FY 24-26 Raleigh Water Business Plan

FY24-26 Departmental Business Plan

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Director ’ s Message

Raleigh Water, also known as the City of Raleigh Public Utilities department, is an award-winning regional utility that provides drinking water, sanitary sewer, and reuse water services to Raleigh and six neighboring towns: Garner, Knightdale, Rolesville, Wake Forest, Wendell, and Zebulon. As a regional utility, we are tasked with operating and managing the system, and planning for the growth of the entire service area.

Our Business Plan is built around five intended outcomes:

▪ EMPLOYEE LEADERSHIP AND DEVELOPMENT - Recruit, develop, and retain a diverse competent, safety-focused workforce and invest in opportunities for professional and leadership development, considering the differing needs and expectations of our workforce.

▪ ENTERPRISE RESILIENCY - Actively anticipate and respond to the risks affecting resources, systems, and operations as well as seek ongoing performance improvements to deliver quality services, ensure business continuity, and reduce environmental impacts. ▪ INFRASTRUCTURE STRATEGY AND PERFORMANCE - Maintain and enhance assets over the long-term by planning for equitable and inclusive infrastructure improvements and investments consistent with community needs, anticipated growth, and system reliability. ▪ PRODUCT QUALITY - Provide reliable, responsive, and professional services and products that meet or exceed regulatory compliance and customer needs. ▪ STAKEHOLDER UNDERSTANDING AND SUPPORT - Actively inform and involve customers and other stakeholders to promote an appreciation of the value and life cycle of water and the services provided by the Utility. Each of these intended outcomes is based on the Ten Attributes included in the Effective Utility Management Framework, which was developed through a partnership between the Environmental Protection Agency and six national water and wastewater associations such as the American Water Works Association and the Water Environment Federation. Intended outcomes allow us to translate our vision into actionable initiatives that align with the Citywide Strategic Plan and focus our work and resource alignment. The initiatives included in our business plan reflect the work our department will carry out to address areas of concern and to continuously improve our performance, including addressing our aging water and sewer assets; meeting and exceeding new regulatory requirements; making Raleigh Water an employer of choice; and improving customer service practices. Initiatives also allude to major city-level projects Raleigh Water supports, including the refinement of our policies and standard operating procedures; the increased focus on promoting diversity, equity, and inclusion; and the implementation of tools and strategies that foster communication and engagement with residents/customers. To ensure that we are achieving quality results and holding ourselves accountable for our results, we will continue to rely on performance measures as well as our Departmental and Divisional Management Review meetings. Performance measures will allow us to trend out performance. Management Review meetings will give us an avenue to formally review our progress in accomplishing initiative milestones and allocate resources to initiatives that generate the outcomes we care most about. Through the dedication and hard work of our staff, I have no doubt we will be able to make our Utility a better, more efficient organization that provides world class service to our customers.

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Our Vision We are a world-class leader in sustainable water and wastewater service delivery.

Our Mission Our mission is to provide inclusive, safe, and sustainable water services to our diverse community while equitably protecting public health and contributing to our service area’s economic, environmental, and social vitality.

Our Guiding & Governing Documents ▪ City of Raleigh Strategic Plan ▪ City of Raleigh Comprehensive Plan ▪ Effective Utility Management Principles ▪ Underground Prevention Act ▪

North Carolina Division of Environmental Quality System Permits ▪ Safe Drinking Water and Clean Water Acts ▪ City of Raleigh Public Utilities Handbook & Code

Our Department at a Glance

Raleigh Water

Capital Improvement Projects

Customer Care & Billing

Water Treatment

Water Distribution

Sewer Maintenance

Resource Recovery

Meters

Administration

Our Resources

FY21

FY22

FY23

Budget $248,933,186

$262,227,080

$258,489,504

Full-Time Positions (FTEs) 663

663

677

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Our Departmental PESTLE

POLITICAL

▪ Political 1: Increasing regulatory requirements & scrutiny ▪ Political 2: Addressing emerging contaminants ▪ Political 3: Changes in local leadership

ECONOMIC

▪ Economic 1: Cost & supply of materials, labor, & other goods ▪ Economic 2: Hot job market – hard to fill staff positions ▪ Economic 3: Rate fatigue ▪ Economic 4: Low-income rate structure; affordability ▪ Economic 5: Cost of impact of regulations

SOCIAL

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Social 1: Keeping up w/extreme growth

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Social 2: Government mistrust

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Social 3: Aging workforce Social 4: Focus on equity

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TECHNOLOGICAL

▪ Technological 1: Better integration between systems ▪ Technological 2: Asset management ▪ Technological 3: Cybersecurity

LEGAL

▪ Legal 1: Private systems within our public system ▪ Legal 2: Continuous regulatory changes

ENVIRONMENTAL

▪ Environmental 1: Water supply quality & quantity ▪ Environmental 2: Watershed protection ▪ Environmental 3: Nutrient rule changes ▪ Environmental 4: More stringent sewer & overflow rules ▪ Environmental 5: Lead & copper rule revisions

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Our Departmental SWOT

STRENGTHS

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Strength 1: Resilient Strength 2: Innovative

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Strength 3: Institutional Knowledge Strength 4: Asset Management Program

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Strength 5: Financial Viability Strength 6: Adaptiveness Strength 7: Product Quality

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WEAKNESSES

▪ Weakness 1: Employee retention & recruitment ▪ Weakness 2: External communication/Community engagement opportunities/tools ▪ Weakness 3: Nitrogen allocation needed for wastewater expansion

OPPORTUNITIES

▪ Opportunity 1: Keep working the RUMS system ▪ Opportunity 2: Succession planning & knowledge transfer ▪ Opportunity 3: Refining data collection & use ▪ Opportunity 4: More & better communication ▪ Opportunity 5: Nitrogen: continue to search for allocation ▪ Opportunity 6: Cross connection ▪ Opportunity 7: Regional water supply partnerships ▪ Opportunity 8: Recruitment search ▪ Opportunity 9 : Better collaborate w/City Attorney’s office on emerging legislation ▪ Opportunity 10: Asset data collection ▪ Opportunity 11: Private system takeovers ▪ Opportunity 12: Community engagement tools ▪ Opportunity 13: Web self service capabilities ▪ Opportunity 14: Better understanding of city level activities

THREATS

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Threats 1: Aging infrastructure

▪ Threats 2: State and federal policy and regulatory changes ▪ Threats 3: IT Data Management/Security and Cyber attacks ▪ Threats 4: Emerging contaminants ▪ Threats 5: Executive management team turnover ▪ Threats 6: Supply & cost of materials ▪ Threats 7: Climate change ▪ Threats 8: Lack of capturing historical knowledge

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EMPLOYEE LEADERSHIP AND DEVELOPMENT (ELD) Recruit, develop, and retain a diverse competent, safety-focused workforce and invest in opportunities for professional and leadership development, considering the differing needs and expectations of our workforce.

Performance Measures

Stakeholders: City Manager’s Office ; Communications; Department of Equity and Inclusion; Employees; Human Resources; Information Technology; Office of Community Engagement; Office of Strategy and Innovation; Planning and Development; Vendors and Contractors

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Internal promotion rate

Recordable incidents of injury and accidents Total number of training hours

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Vacancy rate Retention rate

Objective 1. Cultivate a competent, safety focused workforce that is representative of the community we serve

Strategic Alignment: Economic Development & Innovation; Organizational Excellence

▪ Initiative 1.1 - Standardize employee onboarding and offboarding processes and procedures across the Utility (FY22-25) ▪ Initiative 1.2 - Work with the Human Resources department to improve Worker’s Compensation processes and develop light duty options for staff (FY23-26) ▪ Initiative 1.3 - Pilot strategies to reduce and prevent accidents and injuries (FY23-26)

Objective 2. Invest in employee knowledge, skills, and well-being to support our vision to deliver world-class service

Strategic Alignment: Organizational Excellence

▪ Initiative 2.1 - Promote activities that offer professional development opportunities, improve employee morale, and build better teams (FY22-26) ▪ Initiative 2.2 - Refine internal communication processes and better leverage existing communication tools (FY22-25) Objective 3. Foster professional growth opportunities and increase employee involvement in activities that benefit their careers Strategic Alignment: Growth and Natural Resources; Organizational Excellence ▪ Initiative 3.1 - Facilitate opportunities for Utility staff to support the City’s Strategic Plan efforts (FY22-25) ▪ Initiative 3.2 - Establish cross-training opportunities for employees (FY22-24) ▪ Initiative 3.3 Foster opportunities for and increase effectiveness of employee engagement (FY24-26)

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ENTERPRISE RESILIENCY (ER) Actively anticipate and respond to the risks affecting resources, systems, and operations as well as seek ongoing performance improvements to deliver quality services, ensure business continuity, and reduce environmental impacts.

Stakeholders: Budget and Management Services; City Manager’s Office ; Department of Equity and Inclusion; Engineering Services; Employees; Human Resources; Information Technology; Office of Strategy and Innovation; Office of Sustainability; Planning and Development; Solid Waste Services; Transportation; Vendors and Contractors

Performance Measures

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% of biosolids removed versus biosolids removal planned

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% of Fleet preventative maintenance completed

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% of miles of sewer pipe cleaned % of tons of fill (i.e., ABC, 57, spoil, cold patch) disposed of properly

Objective 1. Employ continuous improvement practices to improve operations across the Utility

Strategic Alignment: Economic Development & Innovation; Organizational Excellence

▪ Initiative 1.1 - Update Raleigh Water Policy and Procedures to reflect current practices and establish repeatable processes within the department (FY24-26) ▪ Initiative 1.2 - Coordinate diversity, equity, and inclusion activities to ensure Utility practices are equitable for all (FY22-26) ▪ Initiative 1.3 - Initiate the organization and cleanup of PowerBI Dashboards (FY24-26) ▪ Initiative q.4 - Optimize departmental processes by developing program evaluation and performance management tools and strategies (FY22-26) ▪ Initiative 1.5 - Evaluate Development Review process and identify opportunities to display information in a common GIS data source (FY24-26) Objective 2. Promote efficient and safe management of materials and equipment used in Utility operations Strategic Alignment: Growth & Natural Resources; Organizational Excellence ▪ Initiative 2.1 - Identify options for improving recycling and managing waste (FY22-25) ▪ Initiative 2.2 - Implement and transition to the bioenergy program (FY22-26)

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ENTERPRISE RESILIENCY (ER) - Continued Actively anticipate and respond to the risks affecting resources, systems, and operations as well as seek ongoing performance improvements to deliver quality services, ensure business continuity, and reduce environmental impacts.

Objective 3. Institute environmental and social justice practices that minimize the Utility’s impact on the environmen t, energy consumption, and carbon footprint Strategic Alignment: Growth & Natural Resources; Organizational Excellence; Transportation & Transit ▪ Initiative 3.1 - Track renewable natural gas production and associated energy offset for the bioenergy program (FY23-26)

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INFRASTRUCTURE STRATEGY AND PERFORMANCE (ISP) Maintain and enhance assets over the long-term by planning for equitable and inclusive infrastructure improvements and investments consistent with community needs, anticipated growth, and system reliability.

Stakeholders: Budget and Management Services; City Manager’s Office ; Customers; Department of Equity and Inclusion; Employees; Finances; Information Technology; Office of Strategy and Innovation; Planning and Development; Regulators; Vendors and Contractors

Performance Measures

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% of annual Chlorine conversion project completed % of development plan reviews completed Average daily water consumption Average residential bill cost Meter read estimation rate Total money disbursed by payment assistance programs Total number of water meters set

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Objective 1. Exercise good financial stewardship to fund current and future business needs

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Strategic Alignment: Economic Development & Innovation; Organizational Excellence

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▪ Initiative 1.1 - Expand approaches to secure customer's access to affordable water and wastewater services now and into the future (FY23-26) ▪ Initiative 1.2 – Implement a Raleigh Water Cross Connection Opt- Out Program (FY24-26) Objective 2. Protect and maintain existing assets and enhance operations necessary to ensure system reliability Strategic Alignment: Growth & Natural Resources; Organizational Excellence; Safe, Vibrant, & Healthy Community ▪ Initiative 2.1 - Upgrade infrastructure to improve dam safety and functionality for EM Johnson lagoon (FY23-25) ▪ Initiative 2.2 - Improve asset stewardship and reporting for the Utility (FY22-26) ▪ Initiative 2.3 - Install pressure monitors to evaluate pressure changes within the system (FY24-26) ▪ Initiative 2.4 - Develop a scope of work for a third party vendor to address inflow and infiltration (I&I) (FY24-26) ▪ Initiative 2.5 - Implement use of Advanced Metering Infrastructure (AMI) in merger communities (FY22-26) Objective 3. Plan for long-term Utility needs that meet future service demands Strategic Alignment: Growth & Natural Resources; Organizational Excellence; Safe, Vibrant, & Healthy Community ▪ Initiative 3.1 - Complete the EM Johnson Water Treatment Plant 120 MGD expansion (FY22-26)

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Product Quality (PQ) Provide reliable, responsive, and professional services and products that meet or exceed regulatory compliance and customer needs.

Stakeholders: City Attorney’s Office; City Clerk’s Office; City Manager’s Office; Customers; Employees; Regulators; Utility Partners; Vendors and Contractors; Wake County Schools

Performance Measures

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% of nutrient allocation used % of schools & daycares inspected annually Annual average effluent discharge total Nitrogen compared to Resource Recovery Facility optimization goal Copper (Cu) compliance rate Dry weather sanitary sewer overflow rate Federal regulation compliance rate Number of hydrant meter rental units billed each month State regulation compliance rate Lead (Pb) compliance rate

Objective 1. Meet or exceed regulatory compliance obligations across Utility operations Strategic Alignment: Growth & Natural Resources; Organizational Excellence; Safe, Vibrant, & Healthy Community ▪ Initiative 1.1 - Increase document management compliance by building a framework for document storage, navigation, and accessibility (FY22-26) ▪ Initiative 1.2 - Reduce disinfection byproducts in the distribution system (FY24-26) ▪ Initiative 1.3 – Enhance Lead and Copper Rule compliance (FY22-26)

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STAKEHOLDER UNDERSTANDING AND SUPPORT (SUS) Actively inform and involve customers and other stakeholders to promote an appreciation of the value and life cycle of water and the services provided by the Utility.

Performance Measures

Stakeholders: City Manager’s Office ; Communications; Customers; Employees; Information Technology; Office of Community Engagement; Vendors and Contractors Objective 1. Provide customers and other stakeholders timely information about the Utility and address their inquiries Strategic Alignment: Growth & Natural Resources; Organizational Excellence; Safe, Vibrant, & Healthy Community ▪ Initiative 1.1 - Increase the effectiveness of information sharing activities with customers (FY22-26) ▪ Initiative 1.2 - Improve resolution time for customer requests (FY22-26) Objective 2. Foster partnerships with stakeholders including government entities, professional associations, peer utilities, businesses, and contractors for improved customer relations and Utility operations Strategic Alignment: Growth & Natural Resources; Organizational Excellence

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% of customer requests completed within 24 hours, by type % of webpages for major capital projects that are updated on a quarterly basis Average resolution time, by call queue Average service call response time Number of Certificate of Compliance (COCs) applications processed Average abandoned rate

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▪ Initiative 2.1 - Increase consistency of project management processes (FY22-26)

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