Pittsburgh, PA - The Pittsburgh Water and Sewer Authority (“PWSA”) and Veolia Water North America – Northeast, LLC (“Veolia”) jointly announce that they have agreed to a mutual resolution of the disputes between them relating to Veolia’s management services that were provided to the Authority between 2012 and 2015. The resolution, reached under the auspices of a mediator, resolves all claims between the parties and follows more than a year of investigation and discovery by both parties as part of an arbitration proceeding commenced in October 2016.
The negotiated compromise includes the withdrawal of all claims by each party, which avoids further legal costs and expenses. Neither Veolia nor the PWSA admits or concedes any allegations or claims made by the other party. The parties’ resolution was aided by indications that increased lead levels reflected in testing since 2015 are attributable to a range of factors including aging lead service lines in the system and plumbing in the buildings connected to the system and factors such as sampling cohorts, rather than any particular actions taken by either the PWSA or Veolia.
As part of the resolution, Veolia will be contributing $500,000 to a Pittsburgh-based community organization, continuing Veolia’s longstanding tradition of giving back to organizations benefitting the public in communities they serve. PWSA also saves $5 million, the amount sought by Veolia’s claim.
The PWSA believes this outcome is in the best interests of the PWSA and its customers. The resolution allows the PWSA to redirect funds to needed projects including its plans for both public and private lead line replacement and focus on the future goals and initiatives the Authority is pursuing.