USFilter offers $600 million in savings to New Orleans as water contract proposal

Sept. 23, 2002
USFilter Operating Services Inc. on Monday presented the Sewerage & Water Board of New Orleans (S&WB) with a proposal that will save New Orleans residents more than $600 million and create 350 new jobs through a public-private partnership to operate and manage the city's water and sewer systems.

Sept. 23, 2002 -- USFilter Operating Services Inc. on Monday presented the Sewerage & Water Board of New Orleans (S&WB) with a proposal that will save New Orleans residents more than $600 million and create 350 new jobs through a public-private partnership to operate and manage the city's water and sewer systems.

"USFilter has presented New Orleans with the best offer that any water company has ever made to a city. Our solution will save New Orleans residents and families in excess of $600 million that can be used to fix the city's water system and avoid massive rate increases for ratepayers. We also pledge to dramatically improve customer service by introducing new technologies to answer customers' questions with one phone call, not four or five," said Ron Davis, executive vice president and general manager of USFilter Operating Services.

Davis said that New Orleans' water and sewer systems are in a state of crisis due to poor management and inefficiency.

"For every two gallons of water produced, one never makes it to the consumer," said Davis. "On any given day, one in five employees don't show up for work. Years of decay have forced the federal government to order the S&WB to spend over $550 million just to get New Orleans' water and sewer systems to acceptable standards. If the city does nothing, the average New Orleans' resident will see their wastewater/water bill of $67/month jump to $115/month in the next four years. We think New Orleanians will find these simple facts unacceptable."

"New Orleans ratepayers are already paying top dollar for their water services," said Andrew Seidel, USFilter's president and CEO. "The problem is that they are receiving bottom-dollar service. There is a better way as we've demonstrated repeatedly. We are committing the world's largest environmental services company to making New Orleans a showcase for the world."

USFilter partners with 600 communities in the United States and Canada on water and wastewater projects. The company boasts an approximate 95 percent contract renewal rate.

Davis adds that the S&WB employees have not benefited from the best practices and new technologies that are available in the water industry recently. "It's not that the S&WB employees can't do their jobs. They simply haven't been given the tools, leadership or the training. Approximately 95 percent of USFilter's municipal services employees were once employees of a city or town. We have seen first-hand how proper resources and training can empower employees and dramatically improve customer service and performance," he said.

United States Filter Corporation, a Vivendi Environnement company, is North America's largest water company providing comprehensive water and wastewater systems and services to commercial, industrial, municipal and residential customers. Vivendi Environnement (Euronext Paris: VIE and NYSE:VE), comprised of Vivendi Water (worldwide water products and services), Onyx (solid waste and industrial services), Dalkia (energy management), Connex (transportation and logistics) and FCC (Spanish company engaged in environmental and construction related industries), is the largest environmental services company in the world with more than 295,000 employees, including FCC, in about 100 countries and annual revenues of more than $25.6 billion. Visit the company's web sites at www.usfilter.com or www.vivendienvironnement-finance.com.

Source: USFilter

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