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contract for water or wastewater services.2s (See Attachment #1) Of that number, Reed-Stowe conducted 18 phone interviews? The majority of the municipal utilities interviewed had contracts with a private company or a river authority to operate and manage their wastewater treatment facilities, and one community interviewed had sold its wastewater service to a private company? (See Attachment #2) One recent example of privatization is found in the City of E1 Paso. In May 2002, the City of E1 Paso signed a five-year contract with United Water, a New Jersey-based company, which is a wholly owned subsidiary of the French company, Suez, formerly Suez Lyonnaise des Eaux. Under the $45 million dollar contract, United Water will manage and operate the city's water and wastewater treatment systems, including water treatment, water distribution, wastewater collection, water testing, billing and metering? United Water's proposal specified a savings to the City of $4 million dollars year. Another example is the City of Houston. The City formed the Houston Area Water Corporation, a not-for -profit local government corporation, to not only determine which private company would design, build, operate and manage (DBOM) a new water treatment plant on Lake Houston. The local government corporation will also oversee the contract. Montgomery-Watson was chosen for the contract. It will operate the plant for ten years with a five -year renewal option. Members of the Houston Area Water Corporation (HAWK) determined that a public- private partnership for the development and management of the treatment facility would save approximately $40 million over the life of contract. The HAWK also concluded that there were additional advantages to the partnership, including allowing for more flexible procurement processes, the absence of a large debt on the city books, and being able to rely on a company that has technological and management experience.32 In the mid- 1990s the City of Freeport in Brazoria County contracted with US Filter Operating Services, Inc. to upgrade, maintain and manage its water and sewer systems. This contract is similar to the Atlanta contract with United Water Services of Atlanta. US Filter estimates that it is saving the City of Freeport $120,000 annually.~ The City of Freeport could not confirm that these savings have actually occurred.~4 Moreover, in Reed-Stowe's interview with the City of Freeport, the City indicated that it was not pleased with the customer services being provided.3~ In addition to its contract with the City of Freeport, US Filter has a similar public-private partnership initiative with the City of Angleton, which is also in Brazoria County. US Filter has also proposed an arrangement with the