2011 Annual Report - DC Water

message from the chairman
This is the third year I’ve had the
privilege of occupying this space in
the DC Water Annual Report. As
Chairman of the Board of Directors, I
preside over many meetings and
review numerous contracts. If I had to
choose a theme that lurks between
the lines of the hours of discussion
and pages of documents, it would be,
simply, “Wow, what a year.”
Fiscal Year 2011 was a year of changes in governance. The
District of Columbia welcomed its sixth mayor, Vincent Gray.
His City Administrator, Allen Lew, joined the Board along with
five other new members from the District and Prince George’s
County. I would like to salute my colleague David Bardin, who
retired from the Board after more than 10 years of diligent,
purposeful service to DC Water.
As you will read in the pages that follow, DC Water broke
ground this year on three projects of unprecedented scale.
Our biosolids digester will generate clean, renewable electricity
and reduce our carbon footprint. Enhanced nitrogen removal
will further DC Water’s exceptional track record of lowering
nitrogen levels in the Potomac River and Chesapeake Bay
Watershed. The Clean Rivers Project will reduce the amount
of sewage entering the District’s waterways during heavy
rainstorms. These projects will have a dramatic impact on the
environment, DC Water’s operations, and our local economy –
to the tune of $4 billion in capital expenditures.
DC Water provides a service – water – that is fundamental
to life and is the only public service that must be provided for
our regional economy to exist. We employ more than 1,000
people, have an annual budget of nearly $1 billion, and supply
and treat more gallons of water every day than there are
people in the United States.
DC Water manages your rate dollars exceptionally well. We were
under budget for both operating costs and capital projects and
generated an operating surplus of $25 million in 2011. We issued
$300 million of Build America Bonds at 3.6 percent, the lowest
interest rate ever for DC Water. We reduced overtime by 15
percent, saving ratepayers $350,000. We locked in energy prices
at the beginning of the year and re-negotiated several chemical
contracts, saving ratepayers an additional $8 million.
Beyond exceptional financial management, the Board of Directors
challenged DC Water’s management team to improve the quality
of service our ratepayers receive. Ten years ago, fully 25 percent
of the District’s fire hydrants were out of service – today, less
than 1 percent of hydrants are out of service. When there are
service disruptions today, ratepayers are proactively contacted
and can receive service updates via email, DC Water’s web site,
and even on Twitter. Most importantly, the quality of DC Water’s
water continues to be exceptional. Once again in 2011, DC Water
exceeded all federal water quality standards by a wide margin.
I know that the entire board joins me in congratulating General
Manager George Hawkins and everyone at DC Water for their
exceptional performance in 2011. DC Water, today, is viewed as
one of the most innovative, well-run water utilities in the world. It
is our mission to provide our ratepayers with a great product and
exceptional service at the lowest cost possible. DC Water did
just that in 2011.
William M. Walker, Chairman
DC Water Board of Directors
DC Water breaks ground May 17, 2011 on major environmental projects
at Blue Plains Advanced Wastewater Treatment Plant.
L-R
Dr. Ellen Gilinsky, Senior Policy Advisor, Office of Water, United States
Environmental Protection Agency; Vincent C. Gray, Mayor, District of Columbia;
George S. Hawkins, Esq., General Manager, DC Water; Walter F. Bailey,
Assistant General Manager of Wastewater Treatment; William M. Walker,
Chairman, DC Water Board of Directors; David Lake, Alternate Board Member,
Montgomery County, Md.; James Patteson, Alternate Board Member, Fairfax
County, Va.
1 2011 Annual Report dcwater.com water is life 2