HomeMy WebLinkAboutPPP 02-17-2021 Strategic Plan Workshop2/17/2021
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2021 Strategic Plan Workshop
February 17, 2021
Strategic Planning
Presenter: John Withers
Board Vice‐Chairman
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The Process
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Schedule
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Today’s Policy Discussions:
1. Budget Control & Fiscal Discipline
2. Cyber Security
3. Property Management
4. Resilient Staffing
5. Safety and Physical Security
Strategic Planning Development
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Budget Control & Fiscal Discipline
Presented by:
Lorenzo Tyner
Assistant General
Manager
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The Sanitation District will prudently
manage the public funds that it collects.
It will take a long-term planning
approach to its facilities and rate setting
that provides a stable rate program,
prudent reserves and pay as you go
philosophy for operating and
replacement of capital expenses.
Policy
Statement
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1. Stable
2. Conservative
3. Responsible
4. Generational Equity
Governing Principles
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Ten Year Cash Flow Projections
1. Consistent Revenue
Broad-based – Single Family Residential = 75% of revenue.
No one business or industry can impact.
2.Low Rates
Consistently in the lower third of our comparison agencies.
They meet various metrics indicating our rates are low.
3.Moderate (and low) Increases
Increase between 1%-2% over the next 10 years.
Avoids rate spikes or additional debt.
Stability = Rates
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1. Safety
The safety and preservation of principal is the foremost
objective of the investment program.
2. Liquidity
The program will ensure that sufficient funds are always
available to meet our capital and operational needs.
3. Return on Investment
The investment portfolio will achieve a rate of return
commensurate with legal, safety, and liquidity considerations.
Conservative = Portfolio Management
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1. Capital Focus
Debt initiatives and proceeds will be used only to support
our Capital Improvement Program (CIP).
2. Established Time Horizon
All debt in the portfolio will be issued with the consideration
of a set payoff date.
3. Debt Restructuring
Debt restructuring will be used to reduce interest rates
and/or term with the specific goal principal reduction.
Responsible = Debt Management
Financing and Pay As You Go – Finding the
Balance
Major Elements
a) Rates
b) Portfolio Management
c) Debt Management
Generational Equity
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•Initiative:Maintain a stable and fiscally responsible financial plan that is based on
long-term planning which supports stable rate setting and a “pay as you go”
philosophy for operating and replacement capital expenses.
•Initiative:Maintain the current investment policy that prioritizes safety, liquidity
and return on investment, in that order.
•Initiative:Maintain a long-term debt program that will pay off all existing debt
issuances by 2044 and avoid new debt to support existing facilities.
•Initiative:Maintain all Post Employment Benefit funding levels between 95% and
105% while minimizing and/or eliminating and Unfunded Actuarially Accrued
Liabilities.
•Cost Containment Initiatives:Energy Independence, Asset Management,
Chemical Sustainability
Initiatives
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Include status update on GM Work Plan items that tie
to this policy statement:
UPDATE: Complete.Options were presented to the
Administration Committee in September. The
Committee directed staff to create and issue a
Request for Proposal (RFP) for Section 115 Trust
Services. The RFP was issued on January 11, 2021.
Steps since the adoption of the plan.
Progress
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Questions
?
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Cyber Security
Presented by:
Lorenzo Tyner
Assistant General
Manager
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OC San must maintain adequate
cyber security (information
technology security) techniques
that protect computer assets,
networks, programs, data, and
industrial control equipment from
unauthorized access or attacks
that are aimed for exploitation.
Policy
Statement
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Confidential Information
• Staff will provide a general update to the
Audit Ad Hoc Committee
• A more detailed briefing will be provided
to the Board at an upcoming closed
session
Board Updates
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Real Estate and Property
Management
Presented by:
Lorenzo Tyner
Assistant General
Manager
OC San is not in the business of
managing property as a revenue
enhancement or core activity.
However, it does own and operate
millions in physical property and
property rights.
OC San will effectively manage these
assets and proactively research and
maintain all encroachments,
encumbrances and easements.
Policy
Statement
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OC San has more than $11 billion in assets
• Most of these assets are directly related to the plant
or physical infrastructure.
• However, OC San owns considerable real estate,
property rights, and easements.
• OC San owns and maintains real estate for the
specific purpose of supporting its operations. OC
San does not purchase for speculation or
investment purposes.
OC San Assets
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In the last three years, OC San has been very active
• In February 2017, OC San purchased two the properties each
approximately 25,000 square feet. This will be the location of OC
San’s future headquarters building.
• In March 2018, OC San purchased a commercial office building that
currently houses OC San’s Resource Protection Division with 37
staff, as well as nine commercial tenants.
• In August 2018, OC San purchased 3 commercial/industrial
properties with a combined total of 66,000 square feet. This will be
part of the new Headquarters parking compound. When purchased,
the properties were leased to a total of 8 tenants.
• In April 2019, OC San sold its Garden Grove commercial/industrial
building. This building has been leased to the same tenant since
2011 and had generated more than $1.6 in revenue prior to its sale.
Recent Property Activities
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Continued…
• Edinger Pump Station (Huntington Beach)
• Bay Bridge Pump Station (Newport
Beach)
• Slater Pump Station (Huntington Beach)
• Western Regional Sewers Project
(Denni Street, Cypress)
Recent Property Activities
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Upcoming Activities
• Yorba Linda Pump Station (Fullerton)
• Miller-Holder Trunk Sewer
(Huntington Beach)
• Mass Annexations in our Service Area
Recent Property Activities
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OC San is often involved with other agencies
• OC San has leased two of its vacant buildings to the
Fountain Valley Police and Fire Departments for training exercises.
• The Fire Department runs nighttime training exercises
and has numerous joint sessions scheduled with the City
of Huntington Beach Fire Department between October
and May.
• Before the Doig Drive building was leased, the City of
Garden Grove’s K-9 unit utilized that
commercial/warehouse for drug sniffing exercises with their elite team of canine officers.
Other Property Activities
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OC San has just begun to assess all its property
rights
•OC San has a vast array of property rights including
ownership in fee, easements, permits, perpetual
encroachment permits, licenses and leases, as well as
shared utility corridor rights, and public rights-of-way.
• OC San is working with an outside consultant to map,
label, and quantify all property rights and encumbrances
inside and outside of the plants.
• We hope to complete the project by the end of June 2021.
Property Rights and Easements
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• OC San maintains minimal staff that currently manages
its Real Estate or Property Management activities.
• Staff is familiar with general issues in this area
• OC San utilizes General Counsel as needed
• To date, OC San has made a conscious decision to use
in-house generalists and general counsel for its day-to-
day needs instead of building property management
infrastructure and adding staff.
• OC San has relied on specialized contracted resources
when specialized support is required.
OC San Resources
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Initiative: Complete work with an outside
consultant to map, label, and quantify all
property rights and encumbrances inside and
outside of the plants.
Initiative: As part of the 2020-22 budget
process, add in-house professional real
estate and property management staff to
ensure comprehensive management of OC
San’s significant real estate and property
rights.
Initiatives to Support Policy
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Questions
?
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Resilient Staffing
Presented by:
Celia Chandler
Director of Human
Resources
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Policy
Statement
The Orange County Sanitation District will
attract and retain high-quality talent to
support its mission and continue to be an
industry leader. It will safeguard
leadership continuity and support
effective performance of the organization
by proactively monitoring the changing
work environment and requirements to
ensure development programs are
relevant and build a skilled bench of
readily available successors for key
leadership and mission-critical positions.
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Background
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Retirement Eligibility
100%
43%46%
25%
40%
28%
100%
71%
60%
37%
53%
42%
0%
20%
40%
60%
80%
100%
EXECUTIVE MANAGER SUPERVISOR PROFESSIONAL PARA‐
PROFESSIONAL
TRADES
2021 2024
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Workforce Vulnerability Assessments
Management annually evaluates key and vulnerable positions,
based on:
• Criticality
• Retention
• Difficulty to Fill
To develop current and future staffing plans.
Talent Readiness Assessments
Feeder positions are identified, and talent pools are developed
to build a talent pipeline for key and vulnerable positions.
Workforce Planning
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Overview of Existing Programs
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Vocational Internship
One Year Internship
Technical Trades within
Operations & Maintenance
• Wastewater
Operations
• Electrical
• Instrumentation
• Mechanical
• Rebuild
• Collections
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Professional Student Internships
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Employee Development
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Recruitment and Selection
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Partnerships
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Leadership Development
Technology
Leadership
OC San
Business Systems
Communication
Partnerships
for the Future
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Initiatives
Maintain and enhance current programs to provide
the direction to identify, develop, attract and retain
the next generation of prepared, capable and
engaged leaders.
Continue cyclical Classification & Compensation
studies to ensure job classifications accurately depict
the work and that compensation levels are set
accordingly.
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Questions
?
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Safety and Physical Security
Presented by:
Celia Chandler
Director of Human
Resources
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The Orange County Sanitation District will ensure the
safety and security of employees, contractors, and
visitors through standard practices, policies, and
procedures that support a safe and secure
environment, provide an appropriate level of security
and safeguard OC San’s property and physical
assets.
Policy Statement
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• Cal OSHA requires a workplace free of recognized hazards
• OC San has committed to continuously identify and
mitigate all workplace hazards
• OC San has robust safety and health programs that are
compliant with Cal OSHA safety orders and best industry
practices
• Additionally, OC San provides physical security of plant
infrastructure, as well as emergency preparedness,
response, and recovery to ensure continuity of service to
the public
• Safety of the public and employees is OC San’s top priority,
engrained into our culture across all levels
Background
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Overview of Existing Programs
SecuritySafety
Emergency Management
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• Oversees both operational and construction
safety
• Develops and implements policies and
procedures to ensure a safe work environment
• Provides job specific safety training
• Conducts audits, inspections, incident
investigations, and high hazard work
coordination
• Regulatory Liaison (i.e., Cal OSHA)
• Pursuing safety excellence through
coordination and application to Cal OSHA’s
Voluntary Protection Program (Cal VPP)
Safety
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• Developed, implemented, and
maintains the Integrated Emergency
Response Plan (IERP) and Continuity
of Operations Plan (COOP)
• Collaborations with local agencies and
municipalities, such as the Water
Emergency Response Organization of
Orange County (WEROC) for mutual
aid and resources
• Conducts emergency response
exercises to ensure staff are prepared
and ready for responding to workplace
emergencies
Emergency
Management
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• Manages third-party security
vendor who monitors the physical
campus, which includes patrols
and video surveillance
• Assists Engineering with physical
security on new projects
• Oversees Security Advisory
Committee (Physical and Cyber
Threats)
Security
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Safety
2019 Initiatives Update
Complete outstanding safety projects,
improvements, and corrective actions to apply
and obtain Cal/OSHA Voluntary Protection
Program (VPP) status
• J-126 Safety Improvement Project, Completed
January 2021
• Annual Third-Party VPP Safety Audit,
Completed August 2020, All Corrective
Actions Completed
• VPP Application Submitted June 30, 2020,
Application Under Review
Actions
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Support facility and countywide emergency preparedness, response, and recovery efforts by
partnering with entities, such as, the Water Emergency
Response Organization of Orange County (WEROC),
Orange County Sheriff Department, and local fire
departments.
2019 Initiatives Update
Emergency Management
• Partnered with WEROC to develop and submit the Orange
County Water and Wastewater Mitigation Plan (Plan) to the State,
Completed 2019
• Actively updating OC San’s emergency operating plans (EOPs),
which are specific response measures for potential emergencies
as identified in the IERP.
• Preparing full scale emergency exercise for incident along OC
San’s Interplant Digester Gas Pipeline, scheduled for April 2021.
Actions
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Security
2019 Initiatives Update
Continually identify and assess vulnerabilities and
implement solutions through the Security Committee and
third-party assessments. Prevent/mitigate security
breaches using physical security systems such as video
monitoring, access control and armed security patrols.
• New security vendor providing enhanced services and
resources, started January 1, 2020.
• Replacement of security cameras identified as out of
service or with poor visibility.
• Development and implementation of Physical Security
Plan: a risk assessment tool for new projects or major
renovations to identify security hazards and implement
appropriate control measures.
Actions
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Questions
?
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Virtual Tour
February 18 from 3 to 4 p.m.
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Policy Discussions:
1. Asset Management
2. Energy Independence
3. Climate and Catastrophic Event Resiliency
4. Water Reuse
5. Chemical Sustainability
Workshop #2 ‐March 17 @ 2 p.m.
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Policy Discussions:
1. Emerging Pollutants (Constituents of Emerging
Concern)
2. Biosolids Management
3. Environmental Water Quality, Stormwater
Management and Urban Runoff
4. Food Waste Treatment - energy, capital, operations,
regulations, policy
Workshop #3 – April 21 @ 2 p.m.
Rob Thompson
Assistant General Manager
714.593.7310
rthompson@ocsd.com
Jennifer Cabral
Administration Manager
714.593.7581
jcabral@ocsd.com
Questions
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