Values and Organizational Improvements to Strengthen

Our Ability to Serve

Legislative/Human Resources Committee September 8, 2015

On Achieving the Mission:

Overview

Recap

SMT decision to involve the employee base in the identification of values

Employee focus groups, interviewing approximately 10% of District staff

Results identified:12 strengths and 12 areas of challenge

1

Perceived Strengths

1. Great Place to Work

2. Benefits

3. Job Security

4. Competitive Salary

5. Training & Career Development

6. Advancement Opportunities

7. Family Environment

8. Flexible Work Schedules

9. Environmental Stewardship

10.Customer Focus

11.Union Participation

12.Safety

2

Perceived Challenges

1. Leadership Disconnect

2. Upward Communication

3. Engineers: Highest Status

4. Contractor Conflict

5. Favoritism

6. Poor Performers

7. Leadership Risk Averse

8. Silos

9. Hierarchy/Politics

10.Technology Insufficient

11.Workloads/Bureaucracy

12.Rapid Retirement/Loss of Essential Knowledge

3

The Values Team

4

Rachel Garza

Elizabeth Grassetti

Douglas Hooper

Tracie King

Han Liu

Scott Martin

Heidi Oriol

Margo Schueler

Mario Soares

Jenny Tam

Navneet Virk

Executive Sponsors: Sherri Hong, Richard Sykes

Project Manager: Derry Moten

Cynthia Adkisson

Elizabeth Bialek

Maura Bonnarens

Marc Carradine

Greg Chan

Jeanne Chase

Rischa Cole

Catherine Daley Humphrey

Dick Evans

Cheryl Fox

Steve Frew

Organizational Improvement Team

5

Jamie MacDonald

Antonio Martinez

Dave Mercado

Ed Ostrowski

Lo Saetern

Jose Setka

Sophia Skoda

Bruce Stewart

Tara Sweet

Doug Wallace

Michelle Workman

Executive Sponsors: Xavier Irias, Eric Sandler, Eileen White Project Manager: Derry Moten

Winnie Anderson

Dawn Benson

Carrie Butler

Dave Carlson

Carlton Chan

Dave Correa

Kathy Fagan

Nalani Heath-Delaney

Isaiah Hinton

Gerald Hunter

Priya Jain

Ron Lastimosa

New District Core Values

Stewardship

Integrity

Respect

Teamwork

6

I am a steward of our resources and committed to public service. I act with integrity. I treat others with respect. We are and we are one team.

Imagine:

7

EBMUD Organizational Improvement Team Presentation

12 Issues 6 Strategies

Actionable Recommendations

Actionable Recommendations

Actionable Recommendations

Actionable Recommendations

6 Improvement Strategies

9

Create Clear Strategic

Direction and Shared Goals

Actively Promote

Teamwork

Strengthen Communication in All Directions

Generate and Implement New

Ideas

Manage Poor Performance at

All Levels

Retain Essential Knowledge

Implementation Plan Steps

Prepare

Kickoff and Educate

Embed and Integrate

Sustain

Form Implementation Teams – Publicize, create the buzz

– Dialog with union leadership, other leaders and champions

Introduce the new values and organizational improvements and define their purpose – Joint effort to publicize adoption; establish expectations,

generate excitement

– Involve everyone, train everyone

Create habits – Personalize at the local level (divisions and work teams)

– Acknowledge existing employees demonstrating the values, behaviors, and practices

The Values are woven into the culture of the District – Become first nature to everyone

– Evaluate our progress and adapt as necessary

10

Next Steps:

1. Evaluation of options for internal and external support of the implementation plan,

2. Creation of additional cross-functional, multi-level teams to lead the implementation plans, and

3. Integration of the Organizational Improvements into work projects and processes.

11

12

Questions?

Chabot Dam Seismic Upgrade Pilot Project Labor AgreementChabot Dam Seismic Upgrade Pilot Project Labor Agreement

Legislative/Human Resources Committee

September 8, 2015

Background

• PLA development authorized in February 2014

• Principles approved in December 2014

• Stakeholder meetings held in February 2015

• PLA negotiations began in May 2015

• Design currently in progress

• Advertise for construction in December 2015 (~$12m)

Purpose and Minimum Requirements of PLA

• Project-specific agreement negotiated between an owner and an area trades council

• Advance economical and efficient completion of a construction project

• Provide equal access to all contractors to compete for contracts on the project

• Prevent strikes, slowdowns and other work stoppages

• Ensure a steady and reliable source of skilled labor for the project

Pilot PLA Concept

• PLA pilot is one-time and specific to the Chabot Dam Seismic Upgrade project

• Goal is to gain experience with how PLA could work for the District– Assess cost to negotiate and administer PLA

– Obtain contractor feedback and assess impact on project costs and implementation

Pilot PLA Draft Principles

• Board approved principles to guide District’s negotiation of the PLA on December 9, 2014.

• Twelve principles– Key drivers and minimum requirements

– Legal and regulatory considerations

• Local hiring not one of the adopted principles for the PLA but is a related area of interest

Recent Actions and Status

• Transmitted draft PLA to Alameda County Building Trades Council (ACBTC) on May 5, 2015

• Held three negotiation meetings with ACBTC from May to August 2015

• Negotiations appear to be at a stalemate. Far apart on at least three major issues – Incorporation of local/targeted hiring

– Equitable participation for all contractors (Principle #8) – “Double Benefit Payments”

– Efficient and effective performance of the work (Principle #9) – “Core Workers”

Local/Targeted Hiring Approach

• ACBTC does not have its own local/targeted hiring program

• Local/targeted hiring requirements must be driven by the District

• District has legal hurdles to address in implementing a local/targeted hiring program

• On July 9, 2015, the Board approved a pilot program independent of the pilot PLA

• Draft PLA includes language to protect implementation of the program

Local/Targeted Hiring - ACBTC Position

• Local/targeted hiring programs are most effective when they are included as part of a PLA or adopted simultaneously as part of a comprehensive package

• Local/targeted hiring program must be an integral part of the PLA negotiations

• ACBTC will not agree to a PLA that simply references an independent local/targeted hiring program

Equitable Participation

• District’s draft PLA language and impact is consistent with Principle #8– The PLA shall contain provisions which permit all

qualified construction contractors to bid and be awarded work pursuant to the applicable procurement laws, and shall not require such contractors to be signatory to, or to become signatory to, any other agreement but the Project Labor Agreement for purposes of wages, benefits, hours and working conditions on the Project

Equitable Participation

District’s draft PLA language:

• Requires all contractors to provide wages and benefits to employees at least equivalent to those in applicable MLAs

• Requires all contractors to comply with prevailing wage laws

• Requires non-union contractors to pay employee benefits into union trust fund ORshow that they provide equal monetary contributions to independent benefits programs for each employee

Equitable Participation – ACBTC Position

• All contractors must pay employee benefits into the union trust fund whether union or non-union

• ACBTC believes non-union contractors with benefits plans can suspend their regular employee benefit payments in order to pay into the union trust fund

• ACBTC will not agree to a PLA that does not require payment of employee benefits by all contractors into the union trust fund

Illustrating “Double Benefits” under ACBTC Proposal

Wages40.35

Wages40.35

UnionTrustFund

27.98

Cash orCompanyBenefits27.72

0

10

20

30

40

50

60

70

80

90

100

Prevailing WageNon-union w/o PLA

Prevailing WageUnion w/o PLA

-

-

Carpenter Wages and Benefits in $/hour

Wages40.35

Wages40.35

UnionTrustFund

27.98

Union

Fund27.98

CompanyBenefits

xx

Union w/PLA Non-union w/PLA

Non union contractor also must continue to pay company benefits to keep its non union employees

Trust

Equitable Participation -Contractor Survey Results

• Eleven contractors surveyed– Three union signatory with four or more trades

– Five union signatory with three or fewer trades

– Three non-union

• All eleven indicate that PLA increases bid price

• Seven indicate that PLA is a disincentive to bid

• All eleven indicate that requiring benefit payments to union trust fund under a PLA adversely impacts non-union contractors and limits competition

Efficient and Effective Performance of Work

• Draft PLA language and impact is consistent with Principle #9– The PLA shall contain provisions permitting

contractors that have an identifiable, regularly employed work force, to employ directly some of such work force, as will permit the contractor to effectively carry out the work for which he or she is committed

• Draft PLA language and impact is also consistent with Principle #8

Efficient and Effective Performance of Work

District’s draft PLA language:

• Allows non-union contractors to use six members of their core workforce before being required to hire from the union hall

• Provides qualification requirements for members of the core workforce

Efficient and Effective Performance of Work – ACBTC Position

• Contractors not allowed to employ any of their core workforce

• Contractors must take referrals from union out-of-work hiring hall

• Position subject to change if negotiations continue

Why Six Core Workers?

• Specialty CDSM work requires four workers per shift, two shifts per day

• Contractors would desire three core workers per shift for a total of six

• City of Santa Barbara PLA allows up to six core workers.

Next Steps and Required Schedule

Action Date

Negotiation of PLA and Periodic Board Updates

May – October 2015

Board Consideration of PLA for Approval November 10, 2015

Construction Contract Advertise for Bids December 8, 2015

Construction Contract Award February 9, 2016