Alexandria Renew Annual Report 2016

Alexandria’s Utility of the Future Today

Transforming Water to Transform Our Community

pg. 2•••••••••••Watershed Partnerships

pgs. 3 - 4•••• •• •• Operational Excellence

pgs. 5 -7•••••••••••••••••• .Innovation

pgs. 8 - 9•••••Organizational Competency

pg. 10 •••••••••••••Community Benefit

pgs. 11-12•••••••••Revenue Stewardship

1

Alexandria’s Utility of the Future Today

AlexRenew’s five-member Board of Directors is made up of Alexandria community members appointed by City Council.

From left: CEO Karen Pallansch, ChairmanJohn Hill, Vice Chairman Tom Van Wagner, Secretary Treasurer Bruce Johnson, Member Bill Dickinson, and Member James Beall.

For Alexandria Renew Enterprises, 2016 marked 60 years of transforming water for Alexandria and parts of Fairfax County. With the chartered mission of cleaning wastewater to protect public health and the environment, AlexRenew has invested millions of dollars into critical clean water infrastructure. Today, thanks to many watershed partners, the Potomac River and Chesapeake Bay are healthier than they have been in a generation.

Last summer, a partnership of water sector organizations recognized AlexRenew as a Utility of the Future Today. One of 61 wastewater facilities across the world to receive this first-of-its-kind honor, AlexRenew was acknowledged for advancing resource efficiency and recovery and creating strong community partnerships.

AlexRenew’s 2040 Vision focuses on developing an informed citizenry of water stewards, enabling personal connections with local waterways, and maintaining stable rates for our customers. Toaccomplish our vision, we are creating new ways for our neighbors to learn about water steward-ship, from educational centers and tours to online updates. We are creating job opportunities and training the water workforce of tomorrow through our apprenticeship program. We transform waterand air with industry-leading technologies that control odors and further reduce water pollution. We manage costs by using resources efficiently and recovering and reusing them where possible.

While we work hard to keep rates stable and affordable, we do not want a person’s AlexRenew bill to be an obstacle to financial stability. We partnered with United Way to launch a payment assistance program, the H2O (Help 2 Others) Fund — a way for customers needing temporary assistance to pay their wastewater bills.

At AlexRenew, our passion for creating a cleaner, safer, better world drives all we do for our cus-tomers and community. When our customers pay their bills, they can be assured that their payment is an investment in the health of our community and water environment.

2 Watershed Partnerships

ALEXANDRIA’S WATER SYSTEM TEAM: THREE ORGANIZATIONS. ONE AMAZING JOB. How does Alexandria’s water system work? With teamwork! Our city’s water system relies on the services of three organizations: Virginia American Water, the City of Alexandria and Alexandria Renew Enterprises.

1

After you use water, it goes down the drain and enters the sewer system, which is maintained by the City of Alexandria.

2

3 The dirty water connects to a superhighway of pipes and comes to Alexandria Renew Enterprises. We transform the used water into a sparkling clean resource before releasing it back into the Potomac River and Chesapeake Bay. We also reuse some of this water in our buildings and irrigation.

Working together for a cleaner watershed and a healthier Alexandria. To find out more, visit alexrenew.com.

Watershed PartnershipsAlexandria’s water system team works to manage water as one resource

First, Fairfax Water treats water from the Potomac River and OccoquanReservoir. Virginia American Water purchases and delivers this drinkablewater to Alexandria’s homes and businesses.

RENEWING AND REUSING WATERAlexRenew cleans about 35 million gallons of dirty water daily, most of which goes back to the PotomacRiver. We also reuse about 1.4 billion gallons of thatwater per year in our daily operations, saving money and conserving high-quality water for other purposes.

1.4 billion gallons of water reused, saving

$3 million

AlexRenew uses reclaimed water in our Environmental Center for toilet flushing, our fish tank, a decorative water feature, and for irrigating the building’s landscape and indoor biowall. Photo: © Eric Taylor

Operational ExcellenceMeeting or surpassing environmental requirementsthrough operational excellence

RECYCLING AND REMOVING NUTRIENTS

Pounds of phosphorus (per year)

Pounds of nitrogen (per year)

Regulatory limit

Regulatory limit

Amount discharged

Amount discharged

29,603

5,963

493,381

315,892

AlexRenew removes 99.2% of phosphorus and 95% of nitrogen from the water we clean.

Monitoring the Health of Our WaterwaysAlexRenew releases clean water to Hunting Creek—a tributary of the Potomac River — and partners with George Mason University to monitor the health of the creek. This study helps AlexRenew understand the watershed we serve.

5500 dry tons of nutrient-rich biosolids recovered to help farmers replenish their soil.

Operational Excellence 3

4 Operational Excellence

SIGNS OF SUCCESSIn 2016, the Potomac River received its best grade yet. Collectively, the wastewater sector met landmark nutrient pollution limits protecting the Chesapeake Bay 10 years ahead of schedule. The Bay scored one of its three highest grades since 1986, and underwater grasses and blue crabs showed promising increases.

150 millioncubic feet of methane gas

produced per year,

enough energy to power

1,800 Virginia homesfor a year,

offsets purchased energy by

32% , saving over $600,000

REDUCING AND PRODUCING ENERGYTransforming water is an energy-intensive process, and AlexRenew is a top energy user in Alexandria. In an effort to become more energy efficient, we have reduced our energy use by 17% since 2008. In the process of cleaning dirty water in 2016, we generated more than 150 million cubic feet of renewable methane gas — enough to offset purchased natural gas by 32%. We are also using solar energy to generate 40% of our administrative building’s power.

Our digesters are like giant stomachs. Inside the digesters, microbes eat solids. As they digest the solids, the microbes produce gas that we collect and use as energy.

This year, we completed our $160-million State-of-the-Art Nitrogen Upgrade Program (SANUP). The goal of SANUP is to protect the Chesapeake Bay by achieving rigorous nitrogen limits. SANUP enables us to reduce the total nitrogen we discharge to the Chesapeake Bay to 3 mg/L, an additional 20% annually.

NUTRIENT MANAGEMENT FACILITYOur Nutrient Management Facility (NMF), an 18-million-gallon treatment facility topped with apublic athletic field, is the largest in the SANUP portfolio. It balances the amount of nitrogen that goes into our biological treatment process, helping us consistently and effectively reduce the amount of nitrogen discharged into the Chesapeake Bay watershed.

5Innovation 5

Awarded for Innovation We received two engineering excellence awards in 2016 for the SANUP design. The American Council of Engineering Companies of Metro Washington and the American Academy of Environmental Engineers & Scientists both recognized the project for its innovation, commitment to sustainability, and contribution to improving quality of life.

Incubator of New Ideas and InnovationsImplementing innovative ideas and technologies that result in a cleaner Alexandria environment

Recognized for SustainabilityThe Institute for Sustainable Infrastructure awarded our Nutrient Management Facility the Envision® Sustainable Infrastructure Platinum Award for its environ-mental, social, and economic outcomes. This is the first Envision Platinum Award in Virginia and the D.C. metro area and also the first for a U.S. water resource recovery facility.

6 Innovation

CENTRATE PRETREATMENT FACILITYBy using a shortcut when removing nitrogen, Anammox bacteria use less air, energy,and chemicals. In our Centrate Pretreatment Facility (CPT), Anammox bacteria clean nitrogen-rich water that we remove from our solids using large spinning centrifuges. This water, called centrate, holds as much as 25% of all nitrogen in the dirty water at AlexRenew. The CPT—among the first of its kind in North America—can treat 276,000 gallons of centrate per day, removing 85% of the total nitrogen from this waste stream.

FOUR MILE RUN PUMP STATIONWe upgraded our Four Mile Run Pump Station with high-efficiency pumpsand a new system to minimize any odors leaving the station.

Using Anammox bacteria has the potential to create a 25% savings on energy and chemicals when compared to conventional wastewater cleaning processes.

Infrastructure Inspires Community CollaborationWith input from neighbors of our Four Mile Run Pump Station, we have designed and are constructing an educational fence around the pump station. Located next to Cora Kelly School, it will incorporate exhibits that inspire water stewardship and show how water infrastructure works.

Innovation 7

RECOGNIZED FOR INNOVATION

AlexRenew is a Utility of the Future TodayAlexRenew was recognized by water sector groups as a Utility of the Future Today for our sustainability, organizational culture, community engagement, and success at recovering resources from wastewater. These innovative utility management practices are all about improving quality of life for our customers and using the resources provided to us in the most efficient way possible.

11 Years of Platinum Peak PerformanceAlexRenew has been recognized by the National Association of Clean Water Agencies 11 years in a row for the perfect quality of the water we transform. By cleaning water to such a high standard, we keepAlexandria’s waterfront clean and safe for our community’s enjoyment.

Environmental Excellence As a continuing Extraordinary Environmental Enterprise facility in the Virginia Environmental Excellence Program (VEEP), AlexRenew is expected to achieve the highest levels of environmental performance and leadership within our community. This year, we were also named a VEEP Sustainability Partner. This recognition is for organizations that make environmental sustainability part of their culture.

– John Hill, AlexRenew ChairmanAlexRenew is

fortunate to serve a community that values

sustainability and supports efforts to protect

and improve our local waterways.

8 Organizational Competency

– AlexRenew CEO, Karen Pallansch

Water and wastewater jobs not only add to the

economy, these professionals help make economic growth

possible by providing reliable services and improving our community. Because they

work 24/7, Alexandria’s citizens can count on

clean water.

Enhancing Organizational CompetencyAchieving long-range objectives with a team that learns, adapts, and innovates

FOSTERING TEAM SAFETYAlexRenew fosters a team safety culture with frequent trainings and monthly campus inspections performed by a dedicated interdepartmental safety and sustainability committee.

X 1,000,000

1 million hours without a lost-time workplace incident

APPLYING OUR SKILLS FOR ALEXANDRIA

8Professional engineers

35Licensed operators

21 Certified maintenance & reliability technicians

10Licensed electricians

5,000Training hours logged

1Certified Public Accountant

TRAINING THE WATER WORKFORCE OF TOMORROWAlexRenew’s apprenticeship program provides formal career training with academic and hands-on instruc-tion for skilled technician trades. We are training more than 10 apprentices to be mechanics, electricians, and wastewater operators, and nine have completed the program.

DEDICATED TO CLEAN WATER“Clean water is critical for the quality of life in Alexandria and the region. The water we use, flush, or clean with has to go somewhere to be transformed, or else it becomes a public health issue.”

– Marcus Andrew, Operator-In-Training

– K

evin

Lov

eles

s,

W

aste Water Systems Apprentice

The apprenticeship program is interesting

because we are learning from operators

who have been here 30 years. They

know all the ins and outs of the plant.”

Organizational Competency 9

URBAN ALLIANCE INTERNS LEARN AND GROW AT ALEXRENEWAlexRenew partners with the Urban Alliance’s High School Internship Program to mentor seniors from Wakefield and T.C. Williams High School. This year-long program for strong but under-resourced students helps prepare them for professional environments through paid internships with formal training. Dawn Berry, our HR Generalist and Urban Alliance mentor, was named 2016 Mentor of the Year.

“Alexandria’s Water Transformers” video recognizes our team by highlighting all of the varied roles and skills it takes to transform water. Watch the video at:bit.ly/WaterTransformersVideo.

In 2016, AlexRenew celebrated its second graduating class of apprentices (above) while welcoming five new apprentices (right).

CREATING SPACE FOR NATURE TO THRIVEAlexRenew joined local volunteer groups — Master Naturalists, Master Gardeners, and Audubon at Home — as well as the City of Alexandria, Earth Sangha, and Native Plant Landscape Design to plant more than 900 native plants. Together, we created one of the largest native plant restoration projects in Alexandria.

St. Stephen’s & St. Agnes School won the 2016 Ellen Pickering Environmental Excellence Award.

TRANSFORMING WATER TAKES MOXIE AlexRenew’s nitrogen-eating superhero, Moxie, has been hard at work over the last year educating childrenabout transforming dirty water and empowering families to become better water stewards. You may have seen Moxie at FieldFest and Earth Day, and now you can follow her on Instagram—just look for @callmemoxie.

CELEBRATING CLEAN WATERIn 2016, AlexRenew participated in several national andregional events to raise awareness about the value of water and our infrastructure, including Imagine a Day Without Water, Infrastructure Week, and the inauguralChesapeake Bay Awareness Week. AlexRenew hosted facility tours showcasing innovative water transforma-tion technology for media as well as elected officials serving our region.

EARTH DAY 2016The City of Alexandria hosted its annual Earth Day celebration on April 30 with the theme “Choose toReuse – Your Choices Matter!” At AlexRenew’s tent,kids and parents learned how to prevent clogged pipes at home and picked up bags of our nutrient-rich soil amendment to help their gardens grow.

10 Community Benefit

Community BenefitEngaging our community to enhance understanding and water stewardship

Revenue Stewardship 11

Revenue Stewardship Ensuring financial stability and minimizing the impact on our customers through revenue stewardship

Revenues

Sewage treatment charges . . . . . . . . $ 38,076,180

Fairfax County

Operating . . . . . . . . . . . . . . . . . . . $ 10,570,300

Improvement, Renewal

& Replacement . . . . . . . . . . . . . . .$ 2,670,300

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 51,316,780

Non-Operating Revenues

Investment Income . . . . . . . . . . . . . . $ 473,157

Grants . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,022,817

Fairfax County Capital

Project Contribution . . . . . . . . . . . . . $ 23,055,329

TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,551,303

$3,589,415Joint Improvement, Renewal & Replacement Overhauling and replacingcritical equipment and sustainable infrastructure investment for our retail and wholesale customers.

$1,700,561Community BenefitCommunity education, outreach, and customer billing services.

$39,205,726 Joint CapitalImprovementsConstructing facilities that support major programs for both retail and wholesale customers.

$3,822,681Alexandria-Only ProjectsOverhauling and maintaining facilities that provide service only to Alexandria customers.

$1,440,262 Revenue StewardshipMaintaining infrastructure and technology assets as well as back-office support.

$1,354,018Arlington Sewage DisposalSupporting the operations and maintenance associated with the City’s allocated capacity at the Arlington County Water Pollution Control Plant.

$12,839,421Debt Principal & Interest PaymentsPaying back loans taken in previous years to upgrade and maintain AlexRenew.

$4,990,677Operational ExcellenceCosts for the energy, chemicals, and water needed to operate the plant.

$2,600,953Watershed PartnershipsProviding outsourced services to support AlexRenew’s core function.

$12,006,701Organizational Competency

Providing the best-in-class water professionals for

effective and safe operations.

What does AlexRenew’s revenue pay for?

12 Revenue Stewardship

$302,461 Ideas & InnovationsAncillary services to ensure clean, safe water for our community and environment.

Alexandria Renew Enterprises

@AlexandriaRenew

Alexandria Renew Enterprises

callmemoxie

1800 Limerick Street, Alexandria, VA 22314703-549-3381 • alexrenew.com