Memorandum

Members of the International Private Water Association, and the Water Industry Council

Phil Dyk and Larry Chertoff

Trade Association Alliance

Monday, February 14, 2000

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The International Private Water Association and the Water Industry Council intends to form a new organization — an alliance representing the interests of the private water industry and its allied service firms in the U.S. and abroad. This new trade association will maintain the current identities of IPWA and WIC as divisions of the new alliance organization through a transition period of up to one year. The alliance organization will be incorporated as a 501(c)6 not-for-profit a new name, to be determined, which would reflect the broader scope of its activities.

The new alliance organization will initially provide members with the following services:

• Industry programs to promote the private sector water/wastewater industry through direct intervention in regulatory issues, de-commoditizing water services, improving the procurement process and other similar issue-oriented projects. Initial projects will be:
• Review, commentary and direct intervention to effect policy at all levels of government, in the U.S. and abroad.
• Develop standards of practice for industry and municipalities in the procurement of private services for municipal clients.

Provide industry conferences and seminars, in theU.S. and abroad, to:

• explain and assist in implementing new regulatory guidelines and rules,
• present new technologies and new financing techniques and
• present new projects that would involve the private sector,
• explore employee transition issue, and
• other topics as they present themselves.

Topic-focused conferences and seminars will, initially, include all currently proposed IPWA and WIC seminars, with shared participation and staffing for each as is appropriate to the conference/seminar audience. The new organization plans to hold one large annual conference to encourage interaction of all members.

Develop a media campaign to dispel incorrect public perceptions of our industry and to reinforce positive attitudes.

Unify and enhance the web sites to serve its established viewer base by educating the pubic and its decision-makers about our industry, its practices and its benefits to the public. It will also provide breaking industry news and commercial services for the industry.

To effect this unification IPWA and WIC will blend their respective membership tiers and fee structure to have:

Full Member (title to be determined):

$12,000 per year, payable in two installments

Full Member with defined in-kind services/hours of service (title to be determined):

$ 8,000 per year, payable in two installments

Non-voting Corporate Member (title to be determined):

$ 2,000 per year, payable in full

Individual membership for non-corporate or sole-proprietorship (title: member):

$ 500 per year, payable in full.

Programs and projects of specific interest to some members may be initiated by either division of the alliance and funded through voluntary surcharges to participants.

The new organization will meet quarterly with international teleconference capability for all members. Full members will have voting rights. Committee meetings, in person or teleconference, will be held as needed.

An executive committee composed of the current executive directors and chairperson/president of IPWA and WIC will preside until officers can be elected and a single executive director appointed. We expect this to be accomplished within one year of incorporation.

Membership outreach, record/bookkeeping and other administrative tasks will be unified and performed by in-house or outsourced staff as determined by the directors. Seminar and conference responsibility, etc. will be given to in-house staff or outsourced. The two web sites will be blended into one and expanded in usability and services to members and the public.