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COVER
ALEXANDRIA RENEW ENTERPRISES
ANNUAL REPORT 2014
MOVING FORWARD
ALEXANDRIA RENEW ENTERPRISES
2040 VISION STATEMENT
By 2040, we have served as a catalyst and are effectively partnered with all
watershed stakeholders to:
• Enable local citizens the opportunity to establish a personal connection with
local waterways so that we can eat local fish and swim in local streams;
• Support a healthy and resilient local economy through stable rates, supported
by diversifying revenue and maximizing resource recovery; and
• Create an informed citizenry regarding the importance of water so that water
stewardship is achieved through personal and organizational actions.
Tom Van Wagner
Vice Chairman
MESSAGE FROM THE
ALEXANDRIA RENEW ENTERPRISES
CHAIRMAN OF THE BOARD & CHIEF EXECUTIVE OFFICER
Sustainability continues to drive Alexandria Renew’s operations and strategic thinking. In 2014, we
used by-products from our water cleaning process to help power and run our facilities, cutting our
need for costly natural gas and precious fresh water. Our state-of-the-art technology and dedicated
workforce are helping to put us on a solid path to becoming a water utility of the future.
EPA Administrator Gina McCarthy said, “Clean water isn’t just a health priority, it’s an economic
necessity.” And as we learned last year, Alexandria Renew is an engine of economic growth.
William Dickinson
Secretary-Treasurer
A groundbreaking study sponsored by the Water Research Foundation and the Water Environment
Research Foundation estimated that Alexandria Renew will create 440 direct and indirect
jobs over the next decade, with $830 million in total economic output. Along with protecting
the environment and the public’s health, it’s yet another way of giving back to the Alexandria
community.
This was all made possible because Alexandria Renew focuses on providing world-class service
and environmental excellence to the community we serve with strict oversight, transparency, and
financial controls.
Bruce Johnson
We especially keep a sharp eye on rates. Stable rates are important to our customers and a
benchmark for Alexandria Renew. They provide certainty to residents and businesses alike and
allow them to better plan and budget for today and the future. In 2013, we announced a series
of small rate increases over a three-year period, and as promised, we’ve stuck to them with no
surprises. Our rates are comparable to those of water cleaning utilities in surrounding areas.
This year, Alexandria Renew also made an extra effort to reach out to the community to tell the
story about who we are and why we matter. We spoke to neighborhood associations, conducted
numerous tours, and held an open house of our award-winning facility. We’re water stewards and
working to make a lasting impact on the environment and our lives—a vision that we at Alexandria
Renew and this great community can fully embrace.
Matthew Ries
AlexRenew’s Board
of Directors is a
five-member body
of citizens who are
appointed by the
Alexandria City
Council to four-year
staggered terms.
The board is a public
body in all respects,
but is independent of
the City government
administratively and
financially.
John Hill
Chairman
Karen Pallansch
Chief Executive Officer
ALEXANDRIA RENEW ENTERPRISES
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A SWITCH TO MONTHLY BILLING
This fall, AlexRenew residential customers
began receiving monthly bills for
wastewater treatment services. For the past
two years, bills were sent out quarterly. The
change was prompted by Virginia American
Water’s (VAW) decision to begin billing on
a monthly basis for the drinking water it
provides City residents. AlexRenew relies
on VAW water usage data to calculate its
customers’ wastewater treatment charges.
The switch will make it easier for customers
to better manage their household budgets,
ensure accurate statements, and detect
unusual water usage spikes that could be the
sign of a leak inside their homes.
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In July, AlexRenew Chief Executive Officer
Karen Pallansch was named President of the National
Association of Clean Water Agencies, a national
organization involved in all facets of water quality
protection.
AlexRenew CEO’s Karen Pallansch’s essay in The Value
of Water: A Compendium of Essays by Smart CEOs,
states that “more than sustaining life and helping to
grow the foods that nourish us, water and a reliable
water infrastructure fuel our economy, spur job growth
and help build stronger, healthier communities.”
ALEXANDRIA RENEW ENTERPRISES 2014
GIVING BACK THROUGH SUSTAINABILITY
RECLAIMED WATER|RENEWABLE ENERGY|REPLENISHED LAND
WATER
Cleaned 13.2 billion gallons of water
Removed 4.3 million pounds of
nitrogen, 660,000 pounds of phosphorus,
and 32.3 million pounds of sediment
LAND
Provided 21,300
wet tons of
biosolids to enrich
farmland in 15
Virginia counties.
RECLAIMED
WATER
Reclaimed 1.4 billion gallons
to help run our equipment
ENERGY
Produced 157 million
cubic feet of gas and
used 92% of it to help
operate our facilities
MAJOR UPGRADE,
MAJOR PROGRESS
AlexRenew’s State-of-the-Art Nitrogen Upgrade Program
(SANUP) is underway, on time, and within budget.
The project will be completed in late 2015.
The centerpiece of Alexandria Renew’s latest expansion will allow the
water resource recovery facility to remove 62 percent more nitrogen from
its treated water.
BIOLOGICAL REACTOR BASIN COMPLETED
The sixth and final Biological Reactor Basin (BRB) holds approximately four
million gallons of wastewater and specialized, safe microorganisms that
help clean the water.
CENTRATE PRETREATMENT FACILITY COMPLETED
The Centrate Pretreatment Facility (CPT) is the first designed and
separately constructed full-scale sidestream deammonification system
in North America. The CPT process uses ANAMMOX® bacteria that works
in tandem with other varieties of microorganisms to transform ammonia
into nitrogen gas that can be released safely into the atmosphere.
NUTRIENT MANAGEMENT FACILITY CONSTRUCTION UNDERWAY
The 18-million gallon Nutrient Management Facility (NMF) will help
AlexRenew better manage the biological treatment process that removes
nitrogen from used water. The NMF will feature a synthetic turf athletic
field built by AlexRenew on top of the tanks. The field will be available for
community use and run by the City’s Department of Recreation, Parks &
Cultural Activities. Construction will be completed in late 2015.
A RENEWABLE CONSTRUCTION SITE
Contractors carpooled
and saved over 7,000
miles of travel, 300
gallons of gas, and
2.9 metric tons of CO2
emissions.
Construction trailers
used high-efficiency
lighting, low flow toilets,
and energy-efficient
electronics.
92.6% of
construction waste
– 380 tons –
was recycled or salvaged.
THE SIGHTS AND SOUND OF PROGRESS
Last fall we began pouring concrete into the bottom of the Nutrient Management Facility (NMF) and then
started installing precast concrete panels for the wastewater holding tanks. Four tanks will be encased
in the NMF, each holding roughly 4.5 million gallons of wastewater. A backup generator for the NMF was
delivered to the site and set to provide power to the structure during power outages. The construction
site can be viewed any time on our webcam at www.alexrenewnmf.com.
MAKING THE INVISIBLE THE VISIBLE
FOUR MILE RUN PUMP STATION RECONSTRUCTION
AlexRenew operates four pump stations, which push wastewater toward its facilities off Eisenhower Avenue
to be treated. The Four Mile Run Pump Station, built in 1956, needs an update. Work on the pump station
began this year, and is slated to be completed in Summer 2016. The reconstruction and upgrades to the
facility include enhanced odor control and even better prevention of sewer overflows.
With help and direction from the Four Mile Run Restoration Task Force and the Arlandria Action Plan Advisory
Group, AlexRenew is working to “make the invisible the visible.” In 2016, the pump station will install learning
centers along its Commonwealth Avenue fenceline, so everyone walking by can learn more about Alexandria’s
water system.
MAINTENANCE REVITALIZATION
BOOSTS PRODUCTIVITY AND PERFORMANCE
Taking care of parts and equipment helps save money and time in the long run.
This year, AlexRenew revitalized its maintenance shop by:
• Updating its computerized maintenance management system;
• Developing metrics to track performance; and
• Implementing a five-step system to “sort, set-in order, shine, standardize,
and sustain” AlexRenew’s working shop.
INNOVATION IS
CREATING VALUE THROUGH GOOD IDEAS
Reduced Energy and Chemical Use Through Sidestream Deammonification
Alexandria Renew Enterprises is an innovator through its pilot program using ANAMMOX® bacteria.
We were the first in the nation designing and separately constructing a full-scale sidestream
deammonification system. Anammox bacteria converts ammonia and nitrite in wastewater into
safe nitrogen gas that will be released back into the atmosphere. The anammox-based system uses
significantly less energy and chemicals than conventional wastewater cleaning processes, thereby
providing significant cost savings—as much as 25% for energy and chemicals.
“Seed” Material for DC Water to
Result in Renewable Energy Source
As an active member of the water
community in the National Capital Region,
we assisted DC Water by providing
2.8 million gallons of digested biosolids for
seed material to start its anaerobic digester
process. These digesters will eventually
produce methane gas, which can be used
as an energy source—saving energy and
reducing greenhouse gas emissions.
DC Water at work on its upgrade in Washington, DC.
Sharing Knowledge:
Department of Commerce International
Water Issues Conference
In July 2014, we hosted the U.S. Department of
Commerce’s International Water Issues Conference.
The conference focused on global water topics, including
wastewater treatment, drinking water, fracking, new
technologies, bringing products to market, stewardship,
standards, regulations, and energy neutrality.
Hosting International Water Issues Conference.
Alexandria Renew Apprenticeship Program
TRAINING FOR CAREERS IN WASTEWATER
The Alexandria Renew Apprenticeship Program offers apprenticeships in individual occupations,
allowing apprentices to gain the education and experience necessary for success within the field
of wastewater treatment. The occupations are: Waste Water Systems Technician, Waste Water
Mechanic, and Control Systems Technician (Electrician).
All programs consist of related academic instruction and on the
job training, designed to complete simultaneously within two to
four years, depending upon the type of apprenticeship.
The Apprenticeship Program is administered by the AlexRenew
Human Resources department with support from the Fairfax
Public School System and Northern Virginia Community College
and is certified by the Division of Apprenticeship Training,
Virginia Department of Labor and Industry.
Dwayne Foreman says
that electrical work is
challenging, but it feels
great when he fixes an
electrical issue.
Ashley Richardson
appreciates the
opportunity to work on
all processes in the plant
at AlexRenew.
Two of our apprentices are Dwayne Foreman and Ashley
Richardson, who are grateful for their mentors at AlexRenew.
Dwayne Foreman has been with Alexandria Renew Enterprises
for 20 years, starting his career after graduating from high
school. Dwayne started in buildings and grounds, and moved to
maintenance and the warehouse. He is now in his fourth year
as a Control Systems Technician (Electrician) apprentice, and
his goal is to complete the program and get his journeyman’s
license, meaning he will become a certified electrician.
Ashley Richardson started at Alexandria Renew Enterprises in
2011. Prior to her career at AlexRenew, she was in the Navy,
in charge of maintaining the weapons on the ship, and after
leaving the Navy, she went to HVAC school. She was looking for a
place to do HVAC maintenance and found the Alexandria Renew
apprenticeship program. Ashley is now in her second year in the
apprentice program for Waste Water Systems Technician.
AlexRenew partners with the Urban Alliance
Foundation’s internship program, whose goal is
to empower young people in need to aspire, work,
and succeed through paid internships, formal
training and mentoring. L to R: Petrona Lopez,
Johnnie Wallace, AlexRenew Environmental
Health & Safety Manager, Jenny Melara, and
Fredis Naverrete.
CLEAN WATER,
HEALTHY ECONOMY
AL
N AT IO N M IC
ECO N O
R
& LABO OF
S
T
IM PA C E R
T
A
T H E W E C TO R
S
Y
U T IL IT
EX EC UT
Over 10 years, AlexRenew
will provide 440 direct and
indirect jobs and $830 million
in total economic output to our
community.
RT
IV E R EP O
The National Economic & Labor
Impacts of the Water Utility Sector
is available at
http://www.waterrf.org/
PublicReportLibrary/4566b.pdf
AlexRenew CEO Karen Pallansch at the Water Works! press conference on Capitol Hill.
L to R: Kevin Faulconer, Mayor, San Diego, Rep. Bob Gibbs, K. Pallansch, Rep. Tim Bishop,
Riki Hokama, President, National Assn. of Counties. Sen. Ben Cardin, Chair of the Environment and Public Works Water and Wildlife Subcommittee, also spoke.
According to a major economic study released in September, Alexandria
Renew Enterprises will create a projected 440 direct and indirect jobs over
the next decade with an accompanying $830 million in total economic
output for the Washington-Alexandria-Arlington Metropolitan Statistical
Area. The study was conducted by the California-based AECOM and
was co-sponsored by the Water Research Foundation and the Water
Environment Research Foundation.
AWARD-WINNING
Environmental Steward
PLATINUM PEAK PERFORMANCE AWARD
For the ninth consecutive year, the National Association of Clean Water Agencies
bestowed upon Alexandria Renew Enterprises its prestigious Platinum Peak
Performance Award for outstanding 100% compliance with its National Pollutant
Discharge Elimination System permit requirements.
AN EXTRAORDINARY ENVIRONMENTAL ENTERPRISE
The Virginia Department of Environmental Quality (DEQ) awarded AlexRenew
its top rating in environmental stewardship, recognizing the organization as an
Extraordinary Environmental Enterprise. There are only about 30 public agencies
and private companies throughout Virginia that have been awarded DEQ’s top
recognition. Among these 30 recipients, AlexRenew is one of only seven local
government-level entities to receive this award.
Ecological Study of Hunting Creek
In partnership with George Mason University (GMU), we are
conducting an ecological study of Hunting Creek, where the
water cleaned by AlexRenew is released. This study, which
began in 2013, will examine several components: water
quality, benthos and plankton monitoring, fish monitoring, and
bioavailability of micro-pollutants. The goal of these studies is to
provide baseline and ongoing trend analysis of the ecosystems
receiving treated effluent—and ultimately reclaimed water—
from the treatment facilities.
Hunting Creek at sunset.
44 YEARS OF EXEMPLARY SERVICE
Tribute to Ed Semonian
Alexandria Renew Enterprises Board Member and former Chairman Ed
Semonian retired in January 2014 after 44 years of exemplary service and
leadership. A native of the City, Mr. Semonian joined the then Alexandria
Sanitation Authority (ASA) in 1969 as a Board Member and was its chair for
31 years beginning in 1979. At a retirement ceremony at Alexandria Renew’s
campus, attended by Alexandria Mayor Euille, Mr. Semonian was presented
with a plaque honoring his service, and a conference room in Alexandria
Renew’s Administrative Building now bears his name.
ALEXANDRIA RENEW ENTERPRISES
GIVING BACK THROUGH SERVICE
HUNDREDS TOURED ALEXRENEW IN 2014, INCLUDING VISITORS FROM...
George Washington University|St. Mary’s Pack 301 Boy Scouts|ITT Technical College|Washington Latin Public Charter
School|Northern Virginia Community College Environmental Science Class|T.C. Williams High School Science, Technology,
Engineering and Math (STEM) Academy|St. Stephen’s and St. Agnes School|Cub Scouts|Alexandria Garden Club|Water
Environment Federation Leaders|Renmin University of China|Mid-Atlantic Biosolids Association|Smithsonian Institute
Educators|Embassy of Denmark|Federal Water Quality Association| George Washington Middle School|Mountain
Empire Community College
EARTH DAY: ARE YOU AN ECO-CITIZEN?
AlexRenew is a proud cosponsor of Alexandria
Earth Day, where it presents the Ellen
Pickering Environmental Excellence Award.
Ms. Pickering’s life was dedicated to the City’s
preservation and conservation. In 2014, the
winner was Upcycle Creative Reuse Center.
Located in Del Ray, it collects and redistributes
reusable material for art and learning
purposes.
ALICE FERGUSON POTOMAC
WATERSHED CLEANUP
AlexRenew employees volunteer every year
at the watershed cleanup. Since the cleanup’s
inception in 1989, volunteers have removed
more than six million pounds of trash from the
Potomac and its tributaries.
HOOFFS RUN CLEANUP
Clark-US and AlexRenew employees spent a
morning cleaning up Hooffs Run, a tributary
that runs past the Alexandria African
American Heritage Cemetery and through the
AlexRenew campus.
water
WORKS
We invited the Alexandria community
to enjoy a beautiful sunny afternoon in
September to learn more about how our
water system works.
FOR ALEXANDRIA
ALEXRENEW OPEN HOUSE
AlexRenew held its second annual open house,
featuring tours and hands-on exhibits showing
how the facility cleans water.
SHARING KNOWLEDGE AND SKILLS
Joining us at our open house:
• Alexandria Seaport Foundation
• City of Alexandria
• Clark-US
• Friends of Dyke Marsh
• Greater Cincinnati Water Works
• Land Design
• The Urban Alliance
• Virginia American Water
• VA Cooperative/Master Gardeners
REACHING THROUGH TEACHING
Darel Stevens, Team Lead, explaining how
electricity operates at a hands-on exhibit in the
AlexRenew laboratory. This year, AlexRenew
also participated in Earth Force, which teaches
students that the future of our environment is
up to all of us.
ALEXANDRIA RENEW ENTERPRISES
OUR CLEAN WATER
TIMELINE
1940s
Sewage flows
directly into
Potomac, a major
health hazard.
1800s
“State-of-the-art” sewer
system installed, carrying
both runoff and sanitary
sewers.
1948
Congress passes
Federal Water
Pollution Control Act.
1956
Plant goes into
operation,
treating sewage
24/7, 365 days a
year.
1952
Alexandria City Council
creates
City of Alexandria, VA
Sanitation Authority
(ASA), first Authority in
Virginia.
1970
First Earth Day.
1970s
Algae in the
Chesapeake Bay
create
“dead zones.”
1965
President Johnson
“hopes to make the
Potomac a model of
beauty.”
1972
Clean Water Act enacted.
ASA begins first upgrade
and expansion.
1971
VA’s Potomac
Embayment
standards limit
amount of pollution
in water discharges.
1987
Bay Agreement
signed to reduce
nitrogen,
phosphorus, and
sediment
in Bay.
1984
ASA completes
construction of
expansion and
upgrade to advanced
wastewater
treatment.
2005
VA issues regs
requiring greater
reduction of nitrogen
discharge from
wastewater treatment
facilities.
2012
On Earth Day, ASA
becomes
Alexandria Renew
Enterprises.
2002/2003
ASA upgrade
Initial operation of
2011
completed on
nitrogen system
Alexandria
City
full facility.
begins.
2003
Council approves
1999
Nitrogen
upgrade design.
ASA begins
discharge from
construction to
2009
plant reduced by
upgrade and meet
Work begins on State80%.
new state and regional
of-the-Art Nitrogen
standards to protect the
Upgrade Program
Chesapeake Bay.
(SANUP).
2014
AlexRenew receives
its ninth year
of best-in-class
continuous clean
water award.
STEADY AND STABLE FOR THE LONG TERM
AlexRenew Financials
Where does AlexRenew’s revenue come from?
Alexandria Renew has two major sources of revenue: sewage treatment charges paid
by customers, and reimbursement of a proportion of expenses from Fairfax County.
Revenues
Sewage treatment charges
$37,606,611
Fairfax County
Operating
10,816,400
Improvement, Renewal & Replacement
Total
2,184,600
50,607,611
Non operating Revenues
Investment income
283,272
Proceeds from debt
14,094,979
Sale of Property
1,000,000
Grants
8,075,005
Fairfax County Capital Project Contribution
41,901,391
Total
65,354,647
Total Revenues
$115,962,258
EXCELLENCE IN FINANCIAL REPORTING
For the third time, the Government Finance Officers Association of the United
States and Canada awarded AlexRenew with the Certificate of Achievement for
Excellence in Financial Reporting. The award is the highest form of recognition in
the field of governmental accounting and financial reporting.
What does AlexRenew’s revenue pay for?
$4,063,720
JOINT IMPROVEMENT, RENEWAL &
REPLACEMENT
Overhauling and maintaining critical
equipment, energy efficiency,
alternative energy generation,
information technology projects, and
sustainable infrastructure replacements
for our retail and wholesale customers.
$13,063,195
PERSONNEL SERVICES
Providing best-in-class
water professionals
for effective and safe
operations.
$11,536,574
DEBT PRINCIPAL AND INTEREST PAYMENTS
Paying back loans taken in previous years to
upgrade and maintain AlexRenew.
$4,039,177
ALEXANDRIA-ONLY PROJECTS
Overhauling and maintaining
facilities that provide service
only to City customers.
$2,225,072
OPERATIONS AND MAINTENANCE
Maintaining the facilties’ material
and equipment for retail and wholesale customers.
$1,660,137
CHEMICALS
Paying for chemicals
needed to support water
cleaning processes.
$70,496,761
JOINT CAPITAL IMPROVEMENTS
Constructing facilities that support
major programs for both retail and
wholesale customers.
$1,438,891
PROFESSIONAL SERVICES
Providing outsourced
services to support
AlexRenew’s core function
areas.
$3,224,653
UTILITIES
Costs for the natural gas, electricity
and water needed to operate the
plant.
$1,641,233
ARLINGTON SEWAGE DISPOSAL
Supporting the operations and
maintenance associated with the City’s
allocated capacity at the Arlington
County Water Pollution Control Plan.
$1,399,477
BUSINESS SUPPORT
Providing back-office
support and community
education and outreach.
ALEXANDRIA RENEW ENTERPRISES
1500 EISENHOWER AVENUE
ALEXANDRIA, VA 22314
WWW.ALEXRENEW.COM
703.549.3381
QUESTION ABOUT BILLS: 703.549.3383
FOLLOW US!
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TWITTER
@alexrenewceo