Civil Engineering Reference
In-Depth Information
• Certain risks (e.g., permitting, financing, liquid biosolids quality, and inflation)
were shared and other risks (e.g., biosolids processing technology performance,
design and construction costs, and Class A biosolids product beneficial use,
transportation, and marketing costs) were transferred to the DBOF contractor.
• The City realized significant cost savings by engaging a qualified, private part-
ner with nationwide resources and experience along with a business model that
included the full life cycle of biosolids management, including the operation of
biosolids processing facilities and the marketing of product through a wide vari-
ety of channels.
Santa Paula Water Reclamation DBOF
In 2008, the City of Santa Paula, Calif. entered into a 30-year service agreement with
Santa Paula Water LLC, a special purpose developer company formed by Pacific Envi-
ronmental Resources Corp. (PERC Water) and Alinda Capital Partners LLC to privately
finance, design, build, own, and operate a new 3.4-mgd (12.9-ML/d) water recycling facil-
ity to replace the City's existing WWTP. The City's main objective for the DBOF contract
was to compress the project's delivery schedule into a 24-month period. The Santa Paula
City Council voted to authorize the service agreement with Santa Paula Water in May
2008 and construction was completed in December 2009. Other City objectives that were
accomplished with the DBOF service agreement included the following:
• Assurance of financing
• Certainty of capital and operating costs
• Compliance with state of california regulatory requirements and the related elim-
ination of fines
• Transfer of market, construction, and operational risks
• Provision of wastewater treatment capacity to support population growth and
development
Financing of the project was arranged by Santa Paula Water through a combination
of private debt and equity. The City of Santa Paula was not obligated to provide any capital
funds for the project. Ownership of the project will be transferred to the City at the end
of the 30-year service agreement unless the City elects to acquire the project during the
term of the agreement.
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