Server: Netscape-Enterprise/2.01 Date: Thu, 18 Dec 1997 22:07:37 GMT Accept-ranges: bytes Last-modified: Thu, 18 Dec 1997 17:14:59 GMT Content-length: 10152 Content-type: text/html United Water: Municipal Info - Jersey City, NJ

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The state of New Jersey passed legislation in 1995 designed to facilitate partnership agreements with public utilities and private service providers. That's when New Jersey municipalities began looking toward the private sector as a realistic solution to their asset management needs. The city of Jersey City partnered with United Water in 1996, taking the fullest advantage of the new legislation.

Under the contract, United Water assumed responsibility for Jersey City's entire water infrastructure. This includes managing 5,700 acres of watershed land, an 80 million gallon per day (mgd) treatment plant, a 5 mgd distribution storage facility, 2 reservoirs totaling 11.3 billion gallons, 23 miles of aqueduct and a 275-mile distribution system. United Water also handles all maintenance and repairs, billing, collections and customer service. The company supplies Liberty Island as well as the city's 239,000 residents.


The five-year contract provided the city $11.6 million in savings during its first year. The contract is expected to save a total of $38.5 million over the course of the partnership. These savings are being achieved by a combination of innovative operations efficiencies, sales of additional wholesale water, and strategic capital investment.

The city is also realizing additional revenue through a $2.5 million up-front concession fee, as well as improved collections and operating efficiencies. United Water has established programs to reduce unaccounted-for water, enhance corrosion control efforts and fully computerize the city's distribution system. Additionally, United Water provided a new fleet of trucks, returning the existing fleet to the city for use in other departments. Meter reading has been subcontracted to the local power utility.


United Water assured the city that no jobs would be lost as a result of the partnership. Through an innovative arrangement, employees of United Water Jersey City are "leased" from the city. They remain employees of the municipal government and retain eligibility for municipal pensions and benefits.

United Water committed to retain all 140 Jersey City Water Department employees for the first year of the contract. That number was reduced through attrition, moving employees to other city slots, and job offers made by United Water. The salaries of the departed employees were allocated to a fund designed to provide early-retirement pension incentives to eligible employees. This further reduced the number of people employed without eliminating any occupied positions. By the end of the first year of the contract, positions had been smoothly reduced from 140 to 80.


United Water's commitment to Jersey City isn't just limited to the water quality and service. Through its community relations program and locally-based office, United Water has contributed its sponsorship to everything from local blood drives to helping city schools bring computer technology into their classrooms.

Jersey City Mayor Bret Schundler's assessment of the partnership is unequivocally positive: "This contract truly represents the best of both worlds." It preserves municipal ownership of the assets while leveraging the expertise of private industry.


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