commission meeting minutes december 20, 2016 minutes/2016/12-20-16... · newport news for the...

COMMISSION MEETING MINUTES December 20, 2016

Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 of 8

No. Topic Page

1. Awards and Recognition 2-3

2. Consent Agenda 4

a. Approval of Minutes 4

b. Contract Award and Task Order 4

c. Rejection of Bids 4

d. Contract Change Order 4

e. Sole Source 4

3. Newport News Transportation Center Agreement 5

4. Virginia Resources Authority (VRA) Master Financing AgreementDesignation of District RepresentativesResolution

6

5. Unfinished Business 7

6. New Business 7

7. Commissioner Comments 7

8. Public Comments Not Related to Agenda 7

9. Informational Items 8

a. Management Reports 8

b. Strategic Planning Metrics Summary 8

c. Effluent Summary 8

d. Air Summary 8

e. Emergency Declaration – Chesapeake-Elizabeth TreatmentPlant Sulzer Effluent Pump Repair

8

10. Announcements 8

Attachments (4)



Name Title Present for Item Nos.

Elofson, Frederick N. Commission Chair 1-10 Lynch, Maurice P. Commission Vice-Chair 1-10 Bredemeyer, Arthur C. Commissioner Absent Glenn, Michael E. Commissioner 1-10 Lakdawala, Vishnu K. Commissioner 1-10 Levenston, Jr., Willie Commissioner 1-10 Rodriguez, Stephen C. Commissioner 1-10 Rotkis, Susan M. Commissioner Absent

1. AWARDS AND RECOGNITION

Action: No action required.

Brief:

a. Mr. Henifin introduced Ms. Amy Murphy, who was recently promoted to Chiefof Procurement. Amy was hired as a part-time Purchasing Clerk in 1992 as apart of a program with Cox High School, and became a full-time Buyer in1994. In 2010, she was promoted to Procurement Analyst. Amy earned aBachelor’s degree in Business Administration from Saint Leo University in1997, has been a Certified Professional Public Buyer since 1996 and VirginiaContracting Officer since 1999. In 2014 she was honored as the VirginiaAssociation of Governmental Purchasing Buyer of the Year. Amy has servedon many HRSD teams, including the Supplemental Carbon ProductProgram Team, New Building Team and the Enterprise ResourcePlanning (ERP) Team. She is an active member of NIGP: The Institute forPublic Procurement, the Institute for Supply Management and the VirginiaAssociation of Governmental Purchasing (VAGP). Amy also participates innumerous community charity events.

b. Mr. Henifin introduced Ms. April Cooke, who recently received herprofessional designation as a Certified Professional Public Buyer (CPPB)based on her years of work experience, training in public procurement andmany hours of study. This national certification, administered by the UniversalPublic Procurement Certification Council, measures specific areas of publicprocurement knowledge and sound decision making. The CPPB certificationalso demonstrates a national standard of competency in the publicprocurement profession.



April was hired in March 2008 as a part-time Procurement Assistant and was promoted to Procurement Specialist in July 2014, the position she holds today. Over the course of her HRSD career, April has successfully led many technical procurement projects and supported a variety of procurement initiatives.

Before starting her career with HRSD, April served in the United States Navy from 2000 to 2008 as an Aviation Electrician. She earned her Bachelor of Science degree from Old Dominion University (ODU) in 2012. She is a member of ODU’s National Leadership and Honors Organization, the Virginia Association of Governmental Purchasing (VAGP), and NIGP: The Institute for Public Procurement. April also leads HRSD’s Sustainability Advocacy Group.

On a personal note, April enjoys the outdoors and staying active. She is also passionate about living a sustainable life to reduce her carbon footprint on the environment. In July 2015, April and her husband built their own custom 224 square foot tiny house where they currently reside.

c. On behalf of the Commission, Chair Elofson presented service award gifts toMr. Ted Henifin who marked his 10th year of service with HRSD on November1. He thanked Ted for his extraordinary accomplishments, highlighting that inthe 10 years since Ted joined HRSD, he has become known in Virginia andeven internationally in our industry as an innovator and creative thinker. Hehas been tapped for many leadership positions, serving on the NACWAboard and as one of its committee chairs. He has been the VAMWApresident and an officer of numerous community boards.

Chair Elofson said it is his vision as General Manager for which thisCommission is most grateful. He has been confronted with numerouschallenges, and pursued non-traditional solutions that will benefit ourratepayers, our region and our commonwealth for decades to come. ChairElofson, on behalf of a grateful Commission, thanked Mr. Henifin for 10amazing years, and repeated his SWIFT toast – “To the future! May you andHRSD continue to achieve great things over all the years to come.”

Attachment: None

Public Comment: None



2. CONSENT AGENDA

Action: Approve the items listed in the Consent Agenda.

Moved: Maurice Lynch Ayes: 6 Seconded: Michael Glenn Nays: 0

Brief:

a. Approval of minutes from previous meeting.

b. Contract Awards

1. Warwick Boulevard to James River Influent Force MainSection 1 Contract Award (>$200,000)

Task Order (>$200,000)

$2,271,248

$236,751

c. Rejection of Bids

1. Sodium Hydroxide Blanket Purchase Agreement

d. Change Orders

1. Technical Services Division Internet-based Publicly OwnedTreatment Works Administration and Compliance System(iPACS), Biosolids System Enhancements

$6,300

e. Sole Source

1. BMC Track-It! Licenses, Maintenance and Support Services

Item(s) Removed for Discussion: None

Attachment #1: Consent Agenda




3. NEWPORT NEWS TRANSPORTATION CENTER AGREEMENT

Action: Approve the terms and conditions of the agreement with the City ofNewport News for the relocation of the Colony Area Interceptor Force MainSection II and authorize the General Manager to execute same, substantiallyas presented, together with such changes, modifications and deletions as theGeneral Manager may deem necessary.

Moved: Willie Levenston Ayes: 6 Seconded: Vishnu Lakdawala Nays: 0

Project Description: The City of Newport News, in conjunction with a number ofother state and federal agencies, will be constructing the Newport NewsTransportation Center at 500 Bland Boulevard. This project will include therelocation of approximately 1,800 linear feet of 18-inch and 24-inch force mainsewer pipe within the CSX Railroad right-of-way adjacent to Bland Boulevard andCampbell Road in Newport News. This project will also include the relocation ofwater, storm water, fiber optic, City of Newport News gravity sewer and force mainsewer.

Agreement Description: The attached agreement for Hampton Roads SanitationDistrict Force Main Improvements at the Newport News Transportation Centerbetween HRSD and City of Newport News has been reviewed by HRSD legalcounsel.

Analysis of Cost: The total estimated cost for the Newport News TransportationCenter is $41,000,000. The HRSD portion of this cost is estimated at $1,300,000.The total estimated cost for this project is based on a conceptual cost estimateprepared by the City of Newport News and Parson Brinckerhoff. The City ofNewport News will relocate HRSD’s force mains as part of the Newport NewsTransportation Center budget at no cost to HRSD.

Attachment #2: Agreement




4. VIRGINIA RESOURCES AUTHORITY (VRA) MASTER FINANCINGAGREEMENTDESIGNATION OF DISTRICT REPRESENTATIVES RESOLUTION

Action: Adopt the resolution designating District Representatives as definedin the VRA Master Financing Agreement.

Moved: Vishnu Lakdawala Ayes: 6 Seconded: Willie Levenston Nays: 0

Brief: The VRA Master Financing Agreement defines a District Representative as“any member, official or employee of the Borrower [HRSD] authorized by resolution,ordinance or other official act of the Commission to perform the act or sign thedocument in question.” This resolution specifically identifies who can act as aDistrict Representative.

The resolution designates the General Manager and Chief Financial Officer asDistrict Representatives. Specifically for sections 8.5 and 8.6, which are related tothe Ownership of Land and Sale or Encumbrance of HRSD’s infrastructure, theDirector of Engineering is designated as a District Representative.

The attached resolution was prepared by our bond counsel.

Attachment #3: Resolution




5. UNFINISHED BUSINESS

Ms. Cascio informed the Commission and staff the Annual Financial Disclosureforms had been published by the Virginia Coalition of Ethics and Advisory Council.These new forms will be forwarded to the Commission and staff by the end of theweek for completion no later than January 17, 2017.

Ms. Cascio stated the printed version of the Comprehensive Annual FinancialReport (CAFR) is now available.

6. NEW BUSINESS

Mr. Henifin addressed questions from the article relating to his absence at a recentmeeting with Surry County. He was participating in a meeting to discuss the HRSDbilling model with Isle of Wight County representatives and unable to attend themeeting in Surry. The meeting with Surry representatives has been rescheduled forJanuary 12.

7. COMMISSIONER COMMENTS

Chair Elofson thanked Commissioner Lynch for chairing the November meeting inhis absence.

8. PUBLIC COMMENTS NOT RELATED TO AGENDA – None



9. INFORMATIONAL ITEMS

Action: No action required.

Brief: The items listed below were presented for information.

a. Management Reports

b. Strategic Planning Metrics Summary

c. Effluent Summary

d. Air Summary

e. Emergency Declaration – Chesapeake Elizabeth Treatment Plant SulzerEffluent Pump Repair

Discussion Summary: Mr. de Mik explained the failure of the effluent pump at the Chesapeake-Elizabeth Treatment Plant was due to age.

Attachment #4: Informational Items


10. ANNOUNCEMENTS

Two short videos on the SWIFT project were viewed during the meeting. These along with other informational videos are posted on HRSD.com.

HRSD will be honored as a Sustained Distinguished Performance River Star business at the annual Elizabeth River Star Recognition Luncheon on January 26, 2017.

Next Commission Meeting Date: January 24, 2017 at the HRSD North Shore Operations Center, 2389 G. Avenue, Newport News, VA 23602

Meeting Adjourned: 9:23 a.m.

SUBMITTED: APPROVED:

Jennifer L. Cascio Secretary

Frederick N. Elofson, CPA Chair

https://www.youtube.com/user/hrsdva?feature=results_main

HRSD COMMISSION MEETING MINUTES December 20, 2016

ATTACHMENT #1

AGENDA ITEM 1. – Consent Agenda

Resource: Bruce Husselbee

CONSENT AGENDA ITEM 2.b.1. – December 20, 2016

Subject: Warwick Boulevard to James River Influent Force Main Section 1 Contract Award (>$200,000) and Task Order (>$200,000)

Recommended Actions:

a. Award a contract to Basic Construction Company in the amount of $2,271,248.

b. Approve a task order with HDR Engineering, Inc. in the amount of $236,751.

CIP Project: JR011100

Budget $5,807,000 Previous Expenditures and Encumbrances $180,570 Available Balance $5,626,430

Type of Procurement: Competitive Bid

Bidder Bid Amount Basic Construction Company $2,271,248 T.A. Sheets General Contractors, Inc. $2,736,656 MEB General Contractors, Inc. $2,969,564 Gaston Brothers Utilities $2,969,596 S J Louis Construction $2,974,000 Tidewater Utility Construction, Inc. $3,191,941 Vico Construction Corporation $3,611,814

Engineer Estimate: $3,307,814

Contract Status Amount Original Contract with HDR $47,440 Total Value of Previous Task Orders $115,521 Requested Task Order $236,751 Total Value of All Task Orders $352,272 Revised Contract Value $399,712 Engineering Services as % of Construction 17.6%

Project Description: This project will provide for the replacement of approximately 4,500 linear feet of 36-inch cast iron force main (FM) from the old Menchville Landfill to a point just upstream of the influent flow meter at the James River Treatment Plant. The project is located in the City of Newport News and is in the James River Treatment

Plant service area. This is the last section for the Warwick Boulevard to James River Treatment Plant series of pipeline replacement projects. Task Order Description: This task order will provide contract administration (CA) and contract inspection (CI) services. The project route is along Riverview Parkway. This project will require coordination with the City of Newport News and also coordination with the Warwick Boulevard to James River Influent Force Main Section 2 project. Analysis of Cost: The total engineering services cost to construction cost ratio is 9.54 percent. The raw labor rate percentage to construction cost is 1.54 percent which compares well to other projects of similar size and scope. CI services will be reimbursed on an hourly basis which is comparable to the same rate on other recent projects. Meetings and phone conferences were held with HDR to discuss the project and scope of services. A fee of $236,751 was negotiated for CA and CI services. Schedule: PER September 2009 Design December 2009 Bid November 2016 Construction February 2017 Project Completion October 2018

Resource: Steve de Mik CONSENT AGENDA ITEM 2.c.1. – December 20, 2016 Subject: Sodium Hydroxide Blanket Purchase Agreement Rejection of all Bids (>$200,000) Recommended Action: Approve rejection of all bids submitted for Sodium Hydroxide, 50 percent solution.

Type of Procurement: Competitive Bid

Bidder Bid Amount Suffolk Sales $1,748,206 Univar $1,778,072 HRSD Estimate: $1,430,792

Contract Description: This contract is an agreement to supply and deliver Sodium Hydroxide, 50 percent solution, for HRSD treatment plants for one year with four annual renewal options. During evaluation of bids, staff determined all bids received from bidders exceed available funds budgeted. Rejection of all bids and advertisement of a new solicitation is recommended. Revisions to HRSD’s solicitation requirements will include the option of quarterly price review and quarterly renewal options to minimize risks associated with the volatile chlor-alkali market.

Resource: Jim Pletl

CONSENT AGENDA ITEM 2.d.1. – December 20, 2016

Subject: Technical Services Division Internet-based Publicly Owned Treatment Works Administration and Compliance System (iPACS), Biosolids System Enhancements Contract Change Order (>25% or $50,000)

Recommended Action: Approve a change order with enfoTech and Consulting, Inc. in the amount of $6,300.

CIP Project: AD010400

Budget $4,449,000 Previous Expenditures and Encumbrances ($3,928,876) Available Balance $520,124

Contract Status: Amount Cumulative % of Contract

Original Contract with Interactive Intelligence $716,257 Total Value of Previous Change Orders $366,619 51% Requested Change Order No. 6 $6,300 Total Value of All Change Orders $372,919 52% Revised Contract Value $1,089,176

Time (Additional Calendar Days) 0

Project Description: This project is to procure and implement an Environmental Data Management System (EDMS) including: Replacement of the Laboratory Information Management System (LIMS) and plant operational and regulatory reports, evaluation and integration of Treatment Plant Distributed Control System (DCS) data into the Treatment Data Management System (DMS), replacement of the Pretreatment Information Management System (PIMS), replacement of the current biosolids data management system, full integration of all data management system components, interface with other HRSD applications where applicable and data migration from legacy systems.

Replacement and implementation of all EDMS components will entail: Needs assessments, workflow evaluations, procurement and consulting, software and hardware replacement, configuration, programming and integration, training and support, gap analyses and a pilot study to evaluate data integrations and processes from LIMS, DMS, EDS, and DCS.

Change Order Description: This change order is for the iPACS, Biosolids System enhancements. HRSD is required to report on tracts that are no longer eligible for

biosolids spreading. The enhancements include tracking of farmer contact information, identification of associated tracts that are temporarily ineligible for spreading, identification of inactive tracts, flagging of tracts that are planned for spreading more than three times in a 10-year period, creation of reports to summarize tract spreading and eligibility by year and updates of views for HRSD’s Geographical Information System to transfer tract eligibility data. Schedule: PER February 2009 Design February 2009 Bid February 2009 Construction July 2014 Project Completion July 2017

Resource: Don Corrado

CONSENT AGENDA ITEM 2.e.1. – December 20, 2016 Subject: BMC Track-It! Licenses, Maintenance and Support Services Sole Source (>$10,000) Recommended Action: Approve BMC Software, Inc. as the provider of Track-It! licenses, maintenance and support services for HRSD. Sole Source Justification:

Compatibility with existing equipment or systems is required

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: Services include technical support via web, email and phone; software patches; and upgrades. Track-It! features include automated email to ticket creation, routing, prioritization, notifications, reports and other functionality. Currently, the Planning and Analysis Division, Finance ERP HelpDesk, IT HelpDesk and Industrial Automation use this software to track and prioritize system issues, workloads and other data. Continued support is required to maintain software and business operations.


ATTACHMENT #2

AGENDA ITEM 3. – Newport News Transportation Center Agreement

Agreement between HRSD and the City of Newport News for the Design and Construction of HRSD Force Main Facilities at the Newport News Transportation Center – 500 Bland Boulevard

JBWK 11711.759 Page 2 of 13

TERMS

NOW THEREFORE, in consideration of the above recitals and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

I. DESIGN OF IMPROVEMENTS

A. Plans and Specifications

1. CITY will employ Whitman, Requardt & Associates, LLP

(ENGINEER), to prepare plans and specifications for the HRSD Facilities. Location map of the HRSD and City Facilities is shown on Exhibit 2.

2. ENGINEER, along with HRSD and the CITY, will meet to

coordinate, review, and approve a set of final construction documents (the “Final Plans and Specifications”) for the HRSD Facilities.

B. Payment of the Design Costs

1. CITY will compensate the ENGINEER for all engineering design

costs and any amendments related to the HRSD Facilities. Pursuant to the CITY’s agreement with ENGINEER, the current estimated design and bid phase services cost for the HRSD Facilities is $82,267.00.

C. Compliance

All design work shall comply with HRSD Standards and Preferences for use in Engineered Construction Projects, latest edition, and the Hampton Roads Planning District Commission Regional Construction Standards, latest edition. Any changes to the Final Plans and Specifications shall be approved by HRSD and the CITY.

D. CONSTRUCTION OF HRSD FACILITIES Cost of Construction:

1. The total cost of the HRSD Facilities , as more particularly

defined by the Final Plans and Specifications, prepared by ENGINEER for the CITY and HRSD (the “HRSD Facilities Costs”) shall include:

a. Cost of construction of the HRSD Facilities;


JBWK 11711.759 Page 3 of 13

b. Cost of advertising for bids;

c. Cost of approvals and permits required for the construction

of the HRSD Facilities;

d. Costs for construction administration and construction inspection;

e. Cost of services for the ENGINEER;

f. Costs of all temporary or permanent easement and fee

simple land acquisitions; and

g. Any related miscellaneous essential expenses.

2. The current estimated cost of the construction of the HRSD Facilities is $1,300,000.00.

E. Approval of Final Plans and Specifications; Contractors; Change Orders,

Construction Administration; Construction Inspection

1. HRSD and the CITY agree that before any construction work is to begin under this Agreement, HRSD and the CITY will jointly review and approve the Final Plans and Specifications. This approval shall be in writing.

2. CITY shall acquire all necessary plan approvals and property

acquisitions related to HRSD Facilities prior to the award of the construction contract.

3. The CITY shall acquire all necessary plan approvals and property

acquisitions related to CITY Facilities prior to the award of the construction contract.

4. HRSD and the CITY shall review and agree upon the qualifications prior to bidding the project and confirm that the construction contract is awarded to a firm that meets the stated requirements.

5. Contractors shall be responsible for all permits and approvals

necessary for the Improvements.

6. The ENGINEER will review and approve shop drawings related to the HRSD Facilities. CITY will review and approve shop drawings related to the CITY Facilities.


JBWK 11711.759 Page 4 of 13

7. HRSD and the CITY will review and approve scope of work and fee for the construction administration and construction inspection related to the HRSD Facilities.

8. HRSD and the CITY will review and approve change orders related

to the HRSD Facilities.

F. Payment of HRSD Facilities Costs

1. The HRSD Facilities Costs shall be apportioned among the parties as follows:

a. CITY will administer and be responsible for bearing one

hundred percent (100%) of the cost of the HRSD Facilities as a Project expense of the Newport News Transportation Center Project.

b. Costs associated with any change to the initial

construction cost (“Change Order”) shall be as follows:

(1) CITY shall be solely responsible for costs due to a Change Order requested by HRSD and approved by the CITY.

2. During the course of construction, CITY shall compensate the

Contractors and other individuals and entities providing materials and/or services related to the HRSD Facilities.

3. In conjunction with the above, and for additional clarity, it is

agreed that the CITY shall pay all of the construction administration and construction inspection costs (the "CA and Cl Costs") to the ENGINEER.

G. Operation and Maintenance of the HRSD Facilities during and

after Construction

1. HRSD shall be responsible for operation and maintenance of the HRSD Facilities during and after construction.

2. HRSD and the CITY agree to cooperate and coordinate for the

operations and maintenance of any interconnections between the HRSD Facilities and CITY Facilities.


JBWK 11711.759 Page 5 of 13

II. SCHEDULE

The construction is anticipated to begin by June 13, 2017 and be complete by February 13, 2018. If the construction dates listed herein are substantially delayed due to actions or conditions within the control of the City, HRSD reserves the right to terminate this Agreement. Otherwise, the force majeure provisions in Section XIII of this Agreement shall apply.

III. OBLIGATIONS OF HRSD AND THE CITY

A. Public Hearing or Meeting

CITY will be responsible for holding a public hearing or meeting if required. The CITY will coordinate and reserve the location, and assist HRSD in such public hearing.

B. Bidding of the Improvements

1. CITY agrees to issue bidding documents for construction of the Improvements. The CITY agrees to provide administrative support during the bidding phase. In particular the CITY shall: a. Attend the preconstruction meeting. b. Provide timely responses to the ENGINEER for any

questions, requests for clarification, or addenda during the bidding phase.

c. Provide miscellaneous support to HRSD as required during

the bidding phase.

2. CITY will receive bids for construction of the Improvements. All bids received will be reviewed and approved by the CITY and HRSD prior to award of the construction contract. The CITY and HRSD shall negotiate in good faith to resolve financial matters with regards to bidding the Improvements. The bidding procedure shall be conducted in accordance with the Virginia Public Procurement Act, HRSD Procurement Policy and federally funded project guidelines.

C. Administration

CITY shall provide contract administration of the Improvements. The CITY shall pay the ENGINEER for the contract administration cost of the HRSD Facilities.


JBWK 11711.759 Page 6 of 13

D. Inspection CITY shall pay the ENGINEER for full-time inspection for the HRSD

Facilities. The inspector(s) shall have the authority to assure the HRSD Facilities are constructed in accordance with the Final Plans and Specifications.

E. Deeds and Easements

CITY shall obtain any and all necessary fee simple deeds and/or deeds of easement as mutually deemed necessary by the parties for completion of this project for the HRSD Facilities.

F. Correction of Construction Defects in the Improvements

CITY shall require the Contractors to provide a performance and payment bond for the full amount of the construction of the Improvements. The construction contract shall also provide for a warranty of the Contractor’s work against construction defects in the Improvements and shall require the Contractor to correct such defects that are reported by HRSD or the CITY within one (1) year of the final acceptance of the Improvements.

G. Construction Record Drawings

ENGINEER shall provide HRSD and the CITY approved construction record drawings in accordance with HRSD Standards and Preferences for use in Engineered Construction Projects and City’s Utility Policy and Design and Construction Standards, latest edition.

IV. GOVERNING LAW

This Agreement shall be deemed to be a Virginia contract and shall be governed as to all matters whether of validity, interpretations, obligations, performance or otherwise exclusively by the laws of the Commonwealth of Virginia, and all questions arising with respect thereto shall be determined in accordance with such laws. Regardless of where actually delivered and accepted, this contract shall be deemed to have been delivered and accepted by the parties in the Commonwealth of Virginia.


JBWK 11711.759 Page 7 of 13

V. TERMINATION

Anything herein or elsewhere to the contrary notwithstanding, this Agreement and the obligations of the parties hereunder may be terminated by the CITY or HRSD in the event that the other party breaches or violates any material provision of this Agreement or fails to perform any material covenant or agreement to be performed by either party under the terms of this Agreement and such breach, violation or failure is not cured within sixty (60) days of the defaulting party’s receipt of written notice of such breach from the non-defaulting party; or by mutual agreement of the CITY and HRSD.

VI. NOTICE

Any notice, communication or request under this Agreement shall be provided in writing by either (a) certified mail, return receipt requested, postage prepaid, or (b) a nationally recognized overnight delivery service (next business day service), or (c) hand-delivery, if the receipt of the same is evidenced by the signature of the addressee or authorized agent, and addressed to the following:

For: HRSD If by U.S. Postal Service: If by Overnight Mail: General Manager General Manager P. O. Box 5911 1434 Air Rail Avenue Virginia Beach, VA 23471-0911 Virginia Beach, VA 23455 Telephone: (757) 460-4242

With Copy to: Conway H. Sheild, III Jones, Blechman, Woltz and Kelly, P.C. 701 Town Center Drive, Suite 800 Newport News, VA 23606

For: City of Newport News James Bourey, City Manager City of Newport News, Virginia 2400 Washington Avenue Newport News, VA 23607 Telephone: (757) 727-6392 Facsimile: (757) 926-3505 With Copy to: City Attorney 2400 Washington Avenue Ninth Floor City Hall Newport News, VA 23607


JBWK 11711.759 Page 8 of 13

VII. ASSIGNMENT

No party may assign its rights in this Agreement without the prior written consent of the other party.

VIII. AMENDMENT

This Agreement may be amended only by a written instrument duly executed by the parties.

IX. SEVERABILITY

If any provision of this Agreement or the application thereof to any circumstance shall be determined to be invalid, illegal or unenforceable to any extent, the remainder of this Agreement and the application thereof shall not be affected and shall continue to be valid, in effect and enforceable to the fullest extent permitted by law.

X. DAMAGES

If by omission that constitutes negligence or willful misconduct or failure to abide by engineering standards or failure to abide by the Final Plans and Specifications described herein, the negligent party shall be responsible for the payments for damages to any other party to this Agreement.

XI. INSURANCE

HRSD and the CITY have the right to review and approve insurance coverage in the various insurance categories that HRSD and the CITY deem necessary to be carried by the Contractor or any other parties to this Agreement. Proof of insurance shall be provided at the request of HRSD or the CITY and the insurance coverage shall be maintained during the term of this Agreement.

XII. TERM OF AGREEMENT

The term of the Agreement will commence on the date the Agreement is entered into and be completed when each party has completely performed its obligations hereunder.

XIII. FORCE MAJEURE

In the event of enforced delay in the performance of such obligations due to unforeseeable causes beyond the control of the CITY or HRSD or the Contractor and without their fault or negligence, including, but not restricted to, acts of God or of the public enemy, acts of the government, fires, floods,


JBWK 11711.759 Page 9 of 13

epidemics, quarantine restrictions, strikes, freight embargos, and unusually severe weather or delays of subcontractors due to such causes; it being the purpose and intent of this provision that in the event of the occurrence of any such enforced delay, the time or times for performance of the obligations of the parties shall be extended for the period of the enforced delay.

XIV. INDEPENDENT CONTRACTOR

If the Contractor(s) hire subcontractors or independent contractors, HRSD and the CITY have the right to approve them by reviewing their requisite experience and knowledge to complete the work assigned.

XV. SUBCONTRACTOR

If any Contractors or subcontractors are selected by any party to this Agreement for completion of the work contemplated herein, HRSD has the right to approve the same.

XVI. WAIVER

No waiver of the breach of any term or provision of this Agreement shall be construed to be, or shall constitute, a waiver of any other breach of this Agreement. No waiver shall be binding unless in writing and signed by the parties waiving the breach.

The failure of any party to seek redress for violation of or to insist upon the strict performance of any covenant or condition of this Agreement shall not prevent a subsequent act, which would have originally constituted a violation, from having the effect of an original violation.

The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive the right to use any or all other remedies. Such rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise.

XIV. INTEGRATION

This Agreement constitutes the entire understanding among the parties. No provision of this Agreement may be waived, modified or amended except by an instrument signed by the party against whom the enforcement of such waiver, modification or amendment is sought. No waiver by either party of any failure or refusal by the other party to comply with its obligations hereunder shall be deemed a waiver of any other or subsequent failure or refusal to comply.

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213+

00

214+

00

215+

00

216+

00

217+

00

218+

00

219+

00

220+

00

221+

00

222+

00

223+

00

224+

00

225+00

226+00

227+00

227+98

SCALE: 1" = 500’

NEWPORT NEWS

TRANSPORTATION CENTER

(HARN)

SYSTEM SOUTH ZONE NAD 1983/1993

VIRGINIA STATE PLANE COORDINATE

Lane

Aspen

Meado

w

Warwick Springs Drive

Colo

ny

Road

Bla

nd

Boule

vard

500-B BLAND BOULEVARD

Lucas

Cree

k

Lucas Creek

Northern Branch

Exhibit 1--Newport News Transportation Center--500 Bland Boulevard

RelocationsHRSD

0

SCALE

400’ 800’

500 Bland Blvd

Proposed NNTC

Page 12 of 13

5∋∋�/#6%∗.+0∋�6∗+5�5∗∋∋6

5∋∋�/#6%∗.+0∋�6∗+5�5∗∋∋6

Page 13 of 13

Phil Lohr

Text Box

Exhibit 2--Location Map: HRSD and City Facilities

Phil Lohr

Line


ATTACHMENT #3

AGENDA ITEM 4. – Virginia Resources Authority (VRA) Master Financing Agreement Designation of District Representatives Resolution

Hampton Roads Sanitation District Resolution of

December 20, 2016

HAMPTON ROADS SANITATION DISTRICT COMMISSION

********************

RESOLUTION DESIGNATING DISTRICT REPRESENTATIVES UNDER THE MASTER FINANCING AGREEMENT WITH THE VIRGINIA RESOURCES AUTHORITY.

Adopted December 20, 2016


ATTACHMENT #4

AGENDA ITEM 9. – 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

e. Emergency Designation

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

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

www.hrsd.com

December 12, 2016 Re: General Manager’s Report Dear Commissioners: In keeping with the November theme, thankfully it was an uneventful month. All plants met permit and there were only two issues on the system. The attached monthly reports review activities throughout the month, with a few items highlighted below: 1. Treatment, Compliance and System Operations: All Virginia Pollutant

Discharge Elimination System (VPDES) requirements were met in November.

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

a. A meeting to review regulatory framework options for our Sustainable

Water Initiative for Tomorrow (SWIFT) b. An asset management roadmap workshop c. Two new employee orientation sessions d. A length of service breakfast celebration e. Ten tours of the SWIFT pilot for employees

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

activities:

a. A meeting with Navy officials about land adjacent to the Army Base Treatment Plant

b. The monthly meeting of the Hampton Roads Planning District Commission Director of Utilities Committee

c. A meeting with Virginia Department of Transportation (VDOT) officials about the potential of attaching HRSD facilities to VDOT bridges

d. A meeting with the Director of the Virginia Department of Environmental Quality and the Virginia Health Commissioner to discuss regulatory options related to SWIFT

HRSD Commission December 12, 2016

Page 2

e. A teleconference to develop the consultant scope of work to study system optimization options

f. Presented SWIFT to a William and Mary undergraduate student developing a project related to SWIFT

g. Briefed the Virginia Farm Bureau and the Virginia Agribusiness Council on SWIFT

h. Attended the poster presentation session for the William and Mary class on sustainability and the Chesapeake Bay

i. The National Association of Clean Water Agencies quarterly board meeting and annual planning retreat

j. The quarterly Virginia Association of Municipal Wastewater Agencies board meeting

k. Briefed Water Environment Federation (WEF) staff and others at WEF headquarters in Alexandria about SWIFT

l. Participated in an overview briefing of HRSD for a visiting delegation from Beijing

Senator Norment has requested the drafting of a bill that would amend our enabling act to add Surry County to HRSD’s territory. We do not anticipate any issues related to this minor change. However, actions of the General Assembly are challenging to predict so we will monitor this closely during the 2017 session, which is scheduled to convene January 11. We also will work during the session to obtain reimbursement for installation of the extensometer at Nansemond Treatment Plant. The extensometer will provide vital information on land subsidence for the region and the Commonwealth and will be beneficial with or without SWIFT. For that reason, staff identified the reimbursement as a logical and defendable way for the Commonwealth to take a more active role in support of SWIFT. Negotiations will continue with the US Environmental Protection Agency and Department of Justice in December as we try to resolve differences around our proposed consent decree amendment, which would open the door for an integrated planning solution for our wet weather obligations. I continue to be optimistic but am not overly confident we will reach agreement outside the courthouse. The agencies continue to miss the connection between SWIFT and the region’s Clean Water Act obligations related to stormwater. While HRSD may not be obligated to address stormwater, our ratepayers are and as such deserve the benefit of an integrated approach.

HRSD Commission December 12, 2016

Page 3

The December Commission meeting agenda is shaping up to be a very light one. I anticipate a short meeting, perhaps giving you the gift of found time in this busy holiday season. 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, December 20, 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 November 2016 DATE: December 9, 2016 A. General

1. Capital Improvement Program (CIP) spending for the fourth month of Fiscal Year-2017 was $7.70 million, while the planned expenditure for the month was estimated at $11.70 million. CIP spending is tracking at only 75 percent of planned spending for the year. This trend will be reviewed and discussed at the January Commission Meeting. A Water Quality Improvement Fund (WQIF) grant reimbursement of $1.51 million was received for the Virginia Initiative Plant (VIP) Nutrient Reduction Improvements project.

2. Staff from the Engineering Department held a conference call with Ms.

Maria Everett, Executive Director and Senior Attorney for the Virginia Freedom of Information Advisory Council. Discussions were held about the responsibility of consultants, contractors and other individuals working for HRSD to provide documents through the Virginia Freedom of Information Act (FOIA). It was suggested that although we are not specifically required to provide documents that are not in our files, we should have a policy that addresses this situation. This policy will address the following:

• How HRSD will request documents from others • Timeframes needed to gather these documents • Limit the availability of proprietary information • Costs and payment for gathering these documents This information will be drafted into an existing policy or a new policy for consideration by the Commission.

B. Asset Management Division

1. An Asset Management Roadmapping Workshop was held with Senior Staff in November to consider how we will implement HRSD’s vision for asset management in an effective and sustainable manner. A list of ten major initiatives, including costs and schedules, were reviewed and prioritized. Developing a policy, scope and objectives of the program were identified as items that should happen first. A CIP project will be proposed that will provide funding for this initiative.

2. Staff is working with the Interceptor Systems Division to update the process to assess the condition and operation of valves within the sewer system. On a five-year rotation each valve in the interceptor sewer system is inspected for a number of operational and maintenance parameters. If a valve is found to be lacking in one of the parameters, a secondary process is initiated. The Secondary Valve Assessment Process has been updated to improve this procedure and record the efforts needed to bring the valve into compliance. This process is linked to the CMMS and the GIS to share needed data and a process was created to address needed repairs or replacements of these valves.

C. North Shore and South Shore Design & Construction Divisions

1. The design for the Atlantic Treatment Plant Thermal Hydrolysis Process project continues. The Construction Manager (CM) firm of Crowder Construction was selected last year and is assisting with the design effort. The final design is now complete and the Project Team is working to update the project cost estimate. The final scope of the project and the guaranteed maximum price is under final negotiation and will be complete by March 2017. The effort to procure the pre-dewatering centrifuges is underway and will be coordinated with work at two other HRSD treatment plants. This delivery method allows for close collaboration between the designer and the CM firm. This collaboration should result in the best possible project and will allow HRSD to have a firm price for the work earlier than other project delivery methods. This is HRSD’s first attempt with this delivery method and we look forward to learning the pros and cons for the possible application on future projects.

2. Progress continues on the construction of the South Trunk G Force Main

Replacement project. This is a very high profile project located in downtown Norfolk that impacts a number of businesses and major roadways. The construction is nearing completion with only 140 feet of HRSD force main and 100 feet of city force main remaining. Three critical tie-ins into the existing force main system will not be completed until after the holidays. This project has involved close coordination with the City of Norfolk and many of the businesses in downtown Norfolk. The project should be complete early in 2017, which is well ahead of the original scheduled completion date.

D. Planning & Analysis Division

1. The Sustainable Water Initiative for Tomorrow (SWIFT) continues to be a significant focus for staff. Presentations were recently made to the National Water Research Advisory Panel, National Association of Clean Water

Agencies (NACWA) Utility and Resource Management Committee and the American Water Resources Association. Well drilling continues at the Nansemond Treatment Plant. The United States Geological Survey continues their work to drill the well for the future extensometer and monitoring equipment at the Nansemond Treatment Plant. Efforts are complete to select a Design-Build Team for the SWIFT Demonstration Project.

2. The FY-2018 CIP update process is underway. A CIP training session was

conducted and staff is working to consider new projects and update existing projects. The first CIP Review Meeting is scheduled for March 7.

E. Strategic Planning Metrics Summary

1. Educational and Outreach Events: 4

a. Staff made a presentation on the SWIFT Program to the National Water Institute - Research Advisory Panel on November 7.

b. Staff made a presentation on the SWIFT program to the University of Virginia (UVA) American Society of Civil Engineers (ASCE) Student Chapter on November 8.

c. Staff made a presentation on the SWIFT Program to the NACWA

Utility and Resource Management Committee on November 9.

d. Staff made a presentation on the SWIFT Program to the American Water Resources Association on November 15.

2. Number of Community Partners: 4

a. National Water Institute - Research Advisory Panel

b. UVA ASCE Student Chapter

c. NACWA Utility and Resource Management Committee

d. American Water Resources Association

3. Number of Research Partners: 0

Item # Strategic Planning Measure Unit November 2016

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

Hours / #FTE 1.51

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

Hours / #FTE

18.22

M-5.2 Educational and Outreach Events Number 4 M-5.3 Number of Community Partners Number 4 M-5.4 Number of Research Partners Number 0

Bruce W. Husselbee, P.E. Bruce W. Husselbee, P.E.

TO: General Manager FROM: Director of Finance SUBJECT: Monthly Report for November 2016 DATE: December 7, 2016 A. General

1. Trump’s victory surprised the markets and impacted HRSD both positively and

negatively. On a positive note, the markets rallied and most of the main indices ended the month near all-time highs. This positively impacts our Retiree Health Trust and Pension investments. On a negative note, most of Trump’s policies are seen as inflationary, which led to a 60 basis point (0.6 percent) increase in the long end (30-year) of the yield curve. Looking forward, JP Morgan expects 30-year rates to be slightly higher, around 3.5 percent to 3.8 percent, in the next year. This is still historically low. In our 20-year Financial Forecast we assume a 5.25 percent 30-year rate, which is the 20-year average for AA rated entities. .

2. Operating Revenues are tracking slightly higher than expected as water

consumption continues to be higher than projected. The first of two Build America Bond Subsidy payments was received in October. Operating Expenses for Personal Services and Fringe Benefits are on target, and the remaining operating expenses are below budget

3. As discussed at the November Commission meeting, we are maintaining an

unrestricted Debt Service Reserve Fund (DSRF) for an amount that would be required if it was triggered again. In the monthly report, the Debt Reserve column was included to show this amount to provide clarity in the accounting. This was previously included within the Capital Fund column for the monthly report.

4. Amy Murphy was selected as the new Chief of Procurement. She has been

working in Procurement for over 22 years. Most recently, she was instrumental in implementing the Procurement module for the Enterprise Resource Planning (ERP) project. She is a Certified Professional Public Buyer (CPPB) and a Virginia Contracting Officer (VCO). In 2014, she was named the Virginia Association of Governmental Purchasing Buyer of the Year. We are delighted that we can grow exceptional employees and promote them within the organization.

B. Interim Financial Report 1. Operating Budget for the Period Ended November 30, 2016

Amended Budget Current YTD

Current YTD as % of

Budget (42% Budget to

Date)

Prior YTD as % of Prior

Year BudgetOperating Revenues

Wastewater $ 242,810,000 $ 106,003,791 44% 44%Surcharge 1,500,000 793,466 53% 47%Indirect Discharge 2,500,000 1,131,592 45% 45%Norfolk Sludge 90,000 26,622 30% 48%Fees 2,843,000 1,239,871 44% 38%Municipal Assistance 1,250,000 375,832 30% 35%Miscellaneous 750,000 463,498 62% 65%

Total Operating Revenue 251,743,000 110,034,672 44% 44%Non Operating Revenues

Facility Charge 5,850,000 2,355,230 40% 38%Interest Income 1,400,000 151,172 11% 39%Build America Bond Subsidy 2,400,000 1,193,083 50% 51%Other 840,000 244,226 29% 8%

Total Non Operating Revenue 10,490,000 3,943,711 38% 38%

Total Revenues 262,233,000 113,978,383 43% 44%Transfers from Reserves 7,901,331 3,292,221 42% 42%Total Revenues and Transfers $ 270,134,331 $ 117,270,604 43% 44%

Operating ExpensesPersonal Services $ 52,521,153 $ 22,049,300 42% 38%Fringe Benefits 24,287,503 10,051,161 41% 39%Materials & Supplies 7,374,956 2,656,221 36% 48%Transportation 1,448,541 568,961 39% 36%Utilities 12,286,132 4,091,457 33% 31%Chemical Purchases 9,360,735 3,150,899 34% 32%Contractual Services 31,903,100 10,352,400 32% 36%Major Repairs 9,846,266 2,190,500 22% 20%Capital Assets 3,519,171 603,319 17% 9%Miscellaneous Expense 2,378,476 878,029 37% 33%

Total Operating Expenses 154,926,033 56,592,247 37% 35%

Debt Service and TransfersDebt Service 61,947,000 29,992,819 48% 55%Cost of Issuance Bonds 900,000 2,809 0% 8%Transfer to CIP 52,101,298 21,708,874 42% 42%Transfer to Risk management 260,000 108,338 42% 42%Total Debt Service and Transfers 115,208,298 51,812,840 45% 49%

Total Expenses and Transfers $ 270,134,331 $ 108,405,087 40% 41%

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 November 30, 2016

GeneralRisk

Management Debt Reserve Capital

Beginning of Period - July 1, 2016 155,644,784$ 2,740,508$ -$ 124,405,496$

Add: Current Year Sources of Funds Cash Receipts 133,815,090 Capital Grants 4,520,756 Line of Credit - Bond Proceeds (includes interest) 161,227 Transfers In - 108,338 31,754,250 21,708,874 Sources of Funds 133,815,090 108,338 31,754,250 26,390,857

Total Funds Available 289,459,874$ 2,848,846$ 31,754,250$ 150,796,353$

Deduct: Current Year Uses of Funds Cash Disbursements 109,177,517 53,575,448 Transfers Out 21,817,212 31,754,250 Uses of Funds 130,994,730 - - 85,329,698

End of Period - November 30, 2016 158,465,144$ 2,848,846$ 31,754,250$ 65,466,655$

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

5. Debt Management Overview

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

Expenditures prior to

June 30, 2016Administration 40,961,073$ 35,489,810$ 285,372$ 35,775,182$ 3,217,434$ 1,968,457$ Army Base 156,834,000 117,268,663 858,452 118,127,115 4,402,897 34,303,988 Atlantic 91,488,147 37,540,037 753,234 38,293,271 8,697,367 44,497,509 Boat Harbor 83,802,681 33,305,878 2,696,956 36,002,834 13,094,815 34,705,032 Ches-Eliz 9,307,274 4,781,814 70,022 4,851,836 1,767,476 2,687,962 James River 74,913,961 36,167,539 2,902,445 39,069,984 12,409,115 23,434,862 Middle Peninsula 37,394,839 5,170,712 224,306 5,395,018 4,028,773 27,971,048 Nansemond 74,720,570 24,996,902 4,208,051 29,204,953 7,280,005 38,235,612 VIP 252,375,811 195,724,686 14,006,080 209,730,766 32,951,823 9,693,222 Williamsburg 11,396,383 7,646,446 111,551 7,757,997 1,966,488 1,671,898 York River 45,160,886 30,560,270 3,205,610 33,765,880 6,115,843 5,279,163 General 231,727,960 141,618,472 5,150,874 146,769,346 29,664,010 55,294,604

1,110,083,585$ 670,271,229$ 34,472,953$ 704,744,182$ 125,596,046$ 279,743,357$

Available Balance

Classification/ Treatment Service Area Budget

Year to Date FY 2017

ExpendituresTotal

ExpendituresOutstanding

Encumbrances

October 2016

Principal Payments

Net Refunding

November 2016

Interest Payments

Fixed Rate Senior 442,168$ 4,950$ -$ 437,218$ 3,766$ Subordinate 303,770 - - 303,770 - Variable Rate Subordinate 50,000 - - 50,000 31 Line of Credit - - - - - Total 795,938$ 4,950$ -$ 790,988$ 3,797$

SIFMA Index HRSDSpread to

SIFMA Maximum 0.87% 0.88% 0.01% Average 0.14% 0.13% -0.01% Minimum 0.01% 0.01% 0.00% As of 11/29/16 0.55% 0.55% 0.00%

* Since October 20, 2011 HRSD has averaged 13 basis points on Variable Rate Debt

Debt Outstanding ($000's)

Series 2016 Variable Rate Interest Summary - Variable Rate Debt Benchmark (SIFMA) as of 11/29/2016

Current YTD Policy MinimumCapital % Cash Funded 40% 15%General Reserve as % of Operations 102% 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)

MonthCumulative 3 Year Average

Cumulative 2016 Actual

2017 Cumulative

Budget Estimate

2017 Cumulative Actual

From Budget

From 2016

From 3 Year

AverageJuly 4,902 4,819 4,784 4,776 -0.2% -0.9% -2.6%Aug 9,774 9,783 9,382 9,275 -1.1% -5.2% -5.1%Sept 14,337 14,290 13,595 14,227 4.6% -0.4% -0.8%Oct 19,210 18,976 18,284 19,017 4.0% 0.2% -1.0%Nov 23,362 23,486 22,761 23,282 2.3% -0.9% -0.3%Dec 27,733 27,627 26,918 - N/A N/A N/AJan 31,997 31,844 31,009 - N/A N/A N/AFeb 36,132 35,960 34,750 - N/A N/A N/AMarch 40,991 40,706 40,257 - N/A N/A N/AApr 45,205 44,834 44,861 - N/A N/A N/AMay 49,487 49,022 48,879 - N/A N/A N/AJune 54,069 53,503 52,788 - N/A N/A N/A

% Difference

HRSD Juris TotalRoll ForwardOctober A/R Balance $ 25,621,811 $ 27,971,207 $ 53,593,018

Billings 20,645,337 22,141,608 42,786,945 Payments (25,790,788) (22,545,126) (48,335,914)Delinquency Activity Fees 115,675 - 115,675 Late Payment Charges 88,137 24,589 112,726 Adjustments 2,390,304 (2,513,995) (123,691)Balances Written Off (168,789) (200,046) (368,835)

November A/R Balance $ 22,901,687 $ 24,878,237 $ 47,779,924

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

D. Procurement

1. Procurement Statistics Current Period FYTD

Bid Cost Savings 87,065$ $4,129,824 Negotiated Cost Savings 1,750$ $ 16,670 Salvage Revenues 1,133$ $ 12,704 Corporate VISA Card - Estimated Rebate 14,620$ $ 90,058

Average Cycle Time (Receipt of Requisition to Award) Solicitation

Types Award

Amounts Oct-16 Nov-16

No. Days Count No. Days Count

RFQs < $10,000 37 12 28 23 $10,000 - $50,000 50 9 45 15

IFBs $50,000 -$100,000 16 2 72 6

IFBs/RFPs >$100,000 30 3 70 6

Customer Interaction Statistics November October SeptemberCalls Answered within 3 minutes 69% 66% 74%Average Wait Time 2:51 2:51 2:10Calls Abandoned 1,903 1,977 1,645

2. Some of the more formal technical competitive bid solicitations for the month included: a. Marketing and Sale of Renewable Energy Credits for the Finance

Department b. Conex Hurricane Shelter at the Chesapeake Elizabeth Treatment Plant c. Sodium Hydroxide (50% Solution) Contract for the Operations Department

E. Strategic Planning Metrics Summary

1. Educational and Outreach Events: 3 a. Virginia Beach Minority Business Council Conference and Expo b. Christopher Newport University (CNU) SWaM Fair c. Virginia Department of General Services (DGS) Forum and Vendor

Expo

2. Community Partners: 0

a. City of Virginia Beach b. CNU c. DGS

Requisition Volume Comparison

Requisition Amounts

7/1/2015 - 6/30/2016

Requisitions

7/1/2016 - 11/30/2016

Requisitions

Percent Comparison of Past Year

< $10,000 260 101 39% $10,000 – $50,000 274 95 35% $50,000 – $100,000 47 20 43% >$100,000 78 41 53%

Total 659 257 39%


M-1.4a Training During Work Hours Per Full Time Employee (100) – Current Month

Hours / #FTE 6.41

M-1.4b Total Training During Work Hours Per Full Time Employee (100) – Cumulative Fiscal Year-to-Date

Hours / #FTE 20.83

M-5.2 Educational and Outreach Events Number 3 M-5.3 Number of Community Partners Number 3 Wastewater Revenue Percentage of

budgeted 105%

General Reserves Percentage of Operating Budget less Depreciation

102%

Accounts Receivable (HRSD) Dollars $22,901,687 Aging Accounts Receivable Percentage of

receivables greater than 90 days

18%

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 November 2016 DATE: December 9, 2016 A. General

1. Deployment of Microsoft Skype for Business is progressing nicely. The Engineering Department’s Design and Construction Division will receive the application in early 2017.

2. Members of the Customer Care Division are wrapping up their pre-

deployment testing of the upgraded Customer Care and Billing application. Go-live for the upgrade is scheduled for January 2017.

3. Upgrade and expansion of HRSD’s primary storage and backup hardware

is underway. Integration and data migration of the storage arrays will take place in January and February 2017.

4. Staff is participating in testing the hardware and software for the Supervisory Control and Data Acquisition (SCADA) project. A series of network integration tests will be performed next month to ensure interoperability and scalability requirements are met.

B. Strategic Planning Metrics Summary



Item # Strategic Planning Measure Unit November

2016

M-1.4a Training During Work Hours Per Full Time Employee (48) – Current Month

Total Training Hours / # FTE

.63

M-1.4b Total Training During Work Hours Per Full Time Employee (48) – Cumulative Fiscal Year-to-Date


6.68

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 November 2016 DATE: December 6, 2016 A. Summary

A dry November allowed staff to concentrate their efforts on maintenance and restoration of normal operations. We experienced 5 air permit deviations and 12 uses of the bypass dampers/stack.

B. Interceptor Systems

1. North Shore (NS) Interceptor Systems

a. A 10-inch cast iron force main failed, causing one Sanitary Sewer

Overflow (SSO) this month in Hampton. An estimated 79,750 gallons was reported lost.

b. NS personnel spent a significant number of hours on the following

activities: 1) Assisted the Small Communities Division with two line repairs

in the West Point service area; 2) Repaired two infrastructure issues in the Lawnes Point

collection system; 3) Performed three pump and haul operations of the Lawnes Point

Treatment Plant; and 4) Completed an emergency repair of the Hampton force main

that failed.

2. South Shore (SS) Interceptor Systems

a. While repairing a damaged gearbox on a force main valve along Kempsville Road in Chesapeake, a surge in wastewater pressure caused a 5,000-gallon discharge of wastewater into the city storm drain.

b. Staff worked with contractors on the final start-up processes of the Norchester Pump Station in Norfolk. A considerable amount of time was spent adjusting system settings and improving the site aesthetics.

C. Major Treatment Plant Operations 1. Army Base Treatment Plant (ABTP) – Staff reported six regulatory

reportable events (RRP) involving the bypass-stack. Four were the result of power anomalies. One occurred when a residual analysis was performed outside the 15-minute window. Plant staff completed repairs and installation of the methanol tank instrumentation. Contractors and staff completed testing of over 360 electrical cables, 67 variable frequency drives and 13 motor control centers completing electrical contractual inspection obligations under Phase III of the ABTP capital improvement project.

2. Atlantic Treatment Plant (ATP) – Staff cleaned Digester #4, which contained large amounts of struvite crystals. Staff met with consultants to kick off the construction of the new air headers in the primary clarifier influent channels. The purpose of the project is to reduce the large amount of scum that builds up in the influent channels and primary clarifiers.

3. Boat Harbor Treatment Plant (BHTP) – Staff struggled this month to maintain sufficient levels of solids to feed the furnace. As a result, scrubber pressures dropped on November 13, 20 and 21, causing three air permit deviations. Staff spent a significant amount of time evaluating the treatment process and its effect on the microorganisms, which are critical for stabilizing the solids inventory. Staff determined that increasing furnace temperatures and air flow to the scrubber achieved compliant differential pressure levels. On November 25, the plant lost power causing the emergency bypass to open for two minutes.

4. Chesapeake-Elizabeth Treatment Plant (CETP) – There were three air

permit RRP deviations. All three deviations were a result of a malfunctioning ID Fan. Staff replaced old diffusers with new fine bubble membrane diffusers in Aeration Tanks # 2 and #9. Staff rebuilt the centrifuge #2.

5. James River Treatment Plant (JRTP) – Staff replaced the main bearing and installed the repaired ring gear on secondary clarifier #2. Staff also modified the nitrified recycle (NRCY) lines on the Integrated Fixed Film Activated Solids (IFAS) tank #8. The NRCY lines were modified to create an anaerobic zone in the first cell of the IFAS tank for biological phosphorus removal testing. While the IFAS tank #8 was out of service, staff cleaned and replaced several skimmers and nozzles. A contractor replaced about 60 percent of corroded odor control ductwork servicing the primary treatment section of the plant. A contractor finished excavating and laying pipe between manhole #8 and Manhole #41 and the by-pass pipe around preaeration tanks #2 and #3.

6. Nansemond Treatment Plant (NTP) – Despite resumption of work, the digester #1 rehabilitation project for coating the digester cover will not be complete until late January. The subcontractor’s progress has been slower than expected. The delay in the project will delay completion of digester 2 rehabilitation by a few months.

7. Virginia Initiative Plant (VIP) – Staff was informed it passed the stack testing of furnace #1 that was performed on October 25. The test was conducted under high solids loading conditions as a result of the excessive wet weather received in October. The plant experienced two air permit deviations caused by a loss of power during generator testing. In both instances, the bypass stack opened.

8. Williamsburg Treatment Plant (WBTP) – WBTP experienced two air permit deviations from the use of the incinerator bypass stack. The first deviation was the result of a power anomaly and the second deviation was from loss of non-potable water (NPW) flow to the off gas scrubber system due to operator error when switching the NPW pump sequence. Staff finished modifying another aeration tank to include an anaerobic selector zone for biological phosphorus removal. This tank will be placed in service in early December.

9. York River Treatment Plant (YRTP) – Staff provided plant tours for the Sustainable Water Initiative for Tomorrow (SWIFT) pilot tour attendees on three separate days in November.

Staff provided a plant tour for a group of public utilities employees from Beijing, China.

D. Small Communities Division (SCD)

1. SCD Treatment

a. West Point Treatment Plant (WPTP) The new hypochlorite and bisulfite chemical tanks were delivered and installed.

b. Urbanna Treatment Plant (UBTP) The in-house coatings of the UBTP process trains began, with train #1 scheduled to be completed in early December. This work was an extensive collaboration between SCD and staff from the WBTP.

c. King William Treatment Plant (KWTP) The Granular Activated Carbon (GAC) vessels media for the zinc removal system was replaced with new media. The new membranes continue to perform very well at the plant.

2. SCD Collections

a. West Point System Staff repaired a large source of inflow and infiltration (I/I) at the new pump station #11.

b. Urbanna System The Rappahannock Pump Station Control Wave PLC installation was completed with the installation of the pressure transducer and stilling well for liquid level control. The rehabilitation of the pump station coupled with the new control system is a major upgrade to the operations of that pump station.

c. Mathews System Phase IV of the vacuum valve replacement project received final inspection and was closed out.

E. Support Systems

1. Automotive

a. Generator #2 at ABTP remains out of service. Removal of the generator is scheduled for early December with an estimated repair

time of 45 days. ATP’s Combined Heat and Power (CHP) Generator #1 remains offline for its 12,000-hour preventive maintenance service. Testing of the unit is scheduled for early December. Generator #1 continues to be out of service at BHTP and should be returned to service in December.

b. Staff performed generator load bank tests at the North and South Shore Operations Complexes, and at the Lucas Creek and Morrison Avenue Pump Stations. All generators operated as designed and returned to service.

2. Carpentry Shop

SS Carpenters completed 42 annual pump station inspections. Staff constructed a safety cabinet for a Central Environmental Laboratory (CEL) van and cabinets for the ABTP lab. Construction of a manhole cover for the Pretreatment and Pollution Prevention (P3) Division was completed.

3. Coatings and Concrete

a. A contractor completed the restoration and rehabilitation of ABTP’s Nitrogen Enhancement Facility (NEF) tank and building leaks.

b. Concrete coating rehabilitation work on the exterior walls and roof

decks of BHTP’s aeration and secondary clarifier tanks began. c. Coating of the roof decks of NTP aeration tanks #5 and #6 NTP is

complete. The roof decks of aeration tanks #1 and #3 are 95 percent complete. Restoration of NTP’s #1 digester is to be completed in December.

d. A contractor completed coating restoration of the rake arm assembly

unit in YRTP primary clarifier #2.and began work on the rake arm assembly in primary clarifier #1.

4. Facilities Maintenance

New heating, ventilation, and air conditioning (HVAC) equipment (boilers, split-system materials, and humidifiers) are on site for the Central Environmental Laboratory’s roof and HVAC upgrade project. Temporary HVAC units were installed to maintain temperatures within workable limits. The demolition of the existing main air handler unit, boilers and humidifiers is complete.

5. Machine Shop

The Machine Shop rebuilt pumps at Dozier’s Corner and Ashland Circle pump stations. The Machine Shop also fabricated valve nuts and packing glands for SS Interceptor Systems, probes for the Technical Services Division (TSD) and sluice gate couplings.

F. Electrical and Energy Management

Dominion Virginia Power installed a new underground utility cable to BHTP, which has experienced a number of power anomalies with the existing overhead utility cable feeding the plant. The controls for a direct buried, 24-inch electromagnetic flow meter for the WBTP failed due to corrosion of electrical components. Staff is looking for an alternate place to measure flow until a new flow meter and vault can be constructed. Staff installed an I-Sense® electrical power-monitoring device at JRTP and BHTP. The devices notify staff by email when a power quality anomaly occurs (momentary loss of power, loss of phase, voltage sag, etc.). Staff will continue to install the devices where and when it makes sense to monitor the power quality. Staff conducted arc flash training for personnel at BHTP, CETP, SCD, SS Interceptor Systems and YRTP. All Electrical & Instrumentation staff attended classes on National Electrical Code (NEC) - Grounding and Bonding.

G. Water Technology and Research

Staff developed and implemented a new methanol dose control system at YRTP. YRTP uses industrially supplied methanol as a carbon source for nitrogen removal in its denitrification filter facility. The new system incorporates compound feedforward/feedback control scheme with a model-predicted methanol dose (Nitrate-in-calculated or NIC) combined with a nitrate-out-trim (NOT) to better match methanol dosage to the real-time demand in the denitrification filters. The new methanol dose control system, referred to as NIC/NOT, which was activated on September 26, has since reduced methanol usage at YRTP by approximately 25 percent and has dramatically decreased oscillations in methanol feed rate. The improved control of methanol dosing is important for the ongoing SWIFT pilot work at YRTP because it produces more stable effluent nitrogen concentrations across diurnal and day-to-day cycles and less bleed-through of dissolved organic carbon to the pilot feed when methanol is dosed in excess. This new methanol control strategy was adapted from previous

and ongoing work at NTP. Methanol dose control based on NIC/NOT has also been incorporated into upgrades at ABTP and VIP and will be activated following start-up of these plants’ respective methanol feed systems.

H. Strategic Measurement Data

1. Education and Outreach Events: 28 a. SS Interceptor Systems staff participated in a Pruden Center

Emergency Response Class b. BHTP tour for Hampton University Students c. BHTP tour for HDR Marketing Group d. Three SWIFT tours for BHTP employees e. Two CETP tours for Landstown High School Science classes f. Two CETP tours for Landstown High School Science classes g. JRTP - Boy Scouts from Troop 36 installed bat houses on the plant’s

expansion property to increase the bat population in the area as a natural way to reduce mosquitos at the plant

h. NTP tour for the Beijing Drainage Group, LTD. Primary interest was plant automation and plans for unattended operation.

i. Seven YRTP tours for SWIFT pilot tour attendees j. YRTP tour for the Beijing Drainage Group, LTD. k. YRTP tour for Farm Bureau representatives l. EEM Staff participated in Cooperating Hampton Roads Organization

for Minorities in Engineering Club (CHROME) Sponsor Launch 2016 event at STARBASE Victory Elementary School in Portsmouth

m. Charles Bott participated in the Water Environment Federation (WEF) Nutrient Conference program development meeting

n. Charles Bott presented the SWIFT program and sidestream deammonification work to various groups in NYC - 2

o. Charles Bott and Ted Henifin hosted a SWIFT briefing and tour for Virginia Department of Heath staff

p. Charles Bott, Amanda Ford and Kshitiz Uprety presented an update on several topics in a session at the Henrico treatment plant

q. Charles Bott et al hosted a group from Beijing Drainage Works for plant tours and briefings.

r. Charles Bott and Ted Henifin hosted a SWIFT briefing for WEF, Water Environment &Reuse Foundation, National Association of Clean Water Agencies and WateReuse staff.


a. VIMS b. ODU

c. Chesapeake Bay Foundation – oyster restoration d. Elizabeth River Oyster Project e. Landstown High School f. CHROME g. United Way h. Boy Scout Troop 36


M-1.4a Training During Work Hours per Full Time Employee (FTE) (507) – Current Month-

Hours / FTE 3.28

M-1.4b Total Training During Work Hours per FTE (507) – Cumulative Year-to-Date

Hours / FTE 18.12

M-2.3a Planned Maintenance Total Maintenance Hours

Total Recorded Maintenance Labor

Hours

25,965.25

M-2.3b Planned Maintenance – Preventive and Condition Based

% of Total Maintenance Hours

45.48

M-2.3c Planned Maintenance -Corrective Maintenance

% of Total Maintenance Hours

24.07

M-2.3d Planned Maintenance-Projects % of Total Maintenance Hours

30.45

M- 4.1a Energy Use: Treatment *reported for October 2016

kWh/MG 1,763

M-4.1b Energy Use: Pump Stations *reported for October 2016

kWh/MG 184

M-4.1c Energy Use: Office Building *reported for October 2016

kWh/MG 92

M-5.2 Educational and Outreach Events

Number 28

M-5.3 Number of Community Partners Number 8 Respectfully submitted, Steve de Mik

Director of Operations

TO: General Manager FROM: Special Assistant for Compliance Assurance SUBJECT: Monthly Report for November 2016 DATE: December 5, 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 final RWWMP, scheduled for October 1, 2017.

HRSD received an information request from the U.S. Environmental Protection

Agency (EPA) under the authority of Section 308 of the Clean Water Act on October 7, 2016. Requests under this authority must be responded to within 30 days and carry significant penalties for failure to comply. The information requested was primarily for detailed financial information that will become the basis of the affordability analysis and ultimately the schedule for the Regional Wet Weather Management Plan (RWWMP). While some of this information was used to prepare the preliminary schedule included in the Alternatives Analysis Report, the detailed information requested is actually required to support the schedule we will submit with the RWWMP in October 2017. As such, HRSD invoked dispute resolution on October 28, 2016. A face-to-face meeting with the EPA and the U.S. Department of Justice has been scheduled for December 19, and the 308 response is on hold pending the outcome of that meeting.

B. Submittals Completed in November 2016 – The Fiscal Year-2016 Annual Report,

due on November 1, was submitted to the EPA at the end of October. No other submittals were required during this period.

C. Activities

1. Phase 6 – Rehabilitation Plan. Work continues on FY-2017 work orders.

No work orders were completed in November.

2. Phase 7 – RWWMP. Development of the RWWMP solution set optimization process continued in November with the first series of optimization workshops (Army Base held on November 15, Williamsburg on November 29, and James River on November 30). Revisions to the Infiltration and Inflow (I/I) Reduction Program were balanced against capacity improvements to reduce the overall program cost.

Technical coordination team meetings were held on November 3 and 17 to review overall progress. Additional meetings were held in November to review the projects associated with the Chesapeake-Elizabeth Treatment Plant closure.

3. Phase 8 – EPA Consent Decree Services. A quarterly review of Interim

System Improvement projects and Rehab Action Plan projects was held on December 5. 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 November 2 to review overall progress.

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 November with data collection and analysis is being performed as part of the MOM Program. A review of the active gravity flow meters was completed on November 22.

Field work for Work Order FMP2 038 Southern Boulevard under Phase II of the Force Main Condition Assessment (FMCA) Program continued in November and FMP2 037 Pocahontas Trail was completed. Field work for SR 062 Euclid Avenue was underway for a repair made due to a force main break. Field work continued in November under the Gravity Sewer Inspection Phase II Program, which included Work Order GMP2 SCD 011 Odi Street. Work on the FY-2016 Condition Assessment Annual Report continued in November.

D. Next Submittals 1. Quarterly Briefing with the EPA/DEQ – January 2017 2. Annual Public Meeting – January 2017 3. Annual Newsletter – February 2017

E. Program Budget Status The overall program budget is $131,191,858, excluding the Master Metering Program. A summary of appropriations and expenses is attached.

F. Strategic Planning Metrics Summary



Item # Strategic Planning Measure Unit November

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


36

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 November 2016 AvailableAppropriation Obligations Balance

Regional Consent Order and Other ConsentOrder Requirements

Regional Hydraulic Model $104,248,712 $107,864,987 -$3,616,275

Manhole Rehab/Replacement Phase I & North Shore Siphon Chamber $2,834,000 $441,822 $2,392,178

Pump Station Wet Well Rehabilitation Phase I $2,890,000 $317,920 $2,572,080

Locality System Monitoring and Condition Assessment $21,219,146 $20,493,214 $725,932Subtotal - In progress $131,191,858 $129,117,943 $2,073,915

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 $144,751,718

TO: General Manager

FROM: Director of Talent Management

SUBJECT: Monthly Report for November 2016

DATE: December 6, 2016

A. Human Resources

1. Recruitment a. Summary

New Recruitment Campaigns 8 Job Offers Accepted Internal Selections 5

External Selections 1 Internal Applications 26 External Applications 174 Average Days to Fill Position 133

2. Enterprise Resource Planning (ERP)

a. HRSD worked on the following with the managed services vendor:

(1) Several conference calls to address benefit module issues and reconfiguration (2) On-site training for Oracle Business Intelligence reporting and

configuration

b. Worked with Oracle on Service Requests related to self-service functionality and benefits setup.

c. Staff worked with Information Technology (IT) on the following: (1) Development of an appraisal checklist report (2) Report requests for HR related data

3. Benefits and Compensation

a. The Employee Assistance Program (EAP) quarterly utilization meeting was held with the EAP provider. Utilization has increased since the first quarter. Administrative processes were discussed and several communication flyers were provided on holiday stress and on types of EAP services available to employees.

b. Staff completed final review of the Employee Benefits Internal Audit Report and began developing and executing a plan to address report recommendations.

4. Wellness

a. Participation Activities

Year 3 Participation Activities

Unit November

2016 Year to Date (March 2016–

February 2017) Biometric Screenings Number 3 26 Preventive Health Exams Number 9 85 Preventive Health Assessments

Number 46 409

Coaching Calls Number 0 4 On-Line Health Improvement Programs

Number 104 1504

Web-MD Online Health Tracking

Number 179 1507

Challenges Completed Number 0 1 Fit-Bit Promotion Number 7 79

b. Fourteen work center teams participated in the Push-Up challenge with

109 employees and spouses completing 137,481 push-ups over 22 days. The Virginia Initiative Plant (VIP) team won the challenge.

d. The Wellness Specialist began healthy breakfast demonstrations at six

work centers.

5. Workers Compensation a. Eight new cases were opened with 12 cases remaining active.

b. Conference calls were held with HR and the insurance carrier to ensure

improvements are meeting the needs of all stakeholders. Additional issues were identified and solutions implemented.

6. Employee Relations

a. Staff continued to partner and meet with work center supervisors to

provide guidance. Policies related to pay for Apprenticeship day classes and critical pay were clarified. Professional registration and training, military leave and retiree health plan eligibility policies were updated and approved.

b. HR Specialists participated in interview panels for positions in

Operations.

7. General

a. Staff attended the following training: (1) Kaufman & Canoles Employment Law Update (2) Emtec Business Intelligence Training (3) Society of Human Resources Management HR Generalist

Training (4) Emotional Intelligence Training (5) SWIFT Tours b. Staff participated in the following: (1) Water Environment Federation Utility Management Committee’s

Human Resources and Operations Workgroup (2) HRSD Asset Management Workshop

B. Organization Development and Training

1. Training a. The HRSD University team provided an update and recommendations

to the Quality Steering Team for on-line delivery of information. Recommendations were based on evaluation of various software tools and employee feedback. Two e-learning courses, Employee Benefits and Introduction to Biological Nutrient Removal will be piloted.

b. 2016-17 Learning Catalogue classes continued to be offered. Participant feedback data is being complied for program evaluation.

2. Apprenticeship Program The Apprenticeship Committee met and addressed issues related to math exams and courses as well as communication and administration of Apprenticeship day classes.

3. Quality

All Work Center Planning Days for Fiscal Year-2017 were completed. Results will be posted for all work centers by the end of the year along with parking board items for QST review.

C. Safety

1. Mishaps and Work Related Injuries

a. HRSD-Wide Injury Mishap Status to Date (OSHA Recordable) 2015 2016

Mishaps 49 38

Lost Time Mishaps 11 7

Numbers subject to change pending HR review of each case.

b. MOM Program Year Performance Measure Work Related Injuries

November

2016 Injuries For Operations

November 2016 Injuries for Other

HRSD Departments

Total Lost Time Injuries

Since July 2016

Total HRSD Injuries Since

July 2016

4 2 3 17

c. Follow-up investigations were performed on six work related injuries and

three auto accidents.

2. HRSD Safety Training

Strategic Planning Measure Unit November 2016

Total Safety Training Hours per Full Time Employee (814) All HRSD – November 2016

229.46Hours / 814 FTE

0.28

Total Safety Training Hours Per Full Time Employee (814) – Cumulative July 2016

1512.18 Hours / 814 FTE

1.86

3. In addition to regularly scheduled safety training and medical monitoring, the

following sessions were conducted: a. Two external briefings for contractors working at HRSD treatment plants

and pump stations

b. Methanol Safety training for Army Base Treatment Plant employees c. Two Chemical Hygiene Plan training sessions for Water Quality

employees d. Virginia Department of Transportation Work Zone Basic Traffic Control

training for North Shore Interceptor Systems employees

4. Safety Inspections, Testing and Monitoring a. Weekly on-site inspections of the following construction sites:

(1) VIP (2) York River Treatment Plant (3) James River Treatment Plant (4) Central Environmental Lab (CEL) b. Quarterly safety inspections of the following work centers:

(1) Air Rail Avenue Complex Buildings (2) North Shore Pump Stations (3) South Shore Pump Stations (4) York River Treatment Plant (5) VIP

c. Monitoring and testing for the following: (1) Monthly hood velocity tests on CEL and Technical Services lab

hoods d. The following safety walk-throughs or evaluations were conducted:

(1) Escorted Virginia Beach Fire Department representatives on tours of the Chesapeake-Elizabeth Treatment Plant and the CEL

(2) Evaluated the Nansemond property for trespassing and other potential safety issues

5. Safety Programs

a. Daily Hot Work permits were completed for a contactor working at the CEL.

b. Staff met with Electrical Safety Managers to continue development of the Electrical Safety Program.

c. Arc Flash labels were installed on Main Office electrical panels.

d. Annual audiometric testing continued.

e. The following was performed for the confined space program:

(1) Updated confined space permits for the York River Treatment Plant

f. The Safety Team toured on-going construction at VIP.

g. Respiratory Protection Program training updates were completed.

h. A North Shore Automotive Shop Sprinkler system failure was evaluated.

i. Staff finalized the 2017 Medical Monitoring, Training and Inspection

Calendar.

j. Asbestos Awareness Program information was updated.

k. Evacuation drawings were completed for new Technical Services Division offices.

l. The Safety Coordinator continued to maintain Operation’s Safety Accident Tracking report.

D. Monthly Strategic Planning Metrics Summary

1. Education and Outreach Events: 1 a. Tidewater Community College Job Fair

2. Community Partners: 1 a. Tidewater Community College


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 (15) – Current Month

Total Training Hours/ FTE

4.2

M-1.4b Total Training Hours Per FTE (15) Cumulative Fiscal Year-to-Date

Total Training Hours/ FTE

28.2

M-5.2 Educational and Outreach Events

Number 1

M-5.3 Community Partners Number 1 Respectfully submitted, Paula A. Hogg Director of Talent Management

TO: General Manager FROM: Director of Water Quality (WQ) SUBJECT: Monthly Report for November 2016 DATE: December 12, 2016 A. General

1. No Civil Penalties were assessed this month.

2. The Director attended the National Association of Clean Water Agencies'

(NACWA) Leadership Meeting in Alexandria, Virginia. The Leadership Meeting provided an opportunity for HRSD to bring its observations forward regarding the mission, vision and strategic plan of NACWA. The Director co-led a session on how nutrients are currently regulated and whether the current path being taken by regulators is actually improving impaired surface waters. The federal Environmental Protection Agency (EPA) continues to advocate for a national approach consisting of standards of performance to be applied nationally. A current example of this approach includes EPA’s latest proposal to define nutrient removal performance for wastewater treatment facilities that have not included capital improvements specific to nutrient removal. The proposal calls for surveying 16,000+ wastewater treatment facilities and requesting information specific to nutrient removal. HRSD’s treatment and water quality experts have been consulted and it is clear that such an effort has little chance of success because every plant is truly different in many ways that affect nutrient removal performance. A site-specific approach to enhance performance is required if effecting change at a facility-by-facility basis is desired. HRSD provided this comment to EPA but the agency still wants to perform the survey. HRSD will continue to work with NACWA and EPA to implement an approach that is effective and efficient in providing environmental benefits.

3. The Director attended the NACWA Law Seminar, which was constructive in providing information important to HRSD and other wastewater agencies that relates to the requirements of the Clean Water and Clean Air acts. A federal rule requiring that all National Pollution Discharge Elimination System (NPDES) permit holders submit discharge monitoring reports (DMRs) electronically will become effective in December of 2016 and HRSD will be submitting its first NPDES DMRs electronically in January of 2017. One session of the Seminar raised the need for wastewater facilities to ensure that the data submitted electronically continues to meet the “true

and accurate” standard even though written reports may no longer be submitted. This requires review of information at various levels of the information development process. The HRSD Water Quality (WQ) Department will continue to pursue steps necessary in demonstrating that all DMR information submitted electronically meets the expectations of the standard.

B. Quality Improvement and Strategic Activities

1. The Pretreatment Information Management System (PIMS) Team reported that the new internet based Publicly Owned Treatment Works Administration and Compliance System (iPACS) and the Field Assistant Service Tracking (FAST) application is operational. Work continues on addressing punch list items, modifying business processes so that they align best with the new systems and refining training documents.

2. The Technical Services Division (TSD) Technology Team and HRSD’s

Information Technology Department have completed an evaluation of a digital transformation forms program. The team is in the process of reaching out to other departments to see if this technology will be a benefit to others.

3. The Water Quality (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

HRSD provided sampling and analytical services to Hanover County, Prince William County and the City of Hopewell to support their Virginia Pollution Discharge Elimination System (VPDES) permit application process.

D. Strategic Planning Metrics Summary

1. Educational and Outreach Events: 3 a. Staff conducted a laboratory tour for Landstown High School

Advanced Placement Environmental Science students. b. Staff provided information about water quality monitoring in the

Elizabeth River Watershed for the Elizabeth River Project’s RiverFest.

c. Staff participated in the Canon Environmental Fair.


a. Pretreatment, Pollution and Prevention (P3) staff participated in an askHRgreen.org (Fats, Oils, Grease) FOG Committee meeting.

b. P3 staff participated in the work of the HRSD United Way committee. c. TSD and the Laboratory Division assisted the City of Newport News

with a microbial source tracking project at Hilton Beach. d. TSD and the Laboratory Division assisted the City of Virginia Beach

in its bacteria study in Mill Dam Creek watershed. e. TSD and the Laboratory Division assisted the City of Suffolk with a

fecal source identification project in Shingle Creek. f. TSD and the Laboratory Division provided Chlorophyll Monitoring and

Assessment Program support to the Virginia Department of Environmental Quality in monitoring the James River.

g. TSD and the Laboratory Division assisted the City of Chesapeake and the Elizabeth River Project with bacterial monitoring and fecal source identification in the Indian River.

h. TSD and the Laboratory Division assisted the City of Norfolk with a microbial source tracking project at Knitting Mill Creek.

3. Industrial Waste Related System Issues: 1 The City of Norfolk staff notified P3 staff of unusual color and elevated pH

in a city pump station. P3 staff investigated and did not locate a problem source.

4. Odor Complaints: 1

North Shore Interceptor Systems received an odor complaint regarding Ferguson Park pump station on November 1. The Operations and TSD staff who responded could detect no odors. The cause of complaint was unknown and no additional complaints were received so no further action was taken.


M-1.4a Training During Work Hours Per Full Time Employee (105) (Current Month)

Total Hours / # FTE 6.62

M-1.4b Total Training During Work Hours Per Full Time Employee (105) (Cumulative Fiscal Year-to-Date)

Total Hours / # FTE 28.24

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

3:21,871

M-3.2 Odor Complaints # 1

M-3.4 Pollutant Removal Total Pounds Removed

80,708,479

M-3.5 Pollutant Discharge % Pounds Discharged/Pounds Permitted

22%

M-5.2 Educational and Outreach Events # 3

M-5.3 Community Partners # 8

Average Daily Flow Total MGD for all Treatment Plants

134.45

Industrial Waste Related System Issues

# 1

Respectfully submitted, James Pletl, PhD Director of Water Quality

Hampton Roads Sanitation District Internal Audit Status November 30, 2016

Page 1 of 2

Engagement Background SC&H is continuing to progress with the planned internal audit assignments. During the month of November, we finalized and delivered the Human Resources Benefits audit report to the applicable members of the HRSD management team. Additionally, we conducted procedures relative to the Risk Assessment Refresh/Internal Audit Plan development process and the Inventory Process Review. These procedures included various on-site meetings with personnel throughout HRSD, a review of relevant information, and the completion of associated documentation. 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 Accomplishment Summary During the month of November, our team performed the following:

• Human Resources Process Review: o Finalized the audit report and presented it to the HRSD management team

• Inventory Process Review:

o Conducted walkthrough meetings with process owners o Visited and observed operations at various locations o Documented our understanding in process flowcharts o Drafted the project audit program

• Risk Assessment Refresh/ Internal Audit Plan development

o Met with various process owners and management to discuss current risk and potential audit areas

o Evaluated risk and updated risk assessment documentation Projected Tasks for December During the month of December, our team will:

• Inventory Process Review: o Perform audit fieldwork testing steps o Prepare the audit findings for discussion and begin drafting the audit report

• Risk Assessment Refresh/ Internal Audit Plan development

o Complete the evaluation of risk and update risk assessment documentation o Prepare the delivery of the risk assessment update results and the suggested internal audit

plans

Hampton Roads Sanitation District Internal Audit Status November 30, 2016

Page 2 of 2

• Procurement Process Review:

o Conduct the kick-off meeting with process owners o Deliver initial documentation request list

Engagement Notes/Delays No delays were incurred during the month of November. The HRSD teams continue to be helpful and supportive of the internal audit function. Future Activity/Engagements Following presentation to management, we will finalize our year 2 internal audit plan, present the results to the Commission and begin performing the internal audits.

Strategic Planning Metrics Summary

Annual MetricsItem Strategic Planning Measure Unit Target FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16M-1.1a Employee Turnover Rate (Total) Percentage < 8% 5.63% 4.09% 6.64% 7.62% 8.22% 9.97% 6.75%M-1.1b Employee Turnover Rate within Probationary Period 0% 2.22% 8.16% 14.58% 9.68% 0.66% 0.13%M-1.2 Internal Employee Promotion Eligible Percentage 100% 59% 80% 69.57% 71.43% 64.00% 69.00%M-1.3 Average Time to Fill a Position Calendar Days < 30 70 60 52 43.76 51 56M-1.4 Training Hours per Employee - cumulative fiscal year-to-date Hours > 40 30.0 43.8 37.5 35.9 42.8 49.0M-1.5a Safety OSHA 300 Incidence Rate Total Cases # per 100 Employees < 3.5 6.57 6.15 5.8 11.2 5.07 3.87 7M-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 0.82 1.9M-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 1.76 3.6M-2.1 CIP Delivery - Budget Percentage 113% 96% 124% 149% 160% 151%M-2.2 CIP Delivery - Schedule Percentage 169% 169% 161% 150% 190% 172%

M-2.3a Total Maintenance Hours Total Available Mtc Labor Hours Monthly Avg 16,495 22,347 27,615 30,863 35,431 34,168 M-2.3b Planned Maintenance Percentage of Total Mtc Hours Monthly Avg 20% 27% 70% 73% 48% 41%M-2.3c Corrective Maintenance Percentage of Total Mtc Hours Monthly Avg 63% 51% 12% 10% 18% 25%M-2.3d Projects Percentage of Total Mtc Hours Monthly Avg 18% 22% 20% 18% 32% 34%M-2.4 Infrastructure Investment Percentage of Total Cost of Infrastructure 2% 8.18% 6% 6% 4% 7% 7%M-3.3 Carbon Footprint Tons per MG Annual Total 1.61 1.57 1.47 1.46 1.44 1.45M-3.6 Alternate Energy Total KWH 0 0 0 5,911,289 6,123,399 6,555,096M-4.1a Energy Use: Treatment kWh/MG Monthly Avg 2,473 2,571 2,229 2,189 2,176 2205M-4.1b Energy Use: Pump Stations kWh/MG Monthly Avg 197 173 152 159 168 163M-4.1c Energy Use: Office Buildings kWh/MG Monthly Avg 84 77 102 96 104 97M-4.2 R&D Budget Percentage of Total Revenue > 0.5% 1.0% 1.4% 1.0% 1.3% 1.0% 0.8%

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 $1,246

M-4.4 Affordability8 CCF Monthly Charge/Median Household Income < 0.5% 0.48% 0.48% 0.41% 0.43% 0.53% 0.55%

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 $3,434

M-5.1 Name Recognition Percentage (Survey Result) 100% 67% 71% N/A 62% N/A 60% N/AM-5.4 Value of Research Percentage - Total Value/HRSD Investment 129% 235% 177% 149% 181% 178%M-5.5 Number of Research Partners Annual Total Number 42 36 31 33 28 35

Rolling 5 Year Average Daily Flow MGD 157.8 155.3 152 154.36 155.2 151.51 153.09Rainfall Annual Total Inches 66.9 44.21 56.21 46.65 46.52 51.95 54.14Billed Flow Annual Percentage of Total Treated 71.9% 82.6% 78% 71% 73% 74% 72%Senior Debt Coverage Net Revenue/Senior Annual Debt Service > 1.5 2.51% 2.30% 2.07% 1.88% 1.72% 1.90% 2.56%Total Debt Coverage Net Revenue/Total Annual Debt >1.4 1.67% 1.67% 1.46% 1.45% 1.32% 1.46% 1.77%

Monthly Updated MetricsItem Strategic Planning Measure Unit Target FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 Oct-16 Nov-16

Average Daily Flow MGD at the Plants < 249 136 146.5 158.7 156.3 153.5 155.8 186.4 134.5Industrial Waste Related System Issues Number 0 3 6 6 6 2 4 0 1Wastewater Revenue Percentage of budgeted 100% 97% 96% 98% 107% 102% 104% 109% 105%General Reserves

Percentage of Operating and Improvement Budget 75% - 100% 72% 82% 84% 92% 94% 95% 102% 102%Accounts Receivable (HRSD) Dollars (Monthly Avg) 17,013,784$ 17,359,488$ 18,795,475$ 20,524,316$ 20,758,439$ 22,444,273$ $25,621,811 $22,901,687Aging Accounts Receivable Percentage of receivables greater than 90 days 21% 20% 18% 19% 21% 20% 16% 18%

M-2.5 Capacity Related Overflows Number within Level of Service 0 25 1 30 5 11 16 0 0M-3.1 Permit Compliance # of Exceedances to # of Permitted Parameters 0 12:55,045 1:51995 2:52491 1:52491 2:52491 2:52,491 3:17,497 3:21871M-3.2 Odor Complaints Number 0 6 2 7 11 5 9 1 1M-3.4 Pollutant Removal (total) Total Pounds Removed 178,163,629 171,247,526 176,102,248 185,677,185 180,168,546 193,247,790 66,268,471 80,708,479M-3.5 Pollutant Discharge (% of permitted) Pounds Discharged/Pounds Removed < 40% 25% 22% 25% 22% 22% 20% 22% 22%M-5.2 Educational and Outreach Events Number 302 184 238 322 334 443 44 67M-5.3 Number of Community Partners Number 280 289 286 297 321 354 19 35

FLOW % of BOD TSS FC ENTERO TP TP TN TN TKN NH3 CONTACTPLANT mgd Design mg/l mg/l #/UBl #/UBl mg/l CY Avg mg/l CY Avg mg/l mg/l TANK EX

ARMY BASE 8.51 47% 2 2.3 6 1 0.62 0.89 10 8.3 NA NA 4ATLANTIC 25.74 48% 12 8.2 7 1 NA NA NA NA NA NA NABOAT HARBOR 11.50 46% 6 10 5 1 1.1 0.61 17 17 NA NA 2CENT. MIDDLESEX 0.015 58% <2 <1.0 1 1 NA NA NA NA NA NA NACHES-ELIZ 16.93 71% 21 19 33 4 1.5 1.4 30 29 NA NA 5JAMES RIVER 10.18 51% 4 4.0 1 1 0.97 0.75 7.4 7.3 NA NA 0KING WILLIAM 0.042 42% <2 <1.0 NA <1 0.018 0.56 0.52 0.69 <0.50 NA NANANSEMOND 16.81 56% 3 3.8 3 1 0.74 1.2 7.3 7.0 NA NA 22URBANNA 0.044 44% 7 15 9 11 6.0 4.6 21 21 NA <0.20 NAVIP 26.35 66% 8 7.9 3 1 1.0 0.94 9.0 8.3 NA NA 9WEST POINT 0.273 45% 21 14 2 4 3.5 2.7 19 15 NA 10 0WILLIAMSBURG 7.23 32% 3 2.9 3 4 0.76 0.70 4.8 6.2 NA NA 2YORK RIVER 10.83 72% 0 0.84 1 1 0.34 0.29 3.1 4.5 NA NA 7

134.45 8 8

North Shore 48% YTDSouth Shore 57% Tributaries % Lbs % % Lbs %Mid Peninsula 43% James River 69% 4,628,326 77% 87% 346,808 93%

York River 66% 206,235 72% 73% 15,271 79%Rappahannock 218% NA NA 680% NA NA

SmallCommunities

(FYJ)Pounds of Pollutants Removed in FY17 to Date: 80,708,479Pollutant Lbs Discharged/Permitted Discharge FY17 to Date: 22% Month 1.26" 0.98" 0.97"

Normal for Month 3.07" 3.04" 3.12"Year to Date Total 48.52" 66.32" 48.23"

Normal for YTD 47.25" 46.44" 44.50"

RainfallNorth Shore (PHF)

South Shore (ORF)Permit Exceedances:Total Possible Exceedances, FY17 to Date: 3:21,871

EFFLUENT SUMMARY FOR NOVEMBER 2016

Tributary Summary% of

CapacityAnnual Total Nitrogen Annual Total Phosphorus

Discharged Operational Discharged YTD

OperationalProjection CY16 Projection CY16

AIR EMISSIONS SUMMARY FOR NOVEMBER 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 6 36 100 0

BOAT HARBOR 0 0 3 0 n/a 0 0 0 1 51 98 0

CHES‐ELIZ 0 1 1 n/a 0 0 0 0 1 35 98 0

VIP 0 0 0 0 n/a 0 0 0 2 85 100 0

WILLIAMSBURG 0 0 0 0 n/a 0 0 0 2 10 99 0

ALL OPERATIONS

DEQ Reportable Air Incidents: 0 No. of Permit Deviations/Possible No. of Permit Deviations (11/16) = 19/3210No. Permit Deviations/No. Possible Permit Deviations (CY16 to date)* = 256/27,624

DEQ Request for Corrective Action (RCA): 0Total Time on Bypass/Total Time Operating (11/16) = 2 hrs/3234 hrs

DEQ Notice of Violation (NOV): 0 Total Time on Bypass/Total Time Operating (CY16 to date)* = 26.7 hrs/27,988 hrs

Other Air Permit Deviations: 0 Dry Tons Solids Processed (11/16) =2087Total Dry Tons Solids Processed (CY16 to date)* = 20,458

Odor Complaints Received: 1 Monthly average Dry Ton per Day (DTD) per MHI unit = 14.2

Odor Scrubber HRSD Exceptions: 0 * CY16 commences with 03/21/16 compliance requirements

Resource: Steve de Mik AGENDA ITEM 9.e. – December 20, 2016 Subject: Chesapeake-Elizabeth Treatment Plant Sulzer Effluent Pump Repair Emergency Declaration Recommended Action: No action is required. Information Only Brief: Due to catastrophic failure of the Chesapeake-Elizabeth Treatment Plant’s No. 1 Sulzer effluent pump, the suction bell came off and the impeller was damaged. All other pump components were either damaged or rendered out of factory specification as a result of the failure. A complete rebuild of the pump from the discharge head to the suction bell is required. An emergency declaration was authorized on December 6, 2016. This emergency was declared to authorize repairs for one Sulzer effluent pump from Sulzer Pump Services (US), Inc. The cost of this work is $99,826.

commission meeting minutes december 20, 2016 minutes/2016/12-20-16... · newport news for the...

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