MISSION

T o provide the traveling public with a safe, cost effective, and unique driving experience across the scenic

Chesapeake Bay.

February 28, 2014 The Honorable Terence R. McAuliffe Governor, Commonwealth of Virginia Office of the Governor Post Office Box 1475 Richmond, Virginia 23218 Dear Governor McAuliffe: We are pleased to submit the Annual Report on the operation of the Chesapeake Bay Bridge and Tunnel District for the year January 1 through December 31, 2013, in accordance with the provisions of Paragraph 16, Chapter 714 of the 1956 Acts of the General Assembly. The economy, while still sluggish, has provided many challenges and opportunities for the District in 2013. The following pages include information on the District’s traffic volumes, revenue bonds, financial status, operations, maintenance, promotional activities, and community involvements. We thank you for the opportunity that you afforded staff to provide you and Secretary Layne with a tour of the facility on February 4, 2014. We look forward to you being the keynote speaker for our 50th Anniversary celebration of the opening of the Chesapeake Bay Bridge-Tunnel on April 15, 2014. If you should have any questions concerning this report or the operation of the Bridge-Tunnel, please let us know and we would be most happy to discuss them with you. CHESAPEAKE BAY BRIDGE AND TUNNEL COMMISSION Frederick T. Stant, III, Chairman

Celebrating Fifty Years and Tunneling Towards the Future ~ 1964-2014

COMMISSION MEMBERS FREDERICK T. STANT, III CHAIRMAN CITY OF VIRGINIA BEACH THOMAS B. DIX, JR. VICE CHAIRMAN ACCOMACK COUNTY JENNIFER LEE SECRETARY-TREASURER CITY OF PORTSMOUTH JOHN W. SALM, III, P. E. NORTHAMPTON COUNTY PAUL R. HEDGES CITY OF CHESAPEAKE JOHN W. WHITE NORTHAMPTON COUNTY

COMMISSION MEMBERS

B. WAYNE COLEMAN CITY OF NORFOLK

CHRISTOPHER G. STUART CITY OF HAMPTON

DEBORAH CHRISTIE

ACCOMACK COUNTY

THOMAS W. MEEHAN, SR. CITY OF NEWPORT NEWS

JOHN F. MALBON

COMMONWEALTH TRANSPORTATION BOARD

JEFFREY B. HOLLAND EXECUTIVE DIRECTOR

CHESAPEAKE BAY BRIDGE AND TUNNEL DISTRICT

32386 LANKFORD HIGHWAY

CAPE CHARLES, VIRGINIA 23310

757/331-2960 FAX 757/331-4565

WWW.CBBT.COM

PROFILE

F or fifty years, the Chesapeake Bay Bridge-Tunnel has captured worldwide attention as a modern engineering wonder and an important East Coast travel convenience. Crossing over and

under open waters where the Chesapeake Bay meets the Atlantic Ocean, the Bridge-Tunnel provides a direct link between Coastal Virginia and the Delmarva Peninsula (Delaware plus the Eastern Shore counties in Maryland and Virginia), and saves 90 miles from the journey between Virginia Beach and points north of Wilmington, Delaware, as compared to the I-64/I-95 corridor. The Chesapeake Bay Bridge and Tunnel Commission is the governing body of the District. The Commission consists of eleven members who are appointed by the Governor of the Commonwealth of Virginia. One member represents the Commonwealth Transportation Board and the remaining ten members represent the localities within the District. The District is comprised of six cities: Virginia Beach, Norfolk, Portsmouth, Chesapeake, Hampton, Newport News; and the two Eastern Shore counties of Northampton and Accomack. Following its opening on April 15, 1964, the Bridge-Tunnel was selected “One of the Seven Engineering Wonders of the Modern World” in a worldwide competition that included more than one hundred major projects. In addition, in 1965, it was distinguished as “The Outstanding Civil Engineering Achievement” by the American Society of Civil Engi-neers. In 2000, the Bridge-Tunnel was recognized by Structural Engineer magazine as one of the “Seven Structural Engineering Wonders of America for the 20th Century.” In 2007, the Chesapeake Bay Bridge-Tunnel was named one of Virginia’s “Top Seven Manmade Wonders” in an online poll conducted by the Richmond Times-Dispatch. The scenic Chesapeake Bay Bridge-Tunnel continues to be ranked #1 in Virginia’s Top 25 Attractions most frequently visited by East Coast travelers.

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TRAFFIC

T he Chesapeake Bay Bridge-Tunnel (CBBT) provides the only direct north/south route

across the lower Chesapeake Bay. Traffic increased overall in calendar year 2013.

Traffic for seven of the twelve months in 2013 exceeded those in 2012. Out of the top

100 traffic days in the CBBT’s history, eight occurred in 2013.

Traffic totaled 3,559,748 vehicles in 2013, an increase of 50,144 over 3,509,604 vehicles

recorded in 2012. Cars and light trucks accounted for 90.2% of the total traffic or 3,211,410 vehicles,

an increase of 1.3% versus 2012. Heavy trucks totaled 333,538 vehicles or 9.4% of total traffic, an

increase of 2.6% over 2012. Buses totaled 14,800 vehicles or 0.4% of the total traffic, and registered

an increase of 2.0% over 2012. On page vii of the attached financial report is a comparison of traffic,

by classes, on a monthly and yearly basis for 2013 versus 2012. A review of traffic changes since

inception of the facility is indicated in the following graph:

2

G ross toll revenue for cal-

endar year 2013 totaled

$45,991,727, an increase

of $683,867 or 1.5% above gross toll

revenue received in 2012. The Dis-

trict began accepting credit card pay-

ments in the toll lanes for customer

convenience in 2012. Cash, E-ZPass, scrip, and credit cards are accepted for the payment of tolls.

E-ZPass utilization for 2013 totaled 46% with revenues of $45,991,727 as compared to 43.3% with

revenues of $45,307,860 for 2012. In calendar year 2013, the District incurred total fees of $450,947

for processing electronic payments as compared to $472,302 during the previous year. As a result,

net toll revenues for 2013 totaled $45,540,780 versus $44,835,558 in the prior year.

The District’s other revenues include leases on the Little Creek property, the operation of the

Chesapeake Grill Restaurant and Virginia Originals Gift Shop, and miscellaneous income. Other

revenues in 2013 totaled $1,149,985 versus $1,159,595 in 2012, a decrease of $9,610 or 0.8%.

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REVENUES

BONDS

A s of December 31, 2013, the District had three outstanding series of bonds totaling

approximately $101,780,000 par value with an average debt service interest rate of

4.37%. During 2013, $6,675,000 par value of bonds matured.

On September 12, 2012, Fitch Ratings affirmed our “A-” bond rating on the $44,405,000 in

outstanding General Resolution Revenue Bonds, Refunding Series 1998.

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At the end of 2013, the District’s outstanding debt portfolio had a ratio of 57% variable rate

debt and 43% fixed rate bonds. An interest rate exchange agreement between the District and

Deutsche Bank synthetically fixes the rate of interest on all of the variable rate bonds. Since 2004, the

District’s strategy to lower borrowing costs through the utilization of variable rate debt in combina-

tion with interest rate hedges has proven very beneficial.

Parallel Thimble Shoal Channel Tunnel

Phase II -A

I n 1960, $200 million of revenue bonds were sold by the Chesapeake Bay Ferry Commission,

subsequently the Chesapeake Bay Bridge and Tunnel Commission, to finance the original

crossing of the Bridge-Tunnel project. These bonds were secured by a pledge of toll revenues

from the project and no federal, state, or local tax dollars were used for the construction of the Bridge

-Tunnel nor were the bonds secured by the full faith and credit of the Commonwealth of Virginia.

The Bridge-Tunnel opened to traffic on April 15, 1964 as a 20-mile two-lane highway toll facility

and is located in arguably the most tumultuous marine environment of any infrastructure in the world.

In 1987, as traffic continued to increase, as safety problems mounted, and as difficulties were

encountered in performing maintenance operations under traffic, the Commission began giving

consideration towards expanding the facility from the existing two lanes to a four-lane facility.

In-house studies were undertaken and it became obvious that there would not be enough funding,

through both bond proceeds and capital project investments on hand, to afford the construction of the

two additional tunnels; however, it was felt by the Commission that it would be prudent to move

forward with four-laning of the facility with the additional tunnels to be constructed at a future date

when economically feasible.

Parallel Crossing

I n 1989, the Commission approached the General Assembly of Virginia for the approval to parallel

the facility. It was unanimously concluded by the General Assembly that an additional two lanes

would be needed on the Chesapeake Bay Bridge-Tunnel by the year 2000, to remedy the “no detour

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route” issue, to accommodate growing maintenance and safety needs, and future traffic growth. It

was also determined that tunnels could not be financed through revenue bonds at that time and would

have to be constructed as part of the Parallel Crossing, Phase II Parallel Tunnels Construction. The

study concluded that the Parallel Crossing should proceed in four-laning the remainder of the

project. Upon completion of the 1990 Session of the General Assembly, the Governor signed the

bill, which had been unanimously passed in both the Senate and the House, to authorize the Chesa-

peake Bay Bridge and Tunnel Commission with the authority to move forward with the projects to

parallel the existing crossing of the Chesapeake Bay Bridge and Tunnel.

From 1991 to 1995, the District engaged consulting engineers, traffic engineers, and financial

advisors to design the project; obtain necessary permits; and to develop financial models for Phase I

of the parallel crossing, which included the entire facility except for the two tunnels. Phase II, two

additional tunnels, would be constructed at a later date.

From 1995 to 1999, the construction of the parallel crossing, Phase I, took place and included

major rehabilitation on the trestles and bridges of the original crossing. The Phase I total construction

cost was estimated to be $275,000,000 but actually cost approximately $260,000,000.

Capital Planning History and Toll Rate Schedule Adjustments

I n order to make construction of parallel tunnels economically feasible through the increased accu-

mulation of monies in the General Fund and to enhance capacity to issue revenue bonds, the

Commission, at its May 2004 meeting, approved a new toll rate schedule, which commenced June 1,

2004, and was projected to generate a $13.06 average toll per vehicle. The Capital Projects Plan

adopted in July 2004 included an estimated parallel tunnel price tag of $900,000,000 to be able to

start both Thimble and Chesapeake Channel Tunnel construction in approximately 2015, to maximize

economies of scale.

In anticipation of the 2004 toll rate increase, the District hosted two citizen information

meetings, which were lightly attended (twelve individuals attended the Virginia Beach meeting and

three individuals attended the Eastern Shore meeting), and there were no negative comments on the

proposed toll increase or the necessity of parallel tunnels. The Commission agreed to continue to

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provide a discount to customers making a round-trip crossing within 24 hours.

The $17 round-trip toll, effective June 1, 2004 through December 31, 2013, is a 15%

discount off of the 1991 toll rates and a 6% discount off of 1982 toll rates. In contrast, Con-

sumer Price Index inflation has increased 133% in 29 years since 1982, which would equate to a $21

one-way car toll today. The CBBT tolls compare favorably to similar crossings. The most geo-

graphically similar saltwater crossing in the U.S. is the 17-mile Cape May - Lewes Crossing which is

spanned by the Cape May - Lewes Ferry in the Delaware Bay. Tolls range from $38 to $54 one way

for a passenger car and two occupants, depending upon travel season with elongated crossing and

embarkation times. The most similar fixed crossing in the world is the ten-mile-long Oresund Bridge

Tunnel, which connects Skane, Sweden and Copenhagen, Denmark. The Oresund, unlike the CBBT,

receives substantial public funding and charges a one-way cash passenger car toll of $55.83.

Importantly, traffic surveys were conducted in 2005 to assess the percentage of out-of-state

vehicles that utilize the Chesapeake Bay Bridge-Tunnel. These surveys indicated that over fifty

percent of the total toll revenues are paid by customers who reside outside of the Commonwealth of

Virginia.

At its May 2010 meeting, the Commission awarded a conceptual study and cost estimate for

the Thimble Shoal Channel Parallel Tunnel to Jacobs Engineering Group. The scope of this en-

gineering project was to prepare a conceptual design on the tunnel to be in compliance with the most

recent NFPA recommended guidelines for fire egress, ventilation, and electrical components, which

had changed substantially. Prior to the award of this study, the most recent $1.3 billion parallel

tunnels (both tunnels) cost estimate had been developed in 2007, which had increased $ 400 million

from the estimate that was derived by staff in 2004. Also an important objective was to save design

costs by conceptually designing only one of the two tunnels since the tunnel designs will be very

similar. Thimble Shoal Channel Design was selected as it is the more expansive and conservative of

the two design envelopes; Thimble Shoal Channel Tunnel will be marginally longer and deeper. The

District works with the Virginia Port Authority in monitoring future shipping requirements into

Hampton Roads ports and has scoped the depth envelope of the Thimble Shoal Channel parallel

tunnel to allow for the most conservative Thimble Shoal Channel depth of 67 feet, with 3 feet of

safety factor rating or “over dredge” to allow for a net 70 feet of clearance with 10 feet of tunnel

7

cover. Correspondingly, Chesapeake Channel Tunnel will be scoped at a depth of 55 feet with 3 feet

of over dredge, even though the existing channel is only maintained at 45 feet.

The final estimate that was prepared as a result of the completed conceptual design resulted in

an estimated cost for Thimble Shoal Parallel Tunnel of $958,500,000 in Fiscal Year 2021 dollars.

Given this magnitude of cost, the Commission, at its May 2011 meeting, decided when it adopted its

capital projects capacity model that the parallel tunnel construction will be completed in two separate

phases. Thimble Tunnel would be completed first by 2025, and thereafter there will be an approxi-

mate 30-year period before Chesapeake Channel Tunnel is completed. This bifurcated phased

approach assured that a more conservative capacity model will be embraced for tunnels completion,

which will result in both reduced borrowing costs due to better ratings from rating agencies and less

need for larger toll increases on a staged basis for the facility.

In 2012, it became quite apparent that the project marketplace was experiencing deflation in

the United States as a result of the “Great Recession” and a real lack of mega projects in the market-

place. The Commission was also sensitive to the compression of interest rates that were well below

the conservative rates that had been utilized in all sensitivity analyses that had been conducted from

2004 through 2012. In September 2012, the Commission met for a strategic planning session to

assess any potential plans such as delivery models or financial plans that may accelerate the Thimble

Shoal Parallel Tunnel Project. It was decided by the Commission that additional due diligence would

be completed that specifically resulted in additional modeling and sensitivity analyses, additional

delivery models, and additional traffic engineering assessments, as relates to levels of service in the

tunnels and travel and time analyses across the facility.

The District’s financial advisors at Public Financial Management re-evaluated the existing

financial models for Thimble Shoal Parallel Tunnel construction including scenarios that introduced

the usage of alternative delivery models and federal and state financing programs that had not been

considered previously. In total, 21 different financial models were created that incorporated various

toll rate structures, delivery models and financing methods.

In prior financial models, the District had always assumed a traditional Design-Bid-Build

approach for Thimble Shoal Parallel Tunnel delivery and that financing would consist of a sizable

8

contribution from the District’s General Fund, with the remainder provided by toll revenue bonds. In

order to adhere to the prior construction timeline starting in July 2021, PFM’s financial models

indicated that a toll rate increase of 10% would be necessary in January 2014, followed by additional

10% increases every five years thereafter. The model required the issuance of over $699 million in

toll revenue bonds and total debt service over the life of the transaction would equal $2.15 billion.

Seeking to accelerate the construction start date and to minimize construction costs, debt

service costs and toll rates for customers, the District evaluated alternatives to improve all the factors

in the financial models. The restructuring of the plan of finance to include a TIFIA loan offered the

largest improvement to the plan. Due to the rural nature of the project, the District assumed a TIFIA

loan of 49% of eligible costs, or approximately $423.9 million. By utilizing TIFIA, the project start

date could be advanced from July 2021 to July 2017, saving construction costs of $123.1 million. In

order to save even more time and money, the District assumed that the project would be procured

using a Design-Build method rather than the traditional Design-Bid-Build method. The alternative

delivery method is estimated to save an additional 8.4%, or approximately $77.7 million, of the

projects costs plus allow the construction to start another year earlier in July 2016.

Beyond the construction costs savings generated by advancing the project start date, TIFIA

generates enormous debt service savings over the life of the outstanding debt. The financial models

show that total debt service in the restructured plan of finance is reduced to only $1.49 billion, a

savings of $662.6 million compared to the model without TIFIA or the Design-Build procurement

method.

Given the substantially positive implications of the aforementioned analyses, the Commission

determined at its next Strategic Planning Session in May 2013, that the Parallel Thimble Shoal

Channel Tunnel Project should be accelerated and that an average 10% toll increase be effective on

January 1, 2014, to be able to fund the project in an accelerated manner, contingent upon public infor-

mation sessions being held to glean customer and public comment regarding the toll rate schedule

adjustment and the acceleration plan.

Public information sessions were conducted during July and August of 2013 in four locations:

Accomack County, Northampton County, the City of Norfolk (Southside Hampton Roads), and the

City of Hampton (Peninsula). There were 186 total attendees, 76 of whom provided a written

comment. Sixty-two of the 76 comments were positive public comments that supported the accelera-

tion and overall toll rate schedule adjustment, which results in round trip tolls that would be $18 for

passenger cars commencing in January 2014, as compared to $17 for passenger cars prior to the

change. Twelve of the 76 comments were against the toll rate schedule increase and two of the

comments were neutral. After the substantially positive responses were gleaned, the Commission

resolved at its August 2013 meeting to adopt the revised toll rate schedule to be effective January 1,

2014. This revision also includes four new rate discounts that were not provided previously. The

most significant of which is a $5 fare for passenger vehicles that make 30 one-way trips, or 15 round

trips, in a 30-day period. Importantly, all discounts require the use of E-ZPass, effective January 1,

2014.

Below is a matrix that compares toll rate per mile of the CBBT to other marine crossings in

the area. Toll rate per mile is the accepted industry standard for facility pricing comparisons.

Design of the Thimble Shoal Channel Parallel Tunnel commenced in Fiscal Year 2014, which

would translate to the tunnel construction commencing in Fiscal Year 2016, after the environmental

NEPA process completion and successful procurement, and the tunnel will be opened to traffic in the

Fiscal Year 2020 time frame.

9

The sources required for construction of parallel tunnels will be obtained through the sale of

revenue bonds and proceeds from a TIFIA loan sourced from the Federal Highway Administration, as

no federal, state, or local tax dollars are utilized by the District, as well as through the proceeds of

investments and cash reserved for special projects. As the Chesapeake Bay Bridge and Tunnel

District is an independent political subdivision of the Commonwealth of Virginia and is not a state

agency, additional bonds of the District will not impact the Commonwealth nor will they imply any

obligation by the Commonwealth.

Parallel tunnels are perceived at times by the public to be necessary only due to vehicular de-

mand increases not being able to be met by the existing two lane tunnels with contra-flow. That vari-

able is only one of many reasons. As has been jointly studied and was earlier referenced with the

Joint Legislative Audit Review Commission, unanimously passed by both houses of the General As-

sembly and signed by the Governor in 1990, as well as third party traffic engineering firms, the paral-

lel tunnels are needed for the following reasons:

a) Unlike all other Hampton Roads marine crossings, there is no alternative route in

the event of (1) a vehicular accident or breakdown in the tunnel, which occurs on

average 25 times per year, or (2) a tunnel structural and/or mechanical interruption

given the 50 year age of the existing tubes. As is evident, if one of the two tunnels is

lost for operation, the facility is shut down. Thankfully, if the operation of either

trestle span or bridge is lost, we can defer traffic to the alternate span with contra-

flow to keep the facility open.

b) The existing tunnels are being maintained to have a 100-year life expectancy. By

the time Chesapeake Channel Parallel Tunnel is completed in approximately 2056, the

existing Chesapeake Channel Tunnel will be 96 years old.

c) There is an average of 338 different lane closures per year in the tunnels due to

oversized escort loads, which increases the toll paying customers crossing time by

15-25 minutes.

d) There is an average of over 140 different elongated tunnel lane closures per year,

which add up to over 1,300 hours per year on average over the last three years, due to

10

ENGINEERING

AND MAINTENANCE

ordinary maintenance work in the tunnels. This work is performed under full lane

closures with police escorts due to the unsafe environment for customers, employees,

and contractors. These hours do not include any projects that are performed in the

tunnels by contractors from time to time.

e) Without parallel tunnel completion, by the year 2030, 693,800 vehicles would

experience delays annually on the CBBT that would result in a cumulative 83,400

annual vehicle hours of delay due to the aforementioned reasons.

f) Projected worsening of levels of service provided to the toll paying traveling public

in the tunnels, primarily in May through September. By the year 2025, it is modeled

that 73% of seasonal customers (May 18 – September 10, each year) would experience

a level of service D or worse in Thimble Shoal Channel Tunnel.

g) Preparation for growth in customer volumes, both passenger and commercial,

which are estimated to grow conservatively at approximately 50,000 vehicles per year.

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O n April 1, 2013, Jacobs Engineering Group (Jacobs), the District’s consulting engineers,

submitted its Fiftieth Annual Report on the annual in-depth inspection and review of the

District’s operations and facilities. This inspection is conducted annually as required by

Section 504 of the District’s Revenue Bond Resolution Covenant. The inspection of the facility was

performed using inspection procedures that followed the general recommended guidelines and regu-

lations of the National Bridge Inspection Stand-

ards (NBIS) as defined in the Code of Federal

Regulations, the Federal Highway Administra-

tion (FHWA), and the Virginia Department of

Transportation (VDOT). In the Annual Report,

Jacobs commented that “The District uses and

sustains a very thorough and comprehensive

maintenance program that has been implemented and enhanced in a timely manner over the years.

Sound planning and foresight is utilized in deciding when to repair or replace the various aging and/or

deteriorating facility components. The entire facility continues to be in generally good condition.

This is especially noteworthy in consideration of the advancing age of many portions of the facility

and its location in a harsh marine environment. That many facility components have outlived their

expected lifespan is strong evidence of the success of the maintenance program and the dedication of

the District personnel responsible for its operation. Continuation of current maintenance and opera-

tion procedures is firmly recommended.”

Condition level assessments are completed every year by Jacobs Engineering, and the results

are an integral part of the District’s Audited Financial Statements, which are enclosed with this

report. The Commission continues to aggressively maintain the Chesapeake Bay Bridge-Tunnel’s

infrastructure in accordance with its infrastructure preservation policy, which states that at all times it

will maintain 90% of the facility at a generally good condition level or better (a rating of 7 out of a 9

point scale). Noticeable degradation in any one component area triggers the need for an infrastructure

repair, replacement, or renovation.

The Commission approved its Capital Projects in the District’s Long-Term Capital Projects

Plan, which extends to 2032. The large projects completed in 2013 are identified hereinafter.

A project to replace the roof of the Administration Building’s Maintenance Wing was

awarded to Block Roofing in the amount of $93,416.

Two Ventilation Building fan motors were removed

and reconditioned by EMS, which included new bearings,

inspection of insulation, reinsulated windings, and testing,

for a cost of $11,460. The District reinstalled the motors

with a crane purchased from David Round Company for

$8,480. The total project cost $19,940. A boiler was re-

placed in Ventilation Building 2 by Bay Mechanical for

$35,551. Additional parts for replacement were purchased

from Robert Hayes Co., Inc. for $1,245, bringing the total

project cost to $36,796. Skylights were replaced in all four Ventilation Buildings and North and

12

South Plazas by Roof Engineering Corporation for a total of $12,742. Roof Engineering Corporation

repaired and replaced soffits and fascia at North and South Plaza for a total cost of $43,465.

A bridge painting project, which entailed painting all steel portions of all bridges and trestles,

as well as the finger pier at Little Creek, was awarded to the

low bidder, Saffo Contractors, Inc., in September 2011. The

project was completed in October for a total of $11,167,600.

The project estimate on this prior to procurement was approxi-

mately $20,000,000.

A project to repair the fender system at North Channel Bridge, northbound, was awarded to

Precon Marine for $797,000 on July 10, 2012. The Notice to Proceed was issued on July 25, 2012,

with the project placed on temporary shutdown from July 25, 2012 to October 22, 2012, due to the

lead time required to obtain materials. The tem-

porary shutdown was extended from October 23,

2012 until March 28, 2013, due to winter weath-

er on the Chesapeake Bay and the waterborne

nature of this project. There were two change

orders totaling $6,275 to replace multiple broken

bolts and inserts on the piers. Total contingen-

cies were $396. This project was completed in

October for a total of $803,671.

The District replaced a pickup truck including radio and push bumper for $22,519, and

replaced four police vehicles, including light bars, push bumpers, cameras, and newly-designed decals

for $110,815. A TMA for Unit 650 was ordered from Whitlock Brothers for $17,948.

13

The larger current and ongoing projects approved in the Long-Term Capital Projects

Plan include the following:

An underwater inspection of the entire facility is required every five years and one-fifth of the

structure is inspected each year. The 2013 underwater inspection of the substructure units of Trestle A

-NB, Trestle A Prime, northbound, and Trestle A, southbound, was awarded to Jacobs at a cost of

$646,100 on April 9, 2013. The project is approximately 50% complete with $261,599 paid to date.

This project recurs annually to keep the District in compliance with the Commonwealth and FHWA

Bridge Inspection Criteria. In addition,

this recurring project assures the

District is meeting the internal require-

ments specified in its infrastructure

preservation policy.

The design of a project to repave Thimble and Chesapeake Tunnels and the open approach

roads to the tunnels was awarded to Jacobs for $222,400 on January

10, 2012. With the design complete, the project was awarded to

Conrad Brothers in the amount of $4,986,343 at the Commission’s

April 9, 2013 meeting. Under roadway repairs to the north end of

Thimble Tunnel are complete. The contractor expects to be complete

with the south end of Chesapeake Tunnel soon. To date, $732,767 has

been spent on this project.

A project to replace the heat pump at Virginia Originals Gift Shop and Chesapeake Grill

Restaurant, on the CBBT’s southernmost island, is in process. A heat pump was ordered from

Damuth Trane for $25,329, and crane service will be required for $500, bringing the total projected

cost to $25,829.

Also at Virginia Originals and Chesapeake Grill, it became necessary to replace the

restaurant’s exhaust fans. Two Acme exhaust fans were purchased from Shultz and James, Inc. for

$6,933. Bay Mechanical will furnish and install registers and ductwork for $2,356; Virginia Air

Balance and Control Corporation will test and balance the fans for $800; and this project is estimated

14

to cost a total of $10,089.

Specifications for painting the tunnel ventilation systems were received from Jacobs in

December 2013. Invitations to bid this project were sent out on

January 21, 2014, and bids are due to be received on March 4,

2014. Invitations to bid for replacing windows in the Ventilation

Buildings were sent out in February 2014. Relays were ordered

from JoKell to replace the obsolete overload relays for exhaust

and blower fan motor controls. They will be replaced as they fail.

The total amount spent on this project is $2,026.

A replacement van was ordered from Capital Chevrolet for $20,595, with the radio being

provided by Motorola for $2,194, for a total project cost of $22,789. Also, projects are in place to

replace the tunnel flush truck and the scrub truck tank. Purchase of the flush truck is pending due to

the procurement process; however, the radio for this

vehicle was ordered from Motorola for $2,489.

Replacement of the scrub truck tank will soon be

complete, as the tank is on order with Carter

Machinery, and Carter also painted the boom,

pedestal, basket, and everything from the cab back

to match the cab for a total of $45,430. The scrub

truck tank should be received by March 1, 2014.

A project to replace four Navigation-Aid generators in CNC cabinets is still in progress. The

District purchased two Nav-Aid generators from Bay

Diesel for $34,160, and they have been placed into

service at CNC 8 and CNC 18. Two more generators

are on order with Bay Diesel for $34,160, for a total

project cost of $68,320. A project to replace traffic

signal LED lights across the facility is now pend-

ing. Approximately seven years ago, the traffic

control lights were upgraded to use lower power

15

16

LED fixtures. The primary advantage of the upgrade was a 90% reduction in the maintenance

required to keep the signals operational. The pixels in the fixtures are failing in accordance with the

anticipated product life. Parts will be purchased to replace the fixtures with the greatest usage.

A project to replace the roof and paint the Production Building at Little Creek continues. The

painting of the building was completed by Bob Terricino Painting Company for $18,150. An Invita-

tion to Bid for the roof replacement will be sent out in February 2014.

Trestle pavement crack sealing work progresses with a quote received from Sherwin

Industries, Inc. for product cost with the final price depending on quantities. All southbound trestles

are complete. Trestles A and B, northbound, are complete. Trestle C is partially complete. The

project is 75% complete with $38,292 paid to date.

The Maintenance Division’s Vehicle Shop is receiving a new ventilation system. The exhaust

system was ordered from Bay Mechanical for $29,800 and it is anticipated that it will be installed by

the end of February 2014.

A project to repair the southbound cable tray is

on schedule. Townsend Garage is fabricating 800 pair

of cable tray support connectors for a total of $12,771.

The installation of the plates will be put out to bid.

The lift face variable message sign power

supplies to Lanes 7, 8, 9, and 10 are being replaced.

The power supplies have been received and installed at a cost of $22,925. The original five-year

warranty period expired in January 2013, and the manufacturer phased the line of power supplies out

of service for a more reliable brand. Numerous replacements of the power supplies were required

under warranty demonstrating the need to upgrade these to a more reliable model for ease of mainte-

nance and public safety.

The radio and all components for the replacement of the base radio on Island 1 have been

ordered and received for a total cost of $18,826. This was the third and final District base unit to be

replaced. Repair for this model of base radio was no longer available. Funds were also allocated to

replace the associated remote control units located on the islands and facility buildings. The 22

remotes were in excess of ten years old and were also considered end of life. The final portion of

these funds was used to move the data link connection of the District radio away from the aged

SCADA system that is currently being replaced. Cabling and equipment was purchased to utilize the

existing fiber backbone for this link between the tunnel repeaters and the base repeater.

The Sign Control and Data Acquisition (SCADA) system refurbishment was designed by

Jacobs Engineering for $311,000. This project was awarded to Wellington Power Corporation on

July 16, 2013, in the amount of $13,880,000. Wellington is currently installing conduit and junction

boxes in the Ventilation Buildings, Plazas, and Administration Building. In addition, cable tray

installation on Trestle A, northbound, is nearly complete with cable tray installation on Trestle B,

northbound, commencing. The new platform and consoles have been installed at North Plaza. The

total amount spent to date is $2,275,026.

The new toll rate schedule went into effect on January 1, 2014, as previously stated. The

E-ZPass customers are receiving the discounted rate and the reporting upgrades are in the final stages.

As a part of this upgrade, funds were allocated to replace the individual toll lane controllers that were

six to seven years old. During this upgrade, the hardware interconnections were redesigned to reduce

the number of computers required to operate the toll system by 12, thus providing reduced operating

costs and increased reliability of the system. New toll lane controllers and interface extensions to the

toll booths were purchased for $60,307 to complete this first phase. The second phase of this project

is almost complete and will cost $179,531, for a total projected cost of $239,838.

A project to replace toll gate equipment is

underway. Four traffic gates have been ordered

from The Revenue Markets, Inc. in the amount of

$13,142. Due to age and wear, several of the toll

gates have required replacement in the past year.

This model of gate is no longer available from the

manufacturer. In order to maximize life of the

remaining gates, the two toll lanes that have the

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greatest traffic volumes will receive a new style of gate. This will allow the District to utilize

existing spare parts to maintain the older style gates and to optimize the availability of all toll lanes

for traffic throughput.

As related to the Parallel Thimble Shoal Channel Tunnel, the Commission awarded Jacobs a

Supplemental Agreement for the Mapping of Existing Conditions, in the amount of $191,000.00.

Jacobs is 7.9% complete and $15,037 has been spent, to date. Also at the Commission’s October

meeting, Jacobs was awarded a Supplemental Agreement for a Geotechnical Investigation in the

amount of $4,785,200. Jacobs is 0.4% complete and $20,260 has been spent, to date.

In November, the Commission also authorized a Request for Proposal for a Strategic Advisor

for the Parallel Thimble Shoal Tunnel Project. Request for Proposal invitation letters and advertise-

ments were mailed and posted on November 14, 2013. A pre-proposal conference was held on

December 10, 2013, at 10:00 a.m., with 21 people in attendance representing fifteen companies. An

Addendum letter was sent on December 16, 2013, answering all questions that were asked.

A collection of firms led by the engineering firm of Moffatt & Nichol was named Strategic

Advisor for the construction of the Parallel Thimble Shoal Channel Tunnel on the Chesapeake Bay

Bridge-Tunnel on Wednesday, January 22, 2014.

Headquartered in Long Beach, California with operations throughout North America, Europe,

Latin America and the Pacific Rim, Moffatt & Nichol is a leading global infrastructure advisor and

engineering design firm specializing in the planning and design of facilities that shape our coastlines,

harbors and rivers as well as an innovator in the transportation complexities associated with the move-

ment of freight.

The proposal team that was awarded as a result of this solicited procurement process will be

managed by the Norfolk, VA office of Moffatt & Nichol. This team also consists of the following:

Arcadis, an international company which provides consulting, design, engineering and

management services in the fields of infrastructure, water, environment and immersed

tunnels;

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OPERATIONS

D uring 2013, the Operations Division rendered assistance to 416 customers who experi-

enced some type of difficulty with their vehicles while crossing the facility. The Police

Department also issued 4,949 traffic summonses with 38 summonses issued for driving

under the influence. Additionally, the department handled three felony arrests during the calendar

year 2013.

During 2013, 20 reportable vehicular accidents occurred on the facility, which involved seven

personal injuries and no fatalities, and represents a decrease of seven accidents when compared with

27 accidents in 2012. As a result of the 20 accidents, estimated vehicle damage totaled $152,800, and

damage to District property totaled $39,200.

The Operations Division continues to work diligently to increase security throughout the

District. As a result, the Operations Division continues to attend meetings with personnel assigned to

the U. S. Coast Guard Marine Safety Office, the U. S. Navy Criminal Intelligence Services, and the

FBI concerning matters of potential terrorist activities.

The Chesapeake Bay Bridge-Tunnel Police

Department, in coordination with the Department of

Homeland Security (DHS), conducted a Visible Inter-

modal Prevention and Response (VIPR) Operation to

enhance security on and around this facility, which has

been labeled by DHS as a Critical Infrastructure. Ten

Pennoni Associates, Inc., a multi-discipline engineering and design consulting firm

specializing in bridge and highway engineering;

Nossaman LLP, a law firm with experience with TIFIA applications and project devel-

opment finance; and

Ernst & Young, a financial advisory firm with extensive experience in closing TIFIA loans

for public and private sector borrowers.

20

other state and federal agencies participated in these operations. There were

no explosives found, with only minimal delays to the traveling public.

Continuing law enforcement education included having a Corporal

attend an Internal Affairs Seminar; a Lieutenant attended a Core Disaster Life

Support Course; one Sergeant attended a class entitled, “Becoming an Even

More Effective Leader;” three Police Lieutenants attended a Reasonable

Suspicion training class; one Sergeant and two Police Officers attended a seminar entitled, “Illicit

Tobacco: Trafficking Patterns & Organized Crime;” and one Sergeant attended an FBI First Line

Supervisors’ Training Class. Additionally, the Chief of Police attended the Virginia Association of

Chiefs of Police Conference.

One Corporal attended a TASER Legal Seminar, as well as an ASP Instructor Certification

Seminar, and eight District Police Officers received their TASER Certification Training.

Additionally, seven District Police Officers received their TASER/ASP Recertification Training.

The Police Department is vigilant in identifying drivers under the influence of alcohol, and a

Police Lieutenant and a Police Officer attended a DUI Training Conference, and five Police Officers

were recertified as Breath Alcohol Operators.

The District’s Virginia Criminal Information Network (VCIN) terminal enables the District’s

Police Department to perform its own criminal background checks with the Department of Motor

Vehicles (DMV) without having to rely on the assistance of other police departments. During 2013, a

Corporal received Instructor Recertification; 16 Police Officers received recertification training for

the VCIN terminal; and a Master Police Officer received initial certification training for the VCIN

terminal.

The Chesapeake Bay Bridge-Tunnel Police Department conducted three Law Enforcement

In-Service Schools, which were attended by a total of 21 District Police Officers, 19 Accomack

County Deputies, 14 Northampton County Deputies, six Chincoteague Police Officers, two Cape

Charles Police Officers, three Onley Police Officers, two Onancock Police Officers, one Parksley

Police Officer, and one Bloxom Police Officer.

21

The CBBT Police Department continues to monitor and enforce speed limits on the facility,

and sixteen Police Officers received their Radar/Lidar Recertification training and testing. Addition-

ally, two Police Officers received Radar/Lidar Certification training.

Six District Police Officers attended a Firearms Requalification Course, and two Police

Officers attended Firearms Instructors’ Recertification training. Additionally, three Lieutenants, five

Sergeants, two Corporals and sixteen Police Officers received Firearms Familiarization and

Qualifications training during calendar year 2013.

One Corporal and two Police Officers received their General Instructor Recertification

Training. One Police Corporal attended a “Fundamentals of Crash Investigation” training class.

Eighteen Emergency Crew Workers and twenty Toll Collectors attended Customer Service Work-

shops entitled, “Star Service.”

The Chesapeake Bay Bridge-Tunnel offers travelers and birding enthusiasts the opportunity

to observe birds and waterfowl from its four

manmade islands. The Bridge-Tunnel's habitat of

concrete, steel, asphalt, and rocks located in open

water, makes an inviting rest stop for birds during

their spring and fall migrations. Birds and waterfowl

commonly seen on or near the Bridge-Tunnel

manmade islands include Northern Gannet, Brant,

Harlequin duck, Peregrine Falcon, Little Gull, King

Eider, Red-breasted Merganser, American Oystercatcher, Black-tailed Gull, and many others. During

2013, twenty bird watching tours were conducted.

The Chesapeake Bay Bridge-Tunnel District offers a driver's assistance program for

customers with a phobia of heights, bridges, tunnels, etc. By making arrangements in advance, the

Police Department will arrange for an employee to drive a customer's personal vehicle across the

Bridge-Tunnel. This service is provided to pre-empt an unsafe customer incident from occurring due

to any phobia which may present itself when driving across the facility. This service is offered to

customers traveling in an automobile, van, SUV, or pickup truck at no additional cost to the

22

FINANCE AND MARKETING

T he District continues to promote the Chesapeake Bay Bridge-Tunnel with advertising and

public relations through cooperative advertising and promotional efforts with surrounding

localities, the Coastal Virginia Tourism Alliance, the Virginia Tourism Corporation, and

the Virginia Hospitality and Travel Association. As a result of these efforts, response was made to

21,994 individuals requesting literature and information on the Chesapeake Bay Bridge-Tunnel and

surrounding areas. In addition to requests made by individuals for literature, more than 188,000

pieces of bulk mail (promotional brochures and toll schedules) were shipped to individual businesses

for display in their brochure racks. Website inquiries remained strong with 475,765 sessions

recorded in 2013.

The Eastern Shore Southern Gateway Welcome Center, located within the North Toll

Plaza Rest Area and operated by the Eastern Shore of Virginia Tourism Commission, continues to

thrive and is now an official “State Certified” welcome center. With this distinction, it will carry

more regional brochures and will see a cost savings in the distribution of the Eastern Shore Travel

Guide in all Virginia Welcome Centers. The travel ambassa-

dors, comprised largely of volunteer staff led by Welcome

Center Manager Allan Burns, actively engage the visitors when

they come into the Center in order to determine their vacation

preferences and to convert them from “travelers” to “visitors,”

as they guide them to the many Eastern Shore attractions and

amenities. A total of 110,888 visitors were welcomed during

the 2013 calendar year, a 0.7% increase over visitation in 2012.

More than 500,000 visitors have been welcomed since the

Welcome Center opened their doors in August 2009.

customer. However, customers must make arrangements in advance for this service. During 2013,

the Operations Division assisted 286 customers by driving them across the facility due to phobias,

age, or other concerns.

23

The Virginia Beach Visitor Counter,

which is located within the footprint of Vir-

ginia Originals on the Bridge-Tunnel’s southern-

most island and staffed by the City of Virginia

Beach, also continues to grow in popularity

with our travelers. In 2013, more than 35,000

guests were assisted by Virginia Beach ambassa-

dors, providing information to travelers that

were headed to Coastal Virginia, which includes

not just Virginia Beach but also the cities of Norfolk, Portsmouth, Hampton, Newport News,

Chesapeake, Isle of Wight, and Williamsburg. Since opening in July 2010, they have assisted

more than 136,000 travelers with directions, reservations, and travel plans.

As has been the practice for many years, the District again donated funds to Eastern Shore

Rural Health Service, Inc., which in turn are used to purchase scrip toll tickets for local residents who

are approved for medical toll assistance to travel across the Chesapeake Bay for medical reasons.

This Medical Tolls Program has benefited many Eastern Shore residents over the past twenty-one

years.

In 2010, the Educational Toll Program was developed to assist students commuting across the

Chesapeake Bay Bridge-Tunnel for the purpose of furthering their post-secondary education. This

program is a partnership between the Chesapeake Bay Bridge-Tunnel and the Eastern Shore Com-

munity College, who administers the Educational Toll Program.

The District established a Wellness Committee to promote a healthier work environment for

all employees. Initiatives included seminars on will and estate planning, fundamentals of financial

planning, as well as biometric screenings. The Wellness

Committee continues to promote new and innovative re-

sources for employees to better themselves. The District’s

Fitness Room, established in 2012, continues to be a draw

for health-conscious employees. Additionally, a free flu

shot clinic was held in October for all District employees.

24

The District, working in conjunction with the American Red Cross Mid-Atlantic Region, con-

ducted three successful blood drives during the year and

collected a total of 71 units of blood. The District con-

tinues to participate in the Double Red Blood Cell Tech-

nology, a process that is the most efficient, donor-

friendly method of collecting the blood components

most frequently needed by patients in our community.

The District continues to participate in area Job

Fairs, as well as Career Days that are hosted by local schools and Chambers of Commerce on Virgin-

ia’s Eastern Shore. Through its partnership with the Coastal Virginia Tourism Alliance and in

support of National Tourism Week, the District and the Eastern Shore Tourism Commission

participated in “Thank a Visitor Day” at the Norfolk International Airport.

Since 1987, the Chesapeake Bay Bridge-Tunnel has participated in the Special Olympics

Torch Run. Designed to provide police officers an opportunity to volunteer with Special Olympics in

communities where they live and work, the Torch Run is their signature event. The Special

Olympics’ “Flame of Courage” was

carried over more than 2,000 miles

of Virginia’s roadways to Richmond

to open the largest state competition

for athletes with disabilities. On June

5, six District Police Officers repre-

sented the Chesapeake Bay Bridge-

Tunnel as they participated in the final

leg of the race down the Eastern Shore of Virginia, running the final mile on the south side of the fa-

cility and passing the torch to awaiting Officers in Virginia Beach. Efforts for this year’s event

involving the Bridge-Tunnel netted over $1,184 for the Special Olympics.

Each year, District employees and Commission members participate in the Northampton

County Department of Social Services’ “Angel Tree” Christmas program, as well as a food and

clothing drive that benefits the Eastern Shore Foodbank. Through our efforts, 30 angels, from new-

born to age 11, were provided with needed clothing items and toys. Non-perishable food items and

25

$140 in monetary donations were collected for the Foodbank.

The District continues to develop and publish a travel

events calendar that highlights events up and down the East

Coast and throughout Coastal Virginia. Annual Tide Tables are

also published in-house for distribution to anglers on the south-

ernmost island. A tailored E-ZPass brochure was also created

for dissemination to our travelers that have questions not only

about how the electronic toll collection system works, but also

about the changes to the CBBT toll rate schedule and E-ZPass

discounts.

Throughout the year, tours of the facility were

provided to various school groups and associations,

including members of LEAD Hampton Roads, Virginia

Beach Rotary, a delegation from South Korea, travel

writers, and local newspaper reporters. The tours continue

to be very well received and the participants leave with a

vast amount of knowledge regarding the District, its

mission, general operations, and maintenance.

The District continues to work with local

news media and travel writers, as well as

Virginia Tourism Corporation. Several FAM

(familiarization) tours were held throughout the

year in an effort to publicize and promote the

Chesapeake Bay Bridge-Tunnel, as well as

Virginia’s Eastern Shore to various markets.

The District also participated with Virginia

Tourism Corporation in the local “rollouts” of

the Statewide Tourism Plan.

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The Chesapeake Bay Bridge-Tunnel began accepting

E-ZPass in 2007, and a temporary sales office was established at

the CBBT to enroll customers in the electronic toll collection

system. This temporary office was closed in February 2008;

however, CBBT personnel continued to provide assistance to all

E-ZPass customers by answering questions, troubleshooting

accounts, solving problems, and opening and closing accounts.

In April 2013, the CBBT was able to further assist its customers

by offering “On-The-Go” transponders for purchase in the

Administration Building. Then, in preparation of toll rate

changes and discounting that would require the use of E-ZPass

on this facility, the CBBT opened a satellite office at the Eastern

Shore Chamber of Commerce building in Melfa, Virginia, on November 1. In 2013, the District

assisted more than 3,200 customers with their E-ZPass accounts and sold more than 2,100

transponders at its two locations. More than 45% of the District’s customers are utilizing E-ZPass

in the toll lanes. Transponder retail partners that have been integral in the marketing process on

Virginia’s Eastern Shore include Rayfield’s Pharmacies, H. W. Drummond and H & H Pharmacies.

The District continues to maintain and improve its website. The downloadable iPod tour of

the Chesapeake Bay Bridge-Tunnel continues to be popular with its visitors. To further enhance its

communications with travelers, the CBBT went live with its Twitter account, @FollowTheGulls, in

March 2013. Travelers that “follow” the CBBT may stay connected and informed of up-to-date

traffic and weather conditions on the facility, as this social platform is used to disseminate infor-

mation regarding wind restrictions, potential delays, or other incidents that may impact travelers.

District employees continue to support the Eastern Shore of Virginia’s United Way campaign.

Employees pledged $13,212 to this year’s campaign, “Uniting the Shore…One Person at a Time,”

thus providing valuable support to community organizations and non-profit agencies.

Virginia Originals LLC, operated by Chris and Kellson Savvides of Virginia Beach, success-

fully completed their third full calendar year of the lease for the restaurant and gift shop facilities on

the CBBT’s southernmost island, known as One Island on the Bay. The facilities were completely

renovated in the spring of 2010, and re-opened in early July 2010, under the name of Virginia

COMMISSION

27

Originals and Chesapeake Grill. Virginia

Originals LLC continues to focus on

providing food and retail products that rep-

resent the Commonwealth and their venue

and offerings continue to be well received

by the

traveling

public. In 2013, the District received $234,513 from the lease of

the establishment.

The District purchased property at Little Creek in 1995, to

be used as a staging area for the construction of the Parallel Cross-

ing Project, and Phase I of the Project was completed in 1999. The property on Little Creek Harbor

is now being leased to several tenants and is producing excellent income for the District. In 2013,

income from leases of the Little Creek property totaled $813,557. The four tenants include Marine

Spill Response Corporation, $381,314; Precon Marine, $277,360; TransAtlantic Lines, $133,607; and

Chesapeake Bay Tower Associates, $21,276.

T he members of the Chesapeake Bay Bridge and Tunnel Commission have worked

diligently during 2013 in administering the affairs of the District in the best interest of the

bondholders and the traveling public. The term of Gregory L. Duncan, representative

from Accomack County, expired on May 14, 2013. We were pleased that Deborah Christie and

Thomas W. Meehan were appointed to the Commission as representatives from Accomack County

and the City of Newport News, respectively.

In January, the following officers were elected by the Commission to serve the term beginning

March 1, 2013, and ending February 28, 2014: Aubrey L. Layne, Jr., Chairman; Thomas B. Dix, Jr.,

Vice Chairman; and Frederick T. Stant, III, Secretary-Treasurer. Aubrey L. Layne, Jr., the outgoing

Commission Chairman, resigned from the Commission on

January 12, 2014, to assume his appointment of the

Commonwealth’s Secretary of Transportation. Mr. Layne’s

election as CBBT Commission Chairman was the first time

in the history of the Chesapeake Bay Bridge-Tunnel that a

Commonwealth Transportation Board gubernatorial

appointee has held this position.

In May, the Commission approved the operating

expense budget for the District for fiscal year 2013-14, in

the amount of $14,287,730, which was a 2.5% increase

versus the prior year.

The Commission held its third Chesapeake Bay

Bridge and Tunnel Commission Alumni Society meeting in

February. It was a great opportunity to keep in touch with

former Commission members and to update them on what

has transpired at the District in the past year.

The Commission and staff look forward to cele-

brating the 50th Anniversary of the Chesapeake Bay Bridge-

Tunnel on April 15, 2014, and have prepared a commemora-

tive book on its illustrious history and have planned other

projects and opportunities for this monumental milestone.

The outstanding performance and loyalty of the

District’s employees and staff, under the direction of Mr.

Holland, in the operation, maintenance, and promotion of

the Bridge-Tunnel, and in carrying out the policies set forth

by the Commission is recognized and appreciated by the

Commission.

28

Thomas B. Dix, Jr. Vice Chairman

Accomack County

Paul R. Hedges City of Chesapeake

Frederick T. Stant, III Chairman City of Virginia Beach

John W. Salm, III, P. E. Northampton County

Jennifer Lee Secretary-Treasurer City of Portsmouth

John W. White Northampton County

B. Wayne Coleman City of Norfolk

Christopher G. Stuart City of Hampton

Deborah Christie Accomack County

Thomas W. Meehan City of Newport News

Jeffrey B. Holland Executive Director

John F. Malbon Commonwealth Transportation Board

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CHESAPEAKE BAY BRIDGE AND TUNNEL DISTRICT

FINANCIAL STATEMENTS FOR CALENDAR YEAR 2013

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TT he dream of a structure bridging the lower Chesapeake Bay to connect Virginia’s Eastern Shore with the mainland of Virginia became a reality with the opening of the Bridge-Tunnel on April 15, 1964. This accom-plishment can be attributed to the foresight, leadership, and untiring efforts of Lucius J. Kellam, Jr. of Belle

Haven, Virginia. He served continuously from 1954 as Chairman of the Chesapeake Bay Bridge and Tunnel Commis-sion and the former Chesapeake Bay Ferry Commission until 1993, when he was named Chairman Emeritus and con-tinued to serve as an active member of the Commission until September 24, 1995. He was lauded as a diplomat, an executive, a public-spirited citizen, a man of the highest integrity, and a Virginia gentleman.

II n recognition of the outstanding contributions made by Lucius J. Kellam, Jr., and his continued dedication to this major transportation facility, the members of the Chesapeake Bay Bridge and Tunnel Commission, by resolution dated August 11, 1987, named this crossing in his honor. Kellam will be long remembered for his outstanding

contributions to the Chesapeake Bay Bridge and Tunnel Commission and the Commonwealth of Virginia.