PERC Water Press

FOR IMMEDIATE RELEASE: Contact: Marian Clark PERC Water 714-352-7754 [email protected]

PERC Water to Operate and Upgrade Adelanto Wastewater Treatment Facility Adelanto, California, February 9, 2012 PERC Water, a water infrastructure company, was unanimously selected by the Adelanto City Council last night to take over the operation and maintenance of their wastewater treatment facility and immediately begin designing an expansion of that facility. Adelanto, California is located approximately 50 miles north of Riverside and has a population of 31,000. Due to a steady stream of new residents, Adelanto began an expansion of their original wastewater treatment facility in 2007 but progress remained at a standstill four years later, resulting in a Cease and Desist Order from the Regional Water Quality Control Board. Without the necessary capacity, the City has had to divert a significant portion of their wastewater to a regional facility. Dr. D. James Hart, City Manager of Adelanto, said, Currently the Citys wastewater treatment facility is undersized to meet the incoming flow. There has been an effort to expand the plant since 2007. However, the City and Contractor ran into difficulties that would forestall completion of the expansion within the time lines required by the Regional Water Board. As a result, the City was under the threat of having a connection ban imposed. Through the diligent effort of the City team, the connection ban was not imposed and the City needed to move quickly to finalize the expansion. Under the terms of the contract, PERC Water will implement their trademarked Turn Around Plan (TAP), a program designed to assist water and wastewater infrastructure owners in restructuring their operations and upgrading their facilities to bring them into compliance in an economical manner. PERC Water is contracted to operate the facility for seven years and will implement their TAP, performing the necessary upgrades to reach a treatment capacity of 4 million gallons per day by mid 2013. This will satisfy the requirements of the Cease and Desist Order and allow the City to stop diverting the excess wastewater to the regional facility. As a result of PERC Waters integrated design-build-operate team, they have the in-house expertise necessary to perform all of the upgrades and expansions necessary to bring the Adelanto Facility into compliance and treat all of its wastewater. Dr. Hart continued, The City was pleased to select PERC Water as the company to finalize the wastewater plant expansion and to come in as the Citys plant operator once the plant is expanded. As the City staff reviewed proposals and interviewed prospects, it became clear that PERC Water shared the same philosophy regarding the urgency to finish the plant expansion and had highly skilled staff who would get the expansion completed timely. Additionally, PERC Water was willing to work under a guaranteed price and that was attractive to the City because it ensured the City Council and public that there are no hidden costs or over runs that would inflate the final price. This was truly a transparent process. Bob Nespeca, PERC Waters Vice President of Infrastructure Concessions, commented, "We are looking forward to our partnership with the City of Adelanto and are excited to implement our tried and tested TAP program to alleviate the Citys compliance issues. We are very impressed by the Citys dedication and commitment to its ratepayers and the environment.

### PERC Water Corporation is a water infrastructure company that develops, designs, builds, operates and manages water infrastructure throughout the United States. We have designed approximately 60 water

infrastructure projects over the past 14 years, 20 of which we have built and placed into operation. Our project approach results in performance guarantees of water quality and the assumption of the risks associated with implementing complex water infrastructure projects. PERC Water is headquartered in Costa Mesa, California. www.percwater.com


Santa Paula Water Recycling Facility Receives Prestigious 2011 Public-Private Partnership Award for Innovation

Santa Paula, California, August 17, 2011 The Santa Paula Water Recycling Facility has been awarded the 2011 Public-Private Partnership Award for Innovation from the National Council for Public-Private Partnerships. This honor recognizes projects developed through a public agency and private company partnership that demonstrated a significant new advancement in the field of public-private partnerships. The Award will be presented at a special Reception and Awards Banquet in Tampa, Florida on Tuesday, October 4th. The Santa Paula Facility has been recognized for its innovative approach to water recycling by numerous organizations including the Design-Build Institute of America, Global Water Intelligence and the Environmental Business Journal. We are proud the facility is continuing to be honored for its fiscally responsible approach to a vital infrastructure problem, said Santa Paulas Vice Mayor Bob Gonzales. The cost of doing business was significant for our City. We had to build a new wastewater treatment facility and we did not have the necessary funds. The public-private partnership gave the City a lot more latitude and the risk was transferred to the company who was doing the work. As a result of the public-private partnership, the City of Santa Paula transferred the financing, design, construction, and operating risk to a private entity for 30 years. The facility was 100% privately funded and required no upfront capital outlay by City. Socio-economic benefits included almost 90% of the hours worked were from local labor and more than $4.5 million was invested in the local economy excluding sales tax revenue. It began full operation seven months ahead of the deadline and has exceeded the compliance requirements by the state. Utilizing public-private partnerships to develop water and wastewater infrastructure is a paradigm shift from traditional methods. In todays difficult economic markets, it is imperative municipalities explore new alternative delivery methods. PERC Water invested months in public outreach with the City staff and Santa Paula community members discussing the advantages of partnering with a single, united team that is invested in and responsible for not only the short and long-term success of the project but for the future recycled water reuse within the local area. The Santa Paula Facility was designed, built and is currently being operated by PERC Water. They, in partnership with Alinda Capital, financed the project and it is the first of its type under California Code 5956, which encourages public-private partnership by using private investment to solve public infrastructure needs. It is the first 100% privately funded water recycling facility in the US. The facility has been in operation since May 2010. To learn more about this project, see its case study.

###

PERC Water Corporation is a water infrastructure company that develops and operates water concession projects. PERC Water has designed approximately 60 water infrastructure projects 20 of which they have constructed and placed into operation. They provide innovative, efficient solutions to water infrastructure needs, utilizing public-private and private-private partnerships to develop mission-critical infrastructure. The companys project portfolio demonstrates how water infrastructure can be developed efficiently and aesthetically to produce reliable, safe water of the highest quality. PERC Water is headquartered in Costa Mesa, California and has offices in San Diego, Sacramento and Phoenix. www.percwater.com.


Ribbon Cutting Ceremony Celebrates Award-Winning Santa Paula Water Recycling Facility

Santa Paula Water Recycling Facility, Ventura County, California

Santa Paula, California, June 8, 2011 Local and regional government officials, members of the local community, and project team members participated in the ribbon cutting ceremony of the award-winning Santa Paula Water Recycling Facility last Thursday, June 2nd. In 2007, the City of Santa Paulas non-compliant, almost 70-year-old wastewater treatment facility faced severe compliance fines and needed to be replaced quickly. However, the City lacked certainty of funding, cost and schedule to achieve its compliance mandate. Realizing traditional delivery methods would not provide adequate certainty, they chose to utilize a public-private partnership. In May 2008, the City contracted with one entity, Santa Paula Water (an alliance of PERC Water Corporation and Alinda Capital Partners), to design, build, operate (for 30 years) and finance the new facility. The facility was completed in May 2010 seven months ahead of schedule. The City of Santa Paulas Mayor Fred Robinson said, It was done very, very, very quickly. Brian Cullen, President of PERC Water, said the City Council wanted certainty for the long term for the citizens of Santa Paula. They were very insightful to have that certainty of compliance, certainty of capacity and certainty of cost for 30 years. Philip Dyk, a Partner at Alinda Capital, said, If the City had taken a more traditional finance route, they would have (had difficulty) trying to raise money, when funds were needed to complete construction within the regulatory timeframe. The facility was 100% privately funded and the City did not pay anything toward the facility until after it was in full operation. They now pay a monthly service fee, which includes 30 years of capital replacements, debt service and operations and maintenance.

David Dornbirer, a Vice President at CoBank, one of the projects lenders, said, This is a first of its kind financing. People all over the country and internationally in the water sector know where Santa Paula, California is because of the innovative nature of this facility and this project. The facility has been the recipient of many national and international awards, including most recently the Design-Build Institute of America Western Pacific Regions top tier Best Project Water Award. The facility is designed to complement the surrounding area, including a small footprint where all treatment occurs in underground tanks covered by attractive operations buildings. Mayor Robinson added the facility produces no odors, specifically thanking the team as the original facility was notorious for its smell. He added that the facility is a wonderful addition to (their) community. Jeff Beecher, Executive Vice President of Layton Construction, the lead project construction firm, said they used as much local labor and subcontractors as possible resulting in about 85% of the labor from the local area. The facility is considered one of the most energy-efficient and cost-effective of its kind in the world according to Dr. Shane Trussell, a leading expert in membrane bioreactors and the projects process design advisor. The City saved on average more than $10,000 a month in the first seven months of operation as a result of the facilitys energy saving technology. The recycled water produced by the facility exceeds the state requirements by 60% on average, much of that a result of the Koch Membranes utilized in the treatment process. Jamie Matthews, Senior Vice President of PACE (the projects engineer of record), said, Engineers often get caught up thinking their job is done when the plans are out, but with a design, build, operate and finance project, their job isnt done for 30 plus years. To learn more about this project and watch the case study video, visit www.percwater.com.

### PERC Water Corporation is a water recycling company that designs, builds, operates and manages water recycling facilities throughout the United States. They have designed more than 55 facilities 20 of which they have designed, built and operated. The company guarantees water of the highest quality and assumes the risks associated with water recycling. PERC Water is headquartered in Costa Mesa, California. For more information, visit www.percwater.com. Alinda Capital Partners is an independent firm that is the largest manager in the United States of pension assets for investment in infrastructure and the third largest in the world, with over $7 billion of assets under management. Alindas investors are predominantly U.S. and European pension funds for public sector and private sector workers, and include some of the largest institutional investors in the world. Funds managed by Alinda have ownership interests in airports including Heathrow Airport in the United Kingdom roads, bridges and a tunnel, a rail service, natural gas distribution utilities, natural gas pipelines and storage, water supply and wastewater treatment, telecommunications networks, water tanks and other infrastructure assets providing essential services to communities. Alinda has invested in infrastructure companies that operate in 30 states in the United States as well as in Canada, the United Kingdom, Germany, the Netherlands, Luxembourg and Italy. These businesses employ approximately 15,000 people and serve over 125 million customers annually in over 400 cities. For more information, visit www.alinda.com. CoBank is a $69 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture and the nation's rural economy. In addition to serving its direct retail borrowers, the bank also provides wholesale loans and other financial services to affiliated Farm Credit associations and other partners across the country. Headquartered outside Denver, Colorado, CoBank serves customers from

regional banking centers across the U.S. and also maintains an international representative office in Singapore. For more information about CoBank, visit the bank's web site at www.cobank.com. Layton Construction Company is a nationally-ranked commercial construction company specializing in construction management, design-build construction and general contracting. Laytons construction projects are found throughout the United States, and cover a wide spectrum of industry sectors, including health care, hospitality, education, office buildings, manufacturing, sewerage and solid waste, sports and entertainment and public safety. The company is a leader in sustainable building practices, with more than half of its 2010 company revenues coming from certified sustainable building projects. Headquartered in Utah, Layton also has regional offices in California, Arizona, Florida, Hawaii, Idaho and Tennessee. Layton is currently ranked as the 64th largest commercial contractor in the country on the Engineering News-Record Top 400 Contractors list. PACE is a specialized civil engineering firm offering advanced water resource services. A wide range of engineering services are offered related to water, wastewater, stormwater management and water resource permitting and regulatory compliance to ensure projects are both economically viable and environmentally sustainable. Koch Membrane Systems, Inc. is a global leader in membrane filtration technology and engineering support for close to half a century. KMS offers a wide range of products and engineering services which span industrial applications in food and life sciences, industrial processes and water & wastewater. As a designer and manufacturer of state-of-the-art membrane elements as well as complete membrane systems, KMS is specified for some of the most demanding applications. KMS offers comprehensive process engineering design, piloting and field service expertise. With an installed base approaching 20,000 systems throughout the world, KMS is setting the standard as a comprehensive solutions provider for membrane technology. See www.kochmembrane.com for more information.


PERC Water Wins Top Award at 2011 DBIA Western Pacific Regional Awards Banquet

The Santa Paula Water Recycling Facility Newport Beach, California, May 27, 2011 PERC Water was awarded a top tier award at 2011 Design-Build Institute of America (DBIA) Western Pacific Regions Awards Banquet last night at the Newport Marriott. They were presented the Best Project Water Regional Award for implementing interdisciplinary teamwork, innovation, and problem solving for the Santa Paula Water Recycling Facility. The DBIA awards honor projects for their advanced and innovative application of total integrated project delivery and finding unique solutions for project challenges. The Santa Paula Facility was recognized for its ground breaking approach to developing water recycling infrastructure, both in its utilization of the Design Build Operate - Finance (DBOF) delivery method and its innovative design. The facility was 100% privately funded without any up front capital cost requirements from the City of Santa Paula, was completed seven months in advance of its mandated compliance deadline, saves approximately 35% in power consumption costs, and produces recycled water that is available for reuse within the community. The Santa Paula Facility was designed, built and is currently being operated by PERC Water. They, in partnership with Alinda Capital, financed the project and it is the first of its type under California Code 5956, allowing for a DBOF delivery method. They were awarded the DBOF contract in May 2008, broke ground two months later, and the new facility began treating 100% of the Citys wastewater in May 2010. The Facility utilizes advanced treatment process technologies incorporating MBR (membrane bio-reactors), aerobic sludge digestion, and UV (ultraviolet) disinfection that produces CA Title 22 compliant effluent. PERC Waters unique design utilizes common wall construction and underground tanks to help achieve a small footprint and maximum odor and noise control.

To learn more about this project, see its case study.

### PERC Water is a water recycling company that designs, builds, operates and manages water recycling facilities throughout the United States. They have designed more than 55 facilities 20 of which they have designed, built and operated. The company guarantees water of the highest quality and assumes the risks associated with water recycling. PERC Water is headquartered in Costa Mesa, California. www.percwater.com.

FOR IMMEDIATE RELEASE: Contact: Marian Clayton PERC Water 714-352-7754 [email protected]

Santa Paula Water Recycling Facility Achieves Final Completion

Santa Paula, California, March 8, 2010 The Santa Paula Water Recycling Facility has received its formal Notice of Final Completion from the City of Santa Paula. Santa Paula Water, the partnership of PERC Water and Alinda Capital Partners, received the notification from the City on February 15, 2011 in response to their October 12, 2010 submission package that demonstrated they had met the agreed upon requirements. Our team is pleased the City of Santa Paula has formally recognized the facilitys completion, said Brian Cullen, President of PERC Water. From the early conceptual stage of the project, we worked closely with the City to ensure the facility not only met the State mandated requirements and brought the City back into compliance, but that it sets a new standard for water infrastructure in technological innovation, fiscal responsibility, and energy efficiency. The facility was designed, permitted, built and commissioned in 23 months, and on May 13, 2010, seven months heads of schedule, the facility began treating the entirety of the Citys wastewater. The recycled water it produced this past January is on average 60% cleaner than the Regional Water Quality Control Board permit requires. In addition, the City saved on average more than $10,000 a month in the first seven months of operation as a result of PERC Waters investment in energy saving technology. The facility is considered one of the most energy-efficient and cost-effective of its kind in the world. To learn more about this project and watch the case study video, visit www.percwater.com.

### PERC Water Corporation is a water recycling company that designs, builds, operates and manages water recycling facilities throughout the United States. They have designed more than 55 facilities 20 of which they have designed, built and operated. The company guarantees water of the highest quality and assumes the risks associated with water recycling. PERC Water is headquartered in Costa Mesa, California. www.percwater.com. Alinda Capital Partners LLC is the worlds largest independent infrastructure firm, with over $7 billion in equity commitments to infrastructure investments. Alindas infrastructure companies serve over 125 million customers annually in more than 250 cities. The companies operate in 18 states in the United States as well as in Canada, the United Kingdom, the Netherlands and Italy, and employ more than 15,000 people. Alindas investors are predominantly pension funds for public sector and private sector workers. These institutions seek steady investments over the long term, matching their pension liabilities and include some of the largest institutional investors in the world. www.alinda.com


Santa Paula Water Recycling Facility Completed Ahead of Schedule and Already Creating Savings

Santa Paula, California, December 15, 2010 The Santa Paula Water Recycling Facility is once again exceeding expectations the facilitys power consumption costs for the first five months of operation are more than 35 percent lower than expected. Initially anticipated to create a 15 percent savings as a result of PERC Water Corporations investment in energy saving technology, the facility began full compliant operation seven months ahead of the states mandated December 15, 2010 deadline and has used more than 35 percent less power than originally expected. John Quinn, the City of Santa Paulas Finance and Public Works Director, said, In this challenging economic environment, California cities are eagerly seeking cost saving opportunities. The City of Santa Paula is enthusiastic about our new water recycling facilitys reduced power costs as it means savings for our citizens over the long term. As a result of the energy saving measures employed at the Santa Paula facility, PERC Water was awarded the 2009 Sustainability and Resource Protection Award by the Environmental Business Journal and a grant through Southern California Edisons Savings by Design program to help fund the energy saving technology. It is imperative that infrastructure become more sustainable and fiscally responsible, said Brian Cullen, President of PERC Water. The technology available in todays market raises the standard for efficiency and the Santa Paula facility demonstrates that investing in these energy saving technologies results in savings to the ratepayers.

The Santa Paula Water Recycling Facility

The 4.2 million gallon per day facility utilizes the most advance treatment technology and was described as world-class by Dr. Shane Trussell, a leading expert in membrane bioreactors and PERC Waters lead advisor for the facilitys process design. Dr. Trussell said, As a result of the teams equipment selection and robust design features, it is one of the most energy-efficient and cost-effective Membrane Bioreactor installations in the world. The majority of the treatment process takes place in tanks beneath the professional operation buildings, making the facility virtually odorless and noiseless with no negative impact on the surrounding community. As a result of this innovative design, the entire facility sits on less than two acres of land. A cascading waterfall and duck pond in the front of the facility is used as storm water runoff storage and future plans for the facility include solar power integration for even more power consumption savings. The water produced by the facility is higher quality than the states stringent quality requirements and is available for reuse within the community. The facility can also be accessed and controlled wirelessly from anywhere in the world on an iPad, iPhone or Smart phone through Central PERC, a web application where all the current and historical data necessary to operate and manage water and wastewater infrastructure is centrally hosted and integrated within one platform. The City of Santa Paula was mandated by the state to replace their 70-year old facility because it had reached the end of its useful life and accrued more than $8 million dollars in compliance-related fines. In May 2008, they awarded Santa Paula Water LLC, a partnership of PERC Water and Alinda Capital Partners, the Design-Build-Operate-Finance contract. PERC Water designed and built the facility and is now operating the facility until 2040. Phil Dyk, Vice President of Santa Paula Water LLC and a partner at Alinda Capital, said, The Santa Paula Water project is the first water recycling facility to use California Code Section 5956 to allow for private investment in essential municipal infrastructure. Alinda is extremely proud to be a part of this groundbreaking project and to be serving the City of Santa Paula, and we congratulate our partner PERC Water for designing, building and operating a state-of-the-art facility that entered service seven months ahead of schedule. We look forward to a long-term relationship with the community as we continue to provide an essential service to all Santa Paulans.

PERC Water and Alindas innovative deal with the City was recognized by Global Water Intelligence and they were awarded the Global Water Awards 2009 Water Deal of the Year Award of Distinction. To learn more about this project and watch the case study video, visit www.percwater.com.

### PERC Water Corporation is a water recycling company that designs, builds, operates and manages water recycling facilities throughout the United States. They have designed more than 55 facilities 20 of which they have designed, built and operated. The company guarantees water of the highest quality and assumes the risks associated with water recycling. PERC Water is headquartered in Costa Mesa, California. www.percwater.com. Alinda Capital Partners LLC is the worlds largest independent infrastructure firm, with over $7 billion in equity commitments to infrastructure investments. Alindas infrastructure companies serve over 125 million customers annually in more than 250 cities. The companies operate in 18 states in the United States as well as in Canada, the United Kingdom, the Netherlands and Italy, and employ more than 15,000 people. Alindas investors are predominantly pension funds for public sector and private sector workers. These institutions seek steady investments over the long term, matching their pension liabilities and include some of the largest institutional investors in the world. www.alinda.com


California Gubernatorial Candidate Meg Whitman Tours Santa Paula Water Recycling Facility

Brian Cullen (PERC Water), Meg Whitman (CA Gubernatorial Candidate) and Phil Dyk (Alinda Capital) tour Santa Paula Water Recycling Facility.

Santa Paula, California, June 30, 2010 California Gubernatorial candidate Meg Whitman toured the recently completed Santa Paula Water Recycling Facility in Ventura County yesterday. After touring the facility, she addressed approximately 150 members of the community and media outlets in front of the facility about job creation. The facility utilized 88% local union labor and employed on average 60 workers per day over the length of the 18 month project. Whitman said the Santa Paula Water Recycling Facility is a great example of how we can use technology and innovation to improve vital services to Californians. This environmentally friendly project will save Santa Paula residents and businesses money. We need more of this imaginative thinking. There is a significant funding infrastructure gap, specifically in water infrastructure, in California and its imperative that both the public and private spheres work together to create innovative solutions to solve that problem, said Brian Cullen, President of PERC Water Corporation, the firm responsible for designing, building, operating and, in partnership with Alinda Capital Partners, LLC, financing the Santa Paula Water Recycling Facility. Meg recognized that the combination of using private funds with an innovative facility design leads to more cost savings for the rate payers, less risk for the municipality and a faster project delivery. Inventive projects like this are what California needs at this critical time. The Santa Paula Water Recycling is the first water recycling facility to be built under Californias Government Code 5956 encouraging private investment to solve public infrastructure needs. The design-build-operate-finance (DBOF) contract was awarded to Santa Paula Water LLC, a company formed by

PERC Water and Alinda Capital, in May 2008 and construction began just two months later. The facility was fully operational in May 2010, 7 months in advance of its compliance deadline, and PERC Water is under contract to operate the facility for 30 years. The City was not responsible for any up front capital costs as a result of the DBOF project delivery method and paid their first service fee this past month after the first complete month of operation. The 4.2 million gallon per day facility replaced the Citys original treatment facility built in 1939. The new facility utilizes advanced treatment process technologies, uses 70% less land than required by a conventionally designed facility, and resembles professional office buildings with completely covered underground processing tanks. The new facility is serving the Citys population of approximately 30,000 people. Santa Paula is located in Ventura County.

### PERC Water is a water recycling company that designs, builds, operates and manages water recycling facilities throughout the United States. They have designed more than 55 facilities 20 of which they have designed, built and operated. The company guarantees water of the highest quality and assumes the risks associated with water recycling. PERC Water is headquartered in Costa Mesa, California. Visit www.percwater.com.

Are Public-Private Partnerships The Wave Of The Future?

A Q&A with Brian Cullen, President, PERC Water

Water Online is proud to introduce the first installment of our Views From The

Top series a monthly interview with a different, high-level member of the

water community. As the industry attempts to navigate a rapidly changing

landscape of government regulations, environmental concerns, aging

infrastructure, and monetary pressure, these authoritative voices are charting

the course for the future.

This month, Water Online spoke to Brian Cullen, president of PERC Water, a

water infrastructure company based in Costa Mesa, CA. Utilizing public-private

partnerships, PERC Water offers municipalities an alternative to the traditional design-bid-build delivery

method. Brian shared with us the characteristics of this emerging approach to community water

management, as well as his thoughts on the many challenges currently facing municipalities in the

United States.

Thanks for participating, Brian. Can you briefly describe the service PERC Water provides to

municipalities?

Were a water infrastructure company that enters into long-term public-private partnership (PPP) and

concession agreements with municipalities to design, construct, and operate facilities for water

recycling. Whether its building a brand new facility or rehabilitating existing infrastructure, we focus on

yielding efficiency to provide the most cost-effective solution to a municipality.

What are the advantages of public-private partnerships?

Given the current state of fiscal affairs within local governments, PPPs and concession agreements

provide a very attractive opportunity to implement water infrastructure projects and monetize

efficiencies with existing infrastructure. For example, a city that currently spends $5 million a year to

operate its wastewater infrastructure may be able to be operated for $4 million a year by implementing

alternative energy solutions, improving energy efficiency, increasing automation, changing sequence of

operation, and various other methods of efficiencies. To the extent the city contracts with our firm for

the same $5 million per year, we can monetize the savings into an upfront cash payment to the city, so

theyre essentially extracting value out of an asset that they didnt know they had. It creates a liquidity

opportunity for the municipality, which they can then use to reinvest, rehabilitate other infrastructure,

or retire debt.

Another way to create liquidity is if the city is willing to in that example increase its operating costs

from $5 million to $6 million, in which case we could monetize $2 million overall. Thats actually a less

desirable approach because the city needs to comfortable with increasing their operating cost. In our

view, the least desirable approach is if the city wants to increase rates to the consumer, which we do

not endorse, particularly in the current economic times.

What obstacles must be overcome in establishing a PPP?

The biggest obstacle is the perceived cost of money. Its just a perception that the cost of money is

significantly higher using private funding than with public funding. The reality is that the capital cost is

going to be lower under a PPP, because youve got to factor the risk value which drives the whole

concept of value for money (VFM).

Deloittes prepared a very good study of VFM, which is the analysis that should occur when a public

agency is comparing a traditional delivery method of design-bid-build using public finance versus a

public-private partnership using private capital. In the PPP model, we assume the risk and provide the

value of certainty for the long term of 30 years.

Its an education process. Cities are very accustomed to the traditional design-bid-build process; its

something that they know and have more control over, per se. Public-private partnerships are still a

relatively new concept in water infrastructure. The GAO (U.S. Government Accountability Office)

prepared a report last year looking into as many examples as they could find, and there were only seven

privately funded wastewater projects since 1992. Education is having continual discussions with both

the cities and the communities, to help them understand the whole picture and the advantages of PPPs.

Can you cite specific advantages to the community?

Beyond just the PPP transaction, there are a variety of socioeconomic benefits to the community. Job

creation is perhaps the greatest benefit, as jobs can be created more quickly under a PPP due to the

rapid availability of capital and by implementing fast-track project delivery. And then there is the

multiplier effect of local jobs within the local economy. There are also the sales tax revenues that are

generated from performing the project, as well as the potential to generate revenue from recycled

water more quickly. Its like a mini stimulus program, in a rapid manner.

We also think that its critical under a public-private partnership that the city and the municipality

continue to be the face of the utility, and be the service provider to the ratepayers. Thats their public

service and thats what they do very well. Under our model, the municipality continues to have control

over their assets and their costs, set rates, and perform billings and collections. There is mandatory

reversion of the assets back to the municipality at the end of the term. Some people think PPPs are

privatization, but they are different arrangements.

Another concern, both on the government and community level, is sustainability. How do you address

this?

Were always seeking efficiencies and better ways of doing what we do, and were not hooked to any

one technology were just always trying to find a better way to perform our service. We do focus on

sustainability, but its all tied together. For example, we have a very small facility footprint and all of our

designs are built on the same concept tanks underground, operation buildings on top which

reduces the facility footprint by 70%. And that results in financial savings to the cities and ratepayers,

and its part of what we call our Total Solution. At the end of the day, the main goal is to produce the

highest water quality that meets all regulatory requirements and is affordable for the city and its

ratepayers. Our founder, Johan Perslow, started PERC Water based on the philosophy that everything

we do has to be in the best interest of nature, and it has to be the in the best interest of our client.

Considering the state of the economy and water infrastructure in the U.S., do you think public-private

partnerships will proliferate and become a trend in the industry?

How else are we going to fund all of this mission critical infrastructure? We live in a country that has

aged infrastructure out there and very little liquidity, if any, with the local government. We can defer

these projects, which means we dont have to spend the money, but then we are deferring the

inevitable and cities are losing out on the socioeconomic benefits. For example, we are looking at a

project now that is projected to take six years to complete. We can complete it in three years, start jobs

now, and produce recycled water three years earlier than the current plan.

Can you point to any recent examples as cases in point?

In the city of Santa Paula, CA, we entered into a public-private partnership with the city that received

recognition for allowing the municipality to build water infrastructures that it couldnt have afforded

otherwise, particularly given the regulated mandates the city need to comply with. The efficiencies that

we are able to realize in Santa Paula yielded more than 35% savings in terms of actual energy costs. It

saved a significant amount of money for the city, because we share those savings with the city. So its

beneficial to us because were operating in that space for 30 years, and its obviously beneficial for them

because of the money saved.

Were also working with a group right now on trading recycled water that we produce from our plants to

create a revenue stream for the municipality. Currently, most recycled water is recharged into the

ground or used to irrigate a golf course. Meanwhile, another project we are working on presently is

willing to pay a $1,000 an acre-foot for recycled water, which could generate $5 million per year of

revenues. These revenues would reduce the operating costs of the facility down to $3 million per year,

resulting in sewer rates being cut in half.

Thanks for sharing, Mr. Cullen. I think many municipalities find themselves in a tough spot, and youve

shed light on an option worth consideration.

Thank you. I hope this will help educate many cities about the benefits of PPPs. We all know that

options for local government are limited, and waiting for grants or low-interest loans from the state or

federal government will result in delayed projects, delayed compliance, delayed job creation, and

delayed recycled water revenue. PPPs can change all of that.

National P3 Council Singles Out Santa Paula Wastewater Plant for Innovation | ENR: Engineering News Record | McGraw-Hill Construction

http://california.construction.com/california_construction_projects/2011/0825-nationalp3councilsinglesoutsantapaulawastewaterplantforinnovation.asp[8/29/2011 5:09:56 PM]

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National P3 Council Singles Out Santa Paula Wastewater Plant forInnovation08/25/2011

Californias first true public-private partnership wastewater treatment plant in Santa Paula, Ventura County, will accepta P3 innovation award from the National Council for Public-Private Partnerships in an awards banquet in Tampa Oct.4.

The project was put together in 2008 by the city of SantaPaula and a joint venture Santa Paula Water LLC, whichis comprised of PERC Water Corp., Costa Mesa, andAlinda Capital Partners, Greenwich, Conn. LaytonConstruction, Irvine, was the prime subcontractor andPACE Engineering, Redding, was the engineer of record.

Santa Paulas original wastewater treatment facility, builtin 1939, was out of compliance and needed replacement,but the city did not have sufficient funds to pay for a newfacility, according to PERC Water. The Regional WaterQuality Control Board mandated a tight completion andcompliance deadline or the city would be required to paymore than $8 million dollars in fines.PERC Water spokeswoman Marian Clayton Clark saidthat due to the short timeline and cost-savingopportunities, Santa Paulas city council cancelled itstraditional design-bid-build process and moved theproject forward using the design-build-operate-finance

procurement process for its new facility. The contract runs for 30 years.PERC Water contends that the design of the recycling plant blends in well with the surrounding community and utilizesa footprint of less than 2 acres, space which includes a 12,162-square-foot treatment facility and conceals a nearly 5.2million gallon underground tank.

The recycling plant itself is designed for 3.4 million gallons per day (MGD) with expandability to 4.2 MGD. The planthas all new utilities, including fire, water, power, cable and gas, as well as features including an influent sewer liftstation, three digester tanks, three anoxic tanks, three aerobic tanks, a UV disinfection tank and system, a foamcontrol system, two-flow equalization tanks and a membrane bioreactor. The plant also includes administrationbuildings, including a control building with office space, lockers and restrooms, conference rooms, a receiving areaand a headworks building, which will contain above-ground equipment as well as an odor control system. The effluentwill be released from the plant and recycled into adjacent percolation ponds.

The plant opened its doors in May 2010.

Keywords: Public-Private Partnership; Santa Paula; Wastewater; Treatment; Award


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NEWS PROJECTS TOP LISTS CITIES EVENTS DODGE REPORTS FIRMS PEOPLE OPINIONS PHOTOS RESEARCH

http://www.wef.org/publications/page_wet.aspx?id=10774&page=news 2011 Water Environment Federation. All rights reserved.

An innovative partnership The City of Santa Paula, Calif., partners with the private industry to build an energy-saving WWTP

WE&T August 2011

The Santa Paula (Calif.) Water Recycling Facility, originally anticipated to reduce energy consumption by 15%, now is more than 35% energy-efficient than the citys original wastewater treatment plant. Craig Mailloux

It has been more than a year since the completion of the new Santa Paula (Calif.) Water Recycling Facility, an energy-efficient, 15,900-m3/d (4.2-mgd) wastewater treatment plant (WWTP).

Not only did the facility come on-line 7 months early, but it also has exceeded expectations in its energy efficiency and cost savings, according to Marian Clayton, director of marketing at PERC Water, a private water recycling company that built, manages, and operates the facility.

The initial expectation was to reduce energy consumption by 15% compared to the citys original WWTP, but that was before we had actually run the facility, Clayton said. Now that the facility has been up and running for almost a year, we found that it has been on average more than 35% more energy-efficient than we anticipated.

According to a March 2010 PERC Water press release, because of the facilitys energy-saving technologies, such as its membrane scouring system and lighting design, the city saved on average more than $10,000 a month during the first 7 months of operation.

A unique problem with a creative solution

The City of Santa Paula built its new water recycling facility because it was mandated by the state to replace its 70-year-old WWTP. The plant had reached the end of its useful life and accrued more than $8 million in compliance-related fines, according to a December 2010 PERC Water press release.

The city, for some years before, had tried to procure the [new] project through a design-bid-build scenario, explained Bob Nespeca, vice president of asset management at PERC Water. With this delivery method, the city would have supplied all the funding, hired an engineering firm to design plans, and later had contractors bid on the project, with the project going to the lowest bidder. But because of financial constraints and the

http://www.wef.org/publications/page_wet.aspx?id=10774&page=news 2011 Water Environment Federation. All rights reserved.

sinking economy, the city just came to the realization that they did not have the financial wherewithal to complete the project, nor did it have the staffing to do so, he said.

So the city came back to the marketplace with a modified approach known as a design-build-operate-finance contract, Nespeca explained. This is how PERC Water, along with the independent infrastructure-funded firm, Alinda Capital Partners LLC (New York), became involved.

The Santa Paula facility is the first of its kind to be built under California Government Code Sec. 5956,which permits the use ofprivate investment to build, operate, and maintain public infrastructure. The City of Santa Paula created a publicprivate partnership with Santa Paula Water, which is an alliance between PERC Water and Alinda. Under the partnership, Santa Paula Water agreed to finance construction of the facility through private equity as well as operate it.

This unique project delivery method has proven to be a success for all parties involved, Clayton said.

The way the deal works is for 30 years the facility is owned by a private company and is paid for by the city through a service fee, Nespeca said. That service fee covers the operational costs of the facility, capital replacements, and the capital reimbursement of the original construction. So at the end of the 30 years, the city becomes with no money down the owner of the facility.

Clayton said the new delivery method has taken some getting used to for everyone involved.

This was something that was new that hadnt really been done with this type of infrastructure, and it hadnt been done before in California, Clayton said. So the biggest struggle with this project has been educating and continuing to educate people about the [design-build-operate-finance] structure.

Smooth sailing

Though adapting to the new delivery method was challenging, the construction itself went a lot smoother.

Clayton said construction began in July 2008, was completed by December 2009, and the facility was at full flow by May 13, 2010.

The date we had contracted to have it up and running was Dec. 15, 2010, Clayton said. So we finished 7 months in advance.

The new facility includes an energy-saving lighting system that incorporates natural lighting, LED lamps, mercury-vapor exterior lights, and electronic ballasts for fluorescent lamps, light sensors, and automatic dimming devices. Also, because membrane scouring and aeration usually account for nearly half of a WWTPs power consumption, the company chose energy-efficient equipment for these systems.

Nespeca said the team decided to go with a different blower than it had originally chosen for the project. It was an upgrade, he said. It was just more efficient equipment that burned less power.

The planners also decided to incorporate green infrastructure. The decorative water feature in front of the facility is actually a stormwater retention basin, Nespeca said.

This type of green infrastructure is sort of a trademark of all projects we do, Nespeca said.

Nespeca said PERC Water also hopes to eventually incorporate solar energy at the facility by installing solar arrays near the plant.

This land is available because the city had anticipated a much larger footprint [for the plant], Clayton explained.

So far the wastewater treated at the facility is being sent into the ground through percolation ponds, Nespeca said. Santa Paulas effluent is California Title 22 certified so it can be used for various industrial uses, he explained. Nespeca added that the city is in the process of designing a reuse system that will include storage tanks and pumps. The reuse system will use the water to irrigate citrus and avocado groves throughout Ventura County.

LaShell Stratton-Childers , WE&T

FRIDAY, JUNE 3, 2011 NEW

PERC Water awarded a top tier award PERC Water was awarded

a top tier award at 2011 Design- Build Institute of America (DBIA) Western Pacic Regions Awards Banquet last night at the Newport Marriott. They were presented the Best Project - Water Regional Award for implementing interdisciplinary teamwork, innovation, and problem solving for the Santa

Paula Water Recycling Facility. The DBIA awards honor

projects for their advanced and innovative application of total integrated project delivery and nding unique solutions for project challenges. The Santa Paula Facility was recognized for its ground breaking approach to developing water recycling infrastructure, both in its

utilization of the Design - Build - Operate - Finance (DBOF) delivery method and its innovative design. The facility was 100% privately funded without any up front capital cost requirements from the City of Santa Paula, was completed seven months in advance of its mandated compliance deadline, saves approximately 35% in power consumption costs, and produces recycled water that is available for reuse within the community.

The Santa Paula Facility was designed, built and is currently being operated by PERC Water. They, in partnership with Alinda Capital, nanced the project and it is the rst of its type under California Code 5956, allowing for a DBOF delivery method. They were awarded the DBOF contract in May 2008, broke ground two months later, and the new facility began treating 100% of the Citys wastewater in May 2010.

The Facility utilizes advanced treatment process technologies incorporating MBR (membrane bioreactors), aerobic sludge digestion, and UV (ultraviolet) disinfection that produces CA Title 22 compliant efuent. PERC Waters unique design utilizes common wall construction and underground tanks to help achieve a small footprint and maximum odor and noise control.

Ed York Joins Century 21 Buena VistaEd York is a long time real

estate agent and has joined Century 21 Buena Vista and will be working from both the Ventura and Santa Paula ofces.

A resident of Santa Paula, Ed was born and raised in a suburb of Boston, Massachusetts.

He moved to Ventura in 1986 to enjoy living in the wonderful mild climate and re-establish his photography business, Images by York, which specialized in architectural photography.

Over the next 15 years he provided real estate agents, real estate companies and real estate publications with quality photographs and outstanding service. In 2000 he joined Re/Max Gold Coast Realtors and within a year was promoted to ofce manager for one of the owners. Three years later he decided to take on the challenge of being a full-time real estate agent.

Since then he has a proven record of providing his clients,

both buyers and sellers, with honest, reliable and outstanding service.

He is likely a familiar face around town because of his passion and expertise at holding open houses and making new properties accessible to buyers.

Ed is the caliber of agent real estate companies are excited to welcome into the family. Eds maturity and good view of life is an asset to the industry as well as to our ofce, said Kay Wilson-Bolton, owner of Century 21 Buena Vista.

Ed is a member of the Ventura County Coastal Association of REALTORS, the and the Ventura County Regional Data Share which now has a coverage from Ventura County to San Diego counties.

Color photos

EDITORSFOCUS

24 MAY 2011 t8"5&38"45&4%*(&45

DBOF DeliversT he city of Santa Paula, Calif., faced a challenge that is common to many municipalities: Its wastewater treatment facility was out of compliance and needed replacement, and the city did not have sufficient funds to pay for a new facility. Additionally, the Regional Water

Quality Control Board (RWQCB) mandated a tight completion and compliance deadline that

if not met would cost the city more than $8 million in fines.

By Marian Clayton

California city builds new

wastewater facil ity

Project Delivery Solution Santa Paula is located just north of Los Angeles in

Ventura County, and it has a population of approxi-mately 30,000. The citys original wastewater facility was built in 1939. Despite several upgrades and modi-fications, it did not comply with state requirements and had reached the end of its useful service life. The RWQCB agreed that if the city could come into com-pliance by Dec. 15, 2010, the board would waive the $8 million in fines.

The city initially chose the conventional design-bid-build approach funded by public tax-exempt municipal bonds to build the new facility. After years of work and significant financial commitments into engineering studies, however, the city council and staff realized that this method would not meet their tight time-line or budget requirements. In July 2007, the city council approved the design-build-operate-finance (DBOF) method of procurement and began a request for quotes/request for proposals selection process for the new facility.

Santa Paulas Vice Mayor Bob Gonzales was mayor at the time the DBOF contract was signed. The cost of doing business was significant for us, he said. We had to build a new wastewater treatment facility, and we did not have the necessary funds. The DBOF delivery method gave the city a lot more latitude, and the risk was transferred to the com-pany who was doing the work.

In May 2008, the city council awarded the DBOF contract to Santa Paula Water LLC, a joint venture of PERC Water Corp. and Alinda Capital Partners.

DBOF Project StructurePERC Water, a water recycling company that

designs, builds, operates and manages water recycling facilities, teamed with Alinda Capital Partners, an inde-pendent investment firm that specializes in infrastruc-ture investments, to form Santa Paula Water. As per-mitted under CA Government Code 5956, Santa Paula Water entered into a service agreement with the city to design, build, operate and finance the new facility over a 30-year concession, the longest such agreement for wastewater treatment services in the U.S.

The facility was 100% privately funded, and the city was not required to pay any upfront capital costs toward the design and construction. Once the facility was in full operation, the city began paying a monthly service fee that includes facility operations and main-tenance, debt service, capitalized interest during con-struction and 30 years of capital replacements. The city made its first payment toward the facility in July 2010.

PERC Water and Alinda were presented the Global Water Awards 2009 Water Deal of the Year Award of Distinction for their contribution to the advance-ment of public-private partnerships in the interna-tional water sector, specific to this DBOF contract.

Facility Design OverviewPERC Water developed a membrane bioreactor

(MBR) process design in which the majority of the treatment occurs in underground tanks. The tanks require approximately three-quarters of an acre of land and are built mostly below the existing grade. The tanks utilize common wall construction, requir-ing a total volume of 7,000 cu yd of concrete and less yard piping and conduits. The operations buildings are constructed above the tank structure, reducing land requirements, and contain the process equipment, a laboratory, restrooms, workshop, break rooms and administrative offices. The covered tanks and noise and

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odor controls makes the facility neighbor friendly and a positive addition to the surrounding community.

The facility was designed to be built in two phases, allowing for an efficient expansion when additional capacity is required. The tank structure was con-structed for both Phase I and Phase II at 4.2 mil-lion gal per day (mgd) average dry-weather flow. It is equipped with the equipment needed to treat 3.4 mgd, serving a maximum population of approximately 42,500. When it becomes necessary to expand the capacity, additional equipment will be installed in the facility, increasing the rated capacity to 4.2 mgd, serv-ing a population equivalent of approximately 52,500. This helps to keep operation and maintenance costs as well as future construction costs at a minimum.

The effluent is treated to a tertiary level meeting Title 22 requirements and present requirements of the RWQCB. It currently is disposed of in 13 acres of percolation ponds located to the east of the new facil-ity. The city is drafting an alternate-use plan for the recycled water to reclaim and reuse it as an additional revenue stream.

Facility ConstructionPERC Water began the engineering of the project

on May 6, 2008, following completion and approval of its 30% design, which was submitted to the city as part of PERC Waters proposal. The combina-tion of the facilitys design and PERC Waters inte-grated design-build-operate team allowed the flexibil-ity to start construction two months into the design. Concurrent to the construction, construction draw-ings and documents were prepared for future compo-nents of the work in a fast-track approach. Work on the tank structures commenced in September 2008 and was completed in January 2009. Construction of the project was completed in December 2009.

Ive never known of a municipal project to be completed on time, Gonzales said. Ive been involved in a number of different organizationscommunity college district, city school districtswhere finishing six months after the projected

completion date is considered a success. This proj-ect was completed not just on time but seven months early, and I give credit to PERC Water and their team for getting the job done.

Change orders accounted for less than 1.7% of the construction cost, most of which included additional work requested by the city. More than 85% of the construction hours devoted to the facility were from local union workers. The project required 180,000 man-hours and boasted no loss-time accidents.

After completion of construction, PERC Water commenced electrical, mechanical, equipment instal-lation, controls, programming, testing, commis-sioning and startup. In May 2010, seven months in advance of its Dec. 15 compliance deadline, the facil-ity took full flow from the city, successfully terminat-ing the use of the original facility.

Operational EfcienciesBecause the DBOF contract stipulated that PERC

Water would operate the facility for 30 years, the company invested its own funds in design enhance-ments during construction to reduce energy consump-tion costs. These energy-efficient features included an energy-efficient membrane scouring and aeration system, a smart controlling system and an innovative lighting design.

In the first five months of the facilitys operation, the power consumption costs have been approximately 35% lower than expected. The energy savings are split 50/50 with the city. The savings are significant for the city of Santa Paula, but also for the ratepayers, Gonzales said. The benefactors are the ratepayers.

As a result of the energy-saving measures employed at the facility, PERC Water was awarded the 2009 Sustainability and Resource Protection Award by the Environmental Business Journal and a grant through Southern California Edisons Savings by Design program to help fund the energy-saving technology.

High-Quality Water for ReuseBeginning May 13, 2010, the facility has been fully

operational, treating all of the citys wastewater, and in compliance with the RWQCBs waste discharge permit for what the facility is intended to treat. Table 1 (see page 24) shows the facilitys water quality results for the month of October 2010. The city is developing a reuse plan for the effluent produced by the facility to be used within the community. 88%

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Water aNd WasteWater//state oF the seCtor

WIth FederaL aNd state governments mandating greener

initiatives, cities are facing scrutiny to remain compliant with

current laws. In 2007, Santa Paula, Calif., was given a state

government mandate with a December 2010 deadline to

upgrade its water recycling plant. Public monies were scarce and

the municipal bond market at the time did not look promising.

To fulfill the court order, the city would have to upgrade

a facility that had not been improved since 1939, while facing

more than $8 million in compliance-related fines. To solve its

conundrum, Santa Paulaknown to some as the Citrus Capital

of the Worldopted to use a design-build-operate-finance

(DBOF) delivery system under California Code 5956, which

encourages private investment in public infrastructure.

aMerICas FIrst prIVateLY FINaNCed pLaNt

PERC Water Corp. won the contract, along with Greenwich,

Conn., private-equity firm Alinda Capital Partners LLC, mak-

ing the Santa Paula Water Recycling Facility the countrys first

privately funded water recycling plant.

According to the 2009 Global Water Awards, given that

U.S. municipalities are scrambling to cover budget gaps with

declining tax revenue, private-sector funding is an attractive

option. The Santa Paula deal was a groundbreaking transaction

that can be emulated across the United States.

Although serving the public, the Santa Paula Water

Recycling Facility is privately owned (Alinda owns 90 percent;

PERC owns 10 percent). PERC leases the land and receives pay-

ment for treating and recycling the citys wastewater.

Its not a conventional design-build delivery method, says

Brian Cullen, president of PERC Water.

However, working with municipalities is one of PERCs spe-

cialties. The Costa Mesa, Calif.based company has designed

more than 55 facilities, 20 of which were design-build-operate.

Working with a municipality was a natural progression for

us, Cullen says. On many previous projects, we would part-

ner with a large developer to put the infrastructure in under a

DBO-type contract using private financing and we would be

part of the development agreement between a municipality and

developer. These projects were using private money, except it

was private money from developers as opposed to private money

from infrastructure funds.

PERC is particularly proud of the fact that the Santa Paula

projecta 30-year contract for PERCwas completed seven

months ahead of the states deadline.

When a company does a design-build project by itself

without the operations component, they are less likely to invest

their own capital into the project to lower the operating cost

for the next 30 years, Cullen says. A design-builder is not

going to be there to realize those savings in the future. When

we design-build a facility, we design and build for the long-term

by focusing on the life cycle costs of the project, 30 years in

the case of PERC Waters Santa Paula project. We dont think

about just the design-build phase, because we have to manage

that asset for 30 years.

reduCINg poWer CoNsuMptIoN

One of the key goals of the redesign was to reduce power usage.

In the evaluation phase, Juergen Nick, vice president of

design for PERC, says the firm focused on high-powered equip-

ment, such as aeration blowers and disinfectors.

For odor control, Nick says, PERC was ionizing the air

within the building, then blowing it into the lift-station equal-

ization tanks. To deplete the hydrogen sulfate, he says, PERC

scrubbed it out through a carbon scrubber.

For the carbon scrub, we went with a different system

that had lower head loss, which is directly proportional to

By fred Minnick

Santa Paula, Calif. was given a state-government mandate to upgrade its water recycling plant. It did so before the December 2010 deadline.

Water perCsa caLIfornIa fIrM BUILDS thE fIrSt prIVatELY fUnDED WatEr rEcYcLInG facILItY.

KIPHVYN ZWYPUN

power consumption, says Nick. Odor control doesnt sound

like much, but it runs 24/7. So, you rack it up over the entire

year and small loads really become quite a burden on your

power bill.

The facility now uses 35 percent less power than expected.

Furthermore, according to PERC, the companys activated

sludge process membrane bioreactor (ASP MBR) design had

numerous efficiencies that resulted in lower life-cycle cost.

PERCs project overview indicates the 32,000-tank area freed

up five acres of land and required less yard piping. The 13 acres

of percolation ponds allowed half the basins to accept flow while

the other half dried for maintenance. In addition, the Koch

Puron Membranes used saved up to 15 percent in wastewater

treatment power consumption.

Koch Membrane scouring was far superior than anything

else that was on the market, Nick says.

After all these improvements, PERC saved Santa Paula

more than 5.8 million kilowatt hours a year. That is just one of

the reasons the project has been showered with environmental

awards, including the Global Water Awards 2009 Water Deal

of the Year distinction and a Southern California Edison grant.

The capital cost was lower than what they were considering

and energy savings became phenomenal, Cullen says. But, he

adds, education is key to showing the energy savings benefits.

Whether its education on the structure of how you put the

DBOF deal together or education on the socioeconomic aspects

of water recycling, its one big education process, Cullen says.

Recycling is a responsibility. We dont even like to call it waste-

water, because we dont want to waste the water.

the Water treNd

According to the World Water Council think tank, more

than one out of six people lack access to safe drinking

water. In part because of this global water crisis, Cullen sees

water recycling projects becoming a hot-button issue

for municipalities.

He says this privately funded, design-build-operate delivery

method offers four benefits: Municipalities get in compliance;

private funding eases the financial burden for municipalities;

jobs are created; and water is saved.

Approximately 1.5 billion gallons a day of treated waste-

water flows into the Pacific, Cullen says, and there is water

scarcity throughout California. Your first objective should be

to stop putting wastewater in the ocean, he says. If we can

deploy privately funded water recycling facilities under this

DBOF model, it creates a new supply of water in an expe-

dited manner. Now, youve just eased the pressure on the

water supply.

In addition to water, Cullen believes, PERCs private financ-

ing methods for cities could be used more.

Its not a pioneering structure by any means; privately

funded infrastructure has been around a long time, such as in

the waste-to-energy sector, he says. Its just that it hasnt been

applied to the water and wastewater space very often.

frED MInnIcK IS a natIonaL JoUrnaLISt Who coVErS a WIDE ranGE of

SUBJEctS. hIS WorK haS appEarED In DBIaS DatELInE MaGaZInE, aS WELL

aS ManY othEr pUBLIcatIonS. VIEW hIS WorK at frEDWrItE.coM.

Project: Santa Paula Water Recycling Facility, Santa Paula, Calif.

Players: PERC Water Corp. and Alinda Capital Partners LLC

Achievement: The project was completed seven months ahead

of the deadline and kept to a tight budget in tough times.

sN

ap

sh

ot

/

The Santa Paula Water Recycling Facility became the countrys irst privately funded water recycling plant.

Recycling Facility Benefits from Energy Efficient Processes - WaterWorld

http://www.waterworld.com/index/display/article-display/8815035635/articles/waterworld/wastewater/2011/april-2011/recycling-facility-benefits-from-energy-efficient-processes.html[3/31/2011 12:05:16 PM]

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Recycling Facility Benefits from Energy Efficient Processes

In the current environment of rising energy costs, municipalities are under pressure to reduce power consumption whilecontinuing to maintain the quality and efficiency of public infrastructure. The City of Santa Paula, CA, faced this challengewhen it became necessary to replace its noncompliant wastewater treatment facility.

As a result of an investment in energy-efficient technology, the city's new facility power consumption costs for the first fivemonths of operation were more than 35 percent lower than expected.

Santa Paula is located in Ventura County and has a population of approximately 30,000. Its original wastewater treatmentfacility was built in 1939 and had accrued more than $8 million dollars in compliance related fines. The Regional Boardagreed that if the city could come into compliance by a certain date, they would waive the fines.

Although originally choosing the conventional design-bid-build approach, after years of work and funding engineeringstudies, the City Council and staff realized this method would not meet their tight timeline or budget requirements. In July2007, the City Council approved the design-build-operate-finance (DBOF) method of procurement and in May 2008, theCity Council awarded the DBOF contract to Santa Paula Water, LLC, a joint venture of PERC Water Corp. and AlindaCapital Partners.

Energy-efficient high speed turbineblowers provide air for the plant'smembrane scouring and aerationsystems.

PERC Water began project engineering on May 6, 2008, the day after the DBOF contract was signed, and commencedconstruction two months later. Construction was completed in December 2009 and on May 13, 2010, seven months inadvance of its December 15 compliance deadline, the facility took full flow from the city.

Facility Design

PERC Water designed a 4.2 mgd membrane bioreactor (MBR) facility where the majority of the treatment occurs inunderground tanks. The tanks require approximately three-quarters of an acre of land and are built mostly below theexisting grade. The tanks use common wall construction, requiring a total volume of 7,000 cubic yards of concrete and lessyard piping and conduits. The operations buildings are constructed above the tank structure, reducing land requirements,and contain the process equipment, a laboratory, administrative offices, etc. The covered tanks and noise and odor controlsmake the facility neighbor-friendly and a positive addition to the surrounding community.

The wastewater is treated to a tertiary level meeting Title 22 requirements and is currently discharged to 13 acres of

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percolation ponds located to the east of the new facility. However, the city is drafting an alternate use plan for the recycledwater to reclaim and reuse it as an additional revenue stream.

Energy Efficiencies

The contract stipulated that PERC Water would operate the facility for 30 years. Because the company is responsible for thefacility's long-term operations and maintenance, they designed and constructed the facility to control and minimize energyconsumption costs and deliver the smallest environmental footprint possible.

PERC Water invested their own funds beyond the contract cost in design enhancements during construction to reduceenergy consumption costs. It paid off - in the first five months of the facility's operation, power consumption costs wereapproximately 35 percent lower than expected. The energy savings are split 50/50 with the city.

The Santa Paula water recycling facility

The Santa Paula water recycling facility was built using adesign-build-operate-finance procurement.

Energy-efficient features included:

UV Disinfection - The facility uses the Degremont Technologies' Aquaray 3X UV Modules which are equipped withamalgam lamps for UV disinfection. Amalgam lamps are the most energy efficient lamps for generating ultra violet light atthe high power density required. Additionally, the control system can vary the lamp output to precisely meet the UV doserequirements for disinfection, minimizing the electrical consumption.

Membrane system - The MBR technology combines biological wastewater treatment and membrane filtration into one unitprocess, producing a consistently high quality effluent in an extremely compact footprint. PERC Water incorporated KochMembrane Systems' single header PURON membrane filtration modules into the MBR design because they are energyefficient and provide significantly lower lifecycle costs.

Aeration system - As membrane scouring and aeration account for nearly half of a facility's power consumption, PERCWater selected energy-efficient air production and usage systems. Most noticeable are the facility's K-Turbo High SpeedTurbine blowers which are used throughout the facility's various process areas. The blowers' internal variable frequencydrives allow operators to control, monitor and specifically adjust the air flow for aeration over a wide range of operations.

Smart control system - The Supervisory Control and Data Acquisition (SCADA) system developed by PERC Water has theunique ability to gather, display, track and store live data generated by the facility. In an effort to optimize energyconsumption, the system is designed to consistently update operators on the exact status and measurements of all of thefacility's processes such as air flow, water flow and tank capacity and will notify operators of abnormal conditions directly tothe operator's cell phone.

The SCADA system is accessed through Central PERC, a web application where all the facility's current and historicaloperational data is integrated within one platform that can be accessed and controlled wirelessly from an iPad, iPhone,Droid or any other web-capable device.

The 4.2 mgd MBR facility discharges to 13 acres of percolation ponds

The 4.2 mgd MBR facility discharges to 13 acres of percolationponds.



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Lighting design - Using a combination of natural lighting, LED lamps, electronic ballast for fluorescent lamps, light sensorsand automatic dimming devices, the facility exceeded the state's Title 24 energy-efficiency requirements and SouthernCalifornia Edison's stringent standard.

As a result of the energy saving measures employed at the facility, PERC Water was awarded the 2009 Sustainability andResource Protection Award by the Environmental Business Journal and a grant through Southern California Edison's"Savings by Design" program to help fund the energy saving technology.

John Quinn, the city's Finance and Public Works Director, said, "The City of Santa Paula is enthusiastic about our newwater recycling facility's reduced power costs as it means savings for our citizens over the long term."

Vice Mayor Gonzales likewise said, "The savings are significant for the City of Santa Paula. In the end, the benefactors arethe rate payers."

"It is imperative that infrastructure become more sustainable and fiscally responsible," said Brian Cullen, President of PERCWater. "The technology available in today's market raises the standard for efficiency and the Santa Paula facilitydemonstrates that investing in these energy saving technologies results in savings to the ratepayers."

Dr. Shane Trussell, a leading expert in membrane bioreactors and PERC Water's lead advisor for the facility's processdesign, described the facility as "world-class." He said, "As a result of the team's equipment selection and robust designfeatures, it is one of the most energy-efficient and cost-effective membrane bioreactor installations in the world."

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Learn more about this project at: www.percwater.com.

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Water World Article Categories:

Drinking Water EnvironmentalWastewater World RegionsStormwater / Urban Water Products & ServicesWater Utility Management Current Issue

Wastewater Reuse

In the current environment of rising energy costs, municipalities are under pressure to reduce power consumption while continuing to maintain the quality and efficiency of public infrastructure. The City of Santa Paula faced this challenge when it became necessary to replace its noncompliant wastewater treatment facility.

As a result of an investment in energy-efficient technology, the new facilitys power consumption costs for the first five months of operation are 35% lower than expected.

Project history Santa Paula is located in Ventura County, California and has a population of approximately 30,000. Its original wastewater treatment facility was built in 1939 and had accrued more than US$ 8 million dollars in compliance related fines. The Los Angeles Regional Water Quality Control Board (LARWQCB) agreed that if the city could come into compliance by a certain date, they would waive the fines.

Although originally choosing the conventional design-bid-build approach,

after years of work and funding engineering studies, the city council and staff realized this method would not meet their tight timeline or budget requirements. In July 2007, the council approved the design-build-operate-finance (DBOF) method of procurement and in May 2008, awarded the DBOF contract to Santa Paula Water LLC, a joint venture of PERC Water Corporation and Alinda Capital Partners.

PERC Water began the engineering of the project on 6 May 2008, the day after the DBOF contract was signed, and commenced construction two months later. Construction was completed in December 2009 and on 13 May 2010, seven months in advance of its 15 December 2010 compliance deadline, the facility took full flow from the city.

Facility DesignPERC Water designed a 4.2 million gallon per day membrane bioreactor (MBR) facility (see description page 18), where the majority of the treatment occurs in underground tanks. The operations buildings are constructed above the tank structure, reducing land requirements, and contain the process equipment, a laboratory, administrative offices, etc. The covered tanks and noise and odor controls makes the facility neighbor-friendly and a positive addition to the surrounding community.

The facility is in compliance with the LARWQCBs waste discharge permit for what the facility is intended to treat. The wastewater is treated to a tertiary level meeting Title 22 requirements and is currently disposed in 13 acres (5.26 ha) of percolation ponds located to the east of the new facility. The city is drafting an alternate use plan for the recycled water to reclaim and reuse it as an additional revenue stream for the City.

Energy EfficienciesThe contract stipulated that PERC Water would operate the facility for 30 years. Because the company is responsible for the long-term operations and maintenance costs of the facility, it designed and constructed the facility to control and minimize energy consumption costs and deliver the smallest environmental footprint possible. PERC Water invested its own funds beyond the contract cost in design enhancements during construction to reduce the energy consumption costs.

It paid off. In the first five months of the facilitys operation, the power consumption costs have been approximately 35% lower than expected. The energy savings are split 50/50 with the city.

These energy-efficient features included:

UV Disinfection The facility uses the Degremont Technologies Aquaray 3X UV Modules which are equipped with amalgam lamps for UV disinfection. Amalgam lamps are the most energy efficient lamps for generating ultra violet light at the high power density required. Additionally, the control system can vary the lamp output to precisely meet the UV dose requirements for disinfection, minimizing the electrical consumption.

Membrane system The MBR technology combines biological wastewater treatment and membrane filtration into one unit process, producing a consistently high quality effluent in an extremely compact footprint. PERC Water incorporated Koch Membrane Systems single header Puron membrane filtration modules into the MBR design because they are energy efficient and provide significantly lower lifecycle costs.

Santa Paula: A case study in energy efficiencyMarian Clayton, PERC Water, USA

Editors noteSometimes when a wastewater treatment works is found to be in non-compliance with regulations this can be the spur to producing a revamp which suddenly becomes a model for others to follow. Such is the case with the City of Santa Paula in California. As a result of the revised wastewater plants equipment selection and robust design features, it is now one of the most energy-efficient and cost-effective membrane bioreactor installations in the world.

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Wastewater Reuse

Aeration system As membrane scouring and aeration account for nearly half of a facilitys power consumption, PERC Water selected energy-efficient air production and usage systems. Most noticeable are the facilitys K-Turbo High Speed Turbine blowers, which are used throughout the facilitys various process areas. The blowers internal variable-frequency drives allows PERC Water to control, monitor and specifically adjust the air-flow for aeration over a wide range of operations.

Smart controlling system A proprietary technology developed by PERC Water, the Supervisory Control & Data Acquisition (SCADA) system has the unique ability to gather, display, track and store live data generated by the facility. In an effort to optimize energy consumption, the SCADA system is designed to consistently update operators on the exact status and measurements of all of the facilitys processes such as air flow, water flow and tank capacity and will notify operators of abnormal conditions directly to the operators cell phone.

The SCADA system is accessed through Central PERC, a web application where all the facilitys current and historical operational data is integrated within one platform that can be accessed and controlled wirelessly from an iPad, iPhone, Droid or any other web-capable device.

Lighting design Using a combination of natural lighting, LED lamps, mercury-vapor exterior lights, electronic ballast for fluorescent lamps, light sensors and automatic dimming devices, the facility exceeded the states Title 24 (energy-efficiency standards for residential and non-residential buildings) requirements and Southern California Edisons stringent standard.

As a result of the energy-saving measures employed at the facility, PERC Water was awarded the 2009 Sustainability and Resource Protection Award by the Environmental Business Journal and a grant through Southern California Edisons Savings by Design program to help fund the energy sa

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