MISSION

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

Chesapeake Bay.

February 28, 2012 The Honorable Robert F. McDonnell Governor, Commonwealth of Virginia Office of the Governor Post Office Box 1475 Richmond, Virginia 23218 Dear Governor McDonnell: We are pleased to submit the Annual Report on the operation of the Chesapeake Bay Bridge and Tun-nel District for the year January 1 through December 31, 2011, in accordance with the provisions of Paragraph 16, Chapter 714 of the 1956 Acts of the General Assembly. The sluggish economy, again, provided many challenges and opportunities for the District in 2011. The following pages include information on the District’s traffic volumes, revenue bonds, financial status, op-erations, maintenance, promotional activities, and community involvements. We would be extremely pleased to have you visit with us at any time convenient for you. 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 Stewart H. Buckle, III, Chairman

COMMISSION MEMBERS STEWART H. BUCKLE, III CHAIRMAN CITY OF NORFOLK AUBREY L. LAYNE, JR. VICE CHAIRMAN COMMONWEALTH TRANSPORTATION BOARD GREGORY L. DUNCAN SECRETARY-TREASURER ACCOMACK COUNTY TOM E. MITCHELL CITY OF HAMPTON JOHN W. SALM, III, P.E. NORTHAMPTON COUNTY THOMAS B. DIX, JR. ACCOMACK COUNTY

COMMISSION MEMBERS

PAUL R. HEDGES CITY OF CHESAPEAKE

FREDERICK T. STANT, III

CITY OF VIRGINIA BEACH

JENNIFER LEE CITY OF PORTSMOUTH

VACANT

NORTHAMPTON COUNTY

VACANT CITY OF NEWPORT NEWS

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 forty-eight 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 Southeastern Virginia and the Delmarva Peninsula (Delaware plus the Eastern Shore counties in Maryland and Virginia), and cuts 90 miles from the journey between Virginia Beach and points north of Wilmington, Delaware. 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.

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TRAFFIC

T he Chesapeake Bay Bridge-Tunnel provides the only direct north/south route across the

lower Chesapeake Bay. Traffic decreased in 2011, primarily due to heavy snowfall in the

Northeast, which impacted Mid-Atlantic traffic for the first week of January, and to Hurri-

cane Irene in August. The facility closed to traffic for approximately 24 hours during Hurricane Ire-

ne, due to winds up to 70 mph. However, the overall storm event had an integral four-day negative

impact during the fourth full weekend in August, which is usually the busiest traffic weekend for the

year. Traffic for three of the twelve months in 2011 exceeded those in 2010. Out of the top 100 traf-

fic days, eight occurred in 2011.

Traffic totaled 3,482,136 vehicles in 2011, a decrease of 78,763 vehicles from the 3,560,899

vehicles recorded in 2010. Cars and light trucks accounted for 90.4% of the total traffic or 3,148,686

vehicles, a decrease of 2.0% versus 2010. Heavy trucks totaled 318,770 vehicles or 9.2% of total

traffic, a decrease of 4.1% from 2010. Buses totaled 14,680 vehicles or 0.4% of the total traffic, and

registered an increase of 0.6% over 2010. On page vi of the attached financial report is a comparison

of traffic, by classes, on a monthly and yearly basis for 2011 versus 2010. A review of traffic chang-

es over the past twenty years is indicated in the following graph:

2

G ross toll revenue for calen-

dar year 2011 totaled

$44,838,412, a decrease of

$1,210,988 or 2.6% below gross toll

revenue received in 2010. Fees in-

curred by the District for the pro-

cessing of electronic toll payments via

the E-ZPass system and for the ac-

ceptance of credit or debit card pay-

ments are recorded as deductions from revenue. In calendar year 2011, the District incurred total fees

of $444,748 for processing electronic payments as compared to $469,602 during the previous year.

As a result, net toll revenues for 2011 totaled $44,393,664 versus $45,579,798 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

2011 totaled $1,058,682 versus $941,336 in 2010, an increase of $117,346 or 1.2% over the prior

year.

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REVENUES

BONDS

A s of December 31, 2011, the District had three outstanding series of bonds totaling approx-

imately $114,855,000 par value with an average debt service interest rate of 4.27%. Dur-

ing 2011, $6,200,000 par value of bonds matured.

On September 19, 2011, Fitch Ratings affirmed our “A-” bond rating on the $44,405,000 in

outstanding General Resolution Revenue Bonds, Refunding Series 1998.

At the end of 2011, the District’s outstanding debt portfolio had a ratio of 61% variable rate

debt and 39% fixed rate bonds. An interest rate exchange agreement between the District and

Deutsche Bank AG 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 combi-

nation with interest rate hedges has proven very beneficial. The expected savings during that approxi-

mately 7½-year period were projected to be over $5.6 million. Due to a beneficial mismatch between

the variable rate debt payments and the offsetting receipts on the interest rate exchange agreements,

4

the District had accumulated actual savings of over $8 million through the end of 2011. Within the

last year, the District has executed two bond refundings and a swap novation and restructuring to fur-

ther refine the variable rate portion of the debt portfolio.

On December 31, 2010, the District issued $30,000,000 General Resolution Revenue Bonds,

Refunding Series 2010A (the 2010A Bonds) to provide funds to refund, prior to their maturity, a por-

tion of the outstanding General Resolution Revenue Bonds, Refunding Series 2008A [the 2008A Var-

iable Rate Demand Obligations (VRDOs)]. The 2010A Bonds are variable rate bonds that reset

monthly at 68% of 1-month LIBOR plus a fixed spread. The 2010A Bonds were issued as bank qual-

ified bonds pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986 and were privately

placed with Branch Banking and Trust Company (BB&T). The 2010A Bonds will maintain the same

maturity schedule between 2017 and 2021 as the refunded 2008A VRDOs.

On March 17, 2011, the District issued $46,650,000 General Resolution Revenue Bonds, Re-

funding Series 2011A (the 2011A Bonds) to provide the necessary funds to refund the remaining por-

tion of outstanding 2008A VRDOs. These non-bank qualified bonds are also variable rate bonds that

reset monthly at 78% of 1-month LIBOR plus a fixed spread. The 2011A Bonds were placed private-

ly with BB&T and will maintain the same maturity schedule between 2011 and 2017 as the remaining

portion of the refunded 2008A VRDOs.

The District continues to maintain the two outstanding interest rate swaps to synthetically fix

the interest rate paid on the District’s outstanding variable rate debt. These transactions were origi-

nally entered into with UBS AG in 2004 and 2006, when UBS AG was an active swap counterparty

and underwriter of municipal debt. UBS AG is no longer an active participant in the municipal debt

and swap markets. The District and its swap advisor, Public Financial Management, issued a Request

for Qualification (RFQ) in late March 2011, to identify a new swap counterparty to accept the transfer

of the existing swaps from UBS AG and to execute a partial termination of the 2006 Constant Maturi-

ty Swap. At a special called meeting on April 5, 2011, the Commission approved a series resolution

authorizing the novation and restructuring of the existing swaps to Jefferies Funding, LLC, with

Deutsche Bank AG acting as their credit support provider. On April 21, 2011, the swaps were suc-

cessfully novated and the 2006 Constant Maturity Swap was amended so that the receipt of 67% of

the 10-year LIBOR swap rate was temporarily terminated through May 30, 2014, in exchange for a

new fixed rate receipt of 1.564% to be paid on the same schedule every 35 days beginning on May 6,

2011.

The Revenue Bonds issued under the Revenue Bond Resolution hold senior status to the Gen-

eral Resolution Revenue Bonds issued under the General Revenue Bond Resolution, and all revenues

of the District are first directed under the Revenue Bond Resolution.

T he District’s tunnels have had extensive repairs since 1986, when the tunnel ceiling rehabil-

itation to replace delaminated tile and concrete was conducted. In 2002, a project was de-

veloped to retrofit the roadway in both Thimble Shoal and Chesapeake Channel Tunnels.

Delaminated areas were removed and patched with fast-setting concrete and asphalt to return the

patched area to the original elevation. The project was completed in August 2003, at a cost of

$1,179,058. To protect the original asphalt and give longevity to complete other retrofit projects, a

microseal slurry mixture was placed on the tunnel roadway in 2005, at a cost of $7,132 per tunnel.

Thimble Shoal Channel Tunnel was retrofitted starting in June 2007, with delaminated wall tile re-

placement, niche repair with stainless steel covers, and new handrail replacement. The price of that

project was $3,245,677 and was completed in July 2008. Chesapeake Channel Tunnel was retrofitted

starting in July 2008, with delaminated wall tile replacement, niche repair with stainless steel covers,

and new handrail replacement at a cost of $3,432,282, and was completed in October 2009.

Scour was discovered above the tubes of Thimble Shoal

and Chesapeake Channel Tunnels. To allow for cost sav-

ings, this scour remediation project was combined with

another project that addressed scour at other trestle loca-

tions. The tunnel portions of the project were completed

in 2009. Design of the repair to delaminated ceiling tile

in the tunnels and delaminated concrete in the open ap-

proaches of both tunnels was performed by Jacobs Engi-

neering at a cost of $118,000 and was completed in May

2010. The repair project to provide the work for the above design was started in May 2011, and will

be complete in February 2012, at a projected cost of $1,689,187. The last project to complete the tun-

nel retrofit started in January 2012, with the design provided by Jacobs Engineering. This project will

be to repair under-roadway delamination, mill and repave the

open approaches from abutment to tunnel portal, mill and

repave tunnels, and interceptor grate replacement. The esti-

mated cost for this design is $222,400 and should be ready

for advertisement by the fall of 2012. With this work com-

plete, it will allow the District to increase the tunnels’ com-

ponent rating in accordance with the District’s adopted

GASB 34 modified approach.

5

ENGINEERING

AND MAINTENANCE

For tunnel capital planning details, see “Capital Planning and the Modified Approach to Infra-

structure Reporting,” located at the end of the Engineering and Maintenance section.

A Substructure Repair Project for Trestles A-northbound,

A Prime-northbound, B-northbound, C-northbound, and Fisher-

man Inlet Bridge-southbound was awarded to PreCon Construc-

tion Company in January 2007, and the only work remaining to

be completed and inspected is on Trestle A-northbound, Bents 66

-266, with minor jacket repair on Trestles B and C-northbound.

This project involved both maintenance and structural repairs to

more than 600 concrete cylinder piles across the facility. This

project was precipitated by inspections that revealed that the rein-

forcing steel in the piles with fractures was corroding and expand-

ing to the point where it caused the concrete to crack and spall. In

order to combat the corrosion problems and alleviate the cracking and spalling of the concrete piles,

galvanic cathodic protection (CP) was used. Piles exhibiting significant cracking were outfitted with

fiberglass CP jackets, and piles with

smaller cracks were repaired by routing

out the cracks and packing them with

cementitious material. Any spalls on the

piles were patched with cementitious

material, as well. All work on this pro-

ject was conducted from the water so as

not to cause traffic delays.

A Scour Remediation Project for Thimble and Chesapeake Tunnels and Trestles B-

northbound and C-northbound was awarded to Skanska USA Civil

Southeast, Inc., in 2008. Work was performed in designated areas

along Trestle B-northbound and Trestle C-northbound, and over

Chesapeake Channel and Thimble Shoal Channel Tunnels. This

involved filling localized scour holes with riprap and placing riprap

dikes longitudinally on both sides of the trestles. The original rock

placement and the additional placement under Trestle B-

northbound, which was identified during the annual underwater in-

spection, have been completed. Total rock placed was 313,944

tons. This project will be complete once pile damage is repaired

that occurred as the result of a Skanska barge striking the facility.

6

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

structure is inspected each year. The 2010 underwater inspection of the substructure units of Trestle

C-northbound, was performed by Jacobs Engineering Group and Crofton Diving Corporation and was

completed in March 2011, for a final cost of $379,071. This project recurs annually to keep the Dis-

trict in compliance with the Commonwealth and FHWA Bridge Inspection Criteria. In addition, this

recurring project assures the District is meeting the internal requirements specified in its infrastructure

preservation policy. This year’s portion of the inspection is also being performed by Jacobs Engi-

neering and Crofton Diving Corporation for Trestles B-southbound, D-northbound, E-southbound,

and F-southbound, as well as the northbound North Channel Bridge and the southbound Fisherman

Inlet Bridge. This project is in the amount of $533,200. As part of the Annual Inspection, Jacobs al-

so performed an inspection of the underside of all of the southbound trestle spans over the bay. This

inspection by boat will be a recurring portion of the inspection, with the northbound trestles being in-

spected in 2011.

The design of the Steel Bridge Repainting Project was awarded to Jacobs Engineering Group

on April 27, 2009. This project consisted of the engineering services required for preparation of Spe-

cial Provisions, Technical Specifications and Design Plans for inclusion in the construction contract

documents, which has been completed. The inspection phase is 12%

complete. The Steel Bridge Repainting Project is a District Reserve

Maintenance Fund (RMF) construction project and was awarded to

Saffo Contractors, Inc. in the amount of $7,750,000 in September

2011. This project includes the removal of deteriorated plate steel,

rivets and bolts, followed by replacement with new plate steel and

high-strength bolts. This project is on temporary shut-down until

April 16, 2012.

On April 1, 2011, Jacobs Engineering Group (Jacobs), the District’s consulting engineers,

submitted its Forty-Eighth Annual Report on the annual in-depth inspection and review of the Dis-

trict’s operations and facilities. The inspection of the facility was performed using inspection proce-

dures that followed the general recommended guidelines and regulations of the National Bridge In-

spection Standards (NBIS) as defined in the Code of Federal Regulations, the Federal Highway Ad-

ministration (FHWA), and the Virginia Depart-

ment of Transportation (VDOT). In the Annual

Report, Jacobs commented that “As a direct

result of a very active and proven maintenance

program and constant vigilance of District per-

sonnel, including timely implementation of re-

pair and replacement projects, the entire facility

continues to be in at least generally good condi-

7

8

tion. Considering the extreme marine environment and advancing age of the facility, it is a testament

of this maintenance program that many facility components have out-lived their expected service life.

Continuation of current maintenance and operation 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 infrastruc-

ture 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 re-

pair, replacement, or renovation.

The Supervisory Control and Data Acquisition (SCADA) System Design Project was awarded

to Jacobs Engineering Group on July 13, 2010, in the amount of $311,000. Jacobs recently completed

the 90% submittals. The project is expected to be advertised in mid-2012.

A project was awarded to Spivey Pavement Markings to repaint all line striping on the trestles

and open approaches. The project was completed in June.

The Fender System Repair Project was awarded to

W. F. Magann Corporation on September 21, 2010, in the

amount of $498,639. This waterborne project focused on

the repair of the existing fender system located on North

Channel Bridge, southbound, at Piers 9 and 10. Panels of

the structure were removed, coated and reinstalled. In ad-

dition, all connective hardware, panel support anchor

chains and shackles were replaced. The project was com-

pleted on June 21, 2011 at a final cost of $494,984.

The Erosion Control Project was awarded to W. F. Magann Corpora-

tion on September 21, 2010, in the amount of $522,909. This project

consisted of placing a rip-rap revetment at areas on the southern tip of

Wise Point and the northeast side of Fisherman’s Island to stop accel-

erated erosion near the north abutments of Fisherman’s

Inlet Bridge. This project was completed on April 13,

2011 at a final cost of $459,724.

The Fisherman’s Island Causeway and North and South Ap-

proach Roads Repaving Project consisted of furnishing and

placing asphalt concrete pavement, SM 9.5D, on existing road-

way surfaces for a compacted thickness of one and one-half

inches. In addition, new pavement markings and shoulder aggre-

gate were installed and all man-holes were made flush with the

new asphalt. This project was completed on October 25.

An Electrical Storage Building Project consisted of con-

structing a pre-engineered 100’ x 50’ steel building on a 2’ x 2’

reinforced concrete footing and 6” reinforced concrete pad. This

project was completed on May 17, at a final cost of $143,523.

A project to replace the roof access hatch at the restaurant

on Island 1 was completed in July. The Administration Building

was remodeled with various items purchased from Forms & Supply, who was closing their Chesa-

peake location. Office furniture, partitions, and other miscellaneous items were obtained at a bargain

price of $1,440. This allowed the District to refurbish the entire Electronics Shop and to replace vari-

ous pieces of office furniture in the Administration Building. A project to install humidity control on

each air handling unit in the Administration Building was completed in July. The installation controls

humidity levels throughout the building during heat usage. A project to construct an access road and

apron at the Electrical Building was completed in October. The project was awarded to Virginia Pav-

ing Company in the amount of $21,644.

The Maintenance Building and Gas Pump Canopy Replacement Project consisted of replacing

the existing Maintenance Building roof using a four-ply fiberglass felt roofing system. This included

approximately 15,600 square feet of roof area, approximately 134

linear feet of 12-inch wall flashing and surface-mounted counter

flashing, approximately 790 linear feet of gravel stop detail, 6 roof

drains, 10 pitch pockets, approximately 90 linear feet of curb flash-

ing, three vents through the roof, approximately 900 linear feet of

caulk joint, and approximately 150 linear feet of expansion joint.

The six additional roof drains were installed at $650 each (optional

contract pricing) for an additional cost of $3,900. This project was

completed on September 21, at a final cost of $139,600.

The Upper Lateral Supports, North Channel Bridge - Northbound Project consisted of repairing

broken supports on the North Channel Bridge, northbound. Four additional hangers were found to be

broken as well as one bottom and one top splice plate, which were added to the contract quantities. A

9

10

Change Order was also included for fabricating and installing

the supports needed to repair the top splice plate. This pro-

ject was completed on April 6, at a final cost of $101,750.

Fiber Optic Media Converters and Switchgear were

purchased, which enabled us to utilize newly-installed fibers

from the Eastern Shore of Virginia Broadband Project for

inner area connections. This allowed us to terminate the Ver-

izon T1 pay services at a savings of $7,000 per year. This

project was completed in March.

The Commission approved several Reserve Maintenance Fund Projects in the District’s Six-

Year Plan. The projects completed in 2011 include replacement of a Printer/Plotter, which will ena-

ble the Engineering Department to print and scan large format architectural size drawings; replace-

ment of 2-Ton Heat Pumps in Toll Lanes 7 and 8 that were ordered from Damuth Trane and installed

by North Star; upgrading the portable projection and media cart to allow the use of newer technology

during in-house interactive meetings and training; purchase of concrete light poles for replacement of

poles on the entire facility as needed; purchase of a battery tester and analyzer that will enable the

District to test and replace batteries in a timely manner without unnecessary replacement; purchase of

a thermal imaging camera for testing, which allows us to scan our electrical equipment without open-

ing panels or boards, creating a safer work environment for employees while performing preventive

maintenance; purchase of a 5K Volt Megger Resistance Tester, which will enable us to pinpoint cable

faults more efficiently and test motor winding insulation and transformers. A project to replace Is-

lands 2 and 4 Station Batteries was completed in September. Other projects completed in 2011 in-

clude replacing four Police Units, a bucket truck, and two AC units in the CNC cabinets.

Other purchases include a pickup truck that was received in April and an intermediate dump

truck, which includes the truck, attenuator, spreader, plow, and arrow board. Delivery of the dump

truck is expected in mid- to late-March 2012. An Internet Gateway Appliance was purchased that

enables the District to bring its networking security up to current standards. The project was complet-

ed in April. A replacement UPS on Island 3 was purchased from Liebert for $35,515 and the installa-

tion is scheduled for February 2012. Also scheduled for February is the delivery of a van purchased

from R. K. Chevrolet and a new portable air compressor, purchased from Diamond Goodson for

$31,995.

In an effort to become more environmentally sensitive and operationally efficient, the District

has been researching and assessing LED lighting. In an effort to curb escalating utility costs, the Dis-

trict initiated a pilot project to test new LED roadway lighting technology on the facility. LED lights

11

from several manufacturers have been tested, but due to

the harsh marine environment and other factors, none

have proved satisfactory to date. The District’s variable

message signs have already been converted to LED light-

ing technology. A project to replace the fishing pier

lights with LED trout lights was completed in April at a

cost of $10,718. The LED lights replace the original

400w Mercury Vapor lights. Also the fishing pier walk-

way lights were replaced with efficient LED lights, at a

cost of $18,416.

The District continues its recycling project in which glass, plastic, cardboard, paper, and alu-

minum are being recycled. Approximately 60-70% of the solid waste is recyclable.

The District purchased Weather Stations that will upgrade the two current analog stations with

the addition of two stations to expand the amount of area covered. This system will monitor current

weather conditions and trends to better serve the traveling public. This system also has the capability

of data logging with better accuracy and allows us to have instant accessibility from all areas of the

District. This project is expected to be completed in April 2012.

Training and continuing education for Maintenance personnel included a program on the An-

nual Transportation Project Management Institute at the University of Virginia; Pesticide Recertifica-

tion Course; Small Water Works Class; National Fire Protection Association seminar on Electrical

Safety in the Workplace whereby the employee earned the NFPA 70E Certificate of Educational

Achievement; Electrical Journeyman’s online course; a class on Non-Revenue Water – Terminology,

Techniques and Tolls for the Control of Water Loss; Basic Electricity for Waterworks Operators

class; and a webinar on Smart Grid & NFPA Safety Codes & Standards.

Capital Planning and the Modified Approach to Infrastructure Reporting

The capital planning needs of the District not only include parallel tunnels but also other infra-

structure repairs, renovation, and replacements that are modeled to cost an average $16 million per

year over the next 40 years. These capital planning expenditures are proactively necessary to be in

accordance with the District’s bond resolutions, which require annual engineering inspections on the

facility that identify long-range capital replenishment needs. Proactive capital plan expenditure ap-

proval is an integral part of the District’s annual financial statement presentation as the District’s fi-

nancials have to be prepared in accordance with the modified approach to infrastructure reporting.

The most recently completed capital projects to maintain accord with the modified approach preserva-

tion ratings are the tunnel retrofits, the substructure repair project, Wise Point and Fisherman’s Island

12

Erosion control projects, and the tunnel pump replacement projects. Projects that are currently under-

way for preservation purposes are the scour remediation project, the North Channel Bridge Painting

Project Design and subsequent Contract, and the Approach Roads and Causeway Asphalt Paving Pro-

ject.

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

estimate for the Thimble Shoal Channel Parallel Tunnel to Jacobs Engineering Group. This engineer-

ing project was scoped to have 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 since the most recent $1.3 billion parallel tunnels (both tubes) cost estimate was devel-

oped in 2007. 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 Au-

thority 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 at 67 feet with 3 feet of safety factor rating “over dredge” to allow for a

net 70 feet of clearance. 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 $989,000,000 in 2021 construction com-

mencement 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 com-

pleted in two separate phases. Thimble Tunnel will be completed first in 2025, and thereafter there

will be an approximate 20-year displacement before Chesapeake Channel Tunnel is completed. This

bifurcated phased approach assures 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 rat-

ing agencies and less need for larger toll increases on a staged basis for the facility.

The Commission adopts the long-term capital projects plan on an annual basis. The most re-

cently adopted (May 2011) Capital Projects Capacity Plan expenditures total $1,664,000,000 to span

from fiscal year 2012-2050. The Commission determined that the design of the Thimble Shoal Paral-

lel Tunnel and the permitting process should commence in the 2017 time frame, which would trans-

late to the tunnel construction commencing in 2021, and the tunnel being opened to traffic in the 2025

time frame.

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

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

13

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

That variable is only one of many reasons. As has been jointly studied and was earlier referenced

with the Joint Legislative Audit Review Commission, both houses of the General Assembly, VDOT,

as well as third party traffic engineering firms, the parallel tunnels are needed for the following rea-

sons:

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 28 times per year, or (2) a tunnel structural and/or mechanical interrup-

tion given the almost 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 opera-

tion 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 2056, existing Ches-

apeake Channel Tunnel will be 96 years old.

c) There is an average 413 different lane closures per year in the tunnels due to over-

sized escort loads, which increases the toll paying customers crossing time by 15-

25 minutes.

d) There is an average 111 different tunnel lane closures per year, which add up to

850 hours, due to ordinary maintenance work and contract work in the tunnels,

which is performed under full lane closures with police escorts due to the unsafe

environment for customers, employees, and contractors. This also delays crossing

times by 15-25 minutes.

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

in the tunnels, primarily in May through September.

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

which are estimated to grow at 53,500 vehicles per year.

14

OPERATIONS

I n 2011, the District’s Operations Division personnel rendered assistance to 384 customers who

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

Department also issued 4,076 traffic summonses with 23 summonses issued for driving under

the influence. Additionally, the Department handled five felony arrests during 2011.

During 2011, 32 reportable vehicular accidents occurred on the facility, which involved nine

personal injuries and one fatality, and represents an increase of two accidents when compared with 30

accidents in 2010. Four of these reportable vehicular accidents occurred because of icy road condi-

tions. As a result of these 32 accidents, estimated vehicle damage totaled $391,800 and damage to

District property totaled $38,600.

This past year, the Operations Division/Police Department escorted 356 oversized loads,

which required traffic to be stopped at both ends of each tunnel, resulting in 119 hours and 7 minutes

of traffic stoppages. Additionally, a total of 25 vehicles were disabled in the tunnels, which required

traffic control around said vehicles until District-provided wrecker service arrived. This resulted in 4

hours and 16 minutes of traffic stoppages. There were 17 miscellaneous lane closures, resulting in an

additional 21 hours and 4 minutes of traffic stoppages in the tunnels. Nighttime work details in the

tunnels totaled 179, resulting in 1,449 hours and 8 minutes of traffic stoppages. In summary, during

calendar year 2011, there was a total of 577 lane closures in the tunnels, which resulted in a total of

1,593 hours and 35 minutes of traffic stoppages.

Grant funds in the amount of $194,055.59 were received from the Virginia Department of

Emergency Management’s Buffer Zone through the National Preparedness Directorate for installation

of CCTV on the Chesapeake Bay Bridge-Tunnel.

The District has worked diligently

since the 2001 terrorist attacks by increas-

ing security throughout the entire facility.

As a result, the Operations Division con-

tinues to attend meetings with personnel

assigned to the U.S. Coast Guard Marine

Safety Office, the U.S. Navy Criminal In-

telligence Services, and the FBI concern-

ing matters of potential terrorist activities.

Continuing education regarding terrorist

15

activities in 2011 include having a Police Officer attend a Homeland Security State and Local Law

Enforcement Training Symposium, and four Officers attend Improvised Explosive Device Awareness

Training.

The Chesapeake Bay Bridge-Tunnel Police Department, in

coordination with the Department of Homeland Security (DHS), con-

ducted two VIPR (Visible Intermodal Prevention and Response) Op-

erations. These operations were conducted to enhance security on

and around this facility, which has been labeled by DHS as a Critical

Infrastructure. Nine other state and federal agencies participated in

these operations. There were no explosives found and only minimal

delays were experienced by the traveling public.

The Operations Division purchased 42 Glock Model 22 and 23 pistols, which replaced the

Smith & Wesson .40 caliber handguns that were purchased approximately 20 years ago. All Police

Officers have completed their training on the new weapons.

Four Police Officers received their Basic Radar/Lidar Training and 12 other Police Officers

completed their Radar/Lidar Recertification training and testing. In addition, one Police Lieutenant

and one Police Sergeant successfully completed online Radar/Lidar Instructor Recertification train-

ing.

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

three Police officers received their certification as Breath Alcohol Operators. Three District Police

Officers were recertified as Breath Alcohol Operators. Additionally, two Officers attended the Annu-

al Mid-Atlantic DUI Conference.

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

Police Department to perform its own criminal background checks with DMV without having to rely

on the assistance of other area police departments. During 2011, a Master Police Officer received

Instructor Recertification, and 17 Officers received recertification training for the VCIN terminal.

Each year, law

enforcement officers

from all over the Com-

monwealth of Virginia

join forces to raise mon-

ey for the Special

Olympics and the Torch

16

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 8, four District Police Officers represented 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 facility and passing the torch to awaiting officers in Virginia Beach.

Efforts for this year’s event netted over $580 from Bridge-Tunnel employees and over $10,300 from

the Eastern Shore for the Special Olympics.

Other safety and service training for Police Officers included sending the District’s Police rep-

resentative, who is also the Eastern Shore’s Regional Director of the Virginia Gang Investigators As-

sociation, to numerous meetings related to gang activities and investigations. Three Police Lieuten-

ants attended a Behind the Badge Suicide Prevention and Outreach Seminar. The Chief of Police and

three Police Officers attended an Officer Survival Seminar that was hosted by Virginia Municipal

League. The Chief of Police also attended a two-day Safety Workshop hosted by Jacobs Engineering

Group. A Sergeant attended an FBI Community Relations Executive Seminar; a Sergeant attended a

five-day FBI First Line Supervisors’ Training Class; and another Sergeant and Master Police Officer

attended a training seminar entitled, “Law Enforcement Officers Killed and Assaulted” that was host-

ed by the FBI. A Master Police Officer attended a Field Officers’ Training School, which was held at

the Hampton Roads Criminal Justice Training Academy.

The Operations Division conducted two

Law Enforcement In-Service Training Schools

for 24 District Police Officers, as well as for oth-

er Police Officers from local departments on the

Eastern Shore.

Additionally, a Corporal attended the

Department of Criminal Justice Trainers’ Meet-

ing; a Lieutenant attended a General Instructors’

Recertification training class at the Hampton

Roads Regional Academy of Criminal Justice; and one Lieutenant was recertified as a Firearms In-

structor. In addition, three Police Officers attended Armorers’ Training Courses during 2011.

The Department of Motor Vehicles requires that their Police Accident Report (FR300P) be

submitted to them electronically; therefore, one Lieutenant attended the Virginia Traffic Records

Conference in Richmond.

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 Virginia Tourism Corporation, and the Virginia Hospitality and Travel Asso-

ciation. As a result of these efforts, response was made to 29,474 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 304,000 pieces of bulk mail (promotional brochures and

toll schedules) were shipped to individual businesses for display in their brochure racks. Website in-

quiries continue to rise with 397,502 sessions recorded in 2011, a 9.4% increase over the 363,189 ses-

sions recorded in 2010.

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

Plaza Rest Area building and operated by the Eastern

Shore of Virginia Tourism Commission, continues to

thrive. On November 14, 2011, they welcomed their

250,000th visitor since opening their doors in August 2009.

The travel ambassadors continue to guide visitors to the

many Eastern Shore attractions and amenities, as well as

those of its surrounding areas. A total of 108,016 visitors

were welcomed during the 2011 calendar year. New to the

center this year is a travel information kiosk. Located in

the foyer of the CBBT’s North Toll Plaza Rest Area build-

ing, this kiosk provides travelers with 24/7 access to East-

ern Shore tourism information.

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

fully completed their first 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, which were com-

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

Originals and Chesapeake Grill, focuses on providing

food and retail products that come from across the Com-

monwealth. The newly-renovated establishment contin-

ues to be well received by the traveling public. New tres-

tle signage has been installed along the facility, in each

travel direction, to inform the travelers of not only the res-

17

taurant and gift shop, but also of the Visitor Information Center

that is located within the establishment and operated by the Vir-

ginia Beach Convention and Visitor’s Bureau. In 2011, total

sales at Virginia Originals and Chesapeake Grill totaled

$1,584,151, and the District received $282,370 from the lease of

the establishment. The District is very pleased with Virginia

Originals and Chesapeake Grill and looks forward to its continu-

ing success.

The District entered into a license agreement with the City of Virginia Beach, through its Vir-

ginia Beach Convention and Visitor’s Bureau, for a satellite information center located inside of Vir-

ginia Originals’ retail area at “One Island on the Bay.”

This center is staffed 360 days per year and has received

better utilization than expected according to Virginia

Beach officials. The information desk provided travel in-

formation and brochures about Virginia Beach and the

Hampton Roads area to approximately 38,816 visitors dur-

ing 2011.

Since the close of Transcore’s E-ZPass Sales Office in February 2008, the District continues

to provide assistance to all E-ZPass customers by answering questions, solving problems, and open-

ing and closing accounts. In 2011, the District assisted more than 285 customers with their E-Zpass

accounts. Approximately 36% of the District’s customers are utilizing E-Zpass in the toll lanes.

Perhaps one of the most exciting projects was the installation of a toll lane credit card system.

TRMI was hired to develop and integrate this system. This is a customer service upgrade in order to

accept credit cards in the toll lanes. This project called for upgrading the hardware and reconfiguring

the storage structure for toll database server integration. The hardware repairs and preventive mainte-

nance that was made to the toll database servers was completed in November 2011. Acceptance of

credit/debit cards in the toll lanes went live on February 8, 2012. VISA, MasterCard, and Discover

cards are accepted in the toll lanes, as well as in the plazas and Administrative office

The District again contributed $45,000 to the Medical Tolls Program that is administered by

Eastern Shore Rural Health System, Inc., who purchases scrip toll tickets for local residents who need

to travel across the Bay for medical reasons. This has been a program that has benefited many East-

ern Shore residents over the past twenty years and of particular note, Eastern Shore Rural Health Sys-

tem does not charge an administrative fee.

18

19

The District also contributed $15,000 to the Educational Toll Fund that is administered by

Eastern Shore Rural Health System, Inc., who also oversees the Medical Tolls Program. This fund

was created to address the need for assistance with tolls for furthering the education of residents on

the Eastern Shore who must travel across the CBBT for college classes, as well as Eastern Virginia

Medical School students who serve their residence requirements on the Shore. In 2011, $2,795 was

distributed to residents of the Eastern Shore from the Educational Toll Fund and the rate of reim-

bursement for educational tolls was increased from $5 per crossing to $12 per crossing.

The District is working with Norfolk Festevents, the City of Virginia Beach, and representa-

tives from Eastern Shore Festivals in preparation for OpSail 2012. On June 8, 2012, the Parade of

Sail will take place through Thimble Shoal Channel, as

the tall ships make their way up the Bay to their ports of

call. Package opportunities are currently being devel-

oped to accommodate group tours as well as the general

public on the Bridge-Tunnel’s two southernmost islands,

Islands 1 and 2, as they will once again prove to be a

spectacular viewing area as the impressive fleet of tall

ships sail through our waters.

In an effort to promote a healthier work environment, the District

hosted a flu shot clinic, as well as a vaccination clinic. The flu shots

were made available to all District employees at no charge through a

partnership with the District’s insurance provider, OptimaHealth. Tdap

vaccinations (tetanus, diphtheria and pertussis) were made available at

no charge to all District employees through a partnership with the Vir-

ginia Beach Health Department. These clinics continue to prove very

beneficial for those who participate.

The District, working in conjunction with the American Red Cross

Mid-Atlantic Region, conducted three successful blood drives during the

year and collected a total of 80 units of blood. The District continues to par-

ticipate in the Double Red Blood Cell Technology, a process that is the most

efficient, donor-friendly method of collecting the blood components most

frequently needed by patients in our community.

In an effort to “sack hunger” on the Eastern Shore and in Southeast-

ern Virginia, the District partnered with the Foodbank of Southeastern Vir-

ginia and the Foodbank on the Eastern Shore and conducted a “Super Bowl

Food Blitz” throughout the 2011 Super Bowl weekend, collecting more than

20

300 pounds of food and over $200 in cash. This year’s event was in conjunction with an EXTREME

Food Drive, set forth by Extreme Makeover Home Edition, who was in the area doing a home makeo-

ver for a Virginia Beach family. Overall collections totaled 406,600 pounds of non-perishable food

items.

The District participated in “Career Day” at Northampton High School on Virginia’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 Vis-

itor Day” at the Norfolk International Airport.

The District continues to develop and publish a bi-annual newsletter for its employees and re-

tirees. In addition, a travel events calendar that highlights events up and down the East Coast is de-

veloped, published, and distributed each year. Annual Tide Tables are also published in-house for

distribution to anglers using the fishing pier located on the southernmost manmade island, known as

“One Island on the Bay.”

Throughout the year, tours of the facility were pro-

vided to various school groups and associations, including

guest legislators, local Chamber members, representatives

from Richmond Metropolitan Authority, a Chinese delega-

tion, Critical Infrastructure Symposium participants, U.S.

Coast Guard, and representatives of the Virginia Toll Facil-

ities Group. Fourteen bird watching tours were conducted

on the man-made islands of the CBBT in 2011.

In November, the Chesapeake Bay Bridge-Tunnel served as

the host agency for the annual meeting of the Virginia Toll Facili-

ties Group. This group, founded in 1995, provides a forum for

sharing knowledge and ideas to promote and enhance toll-financed

transportation services. Approximately 100 people were in attend-

ance and CBBT Commissioner and Commonwealth Transportation

Board member Aubrey Layne served as the keynote speaker, as he

addressed transportation in the Commonwealth. As part of this an-

nual conference, a “Toll Collector of the Year” award was presented to Miss Sara Wright of the Met-

ropolitan Washington Airport Authority’s Dulles Toll Road. A scenic crossing and “behind-the-

scenes” tour of the Bridge-Tunnel’s facility was also provided to all attendees.

21

The District continues to work with local news media and travel writers. In May, the Chesa-

peake Bay Bridge-Tunnel worked with Aperture Films, as they filmed a segment of a 20-minute doc-

udrama about the life of Alexander Hamilton. This piece is being produced on behalf of the National

Park Service and will be shown in the Hamilton Grange National Memorial museum in New York.

Additionally, in late October, a film company representing Volvo was on site to film a 1966 Volvo

P1800 with more than three million miles on its odometer, as it crossed portions of the facility for the

making of a documentary.

Another unique happening in 2011, was the crossing of artifacts

from the 9/11 terrorist attacks at the World Trade Center and the Pentagon.

Bridge-Tunnel police, along with law enforcement officials from other area

departments, surrounded the 18-wheel truck carrying a twenty-one foot

long steel beam from one of the World Trade Center towers and a 350-

pound limestone section of the Pentagon draped by American flags, as it

traveled across the facility to its final destination in Chesapeake, Virginia.

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

Way campaign. This year’s campaign surpassed the District-wide goal of $10,000 by 27%, as em-

ployees pledged to contribute $12,678 to community organizations and non-profit agencies.

On Saturday, November 26, the District, in partnership with the Virginia Saltwater Fishing

Tournament, hosted the 13th Annual “Rock Around the Clock” Striped Bass Pier Fishing Tournament

at the fishing pier located on “One Island on the Bay.” This tournament, which is a part of the Striped

Bass World Championship that runs from November 1 through December 31, is an excellent oppor-

tunity for those fishermen who do not have boats to take advantage of the wonderful catches that are

available in the waters of the Chesapeake Bay, as well as the opportunity to compete for some of the

prizes that are awarded to tournament participants. More than 75 anglers participated in this year’s

event and the winning fish weighed in at 3 pounds 6 ounces. Due to unseasonably warm weather and

water temperatures, the fish were not caught in abundance this year as they have in years past.

Each year, District employees and Commission mem-

bers participate in the Northampton County Department of So-

cial Services’ “Angel Tree” Christmas program, as well as a

food and clothing drive that benefits the Eastern Shore Food-

bank. Through our efforts, 35 “angels,” from newborns to age

11, were provided with needed clothing items and toys. Non-

perishable food items, gently-used coats, and $200 in monetary

donations were collected for the Foodbank.

COMMISSION

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

during 2011 in administering the affairs of the District in the best interest of the bondhold-

ers and the traveling public. The terms of George B. Clarke IV, David E. Midkiff, and

Cynthia P. Morrison expired on May 13, 2011. We were pleased that John W. Salm, III, P.E.; Freder-

ick T. Stant, III; Paul R. Hedges; and Jennifer Lee were appointed to the Commission as representa-

tives from Northampton County, City of Virginia Beach, City of Chesapeake, and City of Ports-

mouth, respectively. Mr. John W. White, representative from Northampton County, resigned from

the Commission effective July 1, 2011, due to health issues. The Commission was shocked and sad-

dened by the December 1, 2011 passing of Billie M. Millner, representative from the City of Newport

News. The Commission lost the extraordinary presence, reasoned voice, and expert counsel of a dear

friend and colleague with the passing of Mr. Millner. We are currently awaiting the appointment of

two new members as representatives from Northampton County and the City of Newport News.

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

March 1, 2011, and ending February 29, 2012: Stewart H. Buckle III, Chairman; Aubrey L. Layne,

22

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. Additional site enhance-

ments include general information regarding the current capital projects, as well as a link to the 511

Virginia website so that travelers can obtain email notifications and mobile alerts for not only the

Chesapeake Bay Bridge-Tunnel but also other roadways, bridges, and tunnels throughout the Com-

monwealth.

The District purchased property at Little Creek in 1995 to be used as a staging area for the

construction of the Parallel Crossing 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 in-

come for the District. In 2011, income from leases of the Little Creek property totaled $672,814.

The tenants include Marine Spill Response Corporation - $359,424; TransAtlantic Lines - $118,211;

Chesapeake Bay Tower Associates - $21,276; Earl Industries - $14,903; Precon Marine - $106,000;

and Skanska USA - $53,000. Earl Industries did not renew their lease at Little Creek and Precon Ma-

rine leased the portion of property that Earl Industries had occupied. For the months April through

mid-September, Precon subleased a portion of their property to Skanska USA. This property is very

important to the District, as it provides a safe harbor for waterborne contractors who work on the sub-

structure of the Chesapeake Bay Bridge-Tunnel.

Stewart H. Buckle, III Chairman

City of Norfolk

Gregory L. Duncan Secretary-Treasurer Accomack County

Jeffrey B. Holland Executive Director

Tom E. Mitchell City of Hampton

Jennifer Lee City of Portsmouth

Paul R. Hedges City of Chesapeake

Aubrey L. Layne, Jr. Vice Chairman Commonwealth

Transportation Board

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

Thomas B. Dix, Jr. Accomack County

Frederick T. Stant, III City of Virginia Beach

23

Jr., Vice Chairman; and Gregory L. Duncan, Secretary-

Treasurer.

In May, the Commission approved the operating

expense budget for the District for fiscal year 2011-12,

in the amount of $13,248,470, which was a 2.7% in-

crease versus the prior year.

The Commission continued to work with the

Virginia Offshore Wind Development Authority to ex-

amine partnership opportunities for testing turbines in

the Chesapeake Bay. Staff attended the Virginia Wind

Energy Conference and the Governor’s Conference on

Energy.

The Commission held its first Chesapeake Bay

Bridge and Tunnel Commission Alumni Society meet-

ing 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 outstanding performance and loyalty of the

District’s employees and staff, under the direction of

Mr. Holland, in the operation, maintenance, and promo-

tion of the Bridge-Tunnel, and in carrying out the poli-

cies set forth by the Commission is recognized and ap-

preciated by the Commission.

CHESAPEAKE BAY BRIDGE AND TUNNEL DISTRICT

FINANCIAL STATEMENTS FOR CALENDAR YEAR 2011

i

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vii

viii

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LLLUCIUSUCIUSUCIUS J. KJ. KJ. KELLAMELLAMELLAM, , , JJJRRR. . . BBBRIDGERIDGERIDGE---TTTUNNELUNNELUNNEL

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.