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EXHIBIT # 1 <br /> Work Order Number 1 <br /> Membrane Replacement for RO Skids # 1 and #2 and <br /> Product Water Quality Evaluation <br /> North ( Hobart) RO Water Treatment Plant <br /> Proiect Understanding <br /> The existing membranes on skids # 1 and #2 at the Hobart water treatment plant are nearly 13 <br /> years old and should be considered for replacement . The existing skids are a 32x16 two-stage <br /> array consisting of 288 � 8 -inch diameter membrane elements each. Replacement will consist of <br /> removal and disposal of the existing elements , swabbing/cleaning of the existing pressure vessels , <br /> disinfection of RO skid product piping, installation of new membrane elements , flushing, and <br /> startup and testing of new membranes. The work will be performed by an original equipment <br /> manufacturer (OEM) who has experience performing this type of work. The work will be <br /> publicly advertised for bidding through Indian River County ( IRC) purchasing department . <br /> This work order will also consist of evaluating the impact of membrane selection on the finish <br /> water quality of each of the RO plants (North Hobart and South Oslo Rd) and evaluation of <br /> alternative finish water stabilization techniques . Based on technical reports from Carollo <br /> prepared in May 2006 and February 2011 , the finish water at both facilities exhibits scaling and <br /> corrosive tendencies which warrant further consideration. Improvement to finish water quality <br /> through increased hardness and alkalinity techniques is recommended and will be evaluated as <br /> part of this work order . <br /> SCOPE OF SERVICES <br /> The following scope will consist of finish water quality evaluation and a two-phase membrane <br /> replacement program. <br /> MEMBRANE EVALUATION <br /> The first phase will be conducted to determine if membrane replacement is determined to be <br /> reasonably necessary . If the results of Phase I indicate membrane replacement is recommended, <br /> then the Phase 2 scope of services will be performed to replace membranes . Phase 1 will consist <br /> of reviewing the existing plant operating information. Phase 2 will consist of preparation of final <br /> membrane replacement scope of work, bidding phase , and observation of installation and <br /> implementation of membrane replacement . <br /> Task 1 — Review Performance of Existing RO Membranes <br /> Initial review of some of the plant operating data suggests the older membranes provide better or <br /> lower permeate conductivity water, but at a higher operating feedpressure . There also appears to <br /> be a few anomalies between the older and newer RO skids in terms of performance consisting of <br /> overall rejection , feed pressure , pressue drop (dP ) across the RO skid membranes , and profile <br /> K :AWPB_Civil\General\Miller\Indian River County\Hobart Membrane Replacement rev3 with FW Stabilization . docxPage I of 4 <br />