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Membrane Replacement Agreement
City of Redlands, California, referred
Date:
Dec 20, 2024
To:
to here as Redlands or Buyer y
No. of Pages:
38 including cover
Attention:
Fernando Mata
Email:
fmata@cityofredlands.org
Plant
1950 Nevada Street,
Address:
Redlands, California 92374 USA
Telephone:
909 798 7506 ext-2
Jason Diamond
Email:
Jason. Diamond(u)veolia.com
From:
Regions[ Lifecycle Manager
Cell No.:
9Q5 399 7055
Western USA
CC:
Matt Rebmann (CFTC)
Subject:
Membrane Replacement Agreement: materials,
Proposal No.:
587585-2
Original Project No.:
500133
off -site and on -site support pp
Please provide corrections if inaccurate
Redlands Wastewater Treatment Plant, municipal sanitary wastewater treatment.
Plant
Initial plant — 6 trains, 15 cassettes per train. 18 cassettes added in 2008 to fill spare
Data:
space and increase capacity. Original substantial completion date: July 6, 2004.
Current plant — 6 trains, 14 x 16116M cassettes with ZW500D 370ft2 membranes,
commissioning finalized September 2020.
Veoiia Membrane Replacement Agreement for the Redlands WWTP
Proposal number 587585 — revision #2 — December 20, 2024
Page 1 of 38
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Proposal Provisos
This proposal has been issued based on the information provided by the customer and on information currently available to Veolia
Water Technologies & Solutions at the time of proposal issuance, Any changes or discrepancies in site conditions, including but not
limited to changes in system influent water characteristics, changes in environmental health and safety (EH&S) conditions, changes
in the reissued statelprovindal disposal system permit, changes in buyer financial standing, buyer requirements, or any other
relevant change or discrepancy in the factual basis upon which this proposal was created may lead to changes in the offering,
including but not limited to changes in pricing, guarantees, quoted specifications, or terms and conditions.
DISCLOSURE OF INFORMATION.
a. Confidential Information. From time to time during the Term, either Party may disclose or make available to the other Party information
about its business affairs, products, confidential intellectual property, trade secrets, third -party confidential information, and other sensitive or
proprietary information which are expressly and clearly marked as confidential when provided to either Party (collectively, "Confidential
Information"). Each Party shall hold the other's Confidential Information in confidence and not make the other's Confidential Information
available to any third party or use the other's Confidential Information for any purpose other than the implementation of this Agreement. Each
Party shall take all reasonable steps to ensure that the other's Confidential Information to which it has access is not disclosed or distributed by
its employees or agents in violation of the terms of this Agreement.
b. Notwithstanding subsection (a), a Party may disclose Confidential Information to the extent such Confidential Informaton is:
(i) as contemplated to provide the Services or otherwise explicitly authorized under this Agreement; or
(ii) disclosed to the receiving Party's Affiliates and its and their employees or representatives who have a need to know the Confidential
Information; or
(iii) to comply with a subpoena or the order of court or other governmental body of competent jurisdiction; provided, however, to the extent it is
legally permitted to do so, it gives the other Party advance notice of such disclosure; or
(iv) as otherwise necessary to comply with applicable local, state or federal law or regulation; or
(v) to establish a Party's rights under this Agreement, including to make required court filings.
c. Exclusions, Confidential Information does not include this Agreement, and information that, at the time of disclosure is: (i) in the public
domain through no fault of the receiving Party; (1i) known to the receiving Party at the time of disclosure on a non -confidential basis; (iii)
rightfully obtained by the receiving Party on a non -confidential basis from a third party; or (iv) independently developed by the receiving Party.
Trademarks
The following are trademarks of Veolia Water Technologies & Solutions and may be registered in one or more countries;
+100, ABMet, Absolute.Z, Absolute.Za, AccuSensor, AccuTrak, AccuTrak PLUS, ActNow, Acufeed, ALGAECAP, AmmCycle, Apogee,
APPLICATIONS ATLAS, AquaFloc, AquaMax, Aquamite, Aquaplex, AquaSel, Aquatrex, Argo Analyzer, AutoSDI, BENCHMARK, Betz,
Betzdearbom, BEV Rite, BioHealth, BioMate, BioPlus, BIOSCAN, Bio-Trot, Butaclean, Certified Plus, ChockPoint, ChemFeed,
ChemSensor, ChemSure, CHEX, CleanBlade, CLOROMAT, CoalPlus, COMP -METER, COMP -RATE, COMS (Crude Overhead
Monitoring System), Continuum, CopperTrol, CorrShield, CorTrol, Custom Clean, Custom Flo, Cyto3, DataGuard, DataPlus, DataPro,
De:Odor, DFLTAFLOW, DEOX, DeposiTrol, Desal, Dianodic, Dimetallic, Dispatch Restore, Durasan, DuraSlick, Durasolv, Duratherm,
DusTreat, E-Cell, E-Cellerator, ELECTROMAT, Embreak, EndCor, EXACT, FACT -FINDER, Feedwater First, Ferrameen, Ferroquest,
FilterMate, Fleet View, FloGard, Flotrex, Flotronics, FoamTrol, Food Pro, Fore4Sight, ForeSight, FRONTIER, FS CLEAN FLOW,
FuelSoly, Full -Fit, G.T.M., GenGard, GEWaterSource, Glegg, Heat -Rate Pro, High Flow Z, HPC, HPD Process, HyperSperse, Hypure,
Hytrex, InfoCalc, InfoScan, InfoTrac, InnovOx, InSight, IONICS, IONICS EDR 2020, IPER (Integrated Pump & Energy Recovery),
!Service, ISR (Integrated Solutions for Refining), JelCleer, KlarAid, Kleen, LayUp, Leak Trac, Leakwise, LEAPmbr, LEAPprimary,
Learning Source, LOGIX, LoSALT, M-PAK, MACarrier, Mace, Max -Amine, MegaFlo, Membrex, MemChem, Memtrex, MerCURxE,
MetClear, MiniWizard, MK-3, MOBILEFLOW, MobileRO, Modular Pro, ModuleTrac, MonitAll, Monitor, Monitor Plus, Monsal, MP-MBR,
Veolia Membrane Replacement Agreement for the Redlands WWTP
Proposal number 587585 — revision #2 — December 20, 2024
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MULTIFLOW, MunI.Z, NEWater, NGC (Next Generation Cassette), Novus, NTBC (Non Thermal Brine Concentrator), OptiGuard,
OptiSperse, OptiTherm, Osmo, Osmo PRO, Osmo Titan, Osmonics, Pacesetter, PaceSetter, Petroflo, Petromeen, pHlimPLUS,
PiCOPORE, PlantGuard, PolyFloc, PowerTreat, Predator, PRO E-Cell, Pro Elite, ProCare, Procera, ProChem, Proof Not Promises,
ProPAK, ProShield, ProSoly, ProSweet, Purtrox, QSO (Quality System Optimization), QuickShip, RCC, RE:Sep, Rec-Oil, Recurrent,
RediFeed, ReNEW, Renewell, Return on Environment, RMS (Rackless Modular System), ROSave.Z, SalesEdge, ScaleTrol, SeaPAK,
SeaPRO, SeaSMART, Seasoft, SeaTFCH, Selex, Sensicore, Sentinel, Sepa, Sevenbore, Shield, SIDTECH, SIEVERS, SmartScan,
SoliSep, SolSet, Solus, Spec -Aid, Spectrus, SPLASH, Steamate, SteriSafe, Styrex, SUCROSOFT, SUCROTEST, Super Westchar,
SuperStar, TFM (Thin Film Membrane), Thorminator, Thermoflo, Titan RO, TLC, Tonkaflo, TraveLab, Trend, TruAir, TrueSense,
TurboFlo, Turboline, Ultrafilic, UsedtoUseful, Vape-Sorber, VeriFeed, VersaFlo, Versamate, VIC[ (Virtual Intelligent Communication
Interface), V-Star, WasteWizard, WATER FOR THE WORLD, Water Island, Water -Energy Nexus Game, WaterGenie, WaterNODE,
WaterNOW, WaterPOINT, WellPro.Z, XPleat, YieldUp, Z-BOX, Z-MOD, Z-PAK, Z-POD, ZCore, ZeeBlok, ZeeLung, ZeeWeed, ZENON,
and Z.Plex.
Veolia Membrane Replacement Agreement for the Redlands WWTP
Proposal number 587585 — revision #2 — December 20, 2024
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Table of Contents
IIntroduction................................................................................................................... 4
2 Membrane Replacement Agreement........................................................................... 5
3 Veolia Scope & Price.................................................................................................... 6
4 Material Description.....................................................................................................8
5 Veolia Support — Membrane Replacement................................................................10
6 Delivery.......................................................................................................................12
7 ZeeWeed Configuration..............................................................................................14
8 2417 Telephone Technical Support ............................................................................14
9 InSight — Process Analyst Service............................................................................16
10 Service Visits..............................................................................................................19
11 Scope Redlands........................................................................................................21
12 Solution Design Notes................................................................................................23
13 Health & Safety — for all on -site support...................................................................25
14 ZeeWeed Membrane Module Extended Prorated Warranty— Redlands .......... _...... 27
15 Terms and Conditions of Sale.......... _ ......................................................................... 30
16 Signed Agreement...................................................................................................... 33
Veolia Membrane Replacement Agreement for the Redlands WWTP
Proposal number 587585 — revision #2 — December 20, 2024
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Veolia FY24-0098-jm
Q VEOLIA
1 Introduction
Veolia Water Technologies & Solutions is pleased to present this proposal to initiate a
Membrane Replacement Agreement (MRA) with the City of Redlands for wastewater
membrane replacement and cassette refurbishment at the Redlands WWTP.
It is expected that Redlands will require replacement membranes within the next 12 years
and that membrane replacement will be staggered, with one train replaced per replacement
event.
The scope of this agreement will include the following:
O ZW500D membrane replacement;
O ZW500D refurbishment kits for 16/16M cassettes;
O On -site membrane installation and cassette refurbishment assistance for the first
replacement event;
O Service Support:
O 24/7 Telephone Technical Support — 12 years;
O InSight — process consulting service
• InSight Pro level service — 12 years
• InSight hardware replacement in years 4, 7 and 10
O Annual service visits — 12 years.
Details of the scope are set out in the sections below.
Veolia is a proven leader in delivering tangible value to our clients over the life of the plant
Our measure of success is how well we deliver solutions that help our clients meet their
critical business objectives. Benefits of this agreement include:
O Timely lifecycle costs over the period of the agreement
O Planned membrane replacement
Through long -acquired membrane experience, Veolia has clearly distinguished itself from
other membrane manufacturers. A mature service culture and deep technical expertise are
at the ready to serve and support customer short name through this next membrane
lifecycle.
Veolia would like to note that under the current exceptional circumstances across global
supply chains and logistics networks, Veolia may not be in a position to guarantee and
comply with the planned schedule for product / project delivery or performance. Veolia
reserves the right to modify the schedule / contract accordingly. Veolia will promptly inform
you of any changes which may impact the contract or the project.
Veolia Membrane Replacement Agreement for the Redlands WWTP
Proposal number 587585 — revision #2 — December 20, 2024
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2 Membrane Replacement Agreement
Through the term of this agreement, Veolia will provide a quantity of replacement
membranes equivalent to the surface area (ft2) of the existing full plant of membranes at the
Redlands WWTP.
Based on the projected life of the current membranes and the planned start date of this
agreement, Veolia recommends the following replacement schedule*:
*Through the term of this agreement, Veolia will work with Redlands to determine the actual
timing of replacement events based on plant performance and membrane condition, with
the ultimate goal to maximize membrane life.
It is possible that, through virtue of good membrane management and plant operation,
Redlands may extend membrane life of the current membranes beyond the end date of this
agreement. To avoid unnecessary premature replacement, Redlands may choose to defer
delivery of membranes into a future year provided that all membranes are received and
accepted within a 3-year period following final billing for the agreement.
This membrane replacement agreement provides assurance to the City of Redlands that
over the course of the agreement, Veolia will provide the membrane modules specified or
equivalent for use at the Redlands WWTP.
For optimal economics and to follow best membrane replacement practices, pricing is
based on replacing multiples of at least 1 train worth of membranes at a time. Should
Redlands request quantities other than a minimum of 1 full train per installation event over
the term of this agreement, an adjustment to the annual invoice may be made to account
for additional costs.
*Pricing is based on the proposed replacement schedule provided in the table above. If the
actual shipment schedule is accelerated, additional cost/payments may be required.
Veolia Membrane Replacement Agreement for the Redlands WWTP
Proposal number 587585 — revision #2 — December 20, 2024
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3 Veolia Scope & Price
Veolia's scope includes the material and services outlined in the table below. The sections
that follow provide additional detail regarding each scope item.
Description
Part #
QuantityItem
ZW500D RX12 430ft2 membranes, section 4.1
3168300
1,152
2-year full replacement + 13 year extended
prorated membrane warranty, section 14
Incl.
Cassette refurbishment components, section 4.3
Lot
2,241,759
Hardware, section 4.2
Lot
Off -site support, project management, section 5.1
Incl.
International shipment, fees and duties, section 6
................. ........... ........... ...... ............................. ......-..... ....--.....__...--...........--.......... ...... ....... ._-.._-.___
............ ..... ..........-.....-.. -.....
Incl.
---- -.-..--...--------
24,780
------------- ...... .....
Freight, DDP project site, section 6
3095534
Incl.
---. .
7,360
On -site support — first replacement event:
-2 x FSRs, each on -site for 8 x 10-hour days plus
135491
1 visit
42,240
travel & living, section 5.2
Service Support:
-2417 Telephone Technical Support, section 8
-12 years
-InSight, section 9:
-Process Analyst service
293,223
-12 years
-Hardware replacement
-3 sets
-Service visits — 1 x FSR, 2 x 8-hour days on -site
plus travel and living, section 10
-12 visits
Total
2,608,976
All figures are in USD. Membrane prices are inclusive of 7.75% sales tax. Applicable
taxes for all other materials, off -site and on -site support will be applied at the time of
invoicing. Please make purchase order to ZENON Environmental Corporation.
An amount of $136,296 has been included above for 7.75%
tax on the membranes and an additional 1% will be added for
Sub -total
17,587
current 8.75% tax rate.
An amount of $25,963 is estimated for 8,75% tax on the
remaining materials in addition to the stated total price.
Applicable taxes at the current rate at the time of invoicing
Sub -total
25,963
will be applied.
Total inclusive of all estimated taxes
2,634,939
Annual payment (with estimated taxes, actual tax rate at time of invoicing
will be included)
219,578
Veolia Membrane Replacement Agreement for the Redlands WWTP
Proposal number 587585 — revision #2 — December 20, 2024
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*Prices provided above for the total and annual fee are prior to annual inflation adjustments
*Pricing for the 12 years of Service Support includes a reduction for services already
purchased by Redlands, set to expire March 30, 2025.
The annual fee is based on a proposed 12-year payment plan starting in 2024 and will be
subject to annual adjustment through the term of the agreement according to the
unadjusted US CPI, All Cities Average.
Annual Adiustments:
Annual Fee x (1 + ( (cP1-1- e1131-2) j}
CPI-2
Where CPI-1 is the current month/year and CPI-2 is the month/year 12 months prior. The
index used will be the latest available at the time of each calculation — which will typically
occur just prior to the start of each agreement year. Each adjustment will be applied to the
annual fee in place at the time of each calculation.
In any instance of a reduction in the year -over -year inflation indexes, the annual invoice
value will be held the same as the previous year.
The annual fee will be invoiced each year at the beginning of the period. Should the
agreement be terminated for any reason, please see section 15 item 8.
Proposal Notes:
O ShipmentlCollection Delays: The membrane sale will be subject to price
adjustment if not collected within 9 month of Readiness for Shipment. After the one
month of Readiness for Shipment if Purchaser does not send its agreement to
receive or collect the membranes (depending on Incoterms), Seller is entitled to
reallocate the membranes to another customer.
Veolia Membrane Replacement Agreement for the Redlands WWTP
Proposal number 587585 — revision #2 — December 20, 2024
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4 Material Description
The following materials are provided within Veolia's scope of supply.
4.1 Membrane Modules
Veolia will provide 1,152 x ZeeWeed 500D RX12 430ft2 wastewater membrane modules.
See Attachment A for further product information.
4.2 Hardware
Veolia will provide the following hardware over the term of the agreement:
O 240 x 9118 EPDM permeate spigot o-rings — 3033690;
O 60 x ZW500D element end cap keys — 3040447;
O 18 x ZW500D blank header sets — 3033393;
O 6 x o-ring lubricant (food grade) — 3089920;
O 6 x anti -seize lubricant (food grade) — 3158322.
4.3 Cassette Refurbishment
Veolia will supply components for refurbishment of 72 x ZW500D 16116M LEAPmbr
cassettes, including spares. See Attachment B for further details.
Cassette refurbishment service allows you to fully recondition your cassettes at less cost
than purchasing new cassettes. Cassettes will be refurbished at the Redlands facility.
Cassette refurbishment includes the following:
O Removal of all existing plastic parts and associated hardware;
O If slack adjustment has been completed on cassettes, return the cassettes to the
initial factory membrane slack position;
O Installation of all new, current design parts (module mountings, securing
mechanisms), and all associated hardware;
O On -site cassette refurbishment service by trained Veolia field service
representatives for the first replacement event only — details provided in sections 5.2
and 11.2.
Veolia Membrane Replacement Agreement for the Redlands WWTP
Proposal number 587585 — revision #2 — December 20, 2024
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4.4 Contractual Basis for Guaranteed Replacement Price
The base price of replacement ZW500D 370ft' membrane modules for this project is the
GUARANTEED MODULE REPLACEMENT PRICE of USD$ 1,150 per module or a
maximum equivalent price per gallon of treatment capacity in the event that the module
area/permeability etc. changes such that the same amount of feed water can be treated
with fewer modules of the next generation design, as specified in SECTION 4 — FORMS, on
page 11 of SUEZ proposal ##042529 revision 13 dated December 31, 2019, as below.
3
MEMBRANE MODULE one thousand one
REPLACEMENT PRICE DURING hundred fifty dollars
WARRANTY PERIOD OF it YEARS
15
MEMBRANE MODULE PURCHASE
PRICE
TOTAL PRICE FOR ONE
ADDITIONAL FINE SCRE
One thousand one
hundred fifty dollars
two hundred thirty-three
fifty-three dollars
1,150
1,150
233,153
Veolia has guaranteed this price for 15 years subject to adjustment for inflation (unadjusted
US CPI, All Cities Average) or a maximum equivalent price per gallon of treatment capacity
in the event that the module area/permeability etc. changes such that the same amount of
feed water can be treated with fewer modules of the next generation design.
GMMP price escalation - calculation of inflation begins on January 2020 (month of
execution of purchase agreement). GMRP validity will expire at the end of business on
September 30, 2035 (15 years from the date of substantial completion).
Replacement membrane price is quoted DDP Redlands WWTP, with packaging, freight,
and 7.75% sales tax included.
To benefit from guaranteed membrane module pricing (GMMP) within the contracted time
limits, Buyer must submit an acceptable purchase order based on a valid proposal or quote
prior to the GMMP expiry date.
Non -Warranty Adjusted Membrane Replacement Price to August, 2024
Contractually guaranteed membrane replacement price 1,150
Inflation index value from January 2020
257.971
Forecasted inflation index value —August, 2024
317.505
Inflation index factor
23.08%
Surface area adjustment factor (430ft2 vs 370ft2)
16.22%
Adjusted membrane replacement price for this proposal — USD
1,644.92
Veolia Membrane Replacement Agreement for the Redlands WWTP
Proposal number 587585 — revision #2 — December 20, 2024
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Veolia's price for ZeeWeed membranes is subject to further escalation until finalization of
the agreement according to changes in the unadjusted US Consumer Price Index (CPI), All
Cities Average.
5 Veolia Support — Membrane Replacement
5.1 Off -Site Support
Controls
Provide system controls programming adjustments as required for the new membranes
including adjustment of set points for air flow.
If there is a requirement for the EEPROM (Electrically Erasable Programmable Read -Only
Memory) to be stored, a period of plant shutdown must be arranged by Redlands.
Documentation
The base level of documentation updates will include:
O Programmer's table of code changes (change description recorded by tag with one
distinct marker bit per change) if needed;
O Field/hand markups of relevant electrical and P&ID drawings if needed;
O P&IDs - Update the process (piping) & instrumentation drawings and reissue
electronically;
O Controls documents — Update control narrative (CN), controls logic sequence
chart (CLSC, also known as CSC) and the operation sequence chart (OSC.
These updates should be filed in the O&M manual as interim documentation.
Due to the very high cost of comprehensive updating of plant documentation with each
system upgrade, Veolia recommends planning a complete documentation update every 1-4
years to coincide with a selected system upgrade.
Veolia will be pleased to develop a documentation update price quotation on request which
may include some or all of the following scope according to its relevance:
O O&M manual - Provide a fully updated version of the operation & maintenance
manual that indicates the changes made with this membrane replacement upgrade;
is Electrical drawings — Update the electrical drawings and reissue electronically.
Project Management
Provide planning and off -site assistance during the membrane replacement project.
Veolia Membrane Replacement Agreement for the Redlands WWTP
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5.2 On -Site Technical Services
The proposal includes a provision for technical services during installation and
commissioning process during the first replacement event to support Redlands' staff as
outlined in section 3. Please see section 11.2 for recommendations on the number of plant
staff necessary to perform the work.
Installation and commissioning of membranes will be executed in a manner that minimizes
down -time and returns the system to beneficial use in a timely manner.
The following activities will be completed jointly by plant staff and Veolia on the first
replacement event — the balance of events will be performed by Redlands staff:
O Remove existing membranes/cassettes;
O Install cassette refurbishment components;
O Install the new membrane modules;
O Upload required revisions to the PLC program with adjusted set -points;
O Perform bubble test where applicable to test membrane integrity and review trans
membrane pressure (TMP) on the installed membranes and compare to expected
values for new membranes; complete repairs/adjustments necessary to provide new
membrane performance.
Operating Responsibility - Redlands retains control of the work site and retains final
responsibility for the installation and commissioning process.
Veolia will perform the services specified in the scope section of this document, but Veolia
will not operate the system. For the purposes of this agreement, the term "operate the
system" shall mean to run or control the functioning of the equipment or to otherwise
conduct or manage the affairs of any aspect of water or wastewater treatment or other
functions at Redlands' site, and shall include functions such as providing operators or
laborers to adjust or control water treatment ("WT") equipment, wastewater treatment
("WWT") equipment or sludge management facilities ("SMF"), providing program oversight
or directing on -site or contract operatorsllaborers to adjust or control WWT or SMF,
providing personnel responsible for or providing oversight of water treatment residual
quality, wastewater effluent quality, sludge quality, waste characterization, or waste
disposal activities, or providing personnel with continual or daily operational responsibilities
with respect to water or wastewater treatment, influent or effluent compliance monitoring,
process monitoring, government reporting or notification, or permit compliance.
Waiting Time - Any overtime or waiting times required due to unforeseen site events
outside the control of Veolia will be invoiced according to the prevailing Veolia service labor
rates sheet, available on request.
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Reporting - Before leaving site, Veolia will record observations and discuss with operators
concerning the condition of the equipment, tasks accomplished during the visit, and key
operating and maintenance issues requiring further attention. Veolia will provide a copy of a
written report before leaving site and/or provide a service visit report to the plant operator
within a reasonable timeframe of the Veolia service representative's return to the office. In
any case, Redlands will be asked to sign a work order that describes the hours on site and
tasks accomplished.
Veolia Duties for On -Site Services
• Veolia will coordinate its work under this agreement in a reasonable manner with the
operating staff of the facility.
O Veolia will maintain public liability and property damage insurance covering all
operations undertaken by Veolia and its sub -contractors with a limit of $5,000,000
inclusive for any one accident or occurrence. if for any reason additional insurance
coverage (e.g. general construction/erection all risk, general liability) is required
above and beyond Veolia's standard insurance terms for on -site commissioning
supervision, Redlands must inform Veolia in writing 60 days prior to work
commencement at site. Redlands will be billed for all additional insurance costs and
processing fees.
O Veolia will maintain workers compensation and employers' liability coverage as per
statutory requirements.
6 Delivery
O Freight
O DDP - Delivery will be by standard oceanlground on the basis of DDP
Redlands WWTP, or other named place of destination; Incoterms 2020. DDP
= delivery duty paid. Partial shipments will be acceptable unless otherwise
specified. Where delivery cannot be accepted at this destination, Redlands
shall specify an alternate, equivalent destination without delay.
Due to varying origins and availability, non -membrane items included in this
proposal may be shipped separately from the membranes. Should separate
shipments be required, where possible, Veolia will strive to provide these
items on or before the delivery of the membranes.
O Title & Risk - Title and risk of loss or damage to membrane modules,
shipping frames and crating shall pass to Redlands upon delivery at the
named place of destination.
® International Shipment, Fees, and Duties
O Origin - Delivery of ZeeWeed membranes originates from the Veolia Water
Technologies & Solutions, ZENON Membrane Products (ZEM), Blathy Otto u
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4, Oroszlany, 2840 Hungary facility. Costs to transport membranes into
North America are included in Veolia's quoted price.
O Export Documents - All ZeeWeed membrane module shipments into the
USA require clearance documentation from the EPA. Veolia will prepare and
provide the required EPA documentation to the Carrier.
O MPF - Merchandise processing fee is a fee assessed for formal custom
entries based on 0.35% of the invoice value, with a minimum of USD $25 per
formal entry and a maximum of USD $485. On the basis of DDP terms, this
fee will be paid by Veolia within the quoted price.
O Duty - Any new duty imposed after the date of this proposal is the
responsibility of Redlands.
0 Taxes - All applicable local, state, or federal taxes are the responsibility of
Redlands.
O Temperature - OF membranes cannot be allowed to freeze or overheat and may
require temperature -controlled freight and handling according to the season and the
planned routing. If required, the price of temperature control will be included within
the firm quote on freight by Veolia.
O Packaging — Membranes may be delivered factory -installed in shipping frames,
individually bagged, boxed and crated or a combination of the two methods
depending on availability and urgency of delivery.
0 Unloading - may require one of or a combination of a loading dock, extended forks
and an experienced forklift driver at delivery destination. Please consult with Veolia
at the time of purchase order (PO) preparation on this.
Shipping crate information (estimated) — per train
Notes:
• Only crates for membrane transport have been shown above to identify the largest and heaviest items that
will need to be unloaded;
• Smaller cratesiskids will be used for hardware items (cassette refurbishment components, etc.).
® Availability - Delivery of membrane modules is typically 10-20 weeks after receipt
of order. With current global logistics and freight delays we are experiencing
significant increases in lead times. Definitive availability will be confirmed upon
each request for membranes from Redlands. Longer lead times should be taken
into consideration in the course of membrane replacement planning.
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7 ZeeWeed Configuration
ConfigurationExisting
Data
Number of trains, plant
Units
Plant
Configuration
6
Proposed
Configuration
After Replacemen
71
6
Type of ZeeWeed membrane
500D
500D RX12
Module surface area
ft2
370
430
Total number of cassette spaces/train
18
18
Maximum number of modules/cassette
16
16
Fully populated cassettes installed/train
14
12
Flex cassettes installed/train
---
---
Installed number of modules/flex cassette
---
---
Total module count, train
224
192
Total surface area in operation, train
ft2
82,880
82,560
Total module count, plant
1,344
1,152
Total surface area in operation, plant
ft2
497,280
495,360
% surface area change from existing
%
-0.4%
8 24/7 Telephone Technical Support
Veolia's 24/7 telephone technical support provides a team of specialists available to help
keep your system online and in production in the event of the system operating outside of
specified conditions.
8.1 Calls During Business Hours
Plant operators have telephone access to a skilled Veolia technical support specialist who
will assist plant operators in troubleshooting of system problems such as electrical
(PLC/HMI), mechanical and process control issues.
Plant operators can call the daytime hours telephone number provided below at any time
during business hours and ask for technical support.
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8.2 Calls After -Hours — Emergency Telephone Technical
Support
Our technical support team is always on call and is equipped with system information to
effectively talk a plant operator through an emergency, potentially averting loss of plant
production and expensive call outs. The telephone technical support group maintains
access to all plant drawings for rapid reference during 24/7 support calls. The telephone
technical support group has portable computers equipped to access the plant control
system remotely, in order to gain a better understanding of the situation, and to make any
necessary adjustments to control set -points or software. Remote access requires a high-
speed internet connection at your facility and requires that you have permissions set up in
advance. The technical support specialist will manage the resources needed within Veolia
to assist you in resolving your plant issues. All client issues are tracked through to
resolution using Veolia's state-of-the-art issue tracking software.
Plant operators can call the after-hours telephone number provided below.
8.3 When You Call
When you call, or if you are leaving a message, please provide the following information:
O Plant name;
0 Your plant's original Veolia project number;
0 Your contact telephone number
for a call back;
O A brief description of the issue.
1 Hours of Operation & Telephone Numbers
daytime hours of operation:
8:00 am to 6:00 pm Monday to Friday,
telephone, toll free in North America:
Eastern Time Zone GMT-5
1-866-271-5425
press 1 for technical support
outside of North America:
1-905-469-7723
daytime hours e-mail address:
technicalsupport(a7veolia.com
after hours & holidays:
6:00 pm to 8:00 am Monday to Friday,
Eastern Time Zone GMT-5
weekends - all of Saturday and Sunday
telephone, toll free in North America:
1-866-271-5425
outside of North America:
1-905-469-7723
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8.4 Getting the Most out of Your Call
Having the following plant documentation conveniently available to the plant operator and
close to the telephone will contribute greatly to effective and rapid troubleshooting when a
problem arises.
4 CLC: control logic chart — details of the control logic - ranges, set points and action
or derivation of alert/alarm;
O OSC: operation sequence chart - The PLC follows specific steps to automatically
control valves, pumps and other devices during modes of operation of the treatment
plant. These steps are listed and described in the OSC;
O P&ID's: piping & instrumentation diagram -- schematic illustration of the functional
relationship of piping, instrumentation and system equipment components;
A Electrical Drawings: These will help with locating devices and fuses;
O A copy of this telephone technical support service description.
For control related issues, before making the call, it is very helpful to gather the last 5
relevant alarm messages and the corresponding instrument or equipment tag numbers.
8.5 Service Limitations
Not all issues can be resolved through telephone support.
In the event that the Veolia technical support group cannot resolve the problem with the
plant operator over the phone in a reasonable time frame, more extensive service support
options are available at the rates and prices under the conditions published in the Veolia
services labor rate sheet.
O Off -site control code programming;
O On -site service by a service representative;
O On -site or off -site process support.
Wherever feasible, calls regarding non -urgent issues should be made during business
hours. For any further questions regarding this telephone technical support service, please
feel free to contact us through the business hours telephone number or email above.
9 InSight -- Process Analyst Service
InSight combines advanced data and analytics to help water treatment professionals
prevent unplanned downtime, increase asset reliability, extend asset life, and optimize
operations. By aggregating and analyzing the thousands of complex data points from an
operation, InSight provides users with greater visibility and transparency at a plant level, or
across the entire enterprise.
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Furthermore, the subscription to this service allows access to personnel from Veolia's
service reliability center (SRC) who will provide training and support on the use and
features of InSight.
Finally, the service is enhanced with automated performance reports and daily alarm
notification summaries, allowing you to identify emerging problems earlier so that action can
be taken now, before a failure can occur.
Features of InSight
O Turn data from multiple sources into meaningful information;
O Visualize current conditions and their trajectory;
O Diagnose problems and discover opportunities for improvement;
® Alert your team to events or trends before they threaten asset production or
integrity;
O Report on key performance indicators and their impact on business objectives.
9.1 Process Consulting Service
Process consulting service pairs you with a Veolia process expert to collaborate with you
for continuous improvement of your treatment processes. Your process expert is
specifically assigned to your plant and will provide you a level of personal attention.
Your process expert will monitor key parameters using InSight, Veolia's monitoring solution
that combines advanced data and analytics to maximize system reliability and availability,
lower operating costs and optimize operations.
Your expert will be in touch frequently with your operations team to identify, discuss and
resolve emerging performance, process, and operational issues. While supporting your
team's day-to-day operations, the process expert will also use InSight to focus on long-term
trends and offer specific recommendations that will help reduce costs and increase the life
of your production assets (equipment and/or membrane).
As part of process consulting service, you will also receive regular performance reports that
contain analysis of key trends and recommendations to improve plant performance,
optimize process parameters and avoid operational downtime.
9.2 InSight Service Conditions
Veolia will perform the services specified in the scope section of this document under the
following provisos:
C Mutual Duties of Care and Discernment: Veolia shall exercise due care to provide
process advice in a responsible manner and with the degree of care, skill and
diligence accepted within the industry. Buyer shall exercise discernment in the
application of any advice provided by Veolia, with due regard for the normal
potential for data inaccuracy, errors or omissions.
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O Competence: Veolia process experts are not experts in and should not be expected
to provide advice with regard to any laws, legislation, regulations, policies or
guidelines. Buyer must consult with its own legal and regulatory experts for such
advice.
• Operating Responsibility: Redlands retains control of the plant at all times and
plant operators retain full and final responsibility for operation of the system, and all
process and operating decisions. Responsibility for the any use of InSight charts for
compliance reporting rests with the plant operators.
While the process expert is able to view and monitor trends remotely, InSight does
not allow the process expert to make any changes to your set points in the HMI.
Plant operators have the exclusive ability to control changes locally. Through other
permissions separate from InSight, plant operators may grant the ability to dial in
and view control code and execute code changes to selected controls experts.
O Delays: Where Veolia is responsible for any service delay during the agreement,
the duration of the agreement shall be extended for the same duration as the
service delay.
Where Redlands is responsible for InSight service delays or interruptions, there will
be no extension to the agreement term and Redlands is responsible to contact
Veolia for reactivation after the cause of an interruption has been resolved.
• Hardware Replacement: Redlands retains ownership of any hardware supplied for
data acquisition and transmission. Included is a provision for hardware replacement
as set out in section 3. Installation will normally be performed by Redlands.
c -- Data Provisions — InSight
1. Use. Buyer agrees to use the equipment only in accordance with Seller's instructions and shall only use Seller
approved chemical products in connection with the equipment. To the extent that Buyer fails to do so, Buyer hereby
agrees that any and all applicable warranties for the Equipment and Services, including, but not limited to, any
accuracy or performance guarantees shall be waived.
2. Data Rights. The parties acknowledge that in performance of the Services, Seller will be collecting data from Buyer
relating to Buyer's processes, materials, equipment and other information ("Data"). Buyer hereby consents to the
collection of such Data by the Seller. The following provisions will apply to Data.
1 Network Interface. Buyer will install and maintain any and all equipment, systems, software and network interfaces
at, and provide telecommunications access to, its facilities as may be required to gather and communicate Data to
Seller's monitoring systems in conformance with Seller's interface specifications. Buyer shall maintain its equipment,
systems, software and network interfaces to ensure that there are no viruses, Trojan horses, tracking or other
cookies, malware or any other harmful software embedded in or attached to Data or such equipment, systems,
software or network interfaces that are accessed by or otherwise affect Seller's equipment, systems or software. Upon
reasonable request by Seller, Buyer shall perform testing or audits to verify compliance with thisparagraph.
4. Custodian. Seller will be custodian of the Data. Seller will store and maintain the Data in a secure manner and
logically separate from data belonging to other customers consistent with industry standards. Data will be stored and
maintained by Seller during the term of any agreement with Buyer. However upon termination of the same, Seller may
delete data in accordance with its then standard business practice. Periodic back-ups of Data will be maintained as
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necessary for Seller to perform its obligations herein. Seller may store such information in any location and in such a
manner as it deems appropriate in its sole discretion in accordance with reasonable commercial practices.
5. Seller Access. Seller will restrict access to Data to those employees, agents and contractors of Seller with a need to
know. In addition to accessing Data through computers, tablets, and smartphones, such employees, agents and
contractors may access Data through computer monitors disposed in monitoring laboratories or control rooms at sites
operated by or on behalf of Seller. Access by such individuals on behalf of Seller to stored Data shall be controlled
through individual user names and passwords consistent with Seller's information technology policies and procedures.
Access by such individuals on behalf of Seller to displayed Data on monitors shall be restricted through controlled
access or other reasonable security measures determined by Seller in its sole discretion.
6. Buyer Access. Seller may provide access to Buyer to Data during the period which Data is stored. For individual
access, Buyer shall provide a request for authorization for each individual requesting such access. Authorized
personnel of Buyer shall be issued a unique User ID and password that identifies and may be used by only a single
user. All requests for access shall be through an officially approved and documented process of Buyer. Seller shall
use reasonable commercial efforts to provide user access to Buyer in a timely manner. In the case that any employee
or contractor no longer requires access or in the case where such employee or contractor is voluntarily or involuntarily
terminated, Buyer shall notify Seller immediately at which time such User ID will be disabled and access terminated.
Seller shall not be liable for any access by individuals based on whole or in part by the failure on the part of Buyer to
provide timely notice of restrictions on or termination of access.
Upon reasonable request by Buyer and to the extent technically feasible or practical, copies of some or all of Buyer's
Data shall be transferred to Buyer pursuant to mutually agreed upon protocols, procedures and schedules. Moreover,
reports that summarize Data may be developed from time to time and provided to Buyer. Seller shall be compensated
on a time and materials basis for any such transfer or report generation.
Buyer acknowledges that much of wireless network security is controlled by 3rd party carriers or network vendors and
Seller shall not be liable for any security breaches based in whole or in part on services provided by such 3rd parties.
7. Security/Unauthorized Access. Buyer shall not reverse engineer, hack, attempt to or access, or have anyone do so
on its behalf, any data, systems, programming, or any other information maintained by Seller. In addition, Buyer or
those acting on Buyer's behalf shall not develop or insert into any of Seller's systems, networks or data any back -door
access, viruses, Trojan horses, tracking, other cookies, malware or any other unauthorized software.
8. Rights to Use Data. Buyer shall have unlimited rights to use the Data for any purposes not inconsistent with this
Agreement. Seller may use the Data (1) for any and all purposes in furtherance of this Agreement; (2) for research
and development and troubleshooting purposes; and (3) in the aggregate for statistical and other analysis, provided
that in the case of (3) above, no information identifying Buyer shall be associated with such analysis.
10 Service Visits
During the course of this agreement, Veolia will provide up to 12 x 2-day visits on -site for
plant support. Veolia and Redlands will cooperatively plan the time allotted to complete
priority activities identified by Redlands or selected from the scope of service below and
produce maximum value from each visit.
Process Monitoring and Plant Optimization
O Inspect and confirm proper operation of the membrane system in accordance with
the Veolia operation & maintenance manual.
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O Review operating logs, analytical tests and InSight data with the operator(s).
Discuss operator concerns and Veolia issues emerging from this review.
O Discuss imminent seasonal shifts. Plan and implement forward looking
adjustments.
O Advise the operations manager of technical updates from Veolia.
O Evaluate the aeration patterns in the tank, inspect tank walls and floors.
O Lift and inspect membrane cassettes, as required to assess condition.
O Assess pressure decay test or bubble test data when applicable as it correlates to
the membrane condition and/or permeate water quality. Assist plant operators to
repair membrane fibers as required.
O Assess the effectiveness of on -going membrane cleaning procedures (air scouring,
recovery cleaning, maintenance cleaning, relaxation and/or back -pulsing) and
provide recommendations to the plant operators as necessary.
O Review system alarm history, discuss any related issues with operator(s) and
recommend appropriate actions to be taken.
® Perform limited PLC code modifications as planned in advance, secured by proper
documentation, dial -in capabilities and file backup precautions.
O Verify operation of all safety interlock/controllers, pressure switches and
temperature switches.
Preventive Maintenance Planning
O Develop a preventive maintenance plan with the plant operator(s).
O Review the spare parts provisions with the plant operator and identify any additional
parts to provide the desired level of security, including spares related to non-Veolia
equipment.
Training
O During scheduled site visits, the Veolia service representative can provide operators
with informal training on any areas of concern; to explain the operation, process,
maintenance or troubleshooting activities and, in general, to enhance operator
ability and confidence.
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11 Scope - Redlands
11.1 Installation Preparation
O Receive, off-load, handle and provide temperature -controlled storage of the
equipment and materials required for Seller to perform the duties outlined in the
Seller's scope of supply. Prior to off-loading, Buyer to confirm temperature indicators
have not been tripped.
O Membranes must be stored in a sheltered area, protected from freezing, direct
sunlight or extreme heat, and sealed as shipped until ready for use. Storage should
be in a dark, dry, level area at a temperature of 5-30°C (41-86T). Membranes have
a shelf life of 1 year before requiring re -preservation and should not be stored longer
than necessary prior to installation. Redlands is responsible for risk of loss of
Seller's parts while in storage at the customer's plant.
O Inspect, evaluate and make repairs as required for the membrane tanks, mounting
brackets, hoses and all connections prior to Veolia arriving at site.
For the first replacement event with Veolia support:
O Provide all access structures (such as scaffolding) and mechanical lifting equipment
including cranes, forklifts and scissor lifts.
® Assure availability of a copy of the operating manual, all process and
instrumentation drawings, and all electrical drawings on site and accessible for
reference.
O Maintain adequate insurance coverage for the risks of fire, theft, vandalism, floods
and personal injury to authorized or unauthorized visitors.
11.2 Installation
For the first replacement event with Veolia support:
® Provide at least 2 plant personnel to work continuously for the full duration of the
Veolia site visit during installation and commissioning of the modules for the first
replacement event. Veolia recommends that the personnel be experienced with the
ZeeWeed system.
O Redlands will afford Seller's personnel free access and egress of the facility for all
authorized work. Redlands will provide reasonable access to workshop facilities with
standard workshop tools and equipment as is necessary to meet any repair and
maintenance requirements of the system during installation. Redlands will provide
Seller's personnel reasonable access to the facility amenities, including washrooms
and break rooms.
b Provide adequate illumination and emergency lighting for all areas in which the
Seller will be executing the scope of supply. Provide all site utilities such as raw
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water, instrument quality air, potable water and power required for operation of the
proposed equipment included in this scope of supply. Assure that adequate
quantities of membrane cleaning and neutralizing chemicals are on hand for wash
procedures including sodium hypochlorite, sodium bisulphite, citric acid and sodium
hydroxide. Supply telephone/fax/modem access while Seller's staff members are
on -site.
® Redlands will provide assistance to:
O Remove cassettes from the system as required;
O Clean each cassette as it is removed from the system;
O Install cassette refurbishment components;
O Place new modules into each cassette;
O Return the cassettes to the system.
® Redlands will:
O Dispose of all retired membrane modules and cassette components;
0 Dispose of shipping and packaging materials unless specifically requested not
to do so by Veolia;
O Prepare shipping frames for return to Veolia, see section 11.3;
O Load shipping frames onto the truck for return to Veolia — Veolia will be
responsible for organizing the logistics of delivery back to Veolia.
For all remaining replacement events:
Perform all tasks required for the onsite installation of the membranes and refurbishment of
cassettes including removal of existing modules, installation of new modules and
refurbishment components, and disposal of all materials.
11.3 Empty Shipping Frame Preparation
All shipping frames returning to Veolia must be well cleaned and packaged appropriately for
trans -oceanic transport in shipping containers. Shipping frames should be cleaned using
high pressure washers and mounted on wood skids to facilitate moving them in and out of
the freight containers. Veolia will provide Redlands off -site assistance to facilitate the return
of shipping frames.
All wooden packaging material used for international shipments must conform to current
phytosanitary standards to reduce the risk of introduction and spread of quarantine pest
species associated with the movement in international trade of wood packaging material
made from raw wood.
All wood packaging material used to transport shipping frames internationally, must comply
with ISPM15 which is the standard for phytosanitary measures and be properly stamped
indicating compliance with the standard. Failure to comply with the standard may lead to
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shipment refusal and subsequent project delays. For detailed information on ISPM15
please visit the ISPM15 website.
Whenever possible, save and re -use the wooden skids that the shipping frames arrived on
for return freight purposes.
12 solution Design Notes
12.1 Permits
Regulatory Requirements
Redlands is responsible to review and report to the permit granting agency on the impact of
any of the proposed changes on the regulatory permit. Veolia will provide the necessary
manufacturer's technical support on regulatory issues.
Please speak with your regional lifecycle manager (RLM) if there are any regulatory
requirements or concerns.
Utilization
Veolia understands that these modules are required as replacements for currently installed
modules. These modules are offered on the basis that the membrane modules will not be
used to provide expanded flow beyond the current plant flow rating. Veolia makes no
guarantees, implied or otherwise as to the performance of these modules in any other
capacity than as replacement membranes.
Replacing the current 14 cassettes per train of ZW500D 370ft2 modules with 12 cassettes
of ZW500D 430ft2 modules closely matches the current membrane surface area (82,560ft2
vs 82,880ft2) and leaves two cassette slots per train empty for future module placement that
could be used for flux remediation or for plant expansion subject to a review of the
limitations of other equipment and hydraulic capacities.
Production Interruption
During installation of the ZeeWeed cassettes, trains will be shut down which will affect
Redlands treatment capacity. Upon each request for membranes, Veolia's project manager
for the installation will consult with Redlands to jointly develop the installation plan and work
schedule with due regard for membrane delivery to the plant and plant preparation.
12.2 Maintenance Notes for Replacement Membranes
At the time of any full plant or full train membrane replacement, it is recommended to
evaluate whether it is the right time to address any tank coating repairs which may be
required.
Preferential Flow
Mixing a small proportion of new modules in trains with large amounts of older modules is
not recommended as it creates a risk of over -fluxing of new modules, which can shorten
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their lives. For ZW500D membranes, the mixing of old and new modules in the same
cassette makes slack adjustment more difficult. Veolia recommends that Redlands plan
membrane module replacement on a complete cassette and complete train basis wherever
possible to achieve both optimal performance and best value from the new membrane
modules. In this case, by replacing membrane modules on a per train basis, this risk has
been neutralized.
Membrane Slack
Veolia's membranes are supplied and shipped with an initial factory fiber slack designed to
optimize membrane air scouring during operation as well as accommodate a degree of
shrinkage. Membranes shrink in length early in their lifecycle when exposed to higher
temperature water. The pace of shrinkage slows with age. With the installation of new
membranes, the requirements for slack adjustment start a new cycle.
Due to the wide variety of operating environments in which our products can be utilized, it is
difficult to generally predict the rate of shrinkage. If membranes operate in a condition of
insufficient slack for an extended period of time, irreversible damage to the fiber -urethane
bond may occur. Please refer below to the recommended inspection frequencies based on
your plant's membrane tank operating temperature. Visual inspections should begin during
the membrane installation and be repeated over time on the same cassette. Digital pictures
will allow for comparative analysis of the fiber slack over time.
0-24 'C / 32-76 OF every 2 years
25-30 °C 177-86 OF once per year
>30 °C / > 86 OF twice per year
Bubble Test Pressure
The bubble test pressure for the purchased membranes is 2 psi horizontally and 3 psi
vertically.
12.3 Technical
Module Upgrade — 370ft2 vs 430ft2
Upgrading from the ZeeWeed 500D 370ft2 module to ZeeWeed 500D 430ft2 module offers
the following advantages:
® 16.2% increase in membrane module surface area;
0 Increased membrane module surface area without any changes to the overall
dimensions of the module;
® Improved membrane chemistry that allows for greater permeate productivity per
square foot of membrane area without impacting water quality.
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Other Considerations
Hoses & Fittings
Veolia has assumed for this proposal that the current aeration and permeate cassette
connections for the ZW500D cassettes do not need replacing at this time. If this is not so,
please advise Veolia and request that they be added to this proposal.
Blowers
For the purposes of this proposal, the range of blower turndown capacity has been
assumed to be adequate for this upgrade.
Should resheaving parts be required they will be supplied by Veolia at additional cost to
Redlands. Mechanical and electrical adjustments required to meet new air flow will be
completed by Redlands or their 3rd party designate. Veolia will assist Redlands in
determining correct air flow requirements for the new plant configuration.
Pre -Screen
Trash and non -biodegradable solids, such as hair, lint, grit and plastics may foul or damage
the membranes if allowed to pass into the membrane chamber. Veolia recommends that an
internally -fed screen with mesh or punched -hole openings less than or equal to 2 mm with
no possibility of bypass or carryover be operated upstream of the new membranes to
ensure effective operation and to maximize membrane life.
13 Health & Safety — for all on -site support
Redlands
O Redlands will provide orientation to Seller's personnel to ensure site -specific safety
protocols are known. Redlands will identify and inform Seller's personnel of any site -
specific hazards present in the workplace that could impact the delivery of Seller's
scope of supply and agrees to work with Seller to remove, monitor, and control the
hazards to a practical level.
O Redlands will provide any site -specific or standard company operating procedures
and practices for Seller's personnel to perform work on site, if required by Redlands'
policies. Such programs may include, but are not limited to, general environmental
health & safety (EHS), HAZOP, fire protection, drug testing, incident notice, site
conduct, standard first aid, chemical receiving, electrical safety, etc. Redlands will
provide a certificate of program completion for Seller's personnel. This program will
be fully documented, training materials will be provided, and attendance list will be
kept.
O if any type of lifting devices will be used on site, Redlands will provide proof of its
maintenance, inspection and certification documentation upon request and will
assist the Veolia service representative to complete a safety inspection checklist.
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O Where confined space entry may be required, Redlands will provide early notice and
will collaborate with Veolia in planning adequate staffing and in advising the local
fire/rescue department as required.
O No time or cost provision has been made for preparations such as safety record
clearances, drug testing, insurance confirmations or pre -job -training in excess of 1
hour. Prior to finalizing the Purchase Order and the work schedule, Redlands will
advise Veolla of any pre -job or pre -mobilization requirements. Where these
requirements exceed 1 hour, this time will be charged to Redlands at rates set out in
the prevailing Veolia labor rate sheet.
® Where certain short duration activities require two people for safety and the Veolia
Service representative is alone at site, Redlands will cooperate as required to
assure that correct safety precautions are taken.
0 Redlands is responsible for the following environmental provisions:
0 Environmental use and discharge permits for all chemicals at Redlands'
facility either listed in this document or proposed for use at a later date;
0 Any special permits required for Seller's or Redlands' employees to perform
work related to the water treatment system at the facility;
O All site testing, including soil, ground and surface water, air emissions, etc.;
0 Disposal of all solid and liquid waste from the Seller's system including
waste materials generated during construction, start up and operation.
® Redlands is responsible for provision of health and safety facilities to Seller's field
service representatives to the same extent that they are provided to Redlands' own
employees, including provision of:
O Eyewash and safety showers in the water treatment area;
G Chemical spill response;
0 Security and fire protection systems per local codes.
Veolia
9 All work on site will be performed in accordance with applicable law and will be
performed reasonably, in a clean and safe manner. The Veolia service
representative will abide by the more stringent of the applicable health, safety and
environmental policies and procedures of either Redlands or Veolia.
® Veolia will provide all applicable safety training required by Veolia policies or by
state or national health and safety regulations. The Veolia service representative will
have undergone workplace hazardous material information system (WHMIS)
training and will come equipped with necessary personal protective equipment
(PPE).
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0 Emergencies - In emergencies affecting the safety of persons, work or property at
the site and adjacent thereto, Veolia will act, without previous instructions from
Redlands, as the situation warrants. Veolia will notify Redlands immediately
thereafter.
14 ZeeWeed Membrane Module Extended
Prorated Warranty -- Redlands
This schedule sets out the warranty with respect to ZeeWeed membrane modules ("membrane modules").
No other warranties, expressed or implied are made in connection with the sale of these products, including,
without limitation, warranties as to fitness for any purpose or use or merchantability of these products. The
warranty provided herein will be the exclusive and sole remedy of Buyer. This warranty is not transferable.
1. Definitions
The follow terms shall have the meaning set forth below when used in the warranty document:
a. "Buyer" means City of Redlands, California
b. "Seller" means a business component of, or legal entity within the Veolia Water
Technologies & Solutions business which is selling the ZeeWeed membranes.
"Full replacement" means that in the case of a valid warranty claim for a membrane module
failure, Buyer receives a replacement membrane module and does not pay for the value of
use of the membrane module prior to failure.
"Prorated replacement" means Buyer pays for actual use of a membrane module from which
Buyer has derived value over time. Prorated replacement allows the Seller to pay
reasonable compensation under warranty for any product use not enjoyed by Buyer due to
premature failure.
2. Warranty Product
This warranty applies to only the membrane modules supplied under the contract of sale. Membrane module
means the hollow fiber ultrafiltration membranes and the potted plastic headers. This warranty does not
cover air piping to the membrane module, permeate piping from the membrane module, piping connection
fittings, connecting hardware and cassette frames with their associated components including but not limited
to spacers, aerator tubes, aerator assemblies, screen, module dummies or module blanks.
3. Scope of Warranty
The Seller warrants that its membrane module(s) will be free of defects due to faulty materials or errors in
manufacturing workmanship.
Regular membrane module inspection and normal fiber repair shall be the responsibility of Buyer.
All replacement membrane modules will be shipped on the basis of INCOTERMS 2020 DDP Redlands
Wastewater Treatment Plant — which includes bagging, boxing, crating, freight, freight insurance, applicable
taxes, import duties, and brokerage.
All ancillary costs including but not limited to certifications, receiving, forklift services, storage at site,
reattachment hardware, hoselclamplcamlock replacement, crane services, installation, fiber repair materials,
glycerin flushing, commissioning and waste disposal are the responsibility of Buyer.
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4. Warranty Start Date
Membrane warranty will start on the earlier of:
The date that installation of the original membrane module(s) has been substantially
completed, or
Three (3) months from the date of delivery of the original membrane module(s) to Buyer.
5. Warranty Duration
Total Warranty Duration: a total of 180 months composed of a full replacement period and an extended
prorated replacement period.
Full Replacement Warranty Duration: 24 months of full replacement warranty coverage.
Extended Prorated Replacement Warranty Duration: 156 months following the full replacement warranty
period.
Membrane modules replaced under warranty shall assume the remainder of the warranty for the original
membrane modules being replaced, with such warranty to be not less than a 24 month full replacement
warranty from the date of replacement with a new membrane module.
Replacement membrane modules are covered by warranty only to the extent of the warranty of the original
membrane module which has been replaced. At all events, this warranty shall expire and be of no force or
effect 180 months following the warranty start date.
6. Membrane Module Replacement Price — Prorated Replacement
The base Membrane Module Replacement Price (MMRP) used to calculate the prorated amount to be
paid by the Buyer to replace defective membrane modules under warranty shall be $1,150.00 USD +
adjustment for inflation. The inflation adjustment will be calculated according to changes in Consumer
Price Index for the period from January 2020. Membrane module prorated replacement price includes
bagging, boxing, crating, taxes and will be shipped on the basis of INCOTERMS 2020 DDP Redlands
WWTP.
For membrane modules supplied under valid warranty claims, the prorated share that the Buyer will
pay is calculated as follows:
Number of Whole Months Elapsed Between the
Prorated Membrane Modules Claim Date and the Warranty Start Changes
Share Date X MMRP X in CPI
of Price Total Warranty Duration in Months
Consumer Price Index used: US All Cities Average, All Items, unadjusted.
Note that this Membrane Module Replacement Price (MMRP) is not applicable for membrane modules
requested for purchase by Buyer for any non -warranty or other purposes, including but not limited to flux
reduction, or plant hydraulic capacity increases. Modules purchased under these or other scenarios will be
sold to Buyer by Seller at the list price in effect at the time of order.
7. Notification of Claim
All claims filed under this warranty shall be made in writing by Buyer within 30 days of identifying a defect.
Buyer shall provide the following information:
a. A description of the defect giving rise to the claim;
b. Photographs showing the manufacturing defect;
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c. The serial number(s) of the membrane module(s) which is (are) the subject of thewarranty
claim; and
d. Operating data and repair history for the life of membrane modules which are the subject of
a warranty claim.
8. Verification of Claim
After receipt of written notification of a defect, the Seller will promptly undertake such investigations as, in the
Seller's opinion, are necessary to verify whether a defect exists. The Seller reserves the right to require
additional data as necessary to validate claims. Buyer may, in the course of these investigations, be
requested to return membrane module(s) to the Seller for examination (see section 12). The Seller may also
conduct reasonable tests and inspections at Buyer's plant or premises. If the results of the investigation do
not validate the defect claimed, Buyer will reimburse the Seller for all reasonable expenses associated with
said investigation, including expenses for all tests, inspections, and associated travel.
9. Satisfaction of Claims
The Seller will have the right to satisfy claims under this warranty in a flexible manner. Such flexibility may
include the repair of existing membrane modules or changes in operating protocols or membrane module
replacement or by upgrading failed membrane modules with newer membrane module(s) that may embody
design and efficiency improvements. Buyer consents to the supply of replacement membrane modules which
may be of a different design than original membrane modules.
10. Operating Information
To maintain the membrane module warranty, membrane system operation records from initial start-up date
until claim must be maintained by Buyer and made available to the Seller upon request. Records must be
provided in sufficient detail as applicable to verify the subject of a warranty claim and can include but is not
limited to, operation data including information on feed water quality, temperatures, flows, trans -membrane
pressures, aeration rates, permeate quality, cleaning intervals, cleaning chemical concentrations, elapsed
time since start-up, relevant analytical data and reporting of any screen bypass events.
Buyer shall maintain and share access to a single reference copy in electronic form of a membrane module
map containing the history of activity by membrane module and the serial number for each module. Buyer
shall log its procedures performed related to a membrane module including relocation of membrane
modules, repairs, replacements and any other noteworthy events.
Buyer authorizes the Seller to conduct any reasonable review of operation and maintenance records or to
inspect facilities where membrane modules are installed, upon reasonable notice to Buyer. Such reviews
and/or inspections are intended to also assist the Seller and Buyer in detection of membrane system faults
and to optimize the care and operation of the membrane modules.
11. Limitation of Warranties
Occurrence of any of the following as reasonably determined by the Seller will void this warranty:
a. A material failure to operate the membrane system in accordance with Sellers operations
and maintenance manual supplied to Buyer as part of the contract, including material failure
to adhere to the Seller's specified membrane module cleaning procedures and the use of
anything other than Seller -approved membrane module cleaning agents.
b. Failure to adhere to the preventive maintenance program as presented in the Seller's
operations and maintenance manual, in published product manuals and in specifications.
C. Failure to adhere to all transportation and storage requirements. ZeeWeed membrane
modules may be stored up to 12 months from date of receipt and must be transported and
stored in original intact packaging out of direct sunlight in ambient temperatures between 5-
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35 Degrees Celsius. Storage beyond 12 months from date of receipt requires a written
request to Veolia to maintain membrane module warranties.
d. Introduction of destructive foreign materials and chemical agents into the membrane module.
e. Failure to maintain and provide system operating data and repair history for the life of
membrane modules which are the subject of a warranty claim.
f. Physical abuse or misuse, incorrect removal or installation of membrane modules by non -
Seller personnel including fiber damage caused by operator error in handling of membrane
modules or cassettes.
g. Unauthorized alteration of any components or parts originally supplied by the Seller.
h. Intentional damage.
12. Return Procedure
In the event that the return of a membrane module is required pursuant to this warranty, Buyer will first obtain
a Return Goods Authorization (RGA) number from the Seller. Membrane module(s) shipped to the Seller for
warranty examination must be shipped freight prepaid in environmentally controlled freight and storage with
ambient air temperature between 5-35 Degree Celsius. If Buyer desires temporary replacement membrane
module(s) to replace those alleged to be defective and returned to the Seller for warranty examination, Buyer
shall be responsible for the cost associated with any such replacements until examination of the returned
membrane modules pursuant to this warranty is complete. Any membrane module examined by Seller as
part of a warranty claim where the membrane module is subsequently found to be performing as warranted
or where a membrane module failure is not covered under the warranty will be returned to Buyer, freight
collect or disposed of by Seller and the cost associated with any membrane analysis and diagnostic work will
be levied against the Buyer based on Veolia standard labor rates.
13. Disclaimer and Limitation on Liability
To the maximum extent permitted by law, in no event shall Seller be liable for any loss of profit or revenues,
loss of production, loss of use of equipment or services or any associated equipment, interruption of
business, cost of capital, cost of replacement water or power, downtime costs, increased operating costs,
claims of Buyer's customers for such damages, or for any special, consequential, incidental, indirect, punitive
or exemplary damages arising out of or relating to the performance or actual or alleged breach of the
agreement, regardless of whether a claim is based in contract (including warranty or indemnity), extra -
contractual liability, statute, equity or any other legal theory.
15 Terms and Conditions of Sale
A - Specific Terms and Conditions of Sale
These Specific Terms and Conditions of Sale are noted here for convenient reference. Where these terms conFlict with the existing
executed AGREEMENT FOR THE PURCHASING OF MEMBRANE BIOREACTOR SYSTEM EQUIPMENT AND ASSOCIATED
CONSULTING SERVICES between Veolia and Redlands, the existing AGREEMENT terms will take precedence
1 Legal Entity for Contracting
ZENON Environmental Corporation is the name of the Seller, and means a business component of, or legal entity within the Veolia
Water Technologies & Solutions business (Veolia).
Please advise us if this Veolia entity is not set up in your purchasing system as a vendor and you do have another Veolia entity set
up. We are keen to make the purchase process as convenient as possible for Redlands.
Veolia Membrane Repfacement Agreement for the Redlands WWTP
Proposal number 587585 — revision #2 — December 20, 2024
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Veolia FY24-0098-jm
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short form: Where a short reference is required in this document, for convenience, we are called simply Veolia.
2 Payment
Veolia prefers to receive payment by wire transfer and will also accept payment by courier check. Banking details available on request.
3 Payment Terms
On approved credit, payment terms are net 30 days from customer receipt of invoice. Please see the invoicing schedule in the
price section. In the event an invoice is issued on shipment of goods from a Veolia Hungarian production facility, payment terms will
be extended by an additional 45 days to account for the additional transit time to the delivery location.
4 Proposal Validity
Prices quoted and proposal terms are valid up to thirty (30) days after the date of issue of this proposal unless confirmed with a
purchase order.
5 Bonds
Performance or payment bonds are not included in the price. These can be purchased on request but will be at an additional cost.
6 Assignment of Membrane Warranty
The Buyer will be entitled to assign to a subsequent owner of the membranes the warranties of the Seller under this Agreement,
provided that a prior written notification is sent to the Seiler and the assignment agreement contains terms and conditions which
provide the Seller with the protections of the warranties and limitations on liability contained in the Agreement. Subject to Buyer's
compliance with the foregoing requirement, such warranty rights are expressly assignable by the Buyer to a subsequent owner of the
membranes. Except as provided herein, Buyer is not entitled to extend or transfer this warranty to any other party.
7 Flight Booking
Prices quoted for installation which include airfare are either based on timely confirmation of a visit schedule or based on receipt of a
purchase order in time to book any flights seven days in advance. Additional airfare charges related to late arrival of a purchase
order will be extra and billed through to Redlands without mark-up.
8 Early Termination
In the event of contract termination other than as defined in attachment a.15 of this agreement the following will apply:
o Veolia will initiate delivery of all materials and services for which payment has been received in excess
of the value of materials and services provided by Veolia at the time of cancelation.
o Buyer will, within 36 days, make a payment to Veolia equal to the value of materials and services
provided to the point of termination, less the cumulative sum of payments paid by Buyer.
o Once terminated, there is no option to restart the agreement. No penalties or reimbursements, other
than those outlined in this agreement, shall be paid by either party
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Veolia FY24-Q098-jm
Cl,) V E 0 L I A
9 Warranty on Programming
Veolia warrants that the PLC program will conform to the specifications in the relevant sections of the CLSC and OSC (revised for
the project) and will be free from defects in workmanship when operated at all times in accordance with Veolia's written instructions.
If any defects are found and reported by Redlands within a period not exceeding twelve (12) months beyond the completion of the
site acceptance test, Veolia will make modifications to the PLC code as deemed necessary. Any changes requested by Redlands
after this period will be at the customer's expense.
10 Purchase Order Guidelines
Please confirm that your purchase order has covered the following points. This will ensure accurate and prompt order entry, product
delivery, invoicing and accounts receivables processing and will prevent administrative delays for all parties.
o Documentation — Our strong preference is to receive a hard or digital copy of your purchase order (PO) rather
than a PO number alone. Your PO can be sent by email to nam.service.pocentral(@veofia.com. If you are not
able to provide a PO, please contact us for alternatives.
o Veolia legal entity — Please be sure your purchase order is issued in the name of the specific Veolia legal entity
outlined in the quote. We will be glad to work with your purchasing department to set this entity up as an
approved supplierivendor. Please advise us if this Veolia entity is not set up in your purchasing system as a
vendor and you do have another Veolia entity set up.
0 Quotation Number — Please reference the quotation number in your PO.
0 Product— Please note which product(s) you wish to purchase along with the quoted price, particularly if
quantities or scope differ from the quotation.
0 Taxes — Please provide any required tax exemption certificates. Please indicate if taxes have been added in your
P0.
0 Payment Terms — Please acknowledge the payment terms included with the quotation,
0 Bill -to Address — Please include contact information for your accounts payable.
0 Ship -to Address — Please clearly define the delivery location and the receiver's email & telephone. Please
specify receiving hours and any speciai off-loading requirements.
0 Delivery Date — Please include your requested delivery date.
B — General Terms and Conditions of Sale
The sale of materials and services included with this offer wfll be governed by the existing executed AGREEMENT FOR THE
PURCHASING OF MEMBRANE BIOREACTOR SYSTEM EQUIPMENT AND ASSOCIATED CONSULTING SERVICES between
Veolia and Redlands, and a follow-up amendment to the AGREEMENT that will cover the scope, price and terms specific to this offer — to be
negotiated and mutually agreed to between ZENON Environmental Corporation and the City of Redlands.
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16 Signed Agreement
Through the issue of this proposal, Veolia signals their intent to enter into an agreement with
Redlands. Redlands and Veolia acknowledge that they have read and understood this agreement
and agree to be bound by the terms and conditions specified in it.
Offered by ZENON Environmental
Legal Entity: Corporation, also known as
Veolia or Seller
Accepted City of Redlands, California, also
by Legal known as Redlands or Buyer
Entity:
Authorized
Signature
by: Mario Saucedo
Title: Mayor
Signature
Date:
Signature:
Purchase Order No:
1 /21 /2025
Upon acceptance of this proposal, please forward the following nam.service. pocentralveolia.com
either or
• by email with .pdf attachments or • by postal mail. Veolia Water Technologies &
1) this signature page completed Solutions
to: attention: Contracts Administrator
2) a hard copy of your purchase order, and Please contact
3) any required tax exemption certificates nam.service. pocentralgveolia.com
for correct address
This agreement comes into force when Veolia has issued a formal acceptance of Redlands'
Purchase order or formal acceptance of this Redlands signed agreement.
Doc. control: Author JE Filename: City of Redlands 587585-2 tv1RA Dec-202024
Last modified: 12/2012024 1 Al FM Technical review: RM{rev0} Commercial review: RN1(rev0)IJD(all revs) DOA: GMRP
Veolia Membrane Replacement Agreement for the Redlands WWTP
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Attachment A ZeeWeed 500D RX12 430ft2
Membrane Fact Sheet
Application
Product
Width (A)
Header -to -Header
Depth (C)
mm (In)
Length(B)
mm (in)
mm (in)
MBR
500D
944
1,940
49
(33-2)
(76.4)
(1,91
Water
501 D
52
(2.1
SOODs
1,577
52
(62-1)
(2AI
Application
Membrane
Max.
Lifting
Material
Nominal
Fibre
Surface
Fibre
Flow
Surface
Shipping
Weight t
Pore
Diameter
Properties
Tensile
Path
Area mz
01:2)
Weight'
kg (lb)
kg (1b)
Size
(pm)
(mm)
Strength
(N)
MBR
40.0
26
26 - 75
PVDF
0.04
2.2
Non -Ionic
> 600
Outside-
430
61)
(61 - 164)
&
Hydrophilic
In
Water
40.9
32
30-74
1.9
(44D)
(70)
(66 - 163)
32-5
26
26.72
1.9
(35O)
(57)
(57 - 159)
Packaged
' Varies with solids xwmulabon
Operating & Cleaning
Specifications
Applicatlon
TMP Range
Max.
Operating
Max.
Cleaning PH
Max. Ch
kPa fpslg)
Operating
pH Range
Gleaning
Range
Conc'n
Temp.'C (°F)
Temp. •C (T)
(pp-)
MBR
-55 to 55
40
5,0-9.5
40
2.0 - 10.5
1,000
(-6 to 8
(104)
(104)
(<30°C)
2.0 -10.0
Water
•90 to 90
13 to 13
(30.40°C)
voolla Water Teckawaogip
Please contact us via-
www-"0Uewatenech noI0gI".com
WATER TECHNOLOGIES
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Attachment B Cassette Refurbishment
Recondition existing cassettes using the latest cassette
components
What is Cassette
Refurbishment?
Veolia's ZeeWeed500D cassette refurbishment
service allows you to fully recondition your drinking
water or wastewater cassettes at less cost than
purchasing a brand new cassette. Drinking water
cassettes may be refurbished at your plant or in a
Veolia factory - an environmentally friendly and cost
effective solution. Wastewater cassettes will be
refurbished at your plant by an experienced
ZeeWeed cassette technician_
• Removal of all existing plastic parts and
associated hardware
• Re-passivabon of stainless steel cassette frame
(DW only, done at factory)
• Installation of all new, current ZW version parts
(module mountings, securing mechanisms.
aerator tubes, etc.), and all associated hardware
• Installation of new ZW modules by trained staff
• A dry pressure decay test to ensure correct
installation of all new cassette components and
to ensure ease of reinstallation
• Proper packaging and crating of refurbished
cassette for shipment back to your plant tfactory
refurbished cassettes only)
• Onsite cassette refurbishment service can be
tailored to meet each customer's needs
When to Consider Cassette
Refurbishment?
Cassette refurbishment should be considered
whenever a major membrane replacement cycle is
undertaken,
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ZeelNeed 500D Cassette Refurbishment
Take Action
For more information about Veolia's cassette
refurbishment service and for all your water treatment
needs, contact your Regional Sales Manager or
Regional Lifecycle Manager to discuss your options.
Frequently Asked Questions
Who is responsible for disposal of existing
modules?
The customer is generally responsible for disposal of
existing modules prior to shipping the cassette out for
refurbishment -
Are there any cleaning requirements for
packaging of the cassette?
For drinking water cassettes, a thorough wash down
of the frame is required before packaging. For
wastewater cassettes, a thorough wash down is
required prior to beginning the onsite refurbishment
work_
How does wastewater cassette refurbishment
differ from factory refurbishment of drinking
water cassettes?
Wastewater cassettes are refurbished by trained
Veolia field service representatives at the customer's
plant. Refurbishment parts and new modules are
shipped directly to site for the work. Drinking water
cassettes may be refurbished at the factory or at your
plant, depending upon your needs.
For factory refurbished drinking water cassettes,
how long does refurbishment take to be
completed?
Approximately twenty weeks, but the exact length of
time is dependent on scope and the customer's
location. Please contact your Regional Lifecycie
Manager if you should want further details.
Veolla Wate: Technoiog o-s
t?iease 60rtiHGS u6 VW.
wwwNeotiawstertachnoiogWs. c om
How are the empty cassette frames packaged and
shipped for refurbishment?
Cassette frames needs to be turned on their side for
shipment and firmly attached to a skid for forklift
handling. Skid and any crating material must conform
to international shipping wood product rules. More
information can be found at httpJlwww_ispml5.com.
Customer completes this work with Veol'sa's
guidance.
What are the maximum crate dimensions for
shipping?
Returning cassette frames must be able to fit four to
a standard 40-foot-high cube container. Maximum
crate dimensions are below:
Length Width Height
110' (279 cm) 1 84• (214 cm) 95• (za1 cmp
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