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HomeMy WebLinkAbout2013-12-19 - Board of Directors Meeting Agenda PacketYorba Linda '"Water District AGENDA YORBA LINDA WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING Thursday, December 19, 2013, 2:00 PM 1717 E Miraloma Ave, Placentia CA 92870 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Gary T. Melton, President Robert R. Kiley, Vice President Michael J. Beverage Ric Collett Phil Hawkins 4. PUBLIC COMMENTS Any individual wishing to address the Board is requested to identify themselves and state the matter on which they wish to comment. If the matter is on the agenda, the Board will recognize the individual for their comment when the item is considered. No action will be taken on matters not listed on the agenda. Comments are limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to five minutes. 5. DISCUSSION ITEMS This portion of the agenda is for matters that cannot reasonably be expected to be concluded by action of the Board of Directors at the meeting, such as technical presentations, drafts of proposed policies, or similar items for which staff is seeking the advice and counsel of the Board of Directors. Time permitting, it is generally in the District's interest to discuss these more complex matters at one meeting and consider formal action at another meeting. This portion of the agenda may also include items for information only. 5.1. Report from YLWD Citizens Advisory Committee Regarding Draft of Organizational Performance Review - Provided by Chair, Daniel Mole 5.2. Final Draft of Organizational Performance Review 5.3. Additional Proposals Requested from Koff & Associates 6. ADJOURNMENT 6.1. The next Regular Board of Directors Meeting will be held Monday, December 23, 2013 at 8:30 a.m. Items Distributed to the Board Less Than 72 Hours Prior to the Meeting Pursuant to Government Code section 54957.5, non - exempt public records that relate to open session agenda items and are distributed to a majority of the Board less than seventy -two (72) hours prior to the meeting will be available for public inspection in the lobby of the District's business office located at 1717 E. Miraloma Avenue, Placentia, CA 92870, during regular business hours. When practical, these public records will also be made available on the District's internet website accessible at http: / /www.ylwd.com /. Accommodations for the Disabled Any person may make a request for a disability - related modification or accommodation needed for that person to be able to participate in the public meeting by telephoning the Executive Secretary at 714 - 701 -3020, or writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885 -0309. Requests must specify the nature of the disability and the type of accommodation requested. A telephone number or other contact information should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability - related accommodation should make the request with adequate time before the meeting for the District to provide the requested accommodation. Meeting Date Subject: ATTACHMENTS: AGENDA REPORT December 19, 2013 Final Draft of Organizational Performance Review ITEM NO. 5.2 Name: Description: Type: BOD - Agenda Attachment.doc Backup Material Backup Material PLEASE CONTACT YLWD RECORDS DIVISION FOR THIS ATTACHMENT (714) 701-3101 records@ylwd.com Meeting Date Subject: ATTACHMENTS: AGENDA REPORT December 19, 2013 Additional Proposals Requested from Koff & Associates YLWD Class Proposal 12 10 13.pdf YLWD HR Policies Proposal 12 11 13.pdf YLWD Succession Planning Proposal 12 11 13.0 ITEM NO. 5.3 Description: Type: Backup Material Distributed Less Than 72 Hours Prior to Backup Material the Meeting Backup Material Distributed Less Than 72 Hours Prior to Backup Material the Meeting Backup Material Distributed Less Than 72 Hours Prior to Backup Material the Meeting K� E Classification Study Proposal Yorba Linda Water District Koff & Associates Georg Krz: Chief Executive Officer 6400 Hollis Street, Suite 5 Emeryville, CA 94608 www.koffassociates.com E: gkrammer @koffassociates.com P: 510.658.5633 T: 800.514.5195 F: 510.652.5633 Backup Material Distributed Less Than 72 Hours Prior to the Meeting KI December 11, 2013 Board of Directors Yorba Linda Water District 1717 E. Miraloma Avenue Placentia, CA 92870 Dear Members of the Board of Directors: Classification Study Proposal Yorba Linda Water District Thank you for the opportunity to respond to your request for proposal for a Classification Study for the Yorba Linda Water District. We are most interested in assisting the District with this important project. As you know, Koff & Associates is an experienced Human Resources consulting firm that has been conducting similar studies for cities, counties, special districts, educational institutions, courts, and other public agencies for almost thirty years. The firm is a woman -owned California small business corporation and has achieved a reputation for working successfully with management, employees, and union representatives. We believe in a high level of dialogue and input from study stakeholders and our proposal speaks to that level of effort. That extra effort has resulted in close to 100% implementation of all of our organization and classification studies. Koff & Associates is a small firm that accepts only as much work as our own staff can handle. This ensures a high level of quality control, excellent communication between clients and our office, commitment to meeting timelines and budgets, and a consistent high - caliber work product. As Chief Executive Officer, I would assume the role of Project Director and be responsible for the successful completion of this project. I can be reached at the Emeryville address and phone number listed below. My email address is gkrammer(c)-koffassociates.com. Please call if you have any questions or wish additional information. We look forward to the opportunity to continue providing professional services to the Yorba Linda Water District. Sincerely, Georg S. Krammer Chief Executive Officer 6400 Hollis Street, Suite 5 Emeryville, CA 94608 510.658. KOFF (5633) Koff & Associates Backup Material Distributed Less Than 72 Hours Prior to the Meeting KI Table of Contents Classification Study Proposal Yorba Linda Water District Understanding of the Project 1 Approach and Methodology of Services Provided 3 Project Completion Schedule 7 Fee Structure 8 Signature Page 9 Koff & Associates Backup Material Distributed Less Than 72 Hours Prior to the Meeting �t 6 1�, tip ��•� �N -. UNDERSTANDING OF THE PROJECT Classification Study Proposal Yorba Linda Water District The Yorba Linda Water District desires human resources consulting assistance to conduct an objective job evaluation and classification review for all of its miscellaneous job classifications, except department directors, in order to make recommendations regarding the appropriateness, internal equity, and effectiveness of the District's classification plan. Included in the study are eighty (80) employees allocated to approximately fifty -eight (58) classifications, including several class series. Our approach and philosophy towards classification studies is to develop an updated and well - structured classification system and classification descriptions for all study positions that are legally compliant (including Fair Labor Standards Act (FLSA) and Americans with Disabilities Act (ADA) requirements), internally aligned, reflective of contemporary standards, and accurately reflect current roles, responsibilities, duties, and qualifications. The classification analysis process includes orientation and briefing sessions with employees, District management staff, Human Resources, and other stakeholders, as appropriate; the completion of a Position Description Questionnaire (PDQ) by employees (this already occurred during the organizational study we recently completed for the District); interviews with employees in each study classification (this was mostly accomplished during the organizational study and we may only need to interview a few employees if their job duties have shifted since PDQs were completed); and interviews with supervisors and management to address any classification issues. All participating employees will be allocated to an appropriate classification and draft classification descriptions will be developed and sent back to the District and incumbents for additional feedback and concurrence. The study includes a significant number of meetings with the study project team, management, Human Resources, staff, and the Board of Directors, as desired. We have expertise in labor /management relations and understand the importance of active participation by all stakeholders to ensure a successful outcome. The meetings and "stakeholder touch - points" that we recommend ensure understanding of the project parameters, enhance accurate intake and output of information, and improve a collaborative and interactive approach that will result in greater buy -in for the study recommendations. This interactive approach, although time - consuming, has resulted in almost 100% implementation success of Koff & Associates' studies. Project Objectives: The general scope of work and objectives of the project are: Classification Objectives ➢ To analyze and update the District's classifications and each study position's classification description and structure through a comprehensive process of job analysis and evaluation, including review of existing documentation, Position Description Questionnaires, employee interviews, management interviews, analysis of existing positions and working situations, analysis of levels of duties and responsibilities, and other professional methods, as appropriate; Koff & Associates Backup Material Distributed Less Than 72 Hours Prior to the Meeting Classification Study Proposal Yorba Linda Water District ➢ To recommend each study position for title change or reclassification (as appropriate), create new classifications (if applicable), eliminate outdated classifications (if applicable), and consolidate classifications assigned to similar functional areas (as appropriate); ➢ To provide for growth and flexibility of assignment within the new classification structure, where feasible, in recognition that some job duties and responsibilities may evolve over time, as well as adequate career paths and class series /job families that will foster career service within the District; ➢ To clearly state definitions of job classifications, the essential and non - essential duty statements, and minimum requirements and preferred requirements such as education, prior work experience, knowledge, skills, abilities, and physical requirements; ➢ To provide a classification structure that ensures regulatory compliance, including allocation of each selected study position to the correct classification with appropriate FLSA designation, as well as, meeting Federal ADA regulations; ➢ To provide for adequate educational, review, and appeal processes that will result in a product that is understood by all levels of personnel and is internally equitable; ➢ To ensure consistency with the concepts adopted in the District -wide Classification Plan; and ➢ To ensure sufficient documentation throughout the study, including classification concepts, distinguishing characteristics, and final reports and recommendations to guide the organization in implementing, managing and maintaining the classification system. Overall Objectives ➢ To review and understand all current documentation, rules, regulations, policies, procedures, budgets, class descriptions, organizational charts, personnel policies, memoranda of understanding, and related information so that our recommendations can be operationally incorporated with a minimum of disruption; ➢ To conduct start -up study meetings with the project team, District management, Human Resources, employees, and others, to discuss any specific concerns with respect to the development of a classification plan; finalize study plans and timetables; conduct employee orientation sessions with management and staff in order to educate and explain the scope of the study and describe what are and are not reasonable study expectations and goals; ➢ To work collaboratively and effectively with the District and its stakeholders while at the same time maintaining control and objectivity in the conduct of the study; ➢ To develop a classification structure that meets all legal requirements, is totally non- discriminatory, provides for compliance with all pertinent legal requirements, and easily accommodates organizational change and growth; ➢ To document all steps in the process and provide documentation for Human Resources in classification study methodologies so that the District can integrate, maintain, administer, and defend any recommended changes after the initial implementation; and ➢ To provide effective ongoing communications throughout the duration of the project and continued support after implementation. Koff & Associates Backup Material Distributed Less Than 72 Hours Prior to the Meeting IM Classification Study Proposal Yo Linda Water District APPROACH AND METHODOLOGY OF SERVICES PROVIDED This section of the proposal identifies the actual work scope. We believe that our detailed explanation of methodology and work tasks clearly identifies our approach and comprehensiveness. A. INITIAL DOCUMENTATION REVIEW /MEETINGS WITH STUDY PROJECT TEAM & MANAGEMENT STAFF This phase includes identifying the client project team (Human Resources, management, other staff, and /or Board Committee members, as appropriate), contract administrator, and reporting relationships. Our team will conduct an orientation and briefing session with the study project team to explain process and methodology; create the specific work plan and work schedule; identify subsequent tasks to be accomplished; reaffirm the primary objectives and specific end products; determine deadline dates for satisfactory completion of the overall assignment; determine who will be responsible for coordinating /scheduling communications with employees, management, Human Resources, and the Board of Directors, if desired; and develop a timetable for conducting the same. Included in this task will be the gathering of written documentation, identifying current incumbents, and assembling current class descriptions, organizational charts, personnel policies, previous classification studies, and any other relevant documentation to gain a general understanding of District operations. (Most likely K &A already has all the pertinent information we need from the organizational study.) District terminology and methods of current classification procedures will be reviewed and agreed to. We will discuss methodology and agree to a class description format. We will respond to questions. B. POSITION DESCRIPTION QUESTIONNAIRE REVIEW We will re- review PDQs to see if we have any classification- specific questions regarding any positions or incumbents and to identify those employees whom we may need to meet with or interview in more detail to ensure that we understand the full scope of work of each District position. C. EMPLOYEE/ SUPERVISORY/ MANAGEMENT INTERVIEWS Interviews will be scheduled with employees, as needed, either based on PDQs already completed and /or due to any changes in assignments, reorganizations, etc. since PDQs were completed. Interviews will then be held with supervisory and management staff to address any big - picture classification issues we need to be aware of before developing classification concepts and allocating employees to the appropriate classifications. Koff & Associates 3 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Classification Study Proposal Yorba Linda Water District The purpose of the interviews is to clarify and supplement the PDQ data and to respond to potential perception differences regarding roles, tasks, scope, and supervisory responsibilities. D. CLASSIFICATION CONCEPT /PRELIMINARY ALLOCATION DEVELOPMENT Prior to developing detailed class descriptions, our job evaluation will result in a classification plan concept and employee allocation document that will be submitted to the project team for review and approval. We will compare changes in business need and operations, as well as any re- organizations, with the established classification system and job families, as well as, review internal relationships between classifications. This document will list broad class concepts and highlight where significant changes may be recommended, such as expanding or collapsing class series in the same functional area and /or separating or combining classifications assigned to different functional areas. We will review and analyze current classification series, the number of classifications and classification levels, and career ladders, and determine whether any changes and /or new classifications are necessary to address the District's service needs. We will also review and update established titling guidelines for the studied classifications for appropriate and consistent titling. A detailed, incumbent - specific allocation list for each position included in the study will be prepared, specifying current and proposed classification title and the impact of our recommendations (reclassification — upgrade or downgrade, title change, or no change). After we have completed this process, we will meet with the project team, Human Resources, and management staff to review the proposed recommendations to the classifications being studied based on industry best practices and roles and responsibilities. E. DRAFT CLASS DESCRIPTION DEVELOPMENT /UPDATE After preliminary approval of the class concepts and allocation lists, new and /or updated class descriptions will be developed for each proposed classification, following the format approved by the project team and District. From the review of the PDQs and employee interviews, we will update duties, responsibilities, and minimum qualifications of each class specification, as necessary, or develop new class specifications if duties, responsibilities, and minimum qualifications have changed significantly, we recommend new classifications /class levels, and /or operational changes, business needs, and any re- organizations require new classifications. We will review, analyze, and update, as appropriate, knowledge, skills, abilities, education and experience, relevance and hierarchical consistency, position definitions, purpose, distinguishing characteristics, supervision received and exercised, position functions and special requirements, including licensing and certification requirements. Each qualifying statement will be directly applicable to the essential job functions as listed in the examples of duties section. Koff & Associates 4 Backup Material Distributed Less Than 72 Hours Prior to the Meeting IM Classification Study Proposal Yorba Linda Water District Finally, we will review each classification's essential job functions and determine exempt vs. non - exempt status in accordance with "white collar" exemptions under the Fair Labor Standards Act (FLSA) and will also ensure compliance with the Americans with Disabilities Act (ADA). F. DRAFT CLASS DESCRIPTION REVIEW /INFORMAL APPEAL PROCESS First a copy of the classification descriptions will be submitted to the Project Team for review and discussion. This review will ensure that no factual information is overlooked and that the recommendations are fair and consistent. Next, a draft copy of the revised /new class description with allocation recommendation will be submitted to each manager, supervisor, and employee, to give each stakeholder an opportunity to provide comments and concerns regarding any modifications to the classification structure and specifications. Our experience has been that this is one of the most critical phases of the project (but also one of the most time - consuming). Our proactive and effective communication process at this crossroad has always avoided formal appeals, adversarial meetings, or major conflicts at the conclusion of the study. Each employee will receive a memorandum from us outlining what has been accomplished, how to best review the draft classification specification that will be attached, and how to provide feedback to us. Supervisors and managers receive a copy of their employees' draft class descriptions and will be asked to review their employees' comments and feedback to verify and concur with the information provided. Each memo will have two options for the employee's signature: one line is reserved for employees who have read and agree with their draft class description; the other line is reserved for employees who have read the draft class description and disagree with certain parts, want to make changes, want to add or delete information, or have general questions about the description and /or the process. Employees shall submit their written concerns (via their supervisor /manager) to our office. While employees may not always agree with our recommendations, they have a "second chance" to ensure that they have been heard and to continue the educational process regarding why specific recommendations were made. Significant employee comments will be reviewed with management prior to making any significant changes to the proposed class plan. These discussions may be by email, telephone, or additional direct personal contact with employees, depending upon the extent of the response. Allocation and /or class description changes will be made as required and the class specifications will be finalized and submitted for approval. All employees who submitted their comments during the review process will be notified in writing regarding the outcome of their concerns. Koff & Associates 5 KI&I Backup Material Distributed Less Than 72 Hours Prior to the Meeting Classification Study Proposal Yorba Linda Water District G. FINALIZE CLASSIFICATION PLAN /DRAFT INTERIM REPORT /FINAL REPORT A Draft Interim Report of the Classification Study will be completed and submitted to the District for review and comment. The report will contain: A recommended classification plan; A classification manual, including documentation regarding study goals and objectives, classification methodology, approach, and process, as well as, all findings, analysis, and resulting recommendations; The recommended allocation list, classification title changes, job family and career growth issues, reporting relationships, organization structure, and other factors will all be included; y Classification concepts and guidelines, as well as, distinguishing characteristics and other pertinent information for implementation and continued maintenance of the Plan will be detailed; y A complete set of the updated classification descriptions that include required knowledge, skills, and abilities for each position class in a standardized format. Once we have received the District's comments regarding the Draft Interim Report and have made any necessary changes, a Final Classification Report will be developed. H. PARTICIPATION IN A FORMAL APPEAL PROCESS Should the District have a formal appeal process regarding the allocation of positions to classifications and of classifications to salary ranges, this proposal does not cover time regarding a formal appeal process (the informal appeal process is identified in F above). Should our on -site participation be desired, our stated composite hourly rate will be honored. As mentioned above, however, our internal process usually addresses any appeal issues. I. FINAL PRESENTATION Our proposal includes multiple meetings and conference calls and weekly oral and /or written status /progress updates to the study project team. We will also be prepared to develop and present our report and future impacts of any recommended changes to the District Manager, as well as, other District management staff, if desired. Regarding the involvement of the Board of Directors, we are flexible to have more or less interaction with the Board, based on the Board's preferences. Koff & Associates 6 Backup Material Distributed Less Than 72 Hours Prior to the Meeting KI&I PROJECT COMPLETION SCHEDULE Classification Study Proposal Yorba Linda Water District Our professional experience is that comprehensive classification studies of this scope and for this size organization take approximately three (3) months to complete, allowing for adequate position description questionnaire review, interview time, classification description development, review steps by the project team, management, and employees, the development of the final report, any appeals, and presentations. K &A is prepared to start the study immediately after contract award. The following is a general timeline and we'll be happy to provide a more specific schedule with actual completion dates if the District decides to move forward with this effort: Koff & Associates 7 Approximate Weeks from Classification Study Contract Execution A. Initial Document Review/Meetings with Study Project Team Within 1 Week B. Position Description Questionnaire Review 2 Weeks C. Employee/Supervisor/Management Interviews 3 -4 Weeks D. Classification Concept/Preliminary Allocation Development 5 Weeks E. Draft Class Description Development /Update 6 -9 Weeks F. Draft Class Description Review /Informal Appeal Process 10 -11 Weeks G. Finalize Classification Plan /Draft Interim Report /Final Report 12 Weeks H. Formal Appeals As Needed I. Final Presentations As Scheduled Koff & Associates 7 KI FEE STRUCTURE Backup Material Distributed Less Than 72 Hours Prior to the Meeting Classification Study Proposal Yorba Linda Water District Koff & Associates Classification Study Hours A. Initial Document Review /Meetings with Study Project Team and HR/Management Staff 4 B. Position Description Questionnaire Completion & Review 16 C. Em to ee /Su ervisor /Mans ement Interviews 16 D. Classification Concept/Preliminary Concept/Preliminary Allocation Development 12 E. Draft Class Description Development/Update (assuming approximately 58 145 F. Draft Class Description Review /Informal Appeal Process 20 G. Finalize Classification Plan /Draft Interim Report/Final Report 12 H. Formal Appeal* 0 I. Final Presentations 8 Additional meetings with study Project Team, employees, and /or other stakeholders 4 Total Professional Hours 237 Combined professional and clerical composite rate: $105 /Hour $24,885 Expenses: $2,000 Expenses include but are not limited to duplicating documents, binding reports, phone, fax, supplies, postage, air fares, rental cars, hotels, travel time, etc. TOTAL LUMP SUM FOR PROJECT NOT TO EXCEED: $26,885 Additional consulting will be honored at composite rate ($105) Koff & Associates Backup Material Distributed Less Than 72 Hours Prior to the Meeting KI PROPOSAL SIGNATURE PAGE This proposal is valid for 90 days. Respectfully Submitted, Proposer: KOFF & ASSOCIATES, INC. State of California Signed By: 1--m S-ba"A-k�� Georg S. Krammer Chief Executive Officer Classification Study Proposal Yorba Linda Water District December 11, 2013 Date Koff & Associates 9 K� E Human Resources Policies Development Yorba Linda Water Proposal District Koff & Associates Georg Krz: Chief Executive Officer 6400 Hollis Street, Suite 5 Emeryville, CA 94608 www.koffassociates.com E: gkrammer @koffassociates.com P: 510.658.5633 T: 800.514.5195 F: 510.652.5633 KIG Backup Material Distributed Less Than 72 Hours Prior to the Meeting Human Resources Policies Development Proposal Yorba Linda Water District SCOPE OF WORK TO REVIEW /UPDATE /DEVELOP HR POLICIES AND PROCEDURES Yorba Linda Water District wishes that its Human Resources policies and procedures be reviewed, evaluated, and updated /newly developed to ensure consistent and proper administration of HR activities. The number one priority will be to ensure legal compliance. Our methodology for the policies and procedures review includes research and recommendations for legal compliance; review and recommendations for strongly suggested policies and procedures following best practices models; and review and recommendations for additional policies that are consistent with current organizational culture, philosophy, and established practice. We will undergo the following process: a. First Review of District's Current Policy and Procedure Manual: we will review the District's current employee manual, if the District currently has one, and make recommendations regarding policies and procedures in each of the above - mentioned areas — legal compliance, best practices -type of policies, and policies consistent with the District's current culture, philosophy and practice. The expectation is that we will build on the framework that has already been established, if applicable, and ensure that all policies and procedures are up -to -date based on most current labor laws, and that they are in line with the District's organizational culture, philosophy, and established practice. If the District does currently not have an HR manual, we will develop a first draft based on our own best practices model (see below). b. First Draft of Manual: after initial discussion regarding strategy, available options, formats, and an outline of how the District wishes to move forward, we will create a first draft document of updated policies and procedures. Throughout the entire developmental process, we will advise the District on possible alternative approaches to administering various policy issues and recommend appropriate inclusions, deletions, and /or modifications of current philosophy and practices. Working with many different clients, we share best practices including alternative implementation strategies. If we are working with the District's current manual, our initial draft will be color -coded to promote further discussion on specific language /policy issue clarification and /or recommendations that we note throughout the development of the first draft. As mentioned above, if the District does currently not have an HR manual, we will develop a first draft based on our own best practices model. c. Client Review of First Draft /Meeting: management staff and /or the Board of Directors will review the first draft of the new /updated manual and make comments, revisions, and /or recommendations. A meeting will be scheduled after the initial review to gather additional feedback regarding specific color -codes and other sections of the manual and to discuss best practices. d. Second Draft Document: based upon the meeting and feedback from management and /or the Board, we will incorporate feedback and develop a second draft document. Another meeting will be facilitated for final discussion and input by key stakeholders to incorporate all desired policy and procedure language. Koff & Associates KIG Backup Material Distributed Less Than 72 Hours Prior to the Meeting Human Resources Policies Development Proposal Yorba Linda Water District e. Third Draft Document: a third and final draft of the manual will be developed, responding to and resolving all outstanding issues in order to address and eliminate any remaining color -coded sections. f. Legal Counsel Review /Final Document: we strongly recommend that the District have the final document reviewed by its legal counsel. While every effort is taken to ensure that the document meets all legal requirements, we are not attorneys. The final document will incorporate any attorney recommendations and /or modifications. FEE SCHEDULE The services described above will be charged on a time - and - materials basis: Personnel Policies and Procedures We anticipate that the review and update of policies and procedures would take approximately 60 hours for the entire effort. It is anticipated that the bulk of the work will be performed by Georg Krammer, CEO of Koff & Associates. Georg's hourly rate is $150.00. The cost for this effort is therefore estimated at $9,000 plus expenses for travel to meetings, printing, copying, and binding of materials, phone, fax, etc. at $1,000, for a total of $10,000. The following are our rates for all personnel: President & CEO $150 /hour Project Manager $125 /hour Associate $105 /hour Technical /Admin. Support $60 /hour Time is accounted for and billed on a quarter of an hour (.25) basis. Travel time in connection with services is billed for each staff member at one -half of the normal hourly billing rate. Reimbursable expenses are billed on a pass- through basis, without mark -ups. Respectfully Submitted, By: KOFF & ASSOCIATES, INC. State of California December 11, 2013 Georg S. Krammer, Date Chief Executive Officer Koff & Associates K� E Succession Planning Proposal Yorba Linda Water District Koff & Associates Georg Krz: Chief Executive Officer 6400 Hollis Street, Suite 5 Emeryville, CA 94608 www.koffassociates.com E: gkrammer @koffassociates.com P: 510.658.5633 T: 800.514.5195 F: 510.652.5633 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Succession Planning Proposal Yorba Linda Water District Table of Contents Understanding of the Project 1 Approach and Methodology of Services Provided 1 Project Completion Schedule 5 Fee Structure 6 Signature Page 7 Koff & Associates Backup Material Distributed Less Than 72 Hours Prior to the Meeting *mot Succession Planning Proposal Yorba Linda Water District 1�, tip •� N -. UNDERSTANDING OF THE PROJECT The Yorba Linda Water District is seeking professional Human Resources assistance with the development of a comprehensive, multi - pronged succession plan for its workforce. The goal is to ensure seamless institutional knowledge sharing, as well as continuity of service delivery through a workforce that is prepared to handle service demands, ever - shifting priorities, and emerging challenges. The District has approximately eighty (80) positions allocated to approximately fifty -eight (58) job classifications. Generational retirements and looming loss of institutional knowledge are challenges that many public agencies are facing. The District wants to be prepared accordingly. The project's purpose is to accomplish the following outcomes /deliverables, at a minimum: 1. An assessment of service needs (this was accomplished during the recent organizational study K &A recently completed). 2. Identification of critical positions, review of associated class specifications, and identification of any deficiencies and /or recommendations regarding revisions to the class specifications. 3. Identification of job competencies /key skill sets for critical positions. 4. Development of a plan to address critical positions as vacancies occur. 5. Gap analysis to determine the existence of and /or the extent of a gap in the competencies for each critical position. 6. Identification of training and development activities to close the gaps and build stronger competencies in employees. 7. Implementation strategy for the succession plan. 8. Tools for monitoring and evaluating the long -term success of the succession plan. The project includes a significant number of meetings with the project team, management, human resources, employees, and the Board of Directors, as desired. APPROACH AND METHODOLOGY OF SERVICES PROVIDED Based on the above parameters, the following is our detailed scope of work and methodology: A. INITIAL DOCUMENTATION REVIEW/ STRATEGIC PLANNING MEETINGS WITH PROJECT TEAM, BOARD OF DIRECTORS, MANAGEMENT STAFF, AND HUMAN RESOURCES This phase includes identifying the client project team (Human Resources, management, other staff, and Board Committee members, as appropriate), contract administrator, and reporting relationships. Our team will facilitate a strategic planning meeting and orientation and briefing session with the project team and management to explain process and methodology; create the specific work plan and work schedule; identify subsequent tasks to be accomplished; reaffirm the primary objectives and specific end products; determine deadline dates for satisfactory completion of the overall assignment; determine who will be responsible for coordinating /scheduling communications with employees, management, employee representation, and the Board of Directors; and develop a timetable for conducting the same. Koff & Associates Backup Material Distributed Less Than 72 Hours Prior to the Meeting *mot Succession Planning Proposal ,46 Yorba Linda Water District 1�, tip •� N -. Included in this task will be the gathering of written documentation, identifying current incumbents, and assembling current class descriptions, organizational charts, salary schedules, budgets, personnel policies, documentation regarding strategic planning and /or workforce development efforts (if any), and any other relevant documentation to gain a general understanding of District operations. (Most likely K &A already has all the pertinent information we need from the organizational study.) We will discuss methodology and respond to questions. B. IDENTIFY SERVICE NEEDS AND KEY STRATEGIC POSITIONS In order to understand the District's service needs and identify those positions that the District cannot do without to meet its strategic goals and objectives, we typically do the following: 1. Review the District's strategic plan and /or any other strategic efforts the District has undergone recently. 2. Conduct focus group meetings with District leadership, as well as, a management team representing each District department in order to understand department specific needs regarding strategic goals and objectives and strategic key positions. These tasks were accomplished during the recent organizational study. In assisting the District in formulating /developing a strategic plan with organizational goals and objectives with which to align each department's, each manager's, and each employee's goals and objectives, we have learned what the goals and objectives are for future service delivery are. This information will help us identify what each department's strategic job families and /or key positions are. Strategic job families and key positions are typically a fairly small percentage of the total workforce in an organization and are job categories that have the greatest impact on the strategic objectives. Because resources for developing employee skills and improving performance aren't endless, the District will need to focus its succession planning efforts on those positions in which employees with the right skills, talent, and knowledge have the biggest impact on enhancing the organization's critical internal processes. The question we will ask District management and the Board of Directors is: who can you not do without? C. DEVELOP A SET OF GLOBAL AND POSITION SPECIFIC COMPETENCIES AND PERFORMANCE EXPECTATIONS After identifying strategic job families and key positions, we will facilitate a process to establish the set of requirements for these jobs, i.e., we will develop a competency profile for each key position. Initially, we will facilitate another workshop with District leadership to identify what the District's overall organizational competencies /values are /should be that will be the foundation for what is required of each key position. Koff & Associates Backup Material Distributed Less Than 72 Hours Prior to the Meeting Im— Succession Planning Proposal Yorba Linda Water District In addition to the above, the following are strategies to identify position- specific competencies for each key position: 1. Review current classification specifications to glean what the current requirements are regarding knowledge, skills, and abilities. Therefore, we recommend that the District's class specifications (i.e., job descriptions) be updated before undertaking this effort. 2. Meet with management focus groups per department and the Board of Directors to discuss these and what changes management may require to meet future service needs. 3. Meet with incumbents or groups of incumbents in each job family and key position to obtain their perspective regarding required competencies. Definition of organizational /global competencies, position- specific competencies, required knowledge, skills, and abilities, as well as organizational values will create the competency profile for the strategic job families and key positions. D. ASSESS ORGANIZATIONAL READINESS The next assessment we will conduct is to determine if and how well the individuals in the identified key positions meet the requirements detailed in the competency profile. We will focus on identifying current talent in key positions with assumed time to departure and assess what has made them successful or not. There are several different approaches we will use: 1. Review incumbents' performance evaluations. 2. Meet with managers managing the above - identified key positions and interview them regarding the incumbents' performance levels, experience, competencies, and organizational and position fit. 3. Meet with the incumbents in the key positions and interview them regarding whether they feel that they are given the resources, staff, and training to accomplish their goals and objectives and meet/exceed expectations. This process is often called skills gap analysis as it will establish where incumbents may be falling short compared to the established competency profiles for their positions. E. IDENTIFY KEY TALENT POOL The District will need to decide which /how many resources it wants to commit to establishing development plans for those incumbents in key positions for whom our organizational readiness assessment currently shows a skills gap. In addition, we will facilitate a process of identifying who the District's current key talent pool of individuals is who shows the potential of moving into key positions in the near future based on: 1. Experience; 2. Performance history; Koff & Associates Backup Material Distributed Less Than 72 Hours Prior to the Meeting Succession Planning Proposal Yorba Linda Water District 3. Competencies; 4. Fit; 5. Availability; 6. Readiness; and 7. Interest This assessment is similar to the one employed for current incumbents in the key positions. We will perform a gap analysis to identify what needs to happen to have key talent ready now, in six months, in one year, etc. This assessment will translate into development plans or personal scorecards for key talent to help them improve capabilities in ways that are supportive of their professional growth and of the organization's overall strategic /succession planning objectives. This will include opportunities for training and development activities, mentoring, job rotation, development of career ladders, etc. to close the gaps and build stronger competencies in employees. Once key talent has been identified, the goal is to retain those who are potential future leaders of the organization. F. DEVELOP SUCCESSION MANAGEMENT /IMPLEMENTATION PLAN Depending on how many strategic job families and key positions will be identified, the District may want to implement its succession plan in phases, focusing on executive management positions first. Overall, the goal of any succession plan should be not to make it too complicated for managers and employees to see their path and real opportunity for growth and advancement. Tying succession planning efforts into the District's overall HR and workforce development infrastructure, will include the following: 1. Analyze current recruitment, selection, retention, and training and development programs, policies, and practices; how do they meet the succession needs and targets? 2. Identify changes and /or develop new recruitment, selection, retention, and training and development programs, policies, and practices. 3. Develop tools and practices to encourage knowledge sharing within the District. 4. Develop the implementation plan, including who, when, what, and how. 5. Develop communication plans and change management plans. 6. Encourage commitment to the process and program. 7. Ensure adequate allocation of resources. 8. Analyze current performance management, evaluation, and accountability system. 9. Develop metrics to measure program effectiveness. 10. Identify key players who will be held accountable for achieving program goals. We will development communication tools to communicate the new succession management plan throughout the District. Of course, this will not be the first time the organization is hearing about this plan. One of the goals of all the meetings and focus groups through this process is to encourage organizational buy -in and support. Koff & Associates 4 KI 0 Backup Material Distributed Less Than 72 Hours Prior to the Meeting Succession Planning Proposal Yorba Linda Water District We will be available to manage the change process: implementing recruitment and selection strategies; implementing retention strategies; implementing training and development programs; implementing knowledge- sharing strategies; implementing a clear and effective performance management system. Finally, we will develop and assist in collecting and documenting performance metric data to evaluate effectiveness of the succession plan and other programs. DELIVERABLES Succession Planning ➢ An assessment of the District's strategic job families and key positions; ➢ A set of global organizational /leadership and key position- specific competencies; ➢ An assessment of incumbents in key positions and their readiness regarding required competencies and what the District's goals and objectives are; ➢ An assessment of key talent within the District that identifies individuals who show potential in terms of required competencies and leadership; and ➢ An actual succession management plan /road map for implementation and tools for monitoring and evaluating the long -term success of the succession plan. Throughout the Project ➢ Extensive communication with the project team, Board of Directors, District management, affected employees, and other stakeholders, as appropriate; and ➢ At least five (5) copies of the Succession Plan and one electronic version of all of the supporting data and spreadsheets created on email or disc in WORD and EXCEL format. PROJECT COMPLETION SCHEDULE We estimate that the project would take approximately three (3) months to complete. The following is a general timeline and we'll be happy to provide a more specific schedule with actual completion dates if the District decides to move forward with this effort: Koff & Associates Approximate Weeks from Succession Plan Development Contract Execution A. Initial Document Review /Strategic Planning Meetings with Project Team, Board of Directors, Management Staff, and HR Within 1 Week B. Identify Service Needs and Key Strategic Positions 2 -3 Weeks C. Develop a Set of Global and Position Specific Competencies and Performance Expectations 4 -5 Weeks D. Assess Organizational Readiness 6 -7 Weeks E. Identify Key Talent Pool 8 -9 Weeks F. Develop Succession Management/implementation Plan 10 -12 Weeks Koff & Associates KI FEE STRUCTURE Backup Material Distributed Less Than 72 Hours Prior to the Meeting Succession Planning Proposal Yorba Linda Water District Koff & Associates Hours Succession Plan Development A. Initial Document Review /Strategic Planning Meetings with Project Team, Board of Directors, Management Staff, and Human Resources 4 B. Identify Future Service Needs and Key Strategic Positions 8 C. Develop a Set of Global and Position Specific Competencies and Performance Expectations 30 D. Assess Organizational Readiness 24 E. Identify Key Talent Pool 16 F. Develop Succession Management/implementation Plan 50 Additional meetings with Project Team, employees, and /or other stakeholders 4 Total Professional Hours 136 Combined professional and clerical composite rate: $125 /Hour $17,000 Expenses: $1,000 Expenses include but are not limited to duplicating documents, binding reports, phone, fax, supplies, postage, etc. TOTAL LUMP SUM FOR PROJECT NOT TO EXCEED: $18,000 *Additional consulting will be honored at composite rate ($125) Koff & Associates Backup Material Distributed Less Than 72 Hours Prior to the Meeting K� PROPOSAL SIGNATURE PAGE This proposal is valid for 90 days. Respectfully Submitted, Proposer: KOFF & ASSOCIATES, INC. State of California Signed By: --ml uwjj-�� Georg S. Krammer Chief Executive Officer Succession Planning Proposal Yorba Linda Water District December 11, 2013 Date Koff & Associates 7