Poresky on Allentown's WaterWorld

Photo Stolen From Poresky's web site

When Dan Poresky retired from his business, "Dan's Camera City," he became more busy than ever. In addition to volunteering with Habitat for Humanity twice every week, he serves on Allentown's Environmental Advisory Council and is active with environmental issues at "One With the Earth."

He walks the walk.

Dan created a universal eco-symbol, which I've featured. You can see it's mostly blue, like the earth's water. At one time, Allentown Mayor Ed Pawlowski stood behind that symbol, along with the Lehigh Valley's two other mayors when they signed a climate control agreement in 2006.

But that was then. Since that time, Pawlowski has demonstrated his commitment to our environment with a kooky, trash-to-cash scheme being promoted by Marcel Groen, who just happens to be a major King Edwin campaign donor AND a Democratic power broker. King Edwin's turds, along with the garbage created by the NIZ construction, will supposedly be turned into energy and everybody will get stinkin' rich.

Literally.

Damn the shit torpedos! Full speed ahead!

Now, Hizzoner wants to unload the Queen City's water and sewer operations to avoid one of those nasty tax hikes. They stink, too. People don't like them, but they'll just love watching their water and sewer rates skyrocket.

Pawlowski's rubber stamp council, with the notable exception of Jeanette Eichenwald, will almost certainly go along. They're beholden to him, not you. Two of its members were not even elected by you, but were instead appointed. Soon, three of its seven members will be appointees, as Mike Schlossberg has run away from Council for a cozy backbencher job in Harrisburg.

Because Allentown is no longer a democracy, I don't think it matters a bit whether you attend tonight's meeting. The decision's been made, and whatever outfit is associated with Marcel Groen will get the deal. All the posturing will be little more than window dressing.

This time next year, the frackers will be pouring Allentown water into those damn mines in coal cracker country.  Upstream from us, by the way.

Alan Jennings, who has so often spoken so eloquently for the little guy, has already rolled over for the suits that budget his operations. Allentown's two columnists are too busy writing about pie baking contests and how great it is to speed in Texas. This is not on their radar. They're too busy thinking about their own pensions to be worried about Allentown's.

I may be cynical, but don't lose heart. People like Dan Poresky are living proof that one person can make a difference. Whether conservative or liberal, Democrat or Republican, we all need water to survive. He'll be there, and I'm sure he'll make that point. He also has plenty of questions. I'll let him speak for himself.

The decision to lease Allentown’s water and sewer operations for 50 years must not be rushed. The need for large sums of money to satisfy the fire and police pension liabilities is at least two years away. Turning over the city’s most valuable asset, its water, to a for-profit company comes with enormous environmental risks to our water as well as inevitable large rate increases.  None of this has been fully explored by the administration or Council.  

Council has neither the expertise nor the information necessary to properly make such a long-lasting and monumental decision. The voters deserve a say on a matter of this extreme importance. The question should be put to the voters in a referendum in next year’s election. 

Questions for Allentown City Council for September 27, 2012 council meeting to discuss

The mayor rejected the formation of an Allentown water authority as a vehicle for issuing bonds to get the up-front money to satisfy the pension obligation. His reason is that it would raise water rates 90% recover that money. Doesn’t the same hold true for any leasing company? They too, will have to recover the up-front money they give the city.

Has Council received the lease agreement for its review? Will the lease agreement be made public before council votes on whether to allow the administration to let it out to bidders?

Has the city done a study of the likely and possible consequences of a long-term lease of the water/sewer operations? Those who have opposed privatization have presented Council with horror stories of what has happened in other cities that are contracted with some of the same companies that the administration has accepted as qualified bidders. Who among council has personally researched these claims to determine their validity? 

Council has gone to the PA Economy League to do a peer review. What is the scope of the work requested? Does the scope include looking into the likely and possible long-term consequences of leasing? When is the report due?

Will council hold another public meeting to present the results of the work being done by the PA Economy League? 

The administration will be coming to council within weeks for permission to present the RFP to bidders. Might council vote on the request before council receives the report from the PA Economy League?  

The MMO (Minimum Municipal Obligation: money needed to satisfy the demands of the pension liability) does not become excessively large until 2014. Given the magnitude and far reaching consequences of privatizing, whyshouldn’t the question be put to the entire voting public as a ballot question? 

Would Council agree to hold off any vote that would allow the administration to move forward until the public was given the option to get this on the 2013 ballot? Would Council support a ballot referendum? 

It has been reported in the press that the company that leases our water/sewer systems will be able to raise rates to recover the $150-$200 million up-front money they will be giving the city. Is Council familiar with this regulation? 

If Council votes to give permission to the administration to give the lease agreement to the bidders, when in the process is the administration absolutely required to come to council for another vote? 

Once the administration has chosen a concessionaire and comes to terms on the contract, it will come to council for council to approve or reject the contract.   Will Council, at that time, have the authority to modify the contract? History has shown that once any permission is granted to the administration to proceed on a plan, it invariably goes through unstopped. How often has Council rejected a contract of this magnitude and complexity at this late stage in the process? Council should consider the first vote their only opportunity to impact the outcome in any meaningful way. 

The PA PUC (Public Utility Commission) hasn’t made a definitive statement as to how or whether it would regulate rate requests from water companies that would lease Allentown’s water/sewer system.  Council president Guridyand at least one other Council member said that Council could assume that responsibility. Requests for rate increases will be accompanied by exhaustive reports and claims justifying their request for a rate increase. Does Council have the time and expertise to be able to go through each and every claim and know which ones are legitimate? Which ones are covered by the contract? Which ones are exaggerated? 

At least one Council member and a city official have stated that one factor that will reduce the size of rate increases is that the company will spread their rate increases to other cities where they have control. If that is true, isn’t it just as likely that they will raise rates for Allentown users to cover increased costs in other cities?