0. Severn trent/ Reynolds-LAYNE
P3 Solutions: Isla Morada Design-Build-Operate Now Under Successful Long-term O&M
06/23/2017
Efrain Rodriguez
(941)

1. Severn Trent is a leading operator of U.S. water & wastewater assets
200+ clients in 18 states with a total combined flow of 900+ million gallons per day (MGD)
200+ wastewater
facilities managed
7,800 miles of
collection & distribution
lines
~1,500
employees
160+ water
facilities managed
4+ m population served

2. Design Build Operate: project delivery model
Integrated cost-effective solution with balanced risk transfer
Partnership approach for sustained long term success

3. Design Build Operate key components
Public sector finances the construction and owns the assets
Private sector responsible for effective coordination and implementation of design, construction and long term operation
The design, construction and assets are required to meet specific minimum criteria (based on client/project needs)
Partnership formed to leverage private sector expertise and deliver a cost-effective solution
Typically includes design and construction contract plus long term O&M contract
Operability integrated in the design process to address:
life cycle costs, consistent and sustained performance, reliable and compliant operations, adequate asset management, redundancy, resilience, among others.

4. Project specific financing
Total project cost of approximately $130 million: financed through a combination of conventional financing tools after considering various options including the following:
Sewer Assessment: $22 $4,000 per household (Higher charges for businesses based on usage)
Low interest State Revolving Loans: $81 million
Florida “Mayfield Grants”: $26 million

5. Isla morada Project description
Multimillion dollar Partnering DBO wastewater project for the Village of Islamorada, FL (Owner)
Goals of Owner:
Restoring nearshore water quality
Meet State of Florida mandate to have all wastewater collected and treated to required levels by December 31, 2015
Cost effective utility service
Sound long term solution
DBO method provided cost effective, sustainable solution through an integrated project delivery method

6. Project scope description
Transmission System consisting of approximately 100,000 LF of 8” to 18” PVC and HDPE
500,000+ LF of Low Pressure and Vacuum Sewer Collection System
Service to approximately 5,000 customers
Installation of approximately 400 residential grinder pumps
Complete maintenance and customer response responsibility for the 30 mile collection system for 20 years
Robust Solution
Balanced Approach
Partnership
Cost-effective
Sustainable
Compliant
Resilient
Risk Transfer
Guaranteed

7. Dbo approach selected providing a single point of contact for owner Balanced risk transfer solution
The partnership included the Village as Owner and national and local partners: design, subcontractors and suppliers and a national operations partner, as well as local stakeholders
Public interaction and cooperation were key in successfully delivering a customized wastewater solutions to thousands of private properties

8. Key success factors Project Description Detailed Scope Definition
Careful Partner Selection
Qualification-based and best Fit for Purpose
Holistic Approach
Life-Cycle Cost Analysis, redundancy, resilience, reliability considerations
Risk Transfer Considerations
Balanced Approach to maximize risk transfer in a cost-effective manner
Partnership Mindset
Cohesive DBO partners with local and national resource integration

9. Partnership mindset: Integrating local players
Local Integration of subcontractors and suppliers
Prioritized hiring of local and regional subcontractor and vendors, with Client input
80% local and regional participation
Layne self-performed 20% of construction project
Integration of Subcontractors included:
Putting all subs through Layne’s safety training and providing constant oversight
Layne’s QA/QC oversight on all subs
Coordination of Certified Payrolls, etc. to meet SRF obligations
Assistance to subs with local hiring and job advertisements
Managing subcontract sizes to drive effectiveness and quality

10. Long term Best-in-class operations
Severn Trent worked closely with Layne during early project stages
O&M for the entire collection system, including 24/7 field service response and transition/interim operation engagement.
Ongoing review of system operations to drive operational improvements to the benefit of the Village and its residents:
Process control measures to reduce chemical usage by 25%, while improving effluent quality (Process adjustment and enhanced monitoring/control)
Significant reductions in power usage. (Sewage pits updated to AirVac and I&I reduction)
Maintenance practices to drive long term collection system reliability, and decreased capital needs. CMMS implementation with project- specific approach and ongoing improvement.