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HomeMy Public PortalAboutStrategic Business and Operating Plan FY 2025-2029 Strategic Business and Operating Plan Fiscal Years 2025-2029 METROPOLITAN ST. LOUIS SEWER DISTRICT 2 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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 M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGIC BUSINESS AND OPERATING PLAN The Fiscal Year (FY) 2024 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 2024 goals may appear similar to the original set of goals, the underlying refinements and changes in these goals are significant. The FY 2024 SBOP is easily understood, the goals and resulting strategies are actionable, and the impact of the strategies is measurable. Additionally, the FY 2024 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 2024 SBOP proposes six business-focused strategies: Strategy 1: Inform, educate and partner to build stakeholder understanding. An active dialogue between the District and stakeholders is essential to a mutual understanding of the St. Louis region’s needs. Our education and outreach efforts will focus on communicating the District’s initiatives and how they will help achieve the goals that serve our greater mission. Understanding communication is a two-way street, we will actively engage stakeholder groups and customers to achieve a better understanding of their needs and concerns, and how we can best address those while meeting our commitments and carrying out our mission to protect the public’s health, safety, and the water environment. 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. 4 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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. 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 2025 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 2025 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: 5 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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 6 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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: 2025 Initiation Timeframe Completion Timeframe Execute communication plan for results of wastewater bond election in April 2024. Q4, FY 2024 Q1, FY 2025 Execute communication plan for results of stormwater election in April 2024 and specific deliverables for Stormwater Capital Program. Q4, FY 2024 Q2, FY 2026 Develop a robust communications plan around the overall Green Infrastructure (Rainscaping) Program. Q3, FY 2025 Q4, FY 2025 Evaluate advertising, community events, stakeholder engagement, and project communications programs. Q1, FY 2025 Q4, FY 2025 Develop plan to prepare stakeholders for upcoming major projects starting with Lower Middle River Des Peres Tunnel. Q1, FY 2025 Q4, FY 2025 7 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGY 1: INFORM, EDUCATE AND PARTNER TO BUILD STAKEHOLDER UNDERSTANDING Objective 1: EXECUTE COMMUNITY OUTREACH PROGRAMS AND ENGAGEMENT PROGRAMS Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 – 2029 Implement plan to prepare stakeholders for upcoming major projects starting with Lower Middle River Des Peres Tunnel. Continue education and outreach activities among key stakeholders and community partners to advance public understanding and awareness of MSD’s roles and initiatives in improving the environmental quality within MSD’s service area. Evaluate program outcomes and revise activities as needed. Implement improvements to advertising, community events, stakeholder engagement, and project communication programs. Continue to support initiatives around the recruiting and onboarding process with employees. Implement Green Infrastructure (Rainscaping) Communications Plan. Evaluate leveraging 75th anniversary in 2029 to further our mission and public education goals. Plan for and implement activities and engagement stakeholders on the Wastewater Rate Commission process. 8 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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: 2025 Initiation Timeframe Completion Timeframe Execute plan to engage government partners on stormwater funding situation (municipal grants if stormwater is approved, alternative avenues for funding if stormwater fails). Q4, FY 2024 Q2, FY 2026 Develop plan to prepare government partners for upcoming major projects starting with Lower Middles River Des Peres Tunnel. Q1, FY 2025 Q4, FY 2025 Evaluate municipal engagement plan and consider new programs such as Sewer Academy or standing municipal engagement meetings. Q3, FY 2025 Q4, FY 2025 Execute communication plan for results of wastewater bond election in April 2024. Q4, FY 2024 Q1, FY 2025 9 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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: 2026 Milestones Years 3 - 5: 2027 – 2029 Develop a plan to engage Stakeholder groups around Stormwater Grant Program. Continue to engage elected officials to help build their understanding and awareness of MSD’s roles and initiatives in improving the environmental quality within their communities. Execute plan to prepare government partners for upcoming major projects starting with Lower Middles River Des Peres Tunnel. Execute a plan to engage Stakeholder groups around Stormwater Grant Program. Continue education and engagement around stormwater funding situation (municipal grants if stormwater is approved, lack of funding if stormwater fails). Plan for an implement engagement with elected representatives and government stakeholders on Wastewater Rate Commission process. Execute any revisions to municipal engagement plan such as Sewer Academy or standing municipal engagement meetings. 10 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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: 2025 Initiation Timeframe Completion Timeframe Continue collaboration and outreach with area youth programs focused on early development of construction industry workers and STEM to increase opportunities for hiring low income, unemployed and underemployed individuals for District projects. Q1, FY 2025 Q4, FY 2025 Implementation and transition of Diversity Reporting software for tracking and reporting on Diversity Programs. Q1, FY 2025 Q3, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 – 2029 Consider expanding Workforce Development Grant opportunities. Consider whether to include the impact of the utilization of other classes of disadvantaged individuals prior to the execution of the next Disparity Study. Evaluate need to select a consultant in late FY2028 to perform a new Disparity Study. 11 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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: 2025 Initiation Timeframe Completion Timeframe Continue discussions with Board of Trustees and other parties regarding the implementation of a pilot water shut-off program for commercial customers. Q1, FY 2025 Q4, FY 2025 Review delinquent account collection process and document process changes in anticipation of future upgrade or replacement of CIS. Q1, FY 2025 Q4, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Implement commercial shut off program and calculate cost savings of shut-off program. Begin discussions with Board on the results of the commercial pilot program. Continue implementation of process improvements relating to the shut-off program and begin implementation of a residential shut-off program. 12 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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. b) Evaluate & implement processes that could potentially be automated. Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Evaluate results of integrated payables and adjust as necessary. Q1, FY 2025 Q4, FY 2025 Continue to evaluate non-traditional benefits. Q1, FY 2025 Q4, FY 2025 Implement p-card program for small dollar purchases Q1, FY 2025 Q4, FY 2025 Evaluate any changes needed to the Wellness Program. Q1, FY 2025 Q4, FY 2025 Conduct assessment of worker’s compensation program and evaluate strategies for reducing cost. Q1, FY 2025 Q4, FY 2025 Evaluate implementation of Vertex’s ECIS Customer Portal module to improve customer self-service options and payment methods. Q2, FY 2024 Q4, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Evaluate results of worker’s compensation program assessment and if applicable, implement changes Evaluate p-card program and adjust as necessary. If applicable, complete implementation of Vertex’s ECIS Customer Portal module. 13 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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: 2025 Initiation Timeframe Completion Timeframe Implement remaining Board approved rates resulting from the 2023 Wastewater Rate Commission Proposal. Q1, FY 2025 Q1, FY 2025 If approved by voters, implement new impervious stormwater fee for non-residential customers. Q1, FY 2025 Q2, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2026 - 2028 Implement Board approved wastewater Rate Commission recommendations. Implement Board approved wastewater Rate Commission recommendations. If approved by voters, implement the ad valorem stormwater capital tax for residential customers. 14 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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 Information Governance (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 (RRS). d) Continue to monitor changes in technology in general for best solutions and smart implementation strategy leveraging automated IG compliance and reducing user impact. e) Continue to monitor regulatory changes and adjust the IG Program objective and milestones. Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Implement data analysis solution for stale or sensitive data and Data Loss Prevention (DLP). Q1, FY 2025 Q4, FY 2025 Continue implementation of Office 365 (O365) Governance (Teams, SharePoint, Email) with expert services. Q1, FY 2025 Q4, FY 2025 Develop and implement an IG audit plan. Q1, FY 2025 Q4, FY 2025 Issue Request for Proposal (RFP) for Enterprise Content Management (ECM) solution, if necessary. Q1, FY 2025 Q4, FY 2025 Implement Electronic Signature (E-Signature) Policy. Q1, FY 2025 Q4, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Select ECM solution, if necessary. Begin implementation of ECM solution, if necessary. Explore technology available for automated IG user assistance. Implement technology for automated IG user assistance. Continue implementation of O365 Governance (Teams, SharePoint, Email), with expert services. Continue implementation of O365 Governance (Teams, SharePoint, Email), with expert services. Continue to use data analysis solution for stale or sensitive data and DLP. 15 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS Objective 2: INTEGRATE CAPITAL ASSET INFORMATION ACROSS SYSTEMS (ORACLE, MAXIMO, AND GIS) Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Resolve gaps and discrepancies between GIS (system of record for Collection System linear capital assets) and Oracle (system of record for financial data) for pre-Oracle EBS Go Live capital assets. Q2, FY 2025 Q3, FY 2025 Implement a process to ensure continuous reconciliation for linear assets. Q2, FY 2025 Q3, FY 2025 Determine requirements and strategy for reconciliation of assets between Maximo (system of record for Treatment Plant and Pump Station nonlinear capital assets) and Oracle Fusion (system of record for financial data). Q3, FY 2025 Q4, FY 2025 Determine requirements for implementing a process to ensure continuous reconciliation for nonlinear assets. Q3, FY 2025 Q4, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Resolve gaps and discrepancies between Maximo (system of record for nonlinear capital assets) and Oracle (system of record for financial data) capital assets. Implement a process to ensure continuous reconciliation for nonlinear assets. 16 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS Objective 3: MOBILE TECHNOLOGY STRATEGY Annual Support Activities a) Continue support of mobile technology at MSD and refresh mobile devices as technology capabilities expand. b) Continue to maintain and support the Virtual Desktop Technology Infrastructure (VDI) for BYOD technology implementation. c) Continue evaluation and implementation of mobile solutions (cellular enabled) for inspections of district assets on tablets and other mobile devices. i.e., Maximo Mobile, or other solution. Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Continue assessment of cost benefits for Bring your Own Device (BYOD) strategy and scope (mobile apps, etc.) for employees (based upon mgmt. level etc.), contractors, and business partners with consideration for Security, Information Governance and Personal records. Q1, FY 2025 Q3, FY 2025 Evaluate opportunities for utilizing mobile technology for MSD maintenance vehicles (hotspot, MiFi and GPS consolidation and gate security access automation). Q2, FY 2025 Q3, FY 2025 Explore use of small, unmanned aircraft systems technology to support MSD inspection activities. Q1, FY 2025 Q4, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Implement combined hotspot, MiFi and GPS solution for District maintenance vehicles. Continue to identify and leverage mobile technology to improve district business processes. Implementation security integration technology between facility gates and MSD maintenance vehicles. Explore integration GPS enabled mobile asset maintenance technology into SCADA and DCS systems. i.e., Pump Stations, Plant maintenance technicians. Proof of concept use of small, unmanned aircraft systems technology. Begin implementation of small, unmanned aircraft systems technology. Implement an MSD mobile application for Billing, Project Updates, Incident Reporting. Monitor and enhance MSD Mobile application based upon rate payer feedback. 17 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS Objective 4: CIS SYSTEM REPLACEMENT Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Create RFP for replacement of existing CIS system. Develop high level requirements for new or upgraded CIS system, considering other SBOP initiatives (i.e., stormwater impervious fee, shut off and Customer Assistance Program). Q1, FY 2025 Q2, FY 2025 Bid and award contract for replacement or upgrade of CIS system. Q2, FY 2025 Q4, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Bid and award contract for Implementation Partner and related services, if applicable. Develop and deliver training to Finance and Billing Call Center users, and third-party partners. Develop detailed requirements and Statement of Work (SOW) for new or upgraded CIS system. Migrate to new system. Evaluate process and customer self-service optimization opportunities. Provide post migration support activities. Evaluate integration providers (bill and letter print, payment processing, Billing Call Center). Develop strategy for historical record retention based upon information governance retention schedules. 18 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS Objective 5: MAXIMO SYSTEM UPGRADE Annual Support Activities a) Continue change management, notification to users. b) Continue modernization of integrated CCTV and mobile apps to support future MAS8 implementation. c) Continue to work with Operations management to promote asset management practices. d) Continue to employ scripting and app design to ensure data integrity. Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Implement licensing changes to accommodate app point. Q1, FY 2025 Q1, FY 2025 Implement Maximo Application Suite in production integrated environment and review business processes. Q1, FY 2025 Q4, FY 2025 Develop and deliver training for Operations staff. Q4, FY2025 Q4, FY2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Provide post-production support. Implement enhanced functionality available in MAS8, e.g.: Predictive Maintenance. Gather requirements for enhanced functionality available in MAS8, e.g.: Predictive Maintenance. 19 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGY 3: INTEGRATE AND IMPROVE THE DISTRICT’S BUSINESS PROCESS Objective 6: IDENTIFY OPPORTUNITIES FOR UTILIZING ARTIFICIAL INTELLIGENCE (AI) AND MACHINE LEARNING (ML) TO IMPROVE THE EFFICIENCY AND EFFECTIVENESS OF THE DISTRICTS PROCESSES AND RATE PAYERS EXPERIENCE Annual Support Activities a) Develop Information Technology staff skills in process improvement methodologies and emerging technological innovations for use in optimizing the District’s critical business processes. Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Identify sources of rate payer dissatisfaction and assess the benefit of utilizing AI- powered chatbots for providing enhanced Customer Support through multiple communication mediums such as, voice (call routing), web (incident reporting, FAQ’s), and an MSD mobile application. Q1, FY 2025 Q2, FY 2025 Explore use of using AI/ML process control and data analytics for Distributed Control Systems (DCS) & Supervisory Control and Data Access (SCADA) systems. Q3, FY 2025 Q4, FY 2025 Identify critical business processes where robotic process automation (RPO), Process Mining, Chat AI, or Lean Six Sigma methods to optimize and improve results. Q1, FY2025 Q4, FY2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Implement AI chatbots for Project Clear website to provide standard question and answer FAQs, incident reporting, project updates. Monitor and enhance chatbot experience. Implement an MSD mobile application based upon benefit assessment in Milestone Year 1. Monitor and enhance MSD Mobile application based upon rate payer feedback. Implement critical business process improvement projects. Continue to evaluate and leverage trending technology advances to optimize critical business processes. 20 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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, PFAS, 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, including environmental justice and climate resiliency. Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Continue to participate in Missouri-led stakeholder meetings on nutrient reduction strategies and nutrient trading. Q1, FY 2025 Q4, FY 2025 Participate in Missouri and national-led stakeholder meetings regarding monitoring and regulation of PFAS in wastewater effluent and biosolids. Q1, FY 2025 Q4, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Continue to participate in Missouri-led stakeholder meetings on nutrient reduction strategies and nutrient trading. Continue to participate in Missouri-led stakeholder meetings on nutrient reduction strategies and nutrient trading. Continue to participate in Missouri and national-led stakeholder meetings regarding monitoring and regulation of PFAS in wastewater effluent and biosolids. Continue to participate in Missouri and national-led stakeholder meetings regarding monitoring and regulation of PFAS in wastewater effluent and biosolids. Implement the stakeholder process for submitting a Municipal Separate Storm Sewer System (MS4) application and Stormwater Management Plan. Participate in Missouri-led stakeholder meetings on Clean Water Act permit fees and advocate for equitable fee structure. 21 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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 emerging contaminants, PFAS, greenhouse gases (GHG), cyber security, and the availability of state & federal funding. b) Advocate for reasonable, affordable, and consistent air and water permit requirements for all of MSD’s facilities. c) Work with MDNR as required to develop scientifically based Total Maximum Daily Loads (TMDLs) and/or watershed plans with reasonable implementation plans for the St. Louis area. d) 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: 2025 Initiation Timeframe Completion Timeframe Advocate for reasonable and affordable policy and regulations affecting available State and Federal infrastructure funding. Q1, FY 2025 Q4, FY 2025 Advocate for regulations and policies that promote environmental justice through infrastructure investment. Q1, FY 2025 Q4, FY 2025 Monitor for statutory or regulatory changes to the definitions of “Waters of the U.S.” and “Waters of the State”, in response to recent Supreme Court rulings. Q1, FY 2025 Q4, FY 2025 Track legislation and regulations that would impact MSD’s ability to fund eligible green energy projects covered by the Inflation Reduction Act. Q1, FY 2025 Q2, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 – 2029 Continue to monitor for statutory or regulatory changes to the definitions of “Waters of the U.S.” and “Waters of the State”, in response to recent Supreme Court rulings. Continue to monitor for statutory or regulatory changes to the definitions of “Waters of the U.S.” and “Waters of the State”, in response to recent Supreme Court rulings. Continue to advocate for reasonable and affordable policy and regulations affecting available State and Federal infrastructure funding. Continue to advocate for reasonable and affordable policy and regulations affecting available State and Federal infrastructure funding. Continue to advocate for regulations and policies that promote environmental justice through infrastructure investment. Continue to advocate for regulations and policies that promote environmental justice through infrastructure investment. 22 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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: 2025 Initiation Timeframe Completion Timeframe Implement FY 2025 stormwater CIRP program based on funds generated from OMCI taxes to address flooding and erosion. Q1, FY 2025 Q4, FY 2025 Administer OMCI Municipal Grant Program with funding from OMCI taxes to address the needs of the municipalities' served by the OMCI’s. Q1, FY 2025 Q4, FY 2025 Initiate implementation of FY 2025 stormwater CIRP to address flooding and erosion based on District Rate proposal and April 2024 election outcome. Including municipal grant program and Environmental Justice project commitments. Q3, FY 2025 Q4, FY 2025 Continue Design and Construction of projects receiving grant funding from ARPA (American Rescue Plan), coordinating efforts with Missouri Department of Natural Resources. Q1, FY 2025 Q4, FY 2025 Initiate discussions with municipal stakeholders (i.e., St Louis Municipal League) on the spending of District-wide stormwater funding to address regional priorities. Q1, FY 2025 Q4, FY 2025 Initiate review of MSD Stormwater Regulations and Design Requirements impacted by Climate Change. Q1, FY 2025 Q4, FY 2025 23 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGY 5: ADDRESS CUSTOMER AND REGULATORY NEEDS THROUGH A COMPREHENSIVE INFRASTRUCTURE MANAGEMENT PROGRAM Objective 1: IMPLEMENT STORMWATER OPERATING AND CAPITAL IMPROVEMENT PROGRAM Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Continue implementation of Stormwater CIRP to address flooding and erosion based on results of April 2024 election and revenues received. Implement stormwater program commensurate with anticipated stormwater revenues. Initiate spenddown of stormwater CIRP OMCI taxes to address flooding and erosion, assuming favorable April 2024 election results. Complete revisions of MSD Stormwater Regulations and Design Requirements impacted by Climate Change and inform stakeholders on potential changes and implementation schedule. Determine disposition of OMCI taxes as part of Districtwide Rate Proposal and discussions with MSD Board and municipal stakeholders. Finalize discussions and implement plan with municipal stakeholders (i.e., St Louis Municipal League) on the spending of District-wide stormwater funding to address regional priorities. Complete Design and Construction of projects receiving grant funding from ARPA (American Rescue Plan). Continue review of MSD Stormwater Regulations and Design Requirements impacted by Climate Change, and initiate discussions with stakeholders on potential changes. 24 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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 and Cityshed projects program; adjust program as needed. d) Evaluate flow metering 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: 2025 Initiation Timeframe Completion Timeframe Implement Wastewater CIRP to comply with Consent Decree and Asset Management needs based on approved District Rate proposal. Q1, FY 2025 Q4, FY 2025 Initiate a comprehensive evaluation of CSO Volume Reduction Green Infrastructure and Cityshed Programs for program compliance and future CIRP programming. Adjust programs as needed to meet Program goals and compliance requirements. Q1, FY 2025 Q4, FY 2025 Implement a communication strategy to update the MSD Board on major project initiatives. Q1, FY 2025 Q4, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Initiate planning and staffing for commissioning of new Fluidized Bed Incineration facilities at Bissel and Lemay WWTPs. Finalize planning and staffing for commissioning of new Fluidized Bed Incineration facilities at Bissel and Lemay WWTPs. Commissioning of new nutrient control facilities at various WWTPs. Conduct quarterly meetings with Engineering and General Counsel staff to monitor and adjust projects in order to ensure compliance with the Consent Decree performance measure for elimination of Constructed Sanitary Sewer Overflows by the end of calendar 2028. 25 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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: 2025 Initiation Timeframe Completion Timeframe Implement software tools necessary to support asset management plan that incorporates the monetized ratings process for the District’s linear assets. Q1, FY 2025 Q4, FY 2025 Initiate evaluation of risks and results of monetized prioritization process at wastewater plants and pump stations. Make necessary adjustments. Q3, FY 2025 Q4, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Ensure that Asset Management is incorporated into CIRP and annual budget process. 26 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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 District’s Security and Risk management Programs. c) Exercise the IT Disaster Recovery plan bi-annually which includes Critical Tier 1 business systems and associated infrastructure that support the District’s critical operations (Maximo, EBS, GIS). Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Develop the Master Data Management (MDM) Program Strategy for Customer data. Implement the technical infrastructure to centralize, manage and govern critical customer information. Improve accuracy and integrity to enable customer insights and analytics. Q1, FY 2025 Q4, FY 2025 Implement a Software Defined Wide Area Network (SDWAN) Improve the District’s plant, yard, and pump station network infrastructure availability by implementing Software Defined Network technology (SDWAN) to enable direct internet access to cloud-based applications, redundancy of ISPs network services and redundancy of network routers. Q1, FY 2025 Q4, FY 2025 Design Disaster Recovery for Supervisory Control and Data Acquisition (SCADA) systems at MSD Pump Stations. Gather requirements for implementation of a disaster recovery site for the Supervisory Control and Data Acquisition (SCADA) server infrastructure. Q3, FY 2025 Q4, FY 2025 Design Disaster Recovery for Distributed Control Systems (DCS) systems at MSD Treatment Plants. Gather requirements for implementation of a disaster recovery site for the District’s Distributed Control System (DCS) server infrastructure. Q3, FY 2025 Q4, FY 2025 27 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGY 5: ADDRESS CUSTOMER AND REGULATORY NEEDS THROUGH A COMPREHENSIVE INFRASTRUCTURE MANAGEMENT PROGRAM Objective 4: ENHANCE RELIABILITY OF INFORMATION TECHNOLOGY INFRASTRUCTURE Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Implement Master Data Management infrastructure and technology and integrate with ECIS, Maximo and GIS. Continue to enhance Master Data Management Program and extend capabilities to enhancing customer digital experience. Continue to implement, refine, and monitor SDWAN technology to improve network availability and resiliency for the District’s Plant, Yard and Pump stations. Continue to monitor SDWAN solution to ensure desired network redundancy and services are meeting stated goals. Implement SCADA Disaster Recovery solution. Begin testing of SCADA DR solution to ensure it is meeting stated goals. Review and enhance SCADA disaster recovery solution and conduct bi- annual testing to ensure systems are functional. Implement DCS Disaster Recovery solution. Begin testing of DCS DR solution to ensure it is meeting stated goals. Review and enhance DCS disaster recovery solution and conduct bi-annual testing to ensure systems are functional. 28 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T 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 (JEFF) Annual Support Activities a) Engage a Wet Weather Optimization Team to continually evaluate new technology for cost savings and operational efficiencies. b) Provide staffing necessary to operate and maintain the Wet Weather Optimization Program. Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Begin Wet Weather Optimization of Lemay Service Area. Q1, FY 2025 Q4, FY 2025 Continue SCADA system upgrade for pump stations and remote facilities. Q1, FY 2025 Q4, FY 2025 Implement Wet Weather Operational Structure for Organization. Q1, FY 2025 Q4, FY 2025 Finalize CIRP based on Wet Weather Optimization Plan for Lemay Service Area. Q1, FY 2025 Q4, FY 2025 Initiate planning and needs assessment for WWTP DCS System upgrade. Q1, FY 2025 Q4, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Continue Wet Weather Optimization of Lemay Service Area, and incorporate new facilities into network. Continue Wet Weather Optimization of Lemay Service Area and incorporate new facilities into network. Continue SCADA system upgrade for pump stations and remote facilities. Complete SCADA system upgrade for pump stations and remote facilities. Evaluate additional Service Areas for Wet Weather Optimization opportunities. Evaluate additional Service Areas for Wet Weather Optimization opportunities. 29 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGY 6: CREATE A LEARNING AND BUSINESS-ORIENTED CULTURE BASED ON COMPETENCY AND ACCOUNTABLILITY Objective 1: IMPROVE ORGANIZATIONAL EFFECTIVENESS THROUGH LEADERSHIP DEVELOPMENT Annual Support Activities a) Conduct SWOT analysis to assess department specific onboarding needs. b) Conduct focus group meetings with management to evaluate opportunities for leadership development. Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Present leadership Development & Succession Management initiative to Department Directors. Q1, FY 2025 Q2, FY 2025 Identify gaps and assess leadership onboarding needs for staff including Operations Team Leads. Q1, FY2025 Q2, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Develop department specific onboarding training for new hires and newly promoted employees. Re-evaluate department specific onboarding training for new hires and newly promoted employees. Implement department specific onboarding training for new hires and newly promoted employees. 30 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGY 6: CREATE A LEARNING AND BUSINESS-ORIENTED CULTURE BASED ON COMPETENCY AND ACCOUNTABLILITY Objective 2: INCREASE INDIVIDUAL ACCOUNTABILITY AND JOB SATISFACTION THROUGH CONTINUAL PERFORMANCE COACHING AND TRAINING Annual Support Activities a) Design and develop performance management training programs for managers and employees. b) Design job satisfaction survey based on employee best practices. Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Develop and distribute new hire survey at the 90- and 180-day point. Q1, FY 2025 Q3, FY 2025 Evaluate current exit interview questions and process. Auto-schedule exit interviews based on Oracle termination process. Q1, FY 2025 Q2, FY 2025 Evaluate job descriptions to ensure main duties are accurately reflected in performance objectives. Q1, FY 2025 Q4, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 - 2029 Evaluate satisfaction survey results and identify key areas for improvement. Measure improvement in key areas and present results to senior management. Develop improvement plan based on exit interview data. 31 | Page M E T RO PO LIT A N ST . LO UI S SEW E R D I ST RI C T STRATEGY 6: CREATE A LEARNING AND BUSINESS-ORIENTED CULTURE BASED ON COMPETENCY AND ACCOUNTABLILITY Objective 3: INCREASE EMPLOYEE SATISFACTION THROUGH TRAINING AND FAIR COMPENSATION Annual Support Activities a) Design and develop training programs to support improved performance outcomes. b) Complete compensation study to ensure positions are compensated at fair market values. Milestones Year 1: 2025 Initiation Timeframe Completion Timeframe Create and deliver training courses for the enhanced Performance Management module of the Human Resources Information Management (HRIS) software. Q1, FY 2025 Q3, FY 2025 Create and deliver training courses for the enhanced Payroll Processing module of the new Payroll processing system. Q1, FY 2025 Q3, FY 2025 Complete compensation negotiations to ensure positions are compensated at fair market values. Q1, FY 2025 Q3, FY 2025 Milestones Year 2: 2026 Milestones Years 3 - 5: 2027 – 2029 Establish compensation resources on where to compete, how competitive we need to be and what we choose to enhance in salaries and benefits. Continuous review to make sure all managers are trained on effective performance management processes.