of -Service Study for FY 2025-26 rates. • Perform annual reviews of rate structure and fees. • Administer low cost financing programs and explore others to offer. • Conduct updated affordability review using new EPA Financial Capability Analysis guidelines. Strategy 2 — Engage with Our Customers, Community, and Industry 1. Perform extensive customer and community outreach. Key Success Measures • Conduct public tours and presentations. • Host citizens' academy (Central San Academy) annually. • Expand social media outreach. • Lead Go with the Flow bicycling tours. March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 39 of 110 Page 5 of 31 DRAFT FY 2024-26 Strategic Plan 2. Form and sustain relationships with federal, state, and local elected officials and stakeholders. Key Success Measures • Connect with elected officials, staff, and stakeholders on initiatives. • Support Board Member engagement with elected officials, focusing on nutrient compliance and water reuse. 3. Cooperate with professional organizations and peer agencies. Key Success Measures • Participate in industry organizations and forums. • Share industry -leading work. 2 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 40 of 110 Page 6 of 31 DRAFT FY 2024-26 Strategic Plan GOAL ONE — CUSTOMER AND COMMUNITY — KEY METRICS Metric Target Average customer service rating >_3.8 out of 4.0 for emergency calls Average customer satisfaction rating >_95% for permit counter interactions Average onsite response time 1530 minutes for collection system emergency calls, during working hours Average onsite response time 1540 minutes for collection system emergency calls, after hours Average customer satisfaction rating >_95% for construction projects Participants in public tours >_500 and presentations Participants in Central San Academy >_35 Sewer Service Charge affordability <2% (Environmental Protection Agency Lowest Quintile (or lower than Residential Indicator) High Impact) Awards or recognitions received >_10 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 41 of 110 Page 7 of 31 DRAFT FY 2024-26 Strategic Plan CrZ�7_1��4�[�)0=1►1�/I:Z�7�1►�i1�►�1_1�+'��=Ui%1:��Z•'ial� Meet regulatory requirements, promote sustainability, and implement measures to reduce contributions to climate change and mitigate its impacts Strategy 1 — Comply with All Environmental Regulations Meet all regulations to protect our environment. Key Success Measures • Continue to attain National Association of Clean Water Agencies (NACW4) Platinum Peak Performance Awards. • Continue to keep sanitary sewer overflows at a reduced level. • Develop and submit an updated Sewer System Management Plan (SSMP). • Develop a long-term compliance plan for nutrient regulations. 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. • Engage regularly with local, state, and federal regulatory authorities. Strategy 2 — Be a Partner in Regional Development of Water Supply 1. Explore and advance cooperative opportunities. Key Success Measures • Continue to collaborate with Contra Costa Water District (CCWD) and Valley Water in advancing the water transfer policy discussions with the United States Bureau of Reclamation on the Refinery Recycled Water Exchange Project. • Continue to work with CCWD and the City of Concord 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. • Collaborate with the DERWA agencies to evaluate making the raw wastewater diversion permanent to expand recycled water use in Central San's service area. • 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. 0 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 42 of 110 Page 8 of 31 DRAFT FY 2024-26 Strategic Plan Key Success Measures • Operate and maintain a reliable recycled water distribution system. • Continue the Residential Recycled Water Fill Station and Commercial Recycled Water Truck Fill Programs. • Initiate design -build for Filter Plant rehabilitation and electrical improvements. • Confirm future capacity for Title 22 plant systems as needed for capital renewal and replacement projects. Strategy 3 — Optimize Energy Usage and Reduce Greenhouse Gas Emissions 1. Reduce reliance on non-renewable energy. Key Success Measures • Develop alternative options to reduce Central San's carbon footprint. • Implement the Fleet Electrification Strategic Plan. • Develop an energy optimization roadmap to maximize value of cogeneration equipment and plan future investments. • Track and review energy usage. • Explore the viability of a steam turbine generator to convert incineration waste -heat steam into electricity. • Replace the existing diffusers and associated control system with the latest state of art high efficiency diffusers and smart control systems. 2. Responsibly manage greenhouse gas (GHG) emissions. Key Success Measures • Maximize landfill gas usage. • Track and report GHG emissions as part of the energy usage report. Strategy 4 — Promote Pollution Prevention and Environmental Protection 1. Provide industry -leading public and student education programming. Key Success Measures • Present student education programs that meet Next Generation Science standards. • Conduct imaginative public education outreach that encourages positive customer behavioral changes. 2. Expand internal sustainability practices. Key Success Measures • Implement internal sustainability initiatives through the Green Team. 5 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 43 of 110 Page 9 of 31 DRAFT FY 2024-26 Strategic Plan Complete Green Business re -certification for the Martinez campus. Advance circular economies with suppliers and contractors towards a smaller ecological footprint. A March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 44 of 110 Page 10 of 31 DRAFT FY 2024-26 Strategic Plan GOAL TWO — ENVIRONMENTAL STEWARDSHIP — KEY METRICS Metric Target National Pollutant Discharge Elimination 0 violations System compliance Recycled Water Title 22 compliance 0 violations Title V compliance 0 violations Regulatory Title V work orders 100% completed on time Sanitary sewer overflows :51.3 spills per 100 miles of pipeline Spills to public water <_1 Spills greater than 500 gallons 53 Environmental Compliance inspections and 100% permitting completed on time Household Hazardous Waste (HHW) 0 violations management compliance Gallons of recycled water >_240 million gallons distributed to external customers Electricity >_18 million kWh (reported as a rolling produced by co -generation average) using natural gas Solar power >_220,000 kWh (reported as a rolling produced at Collection System Operations average) and HHW Collection Facility Solar power >_3.5 million kWh produced by a new solar array near the (reported as a rolling average) treatment plant (target now includes 1 M kWh projected from the new array at the Lagiss property) Anthropogenic GHG emissions :525,000 metric tons (MT) CO2e per calendar year Students served by education programs >_6,000 March 5, 2024 Regular ADM IN Committee Meeting Agenda Packet -Page 45 of 110 Page 11 of 31 DRAFT FY 2024-26 Strategic Plan GOAL THREE — WORKFORCE DIVERSITY, EQUITY, AND DEVELOPMENT IN AN INCLUSIVE WORKPLACE CULTURE Recruit, empower, and retain a workforce from diverse backgrounds and foster their trust in an inclusive workplace culture Strategy 1 — Recruit from a Diverse Pool of Qualified Applicants 1. Broadly solicit applications to attract a diverse talent pool. Key Success Measures • Offer internships in cross -disciplinary positions. • Host the Externship Program for college students and recent graduates. • Form a talent pipeline by collaborating with schools and apprenticeship programs. • Participate in intra-agency workforce development efforts. Strategy 2 — Invest in Equitable Talent Management Practices Support employees to grow to their fullest capacity while contributing to Central San's success. Key Success Measures • Continue the Leadership and Supervisory Academies, Mentorship Program, and Job Shadowing Program. • Encourage staff to obtain professional or technical certifications and registrations. • Conduct performance planning and appraisals with a coaching and career development approach, while also establishing and conveying clear expectations. • Continue to promote and expand internal training opportunities. Strategy 3 — Engage Employees and Conduct Labor Relations in a Transparent and Collaborative Environment 1. Promote employee engagement and inspire dedication. Key Success Measures • Foster a sense of community through interdepartmental cooperation and internal events and communications. • Relay important initiatives to increase staffs understanding of our operations and their role in our success. 2. Celebrate employees' achievements. Key Success Measures March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 46 of 110 Page 12 of 31 DRAFT FY 2024-26 Strategic Plan Recognize staff accomplishments. Expand the employee recognition program. Continue to hold the Innovations Fair to recognize and thank employees for innovative projects. 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 4 — Implement the DEI Framework and Strategic Plan and Uphold Its Pillars Adopt the plan, assign responsibilities, implement key initiatives, and report on 7 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 47 of 110 Page 13 of 31 DRAFT FY 2024-26 Strategic Plan GOAL THREE — WORKFORCE DIVERSITY, EQUITY AND DEVELOPMENT IN AN INCLUSIVE WORKPLACE CULTURE — KEY METRICS Metric Target Average time to fill vacancy <_60 days (from request to hire) Completion of performance evaluations 100% Average training hours per employee >_15 (external and internal training) Internal promotions >_25% (excludes entry-level positions) Turnover rate <_6.5% (including retirements) Formal grievances processed Zero 10 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 48 of 110 Page 14 of 31 DRAFT FY 2024-26 Strategic Plan GOAL FOUR — GOVERNANCE AND FISCAL RESPONSIBILITY Operate a well -run, responsible, and ethical organization emphasizing integrity and transparency Strategy 1 — Promote and Uphold Ethical Behavior, Openness, and Accessibility 1. Comply with all laws, regulations, and policies. Key Success Measures • Keep apprised of changes to laws, regulations, and policies. • Display policies in a visible location for staff to access. • Incorporate potential impacts of regulatory changes into long-range infrastructure and financing plans. 2. Govern and operate with transparency. Key Success Measures • Live our values and conduct all business ethically. • 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. 3. Produce accurate, timely, and meaningful financial reports. Key Success Measures • Issue the Annual Comprehensive Financial Report (ACFR) no later than six months after the end of the fiscal year. • Earn the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation Award. • Continue to enhance functionalities and outputs of the enterprise resource planning (ERP) software and associated systems. 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. • Hold Central San division elections. 2. Encourage civic engagement. 11 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 49 of 110 Page 15 of 31 DRAFT FY 2024-26 Strategic Plan 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. 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). • Actively pursue state and federal funding via loans and grants. 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. • Encourage competitive, transparent, and fair sourcing of goods and services. Strategy 5 — Advocate for Relevant Legislative and Policy Initiatives 1. Participate in legislative and regulatory processes. Key Success Measures • Track, review, and comment on proposed legislation and regulations. • Support key advocacy initiatives through communications and outreach. • Work with elected officials, government agencies, industry groups, and non -governmental organizations to support pollution prevention and other beneficial initiatives. 12 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 50 of 110 Page 16 of 31 DRAFT FY 2024-26 Strategic Plan GOAL FOUR — GOVERNANCE AND FISCAL RESPONSIBILITY — KEY METRICS Metric Target Board meeting videos posted online 100% Compliance with Public Records Act 100% requests on time Reported material weaknesses or Zero significant deficiencies in internal controls as part of annual financial audit Standard and Poor's / AAA/Aa1 Moody's credit ratings Debt service coverage ratio >_2.0 Debt as a percentage of total assets s60% Debt financing 560% of prior 10 years' CIP spending Debt financing as a percentage :560% of projected 10-year CIP Total revenue funded collection system CIP >_100% spending in past 10 years Total revenue funded collection system >_100% spending 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 90-100% as a percentage of Board -approved operating budget Dissemination of interim financial reports 100% 13 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 51 of 110 Page 17 of 31 DRAFT FY 2024-26 Strategic Plan Purchasing requisitions completed within >_85% standard processing time Contractors/consultants in compliance with >_70% insurance requirements Actual inventory count value to book value <_3% error rate (new metric) Average cost per overflow claim <_$25,000 14 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 52 of 110 Page 18 of 31 DRAFT FY 2024-26 Strategic Plan GOAL FIVE — SAFETY AND SECURITY Provide a safe, secure, and healthful workplace that foresees and addresses risks Strategy 1 — Sustain a Safe and Healthful Workplace 1. Maintain low injury and illness rates. 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 • Maintain 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. 3. Support the mental and physical wellbeing of all employees. Key Success Measures • Revamp and encourage participation in the Wellness Program. • Offer comprehensive benefits such as online therapy services and the Employee Assistance Program. • Hold financial and health seminars. Strategy 2 — Identify, Evaluate, and Mitigate Risks 1. Evaluate and apply risk management practices. Key Success Measures • Maintain and report on the Enterprise Risk Management Program and risk inventory. • Collaborate with Contra Costa County to maintain and keep updated a Local Hazard Mitigation Plan. • Identify internal audit opportunities based on risk assessments. • Address findings from regular internal and external audits, including testing and improving internal controls. • Activate and engage Risk Mitigation Teams to develop mitigation plans for key strategic risks. 15 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 53 of 110 Page 19 of 31 DRAFT FY 2024-26 Strategic Plan 2. Enhance capability to mitigate, prepare for, respond to, and recover from disasters and emergencies. Key Success Measures • Train staff and conduct an exercise of the Continuity of Operations Plan. • Maintain the Emergency Operations Plan. • Maintain planned level of Federal Emergency Management Agency (FEMA) training. • Participate in California Water/Wastewater Agency Response Network (CalWARN). • Be active partners in regional aid networks. 3. Evaluate and implement improvements to meet evolving security needs. Key Success Measures • Budget and complete the projects identified in the Security Action Plan. • Provide regular security awareness training to staff: • Continue to modernize access control systems. • Improve perimeter security at the Martinez campus. Strategy 3 — Understand and Reduce Impacts of Cybersecurity Attacks 1. Stay updated on the latest trends and emerging threats in cybersecurity. Key Success Measures • Implement Information Technology (IT) Cybersecurity Roadmap. • Conduct third -party cybersecurity assessments focusing on technology, people, and physical assets. • Train staff to increase levels of awareness. • Distribute quarterly Cybersecurity Reports. 2. Prevent, detect, and remediate effects of attacks. Key Success Measures • Execute the Disaster Recovery Plan. • Upgrade network and equipment to create redundant paths. 16 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 54 of 110 Page 20 of 31 DRAFT FY 2024-26 Strategic Plan GOAL FIVE — SAFETY AND SECURITY — KEY METRICS Metric Target Safety -prioritized work orders completed on time 100% Employee injury and illness lost time incident rate :53.3 Days to implement approved Safety Suggestions 1560 Temporary modified duty provided (Return to Work program) >_95% of recordable injuries Workers' compensation experience modifier !!51.0 Participation in annual Wellness Expo +>10% each year Emergency response supplies and equipment in stock (new metric) 100% Employees trained in cybersecurity awareness 100% 17 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 55 of 110 Page 21 of 31 DRAFT FY 2024-26 Strategic Plan GOAL SIX — INFRASTRUCTURE RELIABILITY Maintain facilities and equipment to be dependable, resilient, and long lasting Strategy 1 — Manage Assets for Optimal Lifecycle Value 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. • Follow failure reporting and corrective action system process (FRACAS) on critical assets. • Complete Planner Updates to work orders and use other feedback mechanisms for continuous improvement. • Optimize rehabilitation, replacement, and cleaning of pipelines. • Update Sewer System Infrastructure Plan to identify collection system capital and O&M needs and opportunities. • Implement large diameter and force main condition and risk assessment programs. • Continue to implement the recommendations listed in the Strategic Asset Management Plan. 2. Develop and pursue reliability -centered asset management strategies and design. Key Success Measures • Develop an Asset Health and Condition Monitoring framework, including using reliability -based analysis and condition -based and predictive -based technologies. • Apply reliability -centered design to one or more capital projects. • Add service contracts to computerized maintenance management software (CMMS) to track work orders. • Transfer Pumping Stations Operations preventative maintenance work orders to CMMS. Strategy 2 — Execute the Approved Capital Program 1. Achieve risk -balanced prioritization using a consistent evaluation and planning framework with interdepartmental coordination. Key Success Measures • Ensure all critical assets and processes in need of repair or replacement are appropriately scheduled in the 10-Year CIP. ilm March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 56 of 110 Page 22 of 31 DRAFT FY 2024-26 Strategic Plan • Develop a prioritization model for vertical assets and update the risk model. • Coordinate interdepartmentally and with all stakeholders to prioritize projects. • Develop and continue updating strategic roadmaps for nutrients, electrical, energy, and solids. • Update the process for new projects to be accepted within the CIP by Capital Projects. 2. Improve CIP delivery capability. Key Success Measures • Finish updating contract templates. • Investigate a single -platform application for project details and shutdown processes. • Continue project management and project delivery training for responsible staff and develop onboarding process for new staff. • Provide Project Management Professional training for all project managers. • Perform annual CIP self -assessment. • Conduct annual forward -looking delivery capacity review. • Manage all contracts in Enterprise Performance Management. • Complete internal audit recommendations. • Update all Engineering procedures for Capital Projects. 19 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 57 of 110 Page 23 of 31 DRAFT FY 2024-26 Strategic Plan GOAL SIX — INFRASTRUCTURE RELIABILITY — KEY METRICS Metric Target Work orders improved by Maintenance Planners >_24 (new metric) Planned treatment plant preventative maintenance >90% completed on time Planned recycled water distribution system preventative >_98% maintenance completed on time Planned collection system preventative maintenance >_98% completed on time Pipeline cleaning On >_3% of pipelines quality assurance / quality control (QA/QC) cleaned on an annual basis (adjusted from >_4%) Pipeline cleaning QA/QC passing rate >_95% Pipeline inspected through 10% inspected Closed Circuit Television Program (150 miles) Uptime for vehicles 100% Warehouse stockouts of spares linked to an asset <_4 (new metric) Miles of sewers replaced >_6.0 (was previously focused on deteriorated small diameter (running three-year pipelines but now includes all sewers replaced) average) (was previously an annual total) Large diameter and force main condition assessment >_3 miles per year Average time to execute Engineering agreements from :52 weeks complete package submittal Contract renewals executed on time 100% for uninterrupted service 20 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 58 of 110 Page 24 of 31 DRAFT FY 2024-26 Strategic Plan Time to fulfill request -to -stock items :530 days (modified from previous metric of "approved request -to - stock items entered in databases within 5 business days, with a target of 100%') Capital expenditures as a percentage of >_80% capital budgeted cash flow including carry forward (adjusted from >_90%) Information system outages 100% uptime affecting normal business operations Data backup and recovery 0 lost data 21 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 59 of 110 Page 25 of 31 DRAFT FY 2024-26 Strategic Plan GOAL SEVEN — INNOVATION AND AGILITY Optimize performance through continuous improvement Strategy 1 — Apply Data Analytics to Identify Efficiencies 1. Deploy improved monitoring and performance metrics, tracking, and analytics. Key Success Measures • Assess and pilot test digital monitoring, machine learning, and artificial intelligence for plant assets. • Develop new reporting dashboards to track strategic, tactical, and operations and maintenance (O&M) performance metrics. • Identify process improvements and their potential efficiencies. 2. Make improvements based on performance data. Key Success Measures • Communicate progress and results on process measures. • Complete annual Benchmarking Study to assess organizational performance. Strategy 2 — Implement Organization -Wide Optimization 1. Construct optimization -related Plant improvements. Key Success Measures • Initiate design for Secondary Clarifier Improvements to rehabilitate and replace aged equipment, optimize flow split, and evaluate hydraulic baffles to improve performance. • Develop Electrical Infrastructure Replacement Program to optimize the treatment plant 12, 000 V distribution system and replace existing electrical transformers and switchgear. • Operate and report findings of a Membrane Aerated Biofilm Reactor Intensification Pilot to assess removing nitrogen in existing tankage, which could minimize or delay the need for a plant expansion. • Develop long-term solids handling strategy, including exploring feasibility, costs, and benefits of regionalization of fluidized beds. 2. Support innovation in capital and operational practices. Key Success Measures • Provide Optimizations Program Annual Reports to Board. • Administer an in-house treasury function. • Revise procurement processes, develop new reports, and implement a contracts management module. 22 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 60 of 110 Page 26 of 31 DRAFT FY 2024-26 Strategic Plan • Develop and implement asset on -boarding technical data flow, including a tracking system. • Document O&M standard operating procedures and Training Plan administrative procedures. • Develop a 3-D representation of Solids 1A Perpetual As -Built reflecting adopted BIM/CADD standards. • Implement barcoding of plant assets to create legacy IDs. 3. Continue to configure ERP system to meet evolving needs. Key Success Measures • Evaluate, select, and implement new Sewer Service Charge development and billing software. • Administer capital projects using Enterprise Performance Management technology. • Launch electronic performance appraisal process. 4. Implement roadmaps to improve enterprise governance of IT. Key Success Measures • Execute Enterprise Asset Management roadmap. • Execute Supervisory Control and Data Acquisition (SCADA) roadmap. • Execute Cybersecurity roadmap. • Execute Geographic Information Systems (GIS) roadmap. • Execute Business Intelligence - Data Governance roadmap. 23 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 61 of 110 Page 27 of 31 DRAFT FY 2024-26 Strategic Plan GOAL SEVEN — INNOVATION AND AGILITY — KEY METRICS Metric Target Reviews or pilot tests of new and promising technology and presentations of findings >3 Don't Just Fix It; Improve It work orders completed >_20 Completed optimizations >_20 24 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 62 of 110 AfWWAT 3 March 5, 2024 Draft Fiscal Years �FY) 2024-26 Strategic Plan Administration Committee Christina Gee Management Analyst 1 Strategic Planning for Organizational Success Two-year strategic plans since 2014 Provides overall direction on how Central San will achieve its vision and mission, while living up to its values Framework assigns responsibility and accountability, and monitors progress Helps guide other District -wide efforts A mature, well -functioning process that is foundational to our organizational success 2 March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 63 of 110 1 Page 29 of 31 Strategic Plan Components GOALS set high-level direction for the Strategic Plan STRATEGIES outline the approach to achieve the goals INITIATIVES describe the actions needed to implement the strategies KEY SUCCESS MEASURES provide examples of how initiatives can be accomplished KEY METRICS quantify and track progress for evaluation 3 Effective Utility Management (EUM) Ten Key Attributes Product Quality Customer Satisfaction Employee and Leadership Development Operational Optimization Financial Viability Infrastructure Strategy and Performance Enterprise Resiliency Community Sustainability Water Resource Sustainability Stakeholder Understanding and Support 4 y� Effective Utility Management March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 64 of 110 2 Page 30 of 31 Role of the Board Vision, Mission, Values, and Goals (VMVG) are adopted by the Board Goals identify the key focus areas upon which staff should base the rest of the Strategic Plan ti Administration Committee reviews the draft Strategic Plan Board adopts the final Strategic Plan Ongoing throughout the Plan years: Administration Committee reviews Key Success Measures and Key Metrics trackers quarterly. General Manager annual performance evaluation is weighed against the Goals. Administration Committee and Board receive Strategic Plan Annual Reports. 5 I 1, Timeline for Adoption of FY 2024-26 Strategic Plan May 2024: Board adoption March 5, 2024: of Strategic Plan Sept.— Feb. 2024 Administration Dec.21, 2023 Leadership Team and Committee reviews Board discussion key stakeholders update and refine the draft Goals, Strategies, facilitated by Nov. 29, 2023 Dr. Larry Bienati Strategies, Initiatives, Key Success Measures, Initiatives, Key Success Staff workshop on proposed to update the VMVG and draft and Key Metrics Measures, and Plan with the Strategies Key Metrics Sept. 21,2023 Board's direction Board workshop to setVMVG C". March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 65 of 110 3 Page 31 of 31 Notable Updates Strategies, Initiatives, and Key Success Measures were updated or reorganized to reflect current priorities and updated Goals Goal 3 — Diversity, equity, and inclusion Goal 4 — Advocacy efforts Goal 7 — Optimizations Division initiatives and Information Technology roadmaps Some adjustments to metrics as noted in the draft Plan TL 4L March 5, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 66 of 110 4