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December 10, 2008 CONFIDENTIAL

Mark Grushayev
Program Manager
Veolia Water North America - West, LLC
601 Canal Blvd.
Richmond, CA 94804

Subject: Richmond WWTF Nuisance Odor Control Management Evaluation, Proposal

and Letter of Engagement

Dear Mr. Grushayev,

SSD Consulting (SSD), has extensively studied the odor issues surrounding Veolia Water North America
– West “(Veolia”)‘s Waste Water Treatment Facility on Canal Boulevard, Richmond, California (the
“Facility”) under contract to the City of Richmond. The Facility currently experiences problems with
fugitive emissions that cause nuisance odors for nearby residents.

On two occasions, October 23, and November 14, 2008, we met and discussed this issue wherein you
inquired as to SSD’s ability to help Veolia and the City solve this problem. Rod Satre has reviewed the
“Odor Evaluation Report” prepared by Webster Environmental Associates, Inc and dated September,
2007. While the solutions for control offered in that report are functional, they do not actually offer a more
efficient approach that limits the massive undertaking suggested in that report.

This project has regrettably taken longer than expected due to situations outside of the author’s control.
However, the information presented below will be able to be rapidly implemented by Veolia personnel
and by others in tandem with their business focus.

If you have any questions or concerns, please contact me at your earliest convenience (510-837-8713).
We are looking forward to addressing any additional concerns or request for other guidance for Veolia.

Sincerely,

Rodrick Satre
Principal, SSD Consulting

Attachment: Report and Recommendations - Odor Body Issues, Causes and Recommended Solutions

SSD CONSULTING
530 SANTA FE AVE, RICHMOND, CALIFORNIA 94801

PHONE/FAX 510.232.5059, MOBILE 510.837.8713

RDSATRE@LIVE.COM
Veolia Nuisance Odor Mitigation Proposal
December 10, 2008

Approved by Veolia Water North America - West, LLC

Signature:

Name

Title

Date

Attachments (2)

Page 2 of 5
Veolia Nuisance Odor Mitigation Proposal
December 10, 2008

Attachment 1:

Richmond WWTF Nuisance Odor Control Management Evaluation

Proposal
SSD presents this Proposal for a Phase 1 evaluation of the nuisance odor problem at the Richmond
WWTF. In September 2007, Webster Environmental Associates, Inc. prepared the “Odor Evaluation
Report” for Veolia and the City (the “Webster Report”). SSD’s scope of work entails a review of the
Webster Report, identification of likely sources and transport mechanisms for probable odor causing
emissions, and preliminary design and engineering analysis for mitigating nuisance odors generated by
the Facility. Included in the scope is an operational analysis of the treatment plant and immediate
collection systems and independent assessment of mitigation measures that may provide quicker
implementation, greater effectiveness and lower cost than those recommendations presented in the
Upon completion of Phase 1, SSD will present a report of its findings and a Phase 2 Proposal to
implement the identified measures. Should Veolia decide to engage SSD with additional, related work,
the implementation will occur in Phases 2, 3, and 4. Phase 2 is Design and Engineering, Phase 3 is
Construction and Phase 4 is Operations.

SPECIFIC MEASURES
The following specific Odor Mitigating Measures (“Measures”) are addressed in this Proposal.
1. Evaluate already published materials regarding considerations, environmental impacts, design,
construction and operation of the Facility relative to odor issues.
2. Meet and confer with Veolia management to discuss findings and to resource operational data useful
in this Phase 1 project.
3. Provide a prioritized listing of odor types, transport methods and dispersion models used to define
the routes odors take to impact the immediate community of Point Richmond Residents.
4. Access and source alternative methods of mitigation that provide lower cost and more immediate
correction capacity through SSD’s associations with its engineering and operational network of
associates across the world.
5. Prepare recommended practices to mitigate odors with little to no fixed asset capital outlay.
6. Prepare conceptual designs of limited capital outlay or expense type actions that would further
mitigate odor transport to the community.
7. Provide a written report that describes our findings.
8. Make one formal presentation to the City. Such presentation would be made jointly owned by SSD
and Veolia.
9. Optional and at no additional cost, SSD and Veolia may elect to publish findings in appropriate
technical journals.

SEQUENCE OF WORK
This Sequence of Work describes the four phase approach to developing the Measures.

Phase 1- Assessment
1. Scope- The following work will be performed for steps 1 through 8 above:
a. Review prior reports.
b. Operational analysis of the facility including review of historical operating data.
c. Economic Analysis of alternatives already presented by others
i. Capital Budget

SSD CONSULTING
530 SANTA FE AVE, RICHMOND, CALIFORNIA 94801

PHONE/FAX 510.232.5059, MOBILE 510.837.8713

RDSATRE@LIVE.COM
Veolia Nuisance Odor Mitigation Proposal
December 10, 2008

ii. Incremental Operating Expenses

d. Assessment of Interim, lower cost methods to curtail odor complaints

i. This includes
1. Transport properties of odor bodies
2. Mitigating measures and likelihood of success
3. Research database and bibliography on control of WWTP odors
e. Proposed Interim and longer term solutions on a weighted scale.
f. Phase 1 Study Report

Clarifications:
1) All equipment quantities and sizes identified within the Phase 1 Study Report are approximate. The
final sizing and quantities of equipment, and site arrangement may vary based on final design
requirements.

SCHEDULE-
SSD and Veolia to initiate Project with a kick-off meeting within 2 weeks of LOE execution. All work to be
completed within 90 days of kick-off.

Pricing
Phase 1
Price: $5,000.
The price for Phase 1 is presented on fixed fee basis. Veolia shall pay fifty percent (50%) of the fee upon
execution of the LOE. The balance due shall be payable upon submittal of the final report.
Should the City and SSD agree to perform additional out of scope work, the fee for such work shall be
negotiated and any such work shall be approved in writing.
Expenses
Reasonable expenses, plus 10% associated with this Scope of Work shall be added to the fee for Phase
1. Mileage, when applicable, shall be billed at the standard IRS rate. Any expense exceeding $100 shall
be approved in advance.

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Veolia Nuisance Odor Mitigation Proposal
December 10, 2008

Attachment 2

Hold Harmless, Confidentiality and Intellectual Property Agreements:

Hold Harmless Agreement:
The proposed scope of work has limited liability in the execution or implementation of the work conceived
to be provided under the terms of the agreement.

Thereby Veolia and SSD Consulting mutually agree to hold harmless the other party against any and all
liability and claims and further indemnify the other party against any and all claims related to this project
and actions of either party.

No third party claims against either party are allowed nor anticipated in the execution of this work. Each
party will be responsible for their own actions under the Laws of California, USA.

By:______________________________ By:________________________________

Date:___________________________ Date:_______________________________

Representing:____________________ Representing:________________________

Confidentiality and Intellectual Property Agreement:

During the period of performance and for one year following completion of this project and any related
additional work thereafter, all confidential information developed by SSD Consulting and or Veolia in
direct execution of this work will be held in confidence and will be released generally or to third parties
only upon the written agreement of both parties.

Any Intellectual Property developed under this agreement will be jointly owned by both parties equally
and any rights to exercise the benefits of such developed IP will be agreed to in writing and shared
evenly as to be determined as the need and or opportunity arises.

By:______________________________ By:________________________________

Date:___________________________ Date:_______________________________

Representing:____________________ Representing:________________________

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