RICHMOND, Calif., May 23, 2002 -- The City of Richmond, Calif., awarded USFilter Operating Services, Inc., a $60 million contract for the operation and maintenance of its 8.5-MGD (million gallons per day) wastewater treatment facility.
The contract calls for USFilter to oversee the design and construction of more than $7 million in capital improvements to bring the system up to optimum operating performance. The 20-year partnership is projected to save this city nestled on San Francisco Bay approximately $75 million dollars over the term of the contract.
"While Richmond's future is no doubt a bright one, it is equally clear that we face significant hurdles in improving our infrastructure while addressing fiscal challenges," said Isiah Turner, Richmond's City Manager. "A public-private partnership offered an alternative approach to address both of these key issues. USFilter's plan provides the best technical solution at the best price. It will bring our wastewater treatment facility, that serves more than 60,000 people, up to industry standards and keep it there for the next 20 years."
USFilter's proposal was determined by the Richmond City Council to not only offer the best technical approach, but also the most savings. "From any perspective, $75 million in savings is significant," stated Ron Davis, executive vice president and general manager, USFilter Operating Services. "The savings we're able to offer can help the city meet its financial challenges without raising taxes or cutting important city services."
USFilter will achieve these savings through economies of scale, core competency focus and innovative technology and work practices. In addition to savings, Davis stated that the partnership provides other benefits such as stabilized operations costs, better operating conditions and guaranteed environmental compliance and employment of facility personnel - all while leaving facility ownership and rate-setting authority in the hands of the city.
The capital improvements program will focus on upgrading, modernizing and automating existing systems at the plant. USFilter will install a new automated bar screen; rehabilitate the primary clarifiers, digesters and aerators using USFilter Envirex systems; mount computerized controls throughout the plant; and add a new, concrete chemical containment facility to enhance worker safety and environmental protection.
With 90 years of engineering and design experience, USFilter Engineering & Construction will provide oversight of all subcontractors as well as price estimation and coordination during construction and startup of the capital improvements program. Utilizing local experience and local resources, USFilter is partnering with Kaweah Construction Co., Boyle Engineering Corporation and minority- and women-owned businesses in the area.
Davis said that many of the challenges faced by the City of Richmond are similar to those that communities throughout the state and North America face. "Progressive communities like Richmond have been turning to public-private partnerships for years to effectively manage utility needs while keeping costs down. In fact, USFilter pioneered this concept in the nearby Bay Area community of Burlingame in 1972 when we entered into an agreement with that city to operate and maintain its wastewater treatment facility. We'll be celebrating 30 successful years in Burlingame this summer."
Including six in California, USFilter operates more than 260 municipal water and wastewater facilities in North America, serving more than 13.5 million people.
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 (Paris Bourse: 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.
