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NOVEMBER 2016 — Financial close has been reached on the Vista Ridge Water Supply Project, allowing Garney to begin overseeing the design, construction, and financing of a 142-mile pipeline. As one of the fastest-growing cities in the nation, the 142-mile pipeline is a critical project for San Antonio as it will deliver 16.3 billion gallons of water to the rapidly growing community.

The San Antonio Water System (SAWS) board voted unanimously to consent to the financial close. Garney will continue to assume the regulatory, financial, and construction risk of the project. This public-private partnership (P3) venture is a significant milestone for Garney. It signifies Garney’s ability to invest in the financial and logistical requirements to undertake the $927 million program.

Vista Ridge will expand San Antonio’s water supply by 20 percent, decreasing pressure on the sensitive Edwards Aquifer, which is subject to federal, state and regional pumping regulations. SAWS is a national leader in water conservation, and the Vista Ridge pipeline will complement SAWS’ continued conservation efforts and development of other water resources as San Antonio adds one million residents by 2040.

Construction is set to begin in early 2017 and last through 2019, with water flowing in early 2020. SAWS and its customers will only pay for the water that actually makes it to San Antonio. After 30 years, in 2050, SAWS would own the pipeline.

“Achieving financial close is a huge milestone and development of this important project,” said Scott Parrish, Chief Operating Officer of Garney Construction. “Our team is ready to commence construction and be in a position to deliver water to San Antonio in 2020.”

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OCTOBER 2016 – Since joining Garney six months ago, Tim Porter has developed impressive growth within the power and industrial market. Porter joined Garney in April 2016 as Business Development Manager with a sole focus to broaden Garney’s client base in the power and industrial market sector throughout the United States. He brings 27 years of experience in the private sector, primarily within the power market delivering large-scale water supply and related infrastructure. This week, Porter sat down to share insight on the direction of the market and the plan for the future.

With more than 27 years of private and industrial construction expertise, what prompted you to join Garney?

Garney is a national leader in the water resource market. With the power and industrial market on a slow but steady comeback, I saw Garney in a great position to where I could help leverage Garney’s leadership role, national footprint, and established industry relationships within the market sector.

What have you learned at Garney within the past six months that will drive future growth in the private market sector?

As a previous competitor of Garney’s, I was surprised to learn the level of commitment to attracting bright young talent. Combining this with the long-term experienced ‘gray beards’ is a solid package for growth.

One challenge is transitioning some of the relationship capitol of the established individuals so the company can maintain a network of layers with our clients and engineering partners.

How will you leverage Garney’s expertise in water and wastewater infrastructure within this market segment?

We have already begun by bringing young talent to lead complicated power and industrial projects.  This exposure will pay dividends for many years to come. It also creates an urgency for managers to share their skills and expertise. The challenge is this requires more time from an already stretched contingency of the company.

From your perspective, what challenges must the power and industrial market overcome with regard to stringent regulations in maintaining existing infrastructure?

The complete lack of a comprehensive energy plan in our country has hindered the power market for nearly all of my career. Regulatory impacts and unrealistic timelines have forced closures of many valuable assets within the coal and nuclear segment prior to the end of their anticipated design life. These types of assets will not be easily rebuilt in a pinch.

Garney stands to benefit from the most recent regulatory assault. The new ELG (Effluent Limitation Guidelines) regulations will prohibit coal-fired power plants from discharging ash related effluent through current permitted outfalls. This in itself creates pipeline and treatment opportunities, but the short deadline creates urgency that will consume all of the capable contractors and vendors’ resources. Garney is working to position ourselves to capitalize on this perfect storm via strong joint venture agreements and building new relationships with Owners.

What is unique about working in the power and industrial market?

The power and industrial markets present tough projects with tight timelines that force contractors to hit the ground running with very little design completed. Contractors who stub their toe early can face crippling damages along with being ostracized in the industry.

What is your strategy for success?

It may sound simple, but I believe in showing up. So many people are content to work through email and long distance communication. It is nearly impossible to build a strong relationship and garner the type of insight necessary to solve a client’s issues from afar. Once you show up, be a resource.  There are plenty of vendors who will buy lunch but fail to deliver any value. If you spend time with the client, it is almost impossible not to learn about the business. Once you do that, try to understand what they want before you get to what you want.

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OCTOBER 2016 – Work is officially underway with the groundbreaking of the new KC-46A Tanker Sustainment Campus at Tinker Air Force Base in Oklahoma City, Oklahoma. This future depot maintenance facility will be home to the Air Force’s next-generation aerial refueling aircraft, the KC-46A Pegasus. The Contrack Watts / Garney Federal joint venture will construct $36 million in new utility infrastructure for the depot maintenance facility, including water, wastewater, industrial waste, storm, and dry utilities. This project marks the first of several military construction projects to deliver KC-46 capabilities to Tinker Air Force Base. The KC-46A Pegasus, designed by Boeing, will refuel military aircraft while employing multiple layers of protection to detect and defeat in medium-threat environments.

The 158-acre campus will provide a number of hangars, ramp infrastructure, software innovation labs, and engine test facilities. This facility will benefit the nation’s generations for years to come, and will generate more than 1,300 new jobs for the State of Oklahoma. The Contrack Watts / Garney Federal team anticipates completing construction by spring 2018.

This is a milestone project for Garney Federal. “We are excited to serve our Air Force through this Army Corps of Engineers contract,” said Jay McQuillen, P.E., President of Garney Federal. “Working with our pipe operations and industry partners, we see this as an opportunity to add the Federal customer to Garney’s already successful public client operations. This project will carry us well into 2017, and allow Garney Federal to build Government contracting capabilities.”

Learn more about the KC-46A Tanker Sustainment Campus and how the KC-46A Pegasus tanker will provide security for our nation’s defense.

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OCTOBER 2016 – The year 2014 marked one of the worst droughts in Texas history, driving the City of Abilene, Texas, to initiate the PK Second Stage Drought Strategy project to develop available water sources.

Stage One of the City’s plan, the Hamby Water Reclamation Facility and Indirect Reuse project, was completed in 2015 providing much needed relief to the area. The raw water augmentation from the Hamby project only offset 25 percent of the daily water demands, which was not enough to counteract the historic drought.

Enprotec / Hibbs & Todd, Inc. (eHT) was tasked to develop the design for improvements to use brackish raw water from Possum Kingdom Lake and desalinate the raw water to a sufficient level to match current raw water quality from Hubbard Creek Reservoir. The City’s goals required upgrading the existing Possum Kingdom Lake intake pump station, owned by the Brazos River Authority, installation of 42 miles of raw water, product water and concentrate pipelines, and a raw water roughing facility (RWRF) designed to desalinate raw water prior to final conventional water treatment.

With the City’s objective to start using Possum Kingdom Lake water no later than the summer of 2015, eHT determined Construction Manager at Risk (CMAR) delivery would be vital in meeting the project’s aggressive schedule. Garney was selected as the CMAR through a value-based selection process in late 2014 and worked with eHT to fast-track the schedule. This included purchasing long lead materials and developing subcontracted scopes while final design was underway. Features of this critical project included:

RAW WATER PIPELINE: 48,890 LF of 36-inch C303 bar wrapped pipe, 565 LF of 48-inch steel cased bores, two connections to existing facilities, blow-off and ARV appurtenances

PRODUCT WATER PIPELINE: 36,730 LF of 36-inch C303 bar wrapped pipe, 3,374 LF of 36-inch HDPE horizontal directional drill (HDD), 804 LF of 48-inch steel cased bores, four connections to existing facilities, blow-off and ARV appurtenances

CONCENTRATE PIPELINE: 70,332 LF of 12-inch PVC pipe, 13,300 LF of 14-inch HDPE, 45 HDDs, outfall structure, and ARV appurtenances

Construction of the 36-inch raw water and product water pipelines was completed in November 2015 allowing the transfer of water to the City of Abilene. Today, the City continues to take a leadership role within the region by exploring opportunities with eHT and Garney to conserve available water supply. With water security becoming a growing issue in West Texas, the City remains diligent in determining solutions to provide additional water now, and for future generations to come.

“The City of Abilene is proud to have implemented a second stage short-term drought response strategy that included 30 miles of raw water, product water and concentrate pipelines along with the construction of a Raw Water Roughing Facility designed to partially desalinate raw PK water prior to being sent to Abilene for final, conventional water treatment,” said Tommy O’Brien, Executive Water Utilities Director for the City of Abilene. “Critical challenges that were successfully met include fast-track design and construction of a Reverse Osmosis system.”

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OCTOBER 2016 – Following years of action by a diverse alliance of water sector organizations, the Water Resources Development Act (WRDA) of 2016 has passed with strong bipartisan support. This is a crucial step to investing in the future of water infrastructure. The bill passed with a 95-3 vote on September 15 and is now pending consideration by the House.

Since the development of this bill, Garney has maintained an active presence in voicing support through local congressional representatives. If passed, this hallmark legislation will authorize new and existing water infrastructure financing through fiscal year 2021. Impactful authorizations and reforms to the bill include:

• Investment in U.S. Army Corps of Engineers water resources and conservation projects including: navigation, flood management, and ecosystem restoration
• Aid in reducing communities’ public health risks and rural drinking water systems
• Development of financing for innovation in water technology

Learn more about the importance of this bill and its potential impact through the Library of Congress.

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APRIL 2016 — The City of St. Joseph, Missouri, has a metropolitan population of 128,000 people. The City and the majority of its surrounding area is served by a single wastewater treatment facility, the Water Protection Facility (WPF). The facility neighbors heavy industrial and food processing plants and is adjacent to the Missouri River, which serves as its discharge location. This secondary treatment facility is currently permitted for an average design flow of 27 million gallons per day (MGD). It is fed domestic, commercial, and industrial wastewater by a separated sewer system on the east side of the City and a combined sewer system on the west side. Additionally, three industrial plants send pre-treated industrial waste directly to the facility.

With ammonia limits becoming more stringent, two studies were commissioned by the City to analyze their processes. First, a facilities plan study, followed by a study to further evaluate improvements to the WPF that would address anticipated ammonia limits. Based on the analysis, the City determined that upgrades would be required to meet future regulatory requirements, such as the need for nitrogen and phosphorus removal. This prompted the Ammonia Removal Improvements, a $50 million project consisting of improving ammonia removal, adding a BioSolids dryer facility, and replacing an aging headworks and grit facility.

Garney is currently serving as the wastewater treatment plant contractor to improve the existing facility to meet initial ammonia limits, while the overall goal is to address future, more stringent, effluent limits for ammonia, total phosphorous, and total nitrogen.

Improvements to the facility consist of separating the industrial and domestic influent flows, creating two trains within the plant. The domestic aeration basins are a BNR A20 process for biological nutrient removal, which were installed in the existing aeration basins. The industrial process is an activated sludge BNR system, featuring a five-stage Bardenpho process. Construction of the industrial aeration basin was a significant undertaking as the existing tank, originally constructed for aerobic digestion, was to be reused. The inside of this tank, approximately the size of a football field, was completely reconstructed and increased in size vertically to allow greater volume and provide sufficient hydraulic head for ammonia removal and future nitrogen removal process.

This two train system allows the large industrial flows to skip treatment at the plant and reduces the need for air, making the system more efficient. Improvements at the facility are set to be completed by August 2016.

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APRIL 2016 — Garney employee-owners recently installed 12,000 LF of PVC waterline and 200 new spigots throughout Villa Aleman, Dominican Republic, bringing clean water to 1,500 people. Villa Aleman had no potable water source and many residents were relying on rainfall collection or contaminated shallow aquifers for their water supply. In partnership with The Living Water Project and Knox ProCorps, Garney sent manpower to install the ½-inch to 4-inch waterline in connection to a new deep well. During construction, Garney worked closely with the community and newly established Villa Aleman Water Committee.

Garney employee-owners Ben Ramsbottom, Clay Greene, Gary Minnich, and Jeff Seal helped the Committee install more than 2,000 LF of pipe by hand each day. In addition, helping with the water pipeline construction provided an opportunity to educate the Committee on the proper alignment, services, and connections required for future installations and maintenance. Garney employee-owners donated the pipe and provided the necessary tools and parts for the Water Committee to maintain their system for months to come.

“It was a humbling experience and it made me look at things differently upon my return,” said Jeff Seal, Operations Manager. “In living Garney’s goals and philosophies, we helped many people in need and made some great memories in the process.”

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JANUARY 2016 — California American Water selected Garney Pacific to construct the majority of its $92 million desalination pipeline network. Concurrently with two other water pipeline contractors, Garney Pacific will construct 22 miles of pipelines, pump stations and storage facilities along the Monterey Peninsula to deliver desalinated water to 100,000 residential and commercial customers. Garney Pacific, a subsidiary of Garney Holding Co., was established in 2015 to focus operations on constructing water and wastewater projects in Northern California.

The Monterey Peninsula Water Supply Project will include a source water intake system, a 9.6 MGD or 6.4 MGD desalination plant, brine discharge system, product water conveyance pipelines and storage facilities, and an aquifer storage and recovery (ASR) system. Once complete, the new network will replace reliance on the Carmel River as a primary source of water supply. With schedule and budget as primary drivers in the qualifications-based selection process, California American Water will conduct value engineering efforts with all three water pipeline contractors during the first half of 2016.

“The award of the Monterey Peninsula Water Supply Project is a significant achievement for Garney Pacific and anchors our expansion into Northern California,” said Scott Parrish, Chief Operating Officer of Western Pipe Operations. “We look forward to continuing Garney’s tradition of excellence with this extremely important project, and we’re excited to exceed California American Water’s expectations, and to perpetuate Garney’s reputation, goals, and philosophies.”

Bill E. Williams, Director of Northern California Operations, and Kevin Downs, Operations Manager, are spearheading Garney’s involvement on the project. Matt Roberts, who served as the Lead Estimator in the pursuit phase, will also contribute to Garney’s value engineering efforts on the project.

For more information on the project, visit the Monterey Peninsula Water Supply Project website.

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JANUARY 2016 — Treatment facility operations are ramping up in South Texas with the addition of Garney’s Houston office. Under the direction of Vice President, Mike Gardner, leadership and staff have been added to Garney’s regional office located near Houston Hobby International Airport. Garney’s Houston branch opened in 2015, alongside new offices near San Francisco, Seattle and Washington DC.

Garney’s recent success in the South Texas market has resulted in water supply and wastewater treatment plant construction opportunities with the Lower Colorado River Authority, San Antonio Water System, and the City of Castroville.

“As Garney continues to grow, opening a Houston office and putting boots on the ground to expand our water and wastewater treatment plant capabilities in the South Texas market made great sense,” said Mike Gardner, Vice President. “For years, Garney has maintained a significant water pipeline construction presence in the area, so adding treatment plant capabilities will broaden our Texas footprint as a top water/wastewater contractor.”

James Schmerber and Michael Froelich, Project Managers, and Warren Henderson and Raul Arvizu, Superintendents, are managing Garney’s efforts in the Houston area. Cody Schmidt, Field Engineer, and Michelle Presko, Project Coordinator, will also be instrumental in developing Garney’s Houston operations.

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JANUARY 2016 — The start of a new year inevitably evokes a time of reflection and the opportunity to ignite change. In 2016, that reflection for Garney will be marked by celebrating 55 years in business. Since 1961, the company has thrived on our goals and philosophies of integrity, excellence, and fairness with our customers. These goals and philosophies have always been a mainstay of our organization, leading Garney to more than a decade of dominance in the rankings as one the nation’s leading water contractors.

As we enter 2016, Mike Heitmann, President & CEO, has developed Garney’s annual objectives in parallel with the foundation that Charles Garney brought to the company 55 years ago. Garney’s 2016 company objectives will leverage focus in three aspects:

SAFETY

Garney will maintain a steadfast focus on safety. It is incumbent upon each employee-owner to live our safety culture and take ownership in performing every activity. Safety is truly number one with Garney and safety will never be sacrificed for productivity.

STRENGTHEN THE TEAM

The company’s consistent growth will continue to drive mentorship and employee development to equip our employee-owners for new opportunities and a strong market.

NEW INITIATIVES

With several new initiatives underway, including new business ventures of Garney Federal and Garney Pacific, Garney will enhance strategic planning and implementation to generate success in these arenas.

Although Garney has experienced a rapid start to 2016, the company is not without vision and inspiration built on timeless goals and philosophies.

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