General Manager’s Report

June 21, 2017

Table of Contents

i

Customer Service Customer Service Improvement Actions ................................................................................. 1 HomeServe USA Update ......................................................................................................... 1 Contact Center Operations

Percent of Calls Answered Chart ......................................................................................... 2 Percent of Calls Answered Within 180 Seconds Chart ....................................................... 2

Delinquent Accounts Chart ...................................................................................................... 3 ePermitting Transaction Report ............................................................................................... 4

Infrastructure Water & Wastewater Permit Compliance ................................................................................ 5 Heavy Rains Result in Blowdown Event at Potomac WFP ..................................................... 5 Damaged Chemical Storage Tank Returned to Service ........................................................... 5 Potomac WFP Included in Emergency Demand Response for 2017 Season .......................... 5 Water Released from Brighton Dam Ahead of Rehabilitation Work ...................................... 5 Water Production Chart ........................................................................................................... 6 Wastewater Treatment Chart ................................................................................................... 6 Sewer System Overflows Chart ............................................................................................... 7 Basement Backups Chart ......................................................................................................... 7 Water Main Breaks / Leaks Reported by Age Chart ............................................................... 8 Water Main Breaks and Leaks Chart ....................................................................................... 8 Cumulative Water Main Reconstruction Chart ........................................................................ 9 Cumulative Water Lateral Lines Chart .................................................................................... 9 Cumulative Sewer Main Repair & Replacement Chart ......................................................... 10 Cumulative Sewer Lateral Lines Chart .................................................................................. 10

Financial Stewardship Budget Charts ......................................................................................................................... 11

Employee Matters Vacancies vs. Active Recruitments Chart .............................................................................. 13 Recruitment – April 2017 Average Time to Fill Vacancies Chart ........................................ 14 Recruitment – Cumulative Average Year-to-Date time to Fill Vacancies Chart .................. 15 Voluntary and Involuntary Separations Chart ....................................................................... 15 Eligible Retirements Chart ..................................................................................................... 16 Retirement Eligibility Projections Chart ................................................................................ 16

Stakeholders

Supplier Diversity and Inclusion (SDI) SDI Outreach ..................................................................................................................... 17 SDI Dashboard ................................................................................................................... 19

Events and Community Outreach Painting of Damascus High School Mascot Delayed ........................................................ 21 Wastewater Treatment Plants (WWTP) Host Tours ......................................................... 21 External/Internal Communications ................................................................................... 21 Community Events ............................................................................................................ 21 Major Upcoming Events .................................................................................................... 22

Customer Service Delivering Excellent Customer Service is a strategic priority for WSSC. As such, transforming WSSC to a customer-centric culture is a key initiative for fiscal year 2017. Following is the Customer Service team report of customer service improvement actions taken during the month of May 2017.

1. Customer Service Strategy: Benefit: Sustained delivery of outstanding customer experience by designing experience-focused value propositions for each customer type.

Customer Service leadership attended the first in-person Customer Feedback Community (CFC) that was held on June 1, 2017 with the GM/CEO and Communications staff.

2. Process Improvements: Benefit: Consistency and increased accuracy of information provided to customers.

Coordinated an employee-driven process improvement team and received recommendations on new workforce management strategies and tactics for the Customer Service Department.

3. Tools/Technology: Benefit: Customer has access to information 24/7 that is consistent, accurate and easier to navigate.

A. CC & B core training and method adoption workshops completed for 23 WSSC project members.

HomeServe USA Update

In July 2016, WSSC launched an agreement with HomeServe USA as part of our ongoing commitment to customer service. Our agreement with HomeServe USA provides customers with an opportunity to purchase optional, affordable service plans that will protect them against unforeseen and costly repairs in the event of a failure of the water or sewer line on their property. The program also helps us to educate and inform homeowners about responsibility for water or sewer line repairs. Below are HomeServe USA enrollment statistics for fiscal year-to-date for month ending April 30, 2017:

Customers Enrolled*

Total Contracts*

Customer Satisfaction

Claims/ Repairs

Completed

Average Job Cost

Customer Savings

58,230 81,147 100% 1107 $926 $974,614

* Does not include customers/contracts within the initial 30-day review period.

1

Customer Service Contact Center Operations

In May 2017, the Contact Center answered 95% (60,642) of the 63,827 calls received. The average monthly answer rate to-date this fiscal year is 93% (57,511 calls answered). This compares to 92% (45,827) for the same period in FY 2016 and 87% (46,146) in FY 2015.

This chart reports the percent of calls answered within 180 seconds. The goal is to answer 80% of incoming calls within 180 seconds (80/180). In May 2017, the Service Level was 90/180.

2

Customer Service

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Government 678,764.72$          587,260.17$          774,746.41$          3,077,113.96$      3,354,192.66$      643,067.52$          548,265.87$          642,607.98$          708,814.23$          430,937.59$          973,631.20$          ‐$                             

Commercial 1,688,180.80$      1,800,584.91$      1,687,909.54$      1,608,155.60$      1,631,563.15$      1,791,883.07$      2,038,772.94$      2,032,829.73$      2,328,503.39$      2,260,136.83$      2,398,475.71$      ‐$                             

Multi-Family Units 844,742.97$          827,701.26$          664,378.71$          547,041.44$          605,680.31$          572,447.41$          554,437.11$          575,411.79$          610,434.51$          550,955.15$          614,375.43$          ‐$                             

Residential 9,350,472.83$      8,869,472.85$      9,097,299.14$      8,989,582.34$      9,134,027.24$      10,291,186.03$   9,501,627.22$      8,978,744.29$      9,230,353.90$      9,364,983.19$      8,975,965.22$      ‐$                             

FY 2017 TOTAL 12,562,161.32$   12,085,019.19$   12,224,333.80$   14,221,893.34$   14,725,463.36$   13,298,584.03$   12,643,103.14$   12,229,593.79$   12,878,106.03$   12,607,012.76$   12,962,447.56$   ‐$                             

FY 2016 TOTAL 11,766,199.89$   10,698,900.93$   10,287,896.07$   11,735,211.44$   13,304,937.69$   12,427,399.13$   13,036,253.11$   12,916,485.23$   11,526,016.13$   11,687,434.72$   11,253,627.78$   12,819,380.65$  

FY 2015 TOTAL 9,989,683.50$      9,354,541.08$      9,589,551.52$      9,566,084.14$      9,114,465.72$      10,507,512.64$   10,989,394.04$   10,892,059.19$   9,985,262.71$      10,239,542.18$   10,445,070.18$   11,499,519.96$  

3

Customer Service

4

Infrastructure Water & Wastewater Permit Compliance

There were zero violations for both drinking water quality permits and wastewater effluent permits in the month of May. Heavy Rains Result in Blowdown Event at Potomac Water Filtration Plant (WFP)

Heavy rains, that began on May 5, 2017, led to high river flows and a sustained increase in raw water turbidity and solids loading at the Potomac WFP. This high intake loading rate over a period of several days exceeded the ability to pump the basin solids to the Solids Facility for dewatering and hauling and ultimately impacted basin effluent/filter influent turbidity. This represents the first such blowdown discharge event at the Potomac WFP since February 2016 and the fourth such occasion when the plant was allowed to discharge solids back to the river since the lodging of the Potomac Consent Decree in October 2015. Damaged Chemical Storage Tank Returned to Service

Contractors have completed major repairs to one of four 30,000-gallon coagulant storage tanks at the Potomac WFP. The tank suffered significant damage during a spill that occurred on March 2, 2017, resulting from the failure of the tank drain line. During the spill event, the tank rapidly lost nearly 18,000 gallons of coagulant causing a partial inward collapse until a rupture occurred relieving the pressure. Potomac WFP Included in Emergency Demand Response for 2017 Season

The Potomac WFP is ready to participate in the PJM Emergency Demand Response for the 2017 season that began on June 1, 2017. As in the past, the Potomac WFP may be asked to reduce its electric demand to a firm service level of 6,000 kW during periods of high electric demand. These reductions resulted in Electric Capacity payments of $110,000 for Emergency Demand Responses in 2016. Water Released from Brighton Dam Ahead of Rehabilitation Work

Crews began releasing water from the Triadelphia Reservoir on May 15, 2017 to lower the reservoir level by over 13 feet (from 350.3 feet down to 340 feet) by June 1, 2017 to support the rehabilitation work set to begin in June. This release raised the Duckett Reservoir eleven feet (from 273.7 feet to 284.7 feet). All water-related activities (boating/fishing) and some recreational activities (picnic areas) at the reservoir have been closed to the public until the project is completed. This project is expected to last two years.

5

Infrastructure

6

Infrastructure

7

Infrastructure

There were 60 breaks and leaks reported in the month of May. The data shows that 53% of the breaks and leaks reported, occurred in pipes 25-50 years old.

8

Infrastructure

9

Infrastructure

10

Financial Stewardship

Budget

11

Financial Stewardship

CFO Monthly Status Report – April 2017

See attached report.

12

Employee Matters Vacancies vs. Active Recruitments

There were 161 total vacancies across the Commission at the end of April 2017. Seventy-three percent (118 vacancies) of these positions are actively being recruited.

Note: The Human Resources Office places a position ‘on hold,’ with manager notification, for various reasons. Most often, positions are placed on hold due to inactivity. Hiring managers are given 30 days to act upon candidate lists provided for their jobs. The position is placed on hold until the hiring manager is ready to begin the process.

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunTotal Vacancies 94 136 141 145 135 150 152 157 159 161Active Recruited Vacancies 79 87 91 83 89 89 81 91 116 118Recruited Vacancies On Hold 2 1 4 2 1 0 0 2 2 1Not Recruited Vacancies 13 48 46 60 45 61 71 64 41 42% Active Recruited Vacancies 84% 64% 65% 57% 66% 59% 53% 58% 73% 73%% Recruited Vacancies On Hold 2% 1% 3% 1% 1% 0% 0% 1% 1% 1%% Not Recruited Vacancies 14% 35% 33% 41% 33% 41% 47% 41% 26% 26%FY 17 Authorized Positions 1782 1782 1782 1782 1782 1782 1782 1782 1782 1782 1782 1782

FY 2017 Vacancies vs. Active Recruitments

13

Employee Matters Recruitment – April 2017 Average Time to Fill (TTF) Vacancies

The average time to fill the twenty-one positions below was 39 days, which includes an average of 36 days with hiring managers, an average of three days with HR, as well as the time it takes for an applicant to make a decision to accept or decline an offer.

14

Employee Matters Recruitment – Cumulative Average Year-to-Date Time to Fill Recruited Vacancies

Twenty-one positions were filled in the month of April 2017. The cumulative average time-to-fill was 55 days.

Voluntary and Involuntary Separations

In April 2017, there were twelve separations comprised of five retirements, five voluntary separations and two involuntary separations.

15

Employee Matters Eligible Retirements

Retirement Eligibility Projections

As of April 2017, approximately 46% of WSSC employees are eligible to retire in five years, including full and early retirement.

Eligible Now Eligible Within 1 Year Eligible Within 3 Eligible Within 5 Full Retirement 58 88 167 273Early Retirement 484 497 506 472Full Retirement % 3.6% 5.5% 10.4% 16.9%Early Retirement % 30.0% 30.8% 31.4% 29.3%Total WSSC Workforce

Ap

ril

2017

1612

16

Stakeholders Supplier Diversity & Inclusion (SDI) Outreach

WSSC participated in the following outreach events in an effort to increase supplier/vendor participation in WSSC’s contracting opportunities and processes:

May 4, 2017 - Attended the Washington Business Journal Minority Business Leaders

Secrets to Success event in Washington, DC. A diverse group of business leaders shared insights from their experiences and discussed how they were able to navigate their way to success (Approximately 50 attendees).

May 9, 2017 - Co-hosted the Prince George’s County & MBE Certification Training with the Prince George’s County Maryland Supplier Development & Diversity Division (SDDD). This training provided attendees with information about the SDDD Certification process and requirements and WSSC’s SLMBE Program (Nine attendees).

May 10, 2017 - Attended and exhibited at the 2017 Summit of the Mid-Atlantic Region Minority Business Development Agency (MBDA) Advanced Manufacturing Center at the Horseshoe Casino in Baltimore, Maryland. The summit was held to support the launch of the new Mid-Atlantic Region MBDA Advanced Manufacturing Center and to provide stakeholders with a forum to do business-to-business networking (Approximately 125 attendees).

May 11, 2017 - Attended the Minority Enterprise Advocate (MEA) Magazine Women of Leadership and Power Award Gala at the Walter E. Washington Convention Center, in Washington, D.C. The SLMBE Director was awarded the Women of Leadership & Power Award at the event (Approximately 300 attendees).

May 12, 2017 - Attended and exhibited at the Maryland Washington Minority Companies Association (MWMCA) 14th Annual Spring Breakfast Meeting/Business Showcase Expo in Baltimore, Maryland (Approximately 1,300 attendees).

May 12, 2017 - Co-hosted WSSC’s “How to Do Business” event. The Chief Procurement Officer and Senior Leadership Team gave presentations and Staff Offices exhibited and facilitated workshops during the event (Approximately 150 attendees).

May 16 and 18, 2017 - Hosted its monthly internal/ external web-based compliance system training workshops, via classroom and webinar (Nine attendees).

May 16, 2017 - Attended the 2017 National Asian American and Pacific Islander (AAPI) Business Summit in Washington, DC. The purpose of the summit was to celebrate AAPI business success and address issues facing AAPI firms across the nation in the areas of access to capital, contracts and global markets (Approximately 250 attendees).

May 16, 2017 - Attended the Clean Water Partnership Mentor Protégé event in Largo, Maryland. The meeting provided an overview of the Mentor Protégé Program, Contractor Development Program and the Supportive Services Development Program (Approximately 30 attendees).

17

Stakeholders

May 17, 2017 - Attended the May Institute for Supply Management (ISM) Meeting in Hanover, Maryland. This meeting focused on Leading Successful Change by Engaging People in Systematic Continuous Improvement (Twenty-five attendees).

May 21 - 24, 2017 - Attended the Institute for Supply Management (ISM) 2017 International Conference. The conference gave attendees the opportunity to learn, share and network with the best and brightest minds in supply management (Approximately 4,000 attendees).

May 25, 2017 - Hosted monthly “Understanding the Appendix A for the MBE/SLBE/SLMBE Programs and the Good Faith Efforts (GFE) Guide” workshop webinar. This web-based training provided attendees with information about the following: “Appendix A” section of WSSC’s solicitations; information about the SLMBE Programs; how to do business with WSSC; and how to navigate WSSC’s solicitations to ensure the SLMBE preferences and participation goals/requirements are addressed.

18

WSSC SLMBE Dashboard MAY 2017

Contracting Area ^Goal M/WBE$**M/WBE%**

FYTD MBE $ WBE $ Majority $Total Contract

Payments

A/E Services 24% 13,676,410$ 33% 13,676,410$ -$ 28,399,379$ 42,075,789$

Construction Services 13% 69,271,411$ 22% 69,271,411$ -$ 245,583,352$ 314,854,763$

Goods and Services 33% 37,988,870$ 30% 30,375,150$ 7,613,720$ 88,595,596$ 126,584,466$

Professional Services 23% 19,966,697$ 38% 15,636,583$ 4,330,114$ 32,271,416$ 52,238,113$

Totals 140,903,388$ 26% 128,959,554$ 11,943,834$ 394,849,743$ 535,753,131$

^Goal represents the MBE Utilization Aspirational Goal **M/WBE includes Certified-MBE and WBE firms (displayed for reporting purposes only.)

The Total Contract Payments FYTD is $535,753,131 of which $33,354,968 is FYTD M/WBE validated Subcontract Payments. These validated M/WBE

Subcontract Payments have been subtracted from the Majority Contract Payments and added to the M/WBE Prime Contract Payments ($107,548,420) to

ensure that they are not double counted. The Majority Contract Payments depicted in the table above have been adjusted to reflect the subtraction. The following equation has been applied to the Total Contract Payments to determine the M/WBE percentage of Contract payments:

M/WBE$ (excluding Subcontract Payments) + Majority$ = Total Payments. The Total M/WBE$/Total Payments = Total M/WBE%.

Contracting Area ^Goal M/WBE$** MWBE%* WBE $ MBE $ Majority $Total Contract

Awards

A/E Services 24% 18,164,142$ 27% -$ 18,164,142$ 50,268,083$ 68,432,225$

Construction Services 13% 42,994,921$ 25% -$ 42,994,921$ 129,505,565$ 172,500,486$

Goods & Services 33% 100,155,536$ 41% 60,097,123$ 40,058,413$ 142,289,416$ 242,444,952$

Professional Services 23% 21,027,769$ 44% 6,611,688$ 14,416,081$ 26,417,587$ 47,445,356$

Totals 182,342,368$ 34% 66,708,811$ 115,633,557$ 348,480,651$ 530,823,019$

^Goal represents the MBE Utilization Aspirational Goal

*MBE and WBE Award Dollars include Prime and Subcontract Award Dollars. Majority Award Dollars are adjusted to exclude the amount proffered to

Subcontractors.

Note: Majority Prime Award Dollars - Subcontract Award Dollars proffered to M/WBE = Majority$. M/WBE Prime Award Dollars + Subcontract

Award Dollars proffered to M/WBE = M/WBE$

Note: numbers are rounded to the nearest whole dollar

Summary - MWBE Total Contract Award Dollars*

Note: M/WBE$ (excluding Subcontract Payments) + Majority$ = Total Payments. The Total M/WBE$/Total Payments = Total M/WBE%

Fiscal Year-To-DateSummary - Total Contract Payments to MWBE Firms

MWBE TOTAL CONTRACT PAYMENT AND AWARD DATA

Fiscal Year-To-Date

Note: numbers are rounded to the nearest whole dollar

FISCAL YTD M/WBE VALIDATED SUBCONTRACT PAYMENTS: $10,036,982 in A&E Payments; $12,477,247 in Construction Payments; $7,670,974 in Goods and Services Payments; and $3,169,765 in Professional Services Payment

MBE Subcontract Awards FYTD: $14,477,342 in A&E Awards; $24,535,401 in Construction Awards; $3,885,449 in Goods & Services Awards; $2,113,795 in Professional Services Awards

19

WSSC SLMBE Dashboard MAY 2017

Contracting Area *Total MWBE% WBE $ MBE $ Majority $Total Contract

Payments

95% -$ 840,757$ 44,070$ 884,827$

29% 6,727,409$ 5,130,496$ 28,703,728$ 40,561,633$

14% 250,068$ 103,806$ 2,101,680$ 2,455,554$

22% 13,035$ 425,114$ 1,556,411$ 1,994,560$

29% 6,990,512$ 6,500,173$ 32,405,889$ 45,896,574$

*Total MBE% and MBE$ includes MBE and WBE Payments

*Total MWBE% WBE $ MBE $ Majority $Total Contract

Awards

100% -$ 8,614,235$ -$ 8,614,235$

80% -$ 9,868,512$ 2,500,000$ 12,368,512$

82% -$ 14,407,709$ 3,254,731$ 17,662,440$

56% 420,000$ 1,851,104$ 1,771,622$ 4,042,726$

82% 420,000$ 34,741,560$ 7,526,353$ 42,687,913$

*Total MBE% and MBE$ includes MBE and WBE Awards

Apr-17 May-17 FYTD 2017SLMBE % of

YTD Registered

Total Vendors 86 95 734 100%

Total SLMBE Vendors 54 36 419 57%

Total MBE Only Vendors 47 26 349 48%

Total SLBE Only Vendors 9 11 132 18%

2 1 62 8%

Note: numbers are rounded to the nearest whole dollar

Note: numbers are rounded to the nearest whole dollar

Total Combo MBE/SLBE Vendors

Total Contract Awards to SLBE Firms

SLBE TOTAL CONTRACT PAYMENT AND AWARD DATA

A/E Services

Professional Services

Fiscal Year-to-Date

Registered Vendors

Note: Majority refers to approved SLBEs that have not been identified as either a MBE or WBE. The SLBE Program is a race/gender neutral Program.

WSSC SUPPLIER PORTAL SYSTEM (FORMALLY:CENTRALIZED BIDDER REGISTRATION (CBR) SYSTEM)

Construction Services

Goods & Services

Contracting Area

Totals

Construction Services

A/E Services

Note: Majority refers to approved SLBEs that have not been identified as either a MBE or WBE. The SLBE Program is a race/gender neutral Program.

Goods & Services

Professional Services

Totals

Fiscal Year-To-DateTotal Contract Payments to SLBE Firms

The Total Prime and Subcontract Payments to SLBE firms FYTD for May 2017 is $45.8M

The Total Prime and Subcontract Awards to SLBE firms FYTD for May 2017 is $42.2M

CBR vendor registration officially began on December 3, 2007. Effective November 1, 2015, WSSC launched the WSSC Supplier Portal System which will be the new Bidder Registration System. As of May 31, 2017, the total number of registered firms were 5,223.

PLEASE NOTE: The numbers reflected above are tentative and are subject to change

20

Stakeholders

Events and Community Outreach

Painting of Damascus High School Mascot Delayed

The painting of the Damascus High School’s Swarmin’ Hornets logo on the Damascus Water Tank has been delayed to July, because of wet a windy weather conditions. Wastewater Treatment Plants (WWTP) Host Tours

On May 16, 2017, Parkway WWTP staff hosted a tour for twenty-four students and teachers from Spectrum Homeschool. On May 25, 2017, Western Branch staff hosted a tour to coordinators for the Chesapeake Bay Foundation, who are looking for ways to help teachers bring wastewater treatment concepts into their classrooms.

External/Internal Communications

Rate structure – Public outreach efforts (Meetings: 6/5, 6/6, 6/19,6/20) o Direct mail o PSAs o Radio ads o Social media o News releases/Media alerts o Live streaming

Brighton Dam Rehabilitation Project awareness campaign Sunfish Release Program in partnership with PGCPS Office of Supplier Diversity and Inclusion awareness campaign How to Do Business with WSSC outreach and promotion Construction Project Community Meetings – 6 Diversity Awareness

o Caribbean History Month o LGBTQ Pride Month

H2O Connect – Continue internal awareness of team building activities Community Events

May 2017 o Educational outreach programs: 16 o Career days: 2 o Community fairs: 7 o Science fair or project judging: 1 o WWTP Tours: 2 o Sponsored Events: 3

21

Stakeholders

o Major Events: Montgomery County GreenFest – May 6 Children’s Water Festival – May 10 & 11 (450 students) Girl Scouts Wonders of Water Journey Day – partnered with DC Water for event

at Blue Plains – May 13 Advancing Tomorrow’s Leaders in STEM (ATLAS) – partnered with MDBio

Foundation – May 23 Employee Appreciation Rodeo – May 30

Over 800 employees participated!

June 2017 o Educational outreach programs: 2 o WWTP Tours: 1 o Community Fairs: 5 o Sponsored Events: 2 o Major Events: Family Fun on the Watershed – June 16 LGBTQ+ Pride Month Internal Lunch and Learn – June 22 Caribbean American Heritage Month internal celebration – June 28

Major Upcoming Events

o WSSC Employee Service Awards – July 27 o YMCA Thingamajig – July 27

22