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NEWS LEAK DETECTION Wachs Water Services Awarded Leak Detection Contracts Wachs Water Services announced that it has recently been awarded several multi-year contracts to inspect up to 4,000 miles of critical water mains for leaks in Connecticut and Texas. The contracts have a combined value of approximately $1 million and further strengthen Wachs Water Services position as a leader in advanced leak detection solutions. The prolonged drought conditions in many parts of the United States over the summer have resulted in critical water pipelines bursting in record numbers around the country, causing significant repair backlogs, service interruptions, and business and road closures. Soil surrounding buried water pipelines dries and shrinks in the summer, and freezes and expands in the winter, which can cause water pipes to shift and develop leaks. If the water main is old or in a structurally deficient condition the changing ground conditions make the water main even more susceptible to leaks or failures. To help utilities manage the increase in water main breaks and to conserve water resources, Wachs Water Services will deploy a variety of leak detection solutions including correlator listening devices and the Investigator in-line condition assessment technology for small diameter distribution mains, and the LDS1000 in-line acoustic/CCTV system for large diameter water transmission lines. “We are creating a cost-effective portfolio of proven leak detection technologies that offer solutions for utilities of all sizes when dealing with water main breaks and water loss,” said Cliff Jones, Vice President of Business Development, Wachs Water Services. “We are helping utilities nationwide to develop proactive water pipeline management programs that reduce repair and replacement costs, and significantly minimize the impact of water main leaks.” GREEN INFRASTRUCTURE Report Released on Green Infrastructure Barriers & Gateways The Clean Water America Alliance (Alliance) released a report, Barriers and Gateways to Green Infrastructure, in an international webcast recently as part of the Virtual H2O conference. It is based on a national survey conducted last Spring that solicited more than 200 utilities, NGO’s, government and private entities to determine what sorts of obstacles they experienced, and opportunities were revealed, when implementing programs. “Green infrastructure comes in many shades and slices and so do the benefits and barriers,” explained Ben Grumbles, President of the Alliance. “Green infrastructure pioneers need support, guidelines, and assurances to create the foundation of practice needed for more common adoption. A sustained campaign of education and collaboration will reduce risk and uncertainty and open the door for more communities and organizations to shift the paradigm from gray to green.” The report summarizes the results of the survey and is informed by the ongoing green infrastructure research and developed and refined through conversations with partner organizations including American Rivers, The Conservation Fund, Low Impact Development Center, Smart Growth America, and the Alliance’s Urban Water Sustainability Council. The research survey was funded by the Turner Foundation to help inform U.S. EPA’s upcoming Stormwater regulations due to be released December 2, 2011. It can be downloaded at http://bit.ly/gireport. The report was planned to be a stimulus for advancing policy and practice at the Urban Water Sustainability Leadership Conference, Oct. 3-5, in Milwaukee. U.S. EPA’s Nancy Stoner, the Acting Assistant Administrator for Water, addressed the stormwater rule and how it will impact urban water management. Key recommendations include urging EPA to use new stormwater regulations and permits to help drive green infrastructure, fully measure and account for economic and environmental benefits, embrace regional flexibility and results-oriented approaches, and focus increased federal funding for green infrastructure initiatives. Coordination among other federal agencies is critical, especially the USDA, U.S. Department of the Interior, and U.S. Department of Transportation. This can also be true at all levels of government. Only through greater coordination, education, and funding can green infrastructure be advanced meaningfully and sustainably. GeoTree Technologies a Finalist in National Cleantech Open GeoTree Technologies Inc has been selected as a finalist in the 2011 National Cleantech Open. GeoTree uses industrial waste materials to make products that are used for pipe and road infrastructure rehabilitation. “Unemployment is the key issue facing this country, and infrastructure is in a state of severe decay. We need to find solutions to these macro issues,” said Amir Hoda, President and CEO of GeoTree Technologies. “The reason for the Cleantech recognition is our ability to help solve these problems with solutions than are more cost-effective than current solutions. GeoTree’s technology fixes America’s infrastructure at a lower cost, while creating construction jobs, manufacturing jobs and green-collar jobs.” GeoTree’s technology rapidly creates a new structural pipe inside the old pipe, with little to no public disruption. This process requires no digging, virtually eliminating traffic delays and associated idling cars and trucks, thereby eliminating as much as 90 percent of the greenhouse gas emissions. This technology is being embraced by states, including Georgia, Virginia, Texas and Michigan. The Cleantech Open runs the world’s largest cleantech accelerator. Its mission is to find, fund and foster entrepreneurs with big ideas that address today’s most urgent energy, environmental and economic challenges. To date, it has helped raise over $300 million in capital and created an estimated 2,500 green-collar jobs. GeoTree Technologies is located in Lafayette, Colo. For inquiries, please contact Benjamin Cook at 720-921-8810 or by email at info@geotreetechnologies.com. education programs of the Alliance. Recommendations were 16 Water Utility Infrastructure Management November/December 2011
By Steve Maxwell M A X W E L L R E P O R T The “Lucky 13” Going Forward The stock market has not had a fabulous year in 2011 — the S&P 500 and the Dow Jones Industrial Average sit about where they started the calendar year, and are right now trading at around 90 percent of their yearly high point. Water stocks, lamentably, have done even worse. As one can see from a quick glance, while many of the stocks in our revised Table are trading at around 80 percent of their yearly highs, several are trading in the range of 60 percent and a couple are trading down at around 50 percent of their high – notably Mueller Water, which continues to suffer on-going losses, and Aegion (the new name for Insituform). You will note that we have made several changes to our table of water stocks. First, we have lost a few companies due to industry consolidation and acquisition — notably Ameron and Nalco, which were acquired, respectively, by National Oilwell Varco, and Ecolab at strong valuations. Second, we dropped at least one company — Energy Recovery — due to its small size — less than $40 million in revenue, and continuing net losses. The company, which came to the public markets a few years ago with high expectations, has seen its stock price continue to decline — from about $9.00 to a current level of less than $3.00. Finally, we dropped a few other companies because they simply are not really that focused on water — i.e., less than 20 percent of their total revenues are derived from water. This included Danaher, Robbins and Myers, Federal Signal and URS Corp. One bright spot from the perspective of the security analysts has been the emergence of Xylem — the former water division of ITT — as a separate publicly traded company. Indeed, Xylem now represents one of the largest — if not the largest — publicly traded and pure-play water company available on the U.S. stock markets. It is likely to become somewhat of a bellwether for the health and growth prospects of the overall water industry. These changes leave us with a “Lucky 13” of more pure-play water companies whose performance we will follow going forward. The outlook for 2012 is certainly tenuous at best, as the global economy continues to face massive debt problems and political uncertainties in many parts of the world. However, many continue to believe that water companies represent a true asset play, and should be one of the better places to put your dollars for long-term appreciation. Steve Maxwell is Managing Director of TechKNOWLEDGEy Strategic Group (TSG), a Boulder, Colo.-based management consultancy specializing in merger and acquisition advisory services, and strategic planning for the commercial water and environmental industries. Maxwell is author of the annual Water Market Review, and a recent book titled The Future of Water. He has advised dozens of water firms on strategy and transactional issues, and can be reached at (303) 442-4800 or maxwell@tech-strategy.com. WATER DOLLARS Company Price % of 52-wk hi Revenue EBITDA (000,000) Market Cap. Enterprise Val/ EBITDA EBITDA/ Revenue ROE Performance TSG Index Aegion (AEGN) 15.86 53% 928 88 $619 8.8 9.5% 4.8% 8.4 Badger Meter (BMI) 29.3 64% 267 44 $440 9.9 16.5% 14.0% 14.0 Calgon Carbon (CCC) 15.04 83% 535 88 $857 9.9 16.4% 13.0% 13.8 Franklin Electric (FELE) 45.43 87% 809 122 $1,045 8.9 15.1% 14.0% 13.0 Gorman-Rupp (GRC) 29.59 81% 351 61 $621 10.0 17.4% 16.0% 14.9 Layne Christensen (LAYN) 23.45 62% 1,100 99 $457 4.8 9.0% 8.6% 7.7 Lindsay Manufacturing (LNN) 53.93 63% 479 68 $685 8.6 14.2% 15.0% 12.7 Mueller Water (MWA) 2.13 44% 1,340 96 $332 9.9 7.2% -9.0% 4.7 Northwest Pipe (NWPX) 23.37 76% 466 31 $220 10.3 6.7% 3.0% 7.0 Pentair (PNR) 36.74 87% 3,340 476 $3,637 10.4 14.3% 10.0% 12.2 Tetra Tech (TTEK) 21.98 81% 1,790 202 $1,385 7.1 11.3% 12.0% 10.2 Watts Water Tech. (WTS) 36.37 89% 1,390 191 $1,309 7.9 13.7% 6.4% 10.5 Xylem (XYL) 24.35 86% 3,740 615 $4,505 9.0 16.4% 0.0% 10.9 Total 16,535 Financial data as of December 10, 2011 November/December 2011 TSG Index: December, 2011 8.84 Water Utility Infrastructure Management 17
Page 2 and 3: For more information visit www.uimo
Page 4 and 5: CONTENTS November/december 2011 COV
Page 6 and 7: 36 34 Teaming Up for Water Delivery
Page 8 and 9: CONTRIBUTORS Pamela A. Malone serve
Page 10 and 11: FROM THE PUBLISHER’S DESK CWC and
Page 12 and 13: NEWS WEFTEC 2011 Attracts Strong Cr
Page 14 and 15: NEWS MEETINGS U.S. Conference of Ma
Page 18 and 19: W A S H I N G T O N R E P O R T Mob
Page 20: For more information visit www.uimo
Page 23 and 24: the Wadsworth Mutual Water Company
Page 25 and 26: Water Utility Infrastructure Manage
Page 27 and 28: Background Utility: Douglasville-Do
Page 29 and 30: screen. The ratio of productive, sc
Page 31 and 32: There are common issues across util
Page 33 and 34: P3 Implementation in Canada Public-
Page 35 and 36: Tampa Bay Water, Veolia Water North
Page 37 and 38: eports. Future reviews, validation
Page 39 and 40: The consequences of failure usually
Page 41 and 42: PROFESSIONAL INDEX Company Website
Page 43 and 44: Uniting the Trenchless World Presen

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