HOUSTON, Jan. 8, 2002 — In one of the country's most unique public-private partnerships to date, the Borough of Naugatuck, Conn., and USFilter Operating Services have entered into a 20-year wastewater partnership, valued at $155 million, that will enable the community to continue providing wastewater services at no cost to ratepayers - despite the costs of constructing new facilities and improving existing ones - for at least five more years.
Expected to generate $21 million in savings while meeting a consent decree, the partnership includes the:
• operation, maintenance, management and capital upgrades for the Borough's 10.3 million-gallon-per-day wastewater treatment facility for 20 years;
• operation, maintenance and repair of the wastewater collection system for 20 years;
• lease and operation of the Borough's existing merchant multi-hearth sludge incineration facility for two years while USFilter designs and constructs a replacement 72 dry-ton-per day fluidized sludge incinerator to process biosolids; and,
• the operation of the new incineration facility for 18 years and the oversight of a marketing program for the sale of its excess capacity to businesses and surrounding communities. The potential revenue generated from this marketing program affords the Borough an opportunity to continuing receiving zero-cost wastewater services for the life of the contract - beyond the five-year guarantee.
"The benefits from this public-private partnership create the best possible option for our community as well as the surrounding communities," said Borough of Naugatuck Mayor Joan B. Taf. "By proposing the construction of a new, expanded incinerator, USFilter provided a viable avenue for us to implement needed capital and environmental improvements to our wastewater treatment system. This expanded facility will enable us to continue to sell excess capacity to treat wastewater and sludge to other towns and businesses allowing the potential perpetuation of no-cost waste treatment services for our business and residents for 20 years. In addition, USFilter is helping us keep our operating costs low while guaranteeing odor control and assuming all regulatory and environmental compliance."
Executive Vice President and General Manager for USFilter Operating Services, Ron Davis says this is one of the most unique partnerships USFilter has ever seen. "We will continue providing wastewater delivery services at no cost to the Borough for at least five more years while at the same time expanding its incineration capacity to provide future environmental and economic benefits. Working together, we can maximize shared revenues and bring additional benefits to the Borough of Naugatuck for the next 20 years. Equally important, we are committed to being a good neighbor. We will operate a plant that not only meets or exceeds all regulatory requirements, but also controls odor and noise," added Davis.
The project includes the installation of more than $4.8 million worth of USFilter equipment, including a new incinerator by USFilter's Zimpro Products. In addition, USFilter plans to implement computerized process control and maintenance management systems that allow plant personnel to proactively manage the performance of the facility.
"Our maintenance management system initially prioritizes critical equipment repairs necessary to maintain current industry standards. Then it will emphasize predictive and preventive maintenance procedures needed to extend the life and reliability of all facility components," added Davis.
USFilter, 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 (NYSE:VE), comprised of Vivendi Water (worldwide water products and services), Onyx (solid waste and industrial services), Dalkia (energy management), and Connex (transportation and logistics), is the largest environmental services company in the world with more than 215,000 employees in 100 countries and annual revenues of nearly $25 billion. Visit the company's web sites at www.usfilter.com or www.vivendienvironnement-finance.com.
