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HomeMy Public PortalAboutFY22 - 26 SBOP Final 6-15-21 Strategic Business and Operating Plan Fiscal Years 2022-2026 METROPOLITAN ST. LOUIS SEWER DISTRICT 2 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT VISION STATEMENT  Quality Service Always MISSION STATEMENT  To protect the public’s health, safety, and water environment by responsibly providing wastewater and stormwater management VALUES  INTEGRITY Acting ethically at all times, treating everyone with honesty, fairness and respect.  TEAMWORK Working together to accomplish our mission with open communication, trust, respect and diversity.  INNOVATION Embracing continuous improvement and new solutions to achieve excellence and sustainability.  EMPLOYEES Developing successful, responsible, and safety conscious employees and acknowledging their contributions.  CUSTOMERS Building strong relationships by keeping our commitments, providing excellent service and being transparent in everything we do. Vision, Mission, Value statements are important elements of a strategic business plan. The Mission statement keeps the District focused on its essential activity, the Vision statement points to its ideal purpose, and the Value statement conveys the principles that must shape our actions. 3 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGIC BUSINESS AND OPERATING PLAN The Fiscal Year (FY) 2022 Strategic Business and Operating Plan (SBOP) is a business-focused blueprint for serving our ratepayers now and into the future. It is a plan that puts the ratepayers and the St. Louis community first. The SBOP’s goals are clear:  Deliver consistent, high quality customer service;  Comply with all legal and regulatory requirements and schedules;  Minimize customer rate increases; and  Be accountable to the St. Louis community. These goals build on the public input and feedback that the District has received since the first SBOP was introduced in 2001. While the FY 2022 goals may appear similar to the original set of goals, the underlying refinements and changes in these goals are significant. The FY 2022 SBOP is easily understood, the goals and resulting strategies are actionable, and the impact of the strategies is measurable. Additionally, the FY 2022 SBOP continues a philosophy that intimately links budgetary expenditures and strategic goals. Under this philosophy, the goals and strategies of the SBOP drive budgetary expenditures and succinctly support the SBOP’s success. Further, the budgetary expenditures for the SBOP are business focused and ultimately serve the ratepayer. To achieve these goals, the FY 2022 SBOP proposes six business-focused strategies: Strategy 1: Inform, educate and partner to build stakeholder understanding. Essential to our success is an active dialog with stakeholders to improve mutual understanding of the needs of the District and its stakeholders. Education will focus on the District’s goals, needs and initiatives. When possible, we will partner with stakeholders to achieve win-win solutions on common issues. Partnering will take many forms, including – but not restricted to – discussions with various stakeholder groups; District organized focus groups; employee participation in civic organizations; and regulatory advisory committees. 4 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT Strategy 2: Manage the District’s costs and revenues to optimize financial impacts. The District continues to face increasing fiscal demands related to regulatory issues affecting its collection and treatment systems. In response to these demands, the District is continuing its important work to protect local waterways, ensure compliance with State and Federal environmental regulations, and provide effective, efficient wastewater and stormwater services to the St. Louis community. This work continues in the form of Project Clear, which includes the District’s multi-decade, multi-billion dollar Capital Improvement and Replacement Program (CIRP). It is essential the District diligently manage costs and minimize rate increases. Sound financial management, long-term planning, internal audit practices, and leveraging of data are critical components of this strategy. Strategy 3: Integrate and improve the District’s business processes. Not accepting the status quo as justification for current and future business practices, and continually reviewing best practices amongst contemporaries are cultural imperatives for continual improvement. The goal of this initiative focuses on identifying and implementing process improvements that will enable the District to meet or exceed established performance, production and customer satisfaction goals. Strategy 4: Promote appropriate standards through proactive regulatory and legislative involvement. The most significant factors affecting current and future rate increases are federal and state regulations and legislation. It is often the case that implementation of multiple regulations compete for the same, scarce funding resources. As authorities in wastewater and stormwater management, it is essential that we assist in the creation of regulations that will efficiently achieve desired results. This strategy focuses on our involvement in the formation of regulations and legislation that impact all areas of the District's operations. It is crucial that regulations and legislation be based on sound technical information and governance frameworks. The District and others in the regulated community are in the best position to provide such information. 5 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT Strategy 5: Address customer and regulatory needs through a comprehensive infrastructure management program. Maintaining customer service expectations and meeting regulatory requirements are paramount concerns within the District’s mission. However, these must be balanced against the need to cost effectively maintain the District’s wastewater, stormwater, and supporting assets, including data and information technology security. This can only be achieved through investigation, planning, maintenance and capital replacement programs with continual consideration for emerging technology. A model infrastructure management program effectively integrates these processes while considering risk and required service levels. The resulting program minimizes the life-cycle costs of infrastructure assets at an acceptable level of risk, while continually delivering established levels of service. Strategy 6: Create a learning and business oriented culture based on competency and accountability. The District’s success is dependent upon employees having appropriate competencies and skills within a culture of accountability: a culture that is rooted in ethical integrity and seeks a balance between effectiveness, efficiency and cost management. Improving employee and organizational performance at all levels is the core of this strategy. Special emphasis will be placed on leadership development, management/supervisory skill training, open communications, general operational and administrative needs, and building awareness of individual employee’s role in the success of the overall organization. FISCAL YEAR 2022 OBJECTIVES The District has developed a set of specific objectives that support these strategies and, thus, achieve the goals of the Strategic Business and Operating Plan. Objectives are segmented into “Year 1”, “Year 2” and “Years 3-5” categories. Combined, these objectives make up the tactical blueprint that we will engage in during FY 2022 and beyond, as we strive to protect the public’s health, safety and water environment by responsibly providing wastewater and stormwater management. Achieving these objectives is the responsibility of various departments within the District. These departments are shown on the following organizational chart: 6 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT THE METROPOLITAN ST. LOUIS SEWER DISTRICT ORGANIZATIONAL CHART BOARD OF TRUSTEES Rate Commission Internal Auditor Secretary-Treasurer Civil Service Commission Executive Director General Counsel Engineering Human Resources Information Technology Operations Finance 7 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 1: INFORM, EDUCATE AND PARTNER TO BUILD STAKEHOLDER UNDERSTANDING Objective 1: EXECUTE COMMUNITY OUTREACH PROGRAMS AND ENGAGEMENT PROGRAMS Annual Support Activities a) Maintain relationships with stakeholders and engage additional stakeholders with message synergy to educate and inform on MSD and its goals and initiatives b) Review and update public communication and outreach programs goals and staffing. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Complete stormwater listening sessions. Q1, FY 2022 Q4, FY 2022 8 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 1: INFORM, EDUCATE AND PARTNER TO BUILD STAKEHOLDER UNDERSTANDING Objective 1: EXECUTE COMMUNITY OUTREACH PROGRAMS AND ENGAGEMENT PROGRAMS Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 – 2026 Develop draft employee talking point protocol for Stormwater Capital Program. Get stakeholder groups feedback on engagement topics and process for Stormwater Capital Program. Gather employee input for employee talking point protocol for Stormwater Capital Program. Develop final talking point protocol and implement. Develop plan to engage stakeholder groups for specific deliverables for Stormwater Capital Program. Implement stakeholder group engagement plan. Follow-up on results of stormwater program polling. Measure results of stakeholders group engagement plan. Evaluate leveraging MSD 70th anniversary in 2024 in conjunction with stormwater initiative. Develop and execute communications plan for wastewater bond election in April 2024. Develop and execute communications plan for stormwater election in April 2025 or August 2025. 9 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 1: EDUCATE AND PARTNER WITH STAKEHOLDERS TO BUILD SUPPORT Objective 2: EXECUTE OUTREACH PROGRAMS FOR ELECTED REPRESENTATIVES AND OTHER MUNICIPAL OFFICIALS Annual Support Activities a) Develop legislative agenda for both State and Federal activities. b) Conduct meetings with St. Louis City (Mayor’s office and Board of Aldermen) and St. Louis County (County Executive’s office and County Council) regarding District goals and needs. c) Enhance relationships with local governments through briefings on projects and other topics of mutual concern with a focus on expanding peer to peer relationships with staff counterparts. d) Provide annual review of the Legislative Outreach Program results and assess future activities for enhancing effectiveness. e) Conduct annual outreach and Jefferson City briefings for State of Missouri legislators. f) Conduct annual legislative briefing for Federal legislators. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe 10 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 1: EDUCATE AND PARTNER WITH STAKEHOLDERS TO BUILD SUPPORT Objective 2: EXECUTE OUTREACH PROGRAMS FOR ELECTED REPRESENTATIVES AND OTHER MUNICIPAL OFFICIALS Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 – 2026 Inform and engage officials on results of public’s desire for a District-wide stormwater capital program. Evaluate leveraging MSD 70th anniversary in 2024 in conjunction with stormwater initiative. Engage elected officials as appropriate on any new stormwater capital funding initiative. Develop and execute communications plan for wastewater bond election in April 2024. Develop and execute communications plan for stormwater election in April 2025 or August 2025. 11 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 1: EDUCATE AND PARTNER WITH STAKEHOLDERS TO BUILD SUPPORT Objective 3: EXECUTE DIVERSITY AND ASSOCIATED OUTREACH PROGRAMS Annual Support Activities a) Participate in networking outreach activities and community events to increase stakeholder relationships and participation with the District’s Diversity Programs. b) Identify opportunities to increase women workforce participation on CIRP construction projects. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Continue implementation of Disparity Study results and recommendations based on findings, and update diversity programs as necessary. Q1, FY 2022 Q4, FY 2022 Continue collaboration and outreach with youth programs focused on early development of construction industry workers. Q1, FY 2022 Q4, FY 2022 Collaborate with area programs focused on increasing opportunities for hiring low income, unemployed and underemployed individuals for District projects. Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 – 2026 Evaluate job placement and impact of the Workforce Development Grant Program and make adjustments if needed. Consider whether or not to include the impact of the utilization of other classes of disadvantaged individuals prior to the execution of the next Disparity Study. Identify opportunities which incentivizes women to enter and participate in the sewer construction industry. Evaluate need to select a consultant in late FY2026 to perform a new Disparity Study. Leverage 10 year anniversary of Community Benefits Agreement. 12 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 2: MANAGE THE DISTRICT’S COSTS AND REVENUES TO OPTIMIZE FINANCIAL IMPACTS Objective 1: INCREASE COLLECTION OF DELINQUENT REVENUE Annual Support Activities a) Continue to assess and modify collection process to reduce net average collection period by 1 day each fiscal year. b) Evaluate and implement changes to the Customer Assistance Program (CAP) in order to increase participation. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Implement a pilot water shut-off program for commercial customers and assess effectiveness. Q1, FY 2022 Q4, FY 2022 Evaluate alternatives for acquiring water data for commercial customers Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Calculate cost savings of shut-off program. Continue implementation of process improvements relating to the shut-off program. If applicable, implement alternative for acquiring water data for commercial customers if evaluation concludes it is appropriate. 13 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 2: MANAGE THE DISTRICT’S COSTS AND REVENUES TO OPTIMIZE FINANCIAL IMPACTS Objective 2: IDENTIFY AND IMPLEMENT COST SAVINGS INITIATIVES Annual Support Activities a) Maintain annual operating budgets that are aligned with approved Rate Commission report. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Evaluate integrated payables process results (i.e., e-payments). Q1, FY 2022 Q4, FY 2022 Investigate the District’s ability to offer non-traditional benefits. Q1, FY 2022 Q4, FY 2022 Continue to evaluate processes that could potentially be automated. Q1, FY 2022 Q4, FY 2022 Assess changes needed to Wellness Program. Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Continue to evaluate and implement process automation. Continue to evaluate and implement process automation. If applicable, implement non-traditional benefits. Implement any changes needed to the Wellness Program. 14 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 2: MANAGE THE DISTRICT’S COSTS AND REVENUES TO OPTIMIZE FINANCIAL IMPACTS Objective 3: MAXIMIZE LONG-TERM FINANCIAL PLANS FOR DISTRICT NEEDS Annual Support Activities a) Manage capital program (wastewater and stormwater) within supporting revenue while assuring Consent Decree compliance and regulatory requirements. b) Manage District’s key financial ratios to maintain current bond ratings and Consent Decree compliance. c) Manage multi-decade financing plan to support current and future requirements. d) Pursue external sources of funding, where available. e) Continue using predictive analytics to improve financial forecasting and revenue collection. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Implement remaining Board approved rates resulting from the Wastewater Rate Commission Proposal. Q1, FY 2022 Q1, FY 2022 Complete Inflow and Infiltration (I/I) Allocation Study. Q1, FY 2022 Q2, FY 2022 Complete City Water Attribute Assumption Study. Q1, FY 2022 Q2, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Start Wastewater Rate Commission process. Participate in Wastewater Rate Commission process. If applicable, start Stormwater Capital Rate Commission process. Implement Board approved Rate Commission recommendations. 15 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS Objective 1: IMPLEMENT INFORMATION GOVERNANCE PROGRAM THAT MEETS THE DISTRICT’S RECORDS & INFORMATION DISCOVERY, COMPLIANCE AND INFORMATION SECURITY POLICIES Annual Support Activities a. Continue communication and change management, marketing and messaging campaigns for the IG Program. b. Continue implementation of business process and organization changes. c. Continue to train employees and manage physical and electronic records storage pursuant to the Records Retention Schedule. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Complete inaugural Information Governance audit. Q1, FY 2022 Q4, FY 2022 Complete digitizing of MSD employee personnel records. Q1, FY 2022 Q4, FY 2022 Conduct a District-wide Data Risk Assessment for physical records and data stored in IT Systems. Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Assess enterprise compliance with retention schedules. Re-assess and evaluate IG Program milestones and objectives based upon regulatory requirements. Develop plan to address any issues resulting from the Data Risk assessment. 16 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS Objective 2: INTEGRATE ASSET INFORMATION ACROSS SYSTEMS (ORACLE, MAXIMO AND GIS)) Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe 1. Assess impact of business process changes resulting from automation of asset capitalization manual processes (milestone from FY21 SBOP) and determine plan to address financial impact (if any). Q1, FY 2022 Q2, FY 2022 2. Design and implement automated interfaces for syncing Oracle and Maximo non- linear fixed assets inventory. Q1, FY 2022 Q2, FY 2022 3. Design requirements and strategy for capitalization of non-linear fixed assets – Treatment Plants, Pump Station Q2 FY 2022 Q3 FY 2022 4. Perform cost benefit analysis of reconciling (pre-Oracle) ‘bundled’ collections system assets between GIS and Oracle. Q1 FY 2022 Q1 FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Implement capitalization of non-linear fixed assets (#3 from milestone year 1). Implement reconciled asset book in conjunction with Oracle EBS upgrade based upon cost benefit analysis (#4 from milestone year 1). 17 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS Objective 3: ORACLE EBS UPGRADE Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Develop implementation plan and identify implementation partner(s). Q1, FY 2022 Q1, FY 2022 Implementation of HRMS, Finance, Treasury, Capital Projects and Purchasing. Q1, FY 2022 Q4, FY 2022 User Acceptance and Go Live. Q4, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Continue to monitor the new implementation to ensure all business processes are working as expected. Continue to improve business processes. 18 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS Objective 4: MOBILE TECHNOLOGY STRATEGY Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Continue to develop District mobile technology strategy to standardize mobile hardware and software including Mobile Device Management (MDM) for secure usage of MSD applications on Bring Your Own Device (BYOD) and shared remote network access devices Q1, FY 2022 Q3, FY 2022 Implement provision mobile technology standards and required IT infrastructure and processes Q4, FY 2022 Q1, FY 2023 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Continue to provision standards and infrastructure to support Mobile strategy. Continue to identify and leverage mobile technology to improve district business processes. Assess consumer facing mobile communication strategy utilizing mobile application and text messaging for relaying project status, working in the area notices and for reporting issues. 19 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS Objective 5: CIS SYSTEM REPLACEMENT Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Evaluate CIS system replacement alternatives Create RFP Create Business Case for replacement alternative Implement new system 20 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 4: PROMOTE APPROPRIATE STANDARDS THROUGH PROACTIVE REGULATORY AND LEGISLATIVE INVOLVEMENT Objective 1: PARTICIPATE IN STAKEHOLDER GROUPS TO DEVELOP SOUND TECHNICAL BASIS FOR REGULATORY ISSUES Annual Support Activities a) Advocate in regulatory stakeholder groups created to address nutrient criteria, ammonia criteria, emerging contaminants, bacteria criteria, wet weather issues, Impaired Waters (303d) Listing & Methodology and other changes to the Missouri Department of Natural Resources (MDNR) effluent regulations and water quality standards, air emission limits, and biosolids regulations. b) Advocate in state and local environmental and economic organizations such as the Association of Missouri Cleanwater Agencies (AMCA) and the Missouri Water Environment Association (MWEA). c) Advocate in the Water Environment Federation (WEF), Water Research Foundation (WRF) and the National Association of Clean Water Agencies (NACWA). d) Maintain a dialog with the Non-Governmental Organizations (NGOs) on critical environmental issues. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Participate in Missouri-led stakeholder meetings on Clean Water Act permit fees and advocate for an equitable fee structure. Q1, FY 2022 Q4, FY 2022 Participate in Missouri-led stakeholder meetings on nutrient reduction strategies and nutrient trading. Q1, FY 2022 Q4, FY 2022 Participate in the Volkswagen Trust grant program stakeholder process, to help MSD affordably replace trucks with more emission friendly equipment. Q1, FY 2022 Q4, FY 2022 21 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 4: PROMOTE APPROPRIATE STANDARDS THROUGH PROACTIVE REGULATORY AND LEGISLATIVE INVOLVEMENT Objective 1: PARTICIPATE IN STAKEHOLDER GROUPS TO DEVELOP SOUND TECHNICAL BASIS FOR REGULATORY ISSUES Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Continue to participate in Missouri-led stakeholder meetings on Clean Water Act permit fees and advocate for equitable fee structure. Implement the stakeholder process for submitting a Municipal Separate Storm Sewer System (MS4) application and Stormwater Management Plan. Continue to participate in Missouri-led stakeholder meetings on nutrient reduction strategies and nutrient trading. Continue to participate in the Volkswagen Trust grant program stakeholder process, to help MSD affordably replace trucks with more emission friendly equipment. 22 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 4: PROMOTE APPROPRIATE STANDARDS THROUGH PROACTIVE REGULATORY AND LEGISLATIVE INVOLVEMENT Objective 2: PROMOTE APPROPRIATE REGULATORY AND LEGISLATIVE INITIATIVES THAT IMPACT ALL AREAS OF DISTRICT OPERATIONS Annual Support Activities a) Monitor new regulations and legislation and develop appropriate strategies that impact MSD’s operations, such as legislation on emerging contaminants. b) Work with MDNR as required to develop scientifically-based Total Maximum Daily Loads (TMDLs) with reasonable implementation plans for the St. Louis area. c) Support Missouri DNR’s determination that whole body contact (e.g., swimming) is not an attainable use of the water in the Mississippi River at St. Louis and in the lower River Des Peres. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Advocate for a national peak wet weather rule that is consistent with Missouri regulations and the 2013 8th Circuit Iowa League of Cities decision. Q1, FY 2022 Q4, FY 2022 Advocate for reasonable, affordable, and consistent air and water permit requirements for all of MSD’s facilities. Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Continue to advocate for a national peak wet weather rule that is consistent with Missouri regulations and the 2013 8th Circuit Iowa League of Cities decision. Renew the Regional General Permit 44 issued by the U.S. Army Corps of Engineers to streamline stormwater and sanitary sewer infrastructure maintenance and repair. Continue to advocate for reasonable, affordable, and consistent air and water permit requirements for all of MSD’s facilities. 23 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 5: ADDRESS CUSTOMER AND REGULATORY NEEDS THROUGH A COMPREHENSIVE INFRASTRUCTURE MANAGEMENT PROGRAM Objective 1: IMPLEMENT STORMWATER OPERATING AND CAPITAL IMPROVEMENT PROGRAM Annual Support Activities a) Continue to implement stormwater program commensurate with anticipated stormwater revenues. b) Review Stormwater CMOM results and consider adjustments to I/R funds and staffing needs. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Implement FY 2022 stormwater CIRP program based on funds generated from reinstated OMCI taxes to address flooding and erosion. Consider potential for additional OMCI tax reinstatement. Q1, FY 2022 Q4, FY 2022 Administer OMCI Municipal Grant Program with funding from reinstated OMCI taxes to address the needs of the municipalities' served by the OMCI’s. Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Begin development of Stormwater CIRP to address flooding and erosion based on District Rate proposal. Complete development of Stormwater CIRP to address flooding and erosion based on District wide Rate proposal. Continue to Implement FY 2023 stormwater CIRP program based on funds generated from reinstated OMCI taxes to address flooding and erosion. Continue implementation of stormwater CIRP program based on funds generated from reinstated OMCI taxes to address flooding and erosion. Determine disposition of OMCI taxes as part of Districtwide Rate Proposal. 24 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 5: ADDRESS CUSTOMER AND REGULATORY NEEDS THROUGH A COMPREHENSIVE INFRASTRUCTURE MANAGEMENT PROGRAM Objective 2: IMPLEMENT WASTEWATER OPERATING AND CAPITAL IMPROVEMENT PROGRAM Annual Support Activities a) Implement the CIRP commensurate with anticipated wastewater revenues. b) Continue to monitor progress and adjust resources, schedule, delivery, method and funding as needed to ensure CMOM requirements per Consent Decree are met and proposed changes are warranted. c) Continue to monitor progress and rate of spending for green infrastructure projects program; adjust program as needed. d) Evaluate post-construction flow metering for I/I program and re-assess the need for future capital projects to eliminate Constructed Sanitary Sewer Overflows and provide Capacity Assurance. Update the CIRP based on the results. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Procure and implement modeling software upgrades to take advantage of new technology that will increase engineering efficiencies in flow metering, modeling, and capacity assurance analysis. Q1, FY 2022 Q4, FY 2022 Conduct quarterly meetings with Engineering and General Counsel staffs to monitor and adjust projects in order to ensure compliance with the Consent Decree performance measure for the elimination of 85% Constructed Sanitary Overflows by the end of calendar 2023. Q1, FY 2022 Q2, FY 2024 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Assess new modeling software upgrades and make process changes to maximize efficiencies. Evaluate the CSO Volume Reduction Green Infrastructure and Cityshed Programs for program compliance and future CIRP programming. 25 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 5: ADDRESS CUSTOMER AND REGULATORY NEEDS THROUGH A COMPREHENSIVE INFRASTRUCTURE MANAGEMENT PROGRAM Objective 3: IMPLEMENT ASSET MANAGEMENT PROGRAM Annual Support Activities a) Continue implementation of the monetized ratings process that incorporates business risk exposure into the prioritization of CIRP projects at wastewater plants and pump stations. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Purchase and implement software tools necessary to support asset management plan that incorporates the monetized ratings process for the District’s linear assets. Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Ensure that Asset Management is incorporated into CIRP and annual budget process. 26 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 5: ADDRESS CUSTOMER AND REGULATORY NEEDS THROUGH A COMPREHENSIVE INFRASTRUCTURE MANAGEMENT PROGRAM Objective 4: ENHANCE RELIABILITY OF INFORMATION TECHNOLOGY INFRASTRUCTURE Annual Support Activities a) Strategically leverage Information Technology to sustain, protect and foster innovation of the IT Infrastructure and Enterprise Applications that support the District’s critical business operations. b) Continue to enhance and sustain the Technology Security Risk Program. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Continue the development and implementation of the IT Disaster Recovery Strategy which includes Critical Tier 1 business systems and associated infrastructure that support the District’s critical operations (Maximo, EBS,GIS). Q1, FY 2022 Q2, FY 2022 Complete the development of the Technology Security Risk Program through the introduction of additional governance processes, policies, and an employee security awareness program to further protect MSD hardware/software/information assets. Q1, FY 2022 Q2, FY 2022 Continue to develop a Master Data Management (MDM) Program Strategy and associated technical infrastructure to centralize, manage and govern enterprise data (Customer, Address Parcel Owner, lateral and horizontal assets). Q1, FY 2022 Q3, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Implement Master Data Management Program. Continue to enhance Master Data Management Program and extend capabilities to enhancing customer digital experience. 27 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 5: ADDRESS CUSTOMER AND REGULATORY NEEDS THROUGH A COMPREHENSIVE INFRASTRUCTURE MANAGEMENT PROGRAM Objective 5: IMPLEMENT TECHNOLOGIES AND DATA DRIVEN SOLUTIONS TO REDUCE CAPITAL COSTS AND INCREASE UTILITY PERFORMANCE Annual Support Activities a) Engage a Wet Weather Optimization Team to continually evaluate new technology for cost savings and operational efficiencies. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Develop Wet Weather Optimization Plan for Lemay Service Area. Q1, FY 2022 Q4, FY 2022 Design SCADA system upgrade. Q1, FY 2022 Q4, FY 2022 Plan Wet Weather Operational Structure for Organization. Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Execute Wet Weather Optimization Plan for Lemay Service Area. Complete Wet Weather Optimization Plan for Lemay Service Area. Execute SCADA system upgrade. Complete SCADA system upgrade. Implement Wet Weather Operational Structure for Organization. Evaluate additional Service Areas for Wet Weather Optimization opportunities. Finalize CIRP based on Wet Weather Optimization Plan for Lemay Service Area. 28 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 6: CREATE A LEARNING AND BUSINESS-ORIENTED CULTURE BASED ON COMPETENCY AND ACCOUNTABLILITY Objective 1: INCREASE ORGANIZATIONAL PERFORMANCE THROUGH IMPROVED COMMUNICATIONS Annual Support Activities a) Conduct onboarding and orientation training for new employees. b) Facilitate annual compliance training for employees. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Work with departments to identify mandatory compliance training to be administered during the first 90 days of employment. Q1, FY 2022 Q3, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Complete and establish mandatory compliance training for all employees. Training will include employee workplace safety protocols and professional development. Review metrics of annual compliance training for all employees to ensure goals are met and make revisions as necessary. Develop department specific onboarding training for new hires and newly promoted employees. 29 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 6: CREATE A LEARNING AND BUSINESS-ORIENTED CULTURE BASED ON COMPETENCY AND ACCOUNTABLILITY Objective 2: IMPROVE ORGANIZATIONAL EFFECTIVENESS THROUGH LEADERSHIP DEVELOPMENT AND SUCCESSION MANAGEMENT Annual Support Activities a) Provide external and internal training opportunities to support leadership goals. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Identify key positions that may be at risk of vacancy within the next 3-5 years and then assess the knowledge, skills, and abilities needed to support business continuity. Q1, FY 2022 Q4, FY 2022 Establish a compensation study to determine pay and benefits for employees. Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Present Leadership Development and Succession Management initiative to the Department Directors and Board for necessary approvals. Implement the initiative within Human Resources processes and efforts to attract, retain, develop, and sustain high quality employees. Establish a compensation plan aligned to the District’s business goals. Continuously plan, support, and measure the development progress of existing and emerging leaders for future vacancies within the organization. Establish compensation resources on where to compete, how competitive we need to be and what we choose to enhance in salaries and benefits. 30 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 6: CREATE A LEARNING AND BUSINESS-ORIENTED CULTURE BASED ON COMPETENCY AND ACCOUNTABLILITY Objective 3: INCREASE INDIVIDUAL ACCOUNTABILITY AND JOB SATISFACTION THROUGH CONTINUAL PERFORMANCE COACHING AND TRAINING Annual Support Activities a) Design and develop training programs to support improved performance outcomes. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Develop a training course on Writing Effective Performance Improvement Plans and Impact of Changed Behavior, outlining in detail any issues or behaviors causing problems, corrective actions to take, and resources available to offer support. Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024- 2026 Implement Writing Effective Performance Improvement Plans and Impact of Changed Behavior Training Program as a pilot course to managers and then offer as a scheduled classroom and online course. Follow up with managers in 30–90 days to assess the impact of Effective Performance Improvement Plans and Impact of Changed Behavior as a practical application tool. Establish a fair and consistent document to help employees understand their current challenges and long-term goals and to take an active role in supporting them. Equip managers with a consistent tool to administer all employee performance improvement plans by providing guidelines throughout the process. 31 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 6: CREATE A LEARNING AND BUSINESS-ORIENTED CULTURE BASED ON COMPETENCY AND ACCOUNTABLILITY Objective 4: RESTRUCTURE A RECRUITMENT STRATEGY THAT PROMOTES AND RETAINS A TALENTED AND DIVERSIFIED WORKFORCE Annual Support Activities a) Leverage recruitment sources and various referral systems for support with MSD job openings and vacancies. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Conduct department specific focus groups to discuss their experiences, gather input related to current processes, and identify areas for improvement. Q1, FY 2022 Q4, FY 2022 Re-evaluate and assess the process of recruiting and hiring to secure the right people with the right skill sets needed for the organization’s business. Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Establish an internal recruitment process with diverse high-quality candidates within the organization who can be cross trained to fill specific position gaps. Increase opportunities to develop more internal trainee and apprenticeship programs in key areas that are difficult to fill from the outside (due to competitors or other factors). Develop different recruitment approaches and methods of hiring for specific positions within the organization, through “Internal” job fairs, and more focused competency criteria methods for screening specific applicants for advanced selection of qualified applicants. 32 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 6: CREATE A LEARNING AND BUSINESS-ORIENTED CULTURE BASED ON COMPETENCY AND ACCOUNTABLILITY Objective 5: “SHOW ME MSD” – BUSINESS PARTNERSHIP TO MEET THE NEEDS OF THE COMMUNITIES THAT SUPPORT THEM Annual Support Activities a) Attend job fairs at colleges and agencies to assist in obtaining qualified and diverse applicants for open positions. b) Recruit qualified interns for open positions. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Develop a school and business collaboration plan for a mentorship program focused on diverse students who have an interest in STEM careers. Q1, FY 2022 Q1, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Establish mentorship program focused on diverse students who have an interest in STEM careers. Recruit non-traditional students who may be interested in the ERTC scholarship and/or other apprenticeship or internship programs. Establish an externship for teachers to spend time at the “District” to learn through direct experience about skill requirements and opportunities related to classroom subjects that will enhance their teaching abilities and relevance to students learning. Recruit teachers interested in an externship partnership with “MSD” professionals to develop enhanced teaching approaches to “real-life” occupations. 33 | Page METROPOLITAN ST. LOUIS SEWER DISTRICT STRATEGY 6: CREATE A LEARNING AND BUSINESS-ORIENTED CULTURE BASED ON COMPETENCY AND ACCOUNTABLILITY Objective 6 IIMPLEMENT SAFETY AND SECURITY TRAINING TO SUPPORT TRAINING TO SUPPORT A SAFE WORK ENVIRONMENT. Annual Support Activities a) Provide Annual Safety and Disaster Training Employees. b) Review Safety Communication and Training Protocols. Milestones Year 1: 2022 Initiation Timeframe Completion Timeframe Assess security monitoring and access issues in the field and at all facilities. Q1, FY 2022 Q4, FY 2022 Identify gaps in security, safety and incident response and reporting. Q1, FY 2022 Q4, FY 2022 Milestones Year 2: 2023 Milestones Years 3 - 5: 2024 - 2026 Develop plans to address gaps in security, safety and incident response and reporting. Execute plans to address any security monitoring, safety, as well as incident response and reporting. This may include implementing additional security measures and added security personnel. Identify plans and systems required to properly support safe work environment. Measure success of implemented processes and systems required to properly support safe work environment.