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Home My WebLink About05/03/2011, B 4 - UTILITIES DEPARTMENT STRATEGIC LONG-RANGE PLAN i councit M"`�°� Ma 3 2011 agenda nepont CITY O F SAN LUIS O B I S P O FROM: Carrie Mattingly, Utilities Director .SUBJECT: UTILITIES DEPARTMENT STRATEGIC LONG-RANGE PLAN RECOMMENDATION Receive and file. DISCUSSION Background Fueled by a transition in departmental leadership and a desire to identify a future vision and strategic direction that allows for continuity during leadership changes, the Utilities Department embarked on a strategic long-range planning process in April 2010. Three consulting firms were interviewed and Ideas for Action, LLC was selected to provide this service for the City. Planning Process The first step in the planning process was to ensure staff fully understood the concept of strategic long-range planning as well as the process that would be used to develop the plan. The department's management team met with the consultant and participated in the design of the strategic planning meeting involving the department's stakeholders. Outreach to engage stakeholders and gather relevant data included correspondence, four web surveys, E-vites, phone calls, advance distribution of planning session materials, and face to face meetings. On May 19, 2010, a total of 80 people, including community members, business owners, City Council members, school district representatives, consultants, department heads, and city staff from all departments, including Utilities, actively participated in the half-day strategic planning session. The data gathered from these efforts directly influenced the final strategic long-range plan. Future Focus The strategic long-range plan identifies a future vision and strategic direction for the Utilities Department with planning horizons stretching from one to 30 years. It is a big picture document, not an annual work program. The approach taken with the plan is vision-oriented as demonstrated by Figure 1, excerpted from Ideas for Action, LLC planning session participant materials. B44 Utilities Department Strategic Long-Range Plan Page 2 Figure I A Planning Comparison—What is Vision-Oriented Strategic Planning? Traditional Planning Vision-Oriented Planning Directional End-state oriented Linear Holistic view/ a snapshot Reaction to trends and current forces Anticipation of future trends and forces —desire to shape the world - Work forward to the future Work backward from the future Have to know how to get there Not always clear how to get there Finished plan Dynamically fluid Planning Language Visioning Language ■ cool ■ spirited ■ rational ■ motivating ■ MBO-task oriented ■ success-oriented Secret Public ■ interactive ■ inclusive The plan will be re-evaluated on an annual basis and integrated into the department's operational philosophy. Prior to developing work programs for the upcoming year, the entire department will participate in evaluating what progress has been made on its goals through the use of metrics, assessing the current environment and making changes to those assumptions as needed, and examining whether or not the vision for the department is still right. This will ensure the plan becomes part of the departmental fabric. While the strategic plan's focus is on the Utilities Department, developing it with such a broad stakeholder group added value and alternative perspectives to the final result. The process was highly rewarding and the participation of all stakeholders is deeply appreciated by staff. Creating a vision of the future together achieves the desired outcomes of a high level of ownership in the plan, motivation to keep reaching for the goal, and commitment to model behavior that aligns with the department's core values. FISCAL IMPACT There is no fiscal impact associated with receiving and filing the Utilities Department Strategic Long-Range Plan. The cost for consultant services associated with developing the plan was $7,500. ATTACHMENTS Utilities Department Strategic Long-Range Plan-March 2011 G:\CAR Reports\2011 Council Agenda Reports\110503 Strategic Long-Range Plan.doc B4-2 Attachment I 'ClItTY- Or SAn:.hi lS01Spt Utilities Department City of Saxe Lexis Obispo nal Strategic Long-Range Plan March 2011 Ideas for Action, LLC serving associations,institutions, corporations,governments and communities Prepared By Jean S. Frankel—President Ideas for Action, L.L.C. 10638 Stonebridge Blvd. Boca Raton, FL 33498 (561) 883-0127 www.ideaforactionllc.com Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan March 2011— Page] B4-3 Attachment OVERVIEW The Utilities Department of the City of San Luis Obispo California has developed the following strategic long-range plan. It describes a desired vision and what will be essential to achieving that vision. It is grounded in core ideology and driven by an envisioned future that realizes the full potential of the Department's ability to serve its stakeholders. The Department's commitments are articulated in goals that declare the outcomes or attributes the organization intends to achieve. Objectives represent key metrics affecting the Department's ability to achieve the goal and articulate the direction in which these issues must be moved. Strategies describe how the Department plans to commit its limited resources to make its vision a reality. In the future, the Utilities Department of the City of San Luis Obispo must adapt to the myriad of differing needs of a constantly evolving community. Therefore,underlying this plan is the adoption of an ongoing process of planning and thinking strategically, designed to ensure relevance of direction and action over time. In developing this strategic plan, a framework for planning was utilized,based on a model that organizes conversations about the future into four distinct planning"horizons." Ideas for Action, LLC has found the use of this framework to be a powerful tool. It helps organizations in prioritizing and executing outcomes as well as in ensuring relevance of long-range direction over time. A Strategic and Operational Planning hlodel P]m'Ne Prue 1/oA.uu•3111'eon-IBl'nre•5\ien-31iun-I lour .rte •rBrNmetl 3GVe�, Pwm aelnYl MP.Pw Bl Jod �^d'Ve OBnuYmul Rv. :e.mmp.w Bbmh¢ pIo�IR l'.W t'nil >MU Th.IM1mw -- y . B�m � i'Lutwu�d WrrluulnoW Ob�rva \rpm "'.yC aw'c. Pmmn Suu! Pv"°r� � PlnnmvN �r/+.K'm MNl.uM Cjcb Ory.ulprluu-srmma.Smmrc.Prweudrrrarc Envisioned future. The"four planning horizons" framework consists of crafting a comprehensive strategic direction based on the balance between what doesn't change--the timeless principles of the organization's core purpose and core values (core ideology) -- and what the organization seeks to become within a 10-to 30-year horizon—what would be possible beyond the restraints of the current environment. The 10- to 30-year horizon is characterized by the articulation of an envisioned future--a BAG (big audacious goal)--and a vivid description--what it will be like to achieve the goal. Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan—March 2011 -- Page 2 B4-4 Attachment Critical factors. The articulation of the envisioned future guides the organization as it considers the factors that will affect its ability to achieve its goals. Building foresight about the 5-to 10=year horizon--assumptions, opportunities, and critical uncertainties in the likely relevant future as well as emerging strategic mega-issues—suggests critical choices about the potential barriers the organization will face. This foresight also suggests the responses the organization will need to consider in navigating its way toward achievement of its 10-to 30- year goal, or BAG. . Strategic plan and operational planning. The linkage continues into the 3-to 5-year horizon through the development of a formal long-range strategic plan, in which the organization articulates the outcomes it seeks to achieve for its stakeholders. How will the world be different as a result of what the organization does? Who will benefit and what will the likely results be? Further, the articulation of strategies will bring focus to the organization's annual operational allocation of discretionary resources. Action plans, checkpoints, and milestones will be developed through a process of operational planning, indicating progress toward each goal in every planning year. A strategic long-range plan is not intended as a substitute for an annual program or operating plan. It does not detail all the initiatives;programs, and activities the organization will undertake in the course of serving its stakeholders and the community,nor can it foresee changes to the underlying assumptions on which key strategic choices were based. Instead,the strategic plan identifies what the Utilities Department of the City of San Luis Obispo is not doing today, but must be doing in the future to be successful. Consequently, the strategic plan implies change--doing new things or doing more or less of current activities to ensure successful outcomes. Ongoing Reevaluation. Strategic planning for the Department should become the methodology for the organization's operations. If it is successful, this process will not have yielded a plan to be placed on the shelf, but will have served as a catalyst for the"process of planning strategically," at all times and at all levels throughout the organization. In order to achieve its vision, the Utilities Department of the City of San Luis Obispo must not look at strategic long-range planning as a one-time project that produces a milestone document of its best thinking at the moment. Instead, the Department must adopt strategic planning as an operational philosophy of ongoing reevaluation of the critical knowledge bases that form the framework of its world, including: Y Sensitivity to stakeholder and community needs; insight into the future environment • Understanding of the capacity and strategic position of the organization . • Effective analysis of the ethical implications of policy, program, and service choices. The Utilities Department of the City of San Luis Obispo's strategic long-range plan represents a compass the organization will use to guide its work over the next five years. Each year of its life,the plan will be updated based on experience or new circumstances or as new opportunities or challenges emerge. In 2015, the Utilities Department should author a new strategic long-range plan based upon the new environment expected to exist in a rapidly evolving world. Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan—March 2011— Page 3 B4-5 Attachment 10-30 YEAR PLANNING HORIZON CORE IDEOLOGY & ENVISIONED FUTURE Core ideology describes an organization's consistent identity that transcends all changes related to its relevant environment. Core ideology consists of two notions: core purpose— the organization's reason for being—and core values—essential and enduring principles that guide an organization. CORE IDEOLOGY Core Purpose: To provide essential services that support the community's health, well-being, and quality of life. Core Values: • Team—We work collaboratively to meet challenges. • Pride—We serve'our community with passion, professionalism, and purpose. • Trust—We are accountable to the public and one another. • Integrity—We have a relentless service ethic with a focus beyond reliable service. • Ethics—We are efficient stewards of the community's resources and environment. • Vision—We are forward thinking; meeting the community's needs today and into the future; we recognize that change is constant and we choose to embrace it. ENVISIONED FUTURE Envisioned future conveys a concrete, but yet unrealized, vision for the organization. It consists of a big audacious goal—a clear and compelling catalyst that serves as a focal point for effort—and a vivid description—vibrant and engaging descriptions of what it will be like to achieve the big audacious goal. Big Audacious Goal: To be a valued partner in ensuring the public health and safety of our community. Vivid Description: • San Luis Obispo will be recognized as the premier city in California for quality resource management, and the Utilities Department will be recognized by the community as the dignified and responsible provider of a life sustaining resource, and as recognized leaders in environmental and fiscal stewardship. There will be high levels of consumer confidence, community engagement, public education, and participation. The public will be supportive of rates required to provide services. Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan—March 2011— Page 4 134- -6- Attachment • The Utilities Department will be staffed with the highest quality, fully-certified and licensed employees; we will frequently receive calls about our programs from other utility agencies; we will regularly receive praise from the Council and community about the services we provide; we will have no trouble meeting regulatory requirements because we have a collaborative, cooperative relationship with our community, stakeholders, regulators, and each other. • Our department will be defined by its culture of employee development and empowerment; there will be extensive training, succession planning, and commitment to productivity, safe, open communication, positive departmental culture, and employee empowerment. • We will encourage and embrace innovation and creativity to enhance our organization and meet all challenges successfully; allowing mistakes but not accepting mediocrity; encouraging creative thinking, asking questions, getting away from doing things the way we've always done them just because we've always done them that way. Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan—March 2011— Page 5 B4*7 Attachment S-1 O YEAR PLANNING HORIZON ASSUMPTIONS ABOUT THE RELEVANT FUTURE ^- Assumption statements will help an organization purposefully update its strategic plan on an annual basis. As the outcome-oriented goals that will form the basis of the long-range strategic plan will be based on the vision of the future that appears in this section, an annual review of these assumptions will be an appropriate method of determining and ensuring the ongoing relevance of the Department's strategy and goals. Demographics: 1. The community will continue to embrace water conservation and green practices which will impact water use and potentially impact wastewater services. 2. The community will continue the trend of very slow growth. 3. Community expectations for higher service levels will continue to rise. 4. Lack of expanded population/revenue base will impact our ability to provide quality service. 5. The cost of living in the City will result in more dense population(more people per house). 6. The overall population will decrease,no big `boom'in the foreseeable future; increases in retirees and homeless. Social. Cultural and Consumer values: 1. Consumers will be more demanding for detailed justification of rate increases. 2. The current workforce will continue to age with a loss of older; experienced workforce; workforce replacement will be a significant issue. 3. The future workforce will be more demanding; there will be increased demand for technology and quick responses. 4. Rates will increase, causing consumer disapproval. 5. Ongoing efforts with rate payers to improve transparency and keep them apprised of reasons for ongoing rate increases will result in acceptance of the new rates. 6. Social, cultural &consumer values will change; a framework of flexibility and adaptability will be developed by the department to address changes. 7. Education will be imperative-both internally and in the community. Through effective communication we will have a basis of understanding about decisions that are made. 8. Less than positive public perception of public employees will continue. Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan—March 2011— Page 6 4-g,`, Attachment Economic.Climate: 1. Material &operating costs will increase. 2. Economic climate will improve. 3. Development will stay stagnant for a while which will affect revenue. 4. CIP cuts due to budget constraints will occur causing reactive instead of proactive work. 5. Economic climate will pressure staff impacting productivity, causing stress and work/life balance challenges. 6. Public education will be required to show ratepayers the value 9f infrastructure and services provided. 7. Increased regulations will drive up costs to operate department 8. San Luis Obispo will continue to be a very desirable community in which to live and work. Legislative and Resnlatorv: i. Costs to ratepayers will increase with regulations as will fines and lawsuits. 2. New and more restrictive regulations will require additional studies, research, training, and documentation of work. 3. Legislative action will make it more difficult to raise rates to keep up with new regulations and infrastructure replacement needs. 4. Increased coordination with regional agencies and the public will be necessary to keep everyone apprised of new regulations. 5. Increased regulation will require expansion of existing facilities. 6. Regulations will focus on"green" issues and emerging constituents of concern. 7. Voter-led regulations will increase. 8. Dedicated grant writers will be required to seek out grant funding to help pay for cost of regulations. 9. New regulations will require more long-range planning. 10. Collaboration with regulatory agencies will require more time for research and training. 11. Advanced technology will result in stricter regulations and new equipment to meet those regulations. 12. Regulations will become more stringent requiring a higher dollar investment for compliance. 13. Regulatory requirements from EPA and the RWQCB will drive need for additional staffing to achieve compliance. 14. There will be increased energy regulations. The City will be required to do energy retrofitting on all its buildings. 15. Innovations in technology will allow greater efficiency. Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan—March 2011— Pagel B+vP Attachment 16. More communication, compromise, and cooperation among agencies will become essential. 17. Local, regional, state& federal, regulations will increase (greenhouse gas emissions, energy,water quality, etc.). 18. More education will be required to relay importance &relevance of new regulations. Nature of the Profession 1. Workers will be moving between water and wastewater. 2. The profession will require more automation. SCADA telemetry will be a major influence as to how the workforce is distributed; ability to work remotely will increase. 3. Work environment will change with social desire to go green. 4. How facilities are designed will be impacted due to need to reduce energy use and treat everything, including stormwater. 5. Technical requirements will increase and staff will need higher technical abilities. 6. The new employee will have to be mechanically and technically astute. 7. The `new soldier' in the workplace will have a broader focus and be a more evolved professional. 8. Expansion of base knowledge will be required for the workforce due to cross-training. Science and TechnoloEv 1. Technology will improve and regulations will increase thereby driving increased technology in a continuous improvement cycle. 2. Operational sophistication will increase. 3. Energy sources will vary. 4. Meter reading technology will increase information on water usage patterns and drive consumer habits. 5. Operational skill, regulations, and certification requirements will increase to meet the needs of new technology 6. New technology will help reduce overall operational costs. 7. Security and technology to protect water supplies will increase. 8. A movement towards greener energy production will push change toward alternative energy sources. 9. Increased costs due to combining sewage and stormwater treatment will occur. 10. The increased costs to treat pharmaceuticals and pesticides will cause us to find other sources and solutions to problems that these chemicals cause 11. Cultural rethinking and market pressures will demand change to how we do business. Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan—March 2011— Page 8 'B4.401-, Attachment 3-5 YEAR PLANNING HORIZON ^ OUTCOME-ORIENTED GOALS — Goals are outcome-oriented statements that represent what will constitute the Department's future success. The achievement of each goal will move the organization towards the realization of its vision. The goals are not in any order of priority. Every goal will.need to be accomplished if the organization is to.fully achieve its vision. On the next pages, each goal is accompanied by a set of objectives, which represent key issues affecting the Utilities Department's ability to achieve the goal and articulate milestones against which to measure progress. Objectives which have been bolded and underlined have been identified as priorities for the coming year. GOAL 1 -IMAGE Our customers will have a better understanding of the Utilities Department's role, and will value the services that we provide to the community. GOAL 2—INFRASTRUCTURE The Department will have a clear understanding of its long-range infrastructure requirements and a plan to address them. GOAL 3—REGULATORY The Department will be an active and valued participant in the regulatory process by collaborating with regulatory agencies and other stakeholders and assisting in the formulation of new policies, legislation and permit standards. GOAL4—STEWARDSHIP The Department will be recognized by regulators, the public, and all stakeholders as an effective steward of natural and fiscal resources. GOAL 5—ORGANIZATIONAL DEVELOPMENT The Utilities Department will have organizational systems, structures, processes, and a culture that support a positive work environment, employee empowerment, and excellence in performance and service delivery. Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan—March 2011— Page 9 B4-11 Attachment GoAL 1: IMAGE Goal: Our customers will have a better understanding of the Utilities Department's role, and will value the services that we provide to the community. Obi ectives: 1. Increase customer understanding of our departmental programs and services that provide long term benefits to the community. 2. Increase customer understanding of the utility rate. 3. Increase consumer confidence in our services. 4. Expand our community engagement and public education activities. 5. Increase our citywide collaboration with other departments. Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan—March 2011— Page 10 B4-12 Attachment GOAL Z: INFRASTRUCTURE Goal: The Department will have a clear understanding of its long-range infrastructure requirements and a plan to address them. Ob ectives 1. Develop a comprehensive long-range plan based on the City's infrastructure investment priorities. 2. Increase planning efforts that identify and address infrastructure improvements considering impacts to economic, environmental, and long term factors. (E.g. inflow & infiltration; Capital Project planning; Master Planning for water, wastewater, water recycling; energy efficiency). 3. Decrease service interruptions. 4. Decrease the overall age of our infrastructure. 5. Maintain fiscal reserves required to support infrastructure improvement. Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan—March 2011— Page 11 B4-13 Attachment GOAL 3: REGULATORY Goal: The Department will be an active and valued participant in the regulatory process by collaborating with regulatory agencies and other stakeholders and assisting in the formulation of new policies, legislation, and permit standards. Obiectives: 1. Maintain compliance with all State and Federal regulation. 2. Increase participation on committees. 3. Increase input to regulatory agencies for use in development of regulations. Utilities Department of the City of San Luis Obispo Strategic Long-Range Plan—March 2011— Page 12 -B4-14 Attachment GOAL 4: STEWARDSHIP Goal: The Department will be recognized by regulators, the public, and all stakeholders as an effective steward of natural and fiscal resources. Objectives: 1. Expand the identification and implementation of practices that increase the conservation of all natural resources. 2. Increase awareness of the availability of recycled water and expand recycled water use. 3. Expand energy efficiency/green practices. 4. Increase awareness of the responsible use of fiscal resources entrusted to the department. Utilities Department of the City of San Luis Obispo Strategic Lang-Range Plan—March 1011— Page 13 B4-15 Attachment GOAL 5: ORGANIZATIONAL DEVELOPMENT Goal: The Utilities Department will have organizational systems, structures, processes, and a culture that support a positive work environment, employee empowerment, and excellence in performance and service delivery. Obi ectives 1. Increase available professional development activities. 2. Expand participation in educational opportunities. 3. Expand cross training opportunities and participation. 4.. Increase levels of staff certification and encourage certification as a career enhancer. 5. Increase staff participation on city-wide/industry wide committees. 6. Expand participation in the education reimbursement program. 7. Increase promotional opportunities from within. 8. Increase time spent job shadowing.. 9. Improve staff satisfaction levels. 10.Improve inter- and intra-departmental communication. 11.Improve the Department's readiness for change through the development and implementation of a comprehensive succession planning process. Utilities Department of the City of San Luis Obispo Strategic Long-Range-Plan—March 2011— Page 14 - B446