Approved FY 2017 Operating and FY 2016 - FY 2025 Capital Budgets

658 Pages·2016·33.1 MB·English

APPROVED FY 2017 BUDGETS
district of columbia water and sewer authority
ADOPTED DECEMBER 3, 2015
(Fiscal year starts on October 1)
Matthew T. Brown, Board Chairman
George S. Hawkins, CEO and General Manager
Mark T. Kim, Chief Financial Officer
INNOVATIVE and
STRATEGIC PERFORMANCE
Cambi digesters
Blue Horizon 2020 Strategic Plan

The DC Water Blue Horizon 2020 Strategic Plan, adopted by the Board of Directors in March 2013, serves as a blueprint for achieving a vision to be a
world-class water utility. Three focus areas – leadership, value and innovation – serve as key drivers in achieving the goals and objectives of the plan. By
laying out a course of action, Blue Horizon represents a disciplined process for making fundamental decisions and shaping DC Water’s future, including the
appropriate allocation of funding.

FOCUS AREAS MISSION

Leadership: DC Water will advocate and lead local, regional, and Exceed expectations by providing high quality water services in a safe,
national collaborations, while internally developing the workforce of the environmentally friendly, and efficient manner.
future.
Value: DC Water will be recognized for the value it delivers by GOALS
protecting public health and the environment, supporting community
sustainability, and providing for economic vitality. The goals in our strategic plan framework represent the core strategies
Innovation: DC Water will achieve international prominence in that DC Water will pursue. The Board and Executive Management
development and adoption of science, technology, and processes in believe that they are essential to the achievement of the mission and to
support of a culture of innovation. becoming a world-class water utility.

VISION OBJECTIVES

To be a world-class utility. Objectives are the strategic measures that will enable the Board and
Executive Management to evaluate achievement of the goals. Some of
VALUES the specific measures will need to be further researched and refined as
the organization implements the plan and obtains additional insight and
Respect: Serve with a positive attitude, courtesy, and respect that information.
engender collaboration and trust.
Ethics: Maintain high ethical standards, accountability, and honesty as we INITIATIVES
advance the greater good.
Vigilance: Attend to public health, the environment, quality, efficiency, Initiatives are the allocation of resources (time and money) to achieve
and sustainability of our enterprise. the objectives and the goals.
Accountability: Address challenges promptly, implement effective
solutions, and provide excellent service as a committed team.
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BOARD OF DIRECTORS Biju George, Chief Operating Officer Christine DeBarbadillo, Director, Clean Water and
Mark T. Kim, Chief Financial Officer Technology
PRINCIPAL MEMBERS
John Lisle, Chief, External Affairs
CUSTOMER CARE AND OPERATIONS
Matthew Brown, Chair, District of Columbia
Leonard R. Benson, Chief Engineer
Cuthbert Braveboy, Director, Sewer Services
Ellen O. Boardman, District of Columbia
Rosalind Inge, Assistant General Manager, Support Services
Jason Hughes, Director, Utility Services - Water
Rachna Butani-Bhatt, District of Columbia
Charles W. Kiely, Assistant General Manager, Customer
Lauren Preston, Director, Customer Services
Obiora “Bo” Menkiti, District of Columbia Care and Operations
Chuck Sweeney, Director, Distribution and Conveyance
Alan J. Roth, District of Columbia Thomas Kuczynski, Chief Information Officer
Systems
Vacant, District of Columbia Randy E. Hayman, General Counsel
OFFICE OF THE CHIEF FINANCIAL OFFICER
Timothy L. Firestine, Montgomery County, MD Alan Heymann, Chief Marketing Officer
Gail Alexander-Reeves, Director, Budget
Elisabeth Feldt, Montgomery County, MD Aklile Tesfaye, Assistant General Manager, Blue Plains
Val Blinkoff, Manager, Financial Systems and Controls
Nicholas A. Majett, Prince George’s County, MD
Bradley Frome, Prince George’s County, MD SENIOR MANAGEMENT TEAM Robert Hunt, Director, Finance
Syed Khalil, Manager, Revenues and Financial Planning
James Patteson, Fairfax County, VA
OFFICE OF THE GENERAL MANAGER
John Madrid, Controller

John Bosley, Chief Procurement Officer
ALTERNATE MEMBERS
SUPPORT SERVICES
Ernest Jolly, Energy Chief
Howard Gibbs, District of Columbia
Dan Bae, Director, Procurement
Maureen Holman, Sustainability Chief
Ana Harvey, District of Columbia
Steve Caldwell, Director, Security
Sudhir Murthy, Innovations Chief
Kendrick Curry, District of Columbia
Timothy Fitzgerald, Director, Fleet Management
Vacant, District of Columbia OFFICE OF THE SECRETARY (BOARD)
Rick Green, Director, Human Capital Management
Vacant, District of Columbia Linda R. Manley, Board Secretary
Ayodele McClenney, Director, Occupational Safety and
Vacant, District of Columbia Health
CHIEF ENGINEER Johnnie Walker, Director, Facilities Management
David W. Lake, Montgomery County, MD

Liliana Maldonado, Director, Engineering and Technical
Bonnie Kirkland, Montgomery County, MD EXTERNAL AFFAIRS
Services
Shirley Branch, Prince George’s County, MD
Emanuel Briggs, Community Outreach Manager
Carlton Ray, Director, DC Clean Rivers Project
Adam Ortiz, Prince George’s County, MD
Pamela Mooring, External Communications Manager
Brian McDermott, Director, Permit Operations
Sarah Mostch, Fairfax County, VA
Scott Ellinwood, Internal Communications Manager
WASTEWATER TREATMENT
William Pickering, Government Relations Manager
EXECUTIVE MANAGEMENT TEAM
Salil Kharkar, Director, Operations, Wastewater Treatment
Tamara Stevenson, Production Manager
Anthony Mack, Director, Maintenance Services
EXECUTIVE STAFF
George S. Hawkins, CEO and General Manager Nicholas Passarelli, Director, Process Engineering OFFICE OF CHIEF INFORMATION OFFICER
Mustaafa Dozier, Esq., Chief of Staff Chris Peot, Director, Resource Recovery Joseph M. Edwards, Director, Infrastructure and Operations
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ACKNOWLEDGEMENTS

The office of the Chief Financial Officer would like to extend our appreciation to the Executive Team and Senior
Management Staff for their strategic guidance and leadership.
In addition, we would like to acknowledge the following staff members from the departments of Finance, Accounting &
Budget, Engineering & Technical Services and External Affairs for their hard work and dedication geared towards the
publication of this document.

Gail Alexander-Reeves Paul Guttridge
Robert Hunt Rodea Hines
Syed Khalil Michelle Idowu
Annie Fulton-George Stacey Johnson
Lola Oyeyemi Bill Jones
Laura Adetoroye William Lake
Gus Bass Reginald Lipscomb
Ivan Boykin Priscilla Loperfido
Dionne Butcher-Wallace Sarah Mandli
Deborah Cole Melinda Massey
Ted Coyle Hilda McKoy
Kunle Fagbohunka Getachew Melsew
Evel Fonfrele Dennis Samson
Michael Goddard Suzette Stona
Ermon Green Pade Zuokemefa

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TABLE OF CONTENTS

Section I. Executive Budget Summary ............................ I-1 Section IV. Rates and Revenue
DC Water Cash Receipts ............................................... IV-2
Section II. Budget Overview Customer Accounts ........................................... IV-4
DC Water Key Facts & Service Area Map ................... II-2 Consumption ....................................................... IV-8
Budget Summary ................................................................ II-4 Recent & Proposed Rate & Fee Changes ................. IV-10
FY 2016 – FY 2017 Comparative Expenditures .......... II-5 FY 2016 Rate & Fee Changes ........................ IV-16
FY 2016 – FY 2017 Comparative Revenues ................ II-6 Proposed FY 2017 Rate & Fee Changes ..... IV-18
FY 2017 Proposed Retail Rates & Fees ........................ II-7 Proposed FY 2018 Rate & Fee Changes ..... IV-19
FY 2018 Proposed Retail Rates & Fees ........................ II-8 Why Rate Increases are Needed ............................... IV-27
Cash Flow Summary ......................................................... II-9 Affordability of Retail Rates ........................................ IV-34
DC Water History and Governance .......................... II-10
Accounting and Budget Processes .............................. II-11 Section V. FY 2016 – FY 2025 Capital Program
FY 2017 Budget Calendar ............................................. II-12 Capital Improvement Program (CIP) Overview ......... V-2
Wastewater System Capacity ...................................... II-13 CIP 10-Year Disbursement Plan & Lifetime Budget .. V-5
Water System Capacity ................................................. II-14 Service Areas:
Regional Demographics and Customer Demand..... II-15 Non-Process Facilities ......................................... V-6
Wastewater Treatment ...................................... V-9
Section III. FY 2016 – FY 2025 Financial Plan Combined Sewer Overflow............................ V-15
Blue Horizon 2020 DC Water Board Strategic Stormwater ........................................................ V-18
Plan ......................................................................... III-2 Sanitary Sewer ................................................... V-22
FY 2016 – FY 2025 Financial Plan .................................. III-4 Water .................................................................. V-27
Key Financial Policies ........................................................ III-5 Additional Capital Programs ............................V-34
Financial Accomplishments ............................................. III-8
Future Goals and Financial Assumptions .................. III-15 Section VI. Capital Financing Cash and Debt
Revenues .......................................................................... III-21 Ten-Year Sources of Capital Financing ....................... VI-2
Ten-Year Financial Plan ............................................... III-26 Sources & Uses of Funds ................................................ VI-3
Operating Expenditures ................................................ III-27 Cash Reserves Summary ................................................. VI-4
Financial Performance ................................................... III-29 Debt Management FY 2015 – FY 2017 ........................ VI-5
Capital Financing ........................................................... III-30 Outstanding Debt ............................................................. VI-6
Cash Position and Reserves ......................................... III-34 Debt Management Terms ............................................... VI-7
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TABLE OF CONTENTS

Senior & Subordinate Debt Service Coverage .......... VI-8 Distribution and Conveyance Systems....... VII-42
Existing and Projected Debt Service Engineering and Technical Services ............. VII-46
FY 2016 – FY 2025 ............................................. VI-9 DC Clean Rivers (CSO LTCP) .................... VII-50
Debt Service as Percentage of O&M Expenditures Permit Operations .......................................... VII-54
FY 2016 – FY 2025. .......................................... VI-10 General Manager ............................................. VII-58
Outstanding & Proposed Debt Office of the Secretary (Board) ................... VII-62
FY 2016 – FY 2056 ........................................... VI-11 Internal Audit ................................................... VII-66
Principal Debt Outstanding .......................................... VI-12 General Counsel ............................................. VII-70
Principal vs. Net Fixed Assets ..................................... VI-13 External Affairs ................................................ VII-74
Debt to Net Fixed Assets Ratio ................................. VI-14 Information Technology ................................ VII-78
Finance, Accounting and Budget .................. VII-82
Section VII. Departmental Summaries Asst. Gen. Mgr. – Support Services ............ VII-86
Introduction to DC Water’s Operational, Administrative Human Capital Management ........................ VII-90
and Support Departments ............................... VII-2 Facilities Management .................................... VII-98
FY 2016 – FY 2017 Operating Expenditures ............ VII-3 Security ............................................................ VII-102
Comparative Operating Expenditures Budgets ........ VII-4 Procurement .................................................. VII-106
FY 2016 Approved Budget by Category .................... VII-5 Occupational Safety and Health ................. VII-110
FY 2017 Approved Budget by Category .................... VII-6 Fleet Management ......................................... VII-114
Filled vs. Vacant Positions ............................................. VII-7
Authorized Positions ...................................................... VII-8 Section VIII. Glossary, Acronyms & Resolutions
Annual Overtime Trends .............................................. VII-9 Glossary ........................................................................... VIII-2
Overtime by Department ........................................... VII-10 Acronyms ...................................................................... VIII-10
DC Water Organization Chart ................................. VII-11 Resolutions
Wastewater Treatment - Operations ........ VII-12
Wastewater Treatment - Process Engineering ....
............................................................................. VII-20
Maintenance Services ...................................... VII-24
Water Services ................................................. VII-28
Sewer Services ................................................. VII-34
Customer Service ............................................ VII-38
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OPERATING
BUDGETS
district of columbia water and sewer authority
Section I

EXECUTIVE
BUDGET SUMMARY
Executive Budget Summary
Approved FY 2017 • Adopted December 3, 2015
(Fiscal year starting October 1)
Matthew T. Brown, Chairman of the Board
George S. Hawkins, CEO and General Manager
Mark T. Kim, Chief Financial Officer
district of columbia water and sewer authority
Anaerobic digesters
Executive Budget Summary
DC water is an independent authority of the District of Columbia, Strategic Plan (Blue Horizon 2020 Goals)
established under District of Columbia and Federal law; governed
by an 11-member Board of Directors. 1. Develop, Maintain, and Recruit a High
Performing Workforce
It provides clean drinking water to residents of the District of Columbia
and wastewater and stormwater conveyance, and treatment services to 2. Collaborate Locally, Regionally, Nationally
both residents of the District of Columbia and wholesale customers in and Internationally
Maryland and Virginia.
3. Increase Board Focus on Strategic Direction
This standalone document is intended for our diverse stakeholders. 4. Enhance Customer and Public
Additional Information can be found in the detail copies of our Confidence, Communications and
approved budget book available online at dcwater.com. Perception
DC Water’s Board of Directors and the Executive Management Team 5. Promote Financial Sustainability and
collaborated to assess key industry trends and the greatest challenges, Responsible Resource Allocation
and to identify the critical factors important to DC Water’s long term
success. This led to the adoption of DC Water’s Blue Horizon 2020 6. Assure Safety and Security
strategic plan, adopted by the Board of Directors in March 2013. The
7. Maximize Water Quality Treatment,
plan provides the framework for the formulation, prioritization and
Compliance and Efficiency
monitoring of the (operating and capital) budgets and financial
planning process. Below are the strategic plan goals. 8. Optimally Manage Infrastructure
9. Enhance Operating Excellence through
Innovation, Sustainability, and Adoption of
Best Practices
Board of Directors
Environmental Human
DC Retail Water Quality
Quality and Finance and Resources Strategic
Audit Water and Governance and Water
Sewarage Budget and Labor Planning
Committee Sewer Rates Committee Services
Services Committee Relations Committee
Committee Committee
Committee Committee
Content
CEO / General Manager’s Message 1
Chief Financial Officer’s Message 2
Budget Summary 3
Looking Ten Years Ahead 4
Operating Budget 6
Debt Management 8
Capital Improvement Program 9
Operating Revenues, Rates, Charges and Fees 10
Customer Assistance and Regional Demographics 12
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