City of Rialto, CA: Utilizing a Private Partner to Fulfill Municipal Needs October 1, 2005

2. City of Rialto California Presentation City of Rialto, CA: Utilizing a Private Partner to Fulfill Municipal Needs October 1, 2005

3. Rialto: Partnership Yields Results • Community Demographics • Disciplined Execution Through a Proven Project Approach • Results are Verified • Value Added through a Long-Term Partnership

4. City of Rialto, CA

5. City of Rialto, CA

6. City of Rialto, CA

7. City of Rialto, CA With the City experiencing explosive growth, municipal leaders searched for a partner to effectively operate and manage wastewater facilities to allow them to focus on other community priorities. City Goals for the WWTP included: • Eliminate continued facility operational and fiscal accountability issues. • Recruit and retain employees for key management positions. • Hiring a corporate citizen that would invest in the community and support economic development.

8. Veolia Shares the City’s Vision to become a Long Term Business Partner by providing Exceptional Value and Serviceto its Citizens

9. Rialto: Partnership Yields Results • Community Demographics • Disciplined Execution Through a Proven Project Approach • Results are Verified • Value Added through a Long-Term Partnership

10. Foundations of a Successful Partnership A Successful Partnership O&M Plan Transition Plan Communications and Community Relations MaintenanceManagementProgram

11. Foundations of a Successful Partnership A Successful Partnership O&M Plan Transition Plan Communications and Community Relations MaintenanceManagementProgram

12. The Veolia Water Approach “ ‘People are your most important asset’ turns out to be wrong. People are not your most important asset: the ‘Right People’ are!” Quote from Good to Great by Jim Collins

13. Employee Transition • Veolia undertook Largest Public-Private Operator Transition • 20-Year $1.5 Billion Water System Private Partnership Project • 460 Technical, Professional and Management Level Employees • Former Indianapolis Water Company (IWC) Employees

14. An Effective WorkforceThe Right People from the Beginning Veolia Water Staff Existing Staff New Hires VW Rialto

15. Foundations of a Successful Partnership A Successful Partnership O&M Plan Transition Plan Communications and Community Relations MaintenanceManagementProgram

16. Technical Resource Management Systems Process Control Plan Safety & Compliance Safe, Efficient Operations Meeting all Regulatory Standards Laboratory QA/QC Maintenance Management

17. Process Control Management Plan

18. Laboratory QA/QC

19. Foundations of a Successful Partnership A Successful Partnership O&M Plan Transition Plan Communications and Community Relations MaintenanceManagementProgram

20. Maintenance Management Asset Failure Vs. Life Condition versus life 4% 2% 5% 7% 14% 68% 120 100 80 60 Condition (%) 40 20 0 Time

21. Foundations of a Successful Partnership A Successful Partnership O&M Plan Transition Plan Communications and Community Relations MaintenanceManagementProgram

22. Communication PlanAllows for Effective Two-way Communications at All Levels • Mayor • City Council Annual • O&M Report • Discharge Report • IPP Report • Performance Audit • City Administrator • Asst. City Administrator Monthly • O&M Report • Discharge Report • IPP Report Weekly • Director of Public Works • Analytical Results Daily • Contract Officer • Complaints • Equipment Removed from Service • Blockages/ Collection System Condition

23. Community Relations • Committed to being a “Good Neighbor” to the community • We Work with the City to Identify Community Needs and Lend Our Support

24. Rialto: Partnership Yields Results • Community Demographics • Disciplined Execution Through a Proven Project Approach • Results are Verified • Value Added through a Long-Term Partnership

25. Successful Partnership “Trust … but verify” President Ronald Reagan

26. CommitmentPerformance and Financial Accountability Function Contract Type Accountability Operations Lump Sum PerformanceAudits CapitalImprovements Time and Materials Financial Audit

27. City of Richmond Project6 Month Performance Record Current StatusEffluent Quality Performance BOD, TSS mg/l Monthly Limits Jan 2002 July 2002 July 2001 Jan 2003 The City Has Consistently Met Effluent Quality Under the Veolia Program

28. Rialto: Partnership Yields Results • Community Demographics • Disciplined Execution Through a Proven Project Approach • Results are Verified • Value Added through a Long-Term Partnership

29. Comprehensive PartnershipExtends Beyond the O&M Contract Capital/Energy Management BiosolidsBeneficialUse Revenue Enhancement Opportunities

30. Rialto WWTP- Site Plan Replace Gaseous Disinfection System Anaerobic Digestion Improvements New Plant 5 Circular Clarifier Plant 3 and 4 Aeration System Improvements

31. Cogeneration Comparison City of Palm Springs- USFilter recently installed 90 KW cogeneration system, 21 month payback period, $10,000 savings/month

32. Biosolids Management in CaliforniaApproaching a Critical Stage 2003 The Current Situation Future SituationCalifornia’s Moving Regulatory Target Actual Banof Class “B”/ Practical Ban Actual Banof Class “B”/ Practical Ban Restricted Use/ Reasonable Restricted Use/ Reasonable Limited Limited

33. Rialto Based AlternativeMeeting the Needs of the City and Region Operational Synergy Regional Biosolids Facility Environmentally Friendly Revenue(Via Host Fees) Long-TermDisposal Relationshipwith EnerTech

34. Revenue Enhancement OpportunitiesRialto/Veolia Water Partnership CNG Facility OrderDesk CalTranReclaimed Water Sale Other Future Initiatives General Fund Transfer

35. Questions?