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2. 2 Today’s Presentation The City of Baltimore Water and Wastewater Systems Challenges facing the City The Strategic Planning Initiative So Where Are We Now?

3. 3 Background of City of Baltimore Bureau of Water and Wastewater More than 1,800 employees Water –Distribution of 226 mgd to 1.8 million people through the metropolitan area Wastewater –Collection, treatment and disposal of 240 mgd of wastewater from a service population of 1.6 million

4. 4 Bureau Organization

5. 5 Drinking Water System Overview

6. 6 Wastewater System Overview Add WW Map

7. 7 Wastewater System Overview Treatment Facilities Back River WWTP Patapsco WWTP Approximately 240 MGD Total Service Area –390 square miles –3,100 miles of pipe

8. 8 Management Issues Politics Workforce ̶ Evolving leadership team ̶ Aging workforce ̶ Lack of succession plan ̶ Culture of Silos of Information Absence of documented technical and financial analysis

9. 9 Major Issues Low income population Economic situation Regulation driven investment requirements: –SSO Consent Decree negotiation and price –Covering or UV for finished water reservoirs –Enhanced nutrient removal –Stormwater Lack of macro-level information for negotiation with regulators

10. 10 Taking the First Step to Meet These Challenges Develop a comprehensive strategic plan utilizing the Effective Utility Management framework

11. 11 Strategic Planning Input External stakeholders City management Customers Employees

12. 12 Strategic Planning Input (cont’d) Existing Plans City of Baltimore Strategic Plan Department of Public Works Strategic Plan

13. 13 Strategic Planning Input (cont’d) Benchmarking Available public data Comparable organizations –Size –Geography –Demographics –Services Key Measures – Attributes Processes – Attributes and Keys

14. 14 Strategic Planning Input (cont’d) EUM Assessment - Attributes Attribute champions identify and report on: –Measures –Current Performance –Improvement Actions Senior Management Review Product Quality Customer Satisfaction Employee/Leadership Development Operational Optimization Financial Viability Infrastructure Stability Operational Resiliency Community Sustainability Water Resource Adequacy Stakeholder Understanding/Support

15. 15 Strategic Planning Input (cont’d) EUM Assessment - Keys A Keys to Management Success team evaluates performance on: –Leadership: 13 sub –issues –Strategic Business Planning: 18 sub-issues –Organizational Approaches: 10 sub-issues –Measurement: 7 sub-issues –Continual Improvement Management Framework: 10 Sub-Issues

16. 16 Strategic Planning Inputs

17. 17 Strategic Planning Process Foundation Workshop Who: Senior Management Team What: –Vision, values, and mission –Critical analysis of Ten EUM Attributes –Attribute by Attribute analysis: –Critical success factors –Attribute goals - Specific Baltimore –Measures important to internal & external leadership (Utility management, Department of Public Works, City Council, Mayor, etc.) –Strategy ideas –Discussion of other EUM Keys to Management Success: Leadership Measurement Organizational approaches Continuous improvement framework Outcome: Vision, Values, Mission, Attribute Teams

18. 18 Strategic Planning Process Strategy Workshops Who: Attribute Teams What: –Attribute measures –Attribute strategies –Senior management review and input Outcome: Collectively the enterprise level strategic plan

19. 19 Strategic Planning Process Implementation Planning Who: Attribute Teams What: –Who? –What? –When? –How much? –Senior management review Outcome: Time phased implementation plan

20. 20 Strategic Planning Process Business Unit Planning Who: Employee teams for each business unit What: –Business unit role in achieving Attribute goals –Business unit Mission Attribute goals Key measures Strategies –Implementation plans Outcome: ̶ Business unit strategic plans

21. 21 Strategic Planning Document Keep it Simple

22. 22 Benefits of EUM Based Strategic Planning Effective Communication – across departments at various levels Committed Team Enhanced stakeholder focus Improved decision making Well directed strategies focusing on the ten Attributes Predictable results All Leading to a More Effectively Managed Utility and Improved Performance

23. 23 So Where Are We Now? Strategic Planning Effort Goes on Hiatus –Bureau Head Resigns –Director of Public Works Resigns Now What? –New Director of Public Works –New Bureau Head –New Bureau Chief Financial Officer –Filling vacant Division Head positions –Reignite strategic planning effort later this year