FY23-25 Business Plan_Raleigh Water

FY 23-25

Raleigh Water 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

FY20

FY21

FY22

Budget $230,776,752

$248,933,186

$262,227,080

Full-Time Positions (FTEs) 663

663

663

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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

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

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Internal promotion rate

Recordable incidents of injury and accidents Total number of training hours

Strategic Alignment: Economic Development & Innovation; Organizational Excellence

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Stakeholders: City Manager’s Office ; Department of Equity and Inclusion; Employees; Human Resources; Information Technology; Office of Community Engagement ▪ Initiative 1.1 - Collaborate with the Human Resources department to create a formalized recruitment plan for hard-to-fill and retain positions (FY22-FY23) ▪ Initiative 1.2 - Standardize employee onboarding and offboarding processes and procedures across the Utility (FY22-23) ▪ Initiative 1.3 - Pilot strategies to reduce and prevent accidents and injuries (FY23-25) ▪ Initiative 1.4 - Work with the Human Resources department to improve Worker’s Compensation processes and develop light duty options for staff (FY23-25)

Vacancy rate

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

Strategic Alignment: Organizational Excellence

Stakeholders: City Manager’s Office ; Communications; Employees; Human Resources; Vendors and Contractors ▪ Initiative 2.1 - Promote activities that offer professional development opportunities, improve employee morale, and build better teams (FY22-24) ▪ Initiative 2.2 - Refine internal communication processes and better leverage existing communication tools (FY22-24) ▪ Initiative 2.3 - Expand the Department's online training capabilities (FY22-24) ▪ Initiative 2.4 - Implement a Sewer System Overview Awareness program (FY22-24)

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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.

Objective 3. Foster professional growth opportunities and increase employee involvement in activities that benefit their careers Strategic Alignment: Growth and Natural Resources; Organizational Excellence Stakeholders: City Manager’s Office ; Employees; Human Resources; Office of Strategy and Innovation; Planning and Development; Vendors and Contractors ▪ Initiative 3.1 - Facilitate opportunities for Utility staff to support the City’s Strategic Plan efforts (FY22-23) ▪ Initiative 3.2 - Establish cross-training opportunities for employees (FY22-24) ▪ Initiative 3.3 - Increase CIP staff’s understanding of and engagement in City planning efforts (FY22-25)

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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.

Objective 1. Plan and prepare for emergencies and recovery to ensure continuity of operations Strategic Alignment: Organizational Excellence; Safe, Vibrant, & Healthy Community Stakeholders: City Manager’s Office ; Communications; Customers; Employees; Emergency Communications; Information Technology; Office of Emergency Management and Special Events; Vendors and Contractors ▪ Initiative 1.1 - Increase readiness for emergency and recovery efforts by conducting tabletop exercises (FY22-24) ▪ Initiative 1.2 - Complete SCADA system upgrades identified in the FY21 security risk assessment (FY22-23) ▪ Initiative 1.3 - Improve the Utility’s ability to provide high -levels of customer service during emergencies (FY22-25) ▪ Initiative 1 . 4 - Replace Falls Lake raw water generator #1 (FY23-25) Stakeholders: Budget and Management Services; City Manager’s Office ; Department of Equity and Inclusion; Employees; Human Resources; Information Technology; Office of Strategy and Innovation; Planning and Development; Vendors and Contractors ▪ Initiative 2.1 - Better leverage technology to support field audit effectiveness and efficiency (FY23-24) ▪ Initiative 2.2 - Coordinate diversity, equity, and inclusion activities to ensure Utility practices are equitable for all (FY22-24) ▪ Initiative 2.3 - Establish a process for using surveys to improve utility operations and culture (FY22-23) ▪ Initiative 2.4 - Optimize departmental processes by developing program evaluation and performance management tools and strategies (FY22-25) ▪ Initiative 2.5 - Improve the Production Release Quality Control process for CCB upgrades (FY22-25) Objective 2. Employ continuous improvement practices to improve operations across the Utility Strategic Alignment: Economic Development & Innovation; Organizational Excellence

Performance Measures

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% of biosolids removed versus biosolids removal planned % of defects reported in Customer Care & Billing/Web Self-Service production

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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

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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 2 (Continued). Employ continuous improvement practices to improve operations across the Utility ▪ Initiative 2.6 - Develop a departmental risk assessment framework (FY23-25) Objective 3. Promote efficient and safe management of materials and equipment used in Utility operations Strategic Alignment: Growth & Natural Resources; Organizational Excellence Stakeholders: City Manager’s Office ; Employees; Engineering Services; Planning and Development; Solid Waste Services; Vendors and Contractors ▪ Initiative 3.1 - Identify options for improving recycling and managing waste (FY22-25) ▪ Initiative 3.2 - Implement and transition to the bioenergy program (FY22-25) ▪ Initiative 3.3 - Improve and upgrade chemical storage system at the EM Johnson Water Treatment Plant (FY24) Objective 4. 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 Stakeholders: City Manager’s Office Customers; Department of Equity and Inclusion; Employees; Office of Sustainability; Planning and Development; Transportation; Vendors and Contractors ▪ Initiative 4.1 - Track renewable natural gas production and associated energy offset for the bioenergy program (FY23-25) ▪ Initiative 4.2 - Implement odor and corrosion control projects to address elevated and consistent odors from the sanitary sewer collection system (FY22-25) ▪ Initiative 4.3 - Identify tools and opportunities for implementing climate change adaptions (FY23-25)

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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.

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

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 hydrants painted chrome yellow annually Total number of water meters set Total number of water system v alves 12’’ or smaller exercised annually Total number of water system v alves 14’’ or larger exercised annually

Strategic Alignment: Economic Development & Innovation; Organizational Excellence

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Stakeholders: Budget and Management Services; City Manager’s Office ; Customers; Department of Equity and Inclusion; Employees; Finances; Office of Strategy and Innovation; Vendors and Contractors ▪ Initiative 1.1 - Refine the internal inventory process (FY22-24) ▪ Initiative 1.2 - Refine the Utility's budget and goal-setting process (FY22-23) ▪ Initiative 1.3 - Review and modify rate structure to manage demands, improve cost recovery, and ensure affordability (FY22-24) ▪ Initiative 1.4 - Expand approaches to secure customer's access to affordable water and wastewater services now and into the future (FY23-24) 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 Stakeholders: Budget and Management Services; City Manager’s Office Customers; Employees; Information Technology; Office of Strategy and Innovation; Regulators; Vendors and Contractors ▪ Initiative 2.1 - Upgrade infrastructure to improve dam safety and functionality for EM Johnson lagoon (FY23) ▪ Initiative 2.2 - Improve asset stewardship and reporting for the Utility (FY22-25) ▪ Initiative 2.3 - Identify opportunities for continual preventative maintenance (FY22-24) ▪ Initiative 2.4 - Reduce backwash waste and improve end of backwash turbidities (FY22-23) ▪ Initiative 2.5 - Upkeep and upgrade existing meter infrastructure and seek innovative meter technologies to further aid in the tracking of usage, leaks, and backflow events (FY22-25) ▪ Initiative 2.6 - Rehabilitate raw water intake infrastructure in system (FY22-23)

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INFRASTRUCTURE STRATEGY AND PERFORMANCE (ISP) (Continued) 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.

Objective 2 (Continued). Protect and maintain existing assets and enhance operations necessary to ensure system reliability ▪ Initiative 2.7 - Use machine learning to improve the Utility's preventative maintenance practices (FY22-25) ▪ Initiative 2.8 - Install dual check devices to ensure backflow protection (FY23-25) ▪ Initiative 2.9 - Replace meters to provide higher accuracy flow measurement on low flow consumption of 1 1/2" and 2" services (FY23-24) ▪ Initiative 2.10 - Implement a preventative main cleaning plan for sewer assets on easements (FY23-25) Objective 3. Plan for long-term Utility needs that meet future service demands Strategic Alignment: Growth & Natural Resources; Organizational Excellence; Safe, Vibrant, & Healthy Community Stakeholders: Budget and Management Services; City Manager’s Office ; Customers; Employees; Planning and Development; Regulators; Vendors and Contractors ▪ Initiative 3.1 - Evaluate and identify future water resources (FY22- 25) ▪ Initiative 3.2 - Design and construct DE Benton water treatment plant 100 MG reservoir (FY23-25) ▪ Initiative 3.3 - Complete and implement an Integrated Master Plan (FY22-24) ▪ Initiative 3.4 - Complete the EM Johnson Water Treatment Plant 120 MGD expansion (FY22-25)

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

Objective 1. Meet or exceed regulatory compliance obligations across Utility operations Strategic Alignment: Growth & Natural Resources; Organizational Excellence; Safe, Vibrant, & Healthy Community Stakeholders: City Attorney’s Office; City Clerk’s Office; City Manager’s Office; Customers; Employees; Regulators; Utility Partners; Vendors and Contractors; Wake County Schools ▪ Initiative 1.1 - Increase cross-connection compliance using automated, real-time data and enhanced compliance-verification processes (FY22-24) ▪ Initiative 1.2 - Increase document management compliance by building a framework for document storage, navigation, and accessibility (FY22-25) ▪ Initiative 1.3 - Proactively monitor, participate, and act in an effort to protect and optimize the Utility’s nut rient allocation (FY22-25) ▪ Initiative 1.4 - Maintain regulatory compliance with water quality standards (FY22-25) ▪ Initiative 1.5 - Decrease dry weather Sanitary Sewer Overflows (FY22-25) ▪ Initiative 1.6 - Enhance water testing capabilities by improving laboratory functionality and space (FY22-25) ▪ Initiative 1.7 - Improve water quality, reliability, and capacity in targeted pressure zones (FY22-24) ▪ Initiative 1.8 - Enhance Corrosion Control Treatment and Water Quality parameters (FY23-25) ▪ Initiative 1.9 - Monitor and respond to regulatory compliance requirements and contaminants of emerging concern (FY22-25) ▪ Initiative 1.10 - Implement a Lead and Copper sampling schedule for schools and daycares (FY23-24) ▪ Initiative 1.11 - Reduce disinfection byproducts in the distribution system (FY24) ▪ Initiative 1.12 - Remove known sources of Lead from the Utility’s water distribution system (FY23-25)

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

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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.

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 Stakeholders: City Manager’s Office ; Communications; Customers; Employees; Information Technology; Office of Community Engagement; Vendors and Contractors ▪ Initiative 1.1 - Increase the effectiveness of information sharing activities with customers (FY22-25) ▪ Initiative 1.2 - Maintain an updated web presence for major capital projects (FY22-25) ▪ Initiative 1.3 - Proactively provide system work notifications to customers (FY22-24) ▪ Initiative 1.4 - Improve resolution time for customer requests (FY22-25) 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 Stakeholders: City Manag er’s Office ; Communications; Customers; Employees; Information Technology; Office of Community Engagement; Vendors and Contractors ▪ Initiative 2.1 - Assess and mitigate the risk private water systems have on the public system (FY22-24) ▪ Initiative 2.2 - Collaborate with Raleigh Water's GIS team to develop an editable Water Distribution Layer (FY22-24) ▪ Initiative 2.3 - Deploy Property Manager Resource Kits (FY22-23) ▪ Initiative 2.4 - Increase consistency of project management processes (FY22-24) ▪ Initiative 2.5 - Establish a Community Representatives Program with merger town partners (FY22-24)

Performance Measures

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% of customer requests completed within 24 hours, by type % of planned Sewer Maintenance preventative work orders where customers were notified in advance using Everbridge notification software % 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 Number of Property Manager Resource Kits distributed Average abandoned rate

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