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HomeMy WebLinkAbout12. Approve and adopt proposed non-substantive change to the Goal 3 wording and receive the Fiscal Years (FY) 2024-26 Strategic PlanItem 12. BOARD OF DI RECTORS POSIT ION PA PER M E E T ING D AT E:J UNE 6, 2024 S UB J E C T: A P P R O V E A ND A D O P T P R O P O S E D NO N-S UB S TA NT I V E C HA NG E TO T HE G O A L 3 W O R D I NG A ND R E C E I V E T HE F I S C A L YE A R S (F Y) 2024- 2026 S T R AT E G I C P L A N S UB M I T T E D B Y: C HR I S T I NA G E E , MA NA G E ME NT A NA LYS T I NI T I AT I NG D E PART M E NT: O F F I C E O F T HE G E NE R A L MA NA G E R RE V IE WE D B Y:P HI L I P L E I B E R , D E P UT Y G M - A D MI NI S T R AT I O N G R E G NO R B Y, D E P UT Y G M - E NG I NE E R I NG & O P E R AT I O NS R oger S . B ailey General Manager IS S UE T he B oard is being asked to receive the F iscal Years (F Y) 2024-26 S trategic Plan, which includes a proposed non-substantive change to the District's Goal 3 wording. B AC K G RO UND Since 2014, C entral San has developed two-year strategic plans, which provide overall direction on how C entral San will achieve its vision and mission, while living up to its values. To begin the process of developing the F Y 2024-26 Strategic P lan, the Board held a discussion on September 21, 2023 to review and consider updates to C entral San's Vision, Mission, Values, and Goals (V MV G). T he Administration Committee then reviewed and provided f eedback on a set of proposed V MV G and draf t strategies reflecting the B oard's input. Staf f conducted an internal workshop on November 29, 2023 to refine the S trategies, I nitiatives, K ey Success Measures, and Key Metrics for the F Ys 2024-26 Strategic P lan to meet the V MV G set by the Board. June 6, 2024 Regular Board Meeting Agenda Packet - Page 156 of 231 Page 1 of 46 At its D ecember 21, 2023 meeting, the Board conducted a discussion f acilitated by Central S an's consultant, L arry B ienati, P h.D ., of Bienati Consulting Group, to provide f eedback on the proposed V MV G and draf t S trategies. W ith the B oard's feedback in mind, the leadership team held another workshop in F ebruary to update the plan, af ter which, the leadership team and key stakeholders provided further feedback to create the draf t P lan being presented to the Administration Committee. I n March, the Administration Committee reviewed the draf t Goals, Strategies, I nitiatives, Key S uccess Measures and K ey Metrics - collectively, the draf t F Y 2024-26 Strategic P lan - and recommended Board receipt of the plan as drafted. T he F Y 2024-26 Strategic P lan (Attachment 1) is presented to the B oard for receipt. A minor, non- substantive suggested change to Goal 3 (made to avoid redundancy) is noted in Attachment 2. T he edits made to the plan since Administration Committee review are noted in tracked changes in A ttachment 3. ALT E RNAT I V E S /C O NS I D E RAT IO NS R eceive the F Y 2024-26 Strategic P lan. T he Board could suggest f urther changes to the document and receive the plan with those changes made. F I NANC IAL I M PAC T S T here are no direct financial impacts related to receiving the strategic plan. Central S an's budgeting process defines the resources necessary to achieve the objectives in the strategic plan. C O M M I T T E E RE C O M M E ND AT IO N T he Administration Committee reviewed the draf t Goals, Strategies, I nitiatives, Key S uccess Measures, and Key Metrics at its March 5, 2024 meeting and recommended B oard receipt of the Strategic P lan. RE C O M M E ND E D B O ARD AC T I O N Approve and adopt proposed non-substantive change to the Goal 3 wording and receive the F iscal Years (F Y) 2024-2026 Strategic P lan. AT TAC HM E NT S : D escription 1. F Ys 2024-26 S trategic Plan 2. P roposed E dit to Goal 3 3. E dits since A dministration C ommittee Review 4. P resentation June 6, 2024 Regular Board Meeting Agenda Packet - Page 157 of 231 Page 2 of 46 STRATEGIC PLAN FY 2024–26 A ROADMAP FOR MEETING OUR CHALLENGES, ACCOMPLISHING OUR MISSION, AND SERVING OUR COMMUNITY IN THE MOST EFFICIENT AND COST-EFFECTIVE WAYS Attachment 1 June 6, 2024 Regular Board Meeting Agenda Packet - Page 158 of 231 Page 3 of 46 CENTRAL SAN • STRATEGIC PLANTABLE OF CONTENTS LIST OF ACRONYMS FOUND IN THIS DOCUMENT A MESSAGE FROM THE GENERAL MANAGER Overview 2 Our Vision, Mission, Values 3 The Strategic Planning Process 3 Effective Utility Management 4 Fiscal Year 2024-2026 5 Strategic Plan Goals GOAL 1 6 Customer Satisfaction & Stakeholder Engagement GOAL 2 8 Environmental Stewardship GOAL 3 11 Workforce Diversity, Equity, & Development In An Inclusive Workplace Culture GOAL 4 13 Governance & Fiscal Responsibility GOAL 5 16 Safety & Security GOAL 6 18 Infrastructure Reliability GOAL 7 20 Innovation & Agility CCWD Contra Costa Water District CIP Capital Improvement Program CMMS Computerized Maintenance Management System CO2e Carbon Dioxide Equivalent DERWA Dublin San Ramon Services District– East Bay Municipal Utility District Recycled Water Authority EPA Environmental Protection Agency EPM Enterprise Performance Management ERP Enterprise Resource Planning EUM Effective Utility Management FY Fiscal Year GHG Greenhouse Gas HHW Household Hazardous Waste IT Information Technology kWh Kilowatt–Hour MT Metric Tons NACWA National Association of Clean Water Agencies O&M Operations and Maintenance SSC Sewer Service Charge QA/QC Quality Assurance/Quality Control Central Contra Costa Sanitary District (Central San) is pleased to present our Fiscal Year 2024-26 Strategic Plan. 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. OUR TRACK RECORD For over 77 years, Central San has provided safe and reliable wastewater collection and cleaning for the people of central Contra Costa County. Today, we serve nearly half a million residents and more than 15,000 businesses, cleaning about 13 billion gallons of wastewater every year. Our record of excellence includes 26 consecutive years of 100% compliance with our National Pollutant Discharge Elimination System permit. We also operate a popular Household Hazardous Waste Collection Facility, provide recycled water for landscape irrigation and industrial use, and champion pollution prevention through a variety of education, outreach, and inspection programs. Through prudent planning, industry-leading innova- tion, and the dedication of our employees, Central San has remained resilient in the face of adversity. In recent years, we have weathered major storms, wildfires, pandemic, and economic uncertainty. Throughout, we’ve risen to the challenge of providing essential services without interruption, supporting health, safety, economic vitality, and quality of life in central Contra Costa County. THE ROAD AHEAD At Central San, we’re working hard today to meet the challenges of tomorrow. We’re upgrading aging infra- structure to ensure our system remains reliable and resilient. We’re pursuing new technologies and effi- ciencies to help us make the most of each customer dollar without compromising service. We’re evaluating and implementing new solutions to meet increasingly rigorous regulatory requirements, conserve energy, expand the use of recycled water, and respond to cli- mate change. Moreover, we are dedicated to fostering a more equitable and inclusive workplace that can better serve our diverse community. In December 2023, the Board reaffirmed our mission to protect public health and the environment. They also adopted revised vision, values, and goals that underscore our ongoing commitment to our cus- tomers, employees, and environment. 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 our customers with exceptional service and value, while helping to safeguard our planet. June 6, 2024 Regular Board Meeting Agenda Packet - Page 159 of 231 Page 4 of 46 CENTRAL SAN • STRATEGIC PLAN2 FY 2024–20263 CENTRAL SAN OVERVIEW THE STRATEGIC PLANNING PROCESS OUR STRUCTURE MISSION, VISION, VALUESEstablished in 1946, Central San is a special district of the state of California. Special districts are local public agen- cies formed by residents of a community to provide a specific service. We provide wastewater collection, treat- ment, and disposal services; recycled water production and distribution; and household hazardous waste collec- tion. We maintain more than 1,500 miles of neighborhood sewer pipes and 18 pumping stations to collect and carry wastewater to our regional treatment plant in Martinez. We serve nearly half a million residents and more than 15,000 businesses within a 146-square-mile service area, which includes Alamo, Danville, Lafayette, Moraga, Orinda, Pleasant Hill, Walnut Creek; portions of Martinez and San Ramon; and unincorporated communities within cen- tral Contra Costa County. Central San also cleans the wastewater from the cities of Concord and Clayton, who own and maintain their own collection systems. When developing the Strategic Plan, we used the Effective Utility Management (EUM) model as an overarching tool (see page 4). The EUM was developed by the Environmental Protection Agency and several major water sector associations in 2007. The framework encompasses ten attributes that serve as a blueprint for where effectively managed utilities should focus and what they should aim to achieve. As Central San strives to provide excep- tional service at reasonable rates, we face challenges similar to those facing other water-sector agencies across the country. These challenges include aging infrastructure, robust regulatory requirements, emergency response and resilience, and fiscal and envi- ronmental sustainability. The goals, strategies, initiatives, and key success measures in this Strategic Plan are designed to help us to meet these challenges, accomplish our mission, and serve our community in the most efficient and cost-effective ways. Central San is governed by a five-member Board of Directors elected by voters to serve four-year terms. The staff is managed by a General Manager who serves as the Chief Operating Officer, implements the Board’s policies, and oversees the business of Central San. The organization is divided into three depart- ments–Administration, Engineering and Technical Services, and Operations–which are overseen by two Deputy General Managers who manage day-to-day operations. OUR MISSION To protect public health and the environment OUR VISION To be an industry-leading organization known for environmental stewardship, innovation, and delivering exceptional customer service at responsible rates. OUR 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. • ENVIRONMENTAL SUSTAINABILITY We conduct our business to safeguard and improve our planet. • INTEGRITY We hold ourselves accountable to a high stan- dard of honesty, reliability, and transparency. • INNOVATION We continuously improve and optimize our operations. • DIVERSITY, EQUITY, & INCLUSION We value people of all backgrounds, cultures, and perspectives, and believe that diversity, equity, and inclusion are a source of strength, creativity, and innovation and thus central to how we do business and how we engage with each other at work. SUISUN BAY CONCORD MARTINEZ PLEASANT HILL CLAYTON WALNUT CREEK LAFAYETTEORINDA MORAGA ALAMO DANVILLE SAN RAMON OUR CUSTOMERS BOARD MEMBERS GENERAL MANAGER DEPUTY GENERAL MANAGER DEPUTY GENERAL MANAGER SECRETARY OF THE DISTRICT COUNSEL FOR THE DISTRICT June 6, 2024 Regular Board Meeting Agenda Packet - Page 160 of 231 Page 5 of 46 CENTRAL SAN • STRATEGIC PLAN4 FY 2024–20265 EFFECTIVE UTILITY MANAGEMENT PRODUCT 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 & LEADERSHIP DEVELOPMENT Recruits and retains a workforce that is competent, moti- vated, adaptive, and safe-working. Establishes a partici- patory, 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 pro- fessional and leadership development and strives to create an integrated and well-coordinated senior leadership team. OPERATIONAL OPTIMIZATION Ensures ongoing, timely, cost-effective, reliable, and sus- tainable 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. 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 mainte- nance expenditures, and operating revenues. Establishes predictable rates—consistent with community expectations and acceptability—adequate to recover costs, provide for reserves, maintain support from bond rating agencies, and plan and invest for future needs. INFRASTRUCTURE STABILITY Understands the condition of and costs associated with crit- ical infrastructure assets. Maintains and enhances the con- dition of all assets over the long-term at the lowest 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 Ensures utility leadership and staff work together to antic- ipate and avoid problems. Proactively identifies, assesses, establishes tolerance levels for, and effectively manages a full range of business risks (including legal, regulatory, finan- cial, environmental, safety, security, and natural disaster- related) in a proactive way consistent with industry trends and system reliability goals. GOAL ONE CUSTOMER SATISFACTION & STAKEHOLDER ENGAGEMENT Provide value and reliability to our customers and culti- vate relationships within our community and industry GOAL TWO ENVIRONMENTAL STEWARDSHIP Meet regulatory requirements, promote sustainability, and implement measures to reduce contributions to climate change and mitigate its impacts GOAL THREE WORKFORCE DIVERSITY, EQUITY, & DEVELOPMENT IN AN INCLUSIVE WORKPLACE CULTURE Recruit, empower, and retain a workforce from diverse backgrounds and foster their trust GOAL FOUR GOVERNANCE & FISCAL RESPONSIBILITY Operate a well-run, responsible, and ethical organization emphasizing integrity and transparency GOAL FIVE SAFETY & SECURITY Provide a safe, secure, and healthful workplace that foresees and addresses risks GOAL SIX INFRASTRUCTURE RELIABILITY Maintain facilities and equipment to be dependable, resilient, and long lasting GOAL SEVEN INNOVATION & AGILITY Optimize operations for continuous improvement FISCAL YEAR 2024-26 GOALS WATER RESOURCE ADEQUACY 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 long-term aqui- fer and surface water sustainability and replenishment. COMMUNITY SUSTAINABILITY Is explicitly cognizant of and attentive to the impacts its decisions have on current and long-term future com- munity 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 regu- latory bodies for service levels, rate structures, operat- ing budgets, capital improvement programs, and risk management decisions. Actively involves stakeholders in the decisions that will affect them. June 6, 2024 Regular Board Meeting Agenda Packet - Page 161 of 231 Page 6 of 46 CENTRAL SAN • STRATEGIC PLAN6 FY 2024–20267 CUSTOMER SATISFACTION & STAKEHOLDER ENGAGEMENTGOAL 1GOAL ONE CUSTOMER SATISFACTION & STAKEHOLDER ENGAGEMENT 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 Environmental Protection Agency (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. 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. KEY METRICSGOAL ONE CUSTOMER SATISFACTION & STAKEHOLDER ENGAGEMENT METRIC TARGET Average customer service rating for emergency calls ≥3.8 out of 4.0 Average customer satisfaction rating for permit counter interactions ≥95% Average customer satisfaction rating for construction projects ≥95% Average onsite response time for collection system emergency calls, during working hours ≤30 minutes Average onsite response time for collection system emergency calls, after hours ≤40 minutes Sewer Service Charge (SSC) affordability (EPA Lowest Quintile Residential Indicator) <2% (or lower than High Impact) Participants in public tours and presentations ≥500 Participants in Central San Academy ≥35 Awards or recognitions received ≥10 June 6, 2024 Regular Board Meeting Agenda Packet - Page 162 of 231 Page 7 of 46 CENTRAL SAN • STRATEGIC PLANGOAL 28 FY 2024–20269 ENVIRONMENTAL STEWARDSHIPGOAL TWO ENVIRONMENTAL STEWARDSHIP 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 1 Meet all regulations to protect our environment. 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. • Develop and submit an updated Sewer System Management Plan. • 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 Con- cord 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 eval- uate 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. 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 associ- ated control system with the latest state- of-the-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. • Complete Green Business re-certification for the Martinez campus. • Advance circular economies with suppliers and contractors towards a smaller ecological footprint. June 6, 2024 Regular Board Meeting Agenda Packet - Page 163 of 231 Page 8 of 46 FY 2024–202611 WORKFORCE DIVERSITY, EQUITY, & DEVELOPMENTCENTRAL SAN • STRATEGIC PLANGOAL 210 KEY METRICSGOAL TWO ENVIRONMENTAL STEWARDSHIP METRIC TARGET National Pollutant Discharge Elimination System compliance 0 violations Recycled Water Title 22 compliance 0 violations Title V compliance 0 violations Regulatory Title V work orders completed on time 100% Sanitary sewer overflows ≤1.3 spills per 100 miles of pipeline Spills to public water ≤1 Spills greater than 500 gallons ≤3 Environmental Compliance inspections and permitting completed on time 100% Household Hazardous Waste (HHW) management compliance 0 violations Recycled water distributed to external customers ≥240 million gallons Electricity produced by co-generation using natural gas ≥18 million kWh (reported as a rolling average) Solar power produced at Collection System Operations and HHW Collection Facility ≥220,000 kWh (reported as a rolling average) Solar power produced by a new solar array near the treatment plant ≥3.5 million kWh (reported as a rolling average) Anthropogenic GHG emissions ≤25,000 metric tons (MT) CO2e per calendar year Students served by education programs ≥6,000 GOAL THREE WORKFORCE DIVERSITY, EQUITY, & DEVELOPMENT IN AN INCLUSIVE WORKPLACE CULTURE Recruit, empower, and retain a workforce from diverse backgrounds and foster their trust 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 and summer student opportunities 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 1 Support employees to grow to their fullest capacity while contributing to Central San’s success. KEY SUCCESS MEASURES • Continue the Supervisory and Management Academies, Mentorship Program, and Job Shadowing Program. • Encourage staff to obtain professional or technical certifications and registrations. • Conduct performance planning and apprais- als with a coaching and career development approach, while also establishing and conveying clear expectations. • Continue to promote and expand internal training opportunities. June 6, 2024 Regular Board Meeting Agenda Packet - Page 164 of 231 Page 9 of 46 FY 2024–202613 GOVERNANCE & FISCAL RESPONSIBILITYCENTRAL SAN • STRATEGIC PLANGOAL 312 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 staff’s understanding of our operations and their role in our success. 2 Celebrate employees’ achievements. KEY SUCCESS MEASURES • Recognize staff accomplishments. • Expand the employee recognition program. • Continue to hold the Employee Appreciation Event and Innovations Fair to recognize and thank employees. 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 ACCEPT THE DEI FRAMEWORK AND STRATEGIC PLAN AND UPHOLD ITS PILLARS 1 Accept the plan; assign responsibilities; prioritize and implement key initiatives; and report on progress.KEY METRICSGOAL THREE WORKFORCE DIVERSITY, EQUITY, & DEVELOPMENT IN AN INCLUSIVE WORKPLACE CULTURE METRIC TARGET Average time to fill vacancy (from request to hire) ≤60 days Completion of performance evaluations 100% Average training hours per employee (external and internal training)≥15 Internal promotions (excludes entry-level positions) ≥25% Turnover rate (including retirements)≤6.5% Formal grievances processed Zero GOAL FOUR GOVERNANCE & 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 no later than six months after the end of the fiscal year. • Earn the Government Finance Officers Associ- ation 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) soft- ware and associated systems. June 6, 2024 Regular Board Meeting Agenda Packet - Page 165 of 231 Page 10 of 46 CENTRAL SAN • STRATEGIC PLANGOAL 414 FY 2024–202615 GOVERNANCE & FISCAL RESPONSIBILITYSTRATEGY 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. 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 resilience 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 4 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.KEY METRICSGOAL FOUR GOVERNANCE & FISCAL RESPONSIBILITY METRIC TARGET Board meeting videos posted online 100% Compliance with Public Records Act requests on time 100% Dissemination of interim financial reports 100% Reported material weaknesses or significant deficiencies in internal controls as part of annual financial audit Zero Standard and Poor’s / Moody’s credit ratings AAA/Aa1 Debt service coverage ratio ≥2.0 Debt as a percentage of total assets ≤60% 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 in past 10 years ≥100% Total revenue funded collection system spending in 10-year CIP (projection) ≥100% Operations and Maintenance (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 Board-approved operating budget 90-100% Purchasing requisitions completed within standard processing time ≥85% Contractors/consultants in compliance with insurance requirements through Purchasing (excludes construction/public works contracts done through Capital) ≥80% Actual inventory count value to book value error rate ≤3% Average cost per overflow claim ≤$25,000 June 6, 2024 Regular Board Meeting Agenda Packet - Page 166 of 231 Page 11 of 46 CENTRAL SAN • STRATEGIC PLANGOAL 516 FY 2024–202617 SAFETY & SECURITYGOAL FIVE SAFETY & 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 Man- agement Program and risk inventory. • Activate and engage Risk Mitigation Teams to develop mitigation plans for key strategic risks. • Identify internal audit opportunities based on risk assessments. • Address findings from regular internal and external audits, including testing and improving internal controls. • Collaborate with Contra Costa County to maintain and keep updated a Local Hazard Mitigation 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 training. • Participate in California Water/Wastewater Agency Response Network. • 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. • Improve perimeter security at the Martinez campus. • Continue to modernize access control systems. 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. • Evaluate and test redundancies in network and equipment.KEY METRICSGOAL FIVE SAFETY & SECURITY METRIC TARGET Employee injury and illness lost time incident rate ≤3.3 Safety-prioritized work orders completed on time 100% Days to implement approved Safety Suggestions ≤60 Temporary modified duty provided (Return to Work program) ≥95% of recordable injuries Workers’ compensation experience modifier ≤1.0 Participation in annual Wellness Expo +≥10% each year Emergency response supplies and equipment in stock 100% Employees trained in cybersecurity awareness 100% June 6, 2024 Regular Board Meeting Agenda Packet - Page 167 of 231 Page 12 of 46 CENTRAL SAN • STRATEGIC PLANGOAL 618 FY 2024–202619 INFRASTRUCTURE RELIABILITYGOAL 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 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 Monitor- ing 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 mainte- nance management software (CMMS) to track work orders. • Transfer Pumping Stations Operations preventa- tive 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. • 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 road- maps 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 train- ing for all project managers. • Perform annual CIP self-assessment. • Conduct annual forward-looking delivery capacity review. • Manage all contracts in Enterprise Performance Management (EPM). • Complete internal audit recommendations. • Update all Engineering procedures for Capital Projects.KEY METRICSGOAL SIX INFRASTRUCTURE RELIABILITY METRIC TARGET Planner Updates (work orders improved)≥24 Planned treatment plant preventative maintenance completed on time ≥90% Planned recycled water distribution system preventative maintenance completed on time ≥98% Planned collection system preventative maintenance completed on time ≥98% Pipeline cleaning quality assurance / quality control (QA/QC) On ≥3% of pipelines cleaned on an annual basis Pipeline cleaning QA/QC passing rate ≥95% Pipeline inspected through Closed Circuit Television Program 10% inspected (150 miles) Uptime for vehicles 100% Information system outages affecting normal business operations 100% uptime Data backup and recovery 0 lost data Warehouse stockouts of spares linked to an asset ≤4 Time to fulfill request-to-stock items ≤30 days Capital expenditures as a percentage of capital budgeted cash flow including carry forward ≥80% Miles of sewers replaced ≥6.0 (running three-year average) All large diameter gravity sewers inspected within 5 years ≥11 miles per year in FY 2024-25, ≥15 miles per year starting FY 2025-26 All large diameter siphons cleaned and inspected within 3 years ≥3 siphons per year All pumping station forcemains inspected within 5 years ≥5 forcemains per year starting FY 2025-26 Average time to execute Engineering agreements from complete package submittal ≤2 weeks Contract renewals executed on time for uninterrupted service 100% June 6, 2024 Regular Board Meeting Agenda Packet - Page 168 of 231 Page 13 of 46 CENTRAL SAN • STRATEGIC PLANGOAL 720 FY 2024–202621 INNOVATION & AGILITYGOAL SEVEN INNOVATION & 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 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 Improve- ments to rehabilitate and replace aged equip- ment, 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 electri- cal transformers and switchgear. • Operate and report findings of a Membrane Aerated Biofilm Reactor Intensification Pilot to assess removing nitrogen in existing tankage. • 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 con- tracts management module. • 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 Building information modeling/Computer Aided Drafting & Design 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 SSC development and billing software. • Administer capital projects using EPM technology. • Launch electronic performance appraisal process. 4 Execute roadmaps to improve enterprise governance of IT. KEY SUCCESS MEASURES • Execute Enterprise Asset Management roadmap. • Execute Supervisory Control and Data Acquisition roadmap. • Execute Cybersecurity roadmap. • Execute Geographic Information Systems roadmap. • Execute Business Intelligence - Data Governance roadmap. KEY METRICSGOAL SEVEN INNOVATION AND AGILITY 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 June 6, 2024 Regular Board Meeting Agenda Packet - Page 169 of 231 Page 14 of 46 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. June 6, 2024 Regular Board Meeting Agenda Packet - Page 170 of 231 Page 15 of 46 ATTACHMENT 2 Proposed Edit to Goal 3 1    Below is the list of Strategic Goals, and in tracked changes is the suggested edit to Goal 3 which was made since presented to the Administration Committee. The proposed Goal 3 wording is reflected in the Strategic Plan document (Attachment 1). GOALS Our goals articulate our priorities and how we will fulfill those commitments. GOAL 1. CUSTOMER SATISFACTION AND COMMUNITY ENGAGEMENT Provide 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 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 GOAL 4. GOVERNANCE AND FISCAL RESPONSIBILITY Operate a well-run, responsible, and ethical organization emphasizing integrity and transparency GOAL 5. SAFETY AND SECURITY Provide a safe, secure, and healthful workplace that foresees and addresses risks GOAL 6. INFRASTRUCTURE RELIABILITY Maintain facilities and equipment to be dependable, resilient, and long lasting GOAL 7. INNOVATION AND AGILITY Optimize performance through continuous improvement June 6, 2024 Regular Board Meeting Agenda Packet - Page 171 of 231 Page 16 of 46 ATTACHMENT 3 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 1 GOAL ONE – CUSTOMER SATISFACTION AND STAKEHOLDER ENGAGEMENT 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 Environmental Protection Agency (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. June 6, 2024 Regular Board Meeting Agenda Packet - Page 172 of 231 Page 17 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 2 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. June 6, 2024 Regular Board Meeting Agenda Packet - Page 173 of 231 Page 18 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 3 GOAL ONE – CUSTOMER  SATISFACTION AND STAKEHOLDER ENGAGEMENT – KEY METRICS Metric Target Average customer service rating   for emergency calls ≥3.8 out of 4.0 Average customer satisfaction rating for permit counter interactions   ≥95% Average customer satisfaction rating for construction projects ≥95% Average onsite response time for collection system emergency calls, during working hours ≤30 minutes Average onsite response time for collection system emergency calls, after hours ≤40 minutes Sewer Service Charge (SSC) affordability (EPA Lowest Quintile Residential Indicator) <2% (or lower than High Impact) Participants in public tours and presentations ≥500   Participants in Central San Academy ≥35 Awards or recognitions received ≥10 June 6, 2024 Regular Board Meeting Agenda Packet - Page 174 of 231 Page 19 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 4 GOAL TWO – ENVIRONMENTAL STEWARDSHIP 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   1. Meet all regulations to protect our environment. 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.   Develop and submit an updated Sewer System Management Plan.  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. June 6, 2024 Regular Board Meeting Agenda Packet - Page 175 of 231 Page 20 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 5 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-the-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.  Complete Green Business re-certification for the Martinez campus. June 6, 2024 Regular Board Meeting Agenda Packet - Page 176 of 231 Page 21 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 6  Advance circular economies with suppliers and contractors towards a smaller ecological footprint.    June 6, 2024 Regular Board Meeting Agenda Packet - Page 177 of 231 Page 22 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 7 GOAL TWO – ENVIRONMENTAL STEWARDSHIP – KEY METRICS Metric Target National Pollutant Discharge Elimination System compliance 0 violations Recycled Water Title 22 compliance 0 violations Title V compliance 0 violations Regulatory Title V work orders   completed on time 100% Sanitary sewer overflows ≤1.3 spills   per 100 miles of pipeline Spills to public water ≤1 Spills greater than 500 gallons ≤3 Environmental Compliance inspections and permitting completed on time 100% Household Hazardous Waste (HHW) management compliance 0 violations Gallons of rRecycled water distributed to external customers ≥240 million gallons Electricity produced by co-generation using natural gas ≥18 million kWh (reported as a rolling average) Solar power produced at Collection System Operations and HHW Collection Facility ≥220,000 kWh (reported as a rolling average) Solar power produced by a new solar array near the treatment plant ≥3.5 million kWh (reported as a rolling average) Anthropogenic GHG emissions ≤25,000 metric tons (MT) CO2e per calendar year Students served by education programs ≥6,000 June 6, 2024 Regular Board Meeting Agenda Packet - Page 178 of 231 Page 23 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 8 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 and summer student opportunities 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 1. Support employees to grow to their fullest capacity while contributing to Central San’s success. Key Success Measures  Continue the Leadership and Supervisory and Management 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 staff’s understanding of our operations and their role in our success.   2. Celebrate employees’ achievements. June 6, 2024 Regular Board Meeting Agenda Packet - Page 179 of 231 Page 24 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 9 Key Success Measures  Recognize staff accomplishments.  Expand the employee recognition program.  Continue to hold the Employee Appreciation Event and 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 Accept the DEI Framework and Strategic Plan and Uphold Its Pillars 1. Adopt Accept the plan,; assign responsibilities; ,prioritize and implement key initiatives,; and report on progress. June 6, 2024 Regular Board Meeting Agenda Packet - Page 180 of 231 Page 25 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 10 GOAL THREE – WORKFORCE DIVERSITY, EQUITY, AND DEVELOPMENT IN AN INCLUSIVE WORKPLACE CULTURE – KEY METRICS Metric Target Average time to fill vacancy   (from request to hire) ≤60 days Completion of performance evaluations 100% Average training hours per employee (external and internal training) ≥15 Internal promotions (excludes entry-level positions) ≥25% Turnover rate (including retirements) ≤6.5%  (including retirements) Formal grievances processed Zero June 6, 2024 Regular Board Meeting Agenda Packet - Page 181 of 231 Page 26 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 11 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 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 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. June 6, 2024 Regular Board Meeting Agenda Packet - Page 182 of 231 Page 27 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 12 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 resiliencey 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 4 – 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. June 6, 2024 Regular Board Meeting Agenda Packet - Page 183 of 231 Page 28 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 13 GOAL FOUR – GOVERNANCE AND FISCAL RESPONSIBILITY – KEY METRICS Metric Target Board meeting videos posted online 100% Compliance with Public Records Act requests on time 100% Dissemination of interim financial reports 100% Reported material weaknesses or significant deficiencies in internal controls as part of annual financial audit Zero Standard and Poor’s / Moody’s credit ratings AAA/Aa1 Debt service coverage ratio ൒2.0 Debt as a percentage of total assets ≤60% 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 in past 10 years ≥100% Total revenue funded collection system spending in 10-year CIP (projection) ≥100% Operations and Maintenance (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 Board-approved operating budget 90-100% June 6, 2024 Regular Board Meeting Agenda Packet - Page 184 of 231 Page 29 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 14 Purchasing requisitions completed within standard processing time ≥85% Contractors/consultants in compliance with insurance requirements through Purchasing (excludes construction/public works contracts done through Capital) ≥870% Actual inventory count value to book value error rate ≤3% Average cost per overflow claim ≤$25,000 June 6, 2024 Regular Board Meeting Agenda Packet - Page 185 of 231 Page 30 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 15 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.  Activate and engage Risk Mitigation Teams to develop mitigation plans for key strategic risks.  Identify internal audit opportunities based on risk assessments.  Address findings from regular internal and external audits, including testing and improving internal controls.  Collaborate with Contra Costa County to maintain and keep updated a Local Hazard Mitigation Plan.   June 6, 2024 Regular Board Meeting Agenda Packet - Page 186 of 231 Page 31 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 16 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 training.  Participate in California Water/Wastewater Agency Response Network.  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.  Improve perimeter security at the Martinez campus.  Continue to modernize access control systems.   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.Evaluate and test redundancies in network and equipment. June 6, 2024 Regular Board Meeting Agenda Packet - Page 187 of 231 Page 32 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 17 GOAL FIVE – SAFETY AND SECURITY – KEY METRICS Metric Target Employee injury and illness lost time incident rate ≤3.3 Safety-prioritized work orders completed on time 100% Days to implement approved Safety Suggestions ≤60 Temporary modified duty provided (Return to Work program) ൒95% of recordable injuries Workers’ compensation experience modifier ≤1.0 Participation in annual Wellness Expo +൒10% each year Emergency response supplies and equipment in stock 100% Employees trained in cybersecurity awareness 100%   June 6, 2024 Regular Board Meeting Agenda Packet - Page 188 of 231 Page 33 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 18 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 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. June 6, 2024 Regular Board Meeting Agenda Packet - Page 189 of 231 Page 34 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 19  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 (EPM).  Complete internal audit recommendations.  Update all Engineering procedures for Capital Projects. June 6, 2024 Regular Board Meeting Agenda Packet - Page 190 of 231 Page 35 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 20 GOAL SIX – INFRASTRUCTURE RELIABILITY – KEY METRICS Metric Target Planner Updates (Wwork orders improved by Maintenance Planners) ≥24 Planned treatment plant preventative maintenance completed on time ≥90% Planned recycled water distribution system preventative maintenance completed on time ≥98% Planned collection system preventative maintenance completed on time ≥98% Pipeline cleaning quality assurance / quality control (QA/QC) On ≥3% of pipelines cleaned on an annual basis Pipeline cleaning QA/QC passing rate ≥95% Pipeline inspected through Closed Circuit Television Program   10% inspected   (150 miles) Uptime for vehicles 100% Information system outages affecting normal business operations 100% uptime Data backup and recovery 0 lost data Warehouse stockouts of spares linked to an asset ≤4 Time to fulfill request-to-stock items ≤30 days  Capital expenditures as a percentage of capital budgeted cash flow including carry forward ≥80% Miles of sewers replaced ≥6.0 (running three-year average) June 6, 2024 Regular Board Meeting Agenda Packet - Page 191 of 231 Page 36 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 21 All large diameter gravity sewers inspected within 5 yearsLarge diameter and force main condition assessment ≥11 miles per year in FY 2024-25 ≥15 miles per year starting FY 2025-26≥3 miles per year All large diameter siphons cleaned and inspected within 3 years ≥3 siphons per year All pumping station forcemains inspected within 5 years ≥5 forcemains per year starting FY 2025-26 Average time to execute Engineering agreements from complete package submittal ≤2 weeks Contract renewals executed on time   for uninterrupted service 100% June 6, 2024 Regular Board Meeting Agenda Packet - Page 192 of 231 Page 37 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 22 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 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.  June 6, 2024 Regular Board Meeting Agenda Packet - Page 193 of 231 Page 38 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 23  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 Building Information Modeling/Computer Aided Drafting & Design 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 SSC development and billing software.  Administer capital projects using EPM technology.  Launch electronic performance appraisal process. 4. Execute roadmaps to improve enterprise governance of IT.  Key Success Measures  Execute Enterprise Asset Management roadmap.  Execute Supervisory Control and Data Acquisition roadmap.  Execute Cybersecurity roadmap.  Execute Geographic Information Systems roadmap.  Execute Business Intelligence - Data Governance roadmap. June 6, 2024 Regular Board Meeting Agenda Packet - Page 194 of 231 Page 39 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 24 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 June 6, 2024 Regular Board Meeting Agenda Packet - Page 195 of 231 Page 40 of 46 Changes to the FY 2024-26 Strategic Plan since Administration Committee Review 25 Acronyms  Contra Costa Water District (CCWD)  Capital Improvement Plan (CIP)  Computerized Maintenance Management Software (CMMS)  Dublin San Ramon Services District – East Bay Municipal Utility District Recycled Water Authority (DERWA)  Environmental Protection Agency (EPA)  Enterprise Performance Management (EPM)  Enterprise Resource Planning (ERP)  Greenhouse Gas (GHG)  Information Technology (IT)  National Association of Clean Water Agencies (NACWA)  Operations and Maintenance (O&M)  Sewer Service Charge (SSC) June 6, 2024 Regular Board Meeting Agenda Packet - Page 196 of 231 Page 41 of 46 1 Receive Fiscal Years (FY) 2024-26 Strategic Plan Board Meeting Christina Gee Management Analyst June 6, 2024 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 1 2 ATTACHMENT 4 June 6, 2024 Regular Board Meeting Agenda Packet - Page 197 of 231 Page 42 of 46 2 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 Strategic Plan Components GOALS set high-level direction for the Strategic Plan 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 3 4 June 6, 2024 Regular Board Meeting Agenda Packet - Page 198 of 231 Page 43 of 46 3 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 •Administration Committee reviews the draft Strategic Plan •Board receives 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 Timeline for Adoption of FY 2024-26 Strategic Plan 6 Sept. 21, 2023 Board workshop to set VMVG Nov. 29, 2023 Staff workshop to update the Plan with the Board’s direction Dec. 21, 2023 Board discussion facilitated by Dr. Larry Bienati on proposed VMVG and draft Strategies Sept. – Feb. 2024 Leadership Team and key stakeholders update and refine the Strategies, Initiatives, Key Success Measures, and Key Metrics March 5, 2024: Administration Committee reviews draft Goals, Strategies, Initiatives, Key Success Measures, and Key Metrics June 6, 2024: Board receives Strategic Plan 5 6 June 6, 2024 Regular Board Meeting Agenda Packet - Page 199 of 231 Page 44 of 46 4 Proposed Edit to Goal 3 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 WORKFORCE DIVERSITY EQUITY, AND DEVELOPMENT IN AN INCLUSIVE WORKPLACE CULTURE Recruit, empower, and retain a workforce from diverse backgrounds and foster their trust 7 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 8 7 8 June 6, 2024 Regular Board Meeting Agenda Packet - Page 200 of 231 Page 45 of 46 5 Questions? 9 9 June 6, 2024 Regular Board Meeting Agenda Packet - Page 201 of 231 Page 46 of 46