Innovative Water Recycling
Oct 21, 2014
Innovative Water Recycling
PERC Water Corporation
o A water infrastructure development company o Headquartered in Costa Mesa, California o Founded in 1998 o Privately held o 22 water recycling facilities o Provide innovative, efficient solutions to water infrastructure
needs o Industry leader in utilization of public-private partnerships
2
PERC Water ASP® Unique Characteristics
o Certainty of cost, schedule and performance o Small footprint:
• Common wall construction • Underground and covered tanks • Buildings above tanks
o Neighbor friendly o Risk management using integrated alternative delivery
methods
3
Neighbor Friendly
4
Small Footprint
5
Public-Private Partnership v. Design-Bid-Build
o Transfer of risk o Performance based
• Power costs • Extended warranties • Employees retained
o Reduced costs o City still sets rates o Risk management using integrated Design-Build-Operate
6
Socio-Economic Benefits of PPP
o Local job creation > multiplier effect on the local economy o Sales tax revenues o Potential revenues derived from the trading or sale of
recycled water o Local control over assets, costs and rate setting o Complete reversion at the end of the PPP term
7
Risk Allocation Table
8
Concessions
o Leverage operational efficiencies o Monetizing existing assets o Receive initial funding o Stabilizing or maintaining rates o Future upgrades & expansion o Implementation of technology & automation
9
Concession – Case Study
10
Central PERC™
11
o Secure login o Ties to SCADA and CMMS systems o Delivers up to the minute facility
information o Graphics to drill down for more detail o Notifications deliver critical messages o Easy accesses to facility references o Operations Manuals o Permits o Safety Information
Portfolio Overview
12
Mountain House, California
Project Type: Design/Build/Operate Capacity: 3.0 MGD (designed for 5.4 MGD) Population Capacity: 35,000 (64,000) Design: 9 months Construction: 16 months
13
City of Goodyear, Arizona
Project Type: Design/Build/Operate Capacity: 4.1 MGD (designed for 8.2 MGD) Population Capacity: 48,000 (96,000) Design: 6 months Construction: 9 months
14
City of Santa Paula, California
Project Type: Design/Build/Operate/Finance Capacity: 4.2 MGD (current rating 3.4 MGD) Population Capacity: 50,000 Design: 6 months Construction: 18 months
15
City of El Mirage, Arizona
Project Type: Design/Build/Operate Capacity: 3.6 MGD Population Capacity: 43,000 Design: 5 months Construction: 14 months
16
City of Surprise, Arizona
Project Type: Design/Build/Operate Capacity: 3.0 MGD Total (SPA 2 – 1.2 MGD, SPA 3 – 1.8 MGD) Population Capacity: 35,000 Design: 6 / 9 months Construction: 14 /16 months
17
Public-Private Partnership Case Study
18
Santa Paula City Data
o 65 miles northwest of Los Angeles o Population approximately 30,000 o “Citrus Capital of the World”
19
The Problem
20
Santa Paula’s Problems
o Out of compliance with the State o Faced over $8 million in fines by the States o Aged facility reached end of useful life (1939) o Insufficient capacity for growth o No certainty of capital costs and operating costs o No certainty of project schedule o No certainty of financing o No reuse of water
21
Santa Paula’s Goals
o Compliance with the State and eliminate fines o Certainty of capital and operating costs o Certainty of financing o Competitive rates o Recycle and reuse wastewater
22
The Solution
Retain PERC Water and Alinda Capital to privately fund, build and own a new water recycling facility
23
Solution: PERC ASP® Water Recycling Facility
o Capacity to treat and recycle 4.2 million gallons per day o Support population of 50,000 o Membrane bio reactor using Koch Membranes o Title 22 unrestricted reuse effluent o Integrated biosolids facility o Integrated recycling education center o Small tank footprint of less than 1 acre o Aesthetically pleasing buildings / no odors
24
Solution: Private Funding
o Financed by Alinda Capital Partners and PERC Water o 100% privately funded with debt & equity o No capital obligations by the City o 30 year concession with fixed fees o Future cap ex included
25
Solution: A Public-Private Partnership
26
Solution: Risk Mitigation for the City
27
Solution: Innovative Design
28
Solution: Small Footprint
29
Solution: Land Efficiency
30
Solution: Fast Track Design / Build Schedule
May 5, 2008: City Council vote to proceed May 6, 2008: Commence engineering July 7, 2008: Break ground December 16, 2009: Complete construction May 13, 2010: Begin full operations (7 months early) December 15, 2010: Required compliance date
31
Santa Paula Water Recycling Facility September 2008
32
Santa Paula Water Recycling Facility December 2008
33
Santa Paula Water Recycling Facility March 2009
34
Santa Paula Water Recycling Facility June 2009
35
Santa Paula Water Recycling Facility August 2009
36
Santa Paula Water Recycling Facility November 2009
37
Santa Paula Water Recycling Facility January 2010
38
Santa Paula Water Recycling Facility Completed May 2010
39
40
41
42
43
44
45
46
47
48
Goals Achieved by the City
o Compliance with the State and eliminate fines Guaranteed to meet State compliance Scheduled completion is seven months early Transferred violation risk to PERC Water/Alinda
o Certainty of capital and operating costs 30 years of guaranteed capital, operating costs and cap ex 30 years of guaranteed power consumption
49
Goals Achieved by the City
o Certainty of financing 100% privately funded and privately owned
o Competitive rates 40% lower than neighboring City Lowest overall rates from procurement process
o Recycle and reuse wastewater Can produce 4,700 acre feet per year of recycled water
50
Recognition
o 2011 National Council of Public-Private Partnerships “Award for Innovation”
o 2011 Design-Build Institute of America – Western Pacific – Top Tier Water Award
o 2010 Environmental Business Journal “Project Merit” Achievement Award
o 2009 Global Water Intelligence Water Deal of the Year “Award of Distinction”
o 2009 Environmental Business Journal “Sustainability & Resource Protection” Achievement Award
51
Rec
52
“In the history of the world, no one has ever washed a rented car.” - Lawrence Summers, Former Harvard University President
53
54
55
56
57
58