Agenda Packets - Board - 2006 ?? - Strategic Plan WorkshopCosta Mesa Sanitary District
Agenda for Strategic Plan Workshop
I Welcome
II Expectations
III Report on Interviews
IV Develop Agenda of Key issues
V Develop the Strategic Action Plan
o Discuss forest versus trees approach
o Develop Issue by issue plan
1. Define the ISSUE
2. Define the STRATEGIC OBJECTIVE for each issue
3. Decide WHAT to do
4. Decide WHEN action is due
5. Decide WHO is responsible
6. Identify RESOURCES
7. TEST against strategic Objective
VI Consider Developing Integrated Strategic Plan
o Mission, vision goals, etc
o Samples
VII Test Results Against Expectations
Costa Mesa Sanitary District
Issues from Strategic Planning Interviews
Sewer
• Eliminate Pump Stations
• Increased Maintenance and Upgrades of Sewer System
• Meet WDR
• Assist with Laterals
• Implement Asset Management Approach -- Quantify Needs, Costs, Etc
• Respond to Odor Control Concerns
• Emergency Response: Who? How?
Personnel
• Code Enforcement Officer and Maintenance Supervisor. Overworked,
Need Backup, and Eventual Successor.
• Ensure Transfer of Institutional Memory from Key Employees
• Decide on Field Crew: Employee, Contract Or Both. Financial and
Operational Issues to Consider with Field Crew
Finances
• Ensure Adequate Reserves
• Increase Sewer CIP Funding
• Increase Sewer Rates
• Increase Fixture Fees
• Develop Financial Master Plan
Relationships
• Public Reaction To Perceived Negative Solid Waste Issues: "Free Cans ",
Cans Must be Closed, Extra Charge for Extra Cans, Etc
• What is the Public View of District Overall?
• Possible Survey to Understand Public View and Test Messages
• Improve Relationship With City
Yard
• Pros and Cons Own Property Versus Lease With County Fair. Consider
Possible Single Space For Administration Plus Field Yard. Consider
Financial and Long Term Service Pros and Cons
Strategic Plan
• Consider Expanding Current Strategic Action Plan Into Integrated Strategic
Plan
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SAMPLE GOALS
The following are the permanent goals of Castaic Lake Water Agency.
Taken together, they accomplish the Agency's Mission.
1.0 COMMUNICATION
Castaic Lake Water Agency will maintain open communication and develop positive
relationships with stakeholders in the region.
2.0 ENVIRONMENT
Castaic Lake Water Agency will be a steward of the environment.
3.0 FINANCE
Castaic Lake Water Agency will maintain a long- range, well - planned and stable
financial condition.
4.0 LEADERSHIP
Castaic Lake Water Agency will coordinate, facilitate and support efficient and effective
water management practices and activities.
5.0 OPERATIONS
Castaic Lake Water Agency will conduct its operations and plan, build and maintain its
facilities cost effectively and efficiently.
6.0 ORGANIZATION
Castaic Lake Water Agency will employ a high quality workforce that provides the core
competencies it needs.
7.0 WATER MANAGEMENT
Castaic Lake Water Agency will provide its expertise and services to willing partners in
the Santa Clarita Valley.
Goal 3: Operations
Conduct the District's technical and administrative
operations in an efficient and businesslike manner,
meeting all regulatory requirements, while optimizing
operational effectiveness and efficiency.
Objective 3.1: Take advantage of advanced technology, equipment and processes,
where appropriate, to improve operations and increase cost effectiveness.
Action 3.1.1: Perform a detailed needs assessment regarding potential
implementation of Geographic Information System (GIS) technology.
Action 3.1.1.1: Implement an appropriate and cost effective GIS System.
Action 3.1.2: Perform a detailed needs assessment regarding potential
implementation of a Computerized Maintenance Management System (CMMS).
Action 3.1.2.1: Implement an appropriate and cost effective CMMS.
Action 3.1.3: Quarterly report to the Board progress on administrative and
operational technological enhancements as identified and overseen by the Computer
Committee.
Objective 3.2: Optimize efficiency and costs of administrative and technical internal
operations. Include in -house versus outside decisions.
Action 3.2.1: Develop benchmark studies of operations at similar agencies and
within the industry to help establish and /or validate operational Objectives for the
District.
Action 3.2.2: Evaluate the District's current practices of outsourcing selected
operations and services.
Objective 3.3: Maintain an understanding and knowledge of current and future
applicable regulatory requirements affecting the District.
Action 3.3.1: Communicate with regulatory agencies and industry groups with
expertise regarding the regulatory environment.
Objective 3.4: Maintain an optimum and appropriate workforce for the long -term.
Action 3.4.1: Complete a workforce needs assessment.
Action 3.4.2: Complete evaluation of non -core outsource opportunities.
Action 3.4.3: Update workforce succession plan.
Objective 3.5: Maintain the District's Emergency Response Plan and security
arrangements.
Action 3.5.1: Review and update the Emergency Response Plan.
Action 3.5.2: Conduct adequate employee emergency response training.
Action 3.5.3: Collaborate and integrate District plans with regional agencies.
Objective 3.6: Develop, upgrade, and maintain in excellent operating condition the
required water and wastewater infrastructure to meet our customers' needs.
Action 3.6.1: Update the District's major planning documents on an appropriate
schedule to assure that they remain up -to -date and relevant. Establish a timetable
for review and update of each facility planning document. Include the following:
• Strategic Plan
• Water and Sewer Facilities Master Plan
• Urban Water Management Plan
• Infrastructure Vulnerability Assessment
• Emergency Response Plan
• Asset Management Plan
• Capital Facilities Refurbishment and Replacement Plan
• Sewer System Management Plan
• Related regional plans
Action 3.6.1.1: Implement each of the plans appropriately to assure that
District facilities continue to be available, reliable and current.
3.0 FINANCE
Castaic Lake Water Agency will maintain a long range, well planned and
stable financial condition.
3.1 Financial decisions will be based on a long -term perspective, and follow the
general guidance of a financial master plan.
3.1.1 Develop a long -term financial forecast. [Administration)
3.2 Costs will be applied to those who benefit from an expenditure; existing and future
users will each pay their fair share.
3.2.1 Implement an annexation policy that responds to legislative and
regulatory requirements, and that takes due regard for the needs of
existing residents [ongoing]. {Management}
3.3 Operations should be financially self sustaining (i.e., pay for themselves).
3.3.1 Assess the cost allocation and work order system, and update as needed
[ongoing]. 1 Administration 1
3.4 Rates, charges and fees will reflect actual costs wherever possible, and not be
in appropriately subsidized.
3.4.1 Analyze and adjust as appropriate the wholesale water rate
structure [6/04]. 1 Administration)
3.4.2 Complete review and adjust as appropriate retail water rates [12/03].
{Retail Division}
3.5 Investment of Agency reserves will follow the priorities of safety, liquidity and
yield, in that order, consistent with the Agency's Investment Policy.
3.5.1 Provide and submit quarterly Investment Reports in a timely manner
[6/04]. 1 Administration 1
3.6 No subsidization is allowed between the wholesale and retail operations of the
Agency.
3.6.1 Maintain separate budget and financial records for the Retail Division
[ongoing]. {Administration/Retail Division}
3.6.2 Properly account for any shared resources such as the Administrative
Services Manager, Human Resources/Risk Management Supervisor, payroll
system and equipment [ongoing]. {Administration/Retail Division)
EXAMPLE OF QUESTIONS USED TO DEVELOP OBJECTIVES
Operations Issues
Are the District's operations really as efficient as it is believed? What is
the best means to measure the efficiency of the District's operations?
2. Is the District fully taking advantage of the most up -to -date computer
technology and other technological advances, such as GIS (Geographic
Information System)?
3. How ready is the District for emergencies and catastrophic events?
4. Has the District updated business and administrative operations for top
efficiency?
5. Security —are the District's facilities really safe?
Personnel Issues
6. Has the District developed adequate succession plans to accommodate
future staff retirements?
7. Has the District developed and implemented policy /guidelines to facilitate
decisions about when to effectively outsource services inclusive of
professional consultant services.
Finance Issues
Generally, does the District have adequate revenues to meet its future
needs?
9. What is the appropriate rate structure that meets the District's financial
needs yet does not unduly impact its customers
1.0. Are the charges for wastewater service appropriate and competitive?
11. Has the District adequately accommodated the post retirement employee
benefits to which it is committed?
Regional Issues
12. Consider the District's role in the regional need for additional water
storage
13. Is the District maximizing community of interest opportunities with
neighboring water agencies in particular with the Moulton Niguel, Irvine
Ranch and Santa Margarita Water Districts?
Objective 3.0 Operations
Conduct the District's technical and administrative operations in an efficient and
businesslike manner, meeting all regulatory requirements, while optimizing operational
effectiveness and efficiency.
Ob_lective 3.1 Take advantage of advanced technology, equipment and processes, where appropriate, to improve
operations and increase cost effectiveness.
Action 3.1.1
Action 3.1.1.1
Action 3.1.2
Action 3.1.2.1
DEPT STAFF DATE
Perform a detailed needs assessment regarding potential implementation of Geographic Information Eng
System (GIS) technology. (1)
DPC
Jun -07
Implement an appropriate and cost effective GIS System. (1) Eng
DPC
Jun -10
Perform a detailed needs assessment regarding potential implementation of a Computerized Maintenance Eng
Management System (CMMS). (1)
DPC
Jun -07
Implement an appropriate and cost effective CMMS. (1) Eng
DPC
Jun -10
i
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COSTA MESA SAA99ARVDISTRICT
Memorandum
To: Board of Directors
From: Marc Davis, District Treasurer
Date: January 22, 2007
Subject: 2006 -07 Mid -Year Budget Review
... an Independent Special District
This report represents a review of the status of the District's budget as of December 31, 2006.
For analysis purposes, only the District's trash and sewer funds were reviewed. The mid -year
review for each fund is as follows.
Trash Fund
The Trash Fund is expecting to have budgetary savings totaling approximately $150,000.
Attachment A documents the details of the mid -year budget review of this fund. Explanations
of significant variances are as follows.
Revenues:
• Other revenue should exceed the budget by approximately $51,000 resulting from gains
on sales of assets ($10,700), implementation of trash container fees ($3,400), general
property taxes ($30,000) and penalties on delinquent payment of taxes ($6,600).
Expenses:
• Salaries and wages are projected to exceed the budget by $5,500 as a result of greater
overtime ($1,300) and the hiring of the Receptionist and Accounting Assistant ($4,200).
• Professional services are projected to be under budget by approximately $9,100
resulting from fewer hours incurred by the District Manager ($7,200) and savings of
$1,900 by hiring the Accounting Assistant as a part -time employee.
1
• Recycling /disposal costs are projected to be under budget by $115,000 due to a
reduction in tonnage.
• Interest costs will exceed the budget by approximately $19,000. The interest costs
represent payment of interest on the lease of the trash containers. When the lease was
fully paid, a final interest payment was due. Future years' budgets will not include this
line item since the lease has been paid -off.
Sewer Fund
The Sewer Fund is expecting to have budgetary savings totaling approximately $69,000.
Attachment B documents the details of the mid -year budget review of this fund. Explanations
of significant variances are as follows.
Revenues:
• Other revenues are projected to fall short of estimates by approximately $64,000. This
is primarily attributable to a reduction in plan check fees and sewer charges 'billed
directly.
Expenses:
• Salaries and wages are projected to exceed the budget by approximately $51,000 as a
result of greater overtime ($20,000) and the hiring of the Receptionist and Accounting
Assistant ($31,000).
• .Professional services are projected to be under budget by approximately $55,000
resulting from fewer hours incurred by the District Manager ($15,000), a reduction in
plan checks ($25,000) and savings of $15,000 by hiring the Accounting Assistant as a
part -time employee.
• Sewer maintenance is expected to be less than budget by approximately $133,000.
This is primarily attributable to savings in the contracted pump station and sewer
maintenance contracts ($145,000). This was the first year in which these contracts
were let. Prior to fiscal year 2006 -07, the District contracted with the City for these
services. These savings were partially offset by increased overtime incurred for pump
station failures ($12,000).
2
COSTA MESA SANITARY DISTRICT
Mid -Year Budget Review
Fiscal Year 2006 -07
Revenue:
Trash charges
Other revenue
Total revenue
Expenses:
Salaries and wages
Professional services
Trash hauler
Recycling /disposal
Election expense
Building /equipment maintenance
Office expense
Public information
Dues and memberships
Staff development
Liability insurance
Utilities
Interest
Special programs
Contingency
Total expenses
Trash Fund
Estimated
Budget Actual
ATTACHMENT A
Variance
Favorable/
(Unfavorable)
$ 5,070,000 5,070,000 -
126,500 177,739 51,239
5,196,500 5,247,739 51,239
131,171
136,723
(5,552)
112,790
103,677
9,113
2,350,000
2,350,000
-
2,415,000
2,300,000
115,000
20,000
20,000
-
3,230
3,520
(290)
11,400
11,400
-
11,000
11,000
-
10,000
10,000
-
2,099
2,099
-
6,000
6,161
(161)
2,250
2,360
(110)
24,728
43,941
(19,213)
65,500
65,719
(219)
34,800
34,800
-
5,199,968 5,101,400 98,568
Revenue over (under) expenses $ (3,4U146,339 149,807
'?
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COSTA MESA SANITARY DISTRICT
Mid -Year Budget Review
Fiscal Year 2006 -07
Revenue:
Sewer charges
Other revenue
Total revenue
Expenses:
Salaries and wages
Professional services
Election expense
Building /equipment maintenance
Office expense
Public information
Dues and memberships
Staff development
Liability insurance
Utilities
Non - operating expense
Sewer maintenance
C I P 06 -07
Contingency
Total expenses
Sewer Fund
Estimated
Budget Actual
ATTACHMENT B
Variance
Favorable/
(Unfavorable)
$ 2,525,000 2,525,000 -
571,000 506,915 (64,085
3,096,000 3,031,915 (64,085)
526,151
577,435
(51,284)
410,312
355,711
54,601
25,000
25,000
-
23,500
23,900
(400)
33,200
35,200
(2,000)
11,500
11,500
-
32,371
32,371
-
26,491
26,491
-
55,000
58,145
(3,145)
23,000
21,201
1,799
115,000
115,000
-
1,012,642
879,506
133,136
775,000
775,034
(34)
23,200
23,200
-
3,092,367 2,959,694 132,673
Revenue over (under) expenses $ 3,633 72,221 68,588
121
a
Costa Mesa Sanitary District
Adopted Liquid Waste Budget
Fiscal Year 2006 -07
Adopted 100% Increase
Maintenance & Operations
Professional Services
Bud-get
FY2007 -08
Revenue
55,770
58,559
Investment Earnings
250,000
250,000
Sewer Permits
10,000
10,000
Charges for Services
50,000
50,000
Permits /Inspection Fees
50,000
50,000
New Trash Container Fees
-
-
From. Other Agencies
10,000
10,000
Other Charges for Services
150,000
200,000
Spec Assessment Charges
2,505,071
5,081,644
Contributions
-
_
Other Reimbursements
1,000
1,000
Other Financing Sources
-
-
Total Revenue
3,026,071
5,652,644
Expenditures
8,000
8,400
Salaries & Benefits
12,000
12,600
Regular Salaries
299,888
314,883
Part-Time Salaries
6,448
6,770
Board Salaries
49,572
52,051
Overtime
32,396
34,015
Special Pays
3,113
3,268
Jury Duty Leave
-
-
Medicare - Employer
6,515
6,841
FICA - Employer
3,073
3,227
PERS - Employer
47,478
49,852
PERS - Employee
21,661
22,745
Deferred Medical - RHS
2,999
3,149
Benefits Admin Costs
-
-
Unemployment
-
-
Workers' Compensation
5,782
6,071
Total Salary & Benefits
512,351
537,969
Maintenance & Operations
Professional Services
33,400
35,070
District Manager
55,770
58,559
Legal Services
44,880
47,124
Fiscal Services
63,375
66,544
Engineering /Architectural Service
16,100
16,905
Plan Ck/Inspection- Inside
95,000
99,750
Plan Ck/Inspection- Outside
50,000
52,500
Medical /Employment Services
-
-
Contract Services
16,497
17,322
County Collection Fee
7,490
7,865
Sewer Contracts
1,800
1,890
Election Expense
25,000
26,250
Building Maintenance
81500
8,925
Equipment Maintenance
15,000
15,750
Office Supplies
8,000
8,400
Multimedia/Blueprint/Copies /Sub
12,000
12,600
Postage
12,300
12,915
Costa Mesa Sanitary District
Adopted Liquid Waste Budget
Fiscal Year 2006 -07
Adopted
100% Increase
Budget
FY2007 -08
Public Info /Ed /Community Promo
11,500
12,075
Small Tools /Equipment
700
735
Materials & Supplies
-
-
Prof Membership /Dues
32,371
33,990
Staff Development
7,291
7,656
Travel /Meals /Lodging
19,200
20,160
Mileage Reimbursement
200
210
Liability Insurance
55,000
57,750
Telephone
5,000
5,250
Cellular Service
9,000
9,450
Gas - Building
500
525
Water - Building
1,500
1,575
Electric - Building
7,000
7,350
Water - Pump
950
998
Electric - Pump
79,000
82,950
Non - Operating Expense
25,000
30,000
Total Maintenance & Operations
719,324
759,041
Special Programs
Sewer Maint
932,692
979,326
Other Financing Uses
Contingency
50,000
150,000
CIP
800,000
3,200,000
Total Special Programs
1,782,692
4,329,326
Total Expenditures
3,014,367
5,626,335
Excess (Deficiency) of Revenues
Over Expenditures
11,704
26,309
COSTA MESA SANITARY DISTRICT
Adopted Sewer Rate Calculation
Fiscal Year 2006 -2007
Single Family Residence
Multi- Family Residence
Commercial (no FSEs)
Commercial (Cold Food FSEs)
Commercial (Hot Food FSEs)
Industrial
Other
FY 06 -07
Adopted
Rate
37.64
28.99
21.90
/1000 sq ft.
21.90
A 000 sq ft.
21.90
/1000 sq ft.
64.51
/1000 sq ft.
19.40
/1000 sq ft.
Proposed
Sewer
Rates
75.28
57.98
43.80 /1000 sq ft.
43.80 /1000 sq ft.
43.80 /1000 sq ft.
129.02 /1000 sq ft.
38.80 /1000 sq ft.
Maintenance & Operations
Professional Services
33,400
35,070
36,824
38,665
District Manager
Costa Mesa Sanitary District
58,559
61,486
64,561
Adopted Liquid Waste Budget
44,880
47,124
49,480
Fiscal Year 2006 -07
Fiscal Services
63,375
66,544
06 -07
20% Increase
20% Increase
20% Increase
16,905
Adopted
FY2007 -08
FY2008 -09
FY2009 -10
Revenue
104,738
109,974
Plan Ck/Inspection- Outside
50,000
Investment Earnings
250,000
250,000
250,000
250,000
Sewer Permits
10,000
10,000
10,000
10,000
Charges for Services
50,000
50,000
50,000
50,000
Permits /Inspection Fees
50,000
50,000
50,000
50,000
New Trash Container Fees
-
-
Election Expense
-
From Other Agencies
10,000
10,000
10,000
101000
Other Charges for Services
150,000
150,000
150,000
150,000
Spec Assessment Charges
2,505,071
3,006,085
3,607,302
4,328,762
Contributions
Other Reimbursements
1,000
1,000
-1,000
1,000
Other Financing Sources
-
-
-
Total Revenue
3,026,071
3,527,085
4,128,302
4,849,762
Expenditures
Salaries & Benefits
Regular Salaries
299,888
314,883
330,627
347,158
Part -Time Salaries
6,448
6,770
7,109
7,464
Board Salaries
49,572
52,051
54,653
57,386
'Overtime
32,396
34,015
35,716
37,502
Special.Pays
3,113
3,268
3,432
3,603
Jury Duty Leave
-
-
_
Medicare - Employer
6,515
6,841
7,183
7,542
FICA - Employer
3,073
3,227
.3,388
3,558
PERS - Employer
47,478
49,852
52,344
54,961
PERS - Employee
21,661
22,745
23;882
25,076
Deferred Medical - RHS
2,999
3,149
3,306
3,472
Benefits Admin Costs
-
-
_
-
Unemployment
-
-
_
-
Workers' Compensation
5,782
6,071
6,375
6,693
Total Salary & Benefits
512,351
537,969
564,867
593,110
Maintenance & Operations
Professional Services
33,400
35,070
36,824
38,665
District Manager
55,770
58,559
61,486
64,561
Legal Services
44,880
47,124
49,480
51,954
Fiscal Services
63,375
66,544
69,871
73,364
Engineering /Architectural Service
16,100
16,905
17,750
18,638
Plan Ck/Inspection- Inside
95,000
99,750
104,738
109,974
Plan Ck/Inspection- Outside
50,000
52,500
55,125
57,881
Medical /Employment Services
-
-
-
-
Contract Services
16,497
17,322
18,188
19,097
County Collection Fee
7,490
7,865
8,258
8,671
Sewer Contracts
1,800
1,890
1,985
2,084
Election Expense
25,000
26,250
27,563
28,941
r
Building Maintenance
8,500
8,925
9,371
9,840
Equipment Maintenance
15,000
15,750
16,538
17,364
Office Supplies
8,000
8,400
8,820
9,261
Multimedia /Blueprint/Copies /Sub
12,000
12,600
13,230
13,892
Postage
12,300
12,915
13,561
14,239
Public Info /Ed /Community.Promo
11,500
12,075
12,679
13,313
Small Tools /Equipment
700,
735
772
810
Materials & Supplies
-
-
-
-
Prof Membership /Dues
32,371
33,990
35,689
37,474
Staff Development
7,291
7,656
8,038
8,440
Travel /Meals /Lodging
19,200
20,160.
21,168
22,226
Mileage Reimbursement
200
210
221
1 232
Liability Insurance
55,000
57,750
60,638
63,669
Telephone
5,000
5,250
5,513
5,788
Cellular Service
9,000
9,450
9,923
10,419
Gas - Building
500
525
551
579
Water - Building
1,500
1,575
1,654
1,736
Electric - Building
7,000
7,350
7,718
8,103
Water - Pump
950
998
1,047
1,100
Electric - Pump
79,000
82,950
87,098
91,452
Non - Operating Expense
25,000
30;000
30,000
50,000
Total Maintenance & Operations
719,324
759,041
795,493
853,767
Special Programs
Sewer Maint
932,692
979,326
1,028,292
1,079,707
.Other Financing Uses
Contingency
50,000
50,000
50,000
50,000
CIP
800,000
1,200,000
1,690;000
2,200,000
Total Special Programs
1,7821-692
212290326
2,768,292
3,329,707
Total Expenditures
3,014,367
3,526,335
4,128,652
4,776,584
Excess (Deficiency) of Revenues
Over Expenditures
11,704
750
(350)
73,178