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To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a Financing Agreement between the City of Richmond and the Virginia Resources Authority for the purpose of funding Phase 6 of the City’s lead service line identification and replacement program.
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That the Chief Administrative Officer, for and on behalf of the City of Richmond, be and is hereby authorized to execute a Financing Agreement between the City of Richmond and the Virginia Resources Authority for the purpose of funding Phase 6 of the City’s lead service line identification and replacement program. The Financing Agreement shall be approved as to form by the City Attorney and shall be substantially in the form of the document attached to this ordinance.
§ 2. This ordinance shall be in force and effect upon adoption.
City of Richmond
Intracity Correspondence
DATE: August 10, 2026 EDITION: 1
TO: The Honorable Members of City Council
THROUGH: The Honorable Danny Avula, Mayor
THROUGH: Odie Donald II, Chief Administrative Officer
THROUGH: Tanikia Jackson, Deputy Chief Administrative Officer, Finance & Administration
THROUGH: Alfred Wiggins, Deputy Chief Administrative Officer
THROUGH: Letitia Shelton, Director Finance
THROUGH: Meghan Brown, Director of Budget and Strategic Planning
FROM: Scott Morris, Sr. Director, DPU
RE: Virginia Water Supply Assistance Grant (“WSAG”); Financial and Construction Assistance Program; Lead Service Line Replacement & Service Line Inventory Funding Award#: BIL-65L-23b (LOAN)
ORD. OR RES. No. ______________
PURPOSE: To authorize the Chief Administrative Officer to execute the attached Financing Agreement with Virginia Resources Authority (VRA), as administrator of the Virginia Water Supply Revolving Fund. This Agreement is valued at $12,700,000 and in the form of low-interest loan from the Virginia Department of Health (VDH) Lead Elimination Assistance Program (LEAP) BIL-65L-23b Grant via the Virginia Resources Authority (VRA), for the purpose of funding lead service line identification and replacements in the City.
BACKGROUND: The City operates a Lead Service Line Replacement (LSLR) Program
(the “Program”) administered by DPU. The Program broadly seeks to reduce risk of lead in drinking water, remain in compliance with the federal Lead and Copper Rule (LCR) and Lead and Copper Rule Revisions (LCRR) requirements, and the pending LCR Improvements (LCRI) regulations, which adds additional requirements. The LCRI had an effective date of December 30, 2024, and the City must be prepared to comply with the new regulations by the compliance date of November 1, 2027, which requires 100% identification of service line material on both customer and city side, as well as 100% replacement of lead lines legally and physically within DPU control by December 31, 2037.
The program includes identifying where lead service lines are located within the City (on both public and private property), city-side lead service line replacements, and customer-side lead service line replacements which typically run from the water meter serving a to the building. The work for service line replacements will be done by a contractor selected through an Invitation for Bid to replace service lines block by block. Blocks will be selected for work based on factors such as vulnerability of population to lead, disadvantaged status, and participation rate on the customer side.
Lead Service Line Replacement (LSLR) Plan, to be completed per LCRI by November 1, 2027.
Currently, the Service Line Inventory (SLI) indicates that the pipe material on roughly 28,000 service lines is “Unknown” and, additionally, slightly more than 11,100 are categorized as “Unknown - Likely Lead”.
The $12,700,000 funding award is 63.5% of a total $20,000,000 funding award under BIL-65L-23b. The $12.7M low-interest loan is intended to fund LSLRs in the public right-of-way.
COMMUNITY OUTREACH: DPU has been conducting public outreach to promote the private side, LSLR Grant Program since 2018. The City recently established the Lead Free Water program and has a publicly accessible interactive Service Line Inventory map where citizens can research information about service line pipe material by street address. Additional outreach activities are ongoing including television advertisements, annual letters to customers with unknown or known lead service line status, popup events, and door-to-door canvassing.
STRATEGIC INITIATIVES AND OTHER GOVERNMENTAL: The LCRR regulations required that localities provide their customers with an interactive service line map and a plan for replacing all lead service lines by October 16, 2024. This funding will help DPU maintain and update this map, providing residents with the most up-to-date information so they can make informed decision regarding the health of themselves and their families. The Lead Free Water program also supports the Mayoral Action Plan’s goal for A Thriving and Sustainable Built Environment, Goal D.
FISCAL IMPACT: DPU’s water utility budget will increase by $12,700,000.
DESIRED EFFECTIVE DATE: Upon adoption.
REQUESTED INTRODUCTION DATE: September 14, 2026
CITY COUNCIL PUBLIC HEARING DATE: September 28, 2026
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Governmental Operations, September 23, 2026
AFFECTED AGENCIES: Department of Public Utilities, Department of Budget and Strategic Planning, Department of Finance
RELATIONSHIP TO EXISTING ORD. OR RES.: Companion Ordinance: 2026-0159
ATTACHMENTS: Drinking Water Financing Agreement No. BIL-65L-23b
STAFF: Billy Vaughan, Deputy Director, DPU - (804) 646-5232
Laura Bendernagel, Senior Deputy Director, DPU - (804) 754-657
Michael Chase, Program and Operations Manager for Lead Free Water Program