Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water

• Continue a two-pronged, parallel approach to the CIP program - implement identified projects resulting from ongoing system
condition and needs assessment and increase and continue an annual sewer pipe renewal program. Based on a 20-year
planning outlook, this will require a $1.2 billion increase (2008 dollars) in capital spending to address currently identified
projects ($536 million) and a sewer pipe renewal program ($664 million).
In 1985, the District signed the Blue Plains Intermunicipal Agreement (the IMA) with the "Users" of the Blue Plains Wastewater
Treatment Plant facilities. The User signatories consist of the District of Columbia, Fairfax County in Virginia, and Montgomery and
Prince George's counties in Maryland and the Washington Suburban Sanitary Commission. The IMA outlines terms relating to
facility location, sizing, capacity allocations and funding, long-term management of the wastewater treatment and disposal process;
the Agreement also establishes a uniform payment basis for facilities and future improvements. IMA signatories share the cost of
operations, maintenance and the capital program at the Blue Plains facility. The three surrounding counties comprise approximately
60 percent of the Blue Plains capacity. Negotiations continue on amendments and updates to the Agreement. In FY 2009, the chief
administrative officers agreed in concept to inclusion of the CSO-L TCP as a joint-use facility and the applicable cost sharing for that
large, environmental 20-year program. The assumptions outlined from this discussion are included within the Financial Planning
section of this budget proposal.
In the case of our partners in Virginia and Maryland, the state of Maryland has a flush tax to offset ratepayer costs and Virginia has a
special appropriation through the General Assembly. District of Columbia residents/customers bear the full cost of these mandated
projects through retail rates.
Although cost and usage efficiency are important to us, the environment and safety are also of utmost importance. Our fleet program
has had another successful year due to significant capital investments in our fleet, which totals 540 vehicles, at an average life of
seven years. Through our structured preventive maintenance program, we were successful in reducing vehicle and equipment
downtime through more effective diagnostics and timely repairs and servicing. During FY 2010, we will continue our efforts to
explore ways to be more efficient in our use of vehicles and equipment.
Given the current price fluctuations, we are constantly examining automotive fuel purchasing options. The District's fueling services
currently offers the most beneficial fuel pricing. We are also focusing on ways to better measure and control usage, including:
Budget Overview and Performance
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