commission meeting minutes no. topic page · 24/05/2016 · meeting held at 1434 air rail avenue,...

COMMISSION MEETING MINUTES May 24, 2016

Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 of 18

No. Topic Page

1. Consent Agenda 3-4

a. Approval of Minutes 3

b. Contract Awards 3

c. Task Orders 3

d. Contract Change Orders 3

e. Sole Source 4

f. HRSD Use of Existing Competitively Awarded Contract Vehicle 4

2. Fiscal Year-2017 Budgets 5-7

3. Center Avenue I&I Remediation Phase IIRejection of Bids

8-9

4. Effingham Street Interceptor Force Main Emergency ReplacementAdditional Appropriation and Contract Change Order

10-11

5. Extensometer Construction and Monitoring at Nansemond TreatmentPlant Agreement

12

6. King William Treatment Plant Effluent Utilization 13

7. Sustainable Water Recycling Initiative (SWRI)Quarterly Update

14

8. Election of OfficersOperations & Nominations (O&N) Committee Appointment

15

9. Reschedule Commission Meeting Date – September 2016 16

10. Unfinished Business 17

11. New Business 17

12. Commissioner Comments 17



No. Topic Page

13. Public Comments Not Related to Agenda 17

14. Informational Items 17

a. Management Reports 17

b. Strategic Planning Metrics Summary 17

c. Effluent Summary 17

d. Air Summary 17

15. Announcements 17

Attachments (6)



Name Title Present for Item Nos.

Lakdawala, Vishnu K. Commission Chair 1-15 Elofson, Frederick N. Commission Vice-Chair 1-15 Bredemeyer, Arthur C. Commissioner Absent Glenn, Michael E. Commissioner Absent Levenston, Jr., Willie Commissioner 1-15 Lynch, Maurice P. Commissioner 1-15 Rodriguez, Stephen C. Commissioner 1-15 Rotkis, Susan M. Commissioner 4-15

1. CONSENT AGENDA

Action: Approve the items listed in the Consent Agenda.

Moved: Maurice Lynch Ayes: 5 Seconded: Willie Levenston Nays: 0

Brief:

a. Approval of minutes from previous meeting.

b. Contract Awards

1. Aquifer Replenishment System Laboratory Services $221,215

2. Work Safety Shoes $240,000

c. Task Orders

1. Regional Hydraulic Model and Other Consent OrderRequirements

$360,000

d. Change Orders

1. Emissions Stack Testing Services $56,000

2. Mobile Workforce Managed Services Support Contract $25,000



e. Sole Source

1. CAMBI® Pilot Unit

2. Flygt Pumps

3. ISCO Flow Meters, Samplers, Probes and RelatedAccessories

4. Laboratory Total Organic Carbon (TOC) Analyzer

5. Primary Total Suspended Solids (TSS) Analyzer

f. HRSD Use of Existing Competitively Awarded Contract Vehicle

1. Combination Jet Vacuum Sewer Cleaner $372,548

Item(s) Removed for Discussion: None

Attachment #1: Consent Agenda

Public Comment: None



2. FISCAL YEAR-2017 BUDGETS

Actions:

a. Approve the FY-2017 to FY-2036 Financial Forecast

b. Approve the Operating Budget for FY-2017, which includes theOperating, Debt Service and Transfer Appropriations, andauthorize distribution of the Budget in accordance with the TrustAgreement.

c. Approve the Capital Budget for FY-2017

d. Approve the Capital Improvement Program for FY-2017 to FY-2026(Summary Capital Improvement Program)

e. Approve the Rate Schedules to be effective July 1, 2016 subject tothe requirements of the Enabling Act.

Moved: Willie Levenston Ayes: 5 Seconded: Frederick Elofson Nays: 0

Brief: The annual budgeting process includes updating the 20-year Financial Forecast and preparing the Operating Budget (which includes the operating, debt service and transfer appropriations), the Capital Budget and the Capital Improvement Program (CIP) as well as the corresponding Rate Schedules to support these budgets.

The preliminary budgets were forwarded for Commission review in mid-March. The Chairman appointed Commissioners Elofson and Rodriguez to the Finance Committee. They and several other commissioners participated in the CIP review meetings and met with staff to review the draft components of the budget for the next fiscal year. The Finance Committee reported to the Commission at the April 26, 2016 meeting. The Commission is required to approve an annual budget by June 1 and to print and distribute the budget by June 30.



The Capital Budget includes the first year of the CIP. The CIP includes the proposed capital projects to be undertaken by HRSD over the next ten years. Projects in the approved CIP (including those in the approved Capital Budget) are individually presented to the Commission for full project funding specific to each project at the time first dollar is spent for funding authorization. Changes to the CIP, which may be required by changing conditions, are presented to the Commission as amendments. The proposed CIP recommends spending approximately $1.52 billion over the next 10 years. The CIP will be available on the HRSD website upon Commission approval.

The Financial Forecast was updated to cover the period 2017 through 2036 to forecast HRSD finances over an extended timeframe. The Financial Forecast is a planning tool used to project revenue requirements and spending limits needed for HRSD to comply with its financial policies throughout the forecast period.

The Rate Schedules summarize rates necessary to generate sufficient revenue to cover expenses and reserves requirements for the next fiscal year. HRSD’s Rate Model assigns the operating and debt service costs from the proposed budget to the four primary treatment parameters of Biochemical Oxygen Demand (BOD), total suspended solids, phosphorus and nitrogen at each treatment plant as weighted averages or percentages to determine the total cost for treating each parameter. The total cost is converted into a unit cost based on the estimated quantity of each parameter, and surcharge rates for high strength wastewater are calculated. The result is that the Rate Model calculates rates sufficient to recover expenses based on the waste characteristics of each customer. To meet the requirements of the Financial Forecast, the FY-2017 wastewater charge will increase from $4.13 per 100 cubic feet to $4.51 per 100 cubic feet. The current average residential customer (as measured by a 5/8-inch meter) uses approximately 6.5 CCF of water per month, resulting in an average monthly increase of $2.47 (approximately $0.08 per day). Our charges for wastewater treatment remain reasonable, with the average residential customer paying less than $1.00 per day to ensure future generations will inherit clean waterways and be able to keep them clean.

Rates to provide wastewater services to the Middle Peninsula communities include both the cost of the treatment and the collection systems. Middle Peninsula residents pay the HRSD regional treatment rate, the weighted



average sewer collection system rate for the metro area, plus the capital costs (Capital Recovery Rate) of the collection systems. The capital cost component generally includes the amortized cost incurred by HRSD when the systems were acquired.

Attachment #2: FY-2017 Annual Budget




3. CENTER AVENUE I&I REMEDIATION PHASE IIREJECTION OF BIDS

Action: Reject all bids.

Moved: Stephen Rodriguez Ayes: 5 Seconded: Frederick Elofson Nays: 0

CIP Project: JR011500

Type of Procurement: Competitive Bid

Bidder Bid Amount SAK Construction, LLC $1,443,510.00 AM-Liner East, Inc. $1,801,630.70 TA Sheets General Contractors $1,972,844.00 WB and E Contractors, Inc. $2,062,425.00 Tri-State Utilities, Co. $2,122,154.40 Shaw Construction $3,186,034.91

Engineer Estimate: $2,364,061.15

Project Description: This project includes the rehabilitation and/or replacement of approximately 8,340 linear feet of existing 18, 21 and 24-inch vitrified clay and reinforced concrete gravity sewer and will complete the rehabilitation of HRSD’s Center Avenue Pump Station service area. The project includes all or portions of line numbers NG-175, NG-176, NG-045 and NG-098. City laterals directly connected to HRSD infrastructure will also be rehabilitated along with the construction effort at HRSD cost.

HRSD recommends rejection of all bids. During the evaluation of bids, a unique approach to Cured in Place Pipe (CIPP) rehabilitation and associated bypass pumping activities was brought to HRSD’s attention by the apparent low bidder, SAK Construction, LLC.

The proposed approach to CIPP rehabilitation and bypass pumping is reflected in the apparent low bid, which was $358,121 less than the next lowest bid. The difference in bids highlights the potential to save HRSD in



construction costs due to reduced construction duration. Additionally, the proposed approach has the potential to significantly reduce the construction impacts to the residents in the project area (greater Hilton Village area of Newport News).

SAK Construction, LLC, met with HRSD to explain their approach to completing the CIPP rehabilitation project with a bypass pumping system that is fully removed from the project site at the end of each work day. The described approach was the basis for their low bid. SAK Construction, LLC shared that their bid did not reflect completing the project in the manner described in the contract documents and subsequent addenda. SAK Construction, LLC has used this approach in other regions of the country successfully and the equipment used for their bypass pumping system is widely available and not proprietary. This application of the bypass pumping system approach is new to the Hampton Roads region and discussions with the City of Newport News indicate that this construction technique will be acceptable.

With Commission approval of the rejection of all bids for the current advertisement, HRSD will revise the contract documents to add the proposed approach to bypass pumping and re-advertise the project for competitive bid.

Schedule: PER October 2013 Design May 2014 Bid June 2016 Construction August 2016 Project Completion July 2017

Discussion Summary: The proposed bypass pumping system has not been used on HRSD CIP projects in the past but is available to any contractor that chooses to use this approach. HRSD crews have used a similar piping system for repairs in the past. We will include this method in future projects, where applicable, as an option to help minimize impacts to residents.

Attachment: None




4. EFFINGHAM STREET INTERCEPTOR FORCE MAIN EMERGENCYREPLACEMENTADDITIONAL APPROPRIATION AND CONTRACT CHANGE ORDER

Actions:

a. Appropriate additional funding in the amount of $300,000.

b. Approve a change order to the contract with Tidewater UtilityConstruction, Inc. (TUC) in the amount of $401,397.

Moved: Maurice Lynch Ayes: 6 Seconded: Willie Levenston Nays: 0

CIP Project: VP00175

Budget $2,478,000 Previous Expenditures and Encumbrances ($2,081,126) Available Balance $396,874 Proposed Change Order No. 1 to TUC ($401,397) Proposed Contingency ($295,477) Project Shortage/Requested Additional Funding

($300,000)

Revised Total Project Authorized Funding $2,778,000

Contract Status Amount Cumulative % of Contract

Original Contract with TUC $1,385,589 Total Value of Previous Change Orders

$0 0%

Requested Change Order No. 1 $401,397 Total Value of All Change Orders $401,397 29% Revised Contract Value $1,786,986

Time (Additional Calendar Days) 40



Project Description: This project will replace approximately 1,400 linear feet of 24-inch force main on Effingham Street from Firehouse Lane to Country Street in Portsmouth.

Funding Description: This project requires additional funding due to changed field conditions encountered during construction. The contractor discovered cobblestones under the asphalt that need to be removed and the roadway rebuilt. This request also includes a contingency of $295,477 to accommodate any additional unforeseen conditions. Analysis of Cost: The Engineer prepared an independent estimate of costs and recommends approval of these changes.

Change Order Description: On Chestnut Avenue between County Street and High Street and from High Street to London Boulevard, a thin layer of asphalt is underlain by cobblestones. The cobblestones were not discovered during the design phase investigations, and are a changed condition. Patching Chestnut Avenue in the area disturbed by the new pipe line is not possible, as bid by TUC, because the cobblestones are not stable when disturbed and a crack-free final product cannot be achieved. The cobblestones must be removed and the roadway rebuilt from County to High and from High to London across the full roadway width (gutter to gutter). This change order captures the work needed to reconstruct the road and includes a time extension for the additional work.

Schedule: Project Completion October 2016

Attachment: None




5. EXTENSOMETER CONSTRUCTION AND MONITORING AT NANSEMONDTREATMENT PLANT AGREEMENT

Action: Accept the US Geological Survey (USGS) proposal to constructand install an extensometer and operate for three years with payment toUSGS not to exceed $1.4 million and authorize the General Manager toexecute an agreement in accordance with the terms of the proposal.

Moved: Maurice Lynch Ayes: 6 Seconded: Susan Rotkis Nays: 0

Funding Description: Funds are available in Fiscal Year 2016 OperatingBudget to support this agreement.

Agreement Description: The USGS has proposed to construct and monitoran extensometer at the Nansemond Treatment Plant. An extensometer is avery specialized instrument used to produce reliable and accurate datadescribing aquifer thickness, groundwater levels, land surface elevation, andbedrock elevation for at least 20 years. The proposal includes the USGSResearch Drilling Program mobilizing equipment to install the extensometer.USGS will oversee all aspects of construction and operation. The USGSproposal is attached.

There are few data points available to monitor land subsidence in easternVirginia. The installation of this extensometer will add to that knowledge baseand provide invaluable data to support HRSD’s Sustainable Water RecyclingInitiative.

Schedule: Construct extensometer July 2016 – June 2017 Monitor extensometer July 2017 – June 2019

Discussion Summary: HRSD will own the equipment and may assume monitoring after the three-year contract period. Staff will continue to pursue federal funding.

Attachment #3: USGS Proposal and Joint Funding Agreement *added 05/25/16




6. KING WILLIAM TREATMENT PLANT EFFLUENT UTILIZATION

Action: No action required.

CIP Project: MP011920

Brief: The King William Treatment Plant began providing reclaimed water tothe Nestle Purina cat litter production facility in early April 2016 to supplementthe stressed groundwater supply that is currently utilized by Nestle Purina.HRSD and Nestle Purina have partnered effectively in support of water reuse;both companies made capital investments and have committed assets toencourage beneficial water reuse for the protection of the environment andthe conservation of valuable groundwater resources. Over 30,000 gallons ofreclaimed water is conveyed daily to Nestle Purina and is used in the processof making cat litter. Several HRSD Departments worked together to make thisproject a success. This industrial reuse application reduces the volume ofeffluent discharged to the local waterway by 80 percent, which supports theHRSD Vision: “Future generations will inherit clean waterways and be able tokeep them clean.”

Discussion Summary: Regulatory requirements for zinc removal remain ineffect when HRSD discharges to the Moncuin Creek during periods ofdrought. However, the cost for removing zinc should be less expensive dueto the infrequent occurrence. There are no term limits or quantityrequirements in the agreement to provide reclaimed water to Nestle.

Attachment #4: PowerPoint Presentation




7. SUSTAINABLE WATER RECYCLING INITIATIVE (SWRI)QUARTERLY UPDATE


CIP Project: GN015700

Brief: The SWRI continues to move forward since approved by theCommission at the August 2015 meeting. Staff continues to makepresentations at conferences and to stakeholders. The space in the denitefilter building at the York River Treatment Plant has been prepared for thepilot project equipment. The equipment has been ordered and should be on-site in June. A complex sampling and analysis plan has been developedusing the Central Environmental Laboratory (CEL) and a contracted lab asrequired. A test well is being drilled at the Nansemond Treatment Plant. Thecommunications consultant held three focus group sessions that wereobserved by HRSD staff. The consultant is developing a survey instrument tobe used to gain quantitative data based on the focus group work and elevenin-depth interviews conducted by the consultant.

The SWRI continues to progress rapidly. Staff provided an update on thestatus of the project.

Discussion Summary: Strategies to address parameters of interest havebeen added based on academics’ suggestions. Analytical methods alreadyexist to detect a multitude of parameters.

Attachment #5: PowerPoint Presentation




8. ELECTION OF OFFICERSOPERATIONS & NOMINATIONS (O&N) COMMITTEE APPOINTMENT

Action: The Chair appointed Commissioners Levenston and Rotkis tothe O&N Committee to recommend nominations for Chair and Vice-Chair of the Commission for the coming year.

Brief: The Commission is required by the Enabling Act to elect a chair andvice-chair each year, but the Act does not specify when the election is to beheld. The election of officers is normally held in June, and the new officersassume their duties in July. The Committee will also review the HRSDCommission Governance Guidelines, Remote Participation and Ethicspolicies.

The Chair customarily appoints an O&N Committee to nominate Commissionofficers for the coming year. Commissioners Lynch and Rodriguez served onthe committee last year.

The committee will hold its first meeting following adjournment of the May 24Commission meeting.

Attachment: None




9. RESCHEDULE COMMISSION MEETING DATE – SEPTEMBER 2016

Action: Approve changing the date of the regularly scheduledSeptember 27, 2016 Commission meeting to September 21, 2016.

Moved: Susan Rotkis Ayes: 6 Seconded: Frederick Elofson Nays: 0

Brief: Formal action is required to change a regularly scheduled Commissionmeeting date. In April the General Manager polled the commissioners onmoving the September 2016 Commission meeting to September 21, 2016.This date will accommodate participation in the Water EnvironmentFederation’s Annual Technical Exhibition and Conference (WEFTEC). TheCommission meeting time and location would remain as scheduled.

Attachment: None




10. UNFINISHED BUSINESS – None

11. NEW BUSINESS

Mr. Henifin informed the Commission of an editorial on the SWRI project inthe May 22, 2016 edition of The Virginian Pilot.

12. COMMISSIONER COMMENTS – None

13. PUBLIC COMMENTS NOT RELATED TO AGENDA – None

14. INFORMATIONAL ITEMS


Brief: The items listed below were presented for information.a. Management Reportsb. Strategic Planning Metrics Summaryc. Effluent Summaryd. Air SummaryAttachment #6: Informational Items


15. ANNOUNCEMENTS

• The Finance Committee will meet after adjournment of this meeting.• The Operations & Nominations Committee will also meet after adjournment of

this meeting.• HRSD will be recognized as a “Trailblazer” for the 6th consecutive year during

the United Way of South Hampton Roads’ June 7 awards luncheon to be heldat the Virginia Beach Convention Center. This event is a way to thank ourcampaign leaders for their efforts during the past campaign, and to allowfellow community leaders to celebrate the lasting impact United Waydonations have in our community.



Next Commission Meeting Date: June 28, 2016 at the HRSD South Shore Operations Complex, 1434 Air Rail Avenue, Virginia Beach, VA 23455.

Meeting Adjourned: 10:04 a.m.

SUBMITTED: APPROVED:

Jennifer L. Cascio Secretary

Vishnu K. Lakdawala, PhD. Chair

HRSD COMMISSION MEETING MINUTES May 24, 2016

ATTACHMENT #1 AGENDA ITEM 1. – Consent Agenda

Resource: Jim Pletl CONSENT AGENDA ITEM 1.b.1. – May 24, 2016 Subject: Aquifer Replenishment System Laboratory Services Contract Award (>$200,000) Recommended Action: Award a contract to Eurofins Eaton Analytical, Inc. in the amount of $221,215.

CIP Project: GN015700 Budget $3,000,000 Previous Expenditures and Encumbrances ($2,661,420) Available Balance $338,580


Bidder Bid Amount Eurofins Eaton Analytical, Inc. $221,215 HRSD Estimate: $260,000

Project Description: This project encompasses reusing highly treated wastewater for aquifer replenishment to protect groundwater supplies as well as accomplish wastewater treatment objectives and enhance the region’s total groundwater supply. Contract Description: This contract will provide environmental analyses and other related technical support for the Aquifer Recharge Pilot project.

Resource: Steve de Mik CONSENT AGENDA ITEM 1.b.2. – May 24, 2016 Subject: Work Safety Shoes Contract Award (>$200,000) Recommended Action: Award multiple contracts for work safety shoes to the vendors listed in the total estimated amount of $80,000 for year one with two annual renewal options and an estimated cumulative value in the amount of $240,000.


Bidder Bid Discounts Saf-Gard Safety Shoes, Inc. 25% Red Wing Brands of America, Inc. 15% Tidewater Safety Shoe Co. 10% Lehigh Outfitters 23% HRSD Estimate: $158,889

Contract Description: Each contract will be an agreement for the vendor to furnish and deliver work safety shoes to all HRSD facilities. Multiple vendor contracts will be awarded to provide employees with a range of shoe selections within HRSD’s safety shoe classifications. Ordering options include onsite mobile trucks, online ordering and walk-in service locations. HRSD employees are provided with an annual allowance for purchase of safety shoes as identified and approved by the Safety Division. The allowance is calculated based on the discounted average shoe cost.

Resource: Phil Hubbard CONSENT AGENDA ITEM 1.c.1. – May 24, 2016 Subject: Regional Hydraulic Model and Other Consent Order Requirements Task Order (>$200,000) Recommended Action: Approve a task order with CDM Smith in the amount of $360,000. CIP Project: GN012110 Budget $101,254,812 Previous Expenditures and Encumbrances ($92,875,551) Available Balance $8,379,261

Contract Status: Amount Original Contract with CDM Smith $500,000 Total Value of Previous Task Orders $23,091,424 Requested Task Order $360,000 Total Value of All Task Orders $23,451,424 Revised Contract Value $23,951,424

Project Description: Engineering services, system inspections and software expenses are required to create a fully functional extended state hydraulic model for the specified portions of the Regional Sanitary Sewer System. The model features and engineering services include extended state simulation, GIS data integration, interoperability with the localities’ hydraulic models, training and database administration. Additional modeling efforts and software purchases for each of the localities and the Middle Peninsula are included as part of this project. Additional task items to be completed as mandated by the Consent Decree include overall program management and guidance, Consent Decree negotiation, Locality coordination, Capacity and Condition Assessment (an estimated 2-5 percent of the interceptor force mains and 100 percent of the gravity interceptors will need to be inspected for possible defects), Public Participation, overall SCADA coordination, SSES planning, rehabilitation planning and implementation, and preparation and implementation of the Regional Wet Weather Management Plan (RWWMP). Other related work includes: surveying manholes and pumping stations, several studies, and hydraulic model support to make sure other Capital Improvement Program projects fully comply with the Consent Decree. Task Order Description: This task order includes the overall management and coordination of all the work orders and their interaction within the modeling work for the Regional Hydraulic Model. This work will be intensive as the Alternative Analysis Report is developed for submission in August 2016 Level of Service model runs. This task order also includes preparing for, attending and completing follow-up activities

associated with the following meetings: Model Users Group, Locality and Capacity Team (with HRPDC), Wet Weather Management Program Leadership Team, Model Coordination and Technical Review Committee. This work is due to a change in the modeling approach, which caused considerable rework of all aspects of the solution sets for each wastewater treatment plant service area. This task order provides additional services to revise modeling, engineering evaluations and technical studies to incorporate the approach revisions. The results of this work will identify potential improvements determined with the Regional Hydraulic Model that are needed to support the level of service determination and Alternative Analysis Report. Analysis of Cost: The estimated budget for these additional services from May 2016 through August 2016 is $360,000. This amount is based on a change in modeling parameters, which requires changes to the solution set model and the Regional Hydraulic Model.

Resource: Jim Pletl CONSENT AGENDA ITEM 1.d.1. – May 24, 2016 Subject: Emissions Stack Testing Services Contract Change Order (>25% or $50,000) Recommended Action: Approve a change order with Air Tech Environmental LLC in the amount of $56,000. Contract Status Amount Cumulative %

of Contract Original Contract for Air Tech Environmental LLC $177,948 Total Value of Previous Change Orders $55,230 31% Requested Change Order No. 5 $56,000 Total Value of All Change Orders $111,230 62% Revised Contract Value $289,178 Time (Additional Calendar Days) 0

Project Description: This request funds the remaining Emissions Stack Testing Services to be performed at Army Base and Virginia Initiative Plant (VIP) under the original test services contract. Completion of the stack testing contract is required to finish the initial compliance demonstration for all of HRSD’s incinerators and the EPA’s Section 129 Sewage Sludge Incinerator Rule. Funding Description: The original project estimate did not anticipate delays in testing, extra days of testing, specialized in-field pollutant testing, a cancelled test and failed compliance tests. In addition to the Section 129 compliance tests at Army Base and VIP ($35,000), this request includes one extra day of specialized in-field air pollutant testing for hydrochloric acid (HCL) at Army Base ($3,000) and a contingency to accommodate another possible failed emissions test ($18,000) for a total of $56,000. Analysis of Cost: The original contract was for 10 stack tests, one test per stack and 10 stacks, at approximately $17,795 per test for a total contract amount of $177, 948. The contractor, upon completion of the contract, will have performed up to 15 tests (10 successful) costing $266,922 plus $22,256 in additional related services for a project contract total of $289,178.

Resource: Don Corrado CONSENT AGENDA ITEM 1.d.2. – May 24, 2016 Subject: Mobile Workforce Managed Services Support Contract Contract Change Order (>25% or $50,000) Recommended Action: Approve a change order with Oracle America, Inc. in the amount of $25,000. Contract Status: Amount Cumulative %

of Contract Original Contract with Oracle America, Inc. $100,000 Total Value of Previous Change Orders $56,767 57% Requested Change Order No. 4 $25,000 Total Value of All Change Orders $81,767 82% Revised Contract Value $181,767 Time (Additional Calendar Days) 0

Project Description: Oracle support services required to provide customized programming codes to integrate HRSD’s Customer Care Center Billing (CC&B) System with Environmental Systems Research Institute’s Mobile Workforce System. Change Order Description: This change order includes additional programming support services for CC&B communication with the mobile workforce.

Resource: Charles Bott

CONSENT AGENDA ITEM 1.e.1 – May 24, 2016 Subject: CAMBI® Pilot Unit Sole Source (>$10,000) Recommended Action: Approve Bucknell University as a provider of services to conduct various research studies using the CAMBI® pilot unit for HRSD. Sole Source Justification:

Compatibility with existing equipment or systems is required

Support of a special program in which the services have unique characteristics essential to the needs of the program

Service is covered by a patent or copyright

Service is part of standardization program to minimize training for maintenance and operation, and parts inventory

Only known source Details: Service includes various research studies using the patented CAMBI® pilot unit that is only available through Bucknell University research facilities. The studies are in support of the solids handling research work including thermal hydrolysis, digestion, dewatering, thickening, etc. No other facilities have the equipment and expertise to provide the services needed to conduct these studies.

Resource: Bruce Husselbee

CONSENT AGENDA ITEM 1.e.2. – May 24, 2016 Subject: Flygt Pumps Sole Source (>$10,000) Recommended Action: Approve Flygt Pumps for use at the Shipps Corner Interim Improvements project. CIP Project: AT011501 Sole Source Justification:


Support of a special program in which the product or service has unique characteristics essential to the needs of the program

Product or service is covered by a patent or copyright

Product or service is part of standardization program to minimize training for maintenance and operation, and parts inventory

Only known source Details: To meet the hydraulic conditions at Shipps Corner and comply with HRSD Standards and Preferences, two pump brands are acceptable: Flygt and Fairbanks Morse. The Fairbanks pump is taller (9 feet versus 7 feet, 3 inches) and heavier (7,500 pounds versus 5,650 pounds) than the Flygt pump. Because of its added height and weight, the Fairbanks pump cannot be installed in the existing station. Use of the Fairbanks pump would require the addition of roof hatches because the structure cannot be safely retrofitted to support the load of lifting the larger, heavier pump. The structural modifications and added complexities of servicing these pumps (including crane rental when a pump needs to be removed) make the Fairbanks pump option not practical.

Resource: Jim Pletl

CONSENT AGENDA ITEM 1.e.3. – May 24, 2016 Subject: ISCO Flow Meters, Samplers, Probes and Related Accessories Sole Source (>$10,000) Recommended Action: Approve ISCO flow meters, samplers, probes and related accessories for use by HRSD. Sole Source Justification:





Only known source Details: ISCO equipment and Flowlink® software provides monitoring and analysis of water quality at HRSD including 51 sites for the Master Metering and Management Operations and Maintenance programs. HRSD staff has the experience deploying, servicing, calibrating and troubleshooting this equipment and the associated software. All equipment is compatible and interchangeable with existing equipment. HRSD has a negotiated pricing agreement with ISCO for bulk discounts based on HRSD’s purchase volume.

Resource: Jim Pletl

CONSENT AGENDA ITEM 1.e.4. – May 24, 2016 Subject: Laboratory Total Organic Carbon (TOC) Analyzer Sole Source (>$10,000) Recommended Action: Approve GE Analytical Instruments Laboratory TOC Analyzer for use at the Central Environmental Laboratory. Sole Source Justification:





Only known source Details: Product provides support for HRSD’s Sustainable Water Recycling Initiative (SWRI). A low level TOC analyzer that is capable of generating accurate results at a parts per billion level is required for the SWRI project.

Resource: Steve de Mik

CONSENT AGENDA ITEM 1.e.5. – May 24, 2016 Subject: Primary Total Suspended Solids (TSS) Analyzer Sole Source (>$10,000) Recommended Action: Approve Toshiba TSS Analyzer for use at Nansemond Treatment Plant. Sole Source Justification:





Only known source Details: The TSS analyzer will be used to provide a continuous measurement of primary solids concentration. The analyzer will be located downstream of centrifugal or progressive cavity pumps. This analyzer was competitively bid, performance tested and purchased in 2015. The bid specification and performance test were specific to the Nansemond Treatment Plant operating conditions. The analyzer has been successfully operated for the last nine months at the Nansemond Treatment Plant.

Resource: Steve de Mik

CONSENT AGENDA ITEM 1.f.1. – May 24, 2016 Subject: Combination Jet Vacuum Sewer Cleaner HRSD Use of Existing Competitively Awarded Contract Vehicle (>$200,000) Recommended Action: Approve the use of the National Joint Powers Alliance (NJPA) contract for Sewer, Catch Basin Cleaners and Hydro-Excavators for a one-time purchase in the amount of $372,548 from Atlantic Machinery, Inc. HRSD Estimate: $372,548 Contract Description: This is for the purchase of a Combination Jet Vacuum Sewer Cleaner with all standard equipment for use by the Small Communities Division to clean dirt and debris from the sewage systems. NJPA is a national contracting agency that competitively solicits cooperative contract solutions. HRSD is eligible to use this competitively bid contract.


ATTACHMENT #2

AGENDA ITEM 2. – Fiscal Year-2017 Budgets

• FY-2017 to FY-2036 Financial Forecast

• Operating Budget

• Capital Budget

• Capital Improvement Program Summary • Rate Schedules

Annual BudgetFOR THE FISCAL YEAR ENDED JUNE 30, 2017

Ensuring future generations inherit clean waterways

HRSD Annual Budget For Fiscal Year Ended June 30, 2017

Table of Contents

I. Introduction Page

1

4

5

6

7

8

9

10

General Manager's Introduction

Principal Officials

Key Facts

Map

Organization Chart

History of HRSD

Rate Schedules

Reader’s Guide to the Annual Budget

Glossary of Financial Terms 13

II. Financial Forecast 15

III. 21

22

24

Operating Budget

Operating Budget Summary

Operating Budget Charts

Department Budgets

26

27

28

29

30

32

General Management

Finance

Information Technology

Talent Management

Operations

Engineering

Water Quality 33

General Expenses, Debt Service and Transfers 34

IV. 35 Capital Budget

FY-2017 to FY-2026 Cash Flow Projections 36

Introduction

Upgrading Treatment PlantsA $156 million project will replace

aging equipment, increase hydraulic capacity and further enhance nutrient removal at the Virginia Initiative Plant.

Photo by Backus Aerial Photography

General Manager’s Introduction

The voters of Virginia took the bold step in 1940 to address pollution in the Hampton Roads by approving a referendum creating the Hampton Roads Sanitation District (HRSD). That public approval capped a 15-year grassroots campaign that began when the shell fishing beds in the Hampton Roads were closed by the Virginia Department of Health. At the time, over 30 million gallons of untreated sewage was being dumped into the waters of the Hampton Roads each day. It would take the United States Congress another 32 years to tackle the issue of water pollution on a national scale, finally passing the Clean Water Act in 1972. Over the past 76 years, HRSD has developed into one of the premier wastewater treatment organizations in the nation. With 13 treatment plants capable of treating 249 million gallons of wastewater each day, HRSD has eliminated the discharge of untreated sewage into the waters of Hampton Roads from the homes and businesses within our region. However, there is more work to be done to further improve water quality as well as preserve our 76-year investment in wastewater infrastructure. The Governor appointed, eight-member HRSD Commission approved this Fiscal Year-2017 budget at its regular meeting on May 24, 2016. The Commission and the HRSD staff worked diligently to balance our focus on stewardship of our ratepayers’ hard earned dollars with our mission of stewardship of the waters of the Hampton Roads. The cost of wastewater treatment continues to rise here, as it does across the nation. However, wastewater treatment is still a bargain in Hampton Roads, with the typical household paying less than $30 per month for this essential service. That is less than one dollar each day to protect our treasured waterways.

Federal Mandates Drive HRSD Spending

The regional sewer system, although never designed to handle storm water, fills with rainwater runoff, groundwater and tidal water during larger storms. At times, the regional system fills beyond capacity and overflows onto local streets. While these occasional overflows have minimal impact on water quality, the U.S. Environmental Protection Agency has made minimizing these types of events a national priority and HRSD is under a Federal mandate to invest billions of dollars to further reduce the number and volume of overflows from the regional sewer system. In response to this mandate, HRSD is working throughout the region, in partnership with the local governments we serve, to minimize the impact of storm events on the regional sewer system and the waterways we value so greatly. The requirement to reduce the amount of nutrients that HRSD’s 13 treatment plants discharge into the Chesapeake Bay, another Federally mandated program, while not as large as the overflow mandate, has required a significant investment in infrastructure and process improvements. Major plant upgrades have been completed at the Nansemond Treatment Plant in Suffolk, the James River Treatment Plant in Newport News and the York River Treatment Plant in Seaford. Additional projects underway in Norfolk at the Army Base Treatment Plant and the Virginia Initiative Plant will ensure HRSD meets the 2017 milestone requirements of the Chesapeake Bay Total Maximum Daily Load.

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Pursuing Innovative Solutions to Reduce Costs and Protect Water Quality

HRSD continues to lead international research efforts to reduce the cost of removing nutrients from wastewater. HRSD’s research work is leveraged with partnerships with leading universities and other innovative wastewater utilities throughout the world. Putting the knowledge gained into practice has already yielded a significant return on our investment by reducing operational costs for nutrient removal as well as minimizing the capital investment required to construct new systems. Throughout HRSD’s history changing regulations have required development and implementation of innovative solutions to meet new standards to protect and restore the quality of the waters of Hampton Roads. Treatment processes have progressed from primary, to secondary, to our current advanced nutrient removal processes. Each regulatory change has required significant investment in new treatment processes. Under current regulations, the treated water HRSD discharges to area waterways is nearly clean enough to drink and substantially cleaner than the waterways themselves. With the addition of a few more treatment processes, HRSD can produce water that exceeds drinking water standards, likely to be the ultimate regulatory mandate at some point in the future. With the various water related challenges facing Hampton Roads and the Commonwealth, it appears there could be significant benefit from HRSD investing in additional treatment processes to treat water to exceed drinking water standards as soon as possible, even before that becomes a regulatory requirement. The challenges of restoring the Chesapeake Bay, the depletion of our groundwater reserves, the impact of sea level rise and the threat of salt water contamination of coastal groundwater may all be addressed with HRSD’s Sustainable Water Recycling Initiative. The concept is for HRSD to treat water to exceed drinking water standards and pump it into the ground to provide a sustainable source of groundwater, slow the rate at which the land is sinking due to over withdrawal of the groundwater, block salt water intrusion with a pressurized fresh water barrier and practically eliminate HRSD discharges to the York, James and Elizabeth Rivers. The benefits of this concept are significant and are needed immediately.

Financing a Sustainable Water Future

HRSD is pursuing the Sustainable Water Recycling Initiative with a goal of obtaining required approvals to construct beginning in 2020. HRSD is committed to implementing this initiative only if it can be accomplished within the financial framework laid out in the Financial Forecast as presented in this budget. To do that, many of the proposed capital improvements related to reducing system overflows will be deferred until after the Sustainable Water Recycling Initiative is complete. HRSD remains committed to eliminating system overflows; however, the impact of those transient events on local water quality is minimal and the benefits nearly unperceivable. In contrast, the positive impact the Sustainable Water Recycling Initiative will have on local waterways, eastern Virginia and the entire Chesapeake Bay is significant, will be immediately evident and critical to sustaining the vitality and prosperity of Hampton Roads and all of eastern Virginia for generations to come. Reducing overflows from the regional sewer system and reducing the amount of nutrients discharged by our treatment plants are both driven by regulations with which HRSD must comply. These regulatory mandates consume over two-thirds of the $1.5 billion 10-year Capital

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Improvement Plan. It is within that portion of our Capital Improvement Plan that we will reprioritize mandated projects to allow construction of the voluntary Sustainable Water Recycling Initiative to achieve significantly more environmental benefits without impacting our Financial Forecast. HRSD finances its capital projects by issuing bonds and using cash on hand. Our payments on outstanding debt will increase during the next fiscal year to just under $64 million. Despite our best efforts to control costs through efficiency, conservation and innovation, our operating expenses are projected to increase in FY-2017 from $141 million to $146 million. These increases continue to be heavily dictated by regulatory compliance. As a result of the increased operating costs and debt payments, our average residential customers will see their monthly bills increase by approximately $2.47.

The Community’s Role

Our ratepayers can help control their costs by helping us control ours. Ensuring storm water runoff from downspouts, area drains and sump pumps is not directed to the sanitary sewer system and that privately owned service piping is well maintained and leak free will reduce the amount of water in the sewer system. This ultimately lowers our costs to pump and treat the region’s wastewater. Collecting fats, oils and grease in a container for disposal in the trash as opposed to pouring them down the drain reduces wastewater system maintenance and operating costs. Proper disposal of unused medications (and other substances) prevents them from reaching our treatment plants, which are not designed for removal of such substances. By not flushing unused medications down the sink or the toilet, our ratepayers can make a difference. Each flush counts. As we reflect on 76 years of protecting public health and the waters of Hampton Roads, we remember the mandate so boldly declared by those environmentally concerned Virginians in 1940. It was their foresight that ensured we can enjoy the waters of Hampton Roads today. It will take our continued innovation, investment and foresight to ensure future generations will inherit clean waterways and be able to keep them clean. Sincerely,

Ted Henifin, P.E. General Manager

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Principal Officials June 30, 2016

COMMISSIONERS

Vishnu K. Lakdawala, PhD, Chair

Frederick N. Elofson, CPA, Vice-Chair

Michael E. Glenn Arthur C. Bredemeyer

Maurice P. Lynch, PhD Stephen C. Rodriguez

Susan M. Rotkis Willie Levenston, Jr.

COMMISSION SECRETARY

Jennifer L. Cascio

SENIOR STAFF

Edward G. Henifin, PE General Manager

Jay A. Bernas, PE Director of Finance

and Treasurer

Charles B. Bott, PhD, PE Director of Water Technology

and Research

Donald C. Corrado Director of Information

Technology

Steven G. de Mik, CPA Director of Operations

Paula A. Hogg Director of Talent Management

Phillip L. Hubbard, PE Special Assistant for

Compliance Assurance

Bruce W. Husselbee, PE Director of Engineering

James J. Pletl, PhD Director of Water Quality

COUNSEL

Kellam, Pickrell, Cox & Anderson, PC General Counsel

Jones, Blechman, Woltz & Kelly, PC Associate Counsel

AquaLaw, PLC

Special Counsel Sidley Austin, LLP

Bond Counsel

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Key Facts

Service Area and Operations

Date Established November 5, 1940

Communities Served 17 communities encompassing 2,808 square miles

HRSD is a political subdivision of the Commonwealth of Virginia, created for the specific purpose of water pollution abatement in Hampton Roads by providing a system of interceptor mains and wastewater treatment plants.

Population Served About 1.7 million, nearly one-fourth of Virginia’s population, reside in HRSD’s service area.

Operation and Facilities

No. of Positions (FY-2017) 818

Miles of Interceptor Systems 532 Miles

Wastewater Treated 152 million gallons per day average

Wastewater Capacity 249 million gallons per day average

Financial Information

Bond Ratings

Ratings Agency

Senior Debt Subordinate Long-term

Subordinate Short-term

Standard & Poor’s AA+ AA A-1+ Fitch Ratings AA+ AA F1+

Moody’s Investors Service Aa2 n/a n/a Operating Budget (FY-2017) $262,233,000

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7

2,808

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10

12

8

9

6

3

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Major facilities include the following treatment plants:

1. Atlantic, Virginia Beach 8. Williamsburg, James City County

3. Army Base, Norfolk9. York River, York County

4. Virginia Initiative, Norfolk10. West Point, King William County

5. Nansemond, Suffolk 12. Urbanna, Middlesex County6. Boat Harbor, Newport News 13. King William, King William County7. James River, Newport News

Serving the Cities ofChesapeake, Hampton,

Newport News, Norfolk,Poquoson, Portsmouth,Suffolk, Virginia Beach,Williamsburg, and the

Counties of Gloucester,Isle of Wight, James City,King William, Mathews,

Middlesex and York

Serving the Cities ofChesapeake, Hampton,Newport News, Norfolk,Poquoson, Portsmouth,Suffolk, Virginia Beach,

Williamsburg, and theCounties of Gloucester,

Isle of Wight, James CityKing and Queen,

King William, Mathews,Middlesex and York

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2. Chesapeake-Elizabeth, Va. Beach

11. Central Middlesex, Middlesex County

HRSDA Political Subdivision of the Commonwealth of Virginia

2016

_____________________________________________________________________________________

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Commission

General Manager

Director of Engineering

Asset Management

Design and Construction-NS

Design and Construction-SS

Planning and Analysis

Director of Finance

Accounting

Customer Care Center

Procurement

Director of Information Technology

Enterprise Data Services

Industrial Controls

Information Technology Operations

Director of Operations

Electrical and Energy

Management

Interceptor Systems-NS

Small Communities

Interceptor Systems-SS

Support Systems

Treatment Plants

AB-CE-VIP

Treatment Plants

AT-BH-NTP

Treatment Plants

JR-WB-YR

Director of Water Technology and

Research

Director of Talent

Management

Human Resources

Organizational Development and Training

Safety

Director of Water Quality

Central Environmental

Laboratory

Pretreatment and Pollution

Prevention

Technical Services

Chief of Communications

Commission Secretary

Special Assistant for Compliance Assurance

HRSD Organization Chart July 1, 2016

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History of HRSD June 30, 2015

HRSD can trace its beginnings to 1925 when the Virginia Department of Health condemned a large oyster producing area in Hampton Roads. The closure resulted in the Virginia General Assembly creating in 1927 a "Commission to Investigate and Survey the Seafood Industry of Virginia." Other studies recommended a public body to construct and operate a sewage system in the area. HRSD was named after Hampton Roads, a ship anchorage used for five centuries located near the convergence of the James, Elizabeth and Nansemond Rivers, before they flow into the Chesapeake Bay in southeastern Virginia.

In 1934, the Virginia General Assembly created the Hampton Roads Sanitation Disposal Commission with instructions to plan the elimination of pollution in Hampton Roads. Recommendations were made to the General Assembly, which resulted in the Sanitary Districts Law of 1938, along with "an Act to provide for and create the Hampton Roads Sanitation District." This Act required the qualified voters within HRSD to decide in a general election on November 8, 1938, if they favored creation of such a District. This referendum failed to gain a majority by about 500 votes out of nearly 20,000 votes cast. This led to a revision of the Act and another referendum was held on November 5, 1940, which resulted in a majority vote for the creation of the Hampton Roads Sanitation District.

The Enabling Act provides for HRSD to operate as a political subdivision of the Commonwealth of Virginia for the specific purpose of water pollution abatement in Hampton Roads by providing a system of interceptor mains and wastewater treatment plants. Its affairs are controlled by a Commission of eight members appointed by the Governor for four-year terms. Administration is under the direction of a General Manager.

HRSD began operations on July 1, 1946, using facilities acquired from the United States Government. The Warwick County Trunk Sewer, HRSD's first construction project, began on June 26, 1946, and was funded by HRSD's $6.5 million Primary Pledge Sewer Revenue Bonds, dated March 1, 1946. The first treatment plant, the Army Base Plant, began operation on October 14, 1947. Since that time, the facilities of HRSD have grown to provide sanitary sewer service to all major population centers in southeastern Virginia. The population served has increased from nearly 288,000 in 1940 to about 1.7 million in 2015.

Throughout its rich history HRSD has earned many of its industry’s most prestigious awards. This tradition continued as the National Association of Clean Water Agencies (NACWA) presented Peak Performance Awards to every HRSD treatment plant for outstanding compliance with National Pollutant Discharge Elimination System (NPDES) permits during calendar year 2014. The Army Base Treatment Plant was honored for 28 consecutive years of perfect permit compliance, an achievement unsurpassed in the nation. The other major treatment plants received the following awards in recognition of their outstanding permit compliance status: Atlantic Plant—Silver, Boat Harbor—Platinum (13 consecutive years), Chesapeake-Elizabeth—Platinum, James River—Gold, Nansemond—Platinum (13 consecutive years), Virginia Initiative Plant—Platinum (19 consecutive years), Williamsburg—Platinum (20 consecutive years) and York River— Platinum (7 consecutive years). Three treatment plants in the Small Communities Division, Central Middlesex, King William and West Point, earned Gold Awards while Urbanna received a Silver.

HRSD’s other Fiscal Year 2015 honors included one NACWA National Environmental Achievement Award in the Operations & Environmental Performance category and a second in the Research & Technology category for a joint initiative. HRSD and its partners also received a 2014 International Water Association Project Innovation Award for Applied Research. The US Green Building Council awarded Silver Leadership in Energy and Environmental Design (LEED) Certification for the South Shore Operations Center and the Elizabeth River Project recognized HRSD with a Living Lafayette Award. In addition, Team HRSD placed first overall in the International Operations Challenge Division 2 competition, a North Shore Interceptor Team received the Courageous Service Award presented by the Virginia Section of the American Water Works Association and the Chesapeake-Elizabeth Treatment Plant received the George W. Burke, Jr. Safety Award presented by the Virginia Water Environment Association.

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Service FY-2017 FY-2016

Flow (monthly basis) Per CCF * $ 4.51 $ 4.13 Minimum charge (per day) 0.30 0.25 Surcharge, per milligrams/liter per CCF In Excess of Biochemical Oxygen Demand (BOD) 282 mg/L $ 0.000206 $ 0.000485 Total Suspended Solids (TSS) 261 mg/L 0.000454 0.000448 Total Phosphorus (TP) 6 mg/L 0.011642 0.004361 Total Kjeldahl Nitrogen (TKN) 47 mg/L 0.001660 0.000917 Surcharge, per 100 pounds BOD 282 mg/L $ 3.30 $ 7.76 TSS 261 mg/L 7.27 7.18 TP 6 mg/L 186.49 69.85 TKN 47 mg/L 26.59 14.70

Septic, per gallon $ 0.1366 $ 0.1362

Private water supply (per 30-day period) Residential, non-metered Flat rate $ 29.32 $ 26.32

Meter Size FY-2017 FY-2016

5/8 Inch $ 1,895 $ 1,895 3/4 Inch 4,830 4,830 1 Inch 8,170 8,170 1 ½ Inch 17,260 17,260 2 Inch 30,510 29,420 3 Inch 70,800 67,350 4 Inch 128,660 122,400 6 Inch 298,610 284,070 8 Inch 542,680 516,260 10 Inch 862,550 820,560 12 Inch 1,259,520 1,198,210 14 Inch 1,734,700 1,650,250 16 Inch 2,289,010 2,177,580

Community FY-2017 FY-2016

West Point $ 13.61 $ 13.02 Mathews 11.37 10.86 Urbanna 13.50 13.00 King William 11.91 11.49

FY-2017 FY-2016

Damaged lock $ 100 $ 100 Service restoration 100 100 Meter reading (customer-owned meter) 75 75 Inaccessible meter 50 50 Returned payments 25 25 Delinquent 15 15 Deduction meter service 2 2

FEES AND SERVICE CHARGES

* CCF = 100 Cubic Feet (approximately 748 gallons)

Rate SchedulesWASTEWATER TREATMENT CHARGE SCHEDULE

VOLUME BASED FACILITY CHARGE SCHEDULE

MIDDLE PENINSULA CHARGE SCHEDULE(per 1,000 gallons)

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Reader’s Guide to the Annual Budget

PURPOSE The Annual Budget is an instrument that sets HRSD’s budgetary policy and authorization to raise revenues and spend funds each fiscal year. The development of the Annual Budget is guided by HRSD’s mission and vision statements:

• HRSD’s mission is to protect public health and the waters of Hampton Roads by treating wastewater effectively.

• HRSD’s vision is future generations will inherit clean waterways and be able to keep them clean.

ANNUAL BUDGET OVERVIEW HRSD’s Annual Budget contains the following sections:

Financial Forecast This section provides a high level, 20-year forecast of projected retail rate increases, operating revenues and expenses, capital improvements and related funding sources, amounts contributed to and fiscal year-end balances of cash and investment reserves, and selected financial ratios that help to measure the financial health of HRSD. The forecast is an inflationary based model where trends from past fiscal years and proposed operating budgets are used to forecast future operating needs. Transfers to reserves and to the Capital budget are forecast to be in amounts that are not less than parameters established within HRSD’s Financial Policy. Debt service for permanent financings are generally forecast to have a maximum term of 30 years at an interest rate that approximates 20-year average fixed rates for HRSD. Interim, or construction, financings’ interest rates are based on a 10-year historical average. Operating Budget The Operating Budget represents the authorization by the HRSD Commission to spend funds directly related to operating and maintaining HRSD’s programs and assets during the fiscal year. This section includes each department’s annual operating budgets. Those expenses that are not attributable to a specific department are assigned to “General Expenses.” Transfers represent authorization to transfer revenues raised from operations to either the Capital Budget or to various reserves established in HRSD’s Financial Policy. The Operating Budget Summary provides the budget by department and major object code classification. Department Budgets and General Expenses, Debt Service and Transfers detail budget expenditures by major object code classification. The number of full-time positions authorized for the fiscal year is provided by department.

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Capital Budget

The Capital Budget represents a plan of specific, major capital improvements over a period of ten fiscal years. The Capital Budget is not an approval or appropriation of funds for individual projects. There is no authorization or funding for individual projects until the Commission acts on the specific project. The Commission formally authorizes spending for individual projects throughout a fiscal year and generally upon project initiation.

The Summary Schedule details the funding sources for capital improvements as well as planned expenditures.

A formal, detailed, Capital Improvement Program with more specific project information is available at http://www.hrsd.com/capitalimprovementprogram.shtml.

HRSD’s budget authorizations, capital improvement plans, user rate setting practices and other significant financial practices are guided by HRSD’s Financial Policy. The Financial Policy is available at http://www.hrsd.com/finance.shtml.

HRSD’s Rate Schedule is available at http://www.hrsd.com/rateschedule.shtml.

BUDGETARY PROCESS

HRSD prepares its Annual Budget under the provisions of its enabling legislation and its Trust Agreement, dated March 1, 2008. In accordance with those provisions, the following process is used to adopt the Annual Budget:

The process begins in late December with the issuance of the Annual Budget Instructions by the General Manager. Each department completes its Operating Budget by March 1 for the General Manager’s review.

The HRSD Commission appoints a Finance Committee which typically consists of two Commissioners. The committee meets in early April to review the budgets. The Commission reviews these budgets during its April meeting.

The final Annual Budget, which incorporates the Operating and Capital Budgets, is presented at the May Commission meeting for adoption. The Commission simultaneously adopts the budget and any resulting wastewater rate schedule changes. All rate adjustments must be publically advertised four consecutive weeks before they can take effect.

The HRSD Commission approves any budget amendments during the fiscal year.

BUDGETARY ACCOUNTING AND CONTROL

HRSD operates in accordance with annual operating and capital budgets prepared on a basis of accounting that is different from generally accepted accounting principles.

The Operating Budget is adopted by department, with budgetary controls exercised administratively by management at the department level. The General Manager is authorized to

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transfer funds among departments without further approval by the Commission. Appropriations lapse at the end of the fiscal year. Valid, outstanding encumbrances (those for which performance under a contract is expected in the next year) are re-appropriated without further approval by the Commission and become part of the subsequent year’s budget. The Capital Budget represents a ten-year plan. Funds for the Capital Budget are adopted throughout a fiscal year on a project basis. Transfers among projects require approval by the Commission. Appropriations for these budgets continue until the purpose of the appropriation has been fulfilled.

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Glossary of Financial Terms

Appropriation: An authorization granted by the Commission to incur obligations for specific purposes. Appropriations are usually limited to amount, purpose and time. Basis of Accounting: HRSD’s financial statements report the financial position and results of operations of HRSD in accordance with generally accepted accounting principles in the United States of America (GAAP). Bond Ratings: A grade given to bonds that represents a measure of their credit quality. Private independent rating services such as Standard & Poor's, Moody's and Fitch provide these evaluations of a bond issuer's financial strength, or its the ability to pay a bond's principal and interest in a timely fashion. Capital Improvement Program (CIP): Ten-year plan for major non-recurring facility, infrastructure, or acquisition expenditures that expand or improve HRSD and/or community assets. Projects included in the CIP include physical descriptions, implementation schedules, year of expenditure cost and funding source estimates, and an indication of HRSD Commission priorities and community benefits Centum Cubic Feet (CCF): Typical unit in which industrial-consumption of natural gas or water is measured; each CCF being 100 cubic-feet. CIP Percent Cash Funded: Percent of each year’s capital improvement plan funded with cash through transfers from operations. HRSD’s Financial Policy requires that at least 15 percent of each year’s planned capital improvements be funded with cash. This ratio indicates the amount of capital improvements that are not leveraged. Debt Service: Amount of money necessary to pay principal and interest on bonds outstanding. Debt Service as a Percent of Revenues: Total revenues divided by total debt service. This ratio measures the debt service burden compared to total revenues. General Reserve as Percent of Operating Revenues: Unrestricted cash and investments at fiscal year-end that are not earmarked for another purpose divided by budgeted appropriations for Operations adjusted by certain adjustments required by GAAP. HRSD’s Financial Policy requires that the General Reserve at the end of any fiscal year not be less than 270 – 365 (75-100 percent) days of the current years’ projected operating and maintenance expenses less depreciation. This reserve is intended to help HRSD cover unanticipated expenses that cannot be paid from the current fiscal year’s budgetary resources. Liquidity Ratio: Unrestricted cash and investments divided by Maximum Annual Debt Service. This ratio measures the liquidity available to meet debt service requirements. Risk Management Reserve: HRSD maintains a self-insurance program for some of its risk exposures. HRSD’S Financial Policy requires HRSD to maintain a Risk Management Reserve as of the end of the fiscal year of not less than 25 percent of projected annual self-insured claims costs for known, retained risks.

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Maximum Annual Debt Service: Represents the greatest long-term debt service requirement for the then current or succeeding fiscal year. Senior Debt Service Coverage: Current-year revenues available for debt service divided by current-year senior lien debt service. This ratio indicates the financial margin to meet current senior lien debt service with current revenues available. HRSD’s Financial Policy requires that Senior Debt Service Coverage will not be less than 1.5 times senior lien debt service. When calculating compliance with this coverage requirement, HRSD may make reasonable adjustments to the net revenues as presented on a basis consistent with generally accepted accounting principles. HRSD’s Senior Trust Agreement requires Senior Debt Service Coverage, which is determined by dividing the Income Available for Debt Service by the Maximum Annual Debt Service, will not be less than 1.2 times. Total Debt Service (GAAP): Current-year net revenues available for total debt service divided by current-year total debt service accordingly to Generally Accepted Accounting Principles (GAAP). Total debt service represents the combination of senior lien and subordinate lien debt service. This ratio indicates the financial margin to meet current both senior lien debt service and subordinate lien debt service with current revenues available. Total Debt Service (Adjusted): Current-year net revenues available for total debt service divided by current-year total debt service excluding expenses for improvements that will not be owned by HRSD, but which will, in the reasonable determination of the Commission, as evidenced by a resolution thereof, maintain or improve the integrity of the Wastewater System. Total debt service represents the combination of senior lien and subordinate lien debt service. This ratio indicates the financial margin to meet current both senior lien debt service and subordinate lien debt service with current revenues available. HRSD’s Financial Policy requires that total debt service coverage (adjusted) will not be less than 1.4 times total debt service. HRSD’s Trust Agreement requires that Total Debt Service Coverage will not be less than 1.2 times total debt service coverage (adjusted). Trust Agreement: The formal agreement between bond holders, acting through a trustee, and HRSD.

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Financial Forecast

Increasing Energy EfficiencyThe Atlantic Treatment Plant system that generates renewable power and

heat from digester gas provides 35 percent of the plant’s electricity.

Photo by Mark Rhodes

Financial Forecast (in thousands) 2017 2018 2019 2020Operating Budget ForecastRate and Fees Increase - % 9% 9% 9% 9%RevenuesOperating Revenues 251,863$ 271,372$ 292,040$ 314,343$ Non-Operating Revenues 10,370 10,683 10,689 10,717 Total Revenues 262,233$ 282,056$ 302,729$ 325,060$

Operations 137,198$ 145,219$ 152,225$ 159,555$ Major Repairs and Replacements 7,425 7,722 8,031 8,352 Capital Acquisitions 1,454 1,513 1,573 1,636 Total Operating Appropriations 146,077 154,453 161,829 169,543

Debt Service 63,795 64,394 63,848 63,911 Transfer to Capital Improvement Plan (PAYGO) 52,101 63,062 75,270 74,020 Transfer to General Reserve - - 1,561 17,368 Transfer to Risk Management Reserve 260 147 220 219 Total Appropriations 262,233$ 282,056$ 302,729$ 325,060$

Capital Improvement Budget ForecastBeginning Capital Reserves 66,361$ 72,861$ 31,523$ -$ Sources of Funds Debt Funded 75,000 - 9,207 60,980 HRSD - Cash 52,101 63,062 75,270 74,020 Grants and Other Reimbursements 9,400 5,600 2,000 - Transfer from Debt Service Reserve Fund - - - - Total Capital Resources 202,861 141,523 118,000 135,000 Uses of Funds - Capital Expenditures 130,000 110,000 118,000 135,000 Ending Capital Resources 72,861$ 31,523$ -$ -$ Reserves Balance ForecastGeneral Reserve as a % of Operating Expenses 82% 82% 75% 75%General Reserve 129,400$ 129,400$ 130,961$ 148,329$ Risk Reserve 3,001 3,148 3,369 3,588 Debt Service Reserve Fund 31,754 31,754 31,754 31,754 Total Reserves Balance 164,155$ 164,302$ 166,084$ 183,671$ Financial Ratios ForecastSenior Debt Service Coverage (GAAP) 2.98 3.31 3.47 3.45Subordinate Debt Service Coverage (GAAP) 3.85 4.68 4.88 4.83Total Debt Service Coverage (GAAP) 1.68 1.94 2.02 2.01

Senior Debt Service Coverage (Adjusted) 3.02 3.29 3.66 3.97Subordinate Debt Service Coverage (Adjusted) 3.91 4.66 5.15 5.56Total Debt Service Coverage (Adjusted) 1.70 1.93 2.14 2.31

CIP % Cash Funded (current year contributions) 40% 57% 64% 55%Debt Service as a % of Total Revenues 24% 23% 21% 20%

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Financial Forecast (in thousands)Operating Budget ForecastRate and Fees Increase - %RevenuesOperating RevenuesNon-Operating RevenuesTotal Revenues

OperationsMajor Repairs and ReplacementsCapital AcquisitionsTotal Operating Appropriations

Debt ServiceTransfer to Capital Improvement Plan (PAYGO)Transfer to General ReserveTransfer to Risk Management ReserveTotal Appropriations

Capital Improvement Budget ForecastBeginning Capital ReservesSources of Funds Debt Funded HRSD - Cash Grants and Other Reimbursements Transfer from Debt Service Reserve FundTotal Capital ResourcesUses of Funds - Capital ExpendituresEnding Capital ResourcesReserves Balance ForecastGeneral Reserve as a % of Operating ExpensesGeneral ReserveRisk Reserve Debt Service Reserve FundTotal Reserves Balance

Financial Ratios ForecastSenior Debt Service Coverage (GAAP)Subordinate Debt Service Coverage (GAAP)Total Debt Service Coverage (GAAP)

Senior Debt Service Coverage (Adjusted)Subordinate Debt Service Coverage (Adjusted)Total Debt Service Coverage (Adjusted)

CIP % Cash Funded (current year contributions)Debt Service as a % of Total Revenues

2021 2022 2023 2024

9% 9% 9% 7%

338,735$ 364,645$ 392,518$ 415,400$ 10,979 11,184 11,418 11,772

349,714$ 375,829$ 403,935$ 427,171$

167,501$ 175,191$ 183,818$ 192,849$ 8,686 9,034 9,395 9,771 1,701 1,769 1,840 1,914

177,889 185,994 195,053 204,533

63,404 63,192 64,880 73,710 94,471 110,598 119,733 137,535 13,717 15,953 24,014 11,122

233 91 254 271 349,714$ 375,829$ 403,935$ 427,171$

-$ -$ -$ -$

41,029 20,402 37,267 44,965 94,471 110,598 119,733 137,535

- 1,000 - - - - - -

135,500 132,000 157,000 182,500 135,500 132,000 157,000 182,500

-$ -$ -$ -$

75% 75% 75% 75%162,046$ 177,999$ 202,014$ 213,135$

3,821 3,912 4,166 4,437 31,754 31,754 31,754 31,754

197,621$ 213,666$ 237,934$ 249,327$

3.79 4.09 3.99 4.284.87 4.88 4.49 3.622.13 2.22 2.11 1.96

4.65 5.33 5.87 6.425.97 6.36 6.59 5.432.61 2.90 3.10 2.94

70% 84% 76% 75%18% 17% 16% 17%

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2025 2026 2027 2028

7% 7% 7% 6%

439,766$ 465,565$ 492,750$ 517,016$ 12,548 12,821 13,052 13,974

452,314$ 478,387$ 505,802$ 530,990$

202,408$ 214,561$ 225,419$ 236,928$ 10,161 10,568 10,991 11,430 1,990 2,070 2,153 2,239

214,560 227,199 238,563 250,597

73,332 72,748 89,809 85,635 147,335 163,616 164,946 178,324 16,798 14,517 12,157 16,085

288 307 327 348 452,314$ 478,387$ 505,802$ 530,990$

-$ -$ -$ -$

35,165 77,763 88,039 86,167 147,335 163,616 164,946 178,324

- - - - - - - -

182,500 241,379 252,985 264,491 182,500 241,379 252,985 264,491

-$ -$ -$ -$

75% 75% 75% 75%229,933$ 244,450$ 256,607$ 272,692$

4,726 5,033 5,360 5,708 31,754 31,754 31,754 31,754

266,413$ 281,237$ 293,721$ 310,155$

5.50 5.93 7.99 8.283.16 3.30 2.41 2.592.01 2.12 1.85 1.97

8.52 9.31 12.72 13.324.90 5.18 3.84 4.173.11 3.33 2.94 3.18

81% 68% 65% 67%16% 15% 18% 16%

17








2029 2030 2031 2032

6% 6% 6% 6%

542,190$ 568,699$ 596,499$ 625,544$ 14,268 14,272 14,485 14,708

556,458$ 582,971$ 610,984$ 640,252$

249,133$ 262,081$ 275,823$ 290,415$ 11,888 12,363 12,858 13,372 2,329 2,422 2,519 2,619

263,349 276,866 291,199 306,406

81,732 83,349 102,338 95,659 199,313 210,031 204,018 224,009 11,693 12,330 13,008 13,730

371 395 421 448 556,458$ 582,971$ 610,984$ 640,252$

-$ -$ -$ -$

67,516 83,549 97,426 93,590 199,313 210,031 204,018 224,009

- - - - 10,000 - - -

276,829 293,581 301,444 317,599 276,829 293,581 301,444 317,599

-$ -$ -$ -$

75% 75% 75% 75%284,385$ 296,715$ 309,723$ 323,453$

6,079 6,474 6,895 7,343 21,754 21,754 21,754 21,754

312,219$ 324,944$ 338,373$ 352,550$

8.81 9.36 19.27 22.182.91 3.00 2.19 2.452.19 2.27 1.96 2.20

14.04 14.79 30.67 34.254.65 4.73 3.49 3.783.49 3.58 3.13 3.40

72% 72% 68% 71%15% 14% 17% 15%

18








2033 2034 2035 2036

6% 6% 6% 6%

656,238$ 688,080$ 721,909$ 757,222$ 14,943 15,190 15,449 15,523

671,181$ 703,270$ 737,359$ 772,745$

305,915$ 322,386$ 339,897$ 358,520$ 13,907 14,463 15,041 15,643 2,724 2,833 2,946 3,064

322,546 339,682 357,885 377,228

109,184 109,390 107,807 125,913 224,476 238,372 254,936 251,908 14,498 15,317 16,190 17,120

477 508 541 577 671,181$ 703,270$ 737,359$ 772,745$

-$ -$ -$ -$

120,028 119,526 107,913 135,855 224,476 238,372 254,936 251,908

- - - - - - 10,000 -

344,504 357,898 372,849 387,763 344,504 357,898 372,849 387,763

-$ -$ -$ -$

75% 75% 75% 75%337,951$ 353,268$ 369,457$ 386,577$

7,821 8,329 8,870 9,447 21,754 21,754 11,754 11,754

367,526$ 383,351$ 390,082$ 407,779$

23.72 25.13 27.09 28.922.23 2.36 2.50 2.222.04 2.16 2.29 2.06

36.82 38.26 40.77 43.953.46 3.60 3.76 3.373.16 3.29 3.44 3.13

65% 67% 68% 65%16% 16% 15% 16%

19

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20

Operating Budget

Building New PipelinesMicro tunneling is one of the

methods used to replace 6,000 linear feet of pipe in Downtown Norfolk

installed in the 1940s.

Photo by Will Gibson, PE, AECOM Project Manager

Adopted Increase/ PercentFY-2017 FY-2016 (Decrease) Change

Operating RevenuesWastewater Treatment Charges 249,743,000$ 228,700,000$ 21,043,000$ 9%Miscellaneous 2,120,000 2,050,000 70,000 3%

Total Operating Revenues 251,863,000 230,750,000 21,113,000 9%

Non-Operating RevenuesWastewater Facility Charges 5,850,000 6,000,000 (150,000) (3%)Investment Earnings 1,400,000 1,400,000 - 0%Build America Bond Subsidy 2,400,000 2,400,000 - 0%Other 720,000 1,090,000 (370,000) (34%)

Total Non-Operating Revenues 10,370,000 10,890,000 (520,000) (5%)

Total Revenues 262,233,000$ 241,640,000$ 20,593,000$ 9%

Operating AppropriationsGeneral Management 952,913$ 891,401$ 61,512$ 7%Finance 13,274,002 12,704,429 569,573 4%Information Technology 15,318,700 13,125,870 2,192,830 17%Talent Management 2,243,164 2,151,542 91,622 4%Operations 90,913,570 87,476,569 3,437,001 4%Engineering 5,667,444 5,169,527 497,917 10%Water Quality 13,477,883 13,681,951 (204,068) (1%)General Expenses 4,177,026 5,673,205 (1,496,179) (26%)

Total Operating Appropriations 146,024,702 140,874,494 5,150,208 4%

Appropriations for Debt Service and TransfersDebt Service 63,847,000 60,522,000 3,325,000 5%Transfer to CIP 52,101,298 39,983,506 12,117,792 30%Transfer to Risk Management Reserve 260,000 260,000 - 0%

Total Appropriations for Debt Service and Transfers 116,208,298 100,765,506 15,442,792 15%

Total Appropriations 262,233,000$ 241,640,000$ 20,593,000$ 9%

Operating Budget

21

General Information Talent Water General Management Finance Technology Management Operations Engineering Quality Expenses

Personal Services 624,432$ 5,867,981$ 4,229,958$ 1,329,872$ 31,696,205$ 3,526,675$ 6,996,034$ (1,750,003)$ Fringe Benefits 200,081 2,621,566 1,579,216 557,652 14,905,386 1,402,754 2,965,813 44,996 Materials & Supplies 10,000 131,127 948,500 65,500 4,628,977 25,100 1,156,170 60,000 Transportation 32,400 108,110 68,651 26,300 943,369 71,458 193,431 - Utilities - 266,600 1,424,700 - 9,884,191 - - 535,000 Chemical Purchases - - - - 9,210,500 - - - Contractual Services 85,000 4,004,364 5,310,200 48,800 12,404,645 510,062 723,250 5,153,500 Major Repairs - - 1,500,000 - 5,767,907 - 157,000 - Capital Assets - 35,000 - - 564,400 - 855,000 - Miscellaneous Expense 1,000 239,254 257,475 215,040 907,990 131,395 431,185 133,533

Operating Approporiations 952,913$ 13,274,002$ 15,318,700$ 2,243,164$ 90,913,570$ 5,667,444$ 13,477,883$ 4,177,026$

Full-time Positions:

Current 4 98 46 14 502 39 104

Changes 0 2 2 1 5 0 1

Budgeted 4 100 48 15 507 39 105


22

Percent FY-2016 Increase/ PercentFY-2017 of Budget Budget Decrease Inc/(Dec)

Personal Services 52,521,154$ 20.0% 53,040,035$ (518,881)$ (1%)Fringe Benefits 24,277,464 9.3% 24,385,426$ (107,962) (0%)Materials & Supplies 7,025,374 2.7% 5,648,453$ 1,376,921 24%Transportation 1,443,719 0.6% 1,330,169$ 113,550 9%Utilities 12,110,491 4.6% 12,304,591$ (194,100) (2%)Chemical Purchases 9,210,500 3.5% 8,454,600$ 755,900 9%Contractual Services 28,239,821 10.8% 22,528,143$ 5,711,678 25%Major Repairs 7,424,907 2.8% 8,120,920$ (696,013) (9%)Capital Assets 1,454,400 0.6% 2,880,000$ (1,425,600) (50%)Miscellaneous Expense 2,316,872 0.9% 2,182,157$ 134,715 6%

Operating Approporiations 146,024,702 55.7% 140,874,494 5,150,208 4%

Debt Service Costs 63,847,000 24.3% 60,522,000 3,325,000 5%Transfer to CIP 52,101,298 19.9% 39,983,506 12,117,792 30%Transfer to Risk Management 260,000 0.1% 260,000 0 0%

Appropriations for Debt Service and Transfers 116,208,298 44.3% 100,765,506 15,442,792 15%

262,233,000$ 100.0% 241,640,000$ 20,593,000$ 9%

Full-time Positions:

Current 807

Changes 11

Budgeted 818


23


Wastewater Treatment Charges

$249,743,000

Miscellaneous $2,120,000

Wastewater Facility Charges

$5,850,000 Investment Earnings

$1,400,000

Build America Bond Subsidy

$2,400,000

Other $720,000

Revenues and Transfers In $262,233,000

24


General Management $952,913

Talent Management $2,243,164

Finance $13,274,002

Information Technology $15,318,700

Operations $90,913,570

Engineering $5,667,444

Water Quality $13,477,883

General Expenses $4,177,026

Debt Service $63,847,000

Transfer to CIP $52,101,298

Transfer to General Reserve

$260,000

Expenses and Transfers Out $262,233,000

25

FY-2017 FY-2016 Increase/ Percentage Budget Budget (Decrease) Change

Personal Services 624,432$ 583,803$ 40,629$ 7%Fringe Benefits 200,081 178,243 21,838 12%Material & Supplies 10,000 10,000 - 0%Transportation 32,400 32,400 - 0%Utilities - - - 0%Chemical Purchases - - - 0%Contractual Services 85,000 85,000 - 0%Major Repairs - - - 0%Capital Assets - - - 0%Miscellaneous 1,000 1,955 (955) (49%)Total 952,913$ 891,401$ 61,512$ 7%

GradeAdopted FY-

2016 AdjustmentsFinal FY-

2016 Adjustments FY-2017General Manager 1 1 1Special Assistant for Compliance Assurance 12 1 1 1Chief of Communications 11 1 1 1Commission Secretary 6 1 1 1Total 4 0 4 0 4

Positions

General ManagementThe General Manager supervises the department directors, Chief of Communications, Commission Secretary and theSpecial Assistant for Compliance Assurance. The Communications Division supports HRSD's mission throughcommunications, community outreach and education programs. The Commission Secretary provides administrativesupport to the General Manager as well as the HRSD Commission. The Special Assistant for Compliance Assuranceworks closely with representatives of local jurisdictions, DEQ and EPA to ensure appropriate and timely adherence to therequirements of regulatory wet weather enforcement actions.

Expenditure Budget

26

FY-2017 FY-2016 Increase/ PercentageBudget Budget (Decrease) Change

Personal Services 5,867,981$ 5,939,017$ (71,036)$ (1%)Fringe Benefits 2,621,566 2,622,188 (622) (0%)Material & Supplies 131,127 128,158 2,969 2%Transportation 108,110 108,200 (90) (0%)Utilities 266,600 263,291 3,309 1%Contractual Services 4,004,364 3,354,732 649,632 19%Capital Assets 35,000 32,500 2,500 8%Miscellaneous 239,254 256,343 (17,089) (7%)Total 13,274,002$ 12,704,429$ 569,573$ 4%

GradeAdopted FY-

2016 Adjustments Final FY-2016 Adjustments FY-2017Director of Finance 12 1 1 1Chief of Accounting & Finance 11 1 1 1Chief of Customer Care Center (CCC) 11 1 1 1Chief of Procurement 11 1 1 1Accounting Manager 9 1 1 1CCC Manager 9 3 3 3Strategic Sourcing Manager 9 1 1 1Business Analyst 8 2 2 1 3Financial Analyst 8 2 2 2CCC Operations Manager 8 1 1 1CCC Supervisor 7 4 4 4Procurement Analyst 7 1 1 1Accounts Payable Supervisor 6 1 1 1Accounts Receivable Specialist 6 3 (1) 2 2Procurement Specialist 6 4 4 4Payroll Technician 5 1 1 1Accounting Coordinator 4 1 1 1Accounts Receivable Technician 4 3 3 3CCC Administrative Coordinator 4 1 1 1CCC Coordinator 4 4 4 4Procurement Coordinator 4 1 1 1Account Investigator 3 14 14 14Accounts Payable Associate 3 2 2 2CCC Account Representative 3 41 41 41Procurement Administrative Assistant 3 2 2 1 3Mail Processing Clerk 2 2 2 2Total 99 (1) 98 2 100

Positions

Finance DepartmentThe Finance Department is responsible for HRSD's general financial and business functions, including financial reporting,investment portfolio, debt and risk management, and customer billing. The Accounting and Finance Division handles fiscalaffairs such as preparing statements, budgets, management reports and payroll. The Procurement Division is responsible forpurchasing, renting, leasing or otherwise acquiring goods and services, managing vendor relationships and disposing ofsurplus property. The Customer Care Center Division handles billing, collections, maintenance of customer accounts andliaison with HRSD's customers.

Expenditure Budget

27


Personal Services 4,229,958$ 3,977,146$ 252,812$ 6%Fringe Benefits 1,579,216 1,496,084 83,132 6%Material & Supplies 948,500 819,600 128,900 16%Transportation 68,651 53,551 15,100 28%Utilities 1,424,700 1,326,800 97,900 7%Contractual Services 5,310,200 4,493,229 816,971 18%Major Repairs 1,500,000 750,000 750,000 100%Miscellaneous 257,475 209,460 48,015 23%Total 15,318,700$ 13,125,870$ 2,192,830$ 17%

GradeAdopted FY-


2016 Adjustments FY-2017Director of Information Technology 12 1 1 1Chief of Enterprise Data Services (EDS) 11 1 1 1Chief of Industrial Controls 11 1 1 1Chief of Information Technology (IT) 11 1 1 1Database Administrator 9 3 3 3Enterprise Architect 9 3 3 2 5Industrial Control Manager 9 1 1 1Oracle Developer 9 2 2 2Programming Development Manager 9 1 1 1Senior Systems Engineer 9 5 5 5Systems Analysis Manager 9 1 1 1Industrial Control Systems Manager 8 4 4 4Senior Programmer Analyst 8 6 6 6Senior Systems Analyst 8 3 3 3Unix Systems Administrator 8 2 2 2IT HelpDesk Supervisor 7 1 1 1Desktop Support Analyst 6 5 5 5Web Portal Programmer 5 1 1 1IT Administrative Coordinator 4 1 1 1Computer Operator 3 3 3 3Total 46 0 46 2 48

Positions

Information Technology DepartmentThe Information Technology Department is responsible for HRSD's computer systems, communication systems, networksystems, cyber security and data management functions. The Information Technology Operations Division assists HRSDdepartments in achieving their missions by ensuring all required hardware, storage and network devices are accessible andavailable to support all business and operational requirements. The Enterprise Data Services Division is responsible for datamanagement, storage and all software supporting HRSD operations. Industrial Controls Division personnel also areresponsible for programming industrial controls and automation at HRSD operation facilities.

Expenditure Budget

28


Personal Services 1,329,872$ 1,244,291$ 85,581$ 7%Fringe Benefits 557,652 505,250 52,402 10%Material & Supplies 65,500 64,500 1,000 2%Transportation 26,300 18,300 8,000 44%Contractual Services 48,800 79,400 (30,600) (39%)Capital Assets - 13,200 (13,200) (100%)Miscellaneous 215,040 226,601 (11,561) (5%)Total 2,243,164$ 2,151,542$ 91,622$ 4%

GradeAdopted FY-


2016 Adjustments FY-2017Director of Talent Management 12 1 1 1Human Resources Manager 9 0 0 1 1Organizational Developemnt & Training Manager 9 0 1 1 1Safety Manager 9 1 1 1Training Manager 9 1 (1) 0 0Human Resources Analyst 8 1 1 (1) 0Human Resources Business Analyst 8 0 0 1 1Industrial Hygienist 8 2 2 2Training Superintendent 8 1 1 1Human Resources Specialist 7 3 3 3Administrative Coordinator Quality 4 1 (1) 0 0Human Resources Coordinator 4 2 2 2ODT Coordinator 4 0 1 1 1Safety Coordinator 4 1 1 1Total 14 0 14 1 15

Positions

Talent ManagementThe Talent Management Department attracts new talent, develops talent and retains existing talent. The department maintains employee records, handles employee recruiting and orientation, administers employee benefits, oversees training and ensures employee safety.

Expenditure Budget

29


Personal Services 31,696,205$ 31,641,821$ 54,384$ 0%Fringe Benefits 14,905,386 14,814,423 90,963 1%Material & Supplies 4,628,977 3,468,300 1,160,677 33%Transportation 943,369 886,000 57,369 6%Utilities 9,884,191 10,179,500 (295,309) (3%)Chemical Purchases 9,210,500 8,454,600 755,900 9%Contractual Services 12,404,645 8,521,700 3,882,945 46%Major Repairs 5,767,907 6,518,600 (750,693) (12%)Capital Assets 564,400 2,182,300 (1,617,900) (74%)Miscellaneous 907,990 809,325 98,665 12%Total 90,913,570$ 87,476,569$ 3,437,001$ 4%

GradeAdopted FY-

2016 Adjustments Final FY-2016 Adjustments FY-2017Director of Operations 12 1 1 1Director of Water Technology and Research 12 1 1 1Chief of Electrical & Energy Management 11 1 1 1Chief of Interceptor Operations 11 0 2 2 2Chief of Interceptor Operations - NS 11 1 (1) 0 0Chief of Interceptor Operations - SS 11 1 (1) 0 0Senior Plant Manager 11 3 3 3Electrical Manager 9 2 2 2Instrumentation Manager 9 0 1 1 1Interceptor Engineer 9 3 (2) 1 1Plant Manager 9 6 6 6Process Engineering & Research Manager 9 1 1 1Water Recycling Project Manager 9 0 1 1 1Support Systems Manager 9 1 1 1Systems Manager 9 2 1 3 3Automotive Superintendent 8 1 1 1Electrical Superintendent 8 1 1 1Facility Superintendent 8 1 1 1Industrial Control Systems Manager 8 1 (1) 0 0Instrumentation Supervisor 8 2 2 2Interceptor Superintendent 8 3 3 3Maintenance Superintendent 8 1 (1) 0 0Plant Superintendent 8 0 18 18 18Plant Maint Superintendent 8 9 (9) 0 0Plant Ops Superintendent 8 9 (9) 0 0Chief Foreman Pump Station 7 0 2 2 2Chief Systems Operator 7 1 1 1Coatings Inspector 7 0 0 2 2Electrical Supervisor 7 2 2 2Structural & Roofing Inspector 7 1 1 1Instrumentation Specialist 7 27 1 28 28Interceptor Chief Foreman 7 5 (2) 3 3Operations Support Specialist 7 1 1 1

Expenditure Budget

Positions

Operations DepartmentThe Operations Department is responsible for operating and maintaining all of HRSD's treatment plants, pump stations,pipelines, buildings and equipment. The department also includes the Director of Water Technology and Researchdeveloping new technology with a focus on rapid deployment of innovative solutions. Services are delivered through sevendivisions. There are three treatment plant divisions (each with 3 treatment plants) treating wastewater from over 1.5 millionpeople in 13 cities and counties in Hampton Roads. The Small Communities Division operates four smaller treatment plantsand all the associated sewer collection systems for four counties on the Middle Peninsula, including the Town of West Point.The Electrical and Energy Management Division supports the electrical and instrumentation maintenance and constructionneeds of all HRSD facilities. The Interceptor Division operates and maintains over 500 miles of interceptor pipelines andover 100 pump stations ensuring wastewater is conveyed to each treatment plant. The Support Systems Division isresponsible for the maintenance of the HRSD fleet, all buildings and operates two carpentry shops and a full service machineshop.

30

GradeAdopted FY-

2016 Adjustments Final FY-2016 Adjustments FY-2017Automotive Foreman 6 2 2 2Condition Assessment Supervisor 6 1 1 1Electrician 6 28 28 28Engineering Assistant 6 3 1 4 4Interceptor Foreman 6 7 7 7Interceptor Systems Supervisor 6 1 1 1Lead Operator 6 31 31 31Machinist Foreman 6 1 1 1Maintenance Specialist 6 2 1 3 3Pump Station Supervisor 6 1 1 1SCADA Technician 6 1 (1) 0 0Automotive Technician 5 5 5 5Carpenter 5 4 4 4Equipment Technician 5 4 (1) 3 3Facility Maintenance Technician 5 2 2 2Interceptor Technician 5 28 3 31 31Machinist 5 3 3 3Maintenance Operator 5 56 1 57 57Plant Operator 5 73 (1) 72 72Heavy Equipment Operator 1 4 22 22 22Materials Operations Coordinator 4 2 2 2Operations Administrative Coordinator 4 1 1 1Operations Coordinator 4 2 2 2Utility Locator 4 1 (1) 0 0Automotive Administrative Assistant 3 1 1 1Support Systems Administrative Assistant 3 1 1 1Utility Administrative Assistant 3 2 2 2SCADA Administrative Assistant 3 1 1 1Interceptor Assistant 2 28 28 28Maintenance Operations Assistant 2 55 1 56 56Plant Clerk 2 9 9 9Custodian 1 0 2 2 2Facility Assistant 1 12 (2) 10 2 12

Subtotal - Operations 478 3 481 4 485

Small CommunitiesSystems Manager 9 1 1 1Systems Superintendent 8 1 1 1Systems Chief Foreman 7 1 1 1Systems Lead Operator 6 3 3 3Systems Operator 5 11 11 11Administrative Coordinator 4 1 1 1Heavy Equipment Operator I 4 0 1 1 1Heavy Equipment Operator II 3 1 (1) 0 0Maintenance Operations Assistant 2 2 2 2Facility Assistant 1 0 0 1 1

Subtotal - Small Communities 21 0 21 1 22

Total 499 3 502 5 507

31

FY-2017 FY-2016 Increase/ PercentageBudget Budget (Decrease) Change

Personal Services 3,526,675$ 3,392,629$ 134,046$ 4%Fringe Benefits 1,402,754 1,275,940 126,814 10%Material & Supplies 25,100 22,120 2,980 13%Transportation 71,458 68,288 3,170 5%Contractual Services 510,062 259,512 250,550 97%Major Repairs - 50,000 (50,000) (100%)Miscellaneous 131,395 101,038 30,357 30%Total 5,667,444$ 5,169,527$ 497,917$ 10%

GradeAdopted FY-

2016 Adjustments Final FY-2016 Adjustments FY-2017Director of Engineering 12 1 1 1Chief of Asset Management 11 1 1 1Chief of Condition Assessment 11 0 1 1 1Chief of Design & Construction 11 2 2 2Chief of Planning & Analysis 11 1 1 1Capital Program Manager 9 1 1 1Data Analysis Manager 9 1 1 1GIS Manager 9 1 1 1Hydraulic Analysis Manager 9 4 4 4Project Manager 9 10 (1) 9 9Real Estate Manager 8 1 1 1Data Analyst 7 3 3 3GIS Analyst 7 2 2 2CMMS Analyst 6 1 1 1Community Relations Liaison 6 1 1 1Contract Specialist 6 2 2 2GIS CAD Technician 5 3 3 3Data Analysis Technician 4 1 1 1Administrative Coordinator 4 1 1 1CMMS Administrative Assistant 3 1 1 1Engineering Clerk 2 1 1 1Total 39 0 39 0 39

Positions

Engineering DepartmentThe Engineering Department is responsible for HRSD facility planning, design and construction and related support. TheAsset Management Division is responsible for managing asset information including condition to inform all maintenance,replacement and capital planning decisions. The Design and Construction Division works with consultants and contractors toensure that work is performed in a manner consistent with our quality standards. The Planning and Analysis Divisionmanages the Capital Improvement Program, Hydraulic Modeling, Geographic Information System (GIS), Data Analysis andRecords Management System and plans the infrastructure required to meet the region's future wastewater needs.

Expenditure Budget

32


Personal Services 6,996,034$ 6,861,328$ 134,706$ 2%Fringe Benefits 2,965,813 2,929,743 36,070 1%Material & Supplies 1,156,170 1,075,775 80,395 7%Transportation 193,431 163,430 30,001 18%Contractual Services 723,250 756,820 (33,570) (4%)Major Repairs 157,000 802,320 (645,320) (80%)Capital Assets 855,000 652,000 203,000 31%Miscellaneous 431,185 440,535 (9,350) (2%)Total 13,477,883$ 13,681,951$ (204,068)$ (1%)

GradeAdopted FY-

2016 Adjustments Final FY-2016 Adjustments FY-2017Director of Water Quality (WQ) 12 1 1 1Chief of Lab 11 1 1 1Chief of P3 11 1 1 1Chief of TSD 11 1 1 1Environmental Scientist 9 6 1 7 7Lab Manager 9 4 4 4Lab Quality Assurance Manager 9 1 1 1P3 Manager 9 4 4 4Permit Manager 9 1 (1) 0 0Recycling Manager 9 1 1 1Lab Operations Manager 8 1 1 1TSD Operations Manager 8 1 1 1Lab EDMS Administrator 7 1 1 1Lab Supervising Chemist 7 11 11 11P3 Supervising Specialist 7 2 1 3 3TSD Supervising Specialist 7 3 3 3EDMS Analyst 6 1 1 1Lab Quality Assurance Specialist 6 2 (1) 1 1Lab Specialist 6 0 13 13 13P3 Specialist 6 0 2 2 2TSD Specialist 6 0 5 5 5WQ Specialist 6 18 (18) 0 0Lab Technician 5 5 5 5P3 Administrative Technician 5 1 1 1P3 Technician 5 0 11 11 11TSD Technician 5 0 3 3 3WQ Technician 5 14 (14) 0 0P3 Administrative Coordinator 4 1 1 1Lab Data Coordinator 4 2 (1) 1 1MAP Coordinator 4 0 1 1 1TSD Operations Coordinator 4 1 1 1WQ Administrative Coordinator 4 1 1 1P3 Administrative Assistant 3 2 2 2TSD Investigator 3 7 7 7Lab Assistant 2 6 6 1 7TSD Assistant 2 1 1 1Total 102 2 104 1 105

Expenditure Budget

Positions

Water Quality DepartmentThe Water Quality Department's mission is to provide quality environmental services to support HRSD and its partners. Thisdepartment helps ensure compliance with HRSD environmental permits and leads regulatory advocacy efforts through thework of three divisions. The Central Environmental Laboratory Division (Lab) provides analytical support for numerousmonitoring, research and regulatory purposes. The Pretreatment and Pollution Prevention Division (P3) monitors wastewaterconveyed to treatment plants and implements its industrial permit regulations to protect treatment plant staff, facilities andprocesses. The Technical Services Division (TSD) is responsible for a number of activities including environmentalmonitoring, specialized sampling, treatment process and research studies as well as all reporting required by HRSD permits.

33


Personal Services (1,750,003)$ (600,000)$ (1,150,003)$ 192%Fringe Benefits 44,996 563,555 (518,559) (92%)Material & Supplies 60,000 60,000 - 0%Utilities 535,000 535,000 - 0%Contractual Services 5,153,500 4,977,750 175,750 4%Miscellaneous 133,533 136,900 (3,367) (2%)Total General Expenses 4,177,026$ 5,673,205$ (1,496,179)$ (26%)

Publically Sold Bonds - Principal 16,780,000 18,780,000 (2,000,000)$ (11%)Publically Sold Bonds - Interest 29,979,180 26,906,584 3,072,596 11%VRLF Bonds 16,187,820 13,935,416 2,252,404 16%Cost of Issuance 900,000 900,000 - 100%

Subtotal - Debt Service 63,847,000 60,522,000 3,325,000 5%

Transfer to CIP 52,101,298 39,983,506 12,117,792 30%Transfer to Risk Management 260,000 260,000 - 0%

Subtotal - Transfers 52,361,298 40,243,506 12,117,792 30%

Total Debt Service and Transfers 116,208,298$ 100,765,506$ 15,442,792$ 15%

General Expenses, Debt Service and Transfers

Expenditure Budget

General Expenses includes operating expenditures not assigned to any specific HRSD Department.

34

Capital Budget

Renewing InfrastructureThe new York River Treatment

Plant outfall crosses a Dominion Virginia Power plant canal.

Photo by Ann Copeland, PE, HRSD Project Manager

Capital Budget HRSD prepares a Capital Improvement Program (CIP) each year for the capital projects currently underway or proposed for the future. The first year of the CIP is authorized as the Capital Budget for FY-2017 in the amount of $130 million. The remaining years (FY-2018 to FY-2026) include all known projects planned for these years; however, approval of the plan does not authorize the Capital Budgets for those years. Each year’s Capital Budget will be approved during the budget process for the specific year. The ten-year Capital Improvement Program for FY-2017 to FY-2026 highlights the anticipated cost of each project and the fiscal year(s) in which the work is expected to occur. All costs listed in the CIP are stated in current year dollars and total approximately $1.5 billion.

The bond component of the plan may include one or all of the following:

• Interim or construction financings • Federally subsidized borrowing programs administered by the Virginia Resource Authority • HRSD Revenue Bonds or Notes

The grant component represents funds estimated to be received from a federal or state agency for specific projects. Other reimbursements, if any, include amounts paid by other parties who may participate in a project.

CIP Budget Forecast (in thousands)

Total FY-2017 to FY-2026 FY-2017 FY-2018 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023 FY-2024 FY-2025 FY-2026

Begin Capital Reserves 66,361$ 66,361$ 72,861$ 31,523$ -$ -$ -$ -$ -$ -$ -$ Bonds 401,778 75,000 - 9,207 60,980 41,029 20,402 37,267 44,965 35,165 77,763 Cash 1,037,741 52,101 63,062 75,270 74,020 94,471 110,598 119,733 137,535 147,335 163,616

Grants and Other Reimbursements 18,000 9,400 5,600 2,000 - - 1,000 - - - -

Total Capital Resources 202,861 141,523 118,000 135,000 135,500 132,000 157,000 182,500 182,500 241,379 Capital Expenditures 1,523,879 130,000 110,000 118,000 135,000 135,500 132,000 157,000 182,500 182,500 241,379 End Capital Reserves -$ 72,861$ 31,523$ -$ -$ -$ -$ -$ -$ -$ -$

Capital Expenditures (in thousands)

Total FY-2017 to FY-2026 FY-2017 FY-2018 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023 FY-2024 FY-2025 FY-2026

Administration $ 4,099 4,099$ -$ $ - $ - $ - $ - $ - $ - $ - $ - Army Base 26,430 2,000 - - - 1,785 5,282 14,882 2,480 - - Atlantic 69,800 5,318 18,872 17,089 11,826 1,985 991 3,319 5,492 4,908 - Boat Harbor 86,545 12,014 8,589 13,743 12,029 14,138 14,828 11,204 - - - Chesapeake-Elizabeth 106,089 3,423 6,799 24,717 32,952 25,262 8,301 3,627 1,008 - - James River 49,594 13,677 11,417 7,646 872 5,735 6,644 1,462 1,606 535 - Middle Peninsula 38,872 1,235 6,949 3,041 8,573 7,252 3,273 1,900 1,900 2,375 2,375 Nansemond 49,425 12,723 9,532 8,927 10,429 5,650 128 113 1,925 - - Virginia Initiative Plant 107,254 42,001 18,181 3,401 8,086 9,015 9,936 7,513 5,867 3,255 - Williamsburg 9,369 3,117 946 1,130 2,192 1,677 308 - - - - York River 26,020 7,187 1,223 1,124 692 1,759 3,984 3,935 3,876 2,203 36 General 158,666 23,204 25,336 18,161 13,314 12,135 13,461 14,533 12,835 12,709 12,979 Future Improvements 728,423 - - 13,402 27,609 42,656 58,580 87,037 136,820 147,824 214,495 Subtotal 1,460,585 130,000 107,843 112,381 128,571 129,048 125,714 149,524 173,810 173,810 229,885 Contingency 63,293 - 2,157 5,619 6,429 6,452 6,286 7,476 8,690 8,690 11,494 Total Expenditures $ 1,523,878 130,000$ 110,000$ $ 118,000 $ 135,000 $ 135,500 $ 132,000 $ 157,000 $ 182,500 $ 182,500 $ 241,379

35

FY-2017 to FY-2026Cash Flow Projections (in thousands)

CIP No Project Name Total FY-2017

to FY-2026 FY-2017 FY-2018 FY-2019 FY-2020

AD010400 Environmental Data Management System 291$ 291$ -$ -$ -$ AD011800 Central Environmental Laboratory Roof Replacement 1,481$ 1,481$ -$ -$ -$ AD011900 Central Environmental Laboratory HVAC 2,022$ 2,022$ -$ -$ -$ AD012000 Water Quality Department Work Space Expansion/Redesign 306$ 306$ -$ -$ -$

4,099$ 4,099$ -$ -$ -$

AB010000 Army Base 24-Inch and 20-Inch Transmission Main Replacements 22,339$ -$ -$ -$ -$ AB010100 Army Base Treatment Plant Improvements - Phase III 2,000$ 2,000$ -$ -$ -$ AB010500 Section W Force Main Replacement 2,090$ -$ -$ -$ -$

26,430$ 2,000$ -$ -$ -$

AT011410 Providence Road Interim Pressure Reducing Station 661$ -$ 661$ -$ -$ AT011510 Shipps Corner Interim Pressure Reducing Station 2,284$ 1,757$ 527$ -$ -$ AT011520 Shipps Corner Pressure Reducing Station Modifications 4,851$ -$ -$ -$ -$ AT011900 Great Bridge Interceptor Extension 16-Inch Replacement 4,357$ -$ -$ -$ -$ AT012000 Atlantic Treatment Plant Administration Building Renovation and 2,631$ (0)$ 2,631$ -$ -$ AT012300 Dominion Boulevard Force Main Relocations (Chesapeake) 657$ 657$ -$ -$ -$ AT012910 Atlantic Treatment Plant FOG Receiving Station 3,305$ 300$ 925$ 925$ 925$ AT013000 Washington District Pump Station Area Sanitary Sewer Improvements 1,357$ -$ 10$ 72$ 51$ AT013100 South Norfolk Area Gravity Sewer Improvements 5,048$ -$ -$ -$ 90$

AT013200Doziers Corner Pump Station and Washington District Pump Station Flooding Mitigation Improvements 238$ -$ -$ -$ -$

AT013320Atlantic Treatment Plant Primary Clarifiers 1 thru 4 Automated Scum Removal 1,003$ 548$ 455$ -$ -$

AT013500 Atlantic Treatment Plant Thermal Hydrolysis Process 42,636$ 2,051$ 13,169$ 15,822$ 10,760$ AT013600 Atlantic Treatment Plant Motor Control Center Replacements 476$ 6$ 222$ 248$ -$

AT013700Atlantic Trunk Interceptor Force Main Relocation (VDOT Laskin Road Betterment) 295$ -$ 272$ 23$ -$

69,800$ 5,318$ 18,872$ 17,089$ 11,826$

BH010000 33rd Street Pump Station Replacement Rehabilitation 2,169$ 2,169$ -$ -$ -$ BH010100 58th Street Connecting Sewer Rehabilitation 971$ 971$ -$ -$ -$ BH011600 Bridge Street Pump Station Replacement 10,197$ 6,788$ 3,409$ -$ -$ BH012000 Hampton Trunk Sewer Extension Division E Gravity Replacement 1,562$ 1,202$ 360$ -$ -$ BH012700 Hampton Trunk Sewer Extension Division B - Claremont Force Main 3,844$ -$ 5$ 3,839$ -$ BH013000 Willard Avenue Pump Station Upgrades 5,224$ -$ -$ 502$ 2,696$ BH013400 Bridge Street Siphon and Vent Relocation Replacement 457$ 457$ -$ -$ -$ BH013700 Ferguson Park Interceptor Force Main - Bridge Span Relocation 1,021$ 102$ 919$ -$ -$ BH014000 West Avenue and 35th Street Interceptor Force Main Replacement 3,137$ -$ -$ -$ -$ BH014210 Hampton Trunk Sewer Extension Divisions I and J Relocation Phase I 107$ 107$ -$ -$ -$ BH014220 Hampton Trunk Sewer Extension Divisions I and J Relocation Phase II 11,172$ -$ -$ 745$ 2,572$ BH014500 Ivy Home-Shell Road Sewer Extension Division I Replacement 1,804$ -$ -$ -$ -$ BH014600 46th Street Diversion Sewer Rehabilitation Replacement 9,497$ 23$ 280$ 330$ 1,308$ BH014700 Boat Harbor Outlet Sewer Improvements 3,463$ 62$ 200$ 143$ 2,043$ BH014800 Jefferson Avenue Extension Gravity Improvements 2,375$ 132$ 124$ 1,331$ 788$ BH014900 Hampton Trunk Sewer Extension Division K Gravity Improvements 3,549$ -$ -$ -$ 167$ BH015000 Orcutt Avenue and Mercury Blvd Gravity Sewer Improvements 5,788$ -$ 60$ 3,608$ 2,120$ BH015100 Bloxoms Corner Force Main Replacement 2,638$ -$ -$ -$ 98$ BH015300 Boat Harbor Treatment Plant Switchgear and Controls Replacements 6,479$ 1$ 3,233$ 3,245$ -$ BH015500 LaSalle Avenue Interceptor Force Main Replacement 1,730$ -$ -$ -$ 64$ BH015600 Hampton Trunk A and B Replacement – Jefferson Ave. to Buxton 9,360$ -$ -$ -$ 173$

86,545$ 12,014$ 8,589$ 13,743$ 12,029$

Administration

Army Base

Atlantic

Boat Harbor

Subtotal

Subtotal

Subtotal

Subtotal

36


CIP No Project Name

AD010400 Environmental Data Management SystemAD011800 Central Environmental Laboratory Roof ReplacementAD011900 Central Environmental Laboratory HVACAD012000 Water Quality Department Work Space Expansion/Redesign

AB010000 Army Base 24-Inch and 20-Inch Transmission Main ReplacementsAB010100 Army Base Treatment Plant Improvements - Phase IIIAB010500 Section W Force Main Replacement

AT011410 Providence Road Interim Pressure Reducing StationAT011510 Shipps Corner Interim Pressure Reducing StationAT011520 Shipps Corner Pressure Reducing Station ModificationsAT011900 Great Bridge Interceptor Extension 16-Inch ReplacementAT012000 Atlantic Treatment Plant Administration Building Renovation and AT012300 Dominion Boulevard Force Main Relocations (Chesapeake)AT012910 Atlantic Treatment Plant FOG Receiving StationAT013000 Washington District Pump Station Area Sanitary Sewer ImprovementsAT013100 South Norfolk Area Gravity Sewer Improvements

AT013200Doziers Corner Pump Station and Washington District Pump Station Flooding Mitigation Improvements

AT013320Atlantic Treatment Plant Primary Clarifiers 1 thru 4 Automated Scum Removal

AT013500 Atlantic Treatment Plant Thermal Hydrolysis ProcessAT013600 Atlantic Treatment Plant Motor Control Center Replacements

AT013700Atlantic Trunk Interceptor Force Main Relocation (VDOT Laskin Road Betterment)

BH010000 33rd Street Pump Station Replacement RehabilitationBH010100 58th Street Connecting Sewer RehabilitationBH011600 Bridge Street Pump Station ReplacementBH012000 Hampton Trunk Sewer Extension Division E Gravity ReplacementBH012700 Hampton Trunk Sewer Extension Division B - Claremont Force Main BH013000 Willard Avenue Pump Station UpgradesBH013400 Bridge Street Siphon and Vent Relocation ReplacementBH013700 Ferguson Park Interceptor Force Main - Bridge Span RelocationBH014000 West Avenue and 35th Street Interceptor Force Main ReplacementBH014210 Hampton Trunk Sewer Extension Divisions I and J Relocation Phase IBH014220 Hampton Trunk Sewer Extension Divisions I and J Relocation Phase IIBH014500 Ivy Home-Shell Road Sewer Extension Division I ReplacementBH014600 46th Street Diversion Sewer Rehabilitation ReplacementBH014700 Boat Harbor Outlet Sewer ImprovementsBH014800 Jefferson Avenue Extension Gravity ImprovementsBH014900 Hampton Trunk Sewer Extension Division K Gravity ImprovementsBH015000 Orcutt Avenue and Mercury Blvd Gravity Sewer ImprovementsBH015100 Bloxoms Corner Force Main ReplacementBH015300 Boat Harbor Treatment Plant Switchgear and Controls ReplacementsBH015500 LaSalle Avenue Interceptor Force Main ReplacementBH015600 Hampton Trunk A and B Replacement – Jefferson Ave. to Buxton

Administration

Army Base

Atlantic

Boat Harbor

Subtotal

Subtotal

Subtotal

Subtotal

FY-2021 FY-2022 FY-2023 FY-2024 FY-2025 FY-2026

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

1,607$ 4,832$ 13,629$ 2,271$ -$ -$ -$ -$ -$ -$ -$ -$

178$ 450$ 1,253$ 209$ -$ -$ 1,785$ 5,282$ 14,882$ 2,480$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

86$ 129$ 98$ 1,877$ 2,661$ -$ -$ 20$ 177$ 2,099$ 2,061$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

231$ -$ -$ -$ -$ -$ 574$ 651$ -$ -$ -$ -$ 260$ 191$ 3,028$ 1,479$ -$ -$

-$ -$ 15$ 36$ 187$ -$

-$ -$ -$ -$ -$ -$ 834$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ 1,985$ 991$ 3,319$ 5,492$ 4,908$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

2,026$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

97$ 1,152$ 1,888$ -$ -$ -$ -$ -$ -$ -$ -$ -$

4,277$ 3,571$ 8$ -$ -$ -$ 14$ 522$ 1,269$ -$ -$ -$

4,770$ 2,787$ 1$ -$ -$ -$ 1,015$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ 171$ 1,132$ 2,080$ -$ -$ -$

-$ -$ -$ -$ -$ -$ 149$ 735$ 1,656$ -$ -$ -$

-$ -$ -$ -$ -$ -$ 1,038$ 628$ -$ -$ -$ -$

583$ 4,301$ 4,303$ -$ -$ -$ 14,138$ 14,828$ 11,204$ -$ -$ -$

37



to FY-2026 FY-2017 FY-2018 FY-2019 FY-2020

CE010400 Independence Boulevard Pressure Reducing Station Modifications 1,796$ 30$ 168$ 667$ 931$ CE010510 Newtown Road Force Main Valving 1,651$ 90$ 1,077$ 484$ -$ CE010520 Newtown Road Interceptor Force Main Relocation 7,015$ 77$ 317$ 242$ 3,590$ CE011200 Central Trunk Interceptor Force Main A & B Main Line Valves 204$ 204$ -$ -$ -$

CE011300Birchwood Trunk 24-Inch 30-Inch Force Main at Independence Boulevard Replacement Phase II 860$ -$ -$ -$ -$

CE011600 Poplar Hall Davis Corner Trunk 24-Inch Gravity Sewer Improvements 1,802$ -$ -$ -$ -$ CE011700 Western Trunk Force Main Replacement 3,598$ 258$ 227$ 220$ 1,397$ CE011810 Chesapeake-Elizabeth Regional Off-Line Storage Facility 23,992$ -$ -$ 888$ 4,816$ CE011820 Chesapeake-Elizabeth Interceptor System Diversion Improvements 65,170$ 2,765$ 5,011$ 22,217$ 22,217$

106,089$ 3,423$ 6,799$ 24,717$ 32,952$

JR010100 Center Avenue Pump Station Service Area I I Remediation 196$ 196$ -$ -$ -$ JR010600 Lucas Creek Pump Station Upgrade 6,347$ -$ 331$ 6,016$ -$ JR010820 Warwick Boulevard to James River Influent Force Main Section 2 6,885$ 5,496$ 1,389$ -$ -$ JR011000 Middle Ground Boulevard - City Center Interconnect Force Main 400$ 400$ -$ -$ -$ JR011100 Warwick Boulevard to James River Influent Force Main Section 1 6,010$ 1,508$ 3,590$ 912$ -$ JR011300 Patrick Henry Pump Station Interconnection Force Main 2,969$ -$ -$ -$ -$ JR011500 Center Avenue I-I Remediation Phase II 1,639$ 1,639$ -$ -$ -$ JR011720 Jefferson Avenue Interceptor Force Main Replacement Phase II 200$ 200$ -$ -$ -$ JR011730 Jefferson Avenue Interceptor Force Main Replacement Phase III 8,963$ -$ 143$ 254$ 560$ JR012020 Warwick Boulevard to James River Influent Force Main Section 3, 3,729$ 1,864$ 1,866$ -$ -$ JR012100 Huxley to Middle Ground Force Main Extension 2,056$ 212$ 1,698$ 146$ -$ JR012800 James River Treatment Plant Hydraulic Improvements 817$ 817$ -$ -$ -$ JR012900 James River Treatment Plant Centrate Equalization Improvements 897$ 897$ -$ -$ -$

JR013000Morrison Pump Station Discharge Force Main Replacement & Capacity Enhancements 1,130$ -$ -$ -$ 120$

JR013100 Lucas Creek-Woodhaven Interceptor Force Main Replacement Phase I 3,054$ 449$ 2,400$ 205$ -$ JR013200 Lucas Creek-Woodhaven Interceptor Force Main Replacement Phase II 4,302$ -$ -$ 113$ 192$

49,594$ 13,677$ 11,417$ 7,646$ 872$

MP011100Urbanna and Central Middlesex Treatment Plants Replacement and Expansion 14,697$ -$ -$ 1,612$ 5,188$

MP011200 Central Middlesex Collection System 4,323$ -$ 132$ 553$ 2,910$ MP011400 Mathews Collection System Vacuum Valve Replacement 803$ 419$ 384$ -$ -$

MP011700Middle Peninsula Interceptor Systems Pump Station Control and SCADA Upgrades and Enhancements 2,869$ 121$ 2,748$ -$ -$

MP011800 Kirby Street Sanitary Sewer Rehabilitation 358$ 218$ 140$ -$ -$ MP012000 King William Treatment Plant Improvements 1,640$ 135$ 1,500$ 5$ -$ MP012400 West Point Treatment Plant Tertiary Filter 524$ 65$ 414$ 45$ -$ MP012500 Mathews Main Vacuum Pump Station Replacement 1,639$ 133$ 1,155$ 351$ -$ MP012600 Urbanna Treatment Plant Structural Modifications 145$ 145$ -$ -$ -$ MP012700 Middle Peninsula Sewer Lateral Improvements 11,875$ -$ 475$ 475$ 475$

38,872$ 1,235$ 6,949$ 3,041$ 8,573$

NP010620 Suffolk Pump Station Replacement 10,105$ -$ 472$ 606$ 4,331$ NP011300 Suffolk Interceptor Force Main Section I Main Line Valving Replacement 992$ -$ -$ 662$ 331$ NP011810 Holland Road 24-Inch Interceptor Force Main - Section A Phase I 9,441$ 6,290$ 3,151$ -$ -$ NP011820 Holland Road 24-Inch Interceptor Force Main - Section A Phase II 2,019$ 2,019$ -$ -$ -$ NP012200 Pughsville Pressure Reducing Station Upgrades 2,406$ 2,406$ -$ -$ -$ NP012400 Western Branch Sewer System Gravity Improvements 2,183$ -$ -$ -$ -$ NP012500 Shingle Creek and Hickman's Branch Gravity Sewer Improvements 7,512$ -$ 355$ 1,503$ 5,220$ NP012600 Deep Creek Interceptor Force Main Replacement 5,561$ 364$ 3,211$ 1,986$ -$ NP012700 Nansemond Treatment Plant AAA Tank Coating 1,158$ 861$ 297$ -$ -$ NP013000 Nansemond Treatment Plant Motor Control Center Replacements 1,948$ -$ 500$ 400$ 548$ NP013300 Nansemond Treatment Plant Digester Rehabilitation 627$ 627$ -$ -$ -$ NP013400 Deep Creek Interceptor Force Main Risk Mitigation Project 2,024$ 157$ 1,246$ 621$ -$ NP013500 Nansemond Treatment Plant Land Acquisition-Land Stabilization 1,700$ -$ 300$ 1,400$ -$ NP013600 Nansemond Treatment Plant Land Acquisition-Structure Demolition 1,750$ -$ -$ 1,750$ -$

49,425$ 12,723$ 9,532$ 8,927$ 10,429$

Subtotal

Subtotal

Subtotal

Middle Peninsula

Nansemond

James River

Chesapeake-Elizabeth

Subtotal

38


CIP No Project Name

CE010400 Independence Boulevard Pressure Reducing Station ModificationsCE010510 Newtown Road Force Main ValvingCE010520 Newtown Road Interceptor Force Main RelocationCE011200 Central Trunk Interceptor Force Main A & B Main Line Valves

CE011300Birchwood Trunk 24-Inch 30-Inch Force Main at Independence Boulevard Replacement Phase II

CE011600 Poplar Hall Davis Corner Trunk 24-Inch Gravity Sewer ImprovementsCE011700 Western Trunk Force Main ReplacementCE011810 Chesapeake-Elizabeth Regional Off-Line Storage FacilityCE011820 Chesapeake-Elizabeth Interceptor System Diversion Improvements

JR010100 Center Avenue Pump Station Service Area I I RemediationJR010600 Lucas Creek Pump Station UpgradeJR010820 Warwick Boulevard to James River Influent Force Main Section 2JR011000 Middle Ground Boulevard - City Center Interconnect Force MainJR011100 Warwick Boulevard to James River Influent Force Main Section 1JR011300 Patrick Henry Pump Station Interconnection Force MainJR011500 Center Avenue I-I Remediation Phase IIJR011720 Jefferson Avenue Interceptor Force Main Replacement Phase IIJR011730 Jefferson Avenue Interceptor Force Main Replacement Phase IIIJR012020 Warwick Boulevard to James River Influent Force Main Section 3, JR012100 Huxley to Middle Ground Force Main ExtensionJR012800 James River Treatment Plant Hydraulic ImprovementsJR012900 James River Treatment Plant Centrate Equalization Improvements

JR013000Morrison Pump Station Discharge Force Main Replacement & Capacity Enhancements

JR013100 Lucas Creek-Woodhaven Interceptor Force Main Replacement Phase IJR013200 Lucas Creek-Woodhaven Interceptor Force Main Replacement Phase II

MP011100Urbanna and Central Middlesex Treatment Plants Replacement and Expansion

MP011200 Central Middlesex Collection SystemMP011400 Mathews Collection System Vacuum Valve Replacement

MP011700Middle Peninsula Interceptor Systems Pump Station Control and SCADA Upgrades and Enhancements

MP011800 Kirby Street Sanitary Sewer RehabilitationMP012000 King William Treatment Plant ImprovementsMP012400 West Point Treatment Plant Tertiary FilterMP012500 Mathews Main Vacuum Pump Station ReplacementMP012600 Urbanna Treatment Plant Structural ModificationsMP012700 Middle Peninsula Sewer Lateral Improvements

NP010620 Suffolk Pump Station ReplacementNP011300 Suffolk Interceptor Force Main Section I Main Line Valving ReplacementNP011810 Holland Road 24-Inch Interceptor Force Main - Section A Phase INP011820 Holland Road 24-Inch Interceptor Force Main - Section A Phase IINP012200 Pughsville Pressure Reducing Station UpgradesNP012400 Western Branch Sewer System Gravity ImprovementsNP012500 Shingle Creek and Hickman's Branch Gravity Sewer ImprovementsNP012600 Deep Creek Interceptor Force Main ReplacementNP012700 Nansemond Treatment Plant AAA Tank CoatingNP013000 Nansemond Treatment Plant Motor Control Center ReplacementsNP013300 Nansemond Treatment Plant Digester RehabilitationNP013400 Deep Creek Interceptor Force Main Risk Mitigation ProjectNP013500 Nansemond Treatment Plant Land Acquisition-Land StabilizationNP013600 Nansemond Treatment Plant Land Acquisition-Structure Demolition

Subtotal

Subtotal

Subtotal

Middle Peninsula

Nansemond

James River

Chesapeake-Elizabeth

Subtotal

FY-2021 FY-2022 FY-2023 FY-2024 FY-2025 FY-2026

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

2,790$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ 259$ 601$ -$ -$ -$ 20$ 126$ 648$ 1,008$ -$ -$

1,497$ -$ -$ -$ -$ -$ 7,995$ 7,916$ 2,377$ -$ -$ -$

12,960$ -$ -$ -$ -$ -$ 25,262$ 8,301$ 3,627$ 1,008$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 3$ 87$ 737$ 1,606$ 535$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

4,194$ 3,811$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

422$ 588$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

1,116$ 2,157$ 724$ -$ -$ -$ 5,735$ 6,644$ 1,462$ 1,606$ 535$ -$

5,574$ 2,323$ -$ -$ -$ -$ 727$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

950$ 950$ 1,900$ 1,900$ 2,375$ 2,375$ 7,252$ 3,273$ 1,900$ 1,900$ 2,375$ 2,375$

4,697$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

18$ 128$ 113$ 1,925$ -$ -$ 435$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

500$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

5,650$ 128$ 113$ 1,925$ -$ -$

39



to FY-2026 FY-2017 FY-2018 FY-2019 FY-2020

VP010910Norview Estabrook Division I 18-Inch Force Main Replacement Phase II, Section 1 (Norfolk Fairmount Park Phase IX) 1,621$ 241$ 1,380$ -$ -$

VP010920Norview Estabrook Division I 18-Inch Force Main Replacement Phase II, Section 2 1,013$ -$ -$ 32$ 64$

VP011020 Park Avenue Pump Station Replacement 3,165$ 169$ -$ 355$ 2,112$ VP011600 Sewerage System Improvements Division C, Phase II Replacement 1,602$ 1,468$ 133$ -$ -$ VP013000 Norchester Street Pump Station Replacement Rehabilitation (0)$ -$ -$ -$ -$ VP013200 South Trunk Sewer Section G 36-Inch and 30-Inch Force Main 4,766$ 4,064$ 702$ -$ -$ VP014010 Ferebee Avenue Pump Station Replacement 2,981$ 27$ 95$ 423$ 1,720$

VP014020Sanitary Sewer Project 1950 12 Inch Force Main and 24 and 18 Inch Gravity Replacement 4,604$ 43$ 117$ 239$ 2,655$

VP014500 South Trunk Sewer Section Q 12-Inch Force Main Replacement 2,435$ -$ -$ -$ -$ VP014700 Ingleside Road Pump Station Replacement 1,515$ -$ -$ -$ -$ VP014800 Lee Avenue-Wesley Street Horizontal Valve Replacement 1,029$ -$ -$ -$ -$ VP015300 Larchmont Area Pump Station Replacements 8,579$ -$ 21$ 245$ 500$ VP015400 Layfayette Norview-Estabrook Pump Station Replacements 8,421$ -$ 10$ 204$ 548$

VP015800Sanitary Sewer System Portsmouth Va Western Diversion Force Main Relcoation (VDOT Turnpike Road Betterment) 141$ -$ 141$ -$ -$

VP016200 South Trunk Section G 30 and 24-Inch Force Main Replacement 1,867$ 1,867$ -$ -$ -$ VP016320 Virginia Initiative Plant Nutrient Reduction Improvements Contract B 48,707$ 33,936$ 14,365$ 405$ -$ VP016500 Norview-Estabrook Division I 12-Inch Force Main Replacement 2,551$ -$ -$ -$ 26$ VP016600 Norview-Estabrook Division I 16-Inch Force Main Replacement 2,908$ -$ -$ -$ 10$ VP016700 Norview-Estabrook Division I 18-Inch Force Main Replacement Phase III 2,150$ 23$ 181$ 1,498$ 449$ VP017000 VIP Treatment Plant Incinerator Scrubber and ID Fans Replacement -$ -$ -$ -$ -$ VP017100 Central Norfolk Area Gravity Sewer Improvements 2,398$ -$ -$ -$ -$ VP017300 Rodman Avenue Pump Station Wet Well Rehabilitation 1,046$ 12$ 1,034$ -$ -$ VP017500 Effingham Street Interceptor Force Main Emergency Replacement 150$ 150$ -$ -$ -$

VP017800Portsmouth Virginia Outlet Sewer Federal Housing Project Division A Phase I Replacement 3,606$ -$ -$ -$ -$

107,254$ 42,001$ 18,181$ 3,401$ 8,086$

WB010700 Williamsburg Interceptor Force Main Contract A Replacement 3,094$ 3,094$ -$ -$ -$ WB012200 North Trunk Force Main Part B Replacement 564$ 23$ 21$ 295$ 225$ WB012400 Williamsburg Treatment Plant Switchgear Replacement 4,311$ -$ 925$ 770$ 1,847$ WB012500 Lodge Road Pump Station Upgrades 1,400$ -$ -$ 65$ 120$

9,369$ 3,117$ 946$ 1,130$ 2,192$

YR010300Foxridge Sanitary Sewer System Sections 1, 4 & 5 Gravity and Woodland Road Fox Hill Road Gravity Sewer Rehabilitation 2,877$ -$ -$ -$ -$

YR010520 Magruder Mercury Interceptor Force Main Replacement - Section B 3,922$ -$ -$ 63$ 306$ YR010530 Magruder Mercury Interceptor Force Main Replacement - Section C 5,163$ -$ -$ 30$ 53$ YR011900 Bethel-Poquoson Force Main Part III Replacement 1,137$ 139$ -$ 666$ 333$ YR012220 York River Treatment Plant Digester Cover Replacement Phase II 1,125$ -$ 896$ 229$ -$ YR012600 York River Treatment Plant Distributive Control System Upgrade 4,284$ -$ -$ -$ -$ YR013110 York River Treatment Plant Outfall and Diffuser Modifications 6,521$ 6,521$ -$ -$ -$ YR013140 York River Treatment Plant Environmental Studies and Habitat 841$ 377$ 327$ 136$ -$ YR013200 York River Treatment Plant Chemical Facility Improvements 100$ 100$ -$ -$ -$ YR013300 York River Treatment Plant Hypochlorite Tanks Replacement 50$ 50$ -$ -$ -$

26,020$ 7,187$ 1,223$ 1,124$ 692$

Subtotal

Subtotal

Virginia Initiative Plant

Williamsburg

York River

Subtotal

40


CIP No Project Name

VP010910Norview Estabrook Division I 18-Inch Force Main Replacement Phase II, Section 1 (Norfolk Fairmount Park Phase IX)

VP010920Norview Estabrook Division I 18-Inch Force Main Replacement Phase II, Section 2

VP011020 Park Avenue Pump Station ReplacementVP011600 Sewerage System Improvements Division C, Phase II ReplacementVP013000 Norchester Street Pump Station Replacement RehabilitationVP013200 South Trunk Sewer Section G 36-Inch and 30-Inch Force Main VP014010 Ferebee Avenue Pump Station Replacement

VP014020Sanitary Sewer Project 1950 12 Inch Force Main and 24 and 18 Inch Gravity Replacement

VP014500 South Trunk Sewer Section Q 12-Inch Force Main ReplacementVP014700 Ingleside Road Pump Station ReplacementVP014800 Lee Avenue-Wesley Street Horizontal Valve ReplacementVP015300 Larchmont Area Pump Station ReplacementsVP015400 Layfayette Norview-Estabrook Pump Station Replacements

VP015800Sanitary Sewer System Portsmouth Va Western Diversion Force Main Relcoation (VDOT Turnpike Road Betterment)

VP016200 South Trunk Section G 30 and 24-Inch Force Main ReplacementVP016320 Virginia Initiative Plant Nutrient Reduction Improvements Contract BVP016500 Norview-Estabrook Division I 12-Inch Force Main ReplacementVP016600 Norview-Estabrook Division I 16-Inch Force Main ReplacementVP016700 Norview-Estabrook Division I 18-Inch Force Main Replacement Phase IIIVP017000 VIP Treatment Plant Incinerator Scrubber and ID Fans ReplacementVP017100 Central Norfolk Area Gravity Sewer ImprovementsVP017300 Rodman Avenue Pump Station Wet Well RehabilitationVP017500 Effingham Street Interceptor Force Main Emergency Replacement

VP017800Portsmouth Virginia Outlet Sewer Federal Housing Project Division A Phase I Replacement

WB010700 Williamsburg Interceptor Force Main Contract A ReplacementWB012200 North Trunk Force Main Part B ReplacementWB012400 Williamsburg Treatment Plant Switchgear ReplacementWB012500 Lodge Road Pump Station Upgrades

YR010300Foxridge Sanitary Sewer System Sections 1, 4 & 5 Gravity and Woodland Road Fox Hill Road Gravity Sewer Rehabilitation

YR010520 Magruder Mercury Interceptor Force Main Replacement - Section BYR010530 Magruder Mercury Interceptor Force Main Replacement - Section CYR011900 Bethel-Poquoson Force Main Part III ReplacementYR012220 York River Treatment Plant Digester Cover Replacement Phase IIYR012600 York River Treatment Plant Distributive Control System UpgradeYR013110 York River Treatment Plant Outfall and Diffuser ModificationsYR013140 York River Treatment Plant Environmental Studies and Habitat YR013200 York River Treatment Plant Chemical Facility ImprovementsYR013300 York River Treatment Plant Hypochlorite Tanks Replacement

Subtotal

Subtotal

Virginia Initiative Plant

Williamsburg

York River

Subtotal

FY-2021 FY-2022 FY-2023 FY-2024 FY-2025 FY-2026

-$ -$ -$ -$ -$ -$

426$ 491$ -$ -$ -$ -$ 528$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

717$ -$ -$ -$ -$ -$

1,549$ -$ -$ -$ -$ -$ 8$ 105$ 106$ 1,183$ 1,033$ -$ -$ -$ 116$ 543$ 856$ -$ -$ 103$ 926$ -$ -$ -$

2,897$ 3,470$ 1,446$ -$ -$ -$ 2,556$ 3,401$ 1,700$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

187$ 1,624$ 714$ -$ -$ -$ 147$ 437$ 1,983$ 330$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 99$ 137$ 1,028$ 1,135$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ 206$ 384$ 2,783$ 232$ -$ 9,015$ 9,936$ 7,513$ 5,867$ 3,255$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

770$ -$ -$ -$ -$ -$ 907$ 308$ -$ -$ -$ -$

1,677$ 308$ -$ -$ -$ -$

-$ 210$ 1,386$ 1,282$ -$ -$ 1,289$ 2,263$ -$ -$ -$ -$

470$ 1,478$ 2,210$ 921$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 32$ 339$ 1,674$ 2,203$ 36$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

1,759$ 3,984$ 3,935$ 3,876$ 2,203$ 36$

41



to FY-2026 FY-2017 FY-2018 FY-2019 FY-2020

GN010730 Horizontal Valve Replacement Phase III 3,041$ -$ -$ 1,207$ 1,835$ GN011700 Pump Station Generators 5,428$ 700$ 1,363$ 1,122$ 1,122$ GN012110 Regional Hydraulic Model and Other Consent Order Requirements 8,100$ 4,600$ 1,500$ 1,000$ 1,000$ GN012113 Condition Assessment - Pipeline Prompts Repairs 15,000$ 1,500$ 1,500$ 1,500$ 1,500$ GN012114 Condition Assessment - Gravity Main Pipeline Inspection 3,000$ 500$ 500$ 250$ 250$ GN012115 Continued Condition Assessment 10,000$ 1,000$ 1,000$ 1,000$ 1,000$ GN012120 Private Property Inflow and Infiltration Program 132,944$ -$ -$ -$ 2,761$

GN012130Manhole Rehabilitation-Replacement Phase I and North Shore Siphon Chamber Rehabilitation Phase I 6,275$ 60$ 1,554$ 1,554$ 1,554$

GN012140 Pump Station Wet Well Rehabilitation Phase I 2,916$ 248$ 696$ 696$ 696$ GN012150 Locality System Monitoring and Condition Assessment 4,100$ 200$ 200$ 200$ 500$ GN012151 Locality Hydraulic Model 2,800$ 2,000$ 400$ 400$ -$

GN012800Interceptor Systems Pump Station Control and SCADA Upgrades and Enhancements 12,799$ 7,643$ 5,156$ -$ -$

GN013300 Treatment Plant Grease Handling Facilities 2,128$ 110$ 1,059$ 959$ -$ GN013800 North Shore Odor Control and Chemical Injection Study 149$ 149$ -$ -$ -$ GN013900 South Shore Interceptors Air Vent Rehabilitation 2,414$ 999$ 1,415$ -$ -$ GN014300 North Shore Operations Unvented High Spot Correction 575$ 575$ -$ -$ -$ GN014500 Renewable Energy Facility and Associated Plant Improvements 178,428$ -$ -$ -$ -$ GN014900 North Shore Gravity Sewer Improvements Phase I 4,308$ -$ -$ 76$ 238$ GN015000 South Shore Gravity Sewer Improvements Phase I 696$ -$ -$ -$ -$

GN015100Arctic Avenue Pump Station and Newtown Road Pump Station Electrical Improvements 473$ 209$ 264$ -$ -$

GN015300 Interceptor System Valve Improvements Phase I 2,465$ -$ -$ 70$ 149$ GN015400 South Shore Aerial Crossing Improvements 248$ -$ -$ -$ 4$ GN015700 Aquifer Replenishment System 1,924$ 1,924$ -$ -$ -$ GN015800 North Shore Automated Diversion Facilities 1,432$ 38$ 123$ 1,271$ -$ GN015900 PS and Plant Roof Replacement-Restoration Program Phase 1 1,818$ -$ 606$ 606$ 606$ GN016000 PS and Plant Roof Replacement-Restoration Program Phase 2 1,898$ -$ -$ -$ 100$ GN016100 PS and Plant Roof Replacement-Restoration Program Phase 3 1,295$ -$ -$ -$ -$ GN016200 Sustainable Water Recycling Phase 3 15,000$ 750$ 8,000$ 6,250$ -$

158,666$ 23,204$ 25,336$ 18,161$ 13,314$

IP010200 Treatment Plant Expansions and Improvements 81,231$ -$ -$ -$ -$ IP010300 General Expansions and Improvements 9,026$ -$ -$ -$ -$ IP010600 Treatment Plant Rehabilitation and Replacement 81,231$ -$ -$ -$ -$ IP010700 General Rehabilitation and Replacement 9,026$ -$ -$ -$ -$ IP010800 Regional Wet Weather Improvements 547,910$ -$ -$ 13,402$ 27,609$

728,423$ -$ -$ 13,402$ 27,609$ 1,460,585$ 130,000$ 107,843$ 112,381$ 128,571$

Future Improvements

CIP TOTALS

General

Subtotal

Subtotal

42


CIP No Project Name

GN010730 Horizontal Valve Replacement Phase IIIGN011700 Pump Station GeneratorsGN012110 Regional Hydraulic Model and Other Consent Order RequirementsGN012113 Condition Assessment - Pipeline Prompts RepairsGN012114 Condition Assessment - Gravity Main Pipeline InspectionGN012115 Continued Condition AssessmentGN012120 Private Property Inflow and Infiltration Program

GN012130Manhole Rehabilitation-Replacement Phase I and North Shore Siphon Chamber Rehabilitation Phase I

GN012140 Pump Station Wet Well Rehabilitation Phase IGN012150 Locality System Monitoring and Condition AssessmentGN012151 Locality Hydraulic Model

GN012800Interceptor Systems Pump Station Control and SCADA Upgrades and Enhancements

GN013300 Treatment Plant Grease Handling FacilitiesGN013800 North Shore Odor Control and Chemical Injection StudyGN013900 South Shore Interceptors Air Vent RehabilitationGN014300 North Shore Operations Unvented High Spot CorrectionGN014500 Renewable Energy Facility and Associated Plant ImprovementsGN014900 North Shore Gravity Sewer Improvements Phase IGN015000 South Shore Gravity Sewer Improvements Phase I

GN015100Arctic Avenue Pump Station and Newtown Road Pump Station Electrical Improvements

GN015300 Interceptor System Valve Improvements Phase IGN015400 South Shore Aerial Crossing ImprovementsGN015700 Aquifer Replenishment SystemGN015800 North Shore Automated Diversion FacilitiesGN015900 PS and Plant Roof Replacement-Restoration Program Phase 1GN016000 PS and Plant Roof Replacement-Restoration Program Phase 2GN016100 PS and Plant Roof Replacement-Restoration Program Phase 3GN016200 Sustainable Water Recycling Phase 3

IP010200 Treatment Plant Expansions and ImprovementsIP010300 General Expansions and ImprovementsIP010600 Treatment Plant Rehabilitation and ReplacementIP010700 General Rehabilitation and ReplacementIP010800 Regional Wet Weather Improvements

Future Improvements

CIP TOTALS

General

Subtotal

Subtotal

FY-2021 FY-2022 FY-2023 FY-2024 FY-2025 FY-2026

-$ -$ -$ -$ -$ -$ 1,122$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$

250$ 250$ 250$ 250$ 250$ 250$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 4,266$ 5,858$ 8,485$ 8,740$ 9,002$ 9,272$

1,554$ -$ -$ -$ -$ -$ 580$ -$ -$ -$ -$ -$ 500$ 500$ 500$ 500$ 500$ 500$

-$ -$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

203$ 2,381$ 1,410$ -$ -$ -$ 35$ 62$ 224$ 375$ -$ -$

-$ -$ -$ -$ -$ -$ 513$ 1,300$ 433$ -$ -$ -$ 14$ 10$ 130$ 90$ -$ -$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

600$ 600$ 600$ -$ -$ -$ -$ -$ -$ 381$ 457$ 457$ -$ -$ -$ -$ -$ -$

12,135$ 13,461$ 14,533$ 12,835$ 12,709$ 12,979$

-$ -$ 984$ 20,119$ 17,143$ 42,985$ -$ -$ 109$ 2,235$ 1,905$ 4,776$ -$ -$ 984$ 20,119$ 17,143$ 42,985$ -$ -$ 109$ 2,235$ 1,905$ 4,776$

42,656$ 58,580$ 84,850$ 92,110$ 109,729$ 118,974$ 42,656$ 58,580$ 87,037$ 136,820$ 147,824$ 214,495$

129,048$ 125,714$ 149,524$ 173,810$ 173,810$ 229,885$

43

This page was intentionally left blank

44

Printed on recycled paper using environmentally friendly inks

1434 Air Rail AvenueVirginia Beach, VA 23455

www.hrsd.com

Inspiring the next generation to pursue environmental careersHRSD offers challenging internship opportunities that attract top students. HRSD continues to lead international research efforts to reduce the cost of removing nutrients from wastewater. HRSD’s research work is leveraged with partnerships with leading universities and other innovative wastewater utilities throughout the world. Putting the knowledge gained into practice is yielding a significant return on ourinvestment by reducing operational costs for nutrient removal as well as minimizing the capital investment required to construct new systems.

Photo by Mark Rhodes


ATTACHMENT #3

AGENDA ITEM 5. – Extensometer Construction and Monitoring at

Nansemond Treatment Plant Agreement

*Proposal

*Joint Funding Agreement

1

PROPOSAL TO ESTABLISH AN EXTENSOMETER STATION AT THE NANSEMOND WASTEWATER TREATMENT PLANT IN SUFFOLK, VA

Proposed to: Hampton Roads Sanitation District Proposed by: US Geological Survey

Date of Proposal: May 20, 2016 Period of Project: July, 2016 to August, 2019

Summary: The Hampton Roads Sanitation District (HRSD) has started the Sustainable Water Recycling

Initiative, a program to inject treated wastewater into the subsurface. Injection of water into the

subsurface is expected to raise groundwater pressures, thereby potentially expanding the

aquifer system, raising the land surface, and counteracting land subsidence occurring in the

Virginia Coastal Plain. A pilot project site is under construction at the HRSD Nansemond

Wastewater Treatment Plant in Suffolk, Virginia, to test injection into the aquifer system. HRSD

has asked USGS to prepare a proposal for installation of an extensometer monitoring station at

the test site to monitor groundwater levels and aquifer compaction and expansion.

This proposal describes work to install and operate an extensometer station and presents a

budget and schedule. The extensometer station will consist of the subsurface borehole

extensometer structures, surface reference-frame structures, displacement sensors, data

logging and communication equipment, a cluster of four groundwater monitoring wells

(piezometers) that are instrumented for continuous water-level monitoring, a Global Navigational

Satellite System (GNSS) antennae for continuous position recording, and a surface building

containing the equipment.

Schedule: The extensometer station will be installed in year 1 and operated for years 1-3.

Budget: Total cost is $1,348,330 if the USGS installs the extensometer and the recommended four

piezometers. The cost is $1,054,035 if the piezometer cluster is omitted.

2

Proposal to establish an extensometer station at the Nansemond Wastewater Treatment Plant in Suffolk, Virginia

Problem Land subsidence has been observed at various locations in the southern Chesapeake Bay

region at rates of 1.1 to 4.8 millimeters per year (Eggleston and Pope, 2013; Holdahl and

Morrison, 1974). A major cause of land subsidence is extensive groundwater pumping that

causes regional aquifer-system compaction (Pope and Burbey, 2004). Although aquifer-system

compaction was measured from the late 1970s to the mid 1990’s at two stations in Virginia, at

Suffolk and Franklin (fig. 1), it has not been measured anywhere in Virginia since 1995. Regular

and highly accurate measurements of aquifer compaction are needed to provide information

critical for understanding coastal flooding; to protect water resources, natural habitat, and

historic sites; and to plan urban and coastal infrastructure in the region.

Injection of treated wastewater is expected to counteract land subsidence, or raise land surface

elevations in the region. Careful monitoring of aquifer system compaction and groundwater

levels can be used to optimize the injection process and to improve fundamental understanding

of the relation between groundwater pressures and aquifer-system compaction and expansion.

Construction of an extensometer monitoring station will provide the ability to accurately measure

land-surface elevations, bedrock-surface elevations, and changes in aquifer-system thickness.

Monitoring of groundwater levels and aquifer-system elastic response will benefit operation of

the wastewater injection system at the Nansemond facility and guide planning of future

wastewater injection facilities for the Sustainable Water Recycling Initiative.

Objectives The objectives of this study are to:

(1) Design and construct an extensometer station for collection of aquifer-system thickness

data with sub-millimeter accuracy for long-term (decadal) operation,

(2) Operate and maintain the station for at least 3 years to collect data describing

groundwater levels, land-surface and bedrock vertical motion, and changes in aquifer-

system thickness

3

Figure 1. Map showing location of the proposed extensometer station in Suffolk, Virginia.

Suffolk

Portsmouth

Norfolk City

Chesapeake

Newport News

Norfolk City

HRSD NansemondFacility

NORTH

Miles

0 2

4

Science Plan

The extensometer station will be designed and constructed to produce reliable and accurate

data describing aquifer thickness, groundwater levels, land-surface elevation, and bedrock

elevation for at least 20 years and likely for 40 years or more.

Extensometer Station Design -

The design of the extensometer at the HRSD Nansemond facility is based on the unique

experience of the USGS National Research Drilling Program (NDRP) installing extensometers

in many locations around the United States, including California, Texas, and Louisiana. Based

on this past experience we recommend including the following features (fig. 2) in the

extensometer instrument:

• Casing slip joints to accommodate the vertical stress and strain that accompany aquifer

compaction/expansion and that can cause casing failure.

• Casing centralizers and a counterweighted fulcrum at the surface to reduce friction and

sticking between the extensometer pipe and casing.

• Combining mechanical strain gages and digital potentiometers to achieve both accuracy

and long-term record continuity.

• Deep surface mount support piers for the reference table to exclude surface soil

compaction and heaving from the aquifer compaction/expansion signals.

• Heavy steel beam frames to support surface equipment.

5

Figure 2. Proposed design for an extensometer instrument at the HRSD Nansemond facility in

Suffolk, VA

grout

slip joints

2-inch steel pipe

6-inch steel casing(anchored to 14-inch surface casing with welded steel support wings)

14 inch surface casing

bentonite groutcement

about 30 feet

about 60 feet

~ 800 feet

~300 feet

estimated 2000 feet

cement

steel platecement drilled flat

centralizer

sand

instrument table

dial gagereferencesurface

4” steel support piers

HORIZONTAL and VERTICAL : NOT TO SCALE

fulcrum arm

fulcrum arm support

counte r-weights

threadedrod

concrete padat land surface

carpenter's level

linearpotentiometercore

rod

~ addtl. 60 feet

EXTENSOMETER SCHEMATIC - SUFFOLK, VIRGINIA

6

Monitoring Program

USGS will maintain the monitoring station, serve all data through the publically available NWIS

system (http://waterdata.usgs.gov/nwis), and provide annual analysis and reporting of data.

The station will be outfitted with continuous real-time monitoring equipment so that short term

compression/expansion motions are known and immediately available via the web. Continuous

data will be useful for optimizing performance of the wastewater injection system and will

shorten response times for maintenance.

The following variables will be monitored/recorded:

• change in aquifer thickness

• multiple groundwater levels (regardless whether or not USGS installs the piezometers)

• land-surface elevation

• bedrock-surface elevation

• performance parameters (voltage, etc. .)

Reports All data collected in this project will be stored in USGS data archives and will be publicly

available after being quality assured by USGS personnel. A USGS Open-File Report will be

published outlining the extensometer installation and initial data-collection results. An annual

report summarizing results will also be provided to HRSD. One or more scientific journal

articles describing key findings from the study will be published.

Work Plan Under the proposed plan, the USGS will construct an extensometer station at HRSD’s

Nansemond wastewater treatment facility in Suffolk, VA.

Staffing: Personnel from the USGS Water Science Center based in Richmond Virginia (VA-WSC) will

oversee all aspects of construction and operation. Drilling and downhole work will be performed

by the USGS National Research Drilling Program (NRDP), based in Henderson, Nevada. The

NRDP will deploy its own drill rig, support equipment and drill crew. A staff geologist with the

USGS VA-WSC and a geologist from the Virginia Department of Environmental Quality will

http://waterdata.usgs.gov/nwis

7

share on-site geologist duties during the approximate 1 month of drilling. Installation of surface

reference-frame structures and monitoring equipment will be performed or overseen by USGS

staff.

Schedule: The work is anticipated to last from July 2016 through August 2019. Drilling and construction

will occur in Year 1 and USGS will operate the station in Years 1-3. Station operation can

continue beyond Year 3 by mutual agreement.

Site: The extensometer station will be constructed within the fenced perimeter of the Nansemond

Wastewater Treatment Plant in Suffolk, Virginia, and the final location will be chosen jointly with

HRSD. The final location should be 200 to 500 feet from the injection test well, have paved road

access and adequate space for equipment including a large drilling rig, delivery trucks, a

generator, work lights, forklift, dumpster, and backhoe. A roughly 60’ x 100’ area is needed to

house materials, a work area for geologists and drillers, and to dig a pit for circulation of drilling

fluids.

Access to the drill site will be needed on a 24-hour basis during the drilling and construction

phase of the work.

Permanent Structures: A permanent structure with a 20’ x 20’ footprint and a 10’ height will be built to house the top of

the extensometer instrument and the associated monitoring equipment. As currently planned it

will be an insulated metal building with a concrete floor and a window and door, but alternative

exteriors can be considered if desired by HRSD. The building will have locked windows and

doors.

A cluster of four piezometers is highly recommended to allow monitoring of groundwater levels

(pressures) in multiple aquifers. Each piezometer will be housed in a protective casing that

protrudes about 3’ above ground. These piezometers will be permanent structures and will be

located near the extensometer building.

8

Budget Costs for this proposal are calculated using standard USGS rates and accounting. Costs

include personnel, equipment, drilling by the NRDP, travel, and overhead (indirect costs), as

shown by project year in Table 1.

Cost Category Year 1 Year 2 Year 3 Total

Salary and Benefits 97,112 9,072 9,399 115,583

Travel 10,900 2,000 2,000 14,900

Equipment & Supplies 36,800 500 500 37,800

Contracts 916,152 9,600 9,600 935,352

Total Direct 1,060,964 21,172 21,499 1,103,636

Indirect Costs 226,816 8,844 9,034 244,694

Total 1,287,780 30,016 30,533 1,348,330

Table 1. Annual cost ($) of installing an extensometer station, including USGS installation of

piezometer cluster, and operating for 3 years

References Eggleston, Jack, and Pope, Jason, 2013, Land subsidence and relative sea-level rise in the southern Chesapeake Bay region: U.S. Geological Survey Circular 1392, 30 p., http://dx.doi.org/10.3133/cir1392. Holdahl, S.R., and Morrison, N.L., 1974. Regional investigations of vertical crustal movements in the U.S., using precise relevelings and mareograph data. In: R. Green (Editor), Recent Crustal Movements and Associated Seismic and Volcanic Activity. Tectonophysics, 23 (4): 373-390. Pope, J.P., and Burbey, T.J., 2004, Multiple-aquifer characterization from single borehole extensometer records: Ground Water, v. 42, no. 1, p. 45-58.


ATTACHMENT #4

AGENDA ITEM 6. – King William Treatment Plant Effluent Utilization

King William Treatment Plant Effluent Utilization

May 24, 2016

• HRSD provides reclaimed water to the Nestle Purina PetCare cat litter production facility.

Introduction

2

– Began in April of 2016

– supplements the stressed groundwater supply currently utilized

– >30,000 gallons / day supplied

• HRSD and Nestle Purina have partnered effectively in support of water reuse. – capital investments – committed labor assets – established a communication plan

Partnership

3

• Over 30,000 gallons of reclaimed water is conveyed daily to Nestle Purina and is used in the process of making cat litter.

The Benefits

4

After one month of production - Anecdotal evidence suggest the reclaimed water produces a better product.

• This industrial reuse application reduces the volume of effluent discharged to the local waterway by 80%.

“Future generations will inherit clean waterways and be able to keep them clean.”

The Benefits

5

Nestle – groundwater supply restrictions will limit future growth / expansion HRSD – strict zinc limit poses challenge Reuse offered a WIN-WIN solution

History

6

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

Soluble Zinc ug/L (King William)

5/14/2012

5/15/2012

5/29/2012

5/31/2012

6/1/2012

6/2/2012

6/3/2012

6/4/2012

52 ug/ L Effluent PERMIT LIMIT

• Agreement with Nestle Purina PetCare – HRSD will build and

operate reuse pump station and force main

– Purina will build and operate receiving facility, including two 24,000 gallon storage tanks

– Schedule: each facility will be complete and ready to operate within one year of the other facilities completion


8

• Design – System is sized to handle current flow from the

plant, approximately 35,000 gpd, up to approximately 127,000 gpd

– Two 10 hp vertical turbine pumps, controlled by pump control panel and variable frequency drives, with space for future third pump Necessary for low-flow / high-head conditions

– Automatic pump shutoff for: High pressure High turbidity


9

Reuse Pump Station

10

Pump Control Panel and Variable Frequency Drives

11

• Design – 12,600 LF of 6-inch

diameter HDPE pipe – Automatic air vents and

surge protection


12

• Purchased easement from property owner

– Site Restoration – Success


13

• Construction – Notice to Proceed July 10, 2015 – Certificate of Substantial Completion March 31,

2016 – Construction Cost: $1,521,361 – Contractor: Franklin Mechanical Contractors, Inc. – Change order: only one= $4,731

0.3% of construction total


14

Reuse Wet Well and Reclaimed Water Sample

15

Level 1 – Reclaimed Water Best Quality defined in the Virginia Reuse Regulations

• All treated plant flow enters the Reuse Pump Station wet well (gravity overflow to plant outfall for shutdowns and emergencies)

• Nestle shuts down one day per week for maintenance; Manual shutdown of pump station and automatic activation of Zinc Removal System to send flow through outfall

• Pump Station Instrumentation and Telemetry allow it to run in almost full automation with constant remote monitoring of flow, pressures and alarms

Operation - Overview

16

• NEW VPDES KWTP Reuse Permit – New permit in conjunction with existing plant permit – Operate off of Reuse Permit Sampling & Testing

requirements typically 6 days a week – Revert to existing plant permit during one-day-a-

week Nestle Plant shutdown for outfall discharge along with any other scheduled/unscheduled shutdowns

– Combined effort by CEL, TSD, and SCD Operations to incorporate two permits into one working facility and maintaining all regulatory requirements

Operation - Sampling & Testing

17

• HRSD does not own end location of pipeline – Coordination and communication with Nestle

before, during and after startup – Failsafes installed to protect HRSD/Nestle

infrastructure in case of emergency shutdowns Reuse pump station has high pressure automatic

shutdown and lockout in case Nestle were to go offline at any time

• Additional instrumentation to control quality and quantity of reclaimed water – Turbidity limit and Corrective Action Threshold – Moncuin Stream Flow

Operation - Challenges

18

Moncuin Creek Monitoring

19

Permit Requirement • If stream flow falls below 0.060 MGD, HRSD must

send flow through its outfall to supplement the creek.

Parameters

Standard

Parameter and Standard Basis

Frequency

Sample Type

Frequency and Sample Type Basis

Reclamation System Flow (MGD)

Monthly average: NL GM10-2001, Rev. No. 1

Continuous

TIRE

GM10-2001, Rev. No. 1 Monthly maximum: NL

Influent Flow (MGD)

Monthly average: NL Monthly maximum: NL

pH (Standard Units)

6.0 – 9.0 9VAC25-740- 70.A.1.d

Daily Grab 9VAC25-740-80.A.5

E. coli (Colonies per 100 mL)

Monthly Geometric mean: < 11

9VAC25-740- 70.A.1.b.(2) 1

4 per Week Grab

Per 9VAC25-740- 80.A.4.a and GM10- 2001, Rev. No. 1

CAT: >35 cBOD5 (mg/L) Monthly average: < 8 9VAC25-740-

70.A.1.e(2) 2 1 per Week 8 HC Per 9VAC25-740-

80.A.3

Turbidity (NTU)

Daily average: < 2.0 9VAC25-740- 70.A.1.f

Continuous Recorded 9VAC25-740-80.A.1

CAT: > 5.0

Sampling / Monitoring

21


ATTACHMENT #5

AGENDA ITEM 7. – Sustainable Water Recycling Initiative (SWRI)

Sustainable Water Recycling An integrated solution to the water issues challenging

Hampton Roads and the Commonwealth of Virginia

• Restoration of the Chesapeake Bay – Harmful Algal Blooms – Localized bacteria impairments – Urban stormwater retrofits (cost and complexity)

• Adaptation to sea level rise – Recurrent flooding

• Depletion of groundwater resources – Including protection from saltwater contamination

• Wet weather sewer overflows – Compliance with Federal enforcement action

Water Issues Challenging Virginia and Hampton Roads

2

• Local – James City County Board of Supervisors – Poquoson City Council – Suffolk City Council – Norfolk Department of Utilities

• Academia – Norfolk State University – ODU – Virginia Wesleyan

• Environment Virginia Symposium

Outreach efforts

3

• Gain initial understanding of concerns, perceptions, effective messaging, credible messenger – 11 phone interviews conducted from a list of 60+

candidates identified by HRSD 1 elected official 2 appointed officials 1 environmental leader 2 business leaders 2 civic activists 3 academics

Outreach efforts – In-depth Interviews

4

• Key findings – Generally supportive – initial responses are positive – Some concerns about contamination – Respondents believe education will be key to gain

support – Credible messenger must have 3 traits:

Expertise Neutrality Transparency


5

• Strong favorable messages: – Water will meet or exceed drinking water standards – Being done elsewhere – i.e., Virginia at UOSA

• Strong opposition messages: – Not enough of a problem to warrant this solution – Program forces well users to drink wastewater


6

• 3 qualitative discussions among regular citizens of Hampton Roads (1 in Virginia Beach and 2 in York County) – Randomly selected but well screened “advocates”

were provided short briefings to prepare to argue for or against in front of 8 general citizens (randomly selected)

– Facilitated discussion about what messages were effective, what messenger would be credible

Outreach efforts – Jury Groups

7

• Preliminary findings/observations – Awareness and education about issues very low – Emotional advantage to those opposed

However, yuck factor not as big an issue as expected

– Issue not urgent enough to warrant action now – Cost is a concern – who pays – Jobs and economy were strong reasons to support – The extensive research and development is

reassuring – Some support for being proactive – not waiting until

too late or much more expensive to address

Outreach efforts – Jury Groups

8

• On-line via developed email lists • Targeting 300 “regular” citizens

– +100 screened for particular factors that can yield more informed respondents

– Once they reach 400 completed surveys (software looks for a number of factors to determine human completion, appropriate time spent, no obvious answer pattern, etc.,)

• Survey to be in the field in June • Broad range of zip codes throughout service

area

Outreach efforts – Qualitative Survey

9

• Consent Decree/Integrated Plan – DOJ letter received – supportive of integrated plan “Provided that HRSD submits an Alternatives Analysis Report that satisfies the requirements of the Third Amended Consent Decree, HRSD may include in one of the alternatives presented the SWRI project. HRSD needs to support all alternatives presented in its Report with a solid financial capabilities assessment consistent with EPA Policy.”

• Permitting – Very positive call with Region 3 permitting staff that

will be the regulatory permitting authority for this project

EPA issues

10

• Existing Consent Decree milestones unchanged – Alternative Analysis Report – August 1, 2016 – RWWMP (Integrated Plan) – October 1, 2017

• Implement Sustainable Water Recycling – Pilot and analysis 2016 -2017 – Demonstration project (1 mgd) 2018-2019 – Construction 2020 – 2030

• Continue priority sewer overflow work through 2030 – schedule integrated with SWR work – Construct priority RWWMP projects – Strong focus on operational controls – Localized investigations, studies and remediation

• Remaining sewer overflow work completed in accordance with Regional Wet Weather Management Plan (approximately 2030 – 2047)

Integrated Plan Schedule

11

Phase Timing Phase 1 – Feasibility Evaluation Complete

Phase 2 – Concept Development 2016

Phase 3 - Demonstration Project Planning 2016

Phase 4 – Demonstration Project: Design Construction Operation

2017 2017 - 2018 2018/2019

Phase 5 – Construction/Implementation 2020 - 2030

Overall SWR Project Phasing and Timeline

12

• Pilot testing – Spaces prepared for equipment – Office “container” in-place – Equipment due in early June – Intensive sampling and analysis plan

New equipment ordered for lab New contract for lab services to provide for analysis CEL

does not yet conduct

– HRSD Project Manager on-site with interns

Treatment Train Pilot

13

Floc/Sed/O3/BAC/GAC - Intuitech

Floc/Sed (Intuitech S200)

Ozone (Intuitech Z200)

BAC/GAC (Intuitech F700)

Special Modifications: • Hydrogen Peroxide

Storage and Feed addition to Ozone Skid

• BAC/GAC filters will be operated in series (Columns 1&3, 2&4)

MF/RO/UVAOP Skids

MF/UF Skid (Wigen)

RO Skid (Wigen)

“Lab” bench

New tap for feeding pilots (denite filter backwash supply)

Denite filter gallery

Squeezing into existing space

UV Disinfection/Advanced Oxidation piping and feed system

UV disinfectant module

Pilot project office at YRTP

• Test Wells – Drilling rig on-site and drilling at Nansemond – Will move to York River TP upon completion – Network of monitoring wells to follow (smaller rig)

• USGS has provided proposal to install extensometer at Nansemond – Region is data poor on subsidence issue – On-site measurement will demonstrate impact of

SWRI with ability to monitor at approximately 7 miles and 15 miles (2 existing instrument locations)

Groundwater/Hydrogeological data gathering

23

Test well drilling – Nansemond Treatment Plant

• Objectives – Obtain data from actual injection well – Train operators in water plant – Create educational opportunity – Inform permitting process for entire initiative

• Located at Nansemond Treatment Plant • Progressive design-built delivery being

evaluated for speed • 1 MGD targeted size (700 gallons per minute

or ~2.5 orders of magnitude larger than carbon pilot)

Demonstration Project

25

• Learning facility incorporated into design • Potential to add trail to waterfront and other

learning opportunities at Nansemond – Long term Water Environment Education Center – Partnership opportunities

• UOSA model – Occoquan Watershed Monitoring Laboratory –

Independent agency – branch of Virginia Tech – Opportunity to look at similar model for Eastern

Virginia Groundwater Science Center

Demonstration Project

26

• National Water Research Institute – Proposal to form and coordinate an independent

advisory panel to provide scientific and technical review

– 5 to 6 individuals with expertise in a range of disciplines

– 2 web enabled conference calls – 1 in-person meeting – Panel report summarizing findings and

recommendations – Begin work in June/July 2016 – finish after pilot is

complete

Independent Review – Expert Panel

27

Questions?

28


ATTACHMENT #6 AGENDA ITEM 14. – Informational Items

a. Management Reports

(1) General Manager

(2) Engineering

(3) Finance

(4) Information Technology

(5) Operations

(6) Special Assistant for Compliance Assurance

(7) Talent Management

(8) Water Quality

(9) Report of Internal Audit Activities

b. Strategic Planning Metrics Summary

c. Effluent Summary

d. Air Summary

PO Box 5911, Virginia Beach, VA 23471-0911 • 757.460.7003

Commissioners: Vishnu K. Lakdawala, PhD, Chair • Frederick N. Elofson, CPA, Vice-Chair • Michael E. Glenn Arthur C. Bredemeyer • Maurice P. Lynch, PhD • Stephen C. Rodriguez • Susan M. Rotkis • Willie Levenston, Jr.

www.hrsd.com

May 16, 2016 Re: General Manager’s Report Dear Commissioners: With little fanfare we began to send reclaimed water to Nestle-Purina from our King William Treatment Plant in April. This start-up caps a five-year effort to find a beneficial use for the high quality effluent produced by the King William Treatment Plant. In September 2012, the Commission approved a contract with a consultant to begin preliminary design on this project to avoid the cost and political challenges of constructing a new outfall for the King William Treatment Plant. Staff had been wrestling with an appropriate method of meeting challenging water quality standards in such a small receiving stream. The timing proved perfect for a reuse solution as Nestle-Purina was looking for additional groundwater to expand their operations and the Virginia Department of Environmental Quality (DEQ) was loathe to approve additional permitted withdrawals from the seriously stressed Potomac Aquifer. While this is a great project benefitting all involved, it was made possible by some unusual circumstances. First, the King William effluent met Nestle-Purina’s water quality needs without additional treatment. Second, the Nestle-Purina facility was only a little over two miles from the King William Treatment Plant. Third, HRSD and Nestle-Purina were practically fully connected by an existing utility easement that was put in place to accommodate a new natural gas line just a few years earlier. Finally, HRSD and Nestle-Purina were motivated by other factors to find a way to make reuse work. When this project was proposed, our Sustainable Water Recycling Initiative (SWRI) had not begun. We were still seeking more traditional reuse projects that required expensive infrastructure to move our effluent to a near-by industrial user. We are now concentrating on a more sustainable solution that does not depend on expensive infrastructure to move our effluent or the good fortune of having a water dependent industry near one of our treatment facilities. While we will continue to take advantage of fortuitous situations in the future, the SWRI will be the focus of our water recycling efforts going forward.

HRSD Commission May 16, 2016

Page 2

The SWRI is a complex initiative and a communication challenge. For this reason we have not highlighted our new partnership with Nestle-Purina as this type of successful reuse project further complicates the SWRI communications. However, the King William reuse project is a great project and the result of significant effort by our Small Communities Division staff, the North Shore Design and Construction Division and our Water Quality Department. Once again, HRSD is fortunate to have such talented and dedicated people working to ensure future generations inherit clean waterways and are able to keep them clean. The attached monthly reports review activities throughout the month, with a few items highlighted below: 1. Treatment, Compliance and System Operations: All plants met all

Virginia Pollutant Discharge Elimination System (VPDES) permit requirements. There were no spills on the interceptor system.

2. Internal Communications: I participated in the following meetings/activities with HRSD personnel:

a. A meeting to review the status of the Infiltration/Inflow program

associated with the Regional Wet Weather Management Plan (RWWMP)

b. A new employee orientation session c. One employee length of service recognition breakfast d. A meeting with the Employees Association e. A meeting to review prioritization criteria for RWWMP projects f. A meeting to discuss erosion issues associated with an HRSD owned

property in Gloucester County g. A meeting to discuss near-term treatment options for Surry County

and the Town of Surry h. A meeting to plan HRSD’s participation in Infrastructure Week 2016 i. A meeting to review a force main failure and Supervisory Control And

Data Acquisition (SCADA) data related to estimating the volume of the spill

j. A meeting to review the potential impact of House Bill 919 on our billing practices

k. A meeting to review the decentralized treatment study l. A meeting to review the plans for working with jury groups as part of

the communications research work associated with the SWRI

HRSD Commission May 16, 2016

Page 3

m. The final workshop for the SWRI pilot project planning n. A meeting to review the experience requirements included in our

contract documents.

3. External Communications: I participated in the following meetings/ activities:

a. A meeting of the Council of the Town of Surry to discuss expansion of

the HRSD territory b. A meeting of the Suffolk City Council to provide a briefing on the

SWRI c. The VIRGINIA forever Board meeting and the Board Development

Committee meeting d. A meeting with the DEQ Director e. The Environment Virginia symposium where I participated in a panel

presentation of the SWRI f. The quarterly meeting of Congressman Rigell’s Chesapeake Bay

Advisory Committee g. A meeting with Middlesex County (County Administrator and a

member of the Board of Supervisors) to discuss sewer service in the county

h. A monthly meeting of the Hampton Roads Planning District Commission (HRPDC) Directors of Utilities Committee

i. A breakfast hosted by the American Society of Civil Engineers j. The monthly HRPDC Resiliency Committee meeting k. The quarterly National Association of Clean Water Agencies board

meeting and National Policy Forum Thanks for your continued dedicated service to HRSD, the Hampton Roads region, the Commonwealth and the environment. I look forward to seeing you on Tuesday, May 24, 2016 in Virginia Beach. Respectfully submitted, Ted Henifin Ted Henifin, P.E. General Manager

TO: General Manager FROM: Director of Engineering SUBJECT: Engineering Monthly Report for April 2016 DATE: May 12, 2016 A. General

1. Capital Improvement Program (CIP) spending for the ninth month of Fiscal Year-2016 was $12 million, while the planned expenditure for the month was estimated at $12.4 million. There were no Water Quality Improvement Fund grant reimbursements for the month.

2. We have begun a study to consider decentralized options to address areas

that have limited population and are isolated from existing HRSD infrastructure. The study will address technologies that could be used to address wastewater collection, treatment and disposal. These small systems are challenging to build and operate in a cost effective and reliable manner. The study will consider reliability, maintainability, ease of monitoring, life-cycle costs, public acceptability, expandability and whether the system can be used for either existing or new development. This study is being conducted by CH2M Hill and will provide HRSD a listing of potential options when considering future opportunities to serve small and/or isolated communities. This study will continue through the next few months with a final report due later this year.

B. Asset Management Division

1. The Asset Management Division recently held an Asset Criticality and Preventative Maintenance Review Process workshop with Treatment Division staff. The objective of the workshop was to establish criticality criteria for treatment plant assets to help prioritize maintenance activities. The recently developed Preventative Maintenance Review Checklist was presented as a tool for optimizing the maintenance program by identifying the value and accuracy of information in the CMMS. Valuable feedback was received to enhance current maintenance procedures and ensure consistency.

2. Staff is working with Virginia Tech to share data for a program entitled,

“Pipeline Infrastructure Database (PIPEID).” This effort is being conducted to create a sewer force main performance prediction model. Data is being gathered from multiple utilities from across the country to better predict life

expectancies and failure modes for these pipelines. HRSD has shared existing pipeline data, condition assessment results and operational data. The results of this program will be shared with participants and others interested in the design, construction, operation and maintenance of sewer force mains.

C. Design & Construction Divisions

1. In April, the King William Treatment Plant Effluent Utilization project was put into service. This project involved the construction of a pump station and a pipeline that extended over two miles from the treatment plant to the adjacent Nestle Purina facility. All of the treated effluent from the King William Treatment Plant will be beneficially reused rather than discharged to an adjacent stream. This was the first project completed by Franklin Mechanical Contractors for HRSD. Although this contractor is relatively small compared to many of the larger contractors working in Hampton Roads, they worked well with HRSD staff and provided a quality project. The contractor is currently addressing punch list items necessary to close out the project.

2. Progress continues on the Virginia Initiative Treatment Plant Nutrient

Reduction Improvement project. Construction efforts are ongoing and the project is on schedule. The first part of the project (Group 1) involves the nutrient reduction portion of the project. Ongoing work includes air piping and mixing for the versatile bioreactor, support piles for yard piping, supplemental carbon (methanol) storage and feed system and electrical work needed for these facilities. The substantial completion date for this part of the project is March 2017. The second part of the project (Group 2) involves the construction of the plant peak capacity improvements. Ongoing work includes the foundation work for the preliminary treatment facility and equalization basin and construction for a new Raw Water Influent Pump Station. A meeting was recently held with the Executive Project Team to review key milestones and areas of potential risk. The substantial completion date for this part of the project is July 2018. This is HRSD’s largest single CIP project and the work will continue for the next three years. The project team is working well together and this effort is an example of good planning and communication.

D. Planning & Analysis Division

1. Since the approval to begin the second phase of the Sustainable Water Recycling Initiative (SWRI) at the August 2015 Commission Meeting, staff has been involved in a number of stakeholder outreach efforts and internal

meetings to plan for the bench scale pilot work and discuss the merits of this effort. Informational meetings have recently been held as follows: a. Met with Faculty, staff and students at Old Dominion University b. Conducted the first SWRI education webinar: Potable Reuse: History,

Trends, Technology and Case Studies Efforts continue to install a well for testing as part of the SWRI at the Nansemond Treatment Plant.

2. Staff continues to coordinate efforts as part of a biweekly meeting for utility

relocations related to the Hampton Roads Transit Light Rail Extension in Virginia Beach. Work is underway to verify the exact locations of existing utilities to verify conflicts with the proposed project. Staff has identified three areas of potential conflict with existing HRSD infrastructure along the Southern Boulevard corridor. The 30 percent design effort is planned to be completed in September 2016. Once the design has reached this milestone, HRSD will be able to confirm the potential areas of conflict and work with the design team for relocation of impacted infrastructure.

E. Strategic Planning Metrics Summary

1. Educational and Outreach Events: 8

a. Staff was part of a Panel Discussion entitled, “Owner’s Town Hall Discussion,” as part of the Hampton Roads Chapter Design-Build Institute of America (DBIA) Workshop held on April 6.

b. Staff was part of a Math and Science Outreach Program at

Greenbrier Middle School held on April 7. c. Staff was part of a presentation to Old Dominion University faculty,

staff and students on the subject of Sustainable Water Recycling on April 15.

d. Staff moderated a webinar entitled “Sustainable Water Recycling” on

April 19.

e. Staff was part of a Panel Discussion entitled, “How Owner’s Decide When to Use Design-Build Contracting for Their Water/Wastewater Projects” at the DBIA Water/Wastewater Conference held in Charlotte, North Carolina on April 21.

f. Staff made a presentation entitled, “Piloting Design-Build Sewer Rehabilitation in Advance of a $1 Billion Program” at the DBIA Water/Wastewater Conference held in Charlotte, North Carolina on April 21.

g. Staff was part of a Panel Discussion entitled, “Constructing the

Future: The Progression of Design-Build Innovation” at the DBIA Water/Wastewater Conference held in Charlotte, North Carolina on April 22.

h. Staff conducted an Open House for the Center Avenue I/I Phase II

project on April 28.

2. Number of Community Partners: 3

a. DBIA b. Greenbrier Middle School c. Old Dominion University

3. Number of Research Partners: 1

a. Virginia Tech Sustainable Water Infrastructure Management Center

Item # Strategic Planning Measure Unit April 2016

M-1.4a Total Training Hours per Full Time Employee (39) - Current Month Hours / #FTE 6.54

M-1.4b Total Training Hours per Full Time Employee (39) - Cumulative Fiscal Year-to-Date

Hours / #FTE 34.11

M-5.2 Educational and Outreach Events Number 8 M-5.3 Number of Community Partners Number 3 M-5.4 Number of Research Partners Number 1

Bruce W. Husselbee, P.E.

Bruce W. Husselbee, P.E.

TO: General Manager FROM: Director of Finance SUBJECT: Monthly Report for April 2016 DATE: May 11, 2016 A. General

1. Staff met with the Virginia Resources Authority (VRA) and the Department of

Environmental Quality (DEQ) to review potential projects that would qualify for a subsidized loan from Virginia Clean Water Revolving Loan Fund (VCWRLF). In a recent change, the DEQ will allow the loan terms to be up to 30 years, depending on the type of project. Previously, the maximum loan term was 20 years, which is shorter than the useful life of our projects and negatively impacts debt service coverage. Staff will develop a package of projects to submit before the deadline in July.

2. Revenues continue to track higher since water consumption has not declined as

much as we anticipated. Facility Charges are lower relative to last year, but we anticipate building activity will increase this summer. Although Capital Assets and Major Repairs are lower than budgeted, the majority of funds are likely to be encumbered by the fiscal year end. As expected, the Cost of Issuance was higher due to the size and complexity of the bond sale. The $21 million in refunded savings more than offsets the increased cost. The Variable Rate Demand Bond Sale (VRDB) sale closed on the April 1, which increased our total debt outstanding to $807 million.

3. Staff recently enabled a new service with Bank of America to get better data

visibility into our accounts as part of our Business Intelligence initiative. Having the ability to dynamically export our account data on a daily basis will help our Accounting Division manage our funds more efficiently.

B. Interim Financial Report

1. Operating Budget for the Period Ended April 30, 2016

Amended Budget Current YTD

Current YTD as % of

Budget (83% Budget to

Date)

Prior YTD as % of Prior

Year BudgetOperating Revenues

Wastewater $ 221,000,000 $ 188,650,169 85% 85%Surcharge 2,000,000 1,787,828 89% 89%Indirect Discharge 2,400,000 2,079,339 87% 96%Norfolk Sludge 300,000 174,979 58% 60%Fees 3,000,000 2,377,922 79% 87%Municipal Assistance 1,300,000 927,457 71% 77%Miscellaneous 750,000 547,920 73% 112%

Total Operating Revenue 230,750,000 196,545,614 85% 86%Non Operating Revenues

Facility Charge 6,000,000 4,670,615 78% 107%Interest Income 1,400,000 1,600,086 114% 85%Build America Bond Subsidy 2,400,000 2,405,517 100% 50%Other 1,090,000 926,020 85% 58%

Total Non Operating Revenue 10,890,000 9,602,238 88% 85%

Total Revenues 241,640,000 206,147,852 85% 86%Transfers from Reserves 5,063,984 4,219,986 83% 83%Total Revenues and Transfers $ 246,703,984 $ 210,367,838 85% 86%

Operating ExpensesPersonal Services $ 53,040,035 $ 41,742,077 79% 79%Fringe Benefits 24,395,846 19,359,714 79% 79%Materials & Supplies 5,924,877 6,015,679 102% 78%Transportation 1,385,278 1,213,997 88% 75%Utilities 12,492,365 8,798,990 70% 71%Chemical Purchases 9,078,868 5,733,376 63% 63%Contractual Services 24,530,628 16,998,514 69% 70%Major Repairs 9,135,316 4,108,649 45% 57%Capital Assets 3,450,181 1,661,369 48% 42%Miscellaneous Expense 2,505,084 1,547,912 62% 39%

Total Operating Expenses 145,938,478 107,180,277 73% 72%

Debt Service and TransfersDebt Service 59,622,000 47,225,739 79% 86%Cost of Issuance Bonds 900,000 1,185,068 132% 107%Transfer to CIP 39,983,506 33,319,588 83% 83%Transfer to Risk management 260,000 216,673 83% 0%Total Debt Service and Transfers 100,765,506 81,947,068 81% 86%

Total Expenses and Transfers $ 246,703,984 $ 189,127,345 77% 77%

2. Notes to Interim Financial Report The Interim Financial Report summarizes the results of HRSD’s operations on a basis of accounting that differs from generally accepted accounting principles. Revenues are recorded on an accrual basis whereby they are recognized when billed. Expenses are generally recorded on a cash basis. No provision is made for non-cash items such as depreciation and bad debt expense.

This interim report does not reflect financial activity for capital projects contained in HRSD’s Capital Improvement Program.

Transfers represent certain budgetary policy designations as follows:

a. Transfer to CIP: represents current period’s cash and investments that are

designated to partially fund HRSD’s capital improvement program.

b. Transfers to Reserves: represents the current period’s cash and investments that have been set aside to meet HRSD’s cash and investments policy objectives.

3. Reserves and Capital Resources (Cash and Investments Activity) for the Period

Ended April 30, 2016

GeneralRisk

ManagementDebt Service

Reserve Capital

Beginning of Period - July 1, 2015 146,889,275$ 2,480,500$ 44,117,890$ 22,550,555$

Add: Current Year Sources of Funds Cash Receipts 213,845,614 Capital Grants 14,222,645 Line of Credit 56,094,468 Bond Proceeds (includes interest) 118,935,072 Transfers In 33,150,819 216,667 66,470,407 Sources of Funds 246,996,433 216,667 - 255,722,592

Total Funds Available 393,885,708$ 2,697,167$ 44,117,890$ 278,273,147$

Deduct: Current Year Uses of Funds Cash Disbursements 179,892,847 97,369,849 Refund Line of Credit 56,094,468 Transfers Out 66,687,074 33,150,819 Uses of Funds 246,579,921 - - 186,615,136

End of Period - April 30, 2016 147,305,787$ 2,697,167$ 44,117,890$ 91,658,011$

4. Capital Improvements Budget and Activity Summary for Active Projects the Period Ended April 30, 2016

5. Debt Management Overview

6. Financial Performance Metrics for the Period Ended April 30, 2016

Expenditures prior to

June 30, 2015Administration 40,961,073$ 32,680,220$ 2,501,782$ 35,182,002$ 4,037,427$ 1,741,644$

Army Base 156,834,000 108,608,104 6,570,233 115,178,337 2,576,508 39,079,155

Atlantic 94,616,147 27,303,169 7,194,727 34,497,896 10,343,678 49,774,573

Boat Harbor 82,892,347 21,912,992 6,490,029 28,403,021 17,715,081 36,774,245

Ches-Eliz 5,679,274 2,814,828 1,384,278 4,199,106 1,789,051 (308,883)

James River 74,881,504 22,744,827 9,702,018 32,446,845 13,893,142 28,541,517

Middle Peninsula 36,633,823 1,365,967 3,239,831 4,605,798 4,441,436 27,586,589

Nansemond 71,832,012 11,117,562 9,784,765 20,902,327 13,926,017 37,003,668

VIP 251,451,502 140,443,785 38,215,640 178,659,425 60,285,526 12,506,551

Williamsburg 10,512,783 1,990,543 2,760,607 4,751,150 5,029,684 731,949

York River 43,917,467 20,361,478 8,549,249 28,910,727 10,540,148 4,466,592

General 197,129,437 119,099,544 15,738,971 134,838,515 36,101,031 26,189,891

1,067,341,369$ 510,443,019$ 112,132,130$ 622,575,149$ 180,678,729$ 264,087,491$

Available Balance

Classification/ Treatment Service Area Budget

Year to Date FY2016

ExpendituresTotal

ExpendituresOutstanding

Encumbrances

Principal 3/31/16

Principal Payments

Line of Credit Draws

2016B Refunding

Bond

Principal 4/30/16

Apr Interest Payments

Fixed Rate Senior 446,616$ 2,000$ -$ 444,616$ 204$ Subordinate 312,561 84 - 312,477 38 Variable Rate Subordinate 25,000 - - 25,000 50,000 3 Line of Credit - - - - - Total 784,177$ 2,084$ -$ 25,000$ 807,093$ 245$

SIFMA Index HRSDSpread to

SIFMA Maximum 0.41% 0.45% 0.04% Average 0.09% 0.08% 0.01% Minimum 0.01% 0.01% 0.00% As of 4/29/2016 0.41% 0.38% 0.03%

Debt Outstanding ($000's)

Series 2016 Variable Rate Interest Summary - Key Statistics of Comparable Bonds (Since October 2011) Pricing Analysis as of 4/29/2016

Current YTD Policy MinimumCapital % Cash Funded 26% 15%General Reserve as % of Operations 101% 75-100%Risk Management Reserve as % of Projected Claims Costs 25% 25%

7. Summary of Billed Consumption

C. Customer Care Center 1. Accounts Receivable Overview

Summary of Billed Consumption (ccf)

Month

Cumulative 3

Year Average

Cumulative

2015 Actual

2016

Cumulative

Budget

Estimate

2016 Cumulative

Actual

From

Budget

From

2015

From 3

Year

Average

July 4,871 4,798 4,365 4,819 10.4% 0.4% -1.1%

Aug 10,201 9,517 8,730 9,783 12.1% 2.8% -4.1%

Sept 14,879 14,128 13,095 14,290 9.1% 1.1% -4.0%

Oct 19,759 19,005 17,460 18,976 8.7% -0.2% -4.0%

Nov 24,086 22,900 21,825 23,486 7.6% 2.6% -2.5%

Dec 28,291 27,361 26,190 27,626 5.5% 1.0% -2.4%

Jan 32,951 31,997 30,555 31,843 4.2% -0.5% -3.4%

Feb 37,417 35,413 34,920 35,959 3.0% 1.5% -3.9%

March 41,660 40,813 39,285 40,705 3.6% -0.3% -2.3%

Apr 45,900 45,287 43,650 44,833 2.7% -1.0% -2.3%

May 50,273 49,601 48,015 - N/A N/A N/A

June 54,952 54,058 52,380 - N/A N/A N/A

% Difference

HRSD Juris TotalRoll ForwardMarch A/R Balance $ 20,198,975 $ 22,588,656 $ 42,787,631

Billings 18,327,768 23,906,844 42,234,612 Payments (22,214,066) (18,418,172) (40,632,238)Delinquency Activity Fees 134,855 - 134,855 Late Payment Charges 78,688 19,322 98,010 Adjustments 4,811,612 (4,431,291) 380,321 Balances Written Off (175,513) (220,693) (396,206)

April A/R Balance $ 21,162,319 $ 23,444,666 $ 44,606,985

2. Customer Care Center Statistics for the Period Ended April 30, 2016

Customer Interaction Statistics April March FebruaryCalls Answered within 3 minutes 86% 82% 76%Average Wait Time 1:15 1:39 2:09Calls Abandoned 903 1,513 1,748

D. Procurement

1. Procurement Statistics Current Period FYTD

Bid Cost Savings 90,166$ $ 2,564,061 Negotiated Cost Savings 6,084$ $ 190,518 Salvage Revenues 339$ $ 27,270 Corporate VISA Card - Estimated Rebate 23,455$ $ 179,791

Average Cycle Time (Receipt of Requisition to Award) Solicitation

Types Award

Amounts Mar-16 Apr-16

No. Days Count No. Days Count

RFQs < $10,000 27 8 19 15 $10,000 - $50,000 31 10 46 21

IFBs $50,000 -$100,000 31 1 23 3

IFBs/RFPs >$100,000 66 3 25 3

2. Some of the more formal technical competitive bid solicitations for the month included: a. Roof and Heating, Ventilating and Air Conditioning System Replacement

for the Central Environmental Laboratory b. Number Three Gravity Belt Thickener Hydraulic System for the

Nansemond Treatment Plant c. Oracle E-Business Suite Managed Support Services Contract d. Muriatic Acid Tank Repair at the Nansemond Treatment Plant e. Gravity Thickener Tank Rake Arm and Gearbox Assembly for the York

River Treatment Plant

Requisition Volume Comparison

Requisition Amounts

7/1/2014 - 6/30/2015

Requisitions

7/1/2015 - 4/30/2016

Requisitions

Percent Comparison of Past Year

< $10,000 265 211 80 $10,000 – $50,000 252 242 96 $50,000 – $100,000 64 42 66 >$100,000 99 63 64

Total 682 558 82%

E. Strategic Planning Metrics Summary


2. Community Partners: 0

Item # Strategic Planning Measure Unit April 2016 M-1.4a Training During Work Hours Per Full

Time Employee (99) – Current Month

Hours / #FTE 5.50

M-1.4b Total Training During Work Hours Per Full Time Employee (99) – Cumulative Fiscal Year-to-Date

Hours / #FTE 44.46

M-5.2 Educational and Outreach Events Number 0 M-5.3 Number of Community Partners Number 0 Wastewater Revenue Percentage of

budgeted 102%

General Reserves Percentage of Operating Budget less Depreciation

101%

Accounts Receivable (HRSD) Dollars $21,162,319 Aging Accounts Receivable Percentage of

receivables greater than 90 days

19%

Respectfully, Jay A. Bernas Jay A. Bernas, P.E. Director of Finance

TO: General Manager FROM: Director of Information Technology (IT) SUBJECT: Information Technology Department Report for April 2016 DATE: May 11, 2016 A. General

1. The system engineering group is currently upgrading network equipment (switches and routers) at each of HRSD’s treatment plants. The Boat Harbor and Chesapeake-Elizabeth treatment facilities were completed in April. James River and Nansemond treatment plants are on the schedule for May.

2. Staff continues to assess and improve information systems and network security. As part of this ongoing initiative, HRSD IT is working in conjunction with IT staff from customer jurisdictions. In addition to installing hardware, software and firmware updates, releases, at-risk servers and network hardware are regularly reviewed for replacement or modification. Ten such systems were taken offline or substantially upgraded this month.

3. HRSD’s Computerized Maintenance Management System (CMMS) is

being upgraded to provide enhanced mobile access and functionality. The latest version was successfully installed in a test environment to ensure it will work properly in the training and production environments.

4. Working closely with staff from the Water Quality Department, a pilot

project aimed at reducing paperwork in the field through the use of electronic forms is underway.

5. Programming staff continues to assist the Talent Management Department

in developing and testing file formats and data interchange associated with the Affordable Care Act, as required by the IRS.

6. Staff is investigating cloud-based options for both storage and productivity

applications (Microsoft Office 365, Google Apps, etc.) as well as hybrid solutions that combine features of traditional on premise installations with cloud-based components. Recommendations will be presented to the HRSD Quality Steering Team no later than February 2017.

B. Strategic Planning Metrics Summary




M-1.4a Training During Work Hours Per Full Time Employee (46) – Current Month

Total Training Hours / # FTE

4.52

M-1.4b Total Training During Work Hours Per Full Time Employee (46) – Cumulative Fiscal Year-to-Date


27.15

M-5.2 Educational and Outreach Events Number 0

M-5.3 Number of Community Partners Number 0

Respectfully, Don Corrado

TO: General Manager FROM: Director of Operations SUBJECT: Operations Report for April 2016 DATE: May 3, 2016 A. Summary

1. All treatment plants met all VPDES permit requirements. 2. HRSD had one reportable air permit deviation and three odor control

exceptions during the month. 3. There were no Sanitary Sewer Overflows (SSOs) reported this month.

B. Interceptor Systems

1. North Shore (NS) Interceptor Systems responded to one after-hours interceptor alarm and one residential complaint. Both issues were minor in nature and resolved. NS Operations personnel spent a significant number of hours on the following project(s): a. Coliseum Pressure Reducing Station (PRS) and Off-Line

Storage Facility–Performed walk-through inspection of facilities to develop revised punch list. Performed Start-Up/Testing of PRS Pumps and Operational Scenarios

b. Westminster Drive Pipeline Failure–Completed site cleanup and restoration

2. South Shore (SS) Interceptor Systems worked with Engineering and

HRSD’s consultant to design a support system for the newly installed plug valve at the Central Trunk Interceptor Force Main A & B Main Line Valves project. The support system will alleviate further settlement, which caused two cracks in the existing pipe when the contractor first installed the valve.

Staff also supported the Atlantic Treatment Plant (ATP) by using the Vac-con trucks to clean out a combined solids holding tank that had several years of debris built up. It took approximately two days to clean out the tank.

Finally, SS Interceptor Systems assisted the City of Norfolk and HRSD’s Water Quality Department by removing contaminants flowing into the Virginia Beach Boulevard Pump Station.

C. Major Treatment Plant Operations 1. The Army Base Treatment Plant (ABTP) experienced one reportable non-

potable water (NPW) spill. While flushing an aeration tank, the drain system became overwhelmed and discharged 300 gallons into the storm drain.

Two Maximum Achievable Control Technology (MACT) 129 reportable incidents occurred this month. The induced draft fan shut down once due to a power interruption and a second time due to low NPW pressure. Both incidents opened the bypass damper on the incinerator. One odor control exception occurred when a pH probe fouled. ABTP staff continues to work with Archer Western Contractors and HDR Consultants on Phase III Improvement Punch list items and warranty claims. The contractor TA Sheets installed a 10-inch NPW line for methanol fire suppression. The local contractor, BFPE, tested the fire suppression system. The test revealed incorrect wiring and a damaged sprinkler valve diaphragm. Both items were replaced and retesting is scheduled for May 2016. Solids handling experienced rapid scaling of the impingement scrubber due to caustic addition for MACT 129. The scaling caused operations to shut down on two separate occasions. Staff moved the caustic addition point to the venturi. At this writing, scaling has not hindered operations. The contractor Alberta Well Test Incinerators continues to install new burners on Incinerator 1. This incinerator should be ready for MACT 129 testing in June 2016.

2. ATP staff removed the Combined Heat and Power (CHP) bio-scrubber from service for a biannual cleaning and regenerated the iron sponges. Due to complications, staff turned off the CHP engines for a few days.

3. Multiple hearth incinerator (MHI) issues associated with the new MACT 129 air permit occurred this month at Boat Harbor Treatment Plant (BHTP). On both April 3 and April 21, the plant experienced three reportable incidents

where flow was not sufficient to meet a 12-hour average flow requirement. During the April 3 event, staff discovered that the newly installed Distributive Control System (DCS) was not programmed to flag these permit exceptions as they occurred; staff immediately corrected the program. During the April 21 event, staff discovered that the existing packed bed nozzles were insufficiently sized and restricted flow. Staff replaced the packed bed nozzles with new larger nozzles, thereby resolving the flow issue. In addition, BHTP had one required use of the furnace bypass stack for more than one hour during April. The MHI unit experienced a failure of the MHI’s DCS April 7 that required the use of the emergency bypass stack for three hours and 25 minutes. Staff immediately stopped the MHI feed and completed the furnace burnout of solids thru the combustion zone. HRSD Operations and Instrumentation personnel worked to resolve the DCS problems to return the MHI to normal operation and reported the malfunction vent to DEQ per Title V permit requirements. On April 9, BHTP lost power to the second floor of the furnace building, causing an 11-minute use of the furnace bypass stack. Staff reset the breaker on the mezzanine floor but could not determine the source of the power loss.

Two odor exceptions occurred during the month of April. The first exception was due to the recirculation flow becoming saturated with Hydrogen Sulfide (H2S). Staff increased the dilution flow to both stages of the odor scrubber and resolved the issue. The second odor exception occurred due to a malfunctioning probe, which staff resolved by switching the probe to pH mode. BHTP is preparing to take each of the six aeration tanks out of service for preventive maintenance and coatings inspections and repairs. Staff determined the tanks to be in critical condition during the most recent inspections, prompting the need for immediate repairs. It is important to repair the tanks in 2016, as they will need to be in service in 2017 to assist in meeting new nutrient limits in the James River basin.

4. Chesapeake-Elizabeth Treatment Plant (CETP) experienced six deviations

from its air permit. a. On April 7, a planned maintenance burnout caused two less-than-

minimum 12-hour average scrubber pressure drops and one less-than-minimum 12-hour average burn zone temperature.

b. On April 12, a power blip stopped the draft fan, which caused the emergency bypass stack to open for 11 minutes.

c. On April 28, a planned maintenance burnout caused one less-than-minimum 12-hour average scrubber pressure drop and one less-than-minimum 12-hour average burn zone temperature.

5. James River Treatment Plant’s (JRTP) average Final Effluent Total

Nitrogen was approximately 35 percent lower than the previous month. Treatment performance was aided by warmer raw influent wastewater temperatures. Plant staff continued efforts to reduce chemical usage for phosphorous removal by promoting mixed liquor fermentation in the Integrated Fixed Film Activated Solids (IFAS) anoxic zones and targeting chemical addition at high phosphorous concentrations in the ANITA-Mox effluent. Plant staff also completed piping modifications on the thickened solids line from the gravity belt thickener, allowing for better flow and metering of thickened solids. NS Maintenance assisted plant staff by replacing NPW hydrants throughout the plant.

6. At Nansemond Treatment Plant (NTP), the biological nutrient removal process performance was slightly higher than the monthly target concentrations for phosphorous and nitrogen. Total Phosphorous (TP) and Total Kjeldahl Nitrogen (TKN) concentrations were higher than normal. Staff fed ferrous sulfate for two weeks to offset the elevated influent phosphorous concentration.

The new Enterprise Data Server (EDS) data management application at NTP has been live for two and a half months. Staff has experienced no significant issues since startup. Application enhancements allow the use of offline data entry forms to bridge a lost connection to a data server. This will allow for a more efficient use of mobile technology for roaming data entry around the plant site.

7. The Virginia Initiative Plant (VIP) experienced two reportable MACT 129

deviations. On April 2, the scrubber pH dropped below the permit level despite steady furnace operation and caustic feed. On April 28, the bypass damper opened for six minutes when the NPW pump shut down during DCS setup for the VIP upgrade.

The following critical path work is in progress to meet new 2017 nutrient limits: power distribution, DCS integration and methanol facility construction. Power distribution involves installing electrical conduits in trenches throughout the plant site to provide power to new equipment. DCS integration and fine-tuning is a long but critical process requiring the involvement of all disciplines. Staff and HDR have been pre-planning and visiting methanol facilities as a proactive approach to implement critical details and construction layout of this complex installation.

8. Williamsburg Treatment Plant (WBTP) performed a planned maintenance shutdown for some of the larger electrical breakers. Staff diverted plant flow to empty tanks while treatment was offline. Another shutdown is planned for mid-May to perform maintenance on the remaining large electrical breakers.

9. Contractors at York River Treatment Plant (YRTP) substantially completed the Final Effluent pump project by installing the fourth pump. Staff is in the process of developing a punch list to close out the project.

D. Small Communities

The King William Treatment Plant (KWTP) Reuse/Reclaimed Water Pump Station successfully began this month, with a total of 0.620 Million Gallons (MG) pumped to the Nestle-Purina facility. The West Point Treatment Plant (WPTP) new chemical building construction continues with installation of instrumentation and power conduit; staff ordered new chemical feed pumps and mini-bulk storage to complete the project. The Urbanna Treatment Plant (UBTP) construction is ongoing for the new configuration, which includes completing new equalization pumps and feed and Return Activated Sludge/Waste Activated Sludge (RAS/WAS) pumps and feed. The new internal mixed liquor feed (IMLR) pumps/piping as well as the inDense will be installed in May with startup anticipated for June. The collection systems experienced no spills, odor complaints or other major issues for the month.

E. Support Systems 1. The Automotive Superintendent witnessed the load bank test for the

Coliseum Pump Station Generator. The unit operated as designed; however, problems with the day tank system were reported to the contractor and Engineering’s NS Design and Construction (D&C) project manager. The Automotive Superintendent, the City of Virginia Beach and Atlantic Machinery coordinated a demonstration of a Vac-Con sewer flusher at a Public Works Facility in Virginia Beach. HRSD personnel from SCD, NS Interceptors and Automotive Shops attended. Automotive and Electrical personnel performed routine load bank and generator tests at various HRSD pump stations. All generators operated as designed and were returned to service. The Automotive Superintendent attended the Go/No-Go meeting at State Street PS. Staff completed a generator load bank test and worked on plans to relocate the load bank exhaust vent and E-Stop.

2. The Carpentry Shop completed roofing inspections at various HRSD pump stations, constructed protective covers for the Avalanche Sampler in the Technical Services Division (TSD), completed and installed counters and safety cabinets in the Central Environmental Lab’s (CEL’s) Van #477, and fabricated manhole covers for the SS Pretreatment and Pollution Prevention (P3) Division. Carpenters began constructing three large stairs for the Providence Road pump station, three lockers for CEL personnel, finished constructing cabinets for the laboratory at ABTP and began designing cabinets for the SS Operations laundry room. The Machine Shop rebuilt the pump at #2 Suffolk pump station and completed 20 projects including fabricating valve stems and a custom screw drive shaft for BHTP, a large PVC flange for NTP, and a pump lifting yoke and grit screw drive shafts for VIP.

3. The Concrete-Coatings, Structural and Roofing Inspector oversaw 20

Coating and Concrete (C&C) projects. Wall cracks in the new aeration tanks at ABTP were repaired. The C&C, Structural and Roofing Inspector examined the interior of BHTP’s #2 aeration tank and found leaks and cracks in the walls and structural columns. Repairs were made and the tank is back in service. Restoration of the #1 and #2 digesters at NTP continues as well as coating and rehabilitation of aeration tank #6.

4. Facilities Maintenance worked with a contractor to complete the installation

of the hot water coil in the JRTP Solids Handling (SH) building. Contractors installed new counters and cabinets in the NTP SH laboratory, window shades in the SS Operations administration building, and a 70-ton heating, ventilation and air conditioning (HVAC) system for the Water Quality Building.

F. Electrical and Energy Management

1. Electrical and Instrumentation project work continues to focus on the

installation of electrical infrastructure to support the Sustainable Water Reuse Initiative (SWRI) Pilot Project at YRTP.

2. Electrical and Instrumentation project work continues for the VIP upgrade. Staff conducted significant diesel generator and DCS tests this month. After receiving final approval to parallel the diesel generator system with the utility (closed transition), several operational cycles of the paralleling equipment were required to test and tune the equipment. In addition to the work on the diesel generators, staff successfully tested the automatic restart of the electrical equipment to ensure methodic restart of plant equipment and instrumentation after a power loss.

G. Water Technology and Research Staff is currently at the detailed design phase of a project to implement the CAMBI thermal hydrolysis process (THP) and high strength organic waste co-digestion system at ATP. There is some uncertainty associated with this project regarding the expected improvement in dewaterability and product cake solids. As part of the design and project justification, staff has assumed a very conservative improvement in cake solids from the current performance of 16-19 percent to 25 percent, as compared to the approximate 30-32 percent cake solids that are typically expected for a comparable plant upgrade. There are two reasons for this uncertainty. First, ATP has historically exhibited poor biosolids dewaterability. This is likely due in part to the intrusion of salt water into the collection system and elevated monovalent cation concentrations in ATP digested solids, as well as to the age and condition of the dewatering centrifuges. Second, the 54 MGD ATP expansion replaced the former high purity oxygen activated solids process with a more conventional anaerobic selector, plug flow process. This caused unintentional biological phosphorus removal (bioP), which was recently demonstrated to cause a significant deterioration in anaerobically-digested solids dewaterability. The specific mechanism for bioP-induced deterioration of dewaterability is an active topic of research, and HRSD continues to participate in national and international efforts to resolve these problems. This research work is relevant to ATP as well NTP and JRTP. Next month, the Water Technology and Research Director will report on several research projects related to this topic, and will provide a summary of an effort to address the question of expected cake solids improvement with the THP upgrade at ATP and to provide guidance for how the upgraded plant should be operated to maximize dewatering performance. This project is being conducted by an HRSD Research Intern, Jeff Nicholson, who is temporarily located and working with Dr. Matt Higgins at Bucknell University.

H. Strategic Measurement Data

1. Education and Outreach Events: 26 a. Two ATP tours for Ocean Lake High School students b. BHTP tour for the Virginia Department of Health c. Charles Bott gave a podium presentation workshop at the Water

Environment Federation (WEF) Residuals and Biosolids Conference. The topic was Drivers and Barriers to the Recovery of Energy & Marketable End-Products

d. Charles Bott gave a podium presentation workshop at the WEF Residuals and Biosolids Conference. The topic was BioP, Anaerobic Digestion and Dewatering: HRSD Nansemond and Atlantic Plants

e. Charles Bott gave presentations on the SWRI at Old Dominion University (ODU)

f. Charles Bott hosted a tour group from New Zealand that visited several treatment plants

g. Charles Bott hosted a tour group from Virginia Department of Health and Virginia Institute of Marine Science (VIMS) that visited several treatment plants and HRSD facilities

h. CETP tour for Norfolk Christian High School students i. Two CETP tours for Landstown High School Students j. Electrical and Energy Management staff participated in the Earth Day

Program at John Yeates Middle School in Suffolk k. Electrical and Energy Management staff participated in the

Empowerment Community Fair at Newsome Park Elementary School in Newport News

l. Electrical and Energy Management staff provided a tour of the ATP for a Tidewater Community College (TCC) student

m. Germano Salazar-Benites gave a presentation at Virginia Wesleyan College about the SWRI Project

n. JRTP tour for guests from the Virginia Department of Health and the Virginia Institute of Marine Science

o. JRTP tour for Boy Scouts from Troops 36 and 242 working on their Soil and Water Conservation Merit Badge

p. NTP tour for staff from Virginia Department of Health q. NS Operations personnel participated in a Hampton Roads Public

Works Academy Field Trip to our work center r. NS Operations personnel participated Touch-A-Truck in the City of

Hampton s. SS Interceptor Systems staff participated in John Yeates Middle

School Earth Day Touch-A-Truck event t. SS Interceptor Systems staff participated in Virginia Beach/Norfolk

Junior League’s Touch-A-Truck event u. VIP staff gave a presentation on Fundamentals of Treatment to a

class at ODU v. YRTP tour for NASA Langley employees w. YRTP tour for SWRI outreach x. YRTP tour for the Virginia Master Naturalists – Williamsburg Chapter


a. ODU b. VIMS c. Norfolk Christian High School d. Landstown High School e. Virginia Department of Health

f. Virginia Institute of Marine Science g. Boy Scouts of America Colonial Virginia Council h. TCC i. John Yeates Middle School j. Newsome Park Elementary School k. NASA Langley l. Virginia Master Naturalists m. Ocean Lakes High School n. Chesapeake Bay Foundation – oyster restoration o. City of Hampton p. Hampton Roads Public Works Academy q. Junior League of Norfolk-Virginia Beach r. WEF

Item # Strategic Planning Measure Unit April 2016 M-1.4a Training During Work Hours per

Full Time Employee (FTE) (503) – Current Month-

Hours / FTE 3.38

M-1.4b Total Training During Work Hours per FTE (503) – Cumulative Year-to-Date

Hours / FTE 34.21

M-2.3a Planned Maintenance Total Maintenance Hours

Total Recorded Maintenance Labor

Hours

31,797

M-2.3b Planned Maintenance – Preventive and Condition Based

% of Total Maintenance Hours

45.85

M-2.3c Planned Maintenance-Corrective Maintenance

% of Total Maintenance Hours

20.10

M-2.3d Planned Maintenance-Projects % of Total Maintenance Hours

34.05

M- 4.1a Energy Use: Treatment *reported for March 2016

kWh/MG 2,029

M-4.1b Energy Use: Pump Stations *reported for March 2016

kWh/MG 176

M-4.1c Energy Use: Office Building *reported for March 2016

kWh/MG 79

M-5.2 Educational and Outreach Events

Number 26

M-5.3 Number of Community Partners Number 18

Respectfully submitted, Steve de Mik

Director of Operations

TO: General Manager FROM: Special Assistant for Compliance Assurance SUBJECT: Monthly Report for April 2016 DATE: May 11, 2016 A. General HRSD continues to implement the hybrid regionalized approach to the Regional

Wet Weather Management Plan (RWWMP) with the next major Consent Decree milestone, the submittal of the Alternatives Analysis Report, scheduled for August 1, 2016.

B. Submittals Completed in April 2016 – The annual update to the Sanitary Sewer

Overflow (SSO) Response Plan was submitted to the U.S. Environmental Protection Agency (EPA) and Virginia Department of Environmental Quality (DEQ) on April 21. The Fiscal Year-2016 Semi-Annual Report was submitted to EPA and DEQ on April 29.

C. Activities

1. Phase 6 – Rehabilitation Plan. Construction continued on the gravity

sewer repair work at 13th Street (SR-052) in West Point. In addition, a damaged force main fitting was discovered at Southern Boulevard in Virginia Beach during field investigations and repair planning began (SR-062).

2. Phase 7 – Regional Wet Weather Management Plan (RWWMP). Solution set development is underway using the Regional Hydraulic Model

(RHM) and Locality Hydraulic Models (LHMs) [2-, 5- and 10-year] with initial focus on the Atlantic Treatment Plant service area and numerous workshops in April. A technical coordination team meeting was held on April 7 to review overall progress. A meeting was also held with senior HRSD staff on derivation of flows for the RWWMP on April 14. HRSD continues to develop an Integrated Plan to evaluate the Sustainable Water Recycling Initiative as a component of the RWWMP.

Work continued on three rehabilitation pilot projects to be used to validate the assumptions and criteria used in Infiltration/Inflow reduction planning. All three projects are substantially complete and post-rehabilitation flow monitoring is underway.

3. Phase 8 – EPA Consent Decree Services. HRSD continues to share

information with the localities through the regional SharePoint site and flow, pressure and rainfall data portal.

4. Phase 9 – Supplemental Services. A monthly compliance program

meeting was held on April 6 to review the RWWMP program with HRSD staff.

Management, Operations and Maintenance (MOM) Program elements are ongoing including the Hydrogen Sulfide (H2S) Monitoring Program and implementation of a Business Intelligence (BI) system for the Small Communities Division (SCD). This includes a MOM update manual guidance document for use on the next major update expected in 2018. The Flow, Pressure and Rainfall (FPR) monitoring program continued in April with data collection and analysis being performed as part of the MOM Program.

Field work for Phase II of the Force Main Condition Assessment (FMCA) Program continued in April on Work Order FMP2 038 Southern Boulevard. Field work for the Gravity Sewer Inspection Program is expected to restart in May. An updated round of pump station inspections continued in April. The Condition Assessment Annual Report for FY2015 is under review.

D. Next Submittals Quarterly Briefing with EPA and DEQ – July 2016

E. Program Budget Status

The overall program budget is $128,093,142, excluding the Master Metering Program. A summary of appropriations and expenses is attached.

F. Strategic Planning Metrics Summary



Item # Strategic Planning Measure Unit April 2016 M-1.4a Total Training Hours Per Full Time

Employee (1) – Current Month Total Training Hours / # FTE

0

M-1.4b Total Training Hours Per Full Time Employee (1) – Cumulative Fiscal Year to Date


67

M-5.2 Educational and Outreach Events Number 0 M-5.3 Number of Community Partners Number 0

Respectfully submitted, Phil Hubbard, P.E. Attachments: Consent Order State & EPA Expenditures

Consent Order State & EPA Expenditures

Total April 2016 AvailableAppropriation Expenditures Balance

Regional Consent Order and Other ConsentOrder Requirements

Regional Hydraulic Model 101,254,812 92,875,551 8,379,261

Manhole Rehab/Replacement Phase I & North Shore Siphon Chamber 2,834,000 237,143 2,596,857

Pump Station Wet Well Rehabilitation Phase I 2,890,000 284,520 2,605,480

Locality System Monitoring and Condition Assessment 14,146,000 11,020,849 3,125,151

Locality Monitoring Unit Price 2,300,000 1,065,210 1,234,790

Locality Monitoring Design Build Pilot 1,626,330 630,579 995,751

Locality Monitoring Design Bid Build Pilot 2,482,000 999,553 1,482,447

West Point Pump Station 3 - Gravity System Repairs 560,000 448,347 111,653 Subtotal - In progress 128,093,142 107,561,752 20,531,390

Completed Work

Regional Consent Order and Other Consent Order Requirements (Included in subtotal above)

Master Metering Program III 2,005,140

Master Metering Program IV 13,628,635

Total 123,195,527

TO: General Manager

FROM: Director of Talent Management

SUBJECT: Monthly Report for April 2016

DATE: May 11, 2016

A. Human Resources

1. Recruitment a. Summary

New Recruitment Campaigns 10 Job Offers Accepted Internal Selections 3

External Selections 6 Internal Applications 47 External Applications 223 Average Days to Fill Position 36

b. Recruitment activities continued for placement of Hampton Roads Public Works Academy summer interns.

2. Enterprise Resource Planning (ERP)

a. Open Enrollment preparations were made including system updates and testing to add benefits and change employee wellness deductible status. Employees will make all selections and changes online, replacing paper forms and the manual process.

b. Work continued with AST consultants to finalize electronic filing of 1094C employer forms to meet Affordable Care Act requirements. Testing required by IRS will be performed to meet the filing deadline.

3. Benefits and Compensation

a. Fiscal Year-2017 Open Enrollment meeting plans were finalized and will be conducted at all work centers in May. Improvements made to increase employee awareness include development of a comprehensive benefit information packet and presentations by multiple providers. In addition, support will be available at each meeting to assist employees in making changes in ERP.

b. The HRSD Benefits Survey team compiled and evaluated survey results for presentation to the HRSD Quality Steering Team.

c. Proposals for FY-2017 medical stop loss coverage were provided by HRSD’s Benefits Consultant.

d. The Compensation and Classification team began interviews.

e. Staff worked with the new Employee Assistance Program (EAP) provider to implement services beginning May 1. An EAP orientation will be provided as part of Open Enrollment.

4. Wellness

a. Participation Activities

Year 3 Participation Activities

Unit April

2016 Year to Date (April 2016–

February 2017) Biometric Screenings Number 1 3 Preventive Health Exams Number 7 14 Preventive Health Assessments

Number 7 26

Coaching Calls Number 1 3 On-Line Health Improvement Programs

Number 37 96

Web-MD Online Health Tracking

Number 70 223

Challenges Completed Number 0 0 Fit-Bit Promotion Number 6 14

b. Forty-four appeals on incentives were received and processed. c. A six-week boot camp class at the Air Rail complex began. d. An open enrollment meeting presentation was developed.

5. Workers Compensation Three new cases were opened with 11 cases remaining active.

6. Employee Relations

HR staff continued to partner and meet with work center supervisors to provide guidance and clarify policies. Several policies are being evaluated and revised.

7. General

a. HR records retention continued to be reviewed. b. Staff worked with Accounting on FY-2017 position reconciliation. c. Talent Management cross-functional workgroups continued to

address communication and collaboration, SharePoint site design, training and job shadowing.

d. Staff attended the following training: (1) Safety and Security Webinar (2) Virginia Society of Human Resources Management

Conference (3) Liberty Mutual’s Ristrac Webinar (4) Oracle E-Business Suite Benefits Set-up Webinar

B. Organization Development and Training

1. Training a. Supervisor Training, which included several new modules, was

held.

b. Preparations began for Learning Week.

c. A training and delivery survey was deployed. Results will be used by the Training Delivery and HRSD University teams.

2. Apprenticeship Program a. Evaluation of options that will provide flexibility with course offerings

while maintaining program quality continued. b. Cumulative exams were completed and apprentices were placed in

succeeding classes to close the 2015-2016 Academic Year.

c. The trade transfer process was evaluated and improved. d. Staff met with the Apprenticeship Chair to discuss strategic initiatives.

3. Quality

a. Plans were finalized for upcoming facilitator training.

b. Facilitators began planning annual work center planning days.

C. Safety

1. Mishaps and Work Related Injuries

a. HRSD-wide Injury Mishap Status to Date (OSHA Recordable)

2015 2016

Mishaps 49 13

Lost Time Mishaps 11 2

Numbers subject to change pending HR review of each case.

b. MOM Program Year Performance Measure Work Related Injuries

April 2016

Injuries For Operations

April 2016 Injuries for

Other HRSD Departments

Total Lost Time Injuries Since

July 2015

Total HRSD Injuries Since

July 2015

0 0 5 42

c. Follow-up investigations were performed on one auto accident.

2. HRSD Safety Training

Strategic Planning Measure Unit April 2016

Total Safety Training Hours per Full Time Employee (769) All HRSD – April 2016

247.98 Hours / 769 FTE

0.32

Strategic Planning Measure Unit April 2016

Total Safety Training Hours Per Full Time Employee (769) – Cumulative July 2015

3692.04 Hours / 769 FTE

4.80

3. In addition to regularly scheduled safety training and medical monitoring,

the following sessions were conducted: a. Five external briefings for contractors working at HRSD treatment

plants and pump stations

b. Forklift training for Middle Peninsula employees

c. Two Infant CPR Lunch & Learn sessions for Air Rail employees. d. Multiple Hot Work Permit training sessions for State Street Pump

Station contractor employees e. Scaffold Safety training for Electrical and Instrumentation employees f. Chain Saw Safety class for Electrical employees

4. Safety Inspections, Testing and Monitoring a. Weekly on-site inspections of the following construction sites:

(1) Army Base Treatment Plant (2) Virginia Initiative Plant (VIP) (3) Norchester Pump Station (4) York River Treatment Plant b. Quarterly safety inspections of the following work centers:

(1) Nansemond Treatment Plant (2) Army Base Treatment Plant (3) Boat Harbor Treatment Plant

c. Monitoring and testing for the following: (1) Monthly hood velocity tests on Central Environmental and

Technical Services lab hoods

(2) A light survey of the State Street Pump Station dry well d. The following safety walk-throughs or inspections were conducted:

(1) Inspection of VIP to prepare for a Virginia Occupational Safety and Health Administration (VOSHA) inspection

(2) A State Street Pump Station walk-through with the pump station supervisor to identify safety issues prior to final acceptance

(3) A safety walk-through at the new Courthouse Pressure Reducing Station in Virginia Beach (4) Inspection of VIP on-going construction with the contractor and

a Virginia Voluntary Compliance officer (5) Inspections of work center hurricane lockers (6) An Army Base Treatment Plant walk-through with an

insurance carrier representative

5. Safety Programs

a. A silica dust safe work practice and presentation was developed.

b. The Safety Shoe guidelines were updated for FY-2017. c. The HRSD Safety Team continued developing the Safety Innovation

Award Program d. Arc flash labels were applied to vault electrical panels at the Victoria

Pump Station

e. A velometer was sent for annual calibration f. The following were performed for Confined Spaces:

(1) Updates to confined space permits for the York River and Army

Base Treatment Plants (2) A meeting with Technical Services Division employees to

address questions related to confined space entry (3) A meeting with an Atlantic Plant Superintendent to discuss a

holding tank confined space permit (4) Assisted with a Norchester Pump Station tour and completed

confined space permits for participants entering the wet well.

g. The Safety Coordinator continued to maintain the Operations Safety Accident Tracking report.

h. Asbestos insulation was repaired at the Pine Street Pump Station. 6. General

Staff attended a Safety and Security Webinar D. Monthly Strategic Planning Metrics Summary

1. Education and Outreach Events: (4)

a. Chesapeake Public Schools Career Fair b. Community Empowerment Fair c. Suffolk Public Schools Career Expo d. Hampton Roads Public Works Academy Employability Skills

2. Community Partners: (3)

a. Hampton Roads Public Works Academy b. Suffolk Public Schools c. Chesapeake Public Schools


M-1.1a Employee Turnover Rate (Total) Percentage 0.51 M-1.1b Employee Turnover due to

Service Retirements Percentage 0

M-1.4a Total Training Hours Per Full Time Employee (14) – Current Month

Total Training Hours/ FTE

5.57

M-1.4b Total Training Hours Per FTE (14) Cumulative Fiscal Year-to-Date

Total Training Hours/ FTE

56.62

M-5.2 Educational and Outreach Events

Number 4

M-5.3 Community Partners Number 3 Respectfully submitted, Paula A. Hogg Director of Talent Management

TO: General Manager FROM: Director of Water Quality (WQ) SUBJECT: Monthly Report for April 2016 DATE: May 13, 2016 A. General

1. No Civil Penalties were assessed this month. 2. The Director attended the Environment Virginia Symposium held in

Lexington, Virginia. Numerous presentations regarding the health of the Chesapeake Bay were provided. The federal Environmental Protection Agency’s (EPA) Chesapeake Bay Office provided a summary of how the next generation Chesapeake Bay watershed model will affect the Bay nitrogen, phosphorous and sediment Total Maximum Daily Loads, or TMDLs. EPA was asked if the new model was expected to change the TMDL targets for each parameter and river. EPA responded that they did not expect the targets to be changed significantly; however, such a change was not quantified. This is one of several variables that HRSD is monitoring relative to future permit requirements and need for facility upgrades.

3. The Director attended the annual Water Policy Forum in Washington, DC.

Each year the EPA summarizes its activities pertaining to protection of the environment and human health. This year, as with last year, the most significant activity relative to HRSD pertains to the development of water quality criteria for viruses. EPA has changed its plan to finalize these criteria in 2017 rather than 2016, which sets the stage for Virginia to adopt these criteria as water quality standards in the following years and include limits for viruses in HRSD permits in the next five to six years. The Water Quality Department has added staff and resources necessary to meet this challenge. Water Quality will continue to work with the Operations Department to develop and implement a strategy for permit compliance in this time frame.

4. The Director attended the Water Environment Research Foundation’s

(WERF) Research Council meeting in Alexandria, VA as a Council member. The Council met to review and discuss current research conducted by WERF on behalf of its subscribers as well as topics for future research. The Director emphasized the need for WERF to be responsive to its subscribers’ needs and that these needs often change over months

versus years. Therefore, more emphasis on very specific research projects rather than broad multi-year programs is in order and WERF’s funding approach should support that emphasis. The Director also introduced the idea of WERF leading research on the topic of designated uses and how they are established. The designated uses of a water body represent a very important part of the water quality standards package for each state and are often characterized relative to aquatic life, recreation, fishing, drinking water and habitat. Most designated uses were established decades ago with little thought as to whether they were attainable. Guidance helping the states to establish appropriate designated uses largely does not exist. Since waterbody use designation is critical to the success of the Clean Water Act and the ability of organizations like HRSD to support the goals of the Act, it seems that this topic deserves much more attention than it has received. The Research Council agreed to pursue this idea.

5. The 23rd Annual Pretreatment Excellence and Pollution Prevention Awards

Ceremony and Luncheon was held on April 20, 2016 at the Hampton Roads Convention Center in Hampton, Virginia. Three industries were honored for their outstanding multi-media Pollution Prevention efforts. Pretreatment Excellence Awards were presented to 105 permitted facilities who achieved perfect compliance for at least the full calendar year of 2015. Thirteen of those industries were recognized for 10 or more years of perfect compliance and 27 of those industries were recognized for five to nine years of perfect compliance.

6. The Central Environmental Laboratory (CEL) hosted a tour for

representatives from the Virginia Department of Health and Office of Drinking Water as part of a Sustainable Water Recycling Initiative workshop. An overview of the Technical Services Division (TSD) was presented, and the tour of the CEL focused on innovative technologies and methods for microbiological source tracking, coliphage analysis, method development and the status of the CEL’s capabilities to analyze Compounds of Emerging Concern.

B. Quality Improvement and Strategic Team Activities

1. The Sustainability Advocacy Group (SAG) rolled out on April 26 the 2016 One Thing Challenge, which focuses on Material Reuse. The challenge will run through October 31, when the SAG will determine the finalists, followed by a vote from the entire organization to determine the top winners in early 2017. The SAG also held many face-to-face meetings with the treatment plants in February/March and we are now looking to schedule presentations to other work centers in the summer. The goal of these

meetings is to promote HRSD’s sustainable initiatives, answer any related questions, and to solicit ideas from all of the work centers. Lastly, the team is working on putting together a “Sustainable HRSD” marketing handout, identifying a couple of potential ponds in Hampton Roads where a floating treatment wetland may be beneficial to the community, and investigating options for composting food waste.

2. The Pretreatment and Pollution Prevention (P3) Technology Team reported

no activity for the month of April. 3. The Pretreatment Information Management System (PIMS) Team reported

that in April work on the new internet based Publicly Owned Treatment Works Administration and Compliance System (iPACS) and the Field Assistant Service Tracking (FAST) application continued. Updated software releases for both iPACS and FAST were received and changes are being verified. Live testing of the two-way interface between iPACS and SampleManager will occur in May and will address sample requesting, use of an electronic Chain of Custody and analytical results.

4. The TSD Technology Team and HRSD’s Information Technology

Department have finalized the agreement to perform a product pilot to evaluate a digital transformation forms program. Testing will begin in June. This new technology allows users to digitally capture data in the field with immediate validation. The digital forms program could be run on various platforms including iPads and tablets.

5. The WQ Communication Team continues to monitor and measure inter-

divisional communication issues within the WQ Department. Quarterly reports will be distributed to the WQ Quality Steering Team (QST).

C. Municipal Assistance

1. HRSD provided sampling and analytical services for the City of Franklin in support of their VPDES permit.

D. Strategic Planning Metrics Summary

1. Educational and Outreach Events: 4 a. Staff provided a wastewater education module to the fourth grade

science students at Nansemond Suffolk Academy. b. Staff provided a presentation to 100 fourth graders at Indian Lakes

Elementary.

c. Staff provided a tour to Norfolk Christian High School students. d. Staff provided a tour to Landstown High School students.


a. TSD and the Laboratory Division assisted the City of Newport News with a microbial source tracking project at Hilton Beach.

b. TSD and the Laboratory Division assisted the City of Virginia Beach in its bacteria/nutrient resuspension study in Mill Dam Creek/Broad Bay watershed.

c. TSD and the Laboratory Division assisted the City of Suffolk in a nutrient/bacteria study for Shingle Creek.

d. TSD and the Laboratory Division provided Chlorophyll Monitoring and Assessment Program support to the Department of Environmental Quality (DEQ) in monitoring the James River.

e. TSD staff assisted the City of Newport News to identify the sources of bacterial contamination in high priority watersheds as identified through citizen monitoring.

f. TSD staff assisted the City of Chesapeake and the Elizabeth River Project with bacterial monitoring and fecal source identification in the Indian River.

3. North Shore/South Shore Capacity Related Overflows: 0 4. Industrial Waste Related System Issues - The City of Norfolk contacted P3

regarding a sheen accompanied by a solvent/paint thinner smell in their pump station (PS) off Village Avenue (PS 52) on April 18. HRSD was asked to check its Virginia Beach Boulevard PS (PS 130). Interceptors found the same substance at PS 130 and reported back to P3. P3 contacted Hepaco to pump out the HRSD station while P3 Specialists proceeded to the field and investigated 13 facilities that discharge to PS 52 but could not identify a source. The waste was no longer being discharged into the system and residue could not be found at any of the facilities. P3 did identify a couple of facilities that provide commercial painting services; these facilities will be monitored in the future. Impact to treatment did not occur as HRSD was successful in keeping the waste contained in PS 130 and allowing Hepaco to remove the entire illicit discharge from this PS.

Item # Strategic Planning Measure Unit April 2016 M-1.4a Training During Work Hours Per

Full Time Employee (102) (Current Month)

Total Hours / # FTE 9.42

M-1.4b Total Training During Work Hours Per Full Time Employee (102) (Cumulative Fiscal Year-to-Date)

Total Hours / # FTE 66.55

M-2.5 North Shore/South Shore Capacity Related Overflows

# within Level of Service

0

M-3.1 Permit Compliance # of Exceedances: # of Permitted Parameters

1:43,743

M-3.2 Odor Complaints # 0

M-3.4 Pollutant Removal Total Pounds Removed

156,823,276

M-3.5 Pollutant Discharge % Pounds Discharged/Pounds Permitted

22%

M-5.2 Educational and Outreach Events # 4

M-5.3 Community Partners # 6

Average Daily Flow Total MGD for all Treatment Plants

150.36

Industrial Waste Related System Issues

# 1

Respectfully submitted, James Pletl, PhD Director of Water Quality

Hampton Roads Sanitation District Internal Audit Status April 30, 2016

Page 1 of 1

Engagement Background Our team is continuing to progress with the planned internal audit assignments. We continued the process of finalizing the Design & Construction: CIP Project Management review and commenced with the Biosolids Program review. Our audit process consists of three phases:

• Planning: Reviewing relevant background information, gaining an understanding of, and documenting the key areas to be reviewed

• Fieldwork: Testing and examining pertinent documents, reports, transactions, and information to confirm the strength of the processes and related controls

• Reporting: Discussing the conclusions of our audit work and ultimately issuing a written report with suggestions being provided (if identified)

Project Accomplishments During the month of April, our team performed the following:

• Design & Construction: CIP Project Management Review: o Completed and communicated the draft report to Engineering management for review and

response o Finalized process the flowcharts to be provided to the Engineering team

• Biosolids Program Review: o Obtained and reviewed relevant process documentation o Met with the Recycling Manager to perform a detailed process walkthrough o Drafted process flowcharts for all relevant processes identified

Projected Tasks for May During the month of May, our team will:

• Design & Construction: CIP Project Management Review: o Obtain Management Action Plans and implementation dates to address noted observations o Deliver a final written report which will incorporate the Management Action Plans

• Biosolids Program Review: o Finalize process flowcharts o Develop the audit program o Conduct audit testwork o Begin to draft audit report

Engagement Notes/Delays None noted Future Activity/Engagements We anticipate moving on to the third internal audit project in July

Strategic Planning Metrics Summary

Annual MetricsItem Strategic Planning Measure Unit Target FY-10 FY-11 FY-12 FY-13 FY-14 FY-15M-1.1a Employee Turnover Rate (Total) Percentage < 8% 5.63% 4.09% 6.64% 7.62% 8.22% 9.97%M-1.1b Employee Turnover Rate within Probationary Period 0% 2.22% 8.16% 14.58% 9.68% 0.66%M-1.2 Internal Employee Promotion Eligible Percentage 100% 59% 80% 69.57% 71.43% 64.00%M-1.3 Average Time to Fill a Position Calendar Days < 30 70 60 52 43.76 51M-1.4 Training Hours per Employee - cumulative fiscal year-to-date Hours > 40 30.0 43.8 37.5 35.9 42.8M-1.5a Safety OSHA 300 Incidence Rate Total Cases # per 100 Employees < 3.5 6.57 6.15 5.8 11.2 5.07 3.87M-1.5b Safety OSHA 300 Incidence Rate Cases with Days Away # per 100 Employees < 1.1 0.74 1.13 1.33 0.96 1.4 0.82M-1.5c Safety OSHA 300 Incidence Rate Cases with Restriction, etc. # per 100 Employees < 0.8 3.72 4.27 2.55 4.5 2 1.76M-2.1 CIP Delivery - Budget Percentage 113% 96% 124% 149% 160%M-2.2 CIP Delivery - Schedule Percentage 169% 169% 161% 150% 190%

M-2.3a Total Maintenance Hours Total Available Mtc Labor Hours Monthly Avg 16,495 22,347 27,615 30,863 35,431 M-2.3b Planned Maintenance Percentage of Total Mtc Hours Monthly Avg 20% 27% 70% 73% 48%M-2.3c Corrective Maintenance Percentage of Total Mtc Hours Monthly Avg 63% 51% 12% 10% 18%M-2.3d Projects Percentage of Total Mtc Hours Monthly Avg 18% 22% 20% 18% 32%M-2.4 Infrastructure Investment Percentage of Total Cost of Infrastructure 2% 8.18% 6% 6% 4% 7%M-3.3 Carbon Footprint Tons per MG Annual Total 1.61 1.57 1.47 1.46 1.44M-3.6 Alternate Energy Total KWH 0 0 0 5,911,289 6,123,399M-4.1a Energy Use: Treatment kWh/MG Monthly Avg 2,473 2,571 2,229 2,189 2,176 M-4.1b Energy Use: Pump Stations kWh/MG Monthly Avg 197 173 152 159 168 M-4.1c Energy Use: Office Buildings kWh/MG Monthly Avg 84 77 102 96 104 M-4.2 R&D Budget Percentage of Total Revenue > 0.5% 1.0% 1.4% 1.0% 1.3% 1.0%

M-4.3 Total Labor Cost/MGDPersonal Services + Fringe Benefits/365/5-Year Average Daily Flow $1,028 $1,095 $1,174 $1,232 $1,249 $1,279

M-4.4 Affordability8 CCF Monthly Charge/Median Household Income < 0.5% 0.48% 0.48% 0.41% 0.43% 0.53%

M-4.5 Total Operating Cost/MGDTotal Operating Expense/365/5-Year Average Daily Flow $2,741 $2,970 $3,262 $3,316 $3,305 $3,526

M-5.1 Name Recognition Percentage (Survey Result) 100% 67% 71% N/A 62% N/A 60%M-5.4 Value of Research Percentage - Total Value/HRSD Investment 129% 235% 177% 149% 181%M-5.5 Number of Research Partners Annual Total Number 42 36 31 33 28

Rolling 5 Year Average Daily Flow MGD 157.8 155.3 152 154.36 155.2 151.51Rainfall Annual Total Inches 66.9 44.21 56.21 46.65 46.52 51.95Billed Flow Annual Percentage of Total Treated 71.9% 82.6% 78% 71% 73% 74%Senior Debt Coverage Net Revenue/Senior Annual Debt Service > 1.5 2.51% 2.30% 2.07% 1.88% 1.72% 1.90%Total Debt Coverage Net Revenue/Total Annual Debt >1.4 1.67% 1.67% 1.46% 1.45% 1.32% 1.46%

*These metrics will be reported upon closeout of fiscal year financials.

Monthly Updated MetricsItem Strategic Planning Measure Unit Target FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 Mar-16 Apr-16

Average Daily Flow MGD at the Plants < 249 136 146.5 158.7 156.3 153.5 164.0 150.4Industrial Waste Related System Issues Number 0 3 6 6 6 2 0 1Wastewater Revenue Percentage of budgeted 100% 97% 96% 98% 107% 102% 103% 102%General Reserves

Percentage of Operating and Improvement Budget 75% - 100% 72% 82% 84% 92% 94% 102% 101%Accounts Receivable (HRSD) Dollars (Monthly Avg) 17,013,784$ 17,359,488$ 18,795,475$ 20,524,316$ 20,758,439$ $20,198,975 $21,162,319Aging Accounts Receivable Percentage of receivables greater than 90 days 21% 20% 18% 19% 21% 22% 19%

M-2.5 Capacity Related Overflows Number within Level of Service 0 25 1 30 5 11 0 0M-3.1 Permit Compliance # of Exceedances to # of Permitted Parameters 0 12:55,045 1:51995 2:52491 1:52491 2:52491 1:39368 1:43743M-3.2 Odor Complaints Number 0 6 2 7 11 5 0 0M-3.4 Pollutant Removal (total) Total Pounds Removed 178,163,629 171,247,526 176,102,248 185,677,185 180,168,546 141,112,454 156,823,276M-3.5 Pollutant Discharge (% of permitted) Pounds Discharged/Pounds Removed < 40% 25% 22% 25% 22% 22% 23% 22%M-5.2 Educational and Outreach Events Number 302 184 238 322 334 43 60M-5.3 Number of Community Partners Number 280 289 286 297 321 30 35

FLOW % of BOD TSS FC ENTERO TP TP TN TN TKN NH3 CONTACTPLANT mgd Design mg/l mg/l #/UBl #/UBl mg/l Yr Avg mg/l Yr Avg mg/l mg/l TANK EX

ARMY BASE 8.96 50% 4 3.5 8 3 0.65 0.79 7.7 8.2 NA NA 9ATLANTIC 26.81 50% 13 8.1 3 1 NA NA NA NA NA NA NABOAT HARBOR 13.55 54% 8 6.3 2 1 0.48 0.40 25 17 NA NA 5CENT. MIDDLESEX 0.013 54% <2 <1.0 <1 <1 NA NA NA NA 0.61 <0.20 NACHES-ELIZ 17.64 73% 17 12 37 6 1.5 1.2 32 29 NA NA 4JAMES RIVER 13.01 65% 3 2.7 2 2 0.92 0.62 6.0 9.2 NA NA 2KING WILLIAM 0.037 37% <2 0.78 NA 2 0.02 0.02 0.85 0.77 0.89 NA NANANSEMOND 18.50 62% 4 7.5 4 1 1.5 1.1 7.9 7.4 NA NA 21URBANNA 0.040 40% 6 13 2 1 3.4 3.4 29 30 NA <0.20 NAVIP 31.11 78% 5 5.6 3 1 0.55 0.62 8.4 7.9 NA NA 4WEST POINT 0.391 65% 20 17 1 1 3.0 2.2 16 14 NA 8.9 0WILLIAMSBURG 7.83 35% 3 2.7 7 2 0.29 0.46 7.4 6.6 NA NA 2YORK RIVER 12.49 83% 7 2.6 1 1 0.29 0.25 4.1 5.3 NA NA 8

150.36 8 7

% of Capacity

North Shore 57% TN Projected TPSouth Shore 62% Tributaries WLA TN WLA WLAMid Peninsula 56% James River 27% 80% 26%

York River 28% 84% 24%Rappahannock 85% 254% 127%

Pounds of Pollutants Removed in FY16 to Date: 156,823,276 MonthPollutant Lbs Discharged/Permitted Discharge FY16 to Date: 22%

Normal for YTD 14.12" 12.12"

3.03" 2.78"Normal for Month 4.35" 3.27"

Year to Date Total 13.60" 17.11"

3,090 348 382%Rainfall

Permit Exceedances:Total Possible Exceedances, FY16 to Date: 1:43,743 North Shore South Shore

4,770,228 294,975 79%243,564 13,638 71%

TN Pounds TP Pounds TP WLA

EFFLUENT SUMMARY FOR APRIL 2016

Tributary SummaryProjected Projected Projected

AIR EMISSIONS SUMMARY FOR APRIL 2016

No. of Permit Deviations below 129 SSI Rule Minimum Operating Parameters Part 503e LimitsBZ Temp Venturi(s) PD Tray PD Precooler Flow Spray Flow Venturi Flow Tray/PBs Flow Scrubber Any THC THC BZ Temp12 hr ave 12 hr ave 12 hr ave 12 hr ave 12 hr ave 12 hr ave 12 hr ave pH Bypass Mo. Ave DC Daily Ave

MHI PLANT (F) (in. WC) (in. WC) (GPM) (GPM) (GPM) (GPM) 3 hr ave Stack Use (PPM) (%) Days >Max

ARMY BASE 0 0 0 0 0 0 0 0 2 34 100 0

BOAT HARBOR 0 0 0 0 n/a 1 2 0 2 29 99 0

CHES‐ELIZ 2 0 3 n/a 0 0 0 0 1 27 99 0

VIP 0 0 0 0 n/a 0 0 1 1 70 98 0

WILLIAMSBURG 0 0 0 0 n/a 0 0 0 2 13 99 0

ALL OPERATIONS

DEQ Reportable Air Incidents: 1 No. of Permit Deviations/Possible No. of Permit Deviations (4/16) = 15/3300 No. of Permit Deviations/No. of Possible Permit Deviations (CY16 to date)* = 44/4510

DEQ Request for Corrective Action (RCA): 0Total Time on Bypass/Total Time Operating (3/16) = 3.9 hrs/3174 hrs

DEQ Notice of Violation (NOV): 0 Total Time on Bypass/Total Time Operating (CY16 to date)* = 6.8 hrs/4408 hrs

Other Air Permit Deviations: 0 Tons Solids Processed (4/16) = 2339 Total Tons Solids Processed (CY16 to date)* = 3243

Odor Complaints Received: 0 Average Dry Ton per Day (DTD) per MHI unit = 15.8

Odor Scrubber HRSD Exceptions: 3 * CY16 commences with 03/21/16 compliance requirements

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