Presentations

On Achieving the Mission:
Values and Organizational
Improvements to Strengthen
Our Ability to Serve
Legislative/Human Resources Committee
September 8, 2015
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
7. Family Environment
2. Benefits
8. Flexible Work
Schedules
3. Job Security
4. Competitive Salary
5. Training & Career
Development
6. Advancement
Opportunities
9. Environmental
Stewardship
10. Customer Focus
11. Union Participation
12. Safety
2
Perceived Challenges
1. Leadership Disconnect
7. Leadership Risk Averse
2. Upward
Communication
8. Silos
3. Engineers: Highest
Status
9. Hierarchy/Politics
4. Contractor Conflict
10.Technology Insufficient
5. Favoritism
11.Workloads/Bureaucracy
6. Poor Performers
12.Rapid Retirement/Loss
of Essential Knowledge
3
The Values Team
 Cynthia Adkisson
 Rachel Garza
 Elizabeth Bialek
 Elizabeth Grassetti
 Maura Bonnarens
 Douglas Hooper
 Marc Carradine
 Tracie King
 Greg Chan
 Han Liu
 Jeanne Chase
 Scott Martin
 Rischa Cole
 Heidi Oriol
 Catherine Daley Humphrey
 Margo Schueler
 Dick Evans
 Mario Soares
 Cheryl Fox
 Jenny Tam
 Steve Frew
 Navneet Virk
Executive Sponsors: Sherri Hong, Richard Sykes
Project Manager: Derry Moten
4
Organizational Improvement
Team
 Winnie Anderson
 Jamie MacDonald
 Dawn Benson
 Antonio Martinez
 Carrie Butler
 Dave Mercado
 Dave Carlson
 Ed Ostrowski
 Carlton Chan
 Lo Saetern
 Dave Correa
 Jose Setka
 Kathy Fagan
 Sophia Skoda
 Nalani Heath-Delaney
 Bruce Stewart
 Isaiah Hinton
 Tara Sweet
 Gerald Hunter
 Doug Wallace
 Priya Jain
 Michelle Workman
 Ron Lastimosa
Executive Sponsors: Xavier Irias, Eric Sandler, Eileen White
Project Manager: Derry Moten
5
New District Core Values
 Stewardship
I am a steward of our
resources and committed
to public service.
 Integrity
I act with integrity.
 Respect
I treat others with respect.
 Teamwork
We are
one team.
and we are
6
Imagine:
7
EBMUD Organizational Improvement
Team Presentation
Actionable
Recommendations
Actionable
Recommendations
12 Issues
6 Strategies
Actionable
Recommendations
Actionable
Recommendations
6 Improvement Strategies
Manage Poor
Performance at
All Levels
Generate and
Implement New
Ideas
Strengthen
Communication
in All Directions
Actively
Promote
Teamwork
Create Clear
Strategic
Direction and
Shared Goals
Retain Essential
Knowledge
9
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 crossfunctional, multi-level teams
to lead the implementation
plans, and
3. Integration of the
Organizational
Improvements into work
projects and processes.
11
Questions?
12
Chabot 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 OR
show 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
100
Carpenter Wages and Benefits in $/hour
90
Non-union contractor also must
continue to pay company benefits to
keep its non -union employees
80
70
60
50
Company
Benefits
xx
Cash or
Company
Benefits
27.72
Union
Trust
Fund
27.98
Union
Trust
Fund
27.98
Union
Trust
Fund
27.98
Wages
40.35
Wages
40.35
Wages
40.35
Wages
40.35
Prevailing Wage
Non-union w/o PLA
Prevailing Wage
Union w/o PLA
Union w/PLA
Non-union w/PLA
40
30
20
10
0
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
December 8,
2015
Construction Contract Advertise for Bids
Construction Contract Award
February 9,
2016